
| Keywords: | India; Flowers/Ornamentals; Policies/Programmes; Public institute; Trade. |
| Correct citation: | Pandey, B. and Chaturvedi, S. (1994), "Floriculture Industry in India Gets Ready for Export." Biotechnology and Development Monitor, No. 20, p. 8-9. |
India's floriculture industry is still in its infancy. The rapid changes that have taken place since the late 1980s, however, suggest that India will be able to improve its position on the world market in the next decade. Beside domestic research on the development of new flower varieties, a broad package of governmental policies is contributing to this progress.
The current market for floriculture products in India is estimated at
about US$ 80 million, of which US$ 32 million is contributed by modern
cutflowers. A survey conducted by the public Agricultural and Processed
Food Products Export Development Authority (APEDA) in 1989, based on
data from the Indian universities and the Departments of Agriculture of
both central and state governments, indicated that there were about 34,000
hectares of land under flower cultivation (modern and traditional varieties),
about half of it concentrated in the three southern states Tamil Nadu,
Karnataka, and Andhra Pradesh.
The domestic marketing of floriculture products is mainly controlled
by commission agents. The mainly smallscale growers depend on these
agents to sell their products, and suffer from delayed payments, price
fluctuations and high commission charges. Export, on the other hand, is
supported by the Indian government though different ministries and public
sector organizations. The Ministry of Agriculture is responsible for the
development of the floriculture industry, while trade is organized by the
Ministry of Commerce.
The results of these efforts are reflected in the rapid growth of exports
over the past 5 years. Exports of floriculture products increased more
than 8 times, from less than US$ 0.6 million in 198788 to nearly US$
4.8 million in 199293.
Research efforts in India
Notwithstanding the unorganized nature of the sector, there have been
coordinated efforts to develop a modern floriculture industry by various
agencies of the Indian government over the past decade. These agencies
support the upgrading of the technological base of the sector, and the
expansion of marketing facilities. More recently, efforts have been made
by the private corporate sector to contribute to the development of the
horticulture sector.
Systematic research on flower crops has been carried out since the
early 1960s. In 1972, the All India Coordinated Floriculture Improvement
Project of the Indian Council for Agricultural Research (ICAR)
was implemented. Currently ICAR, along with the National Botanical Research
Institute (NBRI), has taken up this project mainly to improve particularly
those ornamentals that have a potential for export. The results include
the development of Mohini, a new chocolate brown rose variety and
new varieties of gladiolus and chrysanthemum. ICAR is implementing a research
project on protected cultivation in greenhouses of cut flowers mainly for
export. The NBRI has developed varieties of gladioli suitable for cultivation
in the plains of Northern India fed by the waters of the river Ganges.
At present, most of the research on flower improvement is carried out
in the agricultural universities and many publicfunded agricultural
research institutes. Beside ICAR, these include the Indian Institute
of Horticultural Research (IIHR), NBRI, the Tropical Botanic Garden
and Research Institute (TBGRI), the Punjab Agricultural University
(PAU), and the Tamil Nadu Agricultural University (TNAU). These
institutes have devised some standardization in technology regarding presowing
treatment and land preparation, planting methods, antiinfestation
and antidisease measures, harvesting and cutting flowers at proper
time periods, postharvest care, packaging and transportation.
IIHR has contributed to the development of geneticallyengineered
varieties of several commercially important ornamental crops, such as rose,
gladiolus, tuberose and bougainvillaea, which are already on the market.
In particular, the Institute has made available its rich collection of
rose germplasms of nearly 600 accessions to the institutes active in breeding.
TBGRI is working on the development of hybrid varieties of orchids.
The first batch of their hybrids would be ready for commercialization at
the end of 1995. It is the private sector, however, which has taken the
lead in developing hybrid varieties. In fact, India's awareness of the
potential of flower export came into effect only when the IndoAmerican
Hybrid Seeds (IAHS) pioneered the production of F1 hybrid seeds for
flowers and vegetables in the 1960s.
The development of tissue culture facilities in India was also prompted
by private sector participation. In 1984, A.V. Thomas Co. established
its first tissue culture laboratory, setting the stage for rapid increases
in domestic capacity. At present, India has an installed production capacity
of around 120 million plants per year, most of which is geared to exports.
Foreign collaboration
The growing interest of the private sector in the floriculture industry
has resulted in a spate of joint ventures for setting up production facilities
in India, mainly with Europebased companies. Through these joint ventures,
the European firms transfer their production from Europe to India, while
many local partners, for example IndoHolland Agro Products,
have access to technological assistance for standardizing their production
technologies. In other cases, however, Indian companies merely work as
production units with full technical assistance from their foreign partner
and a 100 per cent buyback arrangement. An overwhelming number of
joint ventures are being set up in collaboration with Dutch companies:
in 1993, 7 out of the total 9 new joint ventures included a Dutch partner.
Recent initiatives
In response to the encouraging signs on the export front in the past
few years, the Ministry of Commerce has identified the potentials of floriculture
as an "extreme focus segment". It expects India's floriculture to be competitive
in the international market with a variety of products, and to become a
major source of foreign exchange earnings.
The Ministry of Commerce's decision followed the recommendations made
by an expert group set up by the government in 1989 to suggest policy measures
for the development of the floriculture industry in India. This group identified
various flowers, plants and bulbs suitable for export production in the
long term as well as in the short term. It was also suggested to classify
Intensive Floriculture Areas (IFAs) in the country along with the
specific groups of flowers to be promoted in each area. In 1992, the group
identified a whole set of related measures to be taken:
| Thailand's orchid tissue culture
Thailand is Southeast Asia's leading orchid producer, and contributes
85 per cent of the world orchids exports. Its export markets are the USA,
Japan, and Europe. Especially on the latter two markets, Thailand does
not experience much competition.
Source: Paul Handley (1992), "In the pink: Thailand's orchid exports blossom". Far Eastern Economic Review, 27 February 1992, p.5859. Paul Handley (1992), "Copied to perfection: cloning accelerates breeding process". Far Eastern Economic Review, 27 February 1992, p.59. |
Prospects and limitations
India considers the chances of new entrants quite encouraging. With
the export of horticulture products, it is believed that India can earn
25 to 30 times more foreign exchange than with the export of any other
agricultural product.
India has many advantages over other largescale flower producing
countries in the world. The varied agroclimatic zones combined with
the skilled manpower could give the country a distinct edge over its competitors.
Even during winter, most parts of India receive ample sunlight due to which
no artificial lighting of green houses would be necessary, while plants
obtained from anywhere in the world could easily be maintained, propagated
and transplanted.
A problem to be solved is India's lack of adequate knowledge on harvesting,
on postharvest handling of flowers, and on packing according to international
standards. In India, there hardly exists means of refrigerated transport
or basic infrastructure such as cold storage facilities at airports and
seaports. Besides, airfreight out of India to Europe is about 15 per cent
higher than from other Asian countries such as Thailand, Sri Lanka and
Pakistan. A 10 per cent EU import tax on Indian flowers decreases competitiveness
in comparison to, for example, flowers from Israel, Kenya and Colombia.
Till recently the major problem faced by the private Indian floriculture
industry was the nonavailability of germplasm of established highquality
flower varieties. Due to the increasing number of joint ventures with foreign
companies that is taking place, this problem may well be past. Also the
introduction of the New Seed Policy of 1988 including increased import
possibilities of new seeds and plants, and a modified quarantine procedure
can be expected to improve India's access to high quality germplas.
Beena Pandey/Sachin Chaturvedi (RIS)
Sources
J. Prakash and K.R. Bhandary (eds.) (1994), Floriculture: Technology,
trades and trends. New Delhi: Oxford and IBH.
Expert Group on Floriculture Development in India (1989), A Report. New Delhi: Government of India, Ministry of Agriculture.
Indian Trade Promotion Organization, Study on Floriculture Industry of India. New Delhi: ITPO.
K.L. Chada (1994), Delayed Recognition of Potential: Horticulture. Survey of Indian Agriculture, The Hindu, pp. 111118.
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