Trade Pattern (Floriculture)

Export Pattern (Floriculture)

Global exports:

The global exports of floriculture products were 55,670 crores in the year 2004. Developed countries in Europe, America and Asia account for more than 90% of the total world exports in floriculture products. The Netherlands continues to dominate the world floricultural exports. It was estimated that in 2004 almost 51% (US$ 6.27 billion) of world floriculture exports came from the Netherlands. With an 8% annual growth rate, world exports are expected to reach US$ 16-18 billion by 2010.

India ranked 23rd amongst world exporters of floriculture products in 2004 and its share in world exports are negligible at around 0.38% (US$ 47 million).

Source: Eximbank

Production pattern of Indian floriculture industry:

The total area under floriculture cultivation was estimated to be more than one lakh ha. Maharashtra, Karnataka, Andhra Pradesh and Haryana have emerged as major floriculture centres. Tamil Nadu is estimated to have the highest area under floriculture production followed by Karnataka, West Bengal, Andhra Pradesh and Maharashtra.

India’s export:

India’s exports of floriculture products rose from 127.43 crores in 2001-02 to 212.70 crores in 2004-05. India is thus a negligible player in the world exports.

During 2004-05, exports of floriculture products from India decreased and were estimated to be valued at 212.70 crores when compared to 250.45 crores in 2003-04. In 2004-05, exports of cut flowers and foliage were valued at 187.29 crores, while bulbs and other live plants exports stood at 25.41 crores. Over 95% of Indian cut flower exports comprise different varieties of roses.

Category wise India’s exports of floricultural products during the period 2001-02 to 2004-05
                                                                                                                         (Rs. crore)

The following line chart shows the category wise India’s exports of floricultural products during the period 2001-02 to 2004-05.

The following pie diagram shows the country-wise exports of floriculture products from India during 2004-05.

Source: Eximbank

Export opportunities for India

The market for cut flowers consists of a range of product groups, which offer varying opportunities for countries like India, as potential suppliers. It is a highly competitive market in which importers are continually seeking new, special and different products. They tend not to change easily from one rose supplier to another but co-operation with a company supplying a new product is considered attractive. The market is clearly searching for novelty products. A new product also offers the prospect of making higher profits than those gained from selling conventional floricultural products.

Demand for foliage varieties is still increasing in Europe, particularly for small leafed foliage for use in bouquets. Furthermore, European importers do not have any hesitation about using tropical foliage. The opportunities are optimal for tropical countries like India in supplying products during periods when these products are scarce in the western markets.

In order to compete, Indian exporters must be able to supply products of consistent quality and on a regular basis. With a strong preference for direct marketing and private R & D for developing proprietary products, the industry will have to develop an unique selling proposition to increase the competitiveness. Joint initiatives may be taken for creation of appropriate infrastructure for production, post harvest handling and transportation of floriculture products. The marketing and distribution channels are also to be strengthened. With all such initiatives, it may be deduced that the structure and composition of the Indian floriculture industry may undergo major changes in the future.

http://www.eximbankindia.com/flori.pdf

Last updated: 10-1-2008