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Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

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Page 1: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s
Page 2: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s assumed commercial significance during 90’s owing to the favourable environment created by a series of reforms in economy and seed sector. This has paved the way for the import of new plant material, introduction of protected cultivation technology in the country. The area under flower crops got almost tripled from 106000 ha during 2001-02 to 339000 ha during 2018-19. Similar trend was also noticed in production of flowers in India (Table1). This phenomenal growth would not have been possible without the proactive policies implemented from time to time. Central sector schemes implemented by the National Mission for Integrated Development of Horticulture, Micro Irrigation, National Horticultural Board, Agriculture and Processed Food Export Development Authority played a pivotal role in achieving the growth.

Table1. Area and Production of flowers during the last two decades

Year Area (ha) Production (MT)

2001-02 106000 535000

2002-03 70000 735000

2003-04 101000 580000

2004-05 118000 659000

2005-06 129000 654000

2006-07 144000 880000

2007-08 166000 868000

2008-09 167000 987000

2009-10 183000 1021000

2010-11 191000 1031000

2011-12 254000 1652000

2012-13 233000 1729000

2013-14 255000 2297000

2014-15 248000 1658000

2015-16 278000 1526000

2016-17 306000 1699000

2017-18 342000 1760000

2018-19* 339386 1991381 *advanced estimates India's total export of floricultural produce was Rs. 571.38 Crores/81.94 USD Millions in 2018-19. The

major importing countries were United States, Netherlands, United Kingdom, Germany, and United

Arab Emirates.

2. Initiatives Specific to Floriculture The growth of floriculture in the country was possible due to the policy initiatives from the Central and State Governments through Central Sector and State schemes. The schemes and programmes

Page 3: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

were mostly aimed at horticulture in general that include support for floriculture crops as well. However, some of the states have formulated floriculture specific programmes / initiatives / schemes. For instance Karnataka (13 programmes), Tamil Nadu (1 programme), Maharashtra (3 programmes), Odisha (4 programmes), Jharkhand (12 programmes), Sikkim (3), Haryana (1 programmes), Himachal Pradesh (4 programmes), West Bengal (7 programmes), Tripura (2 programmes), Mizoram (2 programmes) and Goa (2 programmes) have specific programmes for floriculture as detailed under. It is envisaged that the states continue to support the sector by

continuing the measures. (The details of programmes and initiative in floriculture by various states are summarized in Annexure I.) 3. Impact Due to COVID 19

Floriculture sector is also badly affected as any other sector in view of CIVID 19 pandemic. With religious places closed, weddings postponed, major events in public sector and private sector differed, no major social and religious functions lined up farmers are facing hardship to market their produce. Flower consumption has come to a standstill as flowers are at the fag end of the list of essentials even for the consumers. Many of farmers are discarding the flowers in view of the unprecedented situation. The phenomenon is not unique to India as reports suggest that even in global auction houses located in the Netherlands have resorted to such desperate measures (https://www.facebook.com/hashtag/buyflowersnottoiletpaper?source=feed_text&epa=HASHTAG&tn=*NK-R). With the onset of summer, one major advantage at this point of time in India is that the major production season is over except for off season production and some perennial flowers in hills and certain plains. 4. Impact and Way Forward 4.1 Traditional Flower Sector The main stay of Indian floriculture is growing of traditional flowers in open field conditions. The area under sector is expanding at a rate of 7% while the trade in the sector is growing at a steady pace of 10% per annum. Impact In view of the transport restrictions, cancellation of railways, cancellation of domestic flights the movement of flowers has greatly impacted. The supply chain is completely disrupted. The major consumption avenues are affected.

Consumption Avenues Status

Religious places Closed

Marriages Cancelled

Social gatherings Differed

Official functions Cancelled

Wholesale markets Closed

Local Markets and vendors Closed

Page 4: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

In order to understand the impact, comparative analysis of arrivals and price realization for different loose flowers in important flower markets was done for the period January-April 2019 and 2020 (Table 2-5). Table 2. January-Loose Flowers (Price Rs/Quintal ; Arrival in MT)

Crop

Jan 2020

Avg.

Wholesale

Price

Jan 2019

Avg.

Wholesale

Price

Jan2020

Avg.Retail

Price

Jan 2019

Avg.Retail

Price

Jan 2020

Total

Arrival

Jan 2019

Total

Arrival

Change

in Ave

Whole

Sale

Price

Change

in Ave

Retail

Price

Change

in

Arrival

Jasmine 81166.5 63649 92400 74118.5 300 156 17517.5 18281.5 144

Marigold 3257.625 2970.75 5740.25 5207.625 140664 6604 286.875 532.625 134060

Rose

Loose

7402.8 6365 11785.8 11297 98162 247324 1037.8 488.8 -

149162

Tuberose

Single

1231.25 588 1942.75 871.25 163500 104780 643.25 1071.5 58720

Table 3. February - Loose Flowers (Price Rs/Quintal ; Arrival in MT)

Crop February

2020 Avg.

Wholesale

Price

February

2019 Avg.

Wholesale

Price

February

2020

Avg.Retail

Price

February

2019

Avg.Retail

Price

February

2020

Total

Arrival

February

2019

Total

Arrival

Change

in Ave

Whole

Sale

Price

Change

in Ave

Retail

Price

Change

in

Arrival

Jasmine 33271.67 33034 40716 44818.67 286 394 237.6667 -4102.67 -108

Marigold 2656.778 2747.444 4489.222 4967.444 42292 6272 -90.6667 -478.222 36020

Rose

Loose

7100.714 6897.571 10749.29 10559.43 2282 90950 203.1429 189.8571 -88668

Tuberose

Single

1907.667 473 3039 720.6667 139000 143500 1434.667 2318.333 -4500

Table 4. March- Loose Flowers (Price Rs/Quintal ; Arrival in MT)

Crop March

2020 Avg.

Wholesale

Price

March

2019 Avg.

Wholesale

Price

March

2020

Avg.Retail

Price

March

2019

Avg.Retail

Price

March

2020

Total

Arrival

March

2019

Total

Arrival

Change

in Ave

Whole

Sale

Price

Change

in Ave

Retail

Price

Change

in

Arrival

Jasmine 12640.75 17309 16447 22984.75 566 866 -4668.25 -6537.75 -300

Page 5: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Marigold 2572.667 2976 4283.667 4800.889 50596 5046 -403.333 -517.222 45550

Orchids 1540.857 1415.429 2018.143 2155 1431702 2151858 125.4286 -136.857 -

720156

Rose

Loose

6945.333 6791 10907.83 11746 31650 44544 154.3333 -838.167 -12894

Tuberose

Single

1673.667 556.3333 2716 803.6667 159800 152000 1117.333 1912.333 7800

Table 5. April –Loose Flowers (Price Rs/Quintal ; Arrival in MT)

Crop April

2020 Avg.

Wholesale

Price

April 2019

Avg.

Wholesale

Price

April 2020

Avg.Retail

Price

April

2019

Avg.Retail

Price

April

2020

Total

Arrival

April

2019

Total

Arrival

Change in

Ave

Whole

Sale Price

Change

in Ave

Retail

Price

Change

in

Arrival

Jasmine 0 23329.5 0 30338.5 0 932 -23329.5 -

30338.5

-932

Marigold 0 3479.429 0 5809.857 0 7116 -3479.43 -

5809.86

-7116

Rose

Loose

0 7283 0 10944.2 0 68914 -7283 -

10944.2

-68914

Tuberose

Single

0 863.5 0 1351.5 0 135500 -863.5 -1351.5 -

135500

The data pertains to only few important flowers documented by NHB. Some of the flower crops which also contribute to the overall trade like chrysanthemum, China Aster, Crossandra, Gailardia, Neerium etc are not documented by the NHB database. The arrivals and price realization was healthy till March 2020 in all the loose flowers. However the arrivals were zero during the month of April (10th April 2020). In the corresponding month during 2019 the arrivals (Table 6) were substantial in jasmine (932 MT); marigold (7116 MT); Rose (68914 MT): Tuberose single (135500 MT) and tuberose double (98708 MT). The change in arrivals recorded negative trends in all the flowers. Considering the same trend of the previous year the losses translate to, Table6. Estimated Losses during April Month in Loose Flowers

Crop April 2019

Avg.

Wholesale

Price

Rs/qtl

April 2019

Avg.Retail

Price

Rs/qtl

April 2019

Total

Arrival

MT

Loss in

terms of

Wholesale

price for

April

(Rs)

Loss in terms

of Retail Price

for April

(Rs)

Losses in

terms of

Wholesale

price for 10

days (Rs)

Losses in

terms of

Retail price

for 10 days

(Rs)

Jasmine 23329.5 30338.5 932 217426280 282750160 72475426 94250053

Marigold 3479.43 5809.86 7116 247565640 413368440 82521880 137789480

Page 6: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Rose

Loose

7283 10944.2 68914 5019006620 7541948160 1673002206 2513982720

Tuberose

Single

863.5 1351.5 135500 1169365000 1830605000 194894166 610201666

Total 2022893678 3356223919

Considering similar arrivals and price realization during April 2020, conservative estimates indicate that loose flower sector witnessed losses to a tune of Rs. 202.89 cr on wholesale price basis and Rs.335.62 cr on retail price basis during the lockdown period. Desperate measures adopted by the famers

• Many farmers have left the crop in the field (marigold, chrysanthemum, rose, China Aster) as there are no labour, transport and demand

• Some of the farmers have discarded the flowers as there is no transport and demand.

• Some of the farmers growing perennial flowers (rose, chrysanthemum, and tuberose) have uprooted to diversify in to vegetables which have demand.

Farmers discarding the chrysanthemum flowers and leaving the marigold flowers in the field

Page 7: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Way Forward Considering that the same trends to continue for the extended period of lockdown the sector requires the following support. A number of direct and indirect initiatives are in place. However, in order to provide further fillip to the sector, the following measures are suggested.

1. Flowers should also be considered as essential service along with other perishables. 2. Taking forward the resolve on “Per Drop More Crop” of Government of India, all the flower

cultivation be brought under the micro irrigation for enhancing the factor productivity. Special provision to support the floriculture farmers for large scale implementation of micro irrigation through MIDH, RKVY and State Missions is needed.

3. Dwindling labour force in the rural areas has thrown up major challenges on drudgery intensive floriculture operations like weeding. Special provision to support the floriculture farmers for large scale implementation of mulching of the cultivated area to minimize the number of weeding and also improve water and fertilizer use efficiency.

4. Promote small scale industry sector to develop and market tools and gadgets specific for floricultural crops to reduce the drudgery.

5. The floriculture markets are reduced to roadside markets under most unhygienic conditions across the rural and urban landscapes. It’s a paradox that the shoes that we use to walks on the unhygienic places are sold in air-conditioned stores and flowers which are highly perishable and used for worship and for religious offerings are sold in such polluted places. In order to address this, suitable mechanism needs to be evolved to support the vendors through solar powered air cooled push carts on the lines of Cool Cart developed at IARI, New Delhi and IIHR, Bengaluru Such an intervention shall help the vendor to extend the shelf life of the flowers and increase the window for marketing.

6. Packaging of loose flowers is still primitive. Old gunny cloth, used gunny bags, bamboo and palm baskets are often used. Support for plastic crates exclusively for flowers need to be introduced to encourage the farmers to adapt to crates which maintain the integrity and freshness of the flowers. Foldable crates developed by ICAR-DFR would be of immense help in this direction.

7. Transport of loose flowers is orthodox by all means. Support need to be extended to custom made reefer tempos and mini vans to create a rural cool chain. Self Held Groups may be encouraged to pool such resources and custom hire such facilities for the benefit of the members.

8. Flowers are extremely perishable. The window available from harvest to end user applications is hardly few hours thereby leaving this sector vulnerable to exploitation and frequent price crash. It is therefore important to create integrated Flori-Malls at major markets with dedicated cool chain, a pilot plant for essential oils extraction, pigment and dyes extraction, poultry feed (marigold petals), gulkand making unit (for roses), petal embedded handmade paper, dry flower units for those flowers which are eligible for such conversion. Vermicompost units for recycling the spoiled flowers also need to be integral of such malls.

9. In smaller markets dedicated cold stores may be installed to store excess produce and reduce the distress sale.

4.2 Cut Flower Sector Only 1.5% of area is under the cut flower crops grown primarily under the polyhouses to cater to the export markets. The area under sector is expanding at a rate of 5% while the trade in the sector is

Page 8: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

growing at a steady pace of 10% per annum. The sector is fairly better organized with considerable infrastructure in place. India produces about 867000 MT of cut flowers per annum (2018-19). Impact The export of Indian flowers are mostly event driven. The production and major export are programmed to catch up major international events like Christmas, New Year eve, Valentine’s and Mother’s Day etc., Fortunately most of the events are over. The limited exports are now disrupted due to air travel ban.

Consumption Avenues Status

Religious places Closed

Marriages Cancelled

Social gatherings Differed

Official functions Cancelled

Festivals and Cultural events Low key

Corporate events Differed

Local Markets Closed

Florists Closed

Online gifting options Disrupted

In order to understand the impact, comparative analysis of arrivals and price realization for different cut flowers in important flower markets was done for the period January-April 2019 and 2020 (Table 7-10). Table 7. January -Cut Flowers (Price Rs/100 flowers ; Arrival in Numbers)

Crop Jan 2020

Avg.

Wholesale

Price

Jan 2019

Avg.

Wholesale

Price

Jan2020

Avg.Retail

Price

Jan 2019

Avg.Retail

Price

Jan 2020

Total

Arrival

Jan 2019

Total

Arrival

Change

in Ave

Whole

Sale

Price

Change

in Ave

Retail

Price

Change

in

Arrival

Anthurium 2331.667 2156.667 3406 3447.333 171597 228524 175 -41.3333 -56927

Carnation 740.7143 753 1210.714 1107.857 6342862 9260048 -12.2857 102.8571 -

2917186

Dutch rose 696.75 507 1094.75 768.375 9554852 9265648 189.75 326.375 289204

Gerbera 516.375 353.75 842.375 666.5 12925132 25458448 162.625 175.875 -1.3E+07

Gladiolus 974.2857 1475.429 1893.714 2945.286 493650 435200 -501.143 -1051.57 58450

Orchids 2206.667 1527.333 3137.167 2133.667 1528252 1075106 679.3333 1003.5 453146

Tuberose

Double

638.6667 256 971.6667 367.3333 128058 64208 36 74.33333 -950

Page 9: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Table 8. February - Cut Flowers (Price Rs/100 flowers ; Arrival in Numbers)

Crop February

2020 Avg.

Wholesale

Price

February

2019 Avg.

Wholesale

Price

February

2020

Avg.Retail

Price

February

2019

Avg.Retail

Price

February

2020

Total

Arrival

February

2019

Total

Arrival

Change

in Ave

Whole

Sale

Price

Change

in Ave

Retail

Price

Change in

Arrival

Anthurium 2134 1951 2983.6 2861.6 204678 236529 19 2 -44949

Carnation 751.875 1067.75 1098.75 1622.625 9544654 15128058 -315.875 -523.875 -5583404

Dutch rose 698.2222 607.7778 1013.222 916.4444 10868854 18364058 90.44444 96.77778 -7495204

Gerbera 506.6667 375 1063 627 18983648 28045658 131.6667 436 -9062010

Gladiolus 1127.429 701.1429 2034.143 1602.857 740890 735400 426.2857 431.2857 5490

Orchids 1653.429 1623 2197.429 2308.429 1649054 2500058 30.42857 -111 -851004

Tuberose

Double

625.3333 229 879 353.6667 105736 114422 76.33333 105.3333 -30086

Table 9. March- Cut Flowers (Price Rs/100 flowers ; Arrival in Numbers)

Crop March 2020

Avg.

Wholesale

Price

March

2019 Avg.

Wholesale

Price

March

2020

Avg.Retail

Price

March

2019

Avg.Retail

Price

March

2020

Total

Arrival

March

2019

Total

Arrival

Change

in Ave

Whole

Sale

Price

Change

in Ave

Retail

Price

Change in

Arrival

Anthurium 1907.6 1817.8 3015.8 2764.2 257691 108029 89.8 -351.4 149662

Carnation 628.375 919.25 915.875 1492.875 7176040 13822058 -290.875 -577 -6646018

Dutch rose 510.1111 445.3333 788.4444 687.6667 8157456 17275058 64.77778 100.7778 -9117602

Gerbera 326.8889 307.3333 553.4444 528 20954240 19218058 19.55556 25.44444 1736182

Gladiolus 835.5714 543.8571 1657.429 1100.143 799800 1186000 291.7143 557.2857 -386200

Tuberose

Double

592 208.3333 956.6667 337.6667 114556 107278 48 162.6667 -42722

Page 10: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Table 10. April – Cut Flowers (Price Rs/100 flowers ; Arrival in Numbers)

Crop April 2020

Avg.

Wholesale

Price

April 2019

Avg.

Wholesale

Price

April 2020

Avg.Retail

Price

April

2019

Avg.Retail

Price

April

2020

Total

Arrival

April

2019

Total

Arrival

Change

in Ave

Whole

Sale

Price

Change

in Ave

Retail

Price

Change in

Arrival

Anthurium 0 2182.333 0 3361.667 0 117774 -2182.33 -3361.67 -117774

Carnation 0 855.7143 0 1316.714 0 9228648 -855.714 -1316.71 -9228648

Dutch rose 0 527.4286 0 810 0 12796448 -527.429 -810 -1.3E+07

Gerbera 0 402.4286 0 657.7143 0 38028248 -402.429 -657.714 -3.8E+07

Gladiolus 0 900.8333 0 1579.167 0 599900 -900.833 -1579.17 -599900

Orchids 0 1662.6 0 2388.2 0 1210248 -1662.6 -2388.2 -1210248

Tuberose

Double

0 353 0 553 0 99708 -353 -553 -99708

The data pertains to only few important flowers documented by NHB. Some of the flower crops which also contribute to the overall trade like lilium, chrysanthemum, gypsophila, cala lily, heliconia, bird of Paradises, limonium, lisianthus are not documented by the NHB database. The arrivals and price realization was healthy till March 2020 in all the cut flowers. However the arrivals were zero during the month of April (10th April 2020). In the corresponding month during 2019 the arrivals (Table 11) were substantial in Anthurium (117774), Carnation (9228648), Roses (12796448), Gerbera (38028248), Gladiolus (599900), orchids (1210248) and Tuberose (99708). The change in arrivals recorded negative trends in all the flowers (Table 10). Considering the same trend of the previous year the losses translate to, Table 11. Estimated Losses during April Month in Cut Flowers

Crop April 2019

Avg.

Wholesale

Price

Rs/100

April 2019

Avg.Retail

Price

Rs/100

April 2019

Total

Arrival

Numbers

Loss in terms

of

Wholesale

price for

April

(Rs)

Loss in terms

of Retail Price

for April

(Rs)

Losses in terms

of Wholesale

price for 10

days (Rs)

Losses in

terms of

Retail price

for 10 days

(Rs)

Anthurium 2182.333 3361.667 117774 25,72,184.16 39,58,384.14 8,57,394.72 13,19,461.38

Carnation 855.7143 1316.714 9228648 7,89,04,940 11,99,72,424 2,63,01,646 3,99,90,808

Dutch rose 527.4286 810 12796448 6,39,82,240 10,23,71,584 2,13,27,413 3,41,23,861

Gerbera 402.4286 657.7143 38028248 15,21,12,992 24,71,83,612 5,07,04,330 8,23,94,537

Page 11: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Gladiolus 900.8333 1579.167 599900 53,99,100 94,18,430 17,99,700 31,39,476

Orchids 1662.6 2388.2 1210248 1,93,63,968 2,88,03,902 64,54,656 96,01,300

Tuberose

Double

353 553 99708 3,48,978 5,48,394 1,16,326 1,82,798

Total 10,75,61,465. 17,07,52,241.

Considering similar arrivals and price realization during April 2020, conservative estimates indicate that cut flower sector witnessed losses to a tune of Rs. 10.75 cr on wholesale price basis and Rs.17.07 cr on retail price basis during the lockdown period. Desperate Measures adopted by growers

• Many farmers have discarded the flowers (rose, gerbera, orchids, liliums) as there are no labour, transport and demand

• Some of the farmers have fed the flowers to cattle

• Some of the growers have stored the flowers in cold storage with a hope to transport later.

• Some of the growers are converting the flowers as compost.

Rose, Lilium, carnation, gerbera, Cala lily Flowers discarded by famers

Page 12: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

Cold stored flowers being discarded Way Forward To cope with the acute distress the sector faced, the sector requires the following support.

1. Subsidy for erection of low cost polyhouse must be continued. Similarly support needs to be extended for replacement of cladding material after 3 years, hail proof nets for meeting the extreme weather conditions

2. Identification and promotion of certified nurseries/ tissue culture labs for quality planting material with virus indexing laboratories

3. Protected cultivation is input intensive industry that requires support for the use of soil less culture and enriched alternate media, liquid fertilizer formulations . There is need to rethink on fertilizers policy on importing of water soluble and foliar fertilizers.

4. Protected cultivation is an energy intensive sector. Support needs to be extended for the use of alternate energy sources like solar and wind energy for individuals and also the SHG’s.

5. Innovation is the key to the floriculture industry. Promotion of new cut flower crops, identification of novel indigenous varieties for cut flower, multitier green houses to harvest vertical space are some of the areas that need to be promoted as new initiatives.

6. Support for promotion of rainwater harvesting and solar farming on the ponds need support and encouragement.

Page 13: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

7. Development of Greenhouse clusters, promotion of crop specific self help groups should be encouraged.

8. The greenhouse clusters need to be augmented with dedicated cool chain, a pilot plant for essential oils extraction, pigment and dyes extraction, gulkand making unit (for roses), petal embedded handmade paper, dry flower units for those flowers which are eligible for such conversion. Vermicompost units for recycling the spoiled flowers also need to be integral of such clusters.

4.3 Dry Flowers One can enjoy the freshness of a flower garden throughout the year by cutting and drying the favorite flowers. The two easiest and least expensive methods are sand-drying and air-drying. Out of Rs. 570 cr total exports from India during 2018-19 nearly 60% of Indian floriculture exports comprise of dry flowers. Impact At present the industry is not well organised and depends on the plant material available in forests and no systematic growing of specialised flowers exists anywhere in the country. The demand for the dry flowers is increasing at an impressive rate of 8-10% and therefore there is a great scope for the Indian entrepreneurs. In view of the lockdown the collection from the natural habitats is hampered. At the same time disruptions in labour availability, input supply and transport has impacted the sector. The consumption has also affected owing to

Consumption Avenues Status

Marriages Cancelled

Social gatherings Differed

Official functions Cancelled

Local Markets Closed

Florists Closed

Online gifting options Disrupted

Way Forward

1. Training and entrepreneurship promotion for production and export of dry flower is paramount. Tribal women, unemployed youth could be trained under Skilling India and Standup India.

2. Integrate the markets with centralized facility for dry flower production technology to absorb the excessive production during glut.

3. Design and fabricate a series of driers (solar, microwave, hot air etc.,) to be integrated with the greenhouse cluster, flori malls etc.,

4. The industry depends heavily on synthetic dyes for colouring the dry flowers and adding flavours and fragrances. Integrated Flori Malls with essential oil units, pigment and dye extraction units could support the dry flower industry to complete the value chain.

Page 14: Floriculture: Impact Analysis and Way Forward · Floriculture: Impact Analysis and Way Forward 1. Introduction Indian floriculture which remained homestead farming till late 80’s

4.4 Florist and Floral Decorations The demand for floral decorations is increasing rapidly due to lavish arrangements during social, political, entertainment and sports events. This sector though is unorganized the volume of business is quite significant. Impact In view of the lockdown this segment of floriculture is adversely affected as the major consumption avenues are disrupted.

Consumption Avenues Status

Marriages Cancelled

Social gatherings Differed

Official functions Cancelled

Local Markets Closed

Florists Closed

Online gifting options Disrupted

Way Forward

1. Invasion of cheap plastic flowers from the neighboring countries is harming this creative segment of floriculture. Besides loss of business a large pollution footprint is left by such plastic flowers with toxic colours and dyes. Import restriction to be put in place for such harmful flowers.

2. This particular sector is ideally suited for promotion under Skilling India and Standup India to empower rural and urban women self groups for floral decoration. Training organization in public and private domain need support from these flagship programmes to develop the required skills.

3. The florist shops have sprung up across the country almost in every street corner. Very often

they operate with minimum support under harsh weather conditions. Support for cool

boxes, air conditioners, subsidized floral preservative, tools and gadgets are ubiquitous for

this sector.

4.5 Pot Plant Production and Rentals In the global bloom business, the second important segment of floriculture, which contributes a major share after cut flowers is the sale of pot plants. Due to rapid urbanization and industrialization the land under agriculture and forestry is fast depleting. In a quest to bring the nature to drawing rooms the urban population is more inclined to purchase and grow plants in their houses, which has opened the avenue for the large scale production of potted plants and their marketing. It has also opened up a newer avenue of plant rentals for interior decoration in corporate houses. Impact

• In view of the acute shortage of labour the nurseries are just maintaining the existing stock and have seized further propagation of the plant material.

• Disruption in the supply of soil, media, polybags, fertilizers has impacted the segment.

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• Cancellation of trains, interstate transportation and local transportation has severely curtailed the business.

Way forward

1. Development of unified standards for the planting material that is produced in the country.

To ensure uniform pricing and level playing field for nurseries across the country.

2. This segment of floriculture is ideal for Standup India progamme to create new generation

entrepreneurs. Support for infrastructure, input cost and linkages to Flori Malls ensures the

growth of this sector.

3. Support for intensive training and capacity building to educate the nurserymen on bio-

security issues related to planting material, spread of new threats in the country, threat to

environment and ecology.

4. Classification of nursery activity and the pot plant rentals as agricultural activity in the new

GST regime.

4.6 Bedding Plant Production Many bedding and annual flowers are produced in highly automated greenhouses in the west to produce billions of plants for the corporate and public landscaping. Due to increasing fuel costs and labour costs in the west there is little scope for further expansion of these hi-tech industries in the developed world. Due to congenial environment across our country large scale production of seedlings of annual flower crops as well as the vegetable crops is being taken up in major nursery hubs. Impact

• The major consumption of plug plants is for winter season annuals. Fortunately the season for winter annuals is over.

• Due to acute shortage of labour plug plant production has come to a standstill for summer season annuals.

• Availability of Media, plug trays, fertilizers, insecticides etc., is disrupted. Way Forward

1. Accreditation of nurseries that produce the planting material of floricultural crops is paramount. Indexing of mother plants, screening for seed borne diseases at periodic intervals ensure healthy planting material and crop. Rapid spread of phytoplasma/viral diseases through the propagules in recent times is a major concern. Support plant health clinics with diagnostic tools to check the spread of such diseases.

4.7 Landscaping The avenues for landscaping are fast expending due to increasing industrialization and environment regulation and the quest to beautify the surroundings. Progress in the corporate landscaping has synergized the growth of conventional nursery industry, which now specializes on a number of innovative options.

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Impact

• Due to Covid 19 pandemic a number of ongoing projects in real estate sector, public parks, religious places are at standstill.

• Supply of plant material, labour and other inputs is disrupted.

• In the ensuing summer months new projects would be bare minimum except in Hills. Hence the impact in the coming months would be minimum.

Way Forward

1. Interiorscaping and exteriorscaping using plants is expanding leaps and bounds with new recreational, residential, industrial townships. Support for vertical gardens, vertical farming, green walls in places of importance to boost the environmental services.

2. Classification of landscaping services in suitable minimum tax regimes. 4.8 Lawn Industry The demand for turf grass is increasing day by day as new specialized parks, golf courses and stadia are emerging in different locations of the country. The corporate houses are evincing their commitment to mitigate the pollution by resorting to landscaping the corporate premises and their factories. Such initiatives, though few in number but rapidly expanding to create enough market for this sector. Sporting events would synergize the demand for specific grass for the stadia to be constructed for the events. Impact

• Fortunately not many projects are planned during the summer months.

• Due to acute shortage of labour the maintenance of existing lawns has become a major issue.

Way Forward

• Expanding turf grass industry in the country is an ideal segment of floriculture to harmonize Skilling India and Standup India initiatives. Support for certification programmes organized by public and private enterprises is paramount.

• As a water guzzling segment of floriculture, like sports arena and golf courses, there is need to rationalize the water usage by promoting the recycled water for such water intensive activities. Support therefore needs to be extended for SWTP in public and private entities.

6.9 Plant tissue culture Plant tissue culture activities in India are at present confined to production of ornamental and flowering plants, which have a large domestic and export market. India produces a number of foliage and flowering plants and export them at stage III.

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Impact

• Owing to the disruption in the international air movement the shipments are delayed.

• Labour shortage resulted in extending the sub-culturing periods. Way Forward

1. Support for the establishment of accredited diagnostic labs in PPP mode to ensure the production of disease free planting material of all the planting material produced in the tissue culture labs.

2. Accreditation of tissue culture labs to ensure the quality of planting material generated in such labs.

4.10 Essential Oil Extraction The major flower crops important for essential oil extraction include rose, jasmine, tuberose, vanilla etc., The major producers of essential oils are Brazil, China, USA, Egypt, India, Mexico, Guatemala and Indonesia. All of them with the exception of USA are developing countries with low cost, peasant type economies. The major consumers are the USA (40%), Western Europe (30%) and Japan (7%). The demand for the essential oils progresses at a rate of 7-9% per annum and offers unique scope for large scale cultivation of essential oil bearing crops and their processing using both conventional and ultra modern vacuum distillation/ solvent extraction/ liquid CO2 methods Impact

• Most of essential oil extraction units enter in to contract farming with the farmers to ensure regular supply. Owing to the disruption in the labour availability, harvesting and subsequent transportation are adversely affected.

• Due to interruption in transport supply of solvents and fuel for the extraction units in impacted.

Way Forward

1. Development of clusters for specific essential oil bearing crops in selected pockets and

support the self help groups to create the extraction units. 2. Modernize the age old steam distillation infrastructure in UP and Rajasthan and other states

and move to modern solvent and super critical liquid CO2 extraction. 3. Creation of mobile extraction units on custom hiring basis at each district to address the glut

and unforeseen pandemics. 4. Initiate research on tools and gadgets for efficient harvesting of flowers so as to reach the

extraction unit at shortest possible time. 5. Support cold chain from growing clusters to extraction units to minimize the loss of volatiles

in transit. 4.11 Natural Pigments / Dyes From Flowers At present the technology for isolation of xanthophyll pigments present in Marigold has been perfected and large scale cultivation of Marigold is being attempted in parts of India in association with the extraction Industries. The marigold pigment is widely used in the poultry industry to

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enhance the color of the meat as well of the yolk of the eggs beside it usage in food and textile industry. Similarly many native flowers possess valuable pigments, which can be isolated and used for varied applications including pharmaceutical. This segment requires the support in the following areas Impact

• Due to interruption in transport supply of solvents and fuel for the extraction units in impacted.

Way Forward

1. Development of clusters for specific pigment bearing crops in selected pockets and support the

self help groups to create the extraction units. 2. Creation of mobile extraction units on custom hiring basis at each district to address the glut and

unforeseen pandemics. 3. Initiate research on tools and gadgets for efficient harvesting of flowers so as to reach the

extraction unit at shortest possible time. 4. Support cold chain from growing clusters to extraction units to minimize the loss of pigments in

transit. 5. Promotion of contract farming of flowers for extraction of pigments and dyes from native flora 6. Create and sustain SHG for cultivation and extraction of pigments and dyes. Support for the

creation of required infrastructure is the need of the segment.

4.12 Seed Production Commercial cultivation of flowering annuals for producing the seeds / F1 hybrids is fast expanding across the country due to promising economic returns. Seed production of marigold, verbena, caladium, pansy, viola, stock etc holds promise for peri urban locations of India. Impact

• The seed production hubs for winter annuals in southern states are affected as the flowers are ready for harvest for seed collection. However, the seeds could be harvested later in those crops where the shattering is minimum.

• Owing to labour shortage seed collection, cleaning and processing are affected.

• In Northern states the crops are nearing maturity and hence stagger the collection and processing of the seeds.

Way Forward This segment of floriculture requires the support in terms of

1. Create and strengthen clusters for seed production of floricultural crops and integrate with bee culture for higher returns of seeds and as alternate source of income from honey.

2. Develop SHG and extend support for common infrastructure for seed processing and

packaging.

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3. Support the setting up of flower seed hub/ seed village for promotion of flower seed production

5. Other Policies 5.1 Taxation Floricultural activities need to be treated as agricultural especially in view of the latest GST for taxation, power, water etc. However, wherever identified as industry it should not be equated with other manufacturing and service industries in terms of labour, inputs etc. 5.2 Cluster Consolidation The model of cluster consolidation successfully implemented in the NER under HTM needs to be replicated in other states as well. Incentive should be provided for consolidators for infrastructure for PHM, including cold chain transportation and management, marketing. The existing provisions for subsidy under NHB/APEDA need to be enhanced. 5.3 Cold Chain Infrastructure Rural transportation, logistics, mobile cold storages facilities need to be created for the loose flower sector which is the main stay of Indian floriculture. Dedicated climate controlled warehouses, cold rooms, cool chain be created for the fresh and dry flower storage and transportation. 5.4 Marketing Infrastructure Creating marketing infrastructure with backward linkages should be given more priority and if possible a marketing model on the lines of National Dairy Development Board be evolved for the purpose. At least one such model be created in each state in PPP mode. 5.5 Label Claims of Pesticides Label claim pesticides and herbicides are negligible on ornamental crops. However, this does not deter farmers to spray new generation molecules to combat the pests. Indiscriminate usage of such lethal pesticides has impacted the ecosystem by eliminating a number of pollinizers which frequent the flowers for nectar and pollen. Depleting pollinizer population is of major concern for enhancing the productivity of both field and horticultural crops. Therefore, research on eco-friendly bioactive compounds that could be used for effective management of pests is one of the major interventions that need to be made.

1. Expand the label claims of new generation safe molecules for effective management of pests and diseases on flower crops.

2. Incentivize the bio-control applications on floricultural crops to produce eco-friendly flowers

and plants.

3. Measures to reduce the lengthy procedures for registering the pesticides including the organic ones.

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Annexure I State wise Programmes in Operation Karnataka The state of Karnataka has a number of policies for promotion of horticulture in general and policies/programmes exclusively for the promotion of floriculture. The state has accorded industry status to floriculture. Important programmes/interventions specific to state include

• Infrastructural facilities for Floricultural Development

• Model Floriculture Centre (MFC)

• Assistance for the Construction of Greenhouse and Shade Net house

• Scheme for Export Promotion and Market Development

• Commercial Tissue Culture Laboratory

• Model Floriculture Village

• Assistance to Growers’ Associations

• Cargo Centre at Bangalore Airport

• Floriculture Auction Centre

• South India Floriculture Association (SIFA) Tamil Nadu

• The state of Tamil Nadu has a specific programme for Mass Multiplication of Carnation Mother Plants in Nilgiris district besides a number of programmes for overall promotion of horticulture.

Maharashtra

• Nurseries play an important role in development of orchards in Maharashtra. Maharashtra is a leading state in nurseries and horticultural crops. The Nursery Regulation Act is in force in the state by which it is possible to control the quality of planting material given to farmers.

• Maharashtra State leads in area under protected cultivation. Model Floriculture Unit, started two decades back, and hi-tech floriculture unit at College of Agriculture, Pune, and Fruit Research Centre, Himayatbag Aurangabad, Horticulture Training Centre (now known as NIPHT), Talegaon has lead to commercial horticulture/floriculture through protected cultivation. Floriculture Park at Talegaon, Pune is a classical example of state intervention for promotion of floriculture. The Maharashtra Industrial Development Corporation has created the basic infrastructure, logistics and encouraged the growers to start protected cultivation. The floriculture park is now one of the major hubs for growing and exporting of flowers from India.

Odisha

• The Government of Odisha operates state specific programmes specific some of the important flower crops grown under protected cultivation (Rose) and open filed cultivation (marigold, tuberose and jasmine).

• Maximum assistance for Rose is Rs. 2,50,000 /- (50% of cost for meeting the expenditure on planting material and cost of inputs) which is limited to 1ha per beneficiary.

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• Assistance of Marigold is Rs.57,500/- (50% of cost for meeting the expenditure on planting material and cost of inputs) which is limited to 1ha per beneficiary.

• Maximum assistance per ha for Tuberose cultivation is Rs. 60,000/- (50% of cost for meeting the expenditure on planting material and cost of inputs which is limited to 1ha per beneficiary.

• (d)Maximum assistance for Jasmine cultivation is Rs.60,000/- (50% of cost for meeting the expenditure on planting material and cost of inputs) which is limited to 1ha per beneficiary.

Jharkhand

• Measures to promote floriculture include promotion of

• Nursery - 1 ha unit (No.)

• IPM & INM for horticulture crops

• Mulching - local haystack & plastics

• Support for vegetable cultivation (Certified seed, compost, plant protection, etc.) (ha) Floriculture (loose flower) (acre) Bibulous Flowers (ha)

• Tropical polyhouse for off season vegetables and flower cultivation (500 sq mtr unit)

• Floriculture policies: The State will help constitute groups of floriculturists with its intervention to overcome the bottlenecks of marketing, export and related infrastructural facilities for promotion of floriculture.

• Air freight subsidy will be provided to the floriculturists.

• Information about prices and the floriculture technology is not readily available to small producers. This will be provided through website in regional languages through media, pamphlets, bulletins and booklets.

• Sufficient primary markets are not there for floricultural products. More number of markets will be created in the State at vantage places.

• Growers Co-operatives will be encouraged and wholesale markets exclusively for flowers will be developed.

• Contract farming of flowers will be encouraged with suitable forward linkages.

• Suitable financial incentives will be provided not only for cultivation of flowers but also for post-harvest management.

• State Government would give 100 per cent outright excise exemption for the first ten years and 100 per cent income tax exemption for the first five years like Govt. of Uttarakhand to attract the corporate sector in floriculture

Sikkim

• Flowers (Loose bulbous and cut flowers) (Maximum 2 hectares / beneficiary)

• Creating Hi-tech Nursery (2-4 ha unit)

• Protected Cultivation Using Green House Fan & Pad System (limited to 4000 sq m per beneficiary)

Haryana Model floriculture centres in Haryana

• The Floriculture department of Haryana is developing two model floriculture centres to showcase the ideal cultivation technologies for various flowers and promote floriculture among farmers in the state.

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• The two centres are coming up at Gharaunda near Karnal and at Sector 21 in Panchkula at a cost of Rs 70 lakh each. The project is financed by the National Horticulture Mission.

Himachal Pradesh

• Floriculture Nurseries

• Model Floriculture Centre

• Post-harvest Infrastructure

• Steps Initiated to Promote Floriculture West Bengal 1. Area expansion

• Cut Flowers 250 ha

• Bulbous Flowers 350 ha

• Loose Flowers 350 ha 2. Nurseries proposed:

• Public sector 2

• Private sector 63 3. Tissue culture labs

• Public (2)

• Private (1) 4. Green house: Siliguri (2), Jalpaiguri (2), Nadia (4), West Midnapore (8), 5. Shade net cultivation of 100 ha 6. Market development at North 24 Parganas, Panskura, Bolpur, Nadia, Siliguri 7. Reefer Vehicles 5, mobile pre- Reefer Vehicles 5, cooling units 5, Pack houses 5, collection

centers 5 Tripura

• Area expansion on flowers

• Assistance for raising of flower garden @ Rs.6000/- for 0.04 ha. unit with indigenous flower like Jaba, Beli, Jui, Balsam, Malagadha etc having market value.

• Development and production of vegetable & flower seedlings in existing Dept. seedling station. Gomati = AMP & UDP, West = DDH(W), Sepahijala = BLG, Khwai = KHW & TLM, Dhalai = SLM, Unakoti = KLS

Mizoram

• Assistance for cultivation of Flowers

• Assistance for protected cultivation for growing flowers & vegetables. State & NHM Goa

• Assistance for cultivation of Flowers

• Assistance for protected cultivation for growing flowers & vegetables. State & NHM

End of the Document

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