Government of India has identified floriculture as a sunrise industry and accorded it 100 per cent export oriented status. Owing to steady increase in demand for flowers, floriculture has become one of the important commercial trades in Agriculture. Hence commercial floriculture has emerged as a hi-tech activity-taking place under controlled climatic conditions inside the greenhouse. The Indian floriculture industry has been shifting from traditional flowers to cut flowers for export purposes. The liberalised economy has given an impetus to the Indian entrepreneurs for establishing export oriented floriculture units under controlled climatic conditions. Agricultural and Processed Food Products Export Development Authority (APEDA), is responsible for export promotion and development of floriculture in India. Dr M Angamuthu, chairman, APEDA shares his views on current status of floriculture export in India and the way forward with AgroSpectrum. Edited excerpts;
How APEDA is contributing to floriculture exports?
- APEDA in guidance with the Ministry of Commerce & Agriculture has formed an Export Promotion Forum. This forum is set up to discuss the issues faced by exporters and its Resolution.
- APEDA intends to organise Capacity Building Programme along with the respective institution of the state for floriculture export.
- For Market Development, APEDA is conducting regular Buyer Seller Meet with importing countries in the EU. However, as per the feedback, the cost competitiveness of Indian floriculture products in comparison to Africa is hampering the exports. Similarly, handling perishables like floriculture at exit points need to be improved.
- APEDA is always encouraging exports of value added products like dried flowers for bouquet purposes. However, this sector also faces the challenge of availability of forest material as per the regulations of the Department of Forest, Government of India.
The floriculture industry, being known as the sunshine industry in India, is still struggling with multiple issues such as lack of knowledge about the greenhouse, irrigation management, plant protection, non-availability of modern farming tools and techniques, lack of information regarding import and export business. What measures should be taken to mitigate these challenges?
The challenges faced by the floriculture industry are the same as that of other horticulture sectors. The Government of India and its organisations like NHB (National Horticulture Board), MIDH (Mission for Integrated Development of Horticulture) & APEDA do provide subsidies to set up infrastructure including greenhouses, irrigation management etc. It has been observed that the floriculture industry is dependent upon the demand in the international market and is very price conscious. The cost of production, freight and working capital makes it difficult to sustain in comparison to Africa and other Asian countries due to their proximity as well as duty advantage in the main market of the EU. The Ministry of Commerce/Finance is providing relief like TMA (Transport and Marketing Assistance) & RoDTEP (Remission of Duties or Taxes on Export Product), APEDA is providing facilitation by conducting regular buyer seller meets. However, the current crisis of high air freight still hampers the growth of floriculture exports. It is also seen that the Government is willing to enter into a Free Trade Agreement (FTA) with the EU to sort out the issues of import duty.
Recently APEDA had signed collaboration under Council of Scientific and Industrial Research (CSIR) Floriculture Mission with ICAR-Directorate of Floriculture; Khadi and Village Industries Commission (KVIC), Tribal Cooperative Marketing Development Federation of India Limited (TRIFED); Fragrance and Flavour Development Centre (FFDC), Kannauj and Ministry of Micro, Small and Medium Enterprises (MSME) and Universities. How will it boost the growth of the floriculture industry?
APEDA’s collaboration with CSIR and institutions will be beneficial to help diversification in the export basket of floriculture. Presently, rose is the prominent variety for export. However, the potential lies in the other traditional floriculture and medicinal products including the dried floriculture for ornamental purposes as well. The plea of the industry is to simplify the export procedures of dried flowers which is connected to the wild collection of ornamental material. Other value added products like fragrances need a proper recognition as export industries. In this direction, FFDC & MSME and their state government offices have to play a major role in development of Road Map for exports of value added products of the floriculture industry.
What inputs are required for the growth of floriculture exports in India?
- Allowing free import for planting material for the development of floriculture according to the demand in the international market.
- Reforms in the permit procedures of imports of planting material for flowers.
- Priority clearance for flower consignment at major airports since flowers are a highly perishable category.
- Reduction in import duties in the EU for level playing field to Indian floriculture in comparison to Africa and other countries having zero duty advantage with Europe.
- Increase in financial assistance under TMA of the Ministry of Commerce and increase the percentage of RoDTEP declared by the government for mitigating the high air freight.
APEDA has developed a HORTINET traceability platform for horticulture produce export. Is APEDA planning to develop a traceability platform for floriculture export in future?
Traceability system was introduced for horticulture produce based on the requirements from importing countries on pesticides maximum residue limit (MRL) and effective monitoring of the same. Presently the volume of export of floriculture products is less and also in India, we have a limited number of farmers and exporters. Once India becomes a major player non-tariff barriers are likely to emerge. As and when the situation prevails, the introduction of traceability can be taken up in future.
How can FPO (Farmers Producers Organisation) contribute to floriculture export?
Formation of FPOs is a welcome move in the sector as collaboration at the farm level will help in aggregation of quality produce. It will also help in consolidation of product from identified floriculture clusters and export facilitation can be focused on the clusters. FPOs have been recognised by the Government of India for support financially and technically in order to have the export benefit distributed at the farmer level. Further, institutions like CSIR, Botanical Research Institute and Department of Floriculture Research, Pune will be useful for region wise and state wise development of FPOs in the floriculture sector. FPOs can take advantage of financial assistance for purchase of refer vans, establishment of laboratories and marketing of floriculture products in the identified clusters.
Dipti Barve
