INDIAN FLORICULTURE

Roses, chrysanthemums, carnations, marigold, jasmine, gerberas... flowers are in demand all year round both in domestic and foreign markets. Prayer, marriage, birth ceremony, expressing love, honoring someone, and even in death rituals flowers are used extensively.

Delhi and Mumbai are major consumers of cut flowers, with Bangalore, Kolkata, Chennai, Pune, not very far behind. German, Dutch, UK, US, Japan and Italian markets are typical export destinations. With the government offering innovative schemes to boost agri-business and banks doling out big money, is it worth venturing into the floriculture business?

This could have happened to you sometime. You’ve walked from shop to shop unable to find a single red rose, especially on say Valentine’s Day. The demand is more and supply is far less and you sense a bright business opportunity here.

However, setting up a modern flower farm will involve costs that could soar up to crores of rupees. Many floriculture units in the initial days had to pull its shutters down due to wrong projections, lack of infrastructure and lesser than expected market demand.

It is an undeniable fact that flowers are perishable commodities that require expensive cold storages facilities. Most of the producers in the flower business concentrated on production process alone without paying attention to market needs. Without a proper business plan most of the floriculture boom in 80s waned away considerably.

Costs and quality is the essence of financial success. Keep costs to the minimum when selecting land, plant materials, water resources, power alternatives and equipments,” says Babu Arunachalam, Project Manager, Floritech India Limited.

Begin with an elaborate business plan on capital funding, location, crop choice, greenhouse/poly-house construction and design, irrigation system, enhancing marketing and management skills.

Select an ideal farming location with ample quality water supply, suitable rainfall, not extreme temperature fluctuations, fertile, away from shade of neighbouring trees or hills, adequate labour availability, road accessibility, and of course not very windy round the year.

“We procured around 20 acres much in the interior, with future expansion in mind. It was a gross mistake, we realised soon. Had we purchased half that area nearer to city we could have saved phenomenally on transportation. You cannot ignore the potential of land price appreciation,” opines Babu Arunachalam.

“Water is a key resource and sufficient good quality water makes or mars the prospects of the project. Suitable soil for a particular crop is important but with soil substrates like cocopeat easily available this can be managed.”

Who will buy your flowers? A thorough market research is imperative. You can target florists, chain stores, gardens, restaurants, hotels, markets, weddings, other wholesalers, online shops and roadside stalls. Babu Arunachalam feels that the biggest challenge is finding the right buyers for your produce.

“You can always sell the produce. But how you collect your money makes or ruins you. There have been innumerable defaulters in India and abroad. Select buyers with honesty and integrity.”

A profitable flower production business needs employment of modern technology in farms, proper post-harvest handling, good packaging, proper transportation and a successful marketing strategy.

For floriculture business to bounce back to its initial bloom a more serious effort is needed on part of Government towards infrastructure development, concession in air freight charges, lowering bank interest rates, active scientific research, implementation of latest technology and help in specialised man power training.

The horticulture department does help with monetary and technical assistance and a special subsidy to floriculturists.

However, considering the challenges in the business, competition from other growers and perishable nature of flowers, see if you have the unbending capacity to bloom big in the business of floriculture.

by KAVITA SRIRAM  Source : TIMES NEWS NETWORK[ FRIDAY, APRIL 28, 2006 12:00:17 AM

Floriculture opportunies here and abroad

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