current status of cut flower business in kathmandu

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this contents is based on my study. This was prepared for my M.Sc.Ag

this contents is based on my study. This was prepared for my M.Sc.Ag

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  • 1. PRESENT STATUS OF CUT FLOWER BUSINESS IN KATHMANDU: A CASE STUDY Submitted to: Prof. D. D. Dhakal, PhD. Department of Horticulture IAAS, PG Campus, Kirtipur, Nepal. Submitted by: Shankar Paudel R-2013-HRT-5M Department of Horticulture IAAS, PG Campus, Kirtipur, Nepal. April, 2014 Table of contents
  • 2. 1. Introduction ..............................................................................................................................................3 1.2 Objectives............................................................................................................................................2 2. Literature review.......................................................................................................................................3 2.1 World scenario of cut flower production............................................................................................3 2.2 National scenario ................................................................................................................................3 3. Material and Method................................................................................................................................4 4. RESULT AND DISCUSION ...........................................................................................................................5 4.1 Result ..................................................................................................................................................5 4.1.1 Production of cut flower..............................................................................................................5 4.1.2 Post harvest practices..................................................................................................................7 4.1.3 Marketing of cut flowers:.............................................................................................................8 4.1.4 Problems faced by Growers, Wholesaler and Retailer ..............................................................11 4.2 Discussion..........................................................................................................................................11 4.2.1 Prospects of cut flower in Nepal................................................................................................12 4.2.2 Export of cut flowers..................................................................................................................13 4.2.3 Requirement for the promotion of cut flower business............................................................14 5. Conclusion...............................................................................................................................................15 References Annex
  • 3. PRESENT STATUS OF CUT FLOWER BUSINESS IN KATHMANDU: A CASE STUDY Abstract The study was carried out to give the figure of cut flower in Kathmandu. This study was conducted by surveying of cut flower growers, wholesalers and retailers with face to face interview method. Floriculture business is expanding within the country and have important role in transferring income from rich people and institute to low income people. About 635 Nursery/flora farms are existed in 36 districts. There are 5 wholesalers and 60 regular retailers exist in present conditions. About 16 crores annual turnoverof cut flower is recorded in 2069/70 which quite high than previous years. It began with annual turnover of 0.22 crores in 1993/94. Annual turnover in 2005/06 and 2008/09 was 2 crores and 3.5 crores respectively. Cut flower business in Nepal is concentrated in Kathmandu valley. Main cut flowers are; gladiolus, carnation, rose, gerbera which are all round the year in Nepalese market while other are tulip, calendula, statice, Lisianthus, orchid, tuberose, alstromeria etc. These are used in many propose like in festivals, occasion and ceremony. The demand of cut flower is increases year by year due to many causes like change in culture, official habit, urbanization and awareness. Prospects of cut flower business is high in country due to many causes like high demand, high agro-ecological biodiversity, cheap labor and increasing tourist destination along with increasing support of government floriculture sectors through floriculture promotion policy 2069. Though, the cut flower business is increasing in country, export of cut flower in foreign market is negligible. For the export of cut flower Nepalese entrepreneur should care on high quality, high quantity, continuity of supply and in competitive price. For the promotion floriculture government should be there to help entrepreneurs and they should go together. Key words: cut flowers, growers, wholesaler, retailer, consumer, Kathmandu 1. Introduction 1.1 Background
  • 4. 2 Flowers are important part of human’s life from aesthetic to ornamental and environmental point of view included in branch of horticulture called floriculture. Floriculture business includes the production and trade of cut flowers, cut flowers, cut foliage, potted plants and bedding plant. Floriculture business is the emerging business in Nepal and it is found to be one of the major sectors to transfer income from high income group to low income group (FAN, 2013a). Cut flower business is the emerging business and played significant role in floriculture development. With the abundant biodiversity and various ecological zones Nepal has very much potentiality of growing flower across the country. Cut flower is part of plant characteristically including the bloom or inflorescence and some attach part but not including root and soil which is cut from the plant bearing it. It has most aesthetic value and religious value with other important aspect. Fresh cut flowers are used for decorative purposes such as vase arrangement, wreaths and garland. In Nepal, fresh flower mainly used in occasion like wedding ceremony, festivals, worship and other religious and ritual activities. Fresh flowers are arranged in different form like bouquet, bunch, and basket arrangement. These are used for gift purpose on occasion such as Valentine’s Day, Mother Day, New Year, Christmas, Birthday ceremony, wedding ceremony etc. In Nepal, main cut flowers grown are Gladiolus, Roses, Carnations, Gerbera, Tuberose, Statice, Lisianthus, Calendula, Cymbidium Orchid, Chrysanthemum, Aster, Lily, Anthurium, Bird of Paradise, tulips, etc. There is tremendous growth of cut flower along with some seasonal flower and seed, ornamental plant landscaping gardening. The export of flower increasing steadily where as the import has been slow down. Floriculture business in Nepal is centralized in Kathmandu Valley. The elevation and topographical condition of Kathmandu valley has been considered suitable and as representative for carnation production in Nepal. Kathmandu Valley is located in between 27° 28’ to 27°42' N latitude and 85°22' to 85°30' E longitude. Soil is also favorable for the production of cut flower in Kathmandu. The production sites are located in between the altitude of 1500-1550 meter above mean sea level (FAN). Cut flower business is an important sector which can contribute to development of country by many ways. Mainly people involved in this sector are low-income group of people like labor, small growers and small entrepreneurs. So, this sector can directly help in transferring income from a group of rich classes and institutions to low income groups and thereby play a crucial part in poverty reduction and directly contributes to better living and environment. On the other hand, it is an export potential industry and helps to earn foreign currency. Nepal as a tourist destination has good market opportunity for cut flower. Floriculture business can utilize the agro- biodiversity and helps in continuous employment and income generation. 1.2 Objectives • To find out the general trend of cut flower business in Kathmandu • To assess the production of cut flowers in Kathmandu • To identify the problems of related sectors of cut flowers
  • 5. 3 • To assess the prospects of cut flower business and export potentiality 2. Literature review 2.1 World scenario of cut flower production The international trade of cut flower is a blooming industry with an average annual growth of 6% and an estimated global trade volume more than $ 100 billion. Europe is the major market for cut flower and foliage. The main importers in world are Germany, the UK, the USA, the Netherlands, France, Japan and Italy. The top five exporters are the Netherlands, Colombia, Ecuador, Kenya and Israel. In export value the Dutch have a significant lead (Wijnanda, 2005). The main varieties of cut flowers grown are roses, gladiolus, carnation, and chrysanthemum. Roses strongly dominate the floriculture sector in most countries. The Netherlands is the biggest European producers of cut flowers and foliage and plays key role in the distribution of flowers around the continent. Major consumer markets are Germany (22%), the United States (15%), France (10%), the United Kingdom (10%), the Netherland (9%), Japan (6%), Italy (5%) and Switzerland (5%) (Wikipedia, 2014). Total exports of fresh cut flowers and foliage by all EU countries amounted to around €.8billionin 2012 (intra- and extra-EU trade). Europe imports most of its flower from Africa, with Kenya in the lead followed by Ethiopia, Zimbabwe, South Africa, and Uganda. The Netherlands is the biggest exporter of cut flowers, with a total value of €3.1billion exported mainly to the European market (2012). Ecuador has becomes in recent years the leading south American rose producer and it is known through the world for its high quality large headed roses due to altitude. 2.2 National scenario Cut flower business is mainly centralized in Kathmandu than other city. But trend of cut flower is expanding in other city like Pokhara, Narayangadh, Hetauda, Biratnagar, Dharan, Dhangadi etc. (FAN Souvnier, 2014). The localization of business in Kathmandu is due to access to consumer orientation and favorable natural condition. Another opportunity is there are many consumers with sufficient purchasing power. The existence of large star hotel, corporate office and national and international business house encourage the establishment of cut flower business in Kathmandu rather than other city (Gauchan et al., 2009). Floriculture industry is expanding in country. About 635 Nursery/flora farms are existed in 36 districts. In this sector about 40,000 people are engaged. Among these 5,000 people are directly employed, 20,000 dependent in those employed and 15,000 are indirectly employed. In cut flower Nepal is becoming self reliant in cut flower. Total annual turnover from the flower in 2069/70 is 105.32. Total export of 10.96 and total import of 4 crores recorded. About 16 crores annual turnover is recorded in 2069/70 which quite high than previous years. It began with annual turnover of 0.22 crores in 1993/94. Annual turnover in 2005/06 and 2008/09 was 2 crores and 3.5 crores respectively. This shows that cut flower business is in progressive way.
  • 6. 4 Floriculture in Nepal began some seven decades ago but formal business began only in the early nineties. Formation of FAN resulted in more organized business (Pun, 2014). For the promotion of cut flower business the FAN(Floriculture Association Nepal) was established in collaboration with AEC(Agroenterprise center) in 15th November 1992 with 10 founder member. FAN focused on organizing and participating the traders of related business. Promotional activities are organizing and participating in trade fairs and exhibitions, study tours and observational visits, conducting market research and analysis. Basic aim of this organization is to promote floriculture business in Nepal (FAN Souvenirs, 2014). Floriculture business in Nepal is relatively new one which has shown its remarkable development in last twelve years of organized efforts (Oli, 2004). From the study of buying behavior of Nepalese consumer of cut flower, it is found that there is great rise in the consumption of cut flower in Kathmandu (Shrestha et al., 2009). 3. Material and Method This section includes the different tools and techniques of research process such as selection of study area, methods and techniques of data collection and data management in the report. These outlines are briefly discussed below Site selection There were many nurseries in Kathmandu but these were scatter over the Kathmandu valley so site was selected within a valley. Primary data collection During the study different nursery, whole seller and retailer of cut flower were visited. Three different nurseries namely Kumari Flora Pvt. Ltd, Paknajol; Rakshya Nursery, Maharajgunj and Abloom Flora Farm, Chitwan were studied. Similarly, two wholesaler of Kathmandu valley namely United Flora Pvt. Ltd. and Global Flora Pvt. Ltd. were studied. To study the value of cut flower survey conducted in retailers of different places viz Desigen’s Flower and Gift Shop, Kamaladi; Lucky Fresh Flower, Maharajgunj; Rakshya flora, Maharajgunj etc. Secondary data collection For this study different data available in FAN (Floriculture Association Nepal) were consulted. Similarly, needed information was consulted on different literature like journal, articles, booklets, magazine and available material in internet. Technique of data collection and analysis Questionnaire with face-face interview method to study the nursery of cut flower grower and check list was used to collect information from retailer, whole seller and FAN. Secondary data were collected through study of different articles, journal, books, booklets, records. Data
  • 7. 5 which are collected through these techniques are presented in table, graph etc and discussion was done based on the information and experience of related persons. 4. RESULT AND DISCUSION 4.1 Result 4.1.1 Production of cut flower 4.1.1.1 Main cut flowers In Kathmandu mostly grown cut flower are Gladiolus, Carnation, Rose, Gerbera, Lisianthus, Calendula, tuberose, Alstromeria, statice, Orchid,etc. Among these Gladiolus comes to first in production and demand followed by carnation and rose. Production of gladiolus is high in other districts like Chitwan, Makwanpur, Dhading, Kabhre etc. Production of orchid is very few and cannot fulfill the demand. This is imported from Thailand. In Kathmandu production of carnation is high as compared to other. Gladiolus, Carnation, Rose and Gerbera are the main cut flower available year round in Kathmandu. Gladiolus, Tuberose and local rose are grown in open field while Dutch rose, carnation and gerbera are grown under covered area. 4.1.1.2 Planting material Planting material of different cut flower should import from different country. For carnation tissue culture plantlets are used first and then for next season cutting is used. Tissue cultured plants are imported from Spain and India. Similarly, Gerbera is propagated through tissue culture and imported from other country. Gladiolus is propagated through bulbs which produced within a country and some important varieties imported from Japan, Holannd. Calendula, Statice, Lisianthus etc. are propagated by seed. Alstromeria recently used in trail by Kumari Flora is propagated by tissue culture plant. Floriculture Co-Operative imports planting material like seed, cutting, budding/grafting from other country and distribute to many growers. Kumari Nursery also do the same work from private sectors. This nursery also produces different types of seed for flowers and ornamental plant. Price of planting materials different with different plant. Planting material for different plant is different and in Nepal growers used following material. Table: planting material and cost of planting material S.N. Name of cut flowers Planting material Cost 1. Gladiolus Bulbs 5-6 per bulbs 2. Dutch rose Grafted plant 150 per plant 3. Carnation Tissue cultured plant 30 per plant 4. Gerbera Cutting 5. Tuberose Bulbs 4 per bulb 6. Calendula Seed 1 per seed 7. Statice Seed 3 per seed 8. Lasianthus Seed 3 per seed
  • 8. 6 Varieties: main varieties of cut flower grown in Nepal are given in table below, Table: varieties of different cut flower grown in Nepal S.N. Name of Cut flower Varieties 1. Gladiolus American Beauty, Cendiman, Interpret, Wedding bucket 2. Rose Dutch rose and Tata local rose (types of rose) 3. Carnation Standard (1 stick contain 1 flower), Spray (1 stick contain many) 4. Gerbera Mini (high no. small size), standard (less no. large size) 5. Tuberose Double variety 6. Calendula Crown orange and yellow gold 4.1.1.3 Fertilizer and manure used in the field: Use of fertilizer is differs with different growers. Compost manure and poultry manure are used by some grower as a main sources while NPK use from urea, DAP and potash by others farmers. According to farmer practices generally 40:20:20 in first stage, 20:30:20 in second stage and 10:10:20 NPK in third stage/flowering stage is done in carnation. Fertilizers are applied split dose according to stage of growth and requirement in other types of cut flowers. Along with these fertilizers liquid fertilizer/ multiplex is used. Bone meal also used but grower experienced mite’s problem in carnation. As liquid fertilizer contains all type of essential material it helps to maintain quality. 4.1.1.4 Irrigation Drip irrigation is used by most of farmers and in some cases flooded method is used where excess water is available. Though the initial cost of construction or arrangement of drip irrigation is high, it is benefited in lateral stage. It saves the labor cost and water cost by using less most efficiently. Approximately Rs. 150000 is required to set drip irrigation channel for 6 ropani land. Operation cost of irrigation for 15 Bigha is estimated about Rs. 2,00,000 for gladiolus in Chitwan. 4.1.1.5 Yield Yield of cut flower depends on various factors like varieties, season, and cultivation practices. Some fluctuation found among the growers in yield like no. of stick per plant, time productive life etc. Based on information provided by grower, yield of different cut flower are given below in table, S.N. Name of cut flower No. of plant No. of stick per plant per year Total yield 1. Gladiolus 6250 0.8 5,000 2. Carnation 1700 25 42,500 3. Gerbera 5000 20 1,00,000 5. Calendula 5000 10 50,000 6. Statice 1000 10 10,000 7. Rose 22500
  • 9. 7 8. Tuberose 7500 4.1.2 Post harvest practices Currently, except for few organized, many small farmers do not practice any scientific post harvest operations. Harvested products are immediately taken to local markets. In both wholesale outlets and retail shops, the spikes are placed in buckets with normal water. There is no specific post harvest facility in the wholesale market. Only one wholesale (Global Flora Pvt. Ltd.) of cut flower has cold store in Kathmandu. Grading: Grading isn’t generally practiced by farmers. Most of growers think grading is not necessary in local market. But there are some standards to grade the high quality. For e.g. Standard variety of carnation requires 1 m length and spray variety require 45 cm inflorescence length. Similarly in case of rose, rose should be bud stage. Generally grading is done on the basis size and no. of spike in gladiolus. Categories of gladiolus on the basis of length as given, 60-70 cm, 70-90 cm, 90-100 cm, 90-100 cm and 100-110 cm. Size of bundle is different for domestic market and Delhi market as information given by Abloom flora Farm. For domestic market one bunch contains 50 spikes while for Delhi market it is 24 per bundle. Packing/packaging: It is differs with different plant. No advances type of packaging practices found in Nepal as all are produces for domestic market. Mostly carnation, gladiolus, rose, astromeria, calendula, Lisianthus are packed in similar way. These are wrapped with newspaper. One bundle content generally 20 stick. This bundle is wrapped by newspaper. Putting 5 bundles together in one whole bundle formed. Gerbera packaging is slightly different. The inflorescence part is put in a plastic cup to avoid the loss of petal and packed same as above given flowers. Storage: Cut flowers are highly perishable goods and cannot be stored for longer period of time. If proper care is not taken post harvest loss will be high. So, cooling system is required to preserve flower for longer period of time and fetch high price in main season of demand. Mostly wholesalers and retailers keep cut flower in bucket containing fresh water. Sucrose solution is only when cut flowers have to keep for longer period of time. In Nepal, only one cold storage is conducted in Global Flora Pvt. Ltd. in Kathmandu Plaza. FAN (Floriculture Association Nepal) assist Global Flora whole sell shop to keep cold storage as a trial one year ago. In this cold store, temperature (4-6˚C) as well as humidity (80-90%) is maintained. Mainly flower are preserved in off season of demand. For instance cut or fresh flower are preserved in Chaitra 15-20 for on-season Baishakh which is wedding season. This cooling system/cold store preserved flower up to 15-20 days according to nature of flower. Orchid and Carnation can be preserved up to 20-25 days. One lakh flower can be stored in a time. Load shading is biggest problem to conduct cold store. In retailer, some important fresh flower and bead, bouquet, bunches are keep in refrigerator for short period of time.
  • 10. 8 4.1.3 Marketing of cut flowers: Kathmandu is the main market for cut flower in Nepal. There are number of wholesaler, retailer, and consumer in Kathmandu. The following pie-chart shows the situation of cut flowers market in different districts of Nepal as data provided by FAN. Fig. members of FAN for cut flowers in different districts 4.1.3.1 Marketing Channel Marketing channel is a set of practices or activities necessary to transfer the ownership of goods and to move good from grower to consumers. In Nepal generally growers make available their produce in wholesale and retailers buys from wholesale and sell to consumers. Wholesale is also responsible to import cut flower in peak demand period when domestic product cannot fulfill demand. Similarly, export to India and other country is done by wholesale market. Consumes buy cut flower from retailers and also order retailer if they required high amount of fresh flower in occasion like wedding ceremony. Some institutions which are regular consumer like hotel order cut flower in wholesale also. Export Institutions Grower Wholesaler Retailer Individuals (consumers) Import Fig: Marketing channel of cut flower in Kathmandu 28 23 10 5 3 8 Kathmandu Lalitpur Bhaktapur Chitwan Kavre other
  • 11. 9 4.1.3.2 Wholesale market Wholesalers are those who involved in transaction of large volume of cut flower. Wholesale markets are only exists in Kathmandu and 6 in number. These wholesale markets are operated by private sectors. United Flora Pvt. Ltd., Global Flora Pvt. Ltd., Flora Nepal Pvt. Ltd., Bagmati Flora Pvt. Ltd are major markets. Among the wholesale market United Flora Pvt. Ltd. is the largest wholesale market located in Tripureswar, Kathmandu followed by Global Flora Pvt. Ltd. located in Tripureswor and Kathmandu Plaza. Wholesale markets are responsible for the marketing of cut flower in Nepal. They involve in collection of flowers from growers and supply to retailer. Wholesale market of cut flowers in Nepal acts as a commission agent which sells cut flower and keeps some commission generally 10%. Wholesale shops are not responsible for the transportation of cut flower. Wholesale markets are the link between grower and retailer. All the cost required to bring cut flower from field to wholesale should bear by growers. Wholesale stored cut flower until sell. Price will be fixed on wholesale shop based on the demand and supply. Wholesale market play significant role in marketing of cut flower. So, marketing is not much problem for grower. They have secure wholesale market. There is account pay system in united flora and Global flora. United pays to grower in every week and Global pays in every 15 days through bank account. 4.1.3.3 Retailers Retailers are those people who sell small quantity of cut flowers to consumers. There are many retailers in Kathmandu valley participate in the market and collect items of their interest for further value addition. Value addition is done by making different items like bouquet, bunch, basket decoration, bead etc. Retailers are ordered for car decoration, house decoration by consumer in occasion like wedding ceremony. About 60 regular retailers of cut flowers are existing in Kathmandu valley. Mainly available cut flowers in retailers are gladiolus, carnation, rose, gerbera, tuberose, statice, lisianthus, orchid, marigold, chrysanthemum (seasonal), lily(imported from India), sweetwillium etc. 4.1.3.4 Price of cut flower Prices of cut flowers and other floriculture products in Nepalese market are determined based on the seasons, demand and supply. Lack of proper post-harvesting knowledge and facilities and unscientific storage system have constrained in ensuring stability in prices and proper returns to the growers. Often seasonal demand cannot be fulfilled by the domestic supplies and entrepreneurs import from India. On many occasions growers have to lose and for the lack of demand flowers are thrown to garbage. One of the grower said that he could not sell his gladiolus even in Rs. 5 in the month Jestha. Proper farm management and production scheduling to match the market requirements have also become a crucial factor to the growers. . For the lack of information price of a product is determined only after it arrives at wholesale or retail counter in the market. In Nepal, price of cut flower is determined in wholesale based on demand and supply. Wholesaler forecast the price according to demand of regular and constant retailer and occasional demand by hotel, restaurant etc. Price also forecast according to the supply of cut flower from grower. Grower finds his price only after sell of his product by wholesale. Wholesalers have their grower member and regular retailer, accordingly price is fixed in market. But none of organization has taken steps to devise
  • 12. 10 information system for floriculture products. Price of cut flower in retailer was found slightly variation in different shop during the study. Table: wholesale price of different cut flowers in 2005 and 2014 S.N. Name of flowers Price per stick 2005 2014 1. Gladiolus 4.45 8 2. Carnation 5.37 12 3. Rose 7 9 4. Gerbera 3 12 Source: Field survey and FAN Table: retail price of different flowers in 2005 and 2014 S.N. Name of flowers Price 2005 2014 1. Gladiolus 8.5 15 2. Carnation 15.5 17 3. Rose 14 20 4. Gerbera 15.5 17 5. Tuberose 9.75 20 Source: Field survey and FAN Price of other cut flowers in retail market are, sunflower- Rs. 20/ stick, lily- Rs. 150/stick, orchid- Rs. 45, Sweetwillium- Rs. 60 etc. 4.1.3.5 Consumers Cut flowers are mainly used by office, bank, hotel, travels, home use, diplomatic mission, individuals in festivals and occasion. Consumption trend of cut flowers in Kathmandu according to the demand in recent years is given below, Table: Consumption trend of cut flowers Market Segments Trends for the last 2 years Officials Increasing Foreign diplomats and mission Constant Hotels Increasing Restaurants Constants Wedding Receptions Increasing (Blooming) Special occasions (Traditional, religions) Increasing Welcome, Farewell and similar other Increasing
  • 13. 11 events Birth, Death and other personal programs Increasing Source: Interviews with the Flower Retailers 4.1.4 Problems faced by Growers, Wholesaler and Retailer There are many problem faced by growers, wholesaler and retailers in cut flower business. Some of the problems are lack of loan and subsidy, lack of technical manpower, problem in transportation, lack of cold storage, load shading, low production technology etc. the problem indicated by different stake holder of cut flower business during the study are mentioned below, Problems experienced by grower:-  Disease and pest problem is the main problem.  Manpower related to floriculture and cut flowers are very few and problem related to this like disease pest are some time unsolved.  Due to the lack of advance training on cut flower production, harvesting, packaging and handling, grower are getting loss.  Lack of loan and subsidy from government.  Weak shade house and use of low technology.  Fluctuation in demand and supply is main problem in case of marketing.  Post harvest loss of cut flower. Problems experienced by wholesaler:-  Lack of space is main problem in Kathmandu. As fresh flower are bulky and required large space, it became a problem.  High rent value  Poor infrastructure  Barrier in operating and expanding the business as they have no own building. Problems of retailer:-  Loss during packaging and handling. About 20-30 sticks among 100 are seen break or bend when taken from the wholesale. It is due to lack of knowledge about the post harvest handling.  Post harvest loss occurs due to improper handling during transportation. Tight tide of cut flowers in cycle and motor cycle, cause breaking of cut flowers in retail market.  Retailers have to sell their product within a weak otherwise they accrued loss as they lack cold store.  Fluctuation in price is also problem realize by some retailer etc. 4.2 Discussion This section deals with some aspects related with cut flower business in Nepal based on the information provided by persons related with cut flower and from the review of literature.
  • 14. 12 4.2.1 Prospects of cut flower in Nepal Dictionary meaning of prospects means the potential things that may come to pass, often favorable or hope. Cut flower business in Nepal increases year by year as explain above, this increasing business also show the higher prospects of cut flower business. There are some reasons which show the prospects of cut flower in Nepal which are given below, a. Increasing demand of cut flower Demand of cut flower is increasing in the country. There may be many reasons to explain this sentence. Some reason like change in culture, change in official habits, urbanization, tourism sectors development etc might be major reasons. With the modernization, awareness and globalization there is change in culture. Now a day for formality and fashion people mostly used cut flowers as a gift. In addition to worship of god, people used flower for different ceremonies like birthday, wedding ceremonies, in death, to meet patient, reception to guest or for welcome, farewell, and other party. For the decoration of house, room, car in wedding ceremony most of cut flower demanded. Similarly with globalization, Nepalese are interested in western culture. Nepalese now days celebrate western festival like Christmas, valentine day, new year etc. In this festival, demand of cut flower is very high. Rose is consider as the symbol of love and its demand is much high in valentine day. In Christmas day along with the Christmas plant fresh cut flower are demanded for garland purpose. Along with these festival use of cut flower is increasing in national big festival like Daishain, Tihar, Chhath etc. Urbanization is one of the causes which increases the demand of cut flower. With the urbanization there is less space for natural pleasure. So, people are attracted toward fresh flower and natural things. Awareness in people is upgrading in recent year and this has positive impacts on demand of cut flower. Official habits in different office in country are going to change and people use fresh flower gift for welcome, farewell. Also fresh flower are used to decorate their office. Another reason for increasing demand may be due to expanding tourism sectors including hotels etc. Hotels are the constant and regular consumer of cut flower. This increasing demand of cut flower shows the ample scope for cut flower business in country. Still the demand of domestic market is not fulfill by the domestic product. Many hotels and traders import cut flower from India and other country. If domestic production is high import will be substituted. b. High Agro-climatic diversity and biodiversity Nepal can utilize the higher agro-ecological diversity for the production of cut flower. Nepal’s climate and abundant sunlight, appropriate soil and adequate quantities of water are some benefits for cut flower production. All types of flower can be produce in the country. Production is possible all round the year. For instance gladiolus can be produced in summer season in Kathmandu while in Terai it is produced in winter. So gladiolus can be produced all round the year in country. This shows the higher prospects of cut flower business.
  • 15. 13 c. Government supports for floriculture Floriculture Promotion Policy 2069, which was approved by Government of Nepal in 2069- 8-29. The main goal of this policy is to increase production of flower and ornamental produce and expanding floriculture business for creating employment opportunities, imports substitution and export promotion by utilizing agro-biodiversity. This policy accepts floriculture business as other business. So, governmental support in floriculture business is increasing. This policy encourages foreign investment in Nepal in floriculture business. d. Utilization of cheap labor Comparatively labor cost is low in Nepal as compared to other developed country. This can be one opportunity for foreigner to invest in Nepal as well for Nepalese investor. Now expert believe that the production focus has moved from traditional growers to countries where the climate are better and labor cost is lower. For instance, the Netherland has already sifted attention from flower production to trade and new center of flower production are Kenya, Colombia, Ethiopia, India etc. We can attract them in Nepal, for investment. e. Export potentialities Nepal is a 147th member of WTO since 2004. As a member of WTO it has much opportunity in world market for export. By the utilization of abundant diversity and modern technology Nepal can compete in world market. 4.2.2 Export of cut flowers Though, floriculture business expanding in the country it could not export cut flower in foreign markets. The demand of cut flower in golf country like Dubai, UAE, Malaysia and Bangladesh is high. Nepal could not fulfill their demand. Even the country could not fulfill the domestic demand in high demand period; it show further challenging for export. For better export of cut flower four factors are realized by entrepreneur of cut flower business. They are,  Quality  Quantity  Continuity or regularity  price They are high quality, large quantity, regularity or continuity and competitive price. Quality is a first pre-requisite for export. Cut flowers should meet the international standards in grading, packing and packaging, sanitary and phytosanitary measures etc. These four requirements should meet at once for sustainable export. Foreigner demand high quality product which meet the international standards, high volume which fulfill the demand, with
  • 16. 14 regularity in competitive price. In present context it is very difficult to meet these entire requirements in Nepal. Nepalese floriculture industry is running in low technology with low investment. Even if we meet one criterion, another criteria becomes unfavorable. Quality can meet but quantity will less and costs will high which could not compete in international market. If producer only focused on quantity; quality and continuity will be unfavorable. It is most challenging to meet these entire four requirements at a time. So, Nepal is failed to export in international market. For the international market, ornamental plants require facility to grow up on specific media (out of soil). Nepalese growers have not so far practiced growing up in such media. Moreover, entering to international market, need adequate knowledge on technicalities and rules, regulations, standards and sanitary and phytosanitary (SPS) requirements. Nepalese entrepreneurs have to be conscious in adopting scientific post-harvest practices that are crucial to retain flowers and other products fresh for a longer time. In particular, international market requires cut flowers harvesting at specific stages and have to be fed by 10 percent sucrose in bacteria free water for 12 hours. After this flowers should be kept in cooling storage for minimum of 20 hours in a temperature of 2 to 4o C and 75 to 80 percent RH. Even the grading and packaging should be done in cooling area. Delivery van, waiting lounge in airport and storage area and the air cargo boxes also need the specified cooling system. Without these proper procedures, products are not accepted in the international market and this could be one of the most challenging issues for Nepal, in its attempt to target overseas markets. 4.2.3 Requirement for the promotion of cut flower business Cut flower business is emerging business in Nepal but still it required some condition for success. Some requirements for production to marketing are realized by entrepreneur. According to Liemt (2000), successfully growing flowers requires: 1. Good physical conditions: high light intensity, abundant water, clean soil (or the use of hydroponics), good climate. 2. Appropriate seeds and planting material. 3. Capital for investments and working capital. 4. Productive and skilled labour. 5. Expertise in growing techniques. 6. Good management and organizations. 7. Pesticides and other chemicals. 8. Energy for heating. 9. Infrastructure.
  • 17. 15 10. Quality consciousness all along the production and post-harvest chain. Cut flowers have a highly perishable nature and the deterioration starts at the moment of harvesting. These are some requirement related to the production but for the market potentiality further items are required. Liemt listed some items as given below, 11. Adequate logistic structure for exporting. 12. Adequate supply chain infrastructure, including post-harvest treatments and a network of supplying industry. 13. Knowledge of the destination markets, especially the consumers’ preferences and their dynamics. Emotion is one of the main attributes of flowers. Fashion trends or crazes are of importance for, for instance, the type and colour of flowers. 14. Knowledge of strengths and weaknesses compared to the competitors. 15. Knowledge infrastructure has to be innovative and responsive to the requirements of the destination markets. 16. Meeting the international trade standards. For propagation inputs (nursery stocks or seeds) acceptance of the Union International pour la Protection des obtentions Vegetables (UPOV) regulations is highly desirable. An adequate phytosanitary control system in the production country is necessary for exporting. For the promotion of cut flower business in Nepal, entrepreneurs demanded following items,  Loan and subsidy  Research on breeding, greenhouse technique, post harvest handling, growing technique and economics and marketing  Effective extension, education and training  Effective implementation of floriculture promotion policy  Cold storage in TIA(Tribhuvan International Airport)  Infrastructure like road, electricity, irrigation facility For the fulfillment of these requirements government and private sectors should work together. 5. Conclusion For the development of floriculture industry and cut flower promotion government should be there. The role of research and extension can work closely with private sector as so as to improve the product and make it more competitive. Nepal has a tremendous potentiality and
  • 18. 16 possibility for cut flower business. Floriculture business is expanding but still failed to export in foreign market. Main cause for failure may be Cut flower industry is running on low production technology and should go for high tech. From government site effective research and extension are needed. Government and private sectors should work closely for the promotion of floriculture. References: FAN. 2013. Floriculture 2nd International Flora Expo 2014, Souvenir. Floriculture Association Nepal, Kathmandu. Floriculture Association Nepal (FAN). 2013. Short Study Packaging and Handling Method of Cut Flowers Using Different Techniques, Final Report. Floriculture Association Nepal/ Project for Agriculture Commercialization and Trade(PACT), Kathmandu, Nepal. Gauchan, D. P.; A. R. Pokherel; M. Pratap & P. Lama. 2009. Current status of cut flower business in Nepal. Kathmandu university journal of science, engineering and Technology.5:87-98 OZY Magazine. 2014. Global flower trade. OZY Magazine. Available In: www.ozy.com/acumen/global-flower-trade/6438.article. Retrieved on: 2014/4/11 Pun, U. 2013. Two Decades of Floriculture Journey in Nepal. In: Souvenir on Floriculture 2nd International Flora Expo 2014. Floriculture Association Nepal (FAN), Kathmandu, Nepal. Pp.32-35 Wijanands, J. 2005. Sustainable International Network in the Floriculture Industry, Bridging Emperical finding and theoretical approach. Scriptia Horticulturae, Number 2. International Society for Horticultural Science Wikipedia. 2014. Cut flower. Retrived April 23, 2014, from www.wikepedia.org/wiki/cut- flowers Shrestha, E., J.B. Tamang, L.N. Gaire, and U. K. Pun. 2009. What is the Buying behavior of Nepalese consumers on cut flowers or its products? In: Souvenir on floriculture Trade Fair-2009. Floriculture Association Nepal (FAN), Kathmandu, Nepal. Pp.1-3 Oli, P. 2004. Post harvest system for cut flower. In: Souvenir on floriculture Trade fair-2004. Floriculture Association Nepal (FAN), Kathmandu, Nepal. Pp.1-3.
  • 19. Annex Cut flower growers (Member of FAN) S.N. Name of nursery Owner Address 1. Parijat Nursery Rajendra Rai Barikhel Godawari, Lalitpur, Nepal 2. Honkey Rai & Sons Honkey Rai Kathmandu, Nepal 3. The Standard Nursery Suresh Bhakta Shrestha Sai Marg Basbari, Kathmandu 4. Flora Nepal Pvt. Ltd Chandra Kumar Golchha Golchha House, Ganabal, Kathmandu 5. Everest Floriculture Pvt. Ltd. Madhu Sudan Achraya Maitighar, Kathmandu 6. Pakhrin Nursery Deepak Pakhrin Meghauli, Chitwan 7. - Man Dhoj Thapa Chhalnakhel V.D.C.-6, Kathmandu 8. Gai Goath Farm Minerwa Bista Kathmandu, Nepal 9. Rudyn Agri Flora Nepal pvt. Ltd. Naresh Pradhan Jamsikhel, Lalitpur 10. New B.S. Flower Nursery Mohan Bikram Silwal Bunagamati-9, Lalitpur, Nepal 11. - Narayan Sharma Ratnanagar-8, Chitwan, Nepal 12. Annapurna Agriculture and Research Center Lok Nath Gaire Bhuwanbast, Chitwan 13. Women in Floriculture Sabanam Shrestha Kamaladi, Kathmandu 14. Adrasha Nursery Ram Badal Shah Ramananda chowk, Janakpur 15. Flora Friends Raju Shahi Chabahil, Kathmandu 16. Green Plants Farm Tapas Thapa Lokanthali, Bhaktapur 17. Green Orchid Nursery Deepak Chandra Rai Godabari, Lalitpur 18. Micro Plants Nepal Pvt. Ltd. Yadav karmacharya Sanepa, Lalitpur 19. Kumari Flora Pvt. Ltd. Prabindra Maharjan Paknajol, Kathmandu 20. ---- Tanka Bahadur Rai Bhaisepati Saibu-1, Lalitpur 21. Binayak Flora Farm Nanda Lal Shrestha Balaju, Kathmandu 22. Chitwan Floriculture and Research Center Neelam Shrestha Bharatpur, Chitwan 23. Cut Flower Grower Kabiram Basnet Sipadol VDC-2, Bhaktapur 24. SIAM Floritech (Nepal) Mandir Shrestha Kathmandu, Nepal 25. Bagalamukhi Nursery Sagar Lal Mulmi Jawalakhel, Lalitpur 26. Bagmati Flora(p) Ltd. Sanjeeb Karki Kathmandu Plaza, Kamaladi, Kathmandu 27. Suman Brothers and Sons Uma Shankar Pokhrel Jhamsikhel, Lalitpur 28. Scott Sunrise Orchids and Gayatri Thapa Maharangunj, Kathmandu
  • 20. Plant 29. Orchid Treasure Bharatkanta Rai Godawari, Lalitpur 30. DJ’s Orchid Nursery Deepa Rai Godawari Badhikhel-9, Lalitpur 31. ----------- Kamal Bahadur Bhandari Gorkha, Nepal 32. Himalayan Flora Enterprises Pvt. Ltd. Dr. Umed Pun Hattiban, Lalitpur 33. City Plant Venue Jolita Shakya Babarmahal, Kathmandu 34. Unique Flora Farm Voj Raj Timilsina Ugratara-8, Kavre 35. Ever green Nursery Hari Ram Shrestha Godawari-1, Lalitpur 36. Gardeb Environment Service Center Pvt. Ltd. Khem Raj Paudel Dhumbarahi, Kathmandu 37. Ambar Nursery Kumar Bahadur K.C. Lajimpat, Kathmandu 38. Horizon Nursery Birendra bahadur Shrestha Dhulikhel-9, Kavre 39. Chhage Horticulture and Floriculture Center Puskal Thakuri Shree Antu-9, Ilam 40. Kalpana Flora Farm Chandra Kumar Thing Tamang Sitapaila, Kathmandu 41. Abloom Flora Farm Lok Nath Gaire Gunjanagar, Chitwan 42. Morning Glori Nursery Keshav Raj Sharma Mahadevsthan, Kathmandu 43. Gerbera FloricultureJ(P) ltd. Atmaram Neupane Godamchour-8, Lalitpur 44. Rai’s Orchid Nursery Kabi Raj Rai Lalitpur, Nepal 44. Sky Floriculture Khemraj Chudali Kamalbinayak, Bhaktapur 45. Chameli Nursery Laxmi Pradhan Pulchowk, Lalitpur 46. Ichangu Narayan Nursery Dipesh Shrestha Ichangunarayan-1, Kathmandu 47. Lovely pets Anju Adhikari Thaiba-1, Lalitpur 48. Ashmin Flora Farm Rekha Maharjan Dallu Awash, Swoyambhu, Kathmandu 49. Evergreen Flora Farm Naniram Raut Mahendra jyoti-2, Kavre 50. J.S. Nursery Suhil Khadka Gamcha, Dadhikot, Bhaktapur 51. Mahendea Agro Flower Shantaram Kauyashtha Suryabinayak, Bhaktapur 52. ------------- Hem Bahadur Sunwar Ghattekulo, Lalitpur 53. A.S. Cut Flower Nursery Anjana Acharya Ramkot-1, Kathmandu 54. Cut Flower Grower Kamal Subba Godawari-2, Lalitpur 55. Global Flora Pvt. Ltd. Hiramani Sharma Tripureswor, Kathmandu 56. Sunrise Agri Tech Farm Bishwo Mani Pokhrel Kamalbinayak, Bhaktapur 57. Prabab Agri Farm Prajwal Chaguthi Katunje-8, Bhaktapur 58. Mega Agrotech (P) Ltd. Nanda Raj Pokhrel Bageswari-3, Bhaktapur 59. Byabasayik Phool Kheti Samuha Surendra Mohan Sharma Thaiba, Lalitpur 60. Manakamana Agtigulture Farm Raju Sapkota Ichangu Narayan-1, Kathmandu
  • 21. 61. United Flora Pvt. Ltd. Lok Nath Gaire Tripureswor, Kathmandu 62. Flora Farm Roshani Maharjan Basantapur Kathmandu-32, Nepal 63. Ritu Agro Amrit Khadka Bhimsentar, Gagalphedi-5, Kathmandu 64. Shreejana Cut Flower Nursery Pandap Shrestha Ichangu Narayan, Kathmandu 65. Shanati Flower Firm Gyan Krishna Shrestha Dadhikot-9, Bhaktapur 66. Tribidhya Floriculture & Farming Chandar Bahadur Tondon Chhretri Sangla VDC-9, Kathmandu 67. Sasita’s Agri Farm Sita Bantha Manandhar Kamalbinayak, Bhaktapur 68. Naba Sewa nursery Dasharam Sunuwar Godawari-1, Lalitpur 69. Parijat Flora Urgen Lama Badikhel-9, Lalitpur 69. Ichangunarayan Agriculture Farm Umesh Lama Ichangunarayan, Kathmandu 70. Rakchha Flora Farm Biren tamang Kathmandu, Nepal 71. RNA Flora Farm Rudra Bahadur Khadka Janagal Ugratara-8, Kavre 72. Prem pushpa Nursery Keshar Sunuwar Badikhel-1, Lalitpur List of wholesalers I. United Flora Pvt. Ltd, Tripureswor, Kathmandu II. Global Flora Pvt. Ltd., Tripureswor, Kathmandu III. Flora Nepal Pvt. Ltd., Kathmandu IV. Bagmatiflora Pvt. Ltd., Kathmandu Plaza, Kathmandu V. Shree Suppliers, Kathmandu VI. OASIS continental, Kathmandu.