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  • 1. Floriculture business in the Nilgiris - an economic analysis T.M. Gajanana, M. Sudha, D. Sreenivasa Murthy and V. Dakshinamoorthy IIHR, Bangalore
  • 2. Area and Production of flower crops 6,93,401 (27618) 126235 2005-06 3,65,685 (6121.523) 65,696 1997-98 2,32,536.32 (5122.75) 53,212 1993-94 5,09,193.60 (6806) 88,607 1999-00 3,33,758.79 (5368.4) 81,923 1995-96 1,48,603 (22) 30,909 1991-92 Production (t) (lakh No) Area (ha) Year
  • 3. Major flower growing states These five states account for about 71% area under flowers in the country. 6.10 West Bengal 8.09 Maharashtra 11.51 Andhra Pradesh 22.53 Karnataka 29.18 Tamil Nadu % area under flowers State
  • 4. Floriculture Business
    • Non-traditional floriculture/Hi-tech floriculture
    • (Modern/Cut flowers):
    • The flowers are usually harvested with a long stem which are used for vase purposes, office arrangements, bouquets, hand posy and for gift purposes .
    • Modern/Cut flowers :
    • Gladioli
    • hi-tech Rose
    • Carnation
    • Gerbera
    • Orchids
    • Anthuriums
    • Lilium
  • 5. Trend in Export of Floricultural products (Rs. Millions) * Compound Growth Rate; The total export value for the year 2005-06 is Rs. 2994 million. 29.47 1535 882.43 308.37 144.54 Total 11.93 25 29.81 11.83 12.06 Bulbs, Tubers etc 9.45 - 48.38 10.35 23.99 Dried plants -12.17 15 33.73 60.43 40.15 Live plants 33.55 940 581.10 195.78 64.35 Dried flowers 64.03 557 189.41 29.98 3.99 Cut flowers CGR* (%) 2001-02 1997-98 1994-95 1991-92 Particulars
  • 6. Export of Floriculture products 1996-97 2001-02 1991-92
  • 7. Floriculture business in the Nilgiris, TN
    • Genesis
    • Established comparative and competitive advantage for Tea
    • Agro climatic potential for a variety of flower crops– untapped
    • Changing global order demands crop diversification?
    • Objectives
    • To examine the present production and marketing opportunities for floricultural crops in Nilgiris district and
    • To estimate the market potential and there of the marketing strategies for boosting floriculture business in the district.
  • 8. Focus Area and crops
    • Focus area
    • Udhagai (42%) Coonoor (19.87%) and Gudalur (32.9%) – production centres
    • Bangalore and Coimbatore – Destination centres
    • Focus crops
    • Carnation (28.98%), bird of paradise (22.3%), anthurium (15.55%), lilium (11.88%), rose (10.8%), alstroemeria (5.19%) and gerbera (2.48%)
  • 9. Methodology
    • Survey and Rapid Appraisal
    • Detailed costs, returns and profit analysis of selected crops
    • Market survey and analysis
    • Estimation of demand and supply
    • Market potential estimation
  • 10. Study area
    • HADP, Nilgiris
  • 11. Analytical Tools- Market Supply estimation
    • Market supply or production of cut flowers
    • Sj = Qj x Aj
    • Where
    • Sj = Total production of jth cut flower crop per annum in lakh numbers
    • Qj = Yield per hectare of jth cut flower
    • in lakh numbers
    • Aj = Area under jth flower crop in hectares
  • 12. Market demand estimation
    • Dj = {∑Qij(WS) } + Qj(RL)
    • i = 1 to n markets
    • Where
    • Dj = Demand for jth cut flower crop per
    • annum in lakh numbers
    • Qij (WS)= Quantity demanded of jth flower
    • crop per annum by the wholesalers in the
    • ith market in lakh numbers
    • Qj(RL) = Quantity demanded of jth flower crop per
    • annum by the retailers in the local market
    • in lakh numbers
  • 13. Comparative Economics of Flowers grown in Ooty (Rs/500 m 2 ) 0.10 -0.42 1.68 0.23 1.43 NR 1.05 - 1.37 1.07 2.09 BCR 1.90 1.90 17.10 3.28 2.73 Price (Rs/stem) 1.80 2.32 15.42 3.05 1.30 Cost of Production (Rs/stem) 52500 52500 80000 48960 144000 Yield (No) 5154 -22162 454586 11083 205468 NR 99750 99750 1688000 160560 393120 GR 94586 121912 1233414 149477 187652 Costs Rose (With subsidy) Rose (without subsidy) Lilium Gerbera Carnation Items
  • 14. Margin of wholesaler in cut flower trade 5.00(50%) 15.00 - 10.00 Star Hotels Bird of paradise 1.00(25%) 4.00 3.00 Bangalore Gerbera 1.00(33.3%) 4.00 0.39 3.00 Kolkata 0.40(16%) 3.00 0.10 2.50 Coimbatore 0.36(12%) 3.50 0.14 3.00 Bangalore 2.00(67%) 5.00 - 3.00 Star Hotels Carnation wholesaler’s margin Selling price Marketing cost Purchase price Flower
  • 15. Margin of retailer in cut flower sale at Ooty 1.84(46%) 6.00 0.16 4.00 Gladioli 1.84(46%) 6.00 0.16 4.00 Rose 1.00(67%) 2.50 - 1.50 Alstroemeria 2.00(67%) 5.00 - 3.00 Carnation Retailer’s margin Selling price Marketing cost Purchase price Flower
  • 16. Margin of retailer in cut flower sale in Coimbatore 500 (100%) 1000.00 - 500.00 Arrangement 150(100%) 300.00 - 150.00 Bouquet 75(60%) 200.00 - 125.00 Bouquet 25.00(50%) 75.00 - 50.00 Bouquets 0.40(40%) 1.50 0.10 1.00 Alstroemeria 0.84(28%) 4.00 0.16 3.00 Carnation Retailer’s margin Selling price Marketing cost Purchase price Flower
  • 17. Estimated Supply and Demand for flowers (Lakh stems) 0.62 (27%) 2.94 2.32 Bird of Paradise 0.25 (4%) 5.85 5.60 Anthurium 3.65 (10%) 39.65 36.00 Alstromeria - * 31.25 Rose 0.81 (1.63%) 50.31 49.50 Lilium 11.92 (118%) 21.98 10.06 Gerbera 36.86 (18%) 238.01 201.15 Carnation Excess Demand Demand Annual supply Cut flower
  • 18. Export of cut flowers from India Japan, (72) Netherlands(5), UK(2), USA(3), Australia(2), UAE(3), Switzerland(1), Italy(1),France(1) 7413.07 2005-06 6 Japan (40), Netherlands (19),UAE(5), Australia(5), Singapore (4), Italy(4) 3611.90 2004-05 5 Japan(49),Netherlands(7), France(7), Germany(4), Australia(3) 4323.38 2002-03 4 Japan(23), Netherlands(19), Switzerland(8), Italy(8), USA(6),Singapore(5), UAE(5) 3909.68 2000-01 3 Japan(33), Netherlands(19), Singapore(6), Australia(6), USA(6), UK(6), UAE(4), Switzerland(3) 2511.66 1998-99 3 Japan(39), Netherlands(28), UK(8), USA(8), Germany(7), Singapore(3) 1808.15 1996-97 1 Major importing countries Value (Rs.lakh) Year Sl.No.
  • 19. Recent developments in marketing of cut flowers
    • Contract price – carnation, gerbera, lilium, rose, alstromeria
    • Infrastructure park – cold storage, packing etc.
    • Value addition – bouquets, pot arrangements, office arrangements,
    • E-marketing – dew drops - online marketing
    • IFAB – Online marketing of flowers
    • AEZ – Coorg in Karnataka for Anthuriums, Ooty in TN for carnation, gerbera, Uttaranchal for Gladiolus
  • 20. Constraints in production and marketing of cut flowers in Nilgiris
    • Quality planting material – bulbs to be imported.
    • Flower cultivation is capital intensive – lack of technical knowledge
    • Problems of pests and diseases - botrytis
    • Local markets absorb small quantity – dependence on intermediaries for external demand
    • Credit sales of flowers – payment default
    • Absence of specialized packing and transport –wastage of flowers
    • Export of Ooty flowers is not yet a reality
  • 21. Existing Institutional support for cut flowers in Nilgiris
    • Department of Horticulture, Government of Tamil Nadu
    • Hill Area Development Programme (HADP) and Central Sector Schemes through Tamil Nadu Agricultural University, Ooty
    • UPASI Krishi Vigyana Kendra
    • Nilgiris Integrated Flori-tech Company Ltd. (NIFCO) - SHG, women
  • 22. Future strategy
    • Identifying regional specialization pockets
    • Expansion of area under floricultural crops
    • Supply of quality planting materials by opening up of public/private plant material multiplication centre at Ooty itself
    • Training growers on production technology and drying of flowers
    • Exploring the possibilities of opening up an auction centre for cut flowers in Ooty
  • 23. Developing working models that integrate production with marketing
    • Model 1: Integrating production with marketing
    • Model II : Integrated production with marketing and value addition-Establishing a model ‘Flower boutique’
    • Establishing Floriculture Infrastructure Parks (FIP)
    • Setting up of e-commerce in cut flower trade
  • 24. Polyhouse grown flowers
  • 25. Flower packing and arrangements
  • 26. ACKNOWLEDGEMENTS
    • Sri. S.J. Chiru, IAS, Project Director, HADP, Udhagai
    • Dr S. D. Shikhamany, Director, IIHR, Bangalore
    • Mr. Shivan, NIFCO Flowers
    • Chairman, CPC, IIHR, Bangalore
    • Department of Horticulture, Udhagamandalam and Gudalur
    • Producers of cut flowers, Nilgiris district
    • Flower Traders in Ooty, Bangalore and Coimbatore
  • 27.
    • Thank You