May , 2022, Volume : 3 Article : 10
Floriculture business in India: Challenges and opportunities
Author : Manohar, B. H.
ABSTRACT
The floriculture sector is quickly becoming one of horticulture`s most promising segments. Cut flowers, loose flowers, cut foliage or cut greens, and potted plants are all examples of floriculture in a range of climates. Domestic flower preferences have shifted toward western culture in recent years, and increased demand in international markets, particularly the United States, the Netherlands, the United Kingdom, Germany, the United Arab Emirates, Canada, Japan, Italy, Singapore, and Australia, has created a significant opportunity for India to export floriculture products. In terms of quantity and value, the average export of floriculture products from 2016-17 to 2020-21 is 1,91,154.00 quintals and Rs. 548.13 crores, respectively. This opens up the possibility of establishing and expanding the floriculture industry on a worldwide scale.
Keywords: Floriculture, agribusiness, supply chain, export potential
In the current context, the floriculture business in India has emerged as one of the most popular startup ideas. The Indian economy has suffered a severe dip as a result of the COVID-19 outbreak, and many employees have lost their employment. Still, a large number of unemployed youths are looking for any unique company concept that will provide them with a source of income. This type of business has a lot of possibilities for survival, growth, and proving its worth in a competitive climate. Floriculture is a fantastic opportunity for anyone who love gardening and want to put their heart and soul into it. It would be sufficient to start this firm anyplace in India if you had a basic understanding of floriculture and other basic business concepts. Before learning more about the floriculture industry in India, one must first understand the fundamental ideas of floriculture, which include the definition of floriculture. Floriculture is a branch of ornamental horticulture that studies the cultivation of blooming plants, decorative plants and dried ornamentals, among other things... Annual, biennial, and perennial ornamentals such as cacti and other succulents, trees, shrubs, bromeliads, lawn, bamboos, climbers, bulbous, orchids, foliage, pot and house plants, palms, cycads, cut and loose flowers seed, ornamental bulb production, fillers, ferns, dried flowers or plant parts and other value-added products such as edible pigments, extraction of essential oils have all been groomed as money-making.
Indian Market
By 2026, it is expected that the Indian floriculture market will be worth Rs. 661 billion. Floriculture has become one of the most important trades in Indian agriculture, due to a rapid increase in demand for cut and loose flowers. India`s metropolises account for a considerable portion of the country`s flower consumers. Flowers are purchased for a variety of occasions, including festivals, anniversaries, Valentine`s Day, birthdays, farewell parties, marriages, ceremonies and so on... As urbanization and the influence of western culture gain much-needed traction, flower consumption is anticipated to climb much more in the future years. While exports remain a major motivator for growers, demand for flowers within India is rapidly increasing, particularly in urban areas. A large amount of flower consumption is bound to occur in industrial uses, aside from aesthetic and decorative motives. The consumption of floriculture products is expected to rise, encouraging floriculture business enthusiasts to come out and start their own floriculture business in India.
Types of ornamentals
1. Cut flowers: These are useful in fabricating bouquet as well as floral baskets as corsages, decoration purposes and for the arrangement of flowers. Cut flower crops that are in demand are rose, carnation, orchid, lilium, chrysanthemum, narcissus, heliconia, bird of paradise (BOP), tulip, etc…
2. Loose Flowers: These are the flowers that are picked from plants without stalks beneath the calyx are known as loose flowers can be used to make veni, rangoli, garlands, bracelets, garden displays, decorative and religious offerings. Loose flowers include rose, jasmine, chrysanthemum, marigold, crossandra, barleria, tuberose, etc…
3. Cut foliages: These are in high demand because of their appealing form, colour and freshness and are used as fillers in flower arrangements along with cut flowers, because of their aesthetic value. Some of the well-known cut greens are thuja, cupressus, asparagus, ferns, eucalyptus etc…
4. Potted plants: Potted plants can simply be transferred to locations that need to be planted right away. The industry of potted plants is thriving. They might be flowering or have decorative leaves. Indoor potted plants are utilized for numerous functions and events in residences, business complexes, corporate offices, offices, malls, hotels, and other locations. Some examples of potted plants are aglaonema, azalea, chlorophytum, money plant, croton, begonia, dieffenbachia, ficus, ferns, etc.
Table 1 shows the exports of floriculture products from India by year. Data on quantity export from 2010-11 to 2015-16 is not available. The CAGR for quantity evaluated for just the last five years from 2016-17 to 2020-21, indicates a negative growth rate of -8.49 per cent. The CAGR of the value of floriculture exports is provided in the same table, indicating that it grew at a positive pace over the period. Despite a negative growth rate in terms of quantity, India had a 5.78 percent increase in value growth. This demonstrates the increased demand for floriculture products on the global market. The table 2 represents the top ten destinations of floriculture products from India, in which the data pertaining from 2016-17 to 2020-21. The table shows the average quantity and value of exports based on this average in last five years the table reveals that the top destination for floriculture products for India is USA of Rs. 129.81 crores, followed by Netherland (77.87 crores), UK (48.14 crores), Germany (42.33 crores), UAE (32.79 crores), Canada (21.14 crores), Japan (16.69 crores), Italy (16.46 crores), Singapore (13.88 crores) and Australia (12.63 crores). The percentage share of export of this above mentioned top ten countries are 68.93 per cent and 75.12 per cent in terms of quantity and value respectively.
Best way to start a floriculture business in India
Here are some of the following points needs to remember:
1. Develop business plan: Because it is the business`s cornerstone, appropriate planning should be required. Flowers are particularly perishable in nature, necessitating the purchase of cooling equipment. Consider how much labor will be required to produce and deliver the floral arrangement. Before launching a floriculture business in India, make sure you have a well-thought-out plan. Prepare an estimate of the capital required for the floriculture industry in India. In addition, to put the finishing touches on your business plan, look into issues like the floral delivery platform. The staff requirements that you would have to prepare, as well as the flower arrangement ideas and deliveries that you would have to make.
2. Pursue innovative ideas: Flowers are no longer limited to flower bouquets in recent years. There are several options available, including flower selection, centrepieces, floral décor for weddings, and full-fledged gardening contracts. Although there is a lot of room for growth in this type of business, you must also consider the capital and staff requirements. Always strive to come up with new and inventive ideas to propel your company to new heights.
3. Opt for the flowers in great demand: You should select flowers that are in high demand in the Indian market. You must grow seasonal flowers in your garden at any costs if you want to enjoy them. You`d have to segregate them in order to help your clients make an informed decision and get the best value for their money.
4. Costing for floriculture business: In order to commence floriculture business in India one must require initial capital. Awareness of the domestic and international price is must and should. One should have the ability to supply the flowers required and in so situations he also should withstand the losses also.
5. Licenses and Permits: The Agricultural and Processed Food Products Export Development Authority (APEDA) offers permits for floriculture and floriculture products for export promotion and development. In addition, GST registration is necessary in India`s floriculture industry, and a trade licence can be obtained from the state government.
Challenges
- One of the most serious difficulties is that the use of pesticides in agriculture endangers the ecosystem.
- Quality requirements are high internationally, and meeting them for foreign markets is a difficult task.
- There are very few cold storage facilities available at airports and farms.
- Indian farms are modest in compared to those in other countries; economies of scale are limited.
- The majority of farmers rely on imported seeds from foreign nations, resulting in high costs.
Opportunities
- The demand for flowers is expanding at a quick rate as the standard of living rises change the socio-economic characteristics in India.
- The rapid increase in domestic demand there is increase in exports in exporting season.
- In metropolitan cities and industrial townships the buyers of different varieties of flowers for institutional, star hotels, corporate houses, churches, temples, mosques, hospitals, etc…
- In local, national and international demand exceeds supply because industrialized countries rely heavily on imports is an opportunity.
- The majorities of major flower-producing countries are now industrialized and have a tiny surface area.
Conclusion
The floriculture industry in India is an excellent choice for individuals who are captivated by the allure of flowers. In the current environment, it`s a business with a lot of promise. It is the ideal time to establish a floriculture firm, particularly in supply chain management. Effective supply chain management will lead to business success.
References
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Floriculture business in India Challenges and opportunities_compressed.pdf
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