Teething problems of Indian floriculture industry.

The Indian floriculture industry is worried about the present state of affairs. In addition to the usual domestic infrastructure and marketing-related problems, the price realization this year for Indian flowers touched a new low, hit by some unusual international conditions.

Off take is much lower than usual and competition is fierce. The severe winter in the consuming countries resulted in fewer people going out on the streets to buy flowers, according to industry sources.

A general feeling of depression runs through the industry. Three years after the industry started its operations, the units have still to contend with various infrastructure and marketing problems. The air freight charges, already high, have been hiked again. Most of the carriers do not maintain the cold chain, which is absolutely essential if the flowers are to remain fresh until they reach their destination.

The industry has listed the kind of support required from the Government creating adequate infrastructure, rescheduling the re-payment schedules to financial institutions, increasing the soft loan assistance of the National Horticultural Board, providing insurance cover for perishables, among others. National Bank for Agriculture and Rural Development (NABARD), the Indian apex bank for agriculture development and finance, in its "Strategic Action Plan" addressing the State and Union Governments, highlights the problems faced by entrepreneurs in these non-traditional farming sectors. It makes out a special case for setting up an international airport in Bangalore, besides the proposed horticulture and floriculture board. It has identified over 20 problem areas to be reviewed, some through suitable policy decisions.

The recommendations include duty and freight relief, timely flight connections, infrastructure facilities, research support, and also the setting up of a body to review and support the growing sector. At the state government level, it has suggested that the projects be exempted from power cuts, tariff variations, purchase and sales tax.

Along with this, the Central Government has been urged to take up the heavy 15 per cent import duty that the European Community imposes only on flowers from India, while those from Israel, Colombia and African nations are exempt. The airlines should operate sufficient morning flights to Mumbai, from where the commodities are flown out, to meet the schedules for the perishable goods, it has recommended.

The floriculture industry's fear that airline companies, which carry flowers to Holland, are operating in a cartel has been reinforced by the ongoing battle between Air France and Bangalore-based companies. The silver lining in the entire affair is that all the companies have joined together. The individual companies in the fledgling industry are too small to be of consequence and ever since the formation of the SIFA, they have been working together to transport cargo and even market flowers abroad.

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