NEW DELHI (Commodity Online): Global floriculture industry is likely to cross Rs 9 lakh crore mark by 2015 from the current level of about Rs 6 lakh crore and is growing at a ompounded annual growth rate (CAGR) of 15%, while Indian floriculture industry will cross Rs 8,000 crore mark, according to a study titled, ‘Indian Floriculture Industry: The Way Ahead’ released by The Associated Chamber of Commerce and Industry of India (ASSOCHAM).
India’s floriculture industry is growing at a compounded annual growth rate of about 30%.
According to the report, currently, the floriculture industry in India is poised at about Rs 3,700 crore with a share of a meagre 0.61 per cent in the global floriculture industry which is likely to reach 0.89 per cent by 2015.
Meanwhile, on the back of Valentines’ Day, the demand for rose from tier II and III cities apart from urban centres is likely to spur as price of export quality cut rose is likely to quadruple from its current average ruling price of about Rs 15 to Rs 20 per stem.
With a share of about 65% rose flower industry in India accounts for over Rs 2,400 crore of the overall floriculture industry and rose accounts for 75 per cent of the global floriculture industry.
Demand for roses has spiralled upwards by over 25 per cent in domestic and by about 30 per cent in international markets as the V-Day draws closer, said over 55 per cent of all the respondents.
Fall in the value of rupee against major currencies is the prime reason behind this upsurge in demand for roses in international markets of Australia, Germany, Greece, Italy, New Zealand, the Netherlands, the United States, the United Kingdom and other countries of Europe and the Middle East.
While, growing demand for roses from cities like Ahmedabad, Chandigarh, Hyderabad, Surat, Kanpur, Lucknow, Patna among others is driving the high demand for roses in the domestic circuit.
Besides, majority of flower growers also said they are hoping for about 30% rise in terms of revenue during February alone with a turnover of about Rs 10 crore.
Labour dogs and rising input costs, high fuel and freight costs apart from sky-rocketing prices of fertilisers tough competition from major rose producing countries like Israel, Kenya and Ethiopia are constantly hurting the margins of the domestic rose industry, said about 70 per cent of respondents.
About 40 crore cut roses are grown across India every year and Karnataka alone accounts for about 75% followed by Maharashtra, Tamil Nadu, Bihar, West Bengal, Uttar Pradesh, Haryana, Punjab, Jammu and Kashmir, Andhra Pradesh and Madhya Pradesh, said ASSOCHAM.
Many rose cultivators and growers said they are experimenting by growing genetically modified roses thereby injecting roses with different types of genes to help them fight diseases, fungal pathogens after they have been picked up and extend their ‘vase life’ by making roses live longer.
