Why Kenya beats India in flower business?

ToI 8/5/09
 New Delhi: Talk to any flower seller and you are likely to hear an oft-repeated phrase about the nature of the business: Bika to phool, nahin to dhool (if it sells, it’s a flower; if not, it’s just dust). That says a lot about the perishable nature of the flower trade.
 Take this piece of earthy wisdom in a larger context, and it aptly describes the fickle fortunes of the country’s nascent floriculture export sector — not long ago, the government had raised visions of India emerging as a flower power in the world, but those hopes, like unsold flowers, are turning into dust. Some years ago, government announced a target of Rs 1,000 crore for India’s floriculture exports by 2010. In the fiscal year 2006-07, our exports reached Rs 649.6 crore. But since then, they have been slipping. In 2007-08, when world economy was still galloping, India’s flower exports plummeted 49% to Rs 332 crore. In 2008-09, exporters expect to see a further 30% decline. Currently, India accounts for 0.65% of the $11 billion global flower trade.
 According to the Agricultural & Processed Food Products Export Promotion Authority (Apeda), a commerce ministry body, the revised floriculture export target for 2009-10 is Rs 375 crore — a far cry from initial target of Rs 1,000 crore.
 Now compare that with Kenya, a poorer country but which is the top supplier to Dutch flower auctions — the world’s flower centre — accounting for 37.8% of supplies there in 2008. Despite the general economic slump, it managed to earn more than 250 million euro (Rs 1,648 crore) from sales in Dutch auctions.
 So, what went wrong with India? Experts say given the country’s size and diverse geography and climate, India remains a potential giant in the field. Fresh cut flower exports started with lot of government backing in the early 1990s, but since then, infrastructure inadequacies — coupled with lack of initiative from the growers — has seen the promise wither away.
 “Volumes and quality are the two keys for success in world flower markets. We have not been able to build up volumes, and our quality isn’t consistent,” says industry expert Narendra K Dadlani. “Above all, we have failed to build infrastructure around our natural advantages.” Take the case of Cymbidiums (an orchid variety) from Sikkim and other parts of Northeast. Cymbidiums grown there are among the best in the world, but due to bad roads these flowers can’t reach the gateway airport at Bagdogra in good condition for export. “These gaps need to be filled,” says Dadlani.
 Now, look at Kenya, which like some other equitorial east African countries like Uganda and Ethiopia, have maximized their natural advantages. Like India, they have good sunshine, but they also have similar weather conditions through the year and large swathes of hilly terrain — all ideal for rose cultivation.
 Also, these countries are also closer to the European market, which cuts their frieght costs by half compared to India. Kenya has huge farms with modern technology that gives the country economy of volume as well as quality in rose cultivation.


Kenya vs India

Floriculture exports in 2008

Kenya: Rs 1,650 cr* India: Rs 235 cr**

Area under exportable cut flower cultivation in India less than 1/10th that of Kenya

Average size of farms Kenya: 40 ha India: Less than 4 ha

* In Dutch market alone ** Ballpark industry estimates for 2008-09

1 thought on “Why Kenya beats India in flower business?

  1. Milco Rikken

    Recently published trade data (Eurostat) covering the year 2008 shows that The Netherlands remains the leading gateway for flowers from rather a large number of different developing countries. Nevertheless, one leading supplying country can be recognised: Kenya. Imports from Kenya increased by 13% annually between 2004 and 2008, while imports from Ecuador increased by 20% annually during this period. Imports from Colombia and Tanzania showed significant increases as well. However, the most notable performance was that of Ethiopia. Imports from Ethiopia increased by 193% annually, with imports amounting to € 63 million in 2008. Only four years before, the imports from this country were still negligible. In contrast, imports from Zimbabwe decreased by 18% annually during the review period, due to the unstable economic and political situation. See also the ProVerde Blog.



Post your Valuable Comments below:

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.