HI-TECH FLORICULTUREIN KARNATAKA

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PREFACEIndia has an amazing area under floriculture production, over 1.5 lakhhectares, producing almost 7 lakh ton loose flowers besides 3.8 billioncut flowers. Small farms using traditional cultivation practices producetons of traditional loose flowers like marigold, jasmine, China aster,chrysanthemum and crossandra and modern cut flowers includingrose, gerbera, gladioli, lilium, carnation, orchid, anthurium, and birdof paradise. The infrastructure for production and marketing is poor.Many farmers load baskets of fresh flowers on trains or buses to goas far as 650 km to the city street markets, which open only in themornings. The domestic Indian market for flowers is growing at 25%per year in the country, 40% per year in New Delhi, thanks to theincrease in urban incomes coupled with high income-elasticity ofdemand for flowers.The export-geared hi-tech floriculture is not an offspring of this vastdomestic flower industry but something quite apart. For the last one-and-a-half decades India has built modern greenhouses and borrowedwestern floriculture technology. In 2005-06 Indian floriculture exports,over half of which were dry flowers, amounted to about US$ 68million. Still, Indias cut flower exports account for only 1% of theworlds fresh cut flowers trade. Of the 500 hectares devoted to hi-tech floriculture, almost all is to produce roses.Hi-tech floriculture industry in India in general and, in Karnataka inparticular, is undergoing lot of ups and downs during the last fifteenyears after its launching. The industry has passed through roughlythree phases since its inception in the early nineties in the wake ofeconomic reforms. The first phase was characterized by a lot of hypegenerated by the declaration of export-oriented floriculture as anextreme-focus area during the 8th Five Year Plan (1992-97) and theconsequent dubbing of the sector as the sunrise industry, when quitefew enthusiastic floriculture enterprises came up mostly with the helpof Dutch technical assistance and associated costly imported plantingmaterials and green house equipment.The second phase spanning the late nineties and extending into theearly years of the new millennium was a period of gloom when manyhi-tech floriculture units were struggling to break even, while some

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became sick and were on the verge of closure. Many of the initial hi-tech rose farms failed due to micro-climate problems, lack ofeconomies of scale, inappropriate technology and the fact that Indiais still far from being an infrastructure-driven economy. This promptedthe sponsoring authorities such as the National Horticulture Board(NHB), Agricultural Produce Processing and Export Authority (APEDA)and even the major financing institutions including the National Bankfor Agriculture and Rural Development (NABARD) to take a re-lookat the wilting industry.The third phase, the on-going one, which started about five years ago,marks a recovery period during which several first-generation hi-techfloriculture units have apparently made a turn-around, while mostsecond-generation units are even flourishing. The term first-generation units is conventionally used in the industry to typify thoseunits that were started in the early nineties with the technology andequipment almost totally borrowed from Europe, while the second-generation units refer to those started from the late nineties onwardsusing in large part the cost-effective local technology and green houseequipment. Conditions have improved substantially during the lastfew years. APEDA has made important investments in the cold storage,transport and airport facilities in seven major export cities. In India,relative returns on labour and capital are almost opposite to those ofNorthern Europe.Hence, Indian rose farms are not highly automated. Hi-tech rosefarms employ on an average over 20 workers per hectare for alloperations including grading and transport. The Indian farmmanagers and technicians have now learnt to adapt the floriculturetechnology appropriate to the local agro-climatic and labourconditions, so much so that their presence is very much felt infloriculture farm management in African countries like Kenya,Zimbabwe and Ethiopia. They have designed fairly good greenhousestructures and at one-third the cost of the structures that used to bepreviously imported from Europe. Workers are quite productive.Women figure importantly as both flower farm owners and managers.Women laborers are an integral part of Indian agriculture in generaland floriculture in particular, as they work with dexterity and alacrity.The cost of packed Indian roses ranges from $0.04 to $0.10 per stem

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ready to be airlifted (depending on whether interest and royalty costsare included). Freight to Europe is $2.20 to $2.50 per kg or US$0.075per rose or about the same as the rose production cost. Average returnfor exported Indian roses at the Bloemenveiling Aalsmeer (VBA), theAalsmeer Flower Auction Center in Amsterdam, during the SeptemberMarch shipping season, including the benefits of the Valentines Dayexport advantage, is around 0.20 ($0.24) per stem.In Japan, the average price of Indian roses is 25-35 Yen per stem (0.20). Freight to Japan is about $1.50 per kg or only 60% of the freightcost per kg to Europe, even though the actual distance to Japan isgreater. So, because of the higher net returns, over half of the Indianroses are airlifted to Japan. As opposed to the roses, which go mainlyto Amsterdam or Japan, the Indian dry flowers (statice, helichrysum,bottle gourd, cane and bamboo strips, wheat, corn and barley stripsand a diverse basket of wild native species) are exported to a widearray of countries.Three international floriculture exhibitions were held in India forthe last three years in a row. The 1st International Flora Expo heldin 2005 at Bangalore followed by the 2nd in 2006 at New Delhiand the 3rd in 2007 at Pune, were all intended to showcase theIndias capabilities, the variety and ability to supply quality flowersto the international markets. These expos were all apparently aspectacular success, judged by the crowds drawn by them and theparticipation of the domestic and international interests infloriculture production and exports. Foreign delegations to the 2ndFlora Expo came from Europe, Japan and the Middle-east andincluded the commercial manager of the VBA, and one of the directorsof the NBV-UGA and the ex-manager of Flora Holland, together witha phalanx of Dutch vendors of equipment, young plants andconsultancy within the framework of buyback arrangements.Karnataka is the leading state in India in hi-tech floriculture,accounting for almost 60 percent of cut-flower exports, of which about80 percent car are from Bangalore region. The recent turnaround notwithstanding, hi-tech floriculture units are still experiencing severalconstraints. This occasional paper attempts to study the strengths andweaknesses of high-tech floriculture in Karnataka so as to throw lighton its prospects and problems, as well as to suggest policy measures

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to enable the floriculture industry in the state to gear-up for exploitingthe future opportunities and to tackle the challenges in this endeavor.The present study is thus a sort of a SWOT analysis for high-techfloriculture in Karnataka.I have benefited greatly from several institutions and individuals inthe course of this study. It is my pleasant duty to acknowledge thesame and thank them. First of all I am grateful to the authorities ofthe National Bank for Agriculture and Rural Development (NABARD)for having sponsored this study. I am particularly indebted to Dr.Y.S.P. Thorat, formerly Chairman of NABARD and subsequently theChairman of the Expert Committee on the Sugar Economy in India,for personally encouraging me to take up this assignment.I thank Mr. Shankar Reddy, Deputy Director (Statistics), Governmentof Karnataka, Dept. of Horticulture, Bangalore for his kind help ingathering the secondary data on floriculture. My thanks are also dueto Mr. Ravindra, Asstt. General Manager, APEDA, Bangalore Officeand Mr. Singh of the National Horticulture Board, Bangalore Office,for their kind help in collecting the secondary data for the study. Iplace on record my great many thanks the executive officers andmanaging directors of the floriculture production-export firms,individual farmers, wholesalers, retailers and also the consumers ofcut flowers in Karnataka covered in the present study for their kindinteraction and cooperation in collecting the primary data requiredfor the study. Thanks are due to the officials of the InternationalFlower Auction Centre, Bangalore (IFAB) and South Indian FloricultureAssociation, Bangalore for making available data on cut flowersauctioned through IFAB over the years. I thank Drs. T.M.Gajananand Sudha Mysore, Senior Scientists (Agricultural Economics), IndianInstitute Horticulture Research, Hesaragatta, Bangalore for their kindinteraction and sparing valuable literature on Indian floriculture.I am grateful to my former colleague, Dr. M.S. Jayaram, currentlyProfessor of Agricultural Marketing and Co-operation, University ofAgricultural Sciences, Bangalore for his kind assistance in collectingthe primary data for the study and also for the insights provided byhim regarding the floriculture industry in Karnataka. I also place onrecord my heart-felt thanks to Mr. Y. Nagaraj, one of my formerstudents, who is currently Research Associate in the ICAR Cost of

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Cultivation Scheme at the University of Agricultural Sciences,Bangalore for his kind assistance in the statistical analysis of the data.I must also thank Mr. Prasanna Kumar and Ms. Sunitha, Studentsof MSc (Agril.Marketing & Co-operation) at the University ofAgricultural Sciences, Bangalore for their assistance in collecting theprimary data for the present study. Thanks are due to Sri VinayakaPrinters, Hebbal, Bangalore- 24, for their elegant and expeditiousPrinting work.I must admit here that while the help I have received from all theseindividuals and institutions has certainly made the quality of my workbetter than it would otherwise have been, I am alone responsible forthe flaws that may still lurk in it.

M.V. Srinivasa GowdaBangalore

February 8, 2009

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CONTENTSNo. Title Page No.

Preface ....................................................................................... iiiCHAPTER I: INTRODUCTION

1.1 Significance of the Study ............................................................. 21.2 Objectives of the Study ................................................................ 41.3 Scope of the Study ....................................................................... 41.4 Methodology ................................................................................ 41.4.1 Data for the study ....................................................................... 41.4.2 Study area (for collection of primary data) .................................... 51.4.3 Sampling procedure ..................................................................... 61.4.4 Collection of Data ........................................................................ 71.4.5 Analytical Tools Used ................................................................... 81.4.6 Flaws in Secondary data Floriculture in India ............................. 111.5 Organization of the Paper .......................................................... 12

CHAPTER II: GROWTH OF FLORICULTURE INDUSTRY IN INDIA2.1 Rise and Importance of Floriculture ........................................... 142.2 Area under Floriculture ............................................................. 152.3 State-wise Area under Floriculture ............................................. 172.4 Employment Opportunities in Floriculture ................................. 18

CHAPTER III: DEVELOPMENT OF FLORICULTUREIN KARNATAKA

3.1 A Peep into Floriculture History of Karnataka ............................. 223.2 Trends Area and Production of Commercial flowers

in Karnataka ............................................................................ 223.3 District-wise Trends in Area and Production of

Floriculture in Karnataka .......................................................... 233.4 Crop-wise Area and Production of commercial

flowers in Karnataka ................................................................. 323.5 Trends in Crop-wise Area under Commercial

Flowers in Karnataka ................................................................ 363.6 Trends in Crop-wise production of commercial

flowers in Karnataka ................................................................. 413.7 Trends in Hi-tech Floriculture .................................................... 463.8 Profile of a successful Hi-tech floriculture firm ........................... 483.9 South Indian Floriculture Association ........................................ 493.10 New Flower Auction Centres in Karnataka .................................. 49

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3.11 Flaws in Floriculture Statistics of Karnataka .............................. 50CHAPTER IV: ECONOMICS OF HI-TECH FLORICULTURE

4.1 Costs of and returns from cut-flower production ........................ 514.1.1 Gerbera ..................................................................................... 514.1.2 Carnation .................................................................................. 554.1.3. Anthurium ................................................................................ 584.1.4 Rose .......................................................................................... 614.2 Production Constraints faced by Hi-floriculture Units ................. 64

CHAPTER V : MARKETING OF CUT FLOWERS5.1 Supply Chain for Cut-flowers ..................................................... 665.2 Consumers' preferences for cut flowers ...................................... 715.2.1 Conjoint Analysis for Rose Consumers ....................................... 725.2.2 Conjoint Analysis for Gerbera Consumers .................................. 725.3 Constraints faced by Wholesalers ............................................... 745.4 Constraints faced by Retailers .................................................... 755.5 Constraints faced by Corporate Grower-exporters of cut flowers .. 765.6 Trend and Seasonality in flower arrivals and

prices of cut flowers at IFAB ...................................................... 785.7 Seasonal pattern in arrivals and prices of selected

cut flowers in IFAB .................................................................... 795.7.1 Seasonal pattern in arrivals ....................................................... 795.7.2 Seasonal pattern in prices ......................................................... 805.8 Pricing Mechanism for flowers in Bangalore ............................... 825.8.1 Pricing mechanism at IFAB ........................................................ 825.8.2 Pricing Mechanism at K.R. Market ............................................. 835.9 Marketing margin ...................................................................... 855.9.1 Marketing margin in channel I (IFAB) ......................................... 855.9.1.2 Producer's Share in Channel I (IFAB) ......................................... 855.9.2.1 Marketing Margin in Channel II (KR Market) .............................. 875.9.2.2 Producer's Share in Channel II (K.R. Market) .............................. 87

CHAPTER VI: INDIA'S FLORICULTURE EXPORTS6.1 Trends in India's Floriculture Exports ........................................ 896.2 Direction of India's Flower Exports ............................................. 906.3 Export Performance of Karnataka State ...................................... 926.4. Steps taken by Government to increase Flower Exports .............. 946.5 Problems encountered by Indian Cut flower Exporters ................ 95

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6.6 Measures required raising Floriculture Exports ......................... 956.7 Quality Requirements for Export-oriented Floriculture ................ 966.7.1 Harvesting of flowers ................................................................. 966.7.2 Grading and Packing ................................................................. 966.7.3 Cold Room................................................................................. 976.7.4 Transportation .......................................................................... 976.7.5 Sanitary and Phyto-Sanitory norms ........................................... 97

CHAPTER VII : GOVERNMENT'S POLICIES ANDPROGRAMS FOR PROMOTION OF FLORICULTUREIN KARNATAKA

7.1 National Bank for Agriculture and Rural Development (NABARD) ... 997.2 Agricultural and Processed Food Products Export

Development Authority (APEDA) ................................................. 997.3 Scheme for Infrastructure Development ................................... 1007.4 Scheme for Export Promotion and Market Development ............ 1007.5 National Horticulture Board (NHB) ........................................... 1007.6 Indian Institute of Horticultural Research (IIHR), Bangalore ..... 1017.7 Central Government's Initiatives for Floriculture Development ..... 1017.8 State Government's Programs for Floriculture Development ..... 1037.9 Schemes under implementation ............................................... 103

CHAPTER VIII : SUMMING UP8.1 A Retrospection ....................................................................... 1068.2 SWOT Analysis for Floriculture ................................................ 1098.2.1 Strengths ................................................................................ 1108.2.2 Weaknesses ............................................................................. 1118.2.3 Opportunities .......................................................................... 1128.2.4 Threats ................................................................................... 1158.3 Steps to strengthen Hi-tech Floriculture ................................... 1168.4 The Way Forward .................................................................... 122

REFERENCES ......................................................................... 125ANNEXURES ........................................................................... 133

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LIST OF TABLESNo. Title Page No.

Table 2.1 : Growth of Area and Production of CommercialFlowers in India ................................................................ 16

Table 2.2 : State-wise Area and Production offlowers in India: 2007-08 .................................................. 19

Table 3.1 : Trends in Area and Production of CommercialFlowers in Karnataka from 1990-91 to 2004-05 ................. 24

Table 3.2a : District-wise Trends in Area under Floriculture inKarnataka (1993-2005) ....................................................... 25

Table 3.2b : District-wise Trends in Area -1998-2005(For new Districts formed since 1998) ............................... 27

Table 3.3a : District-wise Trends in Flower Production in Karnataka(1993-2005) ........................................................................ 28

Table 3.3b : District-wise Trends in Production -1998-2005(For new districts) .............................................................. 31

Table 3.4 : Crop-wise Area and Production of CommercialFlowers in Karnataka - 2006-07 ......................................... 32

Table 3.5 : Percentage Shares of Different CommercialFlowers in the Total Floriculture Area,Production and Value in Karnataka, 2006-07. .................... 34

Table 3.6 : Trends in Crop-wise Area under CommercialFlowers in Karnataka from 1994-95 to 2004-05 ................. 37

Table 3.7 : Crop wise production of commercial flowers inKarnataka from 1994-95 to 2004-05 (Production in Tons) .. 42

Table 3.8 : Disrict-wise Distribution of Hi-Tech FloricultureUnits in Karnataka in 2005-06 .......................................... 47

Table 4.1 : Per-acre Establishment cost of Gerbera ............................. 53Table 4.2 : Per-acre Cost of Production of Gerbera .............................. 54Table 4.3 : Per-acre Yield and Returns from Gerbera .......................... 54Table 4.4 : Per-acre Establishment cost of Carnation .......................... 56Table 4.5 : Per-acre Cost of Production of Carnation ........................... 57Table 4.6 : Per-acre Yield and Returns from Carnation ....................... 57Table 4.7 : Per-acre Establishment Cost of Anthurium ........................ 59Table 4.8 : Per-acre Cost of production of Anthurium ......................... 60

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Table 4.9 : Per-acre Yield and Returns from Anthurium ...................... 60Table 4.10 : Per-acre Establishment Cost of Rose .................................. 63Table 4.11 : Per-acre Cost of production of Rose ................................... 63Table 4.12 : Per-acre Yield and Returns from Rose ................................ 64Table 4.13 : Problems faced by Hi-tech Floriculture Units (n=30) ........... 65Table 5.1 : Results of Conjoint Analysis for Rose Consumers ............... 73Table 5.2 : Results of Conjoint Analysis for Gerbera Consumers .......... 73Table 5.3 : Constraints faced by wholesalers (n = 10) .......................... 74Table 5.4 : Problems faced by Retailers/Florists (n = 15) ..................... 75Table 5.5 : Constraints faced by Corporate Grower-exporters of

Cut flowers (n = 15) ........................................................... 77Table 5.6 : Linear Trend in monthly Arrivals and Prices of

Cut flowers at (IFAB) .......................................................... 78Table 5.7 : Linear Trend in monthly Arrivals of Select

Cut flowers at IFAB............................................................ 79Table 5.8 : Linear Trend in Prices of Select Cut flowers at IFAB .......... 79Table 5.9 : Indices of Arrivals and Prices for Roses at IFAB ................. 80Table 5.10 : Indices of Arrivals and prices for Gladiolus at IFAB ........... 81Table 5.11 : Seasonal Indices of Arrivals and prices for

anthodium at IFAB ............................................................ 81Table 5.12 : Difference between IFAB and K.R. Market, Bangalore ........ 84Table 5.13 : Price and Market Margin of cut flowers at different levels .. 86Table 5.14 : Shares of Producer and Intermediaries in Consumer

rupee of Cut flowers in Market Channel I (IFAB) (%) ....... 86Table 5.15 : Price and Marketing Margin of cut flowers at

different levels In Channel II (K.R. Market) ........................ 88Table 5.16 : Shares of Producer and Intermediaries in Consumer

rupee of cut flowers in Channel II (K.R. Market) (%) ........ 88Table 6.1 : Trends in India's Flower exports ........................................ 89Table 6.2 : Direction of India's cut Flower Exports ............................... 90Table 6.3 : Major Destinations of India's Flower

Exports over the years ....................................................... 91Table 6.4 : Export Performance of Karnataka State .............................. 93

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LIST OF FIGURESSr. No. Title Page No.

1 Fig.2.1: State-wise Area under flowers in India:2007-08 (Hectares) ................................................................... 20

2 Fig.2.2 : State-wise Production of loose flowersin India: 2007-08 (MT) ............................................................ 20

3 Fig.2.3: State-wise Production of cut flowers inIndia: 2007-08 ('000s) ........................................................... 21

4 Fig. 3.1: Trends in Area and Production of Commercialflowers in Karnataka from 1990-91 to 2004-05 ......................... 24

5 Fig. 3.2: Percentage Shares of Different CommercialFlowers in the Total Floriculture Area in Karnataka, 2006-07. .. 35

6 Fig. 3.3: Percentage Shares of DifferentCommercial Flowers in the Total FloricultureProduction in Karnataka, 2006-07. .......................................... 35

7 Fig. 3.4: Percentage Shares of DifferentCommercial Flowers in the Total Value ofFloriculture products in Karnataka, 2006-07. ........................... 36

8 Fig. 3.5: Trends in Area under Rose in Karnatakafrom 1994-95 to 2004-05 ......................................................... 38

9 Fig. 3.6: Trends in Area under Gerbera inKarnataka from 1994-95 to 2004-05 ........................................ 38

10 Fig. 3.7: Trends in Area under Carnation inKarnataka from 1994-95 to 2004-05 ........................................ 39

11 Fig. 3.8: Trends in Area under Anthurium inKarnataka from 1994-95 to 2004-05 ........................................ 39

12 Fig. 3.9: Trends in Area under Jasmine inKarnataka from 1994-95 to 2004-05 ........................................ 40

13 Fig. 3.10: Trends in Area under Marigold inKarnataka from 1994-95 to 2004-05 ........................................ 40

14 Fig. 3.11: Trends in Area under Gladiolus inKarnataka from 1994-95 TO 2004-05 ....................................... 41

15 Fig. 3.12: Trends in Production of Rose inKarnataka from 1994-95 to 2004-05 ........................................ 43

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16 Fig. 3.13: Trends in Production of Gerbera inKarnataka from 1994-95 to 2004 -05 ....................................... 43

17 Fig. 3.14: Trends in Production of Carnation inKarnataka from 1994-95 to 2004 -05 ....................................... 44

18 Fig. 3.15: Trends in Production of Anthurium inKarnataka from 1994-95 to 2004 -05 ....................................... 44

19 Fig. 3.16: Trends in Production of Jasmine inKarnataka from 1994-95 to 2004 -05 ....................................... 45

20 Fig. 3.17: Trends in Production of Marigold inKarnataka from 1994-95 to 2004 -05 ....................................... 45

21 Fig. 5.1: Backward flow of Information on Cut flowers .............. 6722 Fig. 5.2: Backward flow of Money ............................................. 6723 Fig. 5.3: Supply Chain for Cut-flowers from

Producer to Consumer ............................................................. 6724 Fig. 5.4: Supply Chain for Cut-flowers from

Greenhouse to Aircraft ............................................................. 7025 Fig. 6.1 Direction of India's Flower Exports

(Quantity, 2006-07) ................................................................. 9126 Fig.6.2 Direction of India's Flower Exports

(Value, 2006-07) ...................................................................... 92

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CHAPTER 1INTRODUCTION

The BackgroundFloriculture may be defined as the art, science and business of growingand marketing flowers. As an art, it refers to the cultivation of flowers;as a science it systematically studies botanical aspects of flowers andplants; and as a business it deals with the costs of production of andincome from flower production and marketing. The term flowers isused to cover flowers both fresh and dried as also ornamentalplants and the filling material/foliage used for floral decorations.In the wake of the new economic policy (NEP) introduced in India inthe early nineties covering virtually only the manufacturing and servicesectors, perhaps the only cognizable new program that wascontemplated by the Indian policy makers for the agricultural sectorwas the development of commercial, or, what is otherwise called thehigh-tech, floriculture. This was in view of the assumed vast exportpotential of this sub-sector of agriculture in the country. In the bandwagon was the Karnataka Government which in fact led the otherstates in India to provide a number of incentives to the newlydiscovered hi-tech floriculture sector which was supposed to providenot only additional source of foreign exchange but also help raise farmincomes in the process. The initial policy euphoria and the resultantfinancial thrust given to this sun-rise industry, however, did not lastfor long, since the basic problems/handicaps associated with theexport-oriented floriculture industry were neither adequatelyunderstood nor appropriately tackled. As a result, many of thecommercial floriculture enterprises established/promoted during theinitial years of the NEP could not survive for long. Obviously, theinstitutional finances provided to many of the high-tech floricultureunits ran the risk of becoming nonperforming assets.Most high-tech floriculture units established in a sort of a hurry, andwhat with the rather heavy investments made for the moderngreenhouse set-up most of which was imported, to cash-in on theexpected burgeoning export market, ended up with a struggle todispose off the output even in the local markets and the number ofsick floriculture units went on growing towards the late 1990s. Asfar as Karnatakas floriculture is concerned, although the State ingeneral apparently enjoys several natural and infrastructural

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advantages over the other states, the progress made in high-techfloriculture is not quite extraordinary.Nevertheless, in view of the overcoming of the two major logisticbottlenecks for export-oriented floriculture namely the lack of aninternational airport and of an auction centre overcome in the formof the establishment of Devanahalli International Airport on the onehand and the construction in Bangalore of a state-of-the-art flowerauction centre similar to Alsmeer centre of Amsterdam, high-techfloriculture in Karnataka in general and, around Bangalore inparticular, has a great prospect which needs to be tapped.The purpose of this occasional paper, therefore, is to examine thestrengths and weaknesses of high-tech floriculture in Karnataka soas to throw light on its prospects and problems, as well as to suggestpolicy measures to enable the floriculture industry in the state to gear-up for exploiting the future opportunities and to tackle the challengesin this venture. The present study is thus a sort of a SWOT analysisfor high-tech floriculture in Karnataka.1.1 Significance of the StudyThe existing literature on the prospects and problems of high-techfloriculture in Karnataka is rather scanty and much of what isavailable appears to be either impressionistic or confined to thetraditional open field floriculture that caters to the traditional domesticmarket. Although there is no dearth of literature on the technicalaspects, i.e., the production aspects, of high-tech floriculture, thereis a yawning gap in the literature on its economic and marketingaspects especially in the context of its export prospects. Therefore, astudy based on field survey of a representative sample of the existinghigh-tech floriculture enterprises across different regions/districts inthe state would be of lot of policy significance, not only for thegovernment but also for the institutions financing high-techfloriculture. The study is intended to provide a database on the costs,returns, profitability and export prospects as well as problems of high-tech floriculture in Karnataka, which could be of great use forprofessionals, academicians, policy makers and stakeholders includingfinancial institutions.Karnataka ranks first in the country in the production and export ofcut flowers. The area under flowers both loose and cut - hasincreased from about 4 thousand hectares in 1978-79 to 23 thousand

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hectares in 2006-07. Out of this, about 200 ha are under hi-techfloriculture. During the same period, the production has increasedfrom 21 thousand tons to 1.92 lakh tons valued about Rs.360 crore.In terms of its share in the country, Karnataka accounted for 27 percent of the area and 35 per cent of the production during 2003-04.The conducive climate prevailing in the 6 agro-climatic regions spreadacross 10 Zones in the state is responsible for this impressive growth.The growth of this crop in the state is also highest compared to otherfood crops as well as horticultural crops. On the export front, itsperformance is commendable. In 1999-2000, about 58 million stemswere exported from the state, fetching Rs.41 crore in foreign exchangewhich accounted for about 50 per cent of the countrys total flowerexports and formed about 2 per cent of the total agricultural exportsof Karnataka. However, the growth within the state has not beenuniform across the districts. Hi-tech floriculture is concentrated innot more than 10 of the present 29 districts in the state, althoughthe cultivation of traditional flowers is fairly well spread across all thedistricts.Indias share in the world trade of fresh flowers is less than 0.5 percent as compared to the Netherlands 65 per cent, Columbias 12 percent, Italys 6 per cent and Israels 4 per cent. Even among developingcountries, those like Kenya and Zimbabwe have a higher share thanIndia in the world flower trade. India has a larger area underfloriculture than many countries, the area under protected cultivationis limited. The proportion of the area under protected floriculture tothe total floricultural area is 99 per cent in Colombia, 70 per cent inthe Netherlands and 58 per cent in Italy, whereas in India it is hardly0.56 per cent (Thippaiah, 2005). The investments in this sector andper capita consumption of flowers are also considerably lower thanthose in developed countries.Indian floriculture is constrained by lack of awareness about itspotential, lack of quality planting materials, inadequate infrastructuralsupport, lack of post-harvest facilities, absence of organized markets,exploitation by middlemen, weak database, and absence of informationon income and employment generation from cultivation of differentflowers and also export barriers. Majority of the growers of traditionalflowers are small and marginal farmers who experience lot ofproblems. Many of the studies conducted so far have covered onlythe economics of production and marketing of traditional flowers, while

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those on hi-tech floriculture are few and far between. Hence anattempt has been made in this study to analyze the economics ofhi-tech floriculture in Karnataka state.1.2 Objectives of the Study

1) To assess the costs, returns and profitability of high-techfloriculture in Karnataka.

2) To document the production and marketing constraints andproblems encountered by high-tech floriculture units inKarnataka.

3) To draw a database as well as inferences on high-techfloriculture; for use by the industry, financial and researchinstitutions and, by policy makers.

1.3 Scope of the StudyFloriculture in India comprises both traditional and modern flowercrops. Most traditional flowers are grown in open fields while modernflowers are grown under protected conditions. The traditional flowersgrown in the open include chrysanthemum, jasmine, crossandra, rose,tuberose, aster, marigold, champaka, etc. A large number of smalland marginal farmers as well as small traders (forming theunorganized sector) are eking out a living in the sector compared tohi-tech floriculture. The traditional flowers are grown in all districtsof the state. The traditional floriculture is still predominant in the statein terms of area and production. However, there are a few exceptionsto this general practice in Karnataka. For instance, roses (as cutflowers) are also grown by small and marginal farmers under openconditions, while traditional flowers like chrysanthemum are grownby large growers under poly-house conditions. The chief flowers grownunder greenhouse conditions are rose, gerbera, carnation, bird ofparadise and anthurium. The present study is focused on the hi-techfloriculture in Karnataka.1.4 Methodology1.4.1 Data for the studyThe study was based on both the primary and secondary data.Secondary data were collected from published sources and also fromIFAB, SIFA, the regional offices of NHB and APEDA at Bangalore,

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Indian Institute of Horticulture Research, Hesaraghatta, Bangaloreand, Karnataka State Department of Horticulture, Lalbagh, Bangalore.The primary data used for the present study relates to the year 2006-07, whereas the secondary data relating to area, production andexports pertain to the periods ranging from 2003-04 to 2007-08depending on the data made available by the concerned sources.1.4.2 Study area (for collection of primary data)Cut-flower cultivation in Karnataka is concentrated in the districtsof Bangalore (both urban and rural), Belgaum, and Kodagu becauseof favorable climate and easier access to the market. Hence, Bangalore,Belgaum and Kodagu districts were selected for this study. Anyproduction system, especially the one which is biological in nature,is influenced by the agro-climatic environment in which it operates.An understanding of these factors and region would be useful tounderstand the production system and the environment influencingthe decision making process. Commercial production of flowersespecially under greenhouse conditions is concentrated in the districtsmentioned above. Hence these districts were purposively chosen forthe study. The agro-climatic features of these districts are presentedbelow.i) Bangalore district: Although administratively Bangalore district hasbeen bifurcated into Bangalore Urban and Bangalore Rural districts,for the purpose of the present study it was treated as one unit.Bangalore district is located at the south-east border of Karnatakastate. The district lies between 120 1 and 130 3 North latitude and700 7 and 780 4 east longitude. The geographical area of the districtis 8,005 sq.km. The average annual rainfall of the district is about793.60 mm. Generally, heavy rainfall occurs during the months ofSeptember and October. The temperature ranges between 180C and360C.The district enjoys more or less pleasant climate with cool winter(November to January) and warm summer months (March to June).The bulk of soil is red sandy loam. The other major types of soil inBangalore are red loamy soils, laterite and laterite-gravelly soils. Kharifis an important season, which starts from middle of June and extendsup to middle of September. The rabi season begins from midSeptember and extends up to mid February. This is followed bysummer season. Both these seasons are not important since rain fed

5

agriculture is practiced in this district.Cereals like rice, ragi and maize are cultivated in the district. Besides,gram, tur, groundnut and sugarcane are also cultivated. Coconut,tamarind, mango, jack fruit, papaya, potato, tomato, brinjal and beansform the major horticultural crops cultivated in the district. Flowercrops like rose, chrysanthemum, aster, jasmine, crossandra andmarigold are also cultivated extensively in open conditions.ii) Belgaum district: Belgaum district is located in the interior ofthe Deccan Peninsula and lies between North Latitude 15 23 and16 58 and East Longitude 74 05 and 75 28. Climate wise thedistrict is divided into three zones viz. Hilly zone, North transition zone,North dry zone. The average annual rainfall distribution is 808 mm.The temperature ranges from 19.50 C to 35.70 C.There are three main types of soils namely black, red sandy and sandyloam. The soils are slightly acidic and are good in organic matter. Themain food crops are jowar, paddy, bajra, maize, wheat and othercereals. Among the commercial crops tobacco, cotton, sugarcane aremore popular. Major fruit crops grown are grape, mango, sapota,guava, papaya and pomegranate.iii) Kodagu district: Kodagu is a small, highland district situated inthe south-western part of Karnataka state and lies between 110 50and 120 50 north latitude and 750 25 and 760 14 east longitude,covering an area of 4109.73 sq.km. Nature has richly endowed thedistrict with horticultural wealth. Its west, northwest and southwestboundaries run along the fort of the Western Ghats. On the northand east, for short distance the Cauvery and Hemavathy rivers markthe boundary between Mysore and Kodagu. On the south, theBrahmagiri range of hills forms the line of division from the Keralastate.1.4.3 Sampling procedureA two-staged sampling procedure was employed in the present study.In the first stage, villages were randomly selected and in the secondstage farmers were randomly selected. Keeping in view commercialproduction of cut flowers under greenhouse condition, Bangalore,Belgaum and Kodagu were selected for Rose, Gerbera, Carnation andAnthurium. A list of villages growing flowers was obtained from theDepartment of Horticulture, Government of Karnataka. Sample flower

6

growers were randomly selected from each village depending upon theavailability of flower growers. The sample size consisted of 55 farmerrespondents spread over the three sample districts: Bangalore,Belgaum and Kodagu. Out of the total respondents, the data obtainedrelated to 10 Rose, 15 Gerbera, 15 Carnation and 15 Anthurium.Although it was originally intended to collect primary data from 15floriculture exporters, in the course of the field visits it was foundthat most hi-tech floriculture production units were exporters as well,and accordingly opinions on exports were elicited from the same setof sample respondents.In order to analyse the marketing aspects including the supply chainof cut flowers from producers to consumers, 10 wholesalers, 15retailers and 10 corporate companies engaged in export of cut flowerswere selected at random spread over the entire Bangalore city. Dataon consumer preference for Rose and Gerbera were obtained from 40consumers from Bangalore city. The reference year of the study was2006-07 and the collection of data was carried out during March -October 2007.1.4.4 Collection of DataThe primary data required for the study were collected by the surveymethod from the sample flower growers by the personal interviewmethod using a pre-tested structured schedule. Five separateinterview schedules were used covering cut flower grower-exporters,wholesalers, retailers and consumers. In order to get betterco-operation and reliable data from the respondents, the purpose ofthe study was clearly explained to the respondents prior to theinterview.The schedule used for producer-exporters was structured in such away as to obtain information on inputs used, cost of inputs,production materials and creation of the structure for the greenhouse.Information on cold storage, processing, cost of marketing and exportswas also gathered from the respondents. In order to get informationabout flower marketing, questionnaire was prepared for thewholesalers, retailers and consumers. The schedule for consumerscovered aspects like education, income, factors influencing theirpurchase of cut-flowers like rose and gerbera.

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1.4.5 Analytical Tools UsedTabular analysis was used to arrive at the establishment costs,maintenance costs and returns of flower growers under greenhousecondition. Further the constraints faced by the flower growers wereanalyzed on an average basis.i) Costs and Returns ConceptsThe costs were classified into variable and fixed costs. Variable costsare defined to include costs incurred on fertilizers and pesticides,irrigation, electricity, transportation and marketing and labour. Fixedcosts included amortized cost of establishment of structure andplanting materials, interest on fixed capital and depreciation on fixedassets. The measurements and definitions of various cost componentsare as follows:Variable Cost Components

a) Fertilizers and pesticide cost: the cost of fertilizers andpesticides were considered by taking the amount actually paidby the sample farmers.

b) Irrigation and miscellaneous charges: irrigation chargesconsidered on the basis of the cost incurred on the electricity.The expenditure on traveling, repairs, stationary, land revenueand taxes paid were considered under the miscellaneoushead.

c) Transportation and marketing costs: these costs werecomputed by taking into account the actual amount paid formarketing their flowers including transportation, packaging,loading and unloading and commission charges paid at themarket.

d) Labour charges: wages for hired labour were computed bytaking into account the wages paid by the sample farmersfor different operations. The wage bill for the family labourwas calculated by imputing at the prevailing wage rate.

e) Interest on working capital: interest on working capital wascalculated at the rate of 12 per cent per annum since thecommercial banks charge at this rate for most agriculturalloans. This was calculated depending on the duration of thecrop.

8

Fixed Cost Componentsa) Interest on fixed capital: This includes interest on loans

raised for greenhouse structure, irrigation system, fencing andother implements and calculated at 14 per cent per annum.

b) Amortization of establishment cost: Amortized cost is theannual fixed cost component of establishment, it includes allmaterial costs. Due to declining yield levels, the amortizedcost varied with the economic factors such as year ofestablishment, average life span of the respective items usedin greenhouse construction.

c) Depreciation charges: depreciation on building, equipment,implements and machinery was calculated by straight-linemethod i.e., by dividing the original cost less junk values ofthe implements by their expected life. This was apportionedto individual crop in proportion to the acreage under thesecrops.

ii) Gross ReturnsGross returns from cut-flower enterprises were calculated by

multiplying the total production of cut-flowers with the correspondingprice per unit realized by farmers in the market.

m

GR = PYj Yj j = 1

where, P = Price Y j = Y1, Y2, Y3..Yn

iii) Profits or net returnsProfits or net returns were arrived at by subtracting the annual totalcosts of cut-flower production from the annual total returns derivedfrom the sale of cut-flowers.

9

Conjoint Analysis:Conjoint analysis is a versatile marketing research technique usedfor a variety of purposes. It is extensively used in consumersevaluation and value judgements on product quality and attributes.In the present study it was used to measure the consumerspreferences for the traits of cut flowers like rose and gerbera.One of the important requirements in the conjoint analysis is theidentification of appropriate attributes that describe the product andthe specific and feasible levels of attributes. On the basis of objectiveattributes, representative indicators for a given variety attribute arechosen. Further, the overall judgement of the consumer is brokendown into the contribution of each attribute level. Another importantrequirement for the study is the specification of the basic form ofrelationship between the product attributes and overall judgement.In the present study, the additive conjoint model was used instead ofother forms like the interactive and the multiplicative model. Further,in this model, the omission of the attribute does not have a majorimpact on the part-worth estimates.The additive part-worth model assumes that the part-worth of eachattribute level is independent and that total utility is the sum of theattribute level part worth. Assuming five attributes (A to E), a traderspreference for a particular product combining the attribute i from A,attribute j from B, attribute k from C, attribute l from D and m fromE is

Prefijklm= ai+ bj+ ck+ dl+ em ...................... (1)Where,Prefijklm= consumers total utility or preference rating for aproduct combining attribute levels ijklm from the

attributes A, B, C, D and E respectively.ai= utility or part worth of attribute level i from attributeA.bj= utility or part worth of attribute level i from attributeBck= utility or part worth of attribute level i from attributeCdl= utility or part worth of attribute level i from attributeD.

em= utility or part worth of attribute level i from attributeE. 10

The model has been formulated as: n mY= Vij Xij (2)

I=1 j=1Where,Y = consumers overall evaluation of the product alternativeVij= part worth associated with j (1,2,3. m) of attributes i.

(i= 1,2n)Xij= dummy variable representing the preference of the jth level

of ith attribute.For the present study, in order to determine the quality preference ofrose and gerbera cut flowers, four distinct attributes were consideredi.e., colour, variety, suitability for floral arrangement and price. Thecomputer software SPSS was employed to generate a set of 16 productprofiles. Each profile was described on a separate card called the plancard. The randomly selected mixed cards were shown to therespondents and were asked to arrange them in the order of theirpreference. Before administering these cards, initial briefing regardingthe meaning of the cards and the purpose of the study was given sothat the respondents could understand the meaning and purpose ofthe exercise. The ranks given by them to each of these 16 cards werenoted down. Varietal attributes and their levels were identified throughdiscussions with the growers and the traders.1.4.6 Flaws in Secondary data Floriculture in IndiaThe statistical data on floriculture in India needs to be taken with apinch of salt. The situation is no different in Karnataka. The StateDirectorate of Economics and Statistics arrives at the data onhorticulture crop area including floriculture based on the area underseason-wise horticulture crops recorded by village accountants in thesurvey number-wise RTC. The area, thus recorded, in the RTC is beingaggregated at the village, village panchayat, hobli and taluka levelsby the statistical inspector working at the taluka level and the sameis placed before the Tehsildar who is also the chairperson of the

11

committee on reconciliation of crop area statistics. Upon detaileddiscussion with the Senior Asst. Director of Horticulture of theconcerned taluka, the area under horticulture crops in the taluka isbeing finalized. However, several flaws are associated with thecollection of data on horticulture area in the state. Important amongthem are as under:

i) The village accountant often fails to record the horticulturearea in the RTC properly.

ii) Most horticulture crops are raised as mixed crops and as suchthe crop area is not appropriately bifurcated and recorded inthe RTC.

iii) As horticulture crops, particularly commercial flower crops,attract higher land revenue than the other crops, farmers tendto under-report the area in respect of the horticulture crops.Village accountants hardly make field visits to verify the croparea and they are also not trained to understand intricaciesof estimating.

iv) The village accountants often leave out poly-house floricultureunits by misconstruing them as industrial ventures.

For these and other reasons, the data base published by the nationalHorticultural Board often fails to truly reflect the ground reality.Obviously the analysis based on the published secondary data needsto be interpreted with great caution and such data may also sendwrong signals for policy purposes. Hence, the importance of fieldbased studies, especially on activities like floriculture.1.5 Organization of the PaperFor analytical convenience the paper has been organized into sixchapters. Chapter I covers the preliminaries of the study includingan introduction to the status of floriculture in the country as well asin Karnataka, the significance of the study, the objectives, scope andmethodology of the study. Chapter II presents an overview of thefloriculture development in India. Chapter III gives an account offloriculture development in Karnataka. Chapter IV, one of the corechapters, presents the results of the present study based on theanalysis of primary data collected from the sample hi-tech floricultureproduction-export units. This chapter examines the economics of

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floriculture covering costs, returns and profitability of hi-techfloriculture units. This chapter also examines the problems faced byflower growers in general and hi-tech floriculture enterprises inparticular. Chapter V analyses the domestic marketing of cut flowers.Chapter VI examines the trends, problems and prospects of flowerexports. Chapter VII gives a brief account of the major policies andprograms initiated for the promotion of floriculture in India in generaland in Karnataka in particular. Chapter VIII attempts a retrospectionto throw light on the general problems and prospects of hi-techfloriculture in Karnataka. To conclude the study, this chapter alsoattempts a SWOT analysis of the hi-tech floriculture industry anddiscusses the way forward.

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CHAPTER IIGROWTH OF FLORICULTURE INDUSTRY IN INDIA

This chapter gives a brief rsum on the development of floriculturein India, especially since the introduction of economic reforms in theearly nineties.2.1 Rise and Importance of FloricultureSince the mid-nineties, floriculture is emerging as an importantcommercial crop in India for both domestic and foreign markets. Theindustry is gaining prominence from three broad counts: creatingmore employment, ensuring higher incomes to rural people andearning more foreign exchange. Floriculture also provides rawmaterials for the manufacture of essence, perfumes, medicines andconfectioneries for direct consumption by the society as an item ofaesthetic beauty.According to the Indian trade classification made by the Governmentof India based on Harmonized System (HS) of commodity Descriptionand Coding Systems, floriculture covers a vide variety of flowers suchas bulbs, tubers, live plants, shrubs, bushes, roots, cut flowers, flowerbulbs, dried, bleached flowers and foliage etc. The major floricultureproducts are as under:a) Bulbs, tubers and Tuberose roots: These are products that may

be planted in pots, boxes or similar containers.b) Live plants: These are plants that are used for permanent or semi

permanent decoration in offices, homes and buildings. These arewhole plants, which are suitable for planting or for ornamentalpurposes.

c) Cut-flowers: These are flowers and flower buds with a suitablestem of varying length, which makes them suitable for bouquetsor for ornamental purposes. Examples of cut-flowers are roses,carnations, chrysanthemums, orchids, gladiolus etc.

d) Cut foliage: These are leaves, twinges grasses, shoots etc. Theeconomic value of these lies not in the decorative effect of theblossoms but in its colour and shape.

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e) Others: These include dried flowers and foliage, propagationmaterials, tissue culture plants and starter and adult ornamentalplants including houseplants. (Dattatreyulu, 1997).

Although production of flowers in India is an age-old occupation, thegrowing and selling of flowers was confined to a few families. Themarkets were localized and limited. However, the situation changedconsiderably since the mid-nineties. Now, farmers are growing a widerange of flowers for both domestic market and export. The economicreforms introduced since 1991 and the vastly liberalised foreign tradepolicy since then have given a great fillip to this sector. Consequentupon liberalization, the Government of India identified floriculture asa sunrise industry and accorded it 100 per cent export-oriented status.Growing domestic and global demand coupled with relatively muchhigher returns per unit of land than from other agricultural activityhas prompted some farmers to take up floriculture. The demand forflowers has increased on account of rapid urbanization, increase inindividual purchasing power among middle-income groups as a resultof increase in GDP, increase in the number of corporate bodies, hotels,tourists, temples, and changing life-styles/ social values among thepeople.The Five-Year Plans which had given little attention to this crop inthe past have started giving more attention to it on account of itsgrowing importance as a thrust area. In the Ninth Five Year Plan,about Rs. 40 crore were allocated to this sector as against Rs. 17 crorein the Eighth Five Year Plan. This positive attitude enabled the countryto expand both the area and production during the last one and ahalf decades.2.2 Area under FloricultureAs already mentioned, the data on the area under floricultural cropsare not accurate. Nevertheless, the available literature reveals variousestimates on area at different points of time. It was estimated thatthe area under floriculture in India was 4,000 hectares in 1962 and7,500 hectares in 1976 (National Commission on Agriculture (NCA)1976). Subsequent estimates by APEDA put the area at 34,000hectares in 1995 accounting for about 15 per cent of the worldsfloricultural area (Thippaiah, 2005). Indias floriculture area was lowerthan in China with 60,000 hectares. Recently, the NationalHorticulture Board (NHB) provided more reliable data on floriculture.

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According to this, the area under floriculture at all India level hadincreased from 53,000 hectares in 1993-94 to 1.54 lakh hectares in2007-08(Table 2.1). The annual compound growth rate (ACGR) of thearea was 6.65 percent, while the ACGRs of production of loose andcut flowers were 8.87 percent and 17.43 percent respectively. Thehigh rate of growth in the production of cut flowers is obviously dueto the steadily growing domestic and export demand for these flowers.The area under high-tech floriculture in India is very small comparedto other countries. The proportion of the area under high-techfloriculture to the total floriculture area is 70 per cent in Netherlandsand 90 per cent in Colombia, whereas in India it is hardly 500 hectaresaccounting for just 0.56 per cent of the total area under floriculture,while the rest was under traditional flowers (Thippiah, 2005)

Table 2.1 : Growth of Area and Production of CommercialFlowers in India

Area ProductionYear (In 000ha) Loose flowers( 000MT)

Cut flowers(Million Nos)

1993-94 53 233 5551994-95 60 261 5191995-96 82 334 5371996-97 71 366 6151997-98 74 366 6221998-99 74 419 6431999-00 89 509 6812000-01 98 556 8042001-02 106 535 25652002-03 70 735 20602003-04 101 580 17932004-05 118 659 20712005-06 126 694 27622006-07 147 778 36502007-08 154 805 3772ACGR(%) 6.65 8.87 17.43ACGR= Annual Compound Growth Rate.Source: National Horticulture Board, Indian HorticultureData Base 2006 and 2007-08.

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Note: Equation used for computing ACGR:Y = abteWhere Y is dependent variablea is interceptb is Regression coefficientt is Time (independent) variablee is Error term.

In log form the above equation becomes: lnY = ln a + t ln b.The ACGR (in percentage) is: ACGR = (Anti ln of b -1) X 100.

Regression Results: (n =15)Dep. variable R Square Adjusted R2 Standard

ErrorArea 0.821126 0.807366 0.139402

Production( Loose flowers) 0.928589 0.923095 0.109376Production

(Cut flowers) 0.874798 0.865167 0.282137

The production of loose flowers increased from 2.33 lakh tons to 8.05lakh tons and that of cut-flowers increased from 5,550 lakh numbersto 37720 lakh numbers during the period 1993-94 to 2007-08. Themajor traditional flowers grown are marigold, Jasmine, Rose, Asterand Crossanda and the cut-flowers with stem include Rose, Gladiolus,Tuberose and Carnation, Hibiscus, China Aster, several annuals suchas Gonphera, Cocks Comb, Golden Rod, Dahlia, Zinnia andSunflowers. The favourable factors such as warm temperature, soilconditions, and relatively cheap labour, wide-ranging agro-climaticconditions have helped the growth in the area and production offlowers in the country.2.3 State-wise Area under FloricultureAmong the various states in the country, the highest area underfloriculture in 2007-08 was found in Tamil Nadu with 27,800 hectares,followed by Andhra Pradesh, Karnataka and West Bengal in that order(Table 2.2). Three southern states together accounted for almost halfof the floriculture area in the country. A larger proportion of the areaunder floriculture in many states was concentrated around the

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suburban or urban areas in view of the proximity to the urban marketswhere the demand for flowers is growing steadily.2.4 Employment Opportunities in FloricultureFloricultural crops are highly labour intensive and have the capacityto generate substantial direct and indirect employment in rural areasas well as in urban areas. Estimates across different states in Indiaindicate that the employment generation of flower crops cultivationwas higher than other horticulture crops, food crops and commercialcrops. According to estimates, the employment generation offloricultural crops cultivation was 913 man-days per hectare inCrossandra and 1,210 man-days in Jasmine (Rao, 1997). A Study byUAS Bangalore, in Chitradurga district showed that the employmentgeneration of one hectare of Crossandra was 1,461 man-days per year.Of this, the female workforce accounted for 65 percent.It was estimated that conventional (traditional) floriculture provide adecent standard of living for nearly 10,000 farm households andemployment to 80,000 farm labourers and 2.5 lakh small retailers andflower vendors in the state of Karnataka (Prakash, 2002). In contrastto the traditional floriculture, the modern floriculture generated moreemployment. The range of employment per hectare in this activity was7,121 mandays (Thippaiah, 2001) to 7,468 man-days /hectareincluding technical labour (Prakash, 2002), whereas the food cropsgenerated 860 mandays per hectare per annum as against 143mandays for cereal crops (GOI 1996), Paddy 175 man-days, andSugarcane 285 days (Rao, 1997), to 305 mandays (Algumani, 1997),Groundnut 105 (Rao, 1997) to 225 (Alagumani, 1997) per hectare ofland.The high-tech floriculture employs more labour. However, the cost ofgenerating a human labour day is Rs. 1886 in high-tech floriculturecompared to Rs.87 in conventional floriculture and Rs.217 incommercial floriculture (Chengappa and Reddy 2000 and Prakash2000). This means that cost incurred by high-tech floriculture togenerate one human day is capable of generating employment to ninelabourers in the cultivation of field roses and 22 labourers inconventional floriculture. There are no estimates on total labourrequired in modern floriculture. But some case studies indicate thatthe total labour in 10 sample units in Bangalore were 981 which

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Table 2.2 : State-wise Area and Production offlowers in India: 2007-08

Area Production

States000

Hectares% Loose(MT) % Cut(000's) %

Andaman & Nicobar 0.0 0.0 0.0 0.0 2.54 0.00Andhra Pradesh 23.5 15.3 126.3 15.6 3.3 0.00Arunachal Pradesh 0.0 0.0 0.0 0.0 0.0 0.00Assam 1.0 0.6 0.0 0.0 0.0 0.00Bihar 0.2 0.1 2.3 0.3 10.6 0.00Chandigarh 0.0 0.0 0.0 0.0 0.0 0.00Chhattisgarh 2.2 1.5 8.6 1.1 0.0 0.00D & N Haveli 0.0 0.0 0.0 0.0 0.0 0.00Daman & Diu 0.0 0.0 0.0 0.0 0.0 0.00Delhi 5.5 3.6 5.7 0.7 1038.0 0.03Goa 0.0 0.0 0.0 0.0 0.0 0.00Gujarat 8.4 5.5 49.5 6.1 5063 0.13Haryana 5.7 3.7 64.5 8.0 1150 0.03Himachal Pradesh 0.5 0.3 0.0 0.0 530.75 0.01Jammu & Kashmir 0.3 0.2 1.3 0.2 218 0.01Jharkhand 0.0 0.0 0.0 0.0 0.0 0.00Karnataka 22.3 14.5 169.1 21.0 5550 0.15Kerala 0.0 0.0 0.0 0.0 0.0 0.00Lakshadweep 0.0 0.0 0.0 0.0 0.0 0.00Madhya Pradesh 3.8 2.5 2.0 0.2 0.0 0.00Maharashtra 16.7 10.9 69.5 8.6 5728 0.15Manipur 0.5 0.3 0.7 0.1 0.0 0.00Meghalaya 0.1 0.1 0.0 0.0 32.4 0.00Mizoram 0.0 0.0 0 0.0 36.6 0.00Nagaland 0.0 0.0 0 0.0 16.5 0.00Orissa 1.9 1.2 9.2 1.1 0.0 0.00Pondicherry 0.0 0.0 0.0 0.0 0.0 0.00Punjab 1.0 0.6 5.6 0.7 0.0 0.00Rajasthan 4.3 2.8 6.2 0.8 0.0 0.00Sikkim 0.1 0.1 0.0 0.0 33.8 0.00Tamilnadu 27.8 18.0 226.8 28.1 0.0 0.00Tripura 0.0 0.0 0.0 0.0 0.0 0.00Uttar Pradesh 8.4 5.5 12.4 1.5 3752 0.10Uttranchal 0.9 0.6 0.7 0.1 1455.45 0.04West Bengal 18.7 12.1 44.2 5.5 13100 0.35

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Fig. 2.1: State-wise Area under flowers in India: 2007-08 (Hectares)

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Fig. 2.2 : State-wise Production of loose flowers in India: 2007-08 (MT)

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ADES

H

UTTR

ANCH

AL

WEST

BEN

GAL

States

Tonn

es

20

Fig. 2.3 : State-wise Production of cut flowers in India: 2007-08 (000s)

2.54

3.3

0 10.6

1038

.0

5063

1150

530.

75

218

0

5550

5728

32.4

36.6

16.5

33.8

3752

1455

.45

1310

0

0

2000

4000

6000

8000

10000

12000

14000

ANDA

MAN

& NI

COBA

R

ANDH

RA P

RADE

SH

ARUN

ACHA

L PRA

DESH

ASSA

MBI

HAR

CHAN

DIGA

RH

CHHA

TTIS

GARH

D &

N HA

VELI

DAMA

N &

DIU

DELH

IGO

A

GUJA

RAT

HARY

ANA

HIMA

CHAL

PRA

DESH

JAMM

U &

KASH

MIR

JHAR

KHAN

D

KARN

ATAK

A

KERA

LA

LAKS

HADW

EEP

MADH

YA PR

ADES

H

MAHA

RASH

TRA

MANI

PUR

MEGH

ALAY

A

MIZO

RAM

NAGA

LAND

ORISS

A

POND

ICHE

RRY

PUNJ

AB

RAJA

STHA

N

SIKKI

M

TAMI

LNAD

U

TRIP

URA

UTTA

R PR

ADES

H

UTTR

ANCH

AL

WEST

BEN

GAL

States

Lakh

s(N

o's)

worked out to 98 persons per unit, the proportion of permanentlabourers being 43.73 per cent (Thippaiah, 2001). But the study ofPrakash (2002) shows the proportion of permanent labour at 8 percent and they were given industrial type of benefits. Several studies(for instance Alagumani et al, 1997) have revealed that, in additionto generating more employment, the flower crops enhance theproductivity per unit of land resulting in higher incomes to thefarmers.

21

CHAPTER IIIDEVELOPMENT OF FLORICULTURE IN KARNATAKA

This chapter gives an account of the development of floriculture inKarnataka. First of all, it gives a brief account of the historicalbackground of the floricultural development in the state. Secondly, itanalyses the growth in the area, production and value of commercialflowers in Karnataka at both the state and district levels.3.1 A Peep into Floriculture History of KarnatakaKarnataka is well known for floriculture right from the 18th centuryonwards. During Hyder Ali and Tippu Sultan periods and also duringthe regime of Mysore kings, floriculture received great impetus andthe colonial government also evinced lot of interest in this sector. TheLalbagh and Cubbon Parks established in Bangalore and theBrindavan Gardens established in Mysore in the early 20th centuryare testimony to these efforts. The flower shows are organized by theMysore Horticultural Society, Bangalore twice a year at the historicLalbagh Glass House.The farmers in the state have been growing traditional flowers suchas rose, chrysanthemum, tuberose, aster, jasmine, crossandra,marigold, champaka, gladiolus, and bird of paradise in the open fields.Some of these flowers are also being cultivated as cut-flowers in recentyears. Rose, carnations, gerbera, and anthurium were grown underprotective covers and these have gained momentum in the last 10years. Recently, new crops like lilies, calla lily, iris, limonium,alstroemeria gypsophila, liatris, lisianthus and freesia have alsoemerged as potential cut-flowers in the state. Modern cut-flowers arerelatively better in quality, have longer vase life and always fetch highunit price in the market. All these new trends have turned floriculturalactivity as an important agri-business activity in the state.3.2 Trends in Area and Production of Commercial flowers in

Karnataka from 1990-91 to 2004-05There has been a steady increase in the area under commercial flowersin Karnataka (Table 3.1 and Fig 3.1). The area has increased from

22

12,000 hectares in 1990-91 to 21,000 hectares in 2004-05 with acompound growth rate of 3.72 percent per annum. However, the areahad come down to 18,000 hectares in 2002-03 from 21,000 hectaresin the year 2001-02 due to drought. The production of commercialflowers increased from mere 61,000 tons to 151,000 tons during thesame period with a compound growth rate of 6.59 per cent per annum.Thus, although the growth in the area under flower crops hasincreased at a slow pace, flower production has gone up at a fairlybrisk pace.3.3 District-wise Trends in Area and Production of Floriculture

in KarnatakaAlthough the overall area under floriculture in the state has gone up,certain districts have witnessed a fall in the area. The annualcompound growth rates of the area under floriculture are negative formany districts (Table 3.2), the rate of decline being the highest inRaichur (ACGR = -26.52) followed by Dharwad (ACGR = -25.02).Among the districts registering positive growth rates, DakshinaKannada stands first with the ACGR of 18.25 per cent. Among thenewly formed districts, Koppal has recorded the highest ACGR of 23.34percent (Table 3.2b).Flower production in the state has also followed similar pattern, withthe growth rates for most districts being negative, except for thedistricts closer to Bangalore namely Bangalore (both rural and urban),Kolar, Tumkur and Chitradurga, and Bellary among the northernregion.

23

Table 3.1 : Trends in Area and Production of CommercialFlowers in Karnataka from 1990-91 to 2004-05

SL. No. YEAR AREA(000 ha)PRODUCTION(000 tons)

1 1990-91 12 612 1991-92 13 733 1992-93 14 814 1993-94 15 865 1994-95 17 1026 1995-96 19 1087 1996-97 21 1168 1997-98 19 979 1998-99 21 12810 1999-00 21 13211 2000-01 21 15712 2001-02 21 15713 2002-03 18 14714 2003-04 21 15115 2004-05 21 151

CGR 3.72 6.59Source: National Horticulture Board, Bangalore

Figure 3.1: Trends in Area and Production of Commercialflowers in Karnataka from 1990-91 to 2004-05

Area and Production of major flowers in Karnataka

020406080

100120140160180

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05Year

Area

in th

ousand

hac,

Prod

uctio

n in t

ons

AREA PRODUCTION

24

Table

3.2a

: Distr

ict-wise

Tren

ds in

Area

und

er Flo

ricult

ure i

n Ka

rnata

ka (1

993-2

005)

25

Table 3.2a: Regression Results ACGR (n=12)

District R square Adjusted R2 Standard ErrorBangalore U 0.858500 0.710725 0.134987Bangalore R 0.494443 0.168921 0.209863

Kolar 0.463668 0.136487 0.302375Tumkur 0.511156 0.462272 0.249907

Chitradurga 0.032645 -0.06409 0.326163Shimoga 0.288067 0.216874 0.621963Mysore 0.542542 0.496796 0.471776

D. Kannada 0.427411 0.370152 0.898085Kodagu 0.061477 -0.03238 0.486684Mandya 0.013239 -0.08544 0.456559Hassan 0.388377 0.327215 0.904952

Chikkamagalore 0.533728 0.487100 0.232987Bijapur 0.246736 0.171410 0.258623Dharwad 0.70253 0.672783 0.776391

U. Kannada 0.358278 0.294106 0.889072Gulbarg 0.127253 0.039979 0.409199Raichur 0.565459 0.522005 1.021719Bellary 0.016232 -0.08214 0.192812Bidar) 0.165413 0.081954 0.862674

26

Table 3.2b : District-wise Trends in Area -1998-2005 (For newDistricts formed since 1998)

District Davangere21Chamaraja-nagar

22Udupi

23Bagalkot

24Gadag

25Haveri

26Koppal

271998-99 816 719 456 331 615 1348 2281999-00 893 1325 505 447 678 1182 1752000-01 418 2802 505 302 947 1581 1992001-02 332 1080 427 221 923 2051 2192002-03 705 1122 371 221 648 1586 3142003-04 633 1410 453 304 762 1550 2272004-05 212 489 1470 342 1618 421 1158ACGR (%) 13.95 -6.7 11.24 -3.44 10.34 -9.98 23.24

Table 3.2b: Regression Statistics for ACGR (n=7)District R Square Adjusted R2 Standard ErrorDavangere 0.376737526 0.252085032 0.457610713Chamarajanagar 0.075012125 -0.109985451 0.578111572Udupi 0.2512805 0.1015366 0.435472617Bagalkot 0.403352035 0.284022442 0.283361156Gadag 0.194458045 0.033349653 0.506842769Haver 0.486814713 0.384177656 0.507779763

27

Table

3.3a

: Distr

ict-w

ise Tren

ds in

Flow

er Prod

uctio

n in

Karnata

ka (1

993-20

05)

28

Table

3.3a

Con

td.

29

Table 3.3a: Regression Results for ACGR (n=12)

District R Square Adjusted R2 StandardError

Bangalore U 0.189275085 0.108202594 0.46588577Bangalore R 0.06477311 -0.02874958 0.406724318

Kolar 0.027314394 -0.06995417 0.448796596Tumkur 0.258739828 0.184613811 0.395655927

Chitradurga 0.022648283 -0.07508689 0.533502628Shimoga 0.046159735 -0.04922429 0.783867462Mysore 0.233734975 0.157108472 0.678520061Mandya 0.004982726 -0.094519 0.675325564Kodagu 0.031080658 -0.06581128 0.73341631

D.Kannada 0.229179267 0.152097193 1.100955469Hassan 0.187810313 0.106591344 1.167728361

Chikkamagalore 0.018623 -0.07951 0.777596Belgaum 0.435976 0.379574 0.478825Bijapur 0.084412 -0.00715 0.297474Dharwad 0.348634 0.283498 1.23975U.Kannada 0.391903 0.331093 0.90919Gulbarga 0.001225 -0.09865 0.919273Raichur 0.529512 0.482463 1.15568Bellary 0.225056 0.147562 0.444223Bidar 0.028469 -0.06868 0.887133

30

Table 3.3b : District-wise Trends in Production -1998-2005(For new districts)

Year Davangere Chamarajanagar Udupi Bagalkot Gadag Haveri Koppal

1998-99 5647 2499 1922 2209 1829 7555 770

1999-00 4968 6824 2132 2423 2212 7913 1065

2000-01 2646 27602 2738 2039 6091 15128 1113

2001-02 3172 10286 2047 1386 6149 18477 1189

2002-03 6056 10748 1976 1386 6079 13886 1904

2003-04 4498 11592 2163 1889 4472 12592 1208

2004-05 897 3743 12976 2535 15645 2301 9928

ACGR (%) -16.02 4.85 21.4 -1.66 32.22 -9.26 35.27

District R Square Adjusted R2 Standard Error

Davangere 0.321731623 0.186077948 0.600106001

Camarajanagar 0.016689535 -0.179972558 0.861845223

Udupi 0.36926975 0.2431237 0.599983916

Bagalkot 0.021622668 -0.174052798 0.268003476

Gadag 0.707947353 0.649536823 0.425855108

Haveri 0.08891294 -0.093304472 0.736734016

Koppal 0.586100937 0.503321124 0.600807969

Table 3.3b Regression Results for ACGR (n=7)

Among the old districts, Raichur district witnessed the highestnegative ACGR of -27.67 percent followed by Dharwad and UttarKannada districts in that order. Interestingly, four of the seven newlyformed districts have registered positive growth in flower production(Table 3.3b), Koppal district showing the highest positive ACGR of35.27 percent followed by Gadag and Udupi in that order.

31

3.4 Crop-wise Area and Production of commercial flowers in Karnataka

The latest data (Table 3.4) shows that the total area under commercialflowers in 2006-07 was 23,017 hectares with a production of 1,91,940tons. The area under flowers was dominated by Marigold with almosta quarter of the total area under flowers (24.19%), followed by Jasmine(19.19%) and chrysanthemum (17.28%). Most of the small farmersgrow these traditional flowers under open conditions. Production ofmarigold was the highest (44397 tons) in the year 2004-05followed by chrysanthemum (41843 tons) and Jasmine (27586 tons).From the point of view of the value of flowers produced, jasmineaccounted for the highest proportion of the total value of flowers, 25.42percent, followed closely by Chrysanthemum, with 23.39 percent(Table 3.4) among cut flowers, rose occupies the first position in thearea (1815 hectares) followed by Carnation (173 hectares), gerbera (71hectares), bird of paradise(47 Hectares) and Anthurium (37 hectares).Production of rose stood at 4510 tons in the year 2006-07, while thatof anthodium, carnation and gerbera was 97, 73 and 71 tonsrespectively.

1 Aster 1542 15203 1498

2 Crossandra 2131 10112 2174

3 Marigold 5664 57329 4151

4 Jasmine 4493 29090 9052

5 Chrysanthemum 4046 56474 8329

6a Tuberose: Single 966 9382 1804

6b Tuberose: Double 152 272 78

7 Gladiolus 216 498 323

8 Rose 1815 4510 1980

9 Bird of Paradise 47 61 3

Contd.32

Note : (1) Area figures for Flower Crops viz., Orchids, Carnation,Anthurium, Gerbera and Statice should not be takenup for totaling. Tube - Rose (double), Gladiolus, Rose,Bird of Paradise, Golden Rod, Calla Lilly, Orchids,Carnation, Anthurium, Gerbera and Statice Cropsshould not be considered while totaling, for thereason that the area and productionfigures for thesecannot be given in terms of hectares and tonsrespectively.

(2) Data include the area, production and value of cut flowersgrown under hi-tech floriculture also and they cannot beseparated from the aggregate data for reasons explainedelsewhere.

Source : Karnataka, Dept. of Horticulture, Horticulture CropStatistics of Karnataka State at a Glance 2006-07,Bangalore.

10 Salldago / Golden Rod 24 62 26

11 Calla Lilly 5 16 240

12 Orchids 0.2 0 1

13 Carnation 173 73 283

14 Anthurium 37 97 492

15 Gerbera 71 71 62

16a Statice: Free flower flowering Variety 67 94 3

16b Statice : Seasonal variety 50 39 1

17 Other Flower Crops 1916 14349 5113

Total - Commercial Flower Crops 23,017 1,91,940 35,953

33

Table 3.5 : Percentage Shares of Different CommercialFlowers in the Total Floriculture Area, Production and

Value in Karnataka, 2006-07.

Sl.No. Flower

Percentage to totalarea

Percentageto total

Production

Percentageto totalValue of

Production1 Aster 6.59 7.69 4.212 Crossandra 9.10 5.11 6.103 Marigold 24.19 28.99 11.664 Jasmine 19.19 14.71 25.425 Chrysanthemum 17.28 28.56 23.396a Tuberose: Single 4.13 4.74 5.076b Tuberose: Double 0.65 0.14 0.227 Gladiolus 0.92 0.25 0.918 Rose 7.75 2.28 5.569 Bird of Paradise 0.20 0.03 0.0110 Salldago / Golden Rod 0.10 0.03 0.0711 Calla Lilly 0.02 0.01 0.6712 Orchids 0.00 0.00 0.0013 Carnation 0.74 0.04 0.7914 Anthurium 0.16 0.05 1.3815 Gerbera 0.30 0.04 0.1716a Statice: Free flowering

Variety 0.29 0.05 0.0116b Statice: Seasonal

variet Variety 0.21 0.02 0.0117 Other Flower Crops 8.18 7.26 14.36

Total - CommercialFlower Crops 100 100 100

Source: Government of Karnataka, Dept. of Horticulture, Bangalore34

Fig. 3.2 : Percentage Shares of Different Commercial Flowers in theTotal Floriculture Area in Karnataka, 2006-07.

1542 2

131

5664

4493

4046

966

152

216

1815

47 24 5 0.2 17

3

37 71 67 50

1916

0

1000

2000

3000

4000

5000

6000

Aste

r

Cros

sand

ra

Marig

old

Jasm

ine

Chry

sant

hamu

m

Tube

rose

: Sin

gle

Tube

rose

: Dou

ble

Glad

iolus

Rose

Bird

of

Para

dise

Sal ld

ago

/ Gol

den

Rod

Calla

Lilly

Orch

ids

Carn

atio

n

Anth

uriu

m

Gerb

era

Stat

ice: F

ree F

lowe

ring V

ariet

y

Stat

ice: S

easo

nal V

ariet

y

Othe

r Flo

wer

Crop

s

Flow ers

Are

a(H

a)

Fig. 3.3: Percentage Shares of Different Commercial Flowers in the TotalFloriculture Production in Karnataka, 2006-07.

1520

3

1011

2

5732

9

2909

0

5647

4

9382

272

498 45

10

61 62 16 0 73 97 71 94 39

1434

9

16

10016

20016

30016

40016

50016

Aster

Cros

sand

ra

Marig

old

Jasm

ine

Chrys

anth

amum

Tube

rose

: Sing

le

Tube

rose

: Dou

ble

Glad

iolus

Rose

Bird

of P

aradis

e

Salld

ago /

Gold

en R

od

Calla

Lilly

Orch

ids

Carn

ation

Anthu

rium

Gerb

era

Stati

ce: F

ree Fl

ower

ing V

ariety

Stati

ce: S

easo

nal V

ariety

Othe

r Flo

wer C

rops

Flowers

Prod

uctio

n(To

ns)

35

Fig. 3.4: Percentage Shares of Different Commercial Flowers in theTotal Value of Floriculture products in Karnataka, 2006-07.

1498 21

74

4151

9052

1804

78 323

1980

3 26 240

1 283 49

2

62 3 1

5113

8329

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Aster

Crossa

ndra

Marigo

ld

Jasmin

e

Chrys

antham

um

Tubero

se: Sin

gle

Tubero

se: Do

uble

Gladio

lus Rose

Bird o

f Para

dise

Sallda

go / G

olden

Rod

Calla L

illy

Orchid

s

Carnat

ion

Anthu

riumGe

rbera

Statice

: Free

Flower

ing Va

riety

Statice

: Seaso

nal Va

riety

Other

Flowe

r Crop

s

Flowers

Valu

e in

lakh

Rs.

3.5 Trends in Crop-wise Area under Commercial Flowers in Karnataka

Trend analysis was used to find the growth in the area undercommercial flowers in Karnataka from 1994-95 to 2004-05 (Table 3.6).The trend showed that the area under rose has decreased at acompound growth rate of 1.26 percent. The area under other looseflowers has increased as indicated by the ACGR. The area underJasmine has increased at 1.15 percent annually. Similar trend wasobserved for the area under Aster (CGR 1.08%), Marigold (CGR 7.28%)and Gladiolus (CGR 23.9%). There was a negative growth in the areaunder other loose flowers such as Chrysanthemum (-0.4) andCrossandra (-0.89%).The area under cut flowers gerbera and anthurium has increased.While the area under gerbera went up at the rate of 14.65 percentper annum, that of anthurium rose at the rate of 7.70 percent.However, the area under Carnation decreased at the rate of 3.60percent.

36

Table

3.6:

Tren

ds in

Crop-w

ise Area

und

er Co

mmerc

ial Flow

ers in

Karn

ataka

from

199

4-95 to 200

4-05

(Area

in H

ectar

es)

Sou

rce:

Gov

ernm

ent o

f Kar

nata

ka, H

ortic

ultu

re D

epar

tmen

t, La

lbag

h, B

anga

lore

37

Fig. 3.5: Trends in Area under Rose in Karnatakafrom 1994-95 to 2004-05

Fig. 3.6: Trends in Area under Gerbera in Karnatakafrom 1994-95 to 2004-05

Area under Gerbera in Karnataka

0102030405060708090

100

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

Year

Area in

Hect

ares

Area under Rose in Karnataka

1000110012001300140015001600170018001900

1994 -95

1995-96

1996 -97

1997-98

1998 -99

1999 -00

2000 -01

2001-02

2002 -03

2003 -04

2004 -05Year

Area in

Hect

ares

38

Fig. 3.7: Trends in Area under Carnation in Karnataka from 1994-95to 2004-05

Area unde r ca rna tion in Ka rna taka

01 02 03 04 05 06 0

1 9 9 4 -9 5

1 9 9 5 -9 6

1 9 9 6 -9 7

1 9 9 7 -9 8

1 9 9 8 -9 9

1 9 9 9 -0 0

2 0 0 0 -0 1

2 0 0 1 -0 2

2 0 0 2 -0 3

2 0 0 3 -0 4

2 0 0 4 -0 5

Yea r

Prod

uctio

n in to

ns

Fig. 3.8: Trends in Area under Anthurium in Karnatakafrom 1994-95 to 2004-05

Area under Anthurium in Karnataka

507090

110130150170190210230

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

Year

Prod

uctio

n in t

ons

39

Fig. 3.9 : Trends in Area under Jasmine in Karnatakafrom 1994-95 to 2004-05

Fig. 3.10: Trends in Area under Marigold in Karnataka