Seminar Course on Sectoral Framework 1

2010

Seminar Course on Sectoral Framework

Project Synopsis
The report aims at understanding the Indian Floriculture Sector. It probes the
reasons behind formidable growth of the sector over past decade, export
trends and challenges faced. The study is expected to provide insights into
economic potential of sector both within and outside India and Identifying
new markets for its exports considering competition from other countries

Submitted by
Bafpalbir Singh
Roll No. 117
MBA (IB ) 2009-11
IIFT, Delhi
Contents

Title of Project

Introduction………………………………………………………………………………………………3

Indian Floriculture Sector………………………………………………………………………..3

Objective of the Project……………………………………………………………………………….3

Scope………………………………………………………………………………………………………….4

Methodology……………………………………………………………………………………………….4

Chapter Plan………………………………………………………………………………………………..4

Expected finding / Conclusion……………………………………………………………………...5

References……………………………………………………………………………………………………5

2
Title
Analysis of Indian Floriculture Sector, Challenges face by its exports and identifying
new markets.

Introduction
Post globalization, floriculture has become one of the important commercial activities in
Indian agriculture. The industry has been growing at a CAGR of 25 percent over the past
decade, with production area growing at a CAGR of 6.89 percent since 2000-01. .
Marketing of cut flowers in India is much unorganized at present. Packaging and
transportation of flowers is also very unscientific Commercial floriculture in India is
going through a paradigm shift, where traditional flower cultivation is giving way to
modern hi-tech flower cultivation, which is evident from India's rising production and
exports. The potential for expansion of commercial floriculture in India, including
production for domestic and export sales of cut flowers and plants is unlimited
provided the country expands the production of existing products as well as the product
range. Floriculture has captured the interests of many new entrepreneurs into
agricultural sector in recent times. With perception on floriculture business potential
rapidly changing, the corporate have increasingly forayed into the sector. Eyeing a huge
potential in this sector, I have also developed an interest and may choose it as my future
entrepreneur Venture. Although there are certain challenges mainly related to trade
environment, infrastructure and marketing issues such as high import tariff vis-a-vis
African countries, low availability of dedicated perishable carriers, higher freight rates,
inadequate support infrastructure, constraint in achieving economies of scale, and
inadequate cold chain management.

Objective
The primary objective of the report would be a follows:

 Detailed analysis of the current Indian floriculture sector

 Exports and the future outlook for the sector

3
  Analyze the position of India as an exporter in the floriculture sector (both loose
flower as well as in cut flower) as compared to the other major competitor
 Major challenges faced by floriculture exports

Based on the study, conclusions about the sector would be drawn so as to formulate a
strategy for globally competitiveness and export growth by improving
processes/policies and identifying new market.

Scope
The scope would be limited to these categories:

 Floricultural crops (Rose and chrysanthemum)

 Cut and loose Flowers
 seeds, bulbs and dried flowers
 States and area under floriculture
 Export Markets
 Challenges

Methodology for research

Methodology used will be:

1) Defining the Scope and Objective of the project.

2) Data Collection.
a. Exports
b. Current market size
c. New markets opportunity
d. International v/s Domestic markets

3) Secondary research
a. Industry database
b. Analysts reports

4) Data Consolidation and Analysis

5) Conclusion and Recommendation

Chapter Plan
The Plan would be as follows:

1) Introduction

4
2) Methodology
3) Market Overview
4) Floriculture Production ( Indian - State wise Analysis)
5) Export Trends and domestic consumption
6) Challenges faced
7) Opportunities and Threats
8) WTO Regulations and India
9) Conclusion and Recommendations

Findings / Conclusions/ Recommendations

The report would analyze the future trends for the industry through understanding of
various constraints, limitations, opportunities and drivers existing for the sector in
India. Based on competitive analysis and demand analysis, the report would examine
the major competing nations and try to identify the new prospective market for exports.
It will recommend a strategy to be adopted to increase the competitiveness of the
Indian Floriculture exports in the global market.

Expected outcomes:

 Understanding domestic production and global demand (rose and chrysanthemum)

 Identifying the reason for growth of sector over last decade
 Understanding of the key challenges for sector’s growth
 Identifying new markets for exports


Bibliography

 Trademap.org
 WTO website for provisions
 Data on Tariffs and other Non Tariff Barriers levied by major markets
 Floriculture sector findings by DGCIS and UN Comtrade
 Sector Analysis Reports – Eximbankindia, Tradeinvest etc.