As the Indian floriculture industry braces itself for a new export season, the bullish sentiment witnessed over the last few years seem to be missing.
While established players paint a rosy export picture, struggling entrepreneurs – many of whom have defaulted on borrowings – are not so optimistic.
Several small stand-alone floriculture units have borrowed heavily since they started operations and are buckling under massive interest payouts.
Though shipping for Christmas went without problems, the general indication is there could be a shortfall of 30-40 per cent in volume terms compared to last year.
However, the Bangalore office of the Agricultural & Processed Food Export Development Authority, (Apeda) maintained the export trend is satisfactory this year.
Floriculture exports for April-September 2002 registered a growth of 52 per cent in rupee value terms although they declined by nearly 30 per cent in dollar terms to $8.66m, compared to 12.64m for the same period last season, Apeda said.
Harsh Gupta of Manjushree Plantations, a BK Birla group company, said the general sentiment was encouraging and 'we are seeing a positive trend as there is a slight upsurge in production and at market.
'We have entered new markets in Germany and the UK, apart from the traditional Japanese and Australian markets and expect an overall growth of 20-30 per cent in volumes this year,' Gupta said.
Echoing similar sentiment a spokesperson for Sri Vasavi Florex & Industries Ltd, said: 'We expect an increase of 15-20 per cent in volumes this year.
'The prices are also good and we are getting about Rs 16-17 (21p) a stem as against Rs 14-16 last year' The number of exporters also seems to have decreased in Bangalore this season.
A leading exporter said the export risk is high as sluggishness in the global economy is creating inconsistent demand patterns.
Moreover, Kenya and South Africa have become aggressive in the global market. Fortunately, the domestic market has emerged more strongly and has turned saviour for several growers,the exporter said.
