The Agricultural and Processed Food Products Export Development Authority (APEDA) plans to set up a fund to help the floriculture industry. Over the last five years, the industry is in recession with more than 40 per cent floriculture farms in shut-down mode.
The fund would primarily help buying new planting material. The industry is in the red as the farms have huge overhead costs and do not have adequate returns.
The floriculture exports are worth about Rs 305 crore and the domestic business is in the region of Rs 600 crore. The domestic floriculture industry was facing stiff competition from African countries. Kenyan floriculture companies can sell below Indian prices, as they have to pay 50 per cent less freight cost. Rise in air traffic from India has not resulted in reduction of freight cost. Government help is needed to reduce freight charges.
To further encourage the floriculture industry, the APEDA, with the help of the Union Commerce Ministry, is setting up five market-cum-auction centres across the country.
The Ministry has given a one-time grant of Rs 25 crore for setting up the facilities. The centres are coming up Mumbai, Bangalore, Noida and Kolkata. The Mumbai centre will be set up in four months and the Bangalore centre in two months time.
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| Posted : 7/31/2006 |
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