The Hindu Business Line : Bloom time for floriculture sector

THE doubling of customs duty on cut flower imports from 30 per cent to 60 per cent is likely to benefit the growers of orchids and chrysanthemums, as the increased levy is expected to curb the imports at cheaper prices.

Florists mainly in Kolkota, Mumbai and New Delhi import orchids and chrysanthemums at lower prices by heavily under-invoicing the flowers, sources said. Orchids are imported from Thailand, Malaysia and Singapore, and chrysanthemums are imported from Africa.

The Union Government's proposed move to hike the customs levy is a welcome step, said Mr Nadeem Ahmad, President, South India Floriculture Association. Imported orchids, which are cheaper compared to roses, are being used as substitutes in bouquets, he said. "As Indian consumers are not keen on their preferences, this had worked well for the florists."

In India, orchids are mainly grown in Tamil Nadu, Kerala and the North Eastern States. "Increasing duties alone will not help, as the traders heavily under-invoice the imports. Efforts should be made to see that importers bring in these flowers at a fair market price," said Mr K. S. Ramakrishna, Managing Director, Karuturi Floritech.

Among the cut flowers, the import of roses has been banned past two years, after it was found that the domestic growers were affected. The domestic cut flower market is estimated to be over Rs 500 crore, the sources said.

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