A top Dutch expert foresees "enormous potential" for floriculture growth in India. To keep the growth momentum going, his advice is: focus on building the domestic market and upgrade quality. "What you should aim is that 80 per cent of your production can be for your growing domestic market. There is an enormous domestic market waiting for you, if you can provide the quality." In flower market, the key issue is quality, said Dr Doeke Faber, Chairman of the Association of Flower Auctions in the Netherlands (VBN) - the hub of world flower trade - who knows about the global floriculture industry and trade like the palm of his hand.

Dr Faber, on a visit to the national capital, was accompanied by Mr Jo Wijnands, Senior Researcher at Wageningen Agricultural University and Research Centre, who has published a number of scientific studies. In an interview to Floriculture Today, Dr Faber said his visit followed an assessment by the Netherlands Embassy in New Delhi and the Government of India, that there are possibilities of collaboration between the two countries in fields like floriculture production, trade, development of hardware and software and consultancy.

"I don't foresee an export market for flowers from the Netherlands here in India. . .but we do see possibilities for our breeders, our growers, our backward linkages. . .We want to share with India - a potentially important player in terms of production and consumption - issues that are of mutual interest and that will help build a strong Indian horticultural sector"

"I don't foresee an export market for flowers from the Netherlands here in India... but we do see possibilities for our breeders, our growers, our backward linkages. . .For that reason, we would like to share with India our knowledge, our research and so on. We want to share with India - a potentially important player in terms of production and consumption - issues that are of mutual interest and that will help build a strong Indian horticultural sector"


Meetings and Visits
While in the capital city, Dr Faber had discussions with Union Agriculture Minister Sharad Pawar and Delhi Chief Minister Sheila Dikshit, and went round sites proposed by Delhi government for developing a modern flower market, as also the existing markets in Delhi, Gurgaon and Noida. "We are willing to talk to anyone who wants to share their ideas with us and with those who want to further strengthen Indian horticulture," he said. Delhi, Dr Faber observed, is a big market. The rapidly increasing group of high income people as well as the changing life styles are important factors. More and more consumers with high disposable incomes may go in for purchase of flowers and plants. "What we are specifically looking at is where and how to develop an effective and efficient market place that can meet the demand for flowers and plants by millions of people in the Delhi area." Asked whether Dutch companies would be interested in sourcing flower supplies from India, Dr Faber pointed out that some Indian flowers are already being marketed in the prestigious VBN auction centre in the Netherlands. Indian flowers are reaching other countries as well - Russia, Germany, Japan . . . But, he is convinced that India, as also China, instead of focusing on the export market, should first concentrate on the domestic market. "Or, these could be parallel developments - keep the highest quality flowers for the export market and the rest for the domestic market." Markets like Bangalore, Delhi, Kolkata, Mumbai have a big potential for growth.

More paying at home?
He cited the instance of a Mexican exporter,- a lady - who wanted to be seen as a celebrity exporter to Aalsmeer. She then discovered that she was making less money by sending flowers to Aalsmeer than by selling in Mexico city itself. That was because export prices minus transportation costs were lower than domestic market prices in Mexico city "Therefore, the market may be right near you, with all its advantages." Similarly, he said, India, with a population of over a billion, is a big market. Flowers are becoming part of life for those whose incomes are rising. What is needed is to promote the use of flowers by making them part of people's lives - not just for weddings, religious ceremonies and the like, where traditional flowers are used. "You have to develop a culture for flowers".

Dutch auction system
While discussing market developments in Delhi with the Chief Minister, in the context of her plans to set up a new, modern, wellequipped flower market, Dr Faber dwelt on the merits of the Dutch system of auctions. In The Netherlands, he explained, the market places - the auctions - are owned by farmers' cooperatives. More than 90 per cent of the growers are members of cooperatives. "They own the auction centres. The auctions provide for transparency in trade and price formation." When flowers are sold, each and every stem is accounted for. The farmer knows, which flowers are sold at what price, and who has bought them. Dr Faber said the Chief Minister, however, had reservations about wholesale adoption of the Dutch auction system in India. She would prefer a system to suit conditions in India, which has its own laws. The land for the market was being provided by the government.

Quality maintenance
About what needs to be done in India to develop its floriculture sector, Dr Faber said a prime necessity is a high quality cold chain,Both the substrates are not recognized as friendly products. from the grower to the collection place and to the markets located far off. That would help to maintain the quality of the flowers. Therefore, a controlled growing and post-harvest environment will enhance quality. At the same time integrated pest management, provision of clean water, application of necessary nutrients are also important inputs to grow good flowers. Extension and training in both production and management should be made available to all growers. After a look at the flowers coming into the wholesale market in Connaught Place in Delhi, Dr Faber feels there is room for upgrading quality. Surely, consumers would be willing to pay more for good quality flowers. Replying to a question, the Dutch expert said the Netherlands growers cannot compete with the growers in India in terms of cost. The Dutch are high cost producers. But they can compete on quality. Their quality of flowers is very high. The European customer is very choosy and critical. He wants the best quality. The Netherlands exports more than 90 per cent of the production to Europe, three percent to United States and two per cent to the Far Eastern markets. The Dutch floriculture industry tries to stay ahead of its international competitors by innovating faster and better than its nearest competitors.

Breeders' rights
The question of breeders' rights figured in the discussions with Sharad Pawar. As Dr Faber views it, the Indian stand of having bilateral deals with breeders/growers in other countries should be a first step. Since India wants to be a global player in floriculture trade, it may run into problems, if it eventually does not sign a multilateral agreement. India has reservations about the 1991 UPOV treaty on the ground that it wants to protect its farmers. He pointed out that in roses alone, more than 100 new varieties were coming into the market each year. To be able to produce these latest varieties and to market them successfully in India, "you make sure that you play the rules of the game". At the same time, there could be problems for Indian flowers, if the breeder's rights are not honored. For instance, if Indian flowers are reaching foreign markets and no royalties were paid for such flowers, the breeder has the right to confiscated them..

Billion dollar target
Asked to comment on former President Abdul Kalam's exhortation to the Indian floriculture industry to keep a target of one billion dollars of flower exports in five years, Dr Faber felt it was more a kind of a political statement. It should be construed as a "signal" from the government to the floriculture sector in India. The underlying message to the industry is, "We would provide facilities to become a world player. Wake up and start growing." What are the strengths of African countries, which are now keenly competing in the international markets? In most countries like Kenya, Ethiopia and others, Dr Faber said, the growers are mainly non-Africans. They come from Europe, but also from India. One of the biggest producers in Kenya is an Indian. They have all arrangements in place, and they have the internationally recognized MPS label, by which the trade knows that flowers have been grown in a sustainable manner, by labour that is not exploited and by using minimum inputs such as water, plant health protection, nutrients, and energy. Also Nairobi airport makes available modern storage facilities for flowers. Quality is maintained from the farm to the domestic airport, and from there to the European florist or super market.

Chinese plans
About China's plans to become a big floriculture player and the functioning of the auction centre in Kunming, Dr Faber said one of the Dutch auctions had a small stake in the auction centre in the initial stage, "but not any more." The Kunming centre has not been a big success so far, because a wholesale market has been allowed to continue to function nearby. To make auctions work, a regular and sufficient supply of flowers is essential. But in Kunming, most flowers were sold through the wholesale market, where there is no quality control and no transparency. The supplies to the auction centre have therefore been less than expected.

Dr Faber wanted the Delhi Chief Minister to learn from the Chinese mistake while developing the new market in Delhi. Growers should be asked to go the new market and sell. India has now 60,000 hectares under cut flower production, besides a large area for growing traditional loose flowers. The area under floriculture is expanding by leaps and bounds. For tapping the full potential of India's growing flower power, the pithy advice from the two visiting Dutch experts is: Improve, improve, improve - quality is a 'must'.