High cost of imported technology, lack of proper transportation and direct flights to flower marketing areas are some of the problems plaguing the floriculture industry in the country, a study by Tata Economic Consultancy Services (TECS) has pointed out.
The study conducted by TECS for Agricultural and Processed Food Export Development Authority (APEDA) says that the ailing floriculture industry needs financial restructuring, including waiver of interest on borrowed capital for the units and conversion of debt into equity or convertible debentures.
On the marketing side, the sector needs support like registration with overseas arm, efforts for removal of European Union duty, air-freight subsidy, cold chain storage and extension of export promotion councils to auction sales.
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According to DGCIS data, though the overall floriculture export trend is on the rise, the vital growth rate has shown a sharp decline to 8 per cent from 22 per cent in the previous year. In value terms, export income for 1997-98 stood at Rs 81 crore which increased by 20 per cent to Rs 97 crore in 1998-99.
The statistics show that the exports for the first nine months of 1999 were around Rs 85 crore, but they fell by nearly 8 per cent to Rs 79 crore in the same period of 2000.
APEDA sources said that it had approved the recommendations of the TECS study. They said the measures suggested by the report fell within the banking framework and no fresh infusion of funds was required by lenders.