PROJECT REPORT ON

SUPPLY CHAIN MANAGEMENT OF CUT-FLOWERS IN INDIAN MARKET
Masters of Business Administration BATCH (2009-2011) OF SOOLINI UNIVERSITY OF BIOTECHNOLOGY AND MANAGEMENT SCIENCES
MBA-4TH Sem University Roll No. 205

Supervised By: Mr. Kuldeep Rojhe

Submitted By:Chetan Punj

PREFACE
The present report pertains to research project ³Supply Chain Management Of Flowers In Indian Market´. A case study is primarily conducted to examine the significance, efficiency, advantages of scheme of participative management and ots practical validity in securing efficient supply chain in the market prevailing. The management tools and management techniques are further analyzed and further viewed for the study of the case, which would help in the up-liftment of the current market trends. The scope of study extends to all organizations which are engaged in any kind of service. Sincere efforts have been undertaken to present true picture. But certain discrepancies might have crept in because of time constraint, place constraint and certain other unavoidable circumstances, beyond my control.

Acknowledgement
³No man lives on an Island journeying through life alone.´ The truth in this statement is not far to seek, man¶s interdependence is known to exist from times immemorial behind every successful event of our life, and we often find many hands involved. This manuscript is no exception. This page is thus dedicated to each and every one who has in some way or other helped in the successful completion of this Project. I would like to express my gratitude to Prof. J. B. Nadda, Director and all faculty members of Business School of Business Management who provide me opportunity to work for the project ³ Supply Chain Management of Flowers in Indian Market´. Under their guidance and also for providing me invaluable guidance during the course of my study. It is both my pleasure & duty to acknowledge with all regards to Mr. K.C. Rojhe ± lecturer in Marketing, My project guide for his valuable guidance My sincere thanks are due to Librarians of various libraries such as SILB Solan, Y.S Parmar University, Nauni, and Centre, State Library S olan. I am grateful to persons such as growers, merchants, brokers, retailers involved in the process, for their valuable support and help in collecting the required data needed for the study. No words can adequately express my debts and thanks to my friends for encouraging, helping and supporting me.

INDEX
Serial No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Preface Acknowledgement Introduction Review of Literature Research Methodology Major Cut Flowers Prevailing in the Indian Flower Market Result and discussion Marketing management Marketing cost and margin of intermediaries Marketing problems Summary and conclusions Suggestion and recommendation Reference Annexure TOPIC

grafting and marketing of flowers and flower produce. ferns. In Meghalaya flower lovers originally practiced floriculture as a hobby. cycads. Pune. gerberras. . Coconut pla nts also provide shade to the orchids. Chennai. In Tamil Nadu. The government has come out with a scheme to provide the growers with disease free planting material. garden tools and implements for a minimum area of 2000 square metres along with a package of practices for commerc ial production. marigolds. flowers such as rose. Here plantation crops like coconut are used as an intercrop for growing orchids. statice. plant protection chemicals. chrysanthemum. Chandigarh. gladiolus. the growing demand has lead to flowers also being grown for commercial reasons. gomphrenas. In the Andaman and Nicobar Islands there are around 2000 species of flowering plants. It also includes production of planting materials through seeds. Consumption of flowers in the southern States is much higher than in the northern States. it deals with the cultivation of flowers and ornamental crops from the time of planting to the time of harvesting. strelitzia reginae. Centres where modern flowers are in demand are big cities like Mumbai. carnations. Today. These flowering plants include around 110 species of orchids. Lucknow and Calcutta. roses and different kind of house plants. perfume industries and as garlands. zinnias. Being a branch of horticulture. malligai. of which nearly 215 are endemic to these islands.INTRODUCTION Floriculture is the art and knowledge of growing flowers to perfection. helichyrsums. A few of the recommended ornamental crops are orchids. Other flowers. succulents. marikolundu and carnations are grown. budding. Hyderabad. They need well drained sandy loam soil. Flowers are used by florists. bamboo and ornamental medicinal plants also grow naturally in forests. asters. Edward Rose and Andhra Red Rose are two varieties of roses grown in the plains of the State. chrysanthemums. liliums. marigold. flower rentals. cuttings. jathi malli. Delhi. Meghalaya is known for a variety of rich flora and species of orchids that grow wild. Bangalore. organic/inorganic fertilizers.

Prakasam. Cuddapah. Guntur. cost incurred and margin of cut flowers. Effective use of the factors of production is a major concern of planning at micro levels. Rangareddy. the state has not able to make much headway in this area. Flowers that are cultivated in Andhra Pradesh for floricultural purposes are the rose. To prove into the marketing problems faced by the growers and suggest strategies to overcome the problems related. Keeping in view the above facts. chrysanthemum and crossandra. jasmine. an attempt has been made to understand marketing management of some flowers such as carnation.in the study an attempt has been made to study the supply chain management and marketing of cut flowers in the Indian market : To study the marketing channels. The main districts that produce these flowers are Hyderabad. crossandra. it is also influenced by an in appropriate market place and improper handling which decreases the shelf life of the flowers. In Punjab floriculture mainly includes the cultivation of different species of gladiolus. Some of the flowers cultivated here are wisterias. dahlias and lilies. Village Majra. jasmine and marigold. floriculture involves the growing of flowers like rose. Directorate of Horticulture have done excellent work in creating awareness among the farmers of the state about the latest technique of production management but farmers are hesitant to adopt them as they are not aware about. how to market their product efficiently to achieve their goals of profitability. gladiolus. carnations. Kurnool. The pace of development of the floriculture industry in the present is very slow because it is conditioned by the poor adoption of techniqu es of production and ineffective transportation of the final produce. . In spite of having niche advantages and in view of increasing demand at domestic and international markets. near Chandigarh and village Dappar near Patiala are main centres of gladiolus production in Punjab. Ananthapur and Chittoor. The cool temperate climate of Jammu and Kashmir makes it the ideal place for growing flowers. tulips. Although.In Orissa. chrysanthemum and lilium grown in the northern region of India .

which includes ` 100 crores from modern flowers. infrastructure etc. a commission of . some inherit problems like non-availability of quality planting material high incentives of the enterprise requirement of higher level of technology for commercial floriculture. absence of adequate research. ` 28 lakhs in the 3 rd year and ` 40 lakhs in the 4 th year. Balasubramanayam (1997) summarized information about the technical and economical aspects of cut flowers. which included 24000 under traditional flowers and 10000 hectares under modern flowers. have been instrumental for the slow pace of d evelopment of this important field in the state. the literature has been reviewed for marketing channel and resource use efficiency aspects of flowers. Raghava (1996) reported that total area under flower corps on India was estimated to be around 34000 hectares. in the 2 nd year. Carnation. He pointed out that according to the agro-climate of Mercora in Karnataka. Oberoi (1997) stated that domestic market for floriculture in India should be given due emphasis on the commission agents or wholesalers. Lilium. The returns from floriculture products were estimated then to be ` 205 crores. agricultures etc. Gill and Aullakh (1993) reported that cut flowers production can be programmed for exports from the country. Rose and other Bulbous crops. development and training. Important flower crops being presently grown in Himachal Pradesh are Gladiolus.) Existing in the state. part of Himachal Pradesh are best suited for the cult ivation of most of popular kinds of cut flowers. Pune. Nasik and Maharashtra. According to his estimates a farmer can get more than ` 75 lakhs per hectare in the domestic market. Kaul and Dadlani (1995) reported that the total area under floriculture in Himachal Pradesh during 1993-94 was estimated at about 50 hectares. tourism. Marigold. unexploited market. Net profit per hectare has been worked out to be ` 40 lakhs.REVIEW OF LITERATURE Keeping the objective of the research in to consideration. Now withstanding the potential (agro-climate. He laid stress on the availability of cold chain from production poin to auction center for effective and efficient marketing. Chrysanthemum.

The study found that the domestic flower has seen a steady growth of almost 35% per annum as compared to the world flower market growth of 12%. The share of flowers towards total family income was estimated more than 50%. India will be amongst the top 5 flowers exporters in the world.10-15% is charged.81% of their total operational holdings under flower cultivation. In 2007-09 the National Horticulture Board has reported that area under floriculture in the country was 88000 hectares. to combat various diseases and pes ts. etc. It is predicted that by the year 2000. Preeti Sharma (1996) reported that in Himachal Pradesh floriculture farmers allocated 11. For achieving the same. irregularities in the marketing and production should be removed. producers should have an access to appropriate chemicals. Back up in the form of crop insurance will go a long way in instilling confidence in the growers to invest in this trade. loans or special schemes for the domestic growers should be drafted. Regulated auction house should be setup. .

Solan. DATA COLECTION Both primary and secondary data were used for this study. To study the Marketing management aspect the Delhi market was selected purposively to study the supply chain aspects of the selected flowers.RESEARCH METHODOLOGY SAMPLING DESIGN This study deals with the economics of production and marketing of commercial flowers grown in Solan district of Himachal Pradesh. a list of flowers growing pockets of the district was produced from the office of the Joint Director Horticulture. 5 wholesalers/commission agents and 10 retailers were selected randomly for detailed study. . costs and problems faced by farmers were obtained from wholesalers and retailers respectively. Carnation and Gladioli. the wholesale and retail market structure in Delhi. Multi stage random sampling technique was adopted in order to select the respondents. detailed information on the cost of cultivation of Marigold. Solan district was selected purposively because more than 45% of the total area under carnation and 30% area under Gladioli fall under the district. The second information was collected from various reports and publications of India and Director of Horticulture Shimla. During the course of navigation it was found that. from Chandigarh market. In the first stage. the ultimate sample of 30 (15 of each flower) flower growers was drawn by adopting simple random sampling procedure. In the second stage. marketing function. Finally. channels. their yield rates and pric es. from each selected pockets. a list of flower growers was obtained from the office of the department of the Joint Director of Horticulture Solan. The reference period of the study was 2009-2010 the primary data were collected on the well designed and pre-tested schedules through personal interview method from the selected farm household in the producing areas and wholesalers/commission agents and retailers in local Chandigarh market.

pp = Producers price pp/pc*100 . To study the marketing pattern the following concept of marketing cost and margins have been used for different agencies in different c hannels: a) Absolute Margin (am) = ms ± (mb + me) Where. ms = mb = me = Selling price of middleman Buying price of middleman cost incurred by the middleman b) Product Price Where. ps = pc = (pf) = ps ± pc Producers selling price Cost incurred by the producer in marketing of the product c) Producers share in the consumer¶s rupee (ps) : Where.Analytical Framework MARKETING: To estimate the marketing cost and margins of intermediaries µmode method¶ was used.

the results were interpreted by working out averages and percentages. The data collected by the survey method may have included memory. LIMITATION OF THE STUDY The study was based on the data collected for one year (2009 -10). bias of a limited type of the respondents. price spread etc. . which may not necessarily hold true for other periods as well. pc = mci = Cost incurred by the producer in the marketing of produce Cost incurred by the middleman Tabular Analysis Tabular method was used to study the marketing costs.pc = price paid by the consumer d) Total cost of marketing (tc) : pc + mci Where.

Three Basic Types Of Carnation . will not disappoint. whether single or many per stem. will be the large blossom on a single stem. which can be taken in late fall or winter and simply rooted in sand and placed in pots. also having several blossoms on one stem The carnation flower you are most apt to get if ordered from a florist. By and large. and a great deal of work goes into growing a carnation that can truly be a show piece.Carnations come in three basic types of plants:  Those having a single large flower on a single stem  Plants having a number of smaller blossoms on each stem  Dwarf varieties. however. The word Dianthus comes from the Greek. The easiest way to grow carnations is from cuttings.MAJOR CUT FLOWERS PERVAILING IN THE INDIAN FLOWER MARKET: Carnations Carnations belong to the Dianthus genus. and literally means the "Flowers of God". . and the blooms. The blossom's sweet fragrance probably has something to do with that. The meanings of the various colours of carnation flower often have to do with affection or love. and are sometimes referred to as Dianthus in seed and plant catalogs. These can also be the most difficult to grow. carnations are easy to grow in t he home garden. being truly specimen plants in many instances.

They are used in displays in many homes. Roses can grow as vine -like climbers or as bushes. among many other attributes. has been used by people as an element in perfumes for centuries. These favourites are often copied and then presented in a slew of different materials (often in silk material). Their fragrance and the beauty that they are famous for is what makes these flowers so highly sought after in all parts of the world. and its fragrance is also among the most popular flowers in the world. Almost all cut roses that are sold by florists today are the hybrid tea variety. You can find roses in other colors as well. they were associated with goddesses of love. In ancient Greece. known as Attar of Rose. the blossoms can set singly on its individual stems or also in clusters of up to a dozen on a single spray. Roses are reproduced more than any other flower. You can find more than 100 species of roses. and depending. and there are countless subspecies and cultivars. scent. Egypt and Rome. such as: blues. . with a few native to Europe. Northwest Africa and North America. Rose flower vary quite a bit in size. shape. Rose flower is undeniably fragrant and beautiful. The edible fruits produced from this flower is called rose hips and many people believe the fruit has healing properties. The most popular color is red as those flowers symbolize love and passion. Most of the rose species are native to Asia. Artificial varieties of rose are abundantly available. whites. An aromatic oil that is made by steam distilling petals of rose. pinks and yellows (these flowers are often hybrid). Red roses are a favorite gift for Valentine¶s Day and the flowers come in many different shades of red. size and disease resistance.ROSE Roses are flowering perennials of the genus Rosa. Different cultivars have been developed to emphasize color.

a great many gardeners plant. Gladiolus is normally identified by their tall flower spikes that are covered with showy funnel shaped flowers. flowering spikes every year. A gladiolus can bloom from spring through autumn. Normally. each corm will produce a few spikes. Primulinus Group: The plants in this group will flower from early summer to late summer. so it is almost guaranteed that if you can¶t find one in the right colour now. which is another reason for their popularity. The flowers at the bottom of the spike will open first and then the ones above them will open and so on until the entire spike is in bloom. Despite the extra care these tender perennials require. To store gladiolus. these flowers are originally from Africa and the Mediterranean. This gladiolus will produce one very thin spike per corm. Gladiolus makes a wonderful addition to the outdoor flower garden or the indoor flower bouquet. plant and replant these tall. These are the gladiolus that are most commonly used for things like corsages and floral arrangements. which look very similar to bulbs. they are actually from corms. Nanus Group: The plants in this group bloom in early summer. Dip the corm in a fungicide and allow the corms to dry for a few weeks before packing them away in a cool. While gladiolus can now be found in most parts of the world. This is not true. People commonly think that gladiolus come from bulbs.000 cultivars of gladioli and every year a few dozen are added to this number. The gladioli in this group normally only produce one flower spike from each corm. dry place. just wait and one will come on the market.GLADIOLUS  Gladiolus is a very popular flower for the garden. There are over 10. There are three groups of Gladiolus: Grandiflorus Group: The plants in this group flower from late spring to early autumn. And who can blame them. Gladiolus are very easy to cross-breed. dig up the plants 6 -8 weeks after their final bloom or before the first frost. Many people will only keep the corms that were produced by the plant that year and will discard any older corms. . Cut the stem off just above the corm. The corms of the gladiolus must be dug up and stored for t he winter in all but the warmest regions.

planting some of these great cut flowers is well worth the work. Some species will grow best when grown from seed but for the most part. Plant the corms the same way you would plant bulbs. well-drained soil in full sun to partial shade. Despite the work required to keep a garden full of gladiolus. .Gladiolus is propagated from either seed or through the multiplication of their corms. Gladioli grow best in fertile. gladiolus do very well when grown from their corms.

. Bright light preferred. There are many different kinds. There are thousands of varieties of Orch id species and over a hundred thousand hybrid Orchids. where they hold on with thin or thick roots and take in nutrients that fall to them. The last kind of Orchids are Saprophytic Orchids and there aren't many of these. They do not have any green leaves. There are many kinds of orchids you can choose from to grow. sunny window is preferred. There are many variations in size and shape of Orchids. with about a half day of sun. Paphiopedilums and Cymbidiums ate terrestrial Orchids. beginner Orchid growers don't normally seek these out. There are Orchid flowers that can be found with a very wide range of characteristics. flower spike blooms for about 2-3 months.  Dendrobium Orchids Care can be easy to not so easy. y y y Some Orchids do grow on the ground. flower spike blooms 2 -3 months.  Oncidium Orchids Care is easy to intermediate to easy. As they aren't very beautiful us ually.ORCHID Orchids are the second largest Natural Order in the whole world of botany. with Orchids existing in nearly every color and shade. and live on decayed vegetation. Here's a summary of some main orchid types:  Phalaenopsis Orchids Care is easy. flower spikes bloom 2 months. shade is preferred. as well as absorb sunlight that reaches them. usually in marsh land. Epiphytic Orchids grow mainly on rocks and trees. and are called Terrestrial Orchids . being very diverse.

 Miltonia Orchids Care is intermediate. shade is preferred. High humidity is important. flowers bloom 1-4 weeks. Cool paphiopedilum Orchids: Care is intermediate. flowers bloom about 2 months. Warmer temperature needed. Cattleya Orchids Care is intermediate in difficulty. sun preferred. often meaning these need to be grown in a greenhouse. flowers bloom a 2-3 months. indirect sunlight is preferred.  Paphiopedilum Orchids Warm Paphiopedilum Orchids: Care is easy to intermediate. sunny window is preferred. Cooler temperature ne eded.  Vanda Orchids Care is intermediate to difficult. flowers bloom about 1-2 months. . flowers bloom 2 months. shade ispreferred.

henryi and L. Lilies need a cold dormant period in order to thrive. even if they are not gardening types. autatum. Division IX ± This division is for All True Species and are and species that are original breeds. Lilies are bulbous perennials. These frequently have an unpleasant smell. japonicum and L. Many people.LILIUM/LILY Lily flowers are a very popular flower for the American gardener. Division VII ± Oriental hybrids are decendants of East Asian species. regale. including L. sargentiae. This means that they grow best in areas that get at least a cool winter. have some species of lily growing in their yard. Division V ± Longflorum hybrids are the descendants of L. If you live in . The lily plant is broken up into 9 Divisions. speciosum species Division VIII ± This division is for Other Hybrids. Candidum species and other European species. though some from Divisions I and II will grow in Zone 3 as well. L. Division II ± Martagon hybrids are lilies that are primarily species that are descendants of the L. martagon species. Division IV ± American hybrids are the descendants of American species. Division VI ± Trumpet and Aurelian hybrids are descendants of Asiatic species such as L. formosanum and L. L. Those Divisions are: Division I ± Asiatic hybrids are lilies that are descendants of asian species. These are normally combination species that are bred between species of two different divisions. Most lily plants grow in Zones 4-8. longiflorum species. Their bulbs differ slightly from the common bulb in that the bulbs are actually several fleshy scales that overlap to form the bulb. Division III ± Candidum hybrids are descendant of mostly the L.

Late season bloomers will flower from late summer until first frost.Zones 9 or 10 and you would like to grow lilies. a few can be found that like either alkaline soil or shade. a small lily plant will mature into a full sized garden filling plant in just a few years. In general. Most lilies like acidic to neutral soil in full light. The lily plant grows best in well-drained soil that has a good amount of humus or compost in it. Midseason bloomers will flower from early summer to midsummer. you will need to dig them up and cold store them for 2 to 3 months each year. lily flowers are in bloom from spring to autumn. The lily is certainly a best pick for those who are just starting out and a proven winner for those who have been gardening some time. . Lilies are so easy to grow that some varieties can be found growing wild in large numbers. Normally. but as with any species with this many varieties. Spring bloomers will flower from mid spring to early summer.

the number of retail outlets. proper packing areas. In recent years. The number of labourers who are operating in the marketing in the market was estimated around 125. It was found that on an average. There is no system of membership or commission to any organization. Lack of proper storage facilities. The flower business in Delhi is held under the categories of TRADETIONAL AND CUT FLOWERS. Delhi flower market is an open type market and has not even been granted authorized place to carry out the trade. The . high humidity and heat. CONNAUGHT PLACE WHOLESALE MARKET: This market is located near coffee home. Both the flowers are sold at wholesale level in different markets and have slightly different market structure. varieties of products. there has been significant growth in the domestic market. still remains irregular and unorganized. The market is characterized by wide price variations and poor realizations. There are about 50 wholesalers or commission agents who facilitate the sale of produce of the growers. baba kharag singh marg. flowers are dumped directly on the ground for exposure to the scorching heat and environment. near cannaught place. Delhi market has shown tremendous growth in the past few years undoubtedly in the wholesale marketing. As a result the producers remain deprived of the real worth of their produce affecting their income or earning adversely. with the expansion of floriculture industry.RESULTS AND DISCIOUSSIONS DELHI WHOLESALE MARKET STRUCTURE: Domestic flower trade has been totally an alien trade for the masses. the produce of at least 100 growers arrive in this market daily. Until now. thus damaging the quality of the product. no regulatory organization has come up in the flower marketing system to control the non-desirous activities in the market. and shops all stall rise to operational difficulties due to occasional rains.

The product range here was limited which mainly includes Rose.25% of sale price to the auctioneers. in Old Delhi area. Himachal Pradesh. The main sources of flowers are from in and around Gurgaon. Open auction method of sales was more prominent in the market. Karnataka. There were more than 12 different types of flowers marketed all around the year in this market. Haryana and Punjab. More verities are found to be arriving in the winters and maximum in March. Madhya Pradesh. through mutual agreement method has been observed. Chhatarpur areas. Gladioli. WHOLESALE MARKET FOR TRADITIONAL FLOWERS: There is only wholesale market for traditional flowers at Fatepuri ± Khari Baoli. Tuberose and other winter season flowers. The product range includes Gladiolus Carnation. Here. This market is operated fron 6:00 AM to 9:30 AM.commission agents charged a commission of 15% in the sales price from the sellers. Sikkim. one had to play a commission of 6. most of the growers sold their produce by themselves and during peak season their number goes between 150-200. and many other Exotic flowers. There were only 15-20 wholesalers or commission agents in the market. The main source of flowers are from Maharashtra. . It is a large market operated from 4:00 AM to10:00 AM. Utter Pradesh. 11:00 AM sale of flowers is through auction and direct sale . Direct sale of flowers is more prominent in this market. MEHRAULI WHOLESALE MARKET: This market is situated near Qutab Minar. In the auction system.

The channels adopted by the sample respondents for the marketing of flowers of different regions are:  Producer ± Wholesaler ± Retailer ± Consumer  Producer ± Forwarding Agent ± Wholesaler ± Retailer ± Consumer  Producer ± DRDA ± Wholesale r ± Retailer ± Consumer  Producer ± Cooperative Society ± Wholesaler . Flower consumers. various arrangements and contacts and ensure the flow of goods and services. This is followed by the dispersion of flowers to the consuming centres like Delhi. This gap is filled by various intermediaries working between producer and consumers including forwarding agents and retailers. Chandigarh. monetary needs and producers engagement in work on and outside the farm. Jallandhar. .MARKET STRUCTURE: The existing marketing system consists of first assembling of flowers at the central places on the main road -high ways. Ludhiana.Retailer ± Consumer  Producer ± Wholesaler ± Retailer ± Consumer  Producer ± Retailer ± Consumer The individual grower generally uses either of these channels depending upon the size of business. which are located far off from producing areas. They interact with each ot her to provide different marketing channels. stability of the marketing agency. have little direct contact with producers. whose activities evolve the mechanics of establishing the prices. These agencies constitute the important part of the system. economic position. and North Indian markets.

Sometimes. This agency was found common in Mandi. unloading and clearance of goods at various points during transportation. corporate offices. generally adopt this channel. This agency has developed various assembling centres in different parts of these districts according to the density of flowers growers. Sale through District Rural Development Authority: District Rural Development Authority is a Government agency who takes over responsibility of marketing of flowers. 15% commission from the sale value of the produce . Sales through Cooperative Society: These societies are the associations of the local flower growers responsible for marketing of flowers. hotels. agency is also involved in grading and repacking of the flowers at the assembling points. They picked up the produce from the assembling points and then transportation and sales were done in their names. loading. There are about 31 registered societies in the state and out of which 23 were found to be functioning properly. These agents arranged for the transport facilities. who had large marketable surpluses for sale. Due to the vested inter ests of few members in these societies the quantum of the sales was relatively less through this channel as reported by the growers.Sale through Forwarding agents: Forwarding agents in flower marketing are the persons who have links with the growers. Sale through Wholesalers: The growers. The transportation cost was charged from the producers in addition to 6% commission on the sale value of the produce. railways and bus transport employees and auto-rickshaw drivers in the market. They charged 10% commission on the sale value of the produce from the grower. wholesalers/retailers. Wholesalers in flower trade sometimes act as forwarding agents and commission agents too. The produce was then carried to district centre from where it was transported to the consuming markets. Kullu and Kangra districts. Societies are charged 55 commissions in lieu of their services rendered in the marketing. These wholesalers either purchased directly or through other forwarding agents.

Some retailers had export business in flower trade. some do not have their shops (roadside florists). Market Information: Market Information refers to all facts and their inter pretation bearing on the present on prospective market value of commodities. The cost of transportation from wholesale market. There were about 50 wholesalers found to be working in Delhi market. no systematic efforts have been in respect of flower trade in domestic ma rkets. Major source of market information to producers were reported to be wholesalers/commission agents.was charged from the growers. . consumer demand and movement of actual and potential supplies of these flowers in different markets. Sale through Retailers: Retailers brought produce either from auction market or directly frem the producers. Flower growers remain unaware of the prices. Unlike other agricultural products. forwarding agents or the persons of the area visiting these markets or telephonic enquiry. unloading. some retailers have their own shops. loading. grading and arrangements cost were borne by them. About 100 such retailers were reported in Delhi market. In floriculture trade. they usually seal flowers either as separate or as arrangements form also.

These benefits translate into greater sales. assortments. Net sales can increase by providing customers with better assortments. They connect customers with the vendors who provide the merchandise. retailers are in the unique position to collect purchase information customer by customer. transaction by transaction. is so sophisticated that the . where they want it.SUPPLY CHAIN MANAGEMENT Supply chain management is the integration of business processes from end user through original suppliers that provides products. which is directly linked to the vendor¶s computer. deliveries. As a result of their position in the supply chain. promotions. but knowledge about their customers plays a vital role as well. It is the retailers responsibility to gauge customers wants and needs and work with the other members of the supply chain wholesalers. (1) Fewer stock outs (2) Assortments of merchandise that customer¶s want. Not only does size generate power. higher inventory turns. Improved Return on Investment One measure of retailing performance is the ab ility to generate a target return on investment (ROI) An efficient supply chain and information system can increase net profit and net sales. Improved Product Availability An efficient supply chain has two benefits for customers through. Retailers may be the most important link in the supply chain. and lower mark downs for retailers. This information can be shared with suppliers to plan production. Retailers have increasingly taken a leadership position in their respective supply chains. manufacturers. services. transport ation companies. and inventory levels. Net profit can increase by either raising gross margin or lowering expenses. Its inventory management system. while at the same time reducing total assets. and so on ± to make sure the merchandised customer want is available when they want it. and information that add value for customers.

Thus. and inventory turns are high. since inventory investment. the total assets are also low. there¶s untapped opportunity for many retailers to improve their performance through better supply chain management. In sum. .retailer needs to carry relatively little backup inventory to stay in stock. In the following paragraphs the various stages of marketing functions and their management is being discussed to evaluate its operational efficiencies. is low.

Breaking at a node is generally only possible . For export they should however be picked somewhat tighter at the paint brush stage. Flowers are harvested by either snapping the stem off at a node.STAGES INVOLVED (CARNATION) There are 7 Stages: Stage 1: Harvesting Stage 2: Pre. For local market. The correct stage of harvest depends on the market for which the flowers are intended. although producing high-quality carnation. For optimum vase life. do not receive premium prices. or cutting off with a sharp knife or small shears. Good grading and bunching can enhance high quality flowers and result in increased returns.if picked too tight they will not open properly. The vase life will be determined by the harvesting stage .Cooling Stage 3: Grading Stage 4: Pulsing Stage 5: Packing Stage 6: Transportation Stage 7: Handling Stage 1: Harvesting and Assembling Many growers. and if picked too open they will not last very long in the vase. only 1-2 flowers per stem should be open. carnations should be cut when some of the flowers are fully open and the first petals are at an angle of 90° to the calyx. because the crop has been incorrectly harvested and incorrect postharvest practices have been applied.

As the maintenance of market quality is of vital importance to the success of the horticultural industry. but can lead to increased risk of pulling the plant and more stem rots due to a larger 'breaking wound'. Alternatively. This minimises handling and reduces losses from breakage. Harvesting is best carried ou t in the morning when the flowers are cool and turgid. A far better method is to use small carts with detachable li ners. the rates of which are influenced primarily by product temperature. Various different pre-cooling methods are depicted with the benefits and ambiguities of each shown. and should never be done in the heat of the day. Quality loss after harvest occurs as a result of physiological and biological processes. it is necessary not only to cool the product but to cool it as quickly as possible after harvest. cut flower stems can be laid on the top wires or netting and collected later. Through this review. Many growers still harvest by accumulating an armful of flowers as they move along the row. The process of pre-cooling is the removal of field heat which arrest the deteriorative and senescence processes so as to maintain a high level of quality that ensures customer satisfaction. Stage 2: Pre-cooling One of the most important factors affecting the postharvest life and quality of horticultural crops is temperature. The applicability and cooling efficiency of each are also ill ustrated. it is aimed to promote interest in precooling and encourage its use on a more widespread basis. This paper provides a critical review to portray pre cooling as an intricate part of temperature management and to highlight the importance of its utilisation for extending the shelf life and maintaining the quality of horticultural products with emphasis on cut flowers. Stage 3: Grading .with a young crop.

cytokines and sucrose solutions are recommended for enhancing the shelf life. Carnations are sold in bunches of 5 or 10 flowers. Grading is primarily done on stem length but other decisions must be made with regard to the following points: y y y y y y y Freedom from pests and diseases Blemishes on flowers or foliage Sleepiness of flowers Bent stems Slab sides and bullheads Split calyces Faded colours Flowers with split calyces should be clipped and bunched separately: they are not to be marketed as first grade flowers.Good grading and bunching can enhance high quality flowers and bring premium prices. a staggered bunch is preferred in some markets. Silver thio-sulphate. among the sample growers. but cannot improve a poor quality product. which increases the likelihood of damage. Growers need to check with their marketing agency as to its preference for bunching. Weak stemmed flowers should be cut down and sold as 'shorts'. Stage 4: Pulsing Pulsing is an important treatment given to the flowers before shipment to increase their storability. New Zealand has no grade standards for carnations. biocides. All first grade bunches should be sleeved. None of our respondents have practiced this operation due to lack of knowledge. Rather than have all the flower heads (especially standards) at the one height. hence is not a common practice in the study Stage 5: Packing . The technical knowhow was found to be lacking.

etc. in the market is determined on the arrivals. Each box contained about 800 pieces. Majority of the growers were found to be using gunny bags as a packing material. In the market. Price. the commission agents/wholesalers or their men proceeds the produce from the railway station or interstate bus terminals. also effected the price determination of the produce. but other factors like trains. In such a cases.Carnations spikes are normally packed in empty packed in empty tea boxes (20´ x 18´ x 12´). Stage 6: Transportation All the respondents having less than 800 stems lot were using bus as principal means of transporting flowers. weather conditions. weighing about 20 kg. Stage 7: Handling of Marketing Channels Of Cut Flowers Forwarding agents. . transporters handover the produce to commission agents/wholesalers as pointed out by producers against the receipt of the produce. Beside gunny bags were also used as a packing material in carnation. commission agents sell their produce the same day it arrives in the market. There is no cold storage/auction centres facility available in Chandigarh market. cooperative societies.

90 19.50 1.00 0.A 400. (A) Labour Cost 1.69 64.90 19.50 0.90 19. Labelling Pre-cooling Pulsing Grading Packing Labelling Carriage 1. 6.69 15.50 1.00 D.50 0.50 0.69 18.ITEMS 1. Wholesaler 400.50 1.91 .50 5.09 51.A.50 1.50 1.00 0.50 1.0 0.R.90 19. Pulsing 2.09 115.0 0. Total (B) Material Cost 1.20 25.25 0.50 1.70 0. 3.91 330.50 1.00 400. Total Costs 91. 4.25 0.25 0.0 0.50 1. 2.50 5.91 348.S.20 25.91 333.91 284.50 0.50 0.50 1.70 0.50 1.20 25.20 25.50 1.90 19. 400.00 0.25 0.00 Grower Average Sale Cost 2.50 0.00 CHANNELS C.0 0.09 4.09 66.50 5.00 0.0 0.69 40.50 0.50 0. F.70 0.70 0. Growers Net Price 308.69 - Total (C) Transportation (D) Commission of FA/DRDA/CS 3.50 5.00 Retailer 400. 5.50 5.50 0.20 25.50 1.09 69. Packing 3.50 1.D.50 0.25 0.70 0.50 0.

91 C.91 Through the above bar we can see that. £ ¢ ¡   ro ers et rice Retailer 51.91 .09 308.91 D. Total Cost Growers Net Price 91.S. the channels of Retailer are most profitable with 85.09 348. 66. Bar-Graph 1 Bar graph depicting the Cost and Return in marketing of carnation through different channels.A 69.DEPCS COST AND RETURNS PER CUT FLOWER OF CARONATION AVERAGE COST AND RETURN PER HUNDRAD CUT FLOWERS OF CARNATION REALIZED BY PRODUCER THROUGH DIFFRENT CHANNELS OF TRADE IN DELHI MARKET.09 284.09 330. 500 450 400 350 300 250 200 Total Cost 150 100 50 Column1 0 Channels of Marketing: F.D.91 Wholesaler 115.09 333.A.35% Profit.R.

10 5. Mail. Gross Price Received by the Producer 400 B. Etc.75 2. Therefore the marketing cost of wholesalers was calculated as: Table: 2 Marketing costs and margins of cut flowers borne by Wholesalers (per 100 flowers) CARNATION (Per 100 Spikes) ITEMS A.Marketing Cost and Margin of Intermediaries: More than 65% of the respondents marketed their cut flowers through wholesalers. Margin (Selling Price ± (Price Paid + Cost) 63. Selling Price of Wholesaler 480.) y Labour y Loading and Unloading y Spoilage 5.60 .75 D.10 4.10 Sub-Total 17. Cost component of Wholesalers y Communication (Phone.15 C.

The wholesalers were not doing any processing except for assembling of the produce coming from the producing areas and further selling it to the retailer. . On an average the total cost incurred by wholesalers per 100 flowers are higher in case of other flowers.

Table 3: Marketing costs and margins of cut flowers borne by Retailers (per 100 flowers) CARNATION (Per 100 Spikes) ITEMS A.00 21.25 10. Marketing Cost Components y Rent y Electricity y Communication and Sales Promotion y Depreciation y Local Transport y Labour y Spoilage y Packaging 35.5%.00 Selling Price Marketing Margin 810.00 18.25 The marketing cost borne by the retailers selling carnation was 182.00 15. . Buying Cost 480.75 B.00 25.75 12.00 10.00 Sub-Total Marketing Cost 147.00 182.25 the marketing margin earned by the retailer in carnation was 22.

Bar-Graph: Bar-graph depicting the comparison between selling price and marketing margins. we can see the difference between carnation selling price and marketing margin. 900 800 700 600 500 Selli g rice 400 300 Marketi g Margi 200 100 0 By the above. ¦ ¦ ¥ ¤ . that the marketing margin is less than selling price.

and ageing plantations. High fright rates. sometimes the flower spoil in the process of transport. packaging. including q uality seeds and planting materials. higher freight rates. organizing logistics is also becoming a critical factor for the Indian flower exporters. With increasing involvement of supermarkets in flower trade. . Instance were there that the µArhatias¶ of Delhi market devised the grower either by not reloading sale proceeds well in time or commission and other market charges rendered the producers to be dependent on intermediaries and the trade continues on good faith and at the mercy of the middleman. At the production level the industry is faced with challenges mostly related to availability of basic inputs. A low share of produce in consumer rupee is due to poor marketing practices being adopted by growers. the procurement of packing cases invariably falls short of their demand. 3. demands and changing consumer preferences. storing and transport has not attained proper knowledge as yet. Sometimes. inadequate support infrastructure. and challenges associated with quality and environmental issues. v ertical integration and innovation. and inadequate cold chain management. With regard to marketing. low availability of dedicated perishable carriers. The growers generally remain uninformed with the latest trends in the market prices. 2. arrivals. The farmer¶s knowledge about the right post harvest treatment. constraint in achieving economies of scale. Also.Marketing Problems: The Indian floriculture industry is faced with a number of challenges mainly related to trade environment. Few farmers adopted scientific pre-cooling and pulsing practices for reason of lack of technical know how. infrastructure and marketing issues such as high import tariff vis-a-vis African countries. major challenges faced by the Indian flower exporters are related to low level of product diversification and differentiation. the demand is less and supply is more. quality irrigation and skilled manpower. The packaging material was reported to be costly by the growers. Following are the major problems of MARKETING: 1. Due to the long distance.

. 7. Sometimes the shapes and size of the flowers are not as being expected. If the packaging material is low quality. the price fluctuates in markets. 6.4. Sometimes due to the increased demand. then also flower can spoil. Lack of cold stores 5.

The share of India's total floriculture exports is only 0.28 millions.07 % in the total cut flowers imports in the country and in total floriculture products. exports and growth rate of exports. India ranks 15th with 0. The trade in Foliages indicate that India has emerged as the top most supplier among the developing countries and have succeed in developing a sustainable market in the EU. worldwide imports and share of imports from the developing countries indicates that with rose imports from the developing Countries being 28. India's share is 0. sub tropical to dry temperature zones. has premium potential for growing cut flowers.42 % in the world exports to the EU. In a nutshell th e prospects and forecasts of the trade: The above figures on worldwide consumption. it is observed that the value of Indian exports were USD 0.79 % share.45 millions and that of foliage was USD 7.55 million has been ranked 20th in the world exporting countries to the European Union. In cut flowers. The floriculture industry in India can therefore continue to concentrate in this faster growing segment and undertake an aggressive marketing to increase the market share in US and in EU .SUMMARY AND CONCLUSION India is endowed with different agro-climatic conditions ranging from tropical. market size. India's floriculture exports with ¼ 35.5 % thereby indicating an excellent demand and a growing market.

The survey of the market further revelled that the produce of at least 100 growers arrived in this market daily and there were more then 150 wholesalers/commission agents and about 155 labourers operating in the market structure was studied by analyzing the degree of business concentration in respect of cut flower crops.The Important Channels In the Supply Chain Followed by The Growers in the Marketing of Flowers:  Producer ± Wholesaler ± Retailer ± Consumer  Producer ± Forwarding Agent ± Wholesaler ± Retailer ± Consumer  Producer ± DRDA ± Wholesale r ± Retailer ± Consumer  Producer ± Cooperative Society ± Wholesaler .Retailer ± Consumer  Producer ± Wholesaler ± Retailer ± Consumer  Producer ± Retailer ± Consumer  Producer± Consumer Forwarding agent channel was found to be the most popular.885 carnation flowers reached Delhi market through this channel. . since 55.

Objectives Of The Study:  To understand the supply chain management involved in the process of marketing of flowers.35% of profits. .  To estimate the marketing cost and returns. Findings of the Study:  The marketing channels or retailers are profitable for cut flower growers as it yields 85.  To understand the problems faced by cut flower growers and suggest ways and means to overcome them.

Suggestions  Setting up of a common market by the government  Setting up of a common price level  Government policies should be modified as per farmers needs  Provision of location specific  Provision of cold storage  Introduction of refrigerated transport system  Development of regulated domestic market  Introduction of crop insurance scheme against natural calamities  Training in grading of flowers as international standards  Liberal financial assistance to the floriculture .

gov. Raghava (1996) 2. Oberoi (1997) 6. Balasubramanayam (1997) 3. http://www.agriunlimited.com 10. National Horticulture Board (2009) 8. http://agriculture.com .indiabizclub. http://india. Kaul and Dadlani (1995) 5. Preeti Sharma (1996) 7. Gill and Aullakh (1993) 4.REFERENCES 1.in/citizen/agriculture/floriculture 9.

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