Suggesting a Sustainable

Marketing Plan of Floriculture in

Bharuch-Narmada-Surat
Programme area of AKRSP (I)

(in the backdrop of)

THE ROSE WADI PROGRAM

Presented by:
Byomkesh Mishra
Institute of Rural Management Anand
Organisation Trainee: AKRSP (I)
 Project Backdrop
 The Rose Wadi Program (September 2002)
 Promotion of Floriculture: Alternative Livelihood
options to tribal farmers
 AKRSP (I) with support from Tribal Sub-Plan (TSP)
 Netrang Cluster (Valia and Zagadia)
 15 beneficiaries
 1400 grafts of English Rose (Hybrid Gladiator Tea-
Red variety)
 Cultivating 0.5 acres Wadi land
 3 years duration
 Constraints after 1.5 years - Market
 Scope
 Bharuch-Narmada-Surat Programme Area
 Fresh flowers only – Traditional & Cut
flowers
 The Rose Wadi Program
 English Rose (Hybrid Gladiator Tea-Red
variety)
 Domestic Markets only
 Wholesale Markets- Bharuch, Surat, Baroda
 Retail Markets- Rajpipala, Baroda, Anand,
Surat
 Objectives
 To analyze the performance and results of the Rose Wadi
program implemented by AKRSP (I) with the support from TSP
in the study area

 To understand the dynamics of Floriculture market (traditional

and major cut flowers like Rose) with respect to the status of
Floriculture in the study area

 To identify major domestic markets in the vicinity and

understand their demand-supply and preference pattern

 To identify existing practices, value-chain, issues, constraints

and challenges in flower marketing in the region

 To suggest a viable and sustainable marketing plan for

Floriculture produce of the beneficiaries of the Rose Wadi
program
 Sources of Data
 Primary Data Sources
 Beneficiary’s Interview
 Interviews with Wholesalers/Traders/Retailers
 Secondary Data Sources
 Records of AKRSP (I)
 Line departments
 Govt. Agencies & NGOs
 Other Literature
 Limitations
 Completely unorganized domestic market
 No reliable quantitative data or prior research
 Production
 Number of varieties cultivated
 Market
 market arrivals
 Prices
 Non response from Traders
 Margins
 Returns
 Time Constraint
 Present Status
The Rose Wadi Program
 8 beneficiaries discontinued cultivation
 Issues identified by beneficiaries
 High market risk
 Lack of a Marketing Infrastructure
 Limited potential of the nearby accessible
markets
 Perishability
 Lack of proper transport facility
 Unorganised Marketing
 Absence of a Marketing Plan
 Program
The Learning Process
Approach*
PROGRAMME (ROSE
WADI)
OUTPUTS TASK
REQUIREMENTS

NEEDS COMPETENCIE
S

BENEFICIARIES ORGANISATION (AKRSP)

(FARMERS)

DEMAND DECISION PROCESS

EXPRESSION

* Framework given by David C. Korten

Needs of Beneficiaries
Needs Landless Marginal/Small Medium/Large
farmers farmers
Immediate Food security, Additional/alternative Irrigation facility,
Sustainable livelihood options Institutional credit &
occupation in the to stop seasonal extension facility
village to stop distress migration
migration and high
indebtedness

Short term Improving their quality Irrigation facility, Improving productivity

of life from the Institutional credit & of land,
present sub-human extension facility Agricultural
conditions inputs, Enhancing
household income

Long term Access to amenities like Improving productivity Basic infrastructure at

health, safe drinking of land the village level
water & education
 Outputs - Needs
 Outputs – Immediate needs of the marginal
farmers and small farmers without a sustainable
irrigation facility
 High centrality
 Medium & Large farmers – better options available
 Criteria of selection not specified -TSP & AKRSP (I)
 Criteria (assured irrigation facility) – interested
farmers left out
 No involvement of Women – participation in
economic activity
Task requirements -
Competence
 Tasks requirements (Objective)
 Planning
 Studying Demand System
 Market linkage
 Selection of beneficiaries
 Capacity building
 Logistics
 Input supply
 Monitoring & Evaluation
 Competence
 Technical
 Social
 Motivational

 Tasks of Market Linkage and laying Infrastructure – Neglected

 Marketing skills in the Organisation
 Demand Expression –
Decision Process
 Most difficult fit
 Mechanism of demand expression
 Beneficiaries selected in haste – Inappropriate
selection
 Criteria of selection not specific – TSP & AKRSP (I)
 Inadequate dissemination of information
 Decision Process- Ensuring Participation from all
sections of Society
 Village Institution approach
 Economics of English Rose
Cultivation

Expenditure Total (Rs. per year)

Flower grafts 1400 x Rs. 8.5 = Rs. 11900 (provided by TSP)
Urea 75 Kg x Rs. 8/Kg 600
DAP 200 Kg x Rs. 11/Kg 2200
Potash 100 Kg x Rs. 16/Kg 1600
Pesticides 2.4 Kg x Rs. 400/Kg 960
Electricity for motor (Yearly) 1500
Local labour 7 days x Rs. 25 x 12 2100
Travel (Rajpipala market) 15 days x Rs. 30 x 12 5400
Total
Including cost of flower grafts 26260
Excluding cost of flower grafts 14360

Source: Beneficiary Interview

 Incomes and Profits*
Lean season (May to September) Peak season (October to April)
No of flowers sold (per visit) 150 No of flowers sold (per visit) 450
Price per flower Rs. 1 Price per flower Rs. 1
Total (per day) Rs. 150 Total (per day) Rs. 450
Number of market visits ( per month) 15 Number of market visits ( per month) 15
Income (per month) Rs. 2250 Income (per month) Rs. 6750
Total (per year) Rs. 27000 Total (per year) Rs. 81000

Profit (considering whole year as Profit (considering whole year as peak

lean season) season)
• First year (after accounting for Rs. 740 • First year (after accounting for Rs. 54740
expenditure on flower grafts) Rs. 12640 expenditure on flower grafts) Rs. 66640
• Second and Third year • Second and Third year

Actual Profit
• First year (after accounting for expenditure on Rs. 32240
flower grafts) Rs. 44140
• Second and Third year

*Selling at Rajpipala Market

 Annual Production* &
Profits
Heads First year Second year Third year

Flowers sold 120000* 120000 120000

Income at Rs. 1 per 120000 120000 120000

flower
Income at Rs. 0.5 per 60000 60000 60000
flower

Expenditure* 26260 14360 14360

Profit (Rs. 1 per flower) 93740 105640 105640

Profit (Rs. 0.5 per 33740 45640 45640

flower)
*Assuming average 2 flowers produced by 500 plants (50 % of the total
live plants) at a time, every third day
Channels of Marketing

FLOWER PRODUCERS

COMMISSION
AGENTS
COMMISSION
AGENTS

RETAILERS WHOLESALER/TRADER

RETAILERS

RETAILERS

ULTIMATE CONSUMERS
 Demand Analysis
Demand of Traditional Modern (Cut
flowers flowers)
Steady Religious purposes Institutional buyers
Personal adornment
Decoration of homes

Seasonal Festivals Celebrated days

Marriages Marriages
 Competition Analysis
 Export oriented commercial floriculture units
 Import from Maharashtra and Karnataka
 Domestic markets - huge, growing and more assured
market for the commercial producers
 Non-exportable grades of flowers or the excess flower
production which somehow could not be profitably exported
by them
 Competition increases whenever there is a slump in the
export markets
 Better quality – domestic market fails to provide premium
 With increase in western influence on life styles and rise in
purchasing power of people, the demand of modern flowers
has increased in small cities too
 Issues/Problems in
Marketing
 Absence of an organised market – major
constraint
 Scattered and Small scale production
 Unorganised marketing
 Seasonality
 Transportation and storage
 Non-availability and non-accessibility of a
permanent market
 High Price fluctuations – Risk
 Lack of infrastructure
 Absence of a Marketing Plan
 Major Results and
Findings
 Inadequate fit achieved between
 Outputs-Needs
 Task requirements-Competence
 Demand expression-Decision process
 Impressive Economics of flower cultivation
 Encouraging annual profits at present scale of production
 Absence of a Marketing System
 Rose Wadi Project - comparative advantage of low
cost production
 Unorganised marketing, transportation, non-
availability and non-accessibility of a permanent
market – Major reason of failure
 Recommendations
 Marketing strategy prior to Production strategy
 Organized Marketing - Cooperative
 Market linkage – Prominent Retail points
 Marketing Infrastructure
 Value Addition skills – Include women
 Local Market development – Value addition skills to landless
 Linkages with Institutional buyers
 Beneficiary Selection
 Small/ Marginal farmers
 Labour requirement- Landless
 Irrigation facility to Small farmers
 Subsidies for drip irrigation and sprinkler irrigation
 Low Cost Production
 Organic Manure
 Low cost technology
 Focussed study to prepare a Marketing Plan for the Rose Wadi
Project
 Suggestions for a
Marketing Plan
 Product
 English Rose- Impressive Economics
 Some Traditional Flowers
 Value addition – bouquet, garland, decoration
 Price
 Low cost technologies
 Organic Manure
 Compete with others
 Place
 Prominent retail points & Institutional buyers- Rajpipala,
Baroda, Surat
 Wholesale market- Bharuch, Surat
 Promotion
 Packaging & labeling- Impart skills
 Brand name of AKRSP (I)
 Organic Roses
 Tribal Livelihood Enhancement
Thank You