THE EFFECT OF LOCKDOWN ON THE GLOBAL FLORICULTURE INDUSTRY - IMERT
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Sambodhi ISSN: 2249-6661
(UGC Care Journal) Vol-44, No.-1(III), January-March (2021)
THE EFFECT OF LOCKDOWN ON THE GLOBAL FLORICULTURE
INDUSTRY
Dr. Rupendra Gaikwad
Associate Professor, MM's IMERT, Pune
Mr. Prakash Tambe
Research Scholar, PGRC, MM's IMERT, Pune
Abstract
Flowers are produced in India from the ancient time and having demand in the market, which helps to generate the
employment to small and marginal farmers. In the recent years, flowers are produced on the commercial basis and has a
profitable agri-business in India and worldwide. Farmers started destroying the flowers due to the nation-wide lockdown
resulted from the rapid spread of corona virus.
In this study, researchers have also tried to find out the effect of the lockdown on export and import of the flowers.
Now, people are buying only essential food items and healthcare goods. As the flowers are non-essential commodity,
customers give last preference to flowers. Flowers are perishable goods i.e. it cannot be stored for more than 7-8 days and that
too with controlled temperatures. Since government announced the complete lockdown to control the spread of pandemic, all
wholesale market were closed. Hence, all growers and traders of flowers faced huge losses.
The researchers have used only secondary data in the present study. It was collected from various websites and online journals,
which are acknowledged. Top 10 flower importing and exporting countries were taken as a sample in the current study. These
countries have major share in the global flower market.
This study will be helpful to understand the demand of the flowers in worldwide markets and use of technology which may
help to extend the shelf-life of flowers for more than 7-8 days, This will help the buyers and suppliers to manage the demand
and supply of the flowers in market.
Key words: Floriculture, Import Export of flowers, agri-business, Lockdown effects.
Introduction:
Floriculture industry is growing day by day so that expectations are rising from flower producing countries, flower exporters
and flower importers for better future in the flower production and marketing. Most of the times, flowers are considered as
emotional product because they symbolise love, concord and praise. For the events like Marriage, Party, Christmas, New
Year’s Eve, Valentine’s Day, Mother’s Day, Dassehra, Diwali and so many functions the demand for flowers increases which
helps in dragging up sales to large scale. As a result, the global flower industry is getting bigger and bigger, driving the
production, trading, and consumption to grow year after year.
But in the year 2020-21, due to COVID-19 virus outbreak, every country announced the lockdown. The transportation across
the borders was stopped. Government permitted only essential commodities to transport but flowers being nonessential
commodity, floriculture industry suffered huge losses during lockdown period.
In the present study, to understand the effects of the lockdown on floriculture industry, researchers have carried out the study
on export import of flowers from India. They have also studied the status of other countries floriculture industry through
secondary data.
From this study, researchers found that due to COVID 19 pandemic, production and sales of flowers were adversely affected.
It is decreasing and many countries have stopped production and sales of flowers. To avoid the spread of corona virus most of
the countries have decided the go for complete lockdown. As a result, export and import has totally stopped. Flower is never
the first priority to stay alive during pandemic. So consumers give second priority to the purchase of flowers. In case of many
other commodities, if production goes down then rate in the market increases but in this situation the definition of demand
and supply is completely altered. In many countries, even production has been slowed down. They decided to decrease the
rate of flowers to sale it in the market.
Significance:
The present study will be useful to understand effects of lockdown on floriculture industry of various countries. The study
will be helpful for new growers to start commercial business in floriculture segment. This will help to understand the demand
and supply of flowers from various countries also.
Review of Literature:
Nanda Kasabe (March 2020) in her article stated that due to the lockdown, rose growers from Maharashtra suffered the
losses up to Rs. 60 lakh per day. Due to the pandemic, government imposed lockdown from 25 March 2020. Therefore, most
of the events like marriages, birthdays, various festivals etc. were cancelled. Due to lockdown, not only export market but
also domestic markets were closed. The main domestic market like Delhi, Bengaluru, Hyderabad, Indore, Mumbai, etc. were
closed due to that demand of the flowers in the market has been decreased.
Melly Maitreyi M L (April 2020) in this article the author stated that famers dumped tonnes of marigold, chrysanthemums,
lily, jasmine, and other locally grown flowers due to the lockdown. Many small flower vendors also shut down their shops.
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Copyrightⓒ2021AuthorsSambodhi ISSN: 2249-6661
(UGC Care Journal) Vol-44, No.-1(III), January-March (2021)
There was no other option to the farmers than dumping the flowers as the flowers are perishable goods and cannot be stored
for a longer time.
Rutam Verma, Vishwanath Kulkarni (April 2020): in this article, the authors took a view of famers and traders about the
lockdown losses in floriculture business. Mostly Jasmine flower comes in harvesting in the mid-March. But due to lockdown,
flowers were not able to be sold in the market, hence, the famers suffered huge losses during this period.
Jeevan Verma (April 2020): In his article, he interviewed the flower growers about the losses during the lockdown. One
grower says due to lockdown markets were closed so that they threw flowers on the street. But the cattle can be fed on them
and villagers are taking them as cattle feed.
Objective of the study
To study the lockdown effects on floriculture business in local as well as global market.
Research Methodology:
This study is based on the secondary data. Secondary data was collected from websites, online magazines, online news
articles etc. In this study, only top 10 countries were selected for study. The countries were selected on the basis of
production of flowers in the year 2018.
Data Analysis and Interpretation:
Graph 1. Top 10 flowers producing countries (by share of the global production 2018)
1%1% 1% The
2% 3 1% Netherland
Columbi
7 % a
Ecuado
% r
9 Belgiu
% m
52 Malaysi
% a
Italy
15
%
Israe
l
The Netherlands is the largest flower producing country in the world with about 52% contribution of the annual flower
production. As per the graph flower production in Columbia (15%), Ecuador (9%), and Kenya (7%) are projected to record a
rapid growth in the coming years.
Country wise effects of lockdown on floriculture industry
Flower exports and imports are an essential part of the global flower industry, contributing a huge amount of turnover every
year. The turnover of global flower market reaches more than Rs. 26000 crore per year with a 9% growth every year. This
indicates a constant positive development of the direction. But now there is a huge impact of corona virus on floriculture
industry. Near about 80% Dutch flowers production were demolished. Country has no solution due the lockdown of all
countries. So many countries had decided to lockdown to avoid/stop the spread of Corona virus. This happened for the first
time in the floriculture industry.
Flower Exports from India The Netherlands
Netherlan
d
1518.9
160 1425.3 2
0 1312.9 1360.5 1377.0
6 1275. 8
3 1 1181.3
1111.2 2
140 1
0 7
120
0 526.21
329.7 441.8
100 6 268.9
200. 2
0 100.2747.5 1 121.8
9 3
800
2018 2019 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
December January February April May Ju Jul
March n y
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Copyrightⓒ2021AuthorsSambodhi ISSN: 2249-6661
(UGC Care Journal) Vol-44, No.-1(III), January-March (2021)
From the graph it is clear that in the period of covid-19 situation export of flowers from India to Netherland is decreased.
Data compared with financial year 2018-19 to 2019-20, it is clear that export from India in April 2019 is 100.27 MT which
is decreased nearly half in the April 2020. The Netherlands is the central hub for global flower trading activities. The nation
is the world’s top business centre of flowers. Due to the effect of lockdown flowers are being destroyed at the flower
auction centre in Aalsmeer, Netherlands. The demand of the flowers goes down as a result, supply goes down.
Kenya
Keny
2 a
1.8 1.8
3 8
1.4
1.3 1.3 9
1 4
0.9
3
0.6
9
0.41 0.43
0.3 0.3
0. 0.1 5 1
4 0.1
2 6
0.
2018 2019 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
December January Marc April May Ju Jul
February h n y
In Kenya, flowers are the second-largest source of currency and eared about $1.15 billion annually. The major market for
Kenya is Europe and now Europe is locked down. Most flowers are sold through auction in the Netherlands. Near about
seventy percent of cut flowers from Kenya are sold to Europe. Now situation is change, from the graph it is revealed that
India export flower to Kenya in the year 2019 is higher than year 2020. The graph clearly shows that in the month of
February 20 and March 20 due to lockdown export of flowers from India to Kenya is decreased as compared to previous
year month. But after the open lockdown in the month of Jun 20 and July 20 export of flowers is increased.
Italy
Ital
y
45 403.2
0 385.8 4
40 342.67 1 358.
0 333.2 334.5 8
8 292. 320.3 4
35 6
0
30 158.8
0 127. 2
3
74.
25 9 41.7
0 18.88 8.3 18.4 7
0.02 1 6
20
2018 2019 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
December January February April May Ju Jul
March n y
As shown in the graph, Italy is the major market for India’s flower. As compared data of 2020 year to 2019 year it was
clearly understand that export of the flower from India to Italy is going down and which directly effect on the Indian
growers business. As shown in the graph, in the month of April 2019 India export 18.88 MT to Italy but in the month of
April 2020 it was just 0.02MT and same thing was happen in the month of May June and July.
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Copyrightⓒ2021AuthorsSambodhi ISSN: 2249-6661
(UGC Care Journal) Vol-44, No.-1(III), January-March (2021)
Germany
German
y
140 1251.7
0 1126.9 1
120 1112.5
1032.8 4 1019.0 2
0 978.1 7 955.1
6 6
1
552.47
7.2
3 436.8
232.0
4
2018 2019 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
December January February April May Ju Jul
March n y
From the graph it is revealed that export of flowers from India to Germany in the month of April 2020 is 12.35 MT
which is low as compared to April 2019 is 98.88 MT. same thing happen in the month of May, June and July. Germany, the
largest consumer market in Europe (in both population and purchasing power). But after cancellation of mass gatherings
and closing other functions floriculture industry get huge loss.
Ecuador
Ecuado
r
2 1.84 1.89
1.8 1.68
1.57
1.6
1.4
1.2
1
0.8
0.6
0.4 0.18 0.19 0.26
0.1 0.04
0.2 0 0 0
0
2018 2019 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
December January February March April May Jun July
In Ecuador floral industry contributes approximately 1 per cent to the country’s total gross domestic product (GDP). But after
the lockdown effect Ecuador growers face huge loss. For India, Ecuador is one of the major country for export of flower but
from the graph, it is clear
that in the financial year 2018-19 India export flowers to Ecuador in very good quantity but after the covid-19 situation India
unable to do business with Ecuador.
UK
From the graph it is clear that in the month of March 2019 and April 2019 India export flowers to UK was 1530.01 MT and
74.68 MT respectively but in March 2020 and April 2020 it was 1236.75 MT and 1.1 MT respectively this is due to the
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Copyrightⓒ2021AuthorsSambodhi ISSN: 2249-6661
(UGC Care Journal) Vol-44, No.-1(III), January-March (2021)
lockdown. Near about 650 businesses in the UK produce ornamental crops, from that flowers business UK floral industry
contribute £1.4 billion in country’s GDP annually.
India
U
K
1530.0
160 1459.2 1
0 7
140 1229.9 1206.6 1236.7
0 1142.4 7 9 5
7 990.1
120 917.9 4
0 8
100
0
320.1
194.7 6
800 133.1
74.6 4 35.3 69.2
1. 5 2.8
600 8 7 5
1 5
2018 2019 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
December January February April May Ju Jul
March n y
In the year 2018-19, India doing foreign business of Rs. 571.38 Crores from the flowers export itself. The major export market
for India is Germany, United Kingdom, United States, United Arab Emirates and Netherlands. India having 300 plus export-
oriented units located in the different area from that Karnataka, Andhra Pradesh and Tamil Nadu having more than 50% of the
floriculture units. Indian government doing technical collaborations with foreign companies, which helps in increasing share of
Indian floriculture in world trade.
Due to the coronavirus situation, most of the events have been cancelled by government so that demand of the flowers like
Marigold, Rose, Chrysanthemum etc are going to down or there is no demand for such flowers. After announcing lockdown by
Indian government main local market like Mumbai, Pune, Bengaluru, Delhi, Jaipur, etc. is totally stop. Europe, Dubai, Japan
and UK are also major export market of India but due to lockdown they also closed so that demand of the flowers decreases.
Before the Ugadi (in Andhra Pradesh, Telangana and Karnataka) / Gudi Padwa (In Maharashtra) festival tonnes of marigold,
chrysanthemums, lily, jasmine, and other locally grown flowers that were transported to wholesale markets in the city but due
to lockdown mostly flowers are discarded because there were no buyers.
Findings:
1. The Netherlands is the largest flower producing country in the world with about 52% contribution of the annual flower
production.
2. India exported 320.16 MT cut flowers to UK during July 2019 but during July 2020, it has dropped down to 69.25 MT.
Similar figures can be seen for April, May and June of 2020 as compared to year 2019.
3. export of flowers from India to Netherland in April 2019 is 100.27 MT which is decreased nearly half it is 47.59 MT in
the April 2020.
4. Kenya is one of the major export market for India because when lockdown is open then export of flowers from India to
Kenya is increased.
5. In the month of April 2019 India export 18.88 MT to Italy but in the month of April 2020 it was decreases up to 0.02MT.
Conclusion:
Corona virus will hit long lasting effect on each and every business. To avoid adverse impact on the cut flower business,
many countries have stopped exporting flowers and concentrating only on essential goods. Also the buying behaviour of
consumer has been changed. Consumer is focusing on only essential goods and flowers are not the essential item. Flowers
are perishable product. The sale has been stopped but we cannot stop growth of flowers. Therefore, it needs to be stored in
cold storage. Flower can be stored for 7-8 days in cold storage but due to spread of corona virus all boundaries of country
were sealed and will not open till spread of corona stops. Due to which, there is a huge loss of flowers all over the world.
Now in this situation, government has to take some supportive action towards florists. If our government extends financial
support to growers it will generate the foreign currency and it will be ultimately helpful to strengthen our economy.
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Copyrightⓒ2021AuthorsSambodhi ISSN: 2249-6661
(UGC Care Journal) Vol-44, No.-1(III), January-March (2021)
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up-to-rs-60-lakh-per-day/
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