Demand for international flower auction market in Hosur gains momentum

A DPR prepared by flower growers, in consultation with district administration, has been forwarded to govt.

In the absence of a flower auction market, middle men and traders determine prices, undercutting the profit margins of farmers.

The demand for an international flower auction market in Hosur, the country’s largest flower production and export hub, has gained momentum here, ahead of the budget session.

Hosur produces roses, carnesians, gerberas and chrysanthemums. Twenty percent of the flower production (primarily roses and chrysanthemums) is targeted for exports and the remaining to the domestic market.

But the current trading scene favours the traders and middle men, who determine the price of flowers, say farmers’ representatives.

Given a restrictive export market, growers depend largely on the domestic market, says Bala Sivaprasad, president, Hosur Small Farmers Association. “For long, we have been demanding an international flower auction market, where farmers will determine the price of flowers. But, in its absence , middle men and traders determine prices, undercutting profit margins of farmers.”

“Every day, about 150 to 200 bunches of flowers are harvested per acre. These are procured by agents at lower price and sold at higher margins. With the trader/middlemen fixing the price, farmers have no scope for collective bargaining. Farmers lose a monthly revenue of ₹40,000 to ₹50,000 due to this,” he explains.

This middlemen-dominated system is agnostic to the global demand and hinges on the price fixed by the traders/agents based on a projected local demand. “The price of flowers will be higher in Delhi and Bombay, based on the conditions there. But the local traders project the low prices in Chennai and bargain for the lowest price,” says Mr.Sivaprasad.

This is where the demand for an international flower auction market comes up. The flower growers, in consultation with the district administration, had drawn up a detailed project report for an international flower auction market.

As many as five flower auction markets had been set up in the country. But four had failed due to lack of supply and inputs from farmers, says Mr.Sivaprasad. The one in Bengaluru caters to the farmers of Hosur.

The DPR for a ₹25-crore international flower auction market has drawn both from the failed markets and successful ones in the Netherlands,” says Mr. Bala Siva Prasad. The auction market organised along Dutch auction system, timed at micro seconds as online sales orders are placed. “Only condition will be a minimum order of 1,000 flowers,” explains Mr.Siva Prasad. Consumer/ trader can login and place orders directly, where price is fixed by farmers’ committee. There is scope for offline orders too, he says.

The DPR envisions pick-up vehicles to collect the flowers at farm gate, relieving farmers of the burden of transport. At present, farmers endure transportation costs of ₹2,500 to the Bengaluru auction market. This will address the problem of marketing and related concerns of farmers as producers, he says..

An international flower auction market will be a win-win situation for the farmers and the consumers. “On Monday, the going price of roses was ₹30 per bunch from the farmers to the traders, but they were traded at ₹80 in Madurai and Coimbatore,” he says.

According to Joint Director of Horticulture T.C.Kannan, “the report prepared by the flower growers was received and sent to the Commissioner of Agriculture Marketing,”