Indian rose exporters, hit by a dip in local production, have been bracing for lower margins.

Domestic production has been low because rains were spread over more days, depriving rose farms of the sunlight they require for growth. Coupled with higher labour and input costs, weather patterns are "definitely impacting production and bottom lines massively," said Manjunath Reddy, managing director of Bangalore-based Meghna Floritech Ltd and a committee member of the South India Floriculture Association, an industry body, which estimates a reduction of 20-25% in rose production this year. Indian rose farms are located in two clusters at Bangalore and Pune, and flower growers typically export over 60% of produce between September and March. For the rose trade, the festive season running up to Valentines Day on 14 February, is a boom time for sales. Roses from Rajasthan have traditionally been used for fragrance, essence, rose water, and other edible products. But now Rajasthan has a research facility at the agriculture university in Udaipur to help farmers grow roses for consumers overseas. "We expect this Valentine's to be quite normal and the prices that we are talking about are pretty much the same prices that we did last year, but in rupee context, it is better though our sales currency is euro," said K.S. Ramakrishna, managing director of Bangalore-based Karuturi Global Ltd, the worlds largest exporter of roses. The rupee has depreciated 22% against the dollar, by 9% against the euro and 33% against the yen since the start of this year, according to Bloomberg data. That translates into more rupees for every dollar, euro or yen that is earned by exporters, who had been hit last year by the steep appreciation of the local unit. Indias floriculture exports for the year ended March were valued at Rs338 crore, according to the Agricultural and Processed Food Products Export Development Authority, or Apeda, a Union government agency. Cut flowers such as rose stems constitute around 25% of Indias floriculture exports, which are less than 1% of the international trade in flowers. Commercial floriculture gives greater yield to farmers and takes less labour and water than traditional foodgrain

Introduction 'Blooming business' and 'rosy future'. These are the words the Indian authorities use to sing the praises of the flower industry. The central government and the state governments grant subsidies and give information to stimulate the building of greenhouses for the cultivation of roses, carnations, chrysanthemums and other cut flowers. This development takes place mainly in the countryside surrounding the metropolises Bangalore, Mumbai (Bombay) and Delhi. During the last years the acreage of flower greenhouses has tripled or even quadrupled near these cities. Hopes are running high. A growth percentage of 30% is being mentioned. India hopes to get its share of the growing demand for cut flowers in the world. This trade is considered a goldmine and a panacea for India's economic and social problems. The flower trade is said to create plenty of employment opportunity. Moreover, the export of cut flowers would earn a great deal of foreign currency. This is very important to India. It has a debt of fifty thousand million US dollars and is listed third on the world rankings of debt countries - after Mexico and Brazil.

But there is quite a different story to tell about flowers. And this is the story about pesticides, pollution of water and soil, about bad labour conditions and sick labourers. The artificial cultivation of flowers in greenhouses is said to be the most polluting agricultural activity humanity ever created. The industry originates from Western Europe. Holding 60% of the world trade of cut flowers, the Netherlands is by far the most important producing country. During the past two decades, however, the flower industry has gained a foothold in the Third World, the Western Europeans often holding a big finger in the pie. For instance, the floriculture in Kenya is largely in the hands of foreign investors, including the British-Dutch multinational Unilever. This means that a large part of the profits is pumped back into the Netherlands and Great Britain, leaving the Kenyans with the ecological problems. An example: the water level in the Naivasha lake falls every year by 15 cm because of the enormous water consumption by the surrounding flower industries. Conclusion: there are plenty of reasons to take a critical look at the growth of the flower industry in India. Who are the investors in this sector, where do the profits go and who benefit by the substantial government subsidies? Does the international flower trade have as many opportunities as is often suggested? Is the demand for cut flowers growing at the same high pace as the supply? Will the market not become oversupplied and is collapse not imminent? What are the consequences of floriculture for the environment and what measures are taken to prevent environmental damage? How are labour conditions in the floral industry? How are health hazards of pesticides dealt with? This report deals with those questions. This text is based on interviews and documents we collected in India during the first six months of 1997. We focus on the district of Bangalore, the main district for the production of flowers in India. We pay full attention to the activities of the Dutch. They play a major role in the growth of the floral industry of India.

Conclusions and recommendations Anyone who has observed what is happening in the Indian flower industry can draw only one conclusion: the scent of the Indian export rose is not sweet, but bitter. Just like everywhere else in the world, the Indian flower industry pollutes the environment. This form of agriculture (or is it industry?) does not fit in with the idea of a sustainable society. It is a poignant fact that the Indian flower sector is co-financed by Dutch development aid. One should wish India a more human and environmentally friendly development! The Indian government spends many subsidies on the export flowers. But the profit from this investment is dubious. It is the Dutch entrepreneurs who profit from the Indian flower industry. The Indian workers on the other hand are the

victims: they have to do hazardous work in greenhouses for moderate wages and without any social security. Of course this means more employment, but is this the kind of work the Indians really want? And in numbers this employment does not amount to much. The sector is very capital intensive. One acre needs an investment of 200 to 300 thousand US dollars. An average of 20 labourers works in one acre. This means that it costs 10,000 to 15,000 dollars to employ one labourer. This is an extremely expensive job by Indian standards. The same amount of money would provide jobs for more people in other sectors. The most important recommendation is to stop the flower industry in India, or at least check its growth. This is certainly possible. The rise of the flower industry is not a natural process and it has little to do with a development of the market economy. The Indian and - to a lesser degree - the Dutch government play an important part in promoting and financing. This means that subsidies may be used in other ways and development may be guided into another direction. India is at an advantage as compared to other flower producers like Kenya and Colombia. Since the Indian flower sector is still small, the cut in subsidies will be less painful. Another course is still possible without too drastic consequences. While the flower industry is still there, rules must be tightened. A good and clear registration of pesticides is needed. Moreover workers have to be trained in the use of pesticides. Protective clothing must be of the same standard as the clothing used in Dutch greenhouses. Pesticides (like DDT and captan) banned in the Netherlands and Europe must not be used. Double standards cannot be justified, particularly not in companies co-managed by Dutch people. The waiting times after spraying in greenhouses prescribed by the WHO should be observed.

Summary Growing flowers in greenhouses appears to be very profitable in India. That is to say: it is profitable for foreign, mainly Dutch companies who sell planting materials, technical knowledge and cooling units. Their Indian buyers and joint venture partners still have to wait and see how profitable the sector will be for them. Indian business people investing in the flower industry are very much dependent on their foreign partners. The Dutch and the Israelis supply the technology and the planting materials and also dominate the distributive trades. The Indians supply (cheap) labour and capital. It

is characteristic of this setup that the major share (90%) of the investments is at the expense of the Indians while it is exactly the opposite where the profit is concerned: approximately 90% is for the foreign partners. Moreover, the risks involved in an unpredictable international flower trade are exclusively at the expense of the Indians. A surplus is imminent on the international market for roses - India's chief product. Even now a fall in price is becoming visible. If this crisis continues, the profit of the Indians will disappear like snow in summer. But the foreigners have secured their profits through the sale of raw materials and equipment. In short: the flower industry is much more profitable for foreign companies than for their Indian partners. It is characteristic that the flower industry in India began to grow after new loans by the IMF and that the sector has been stimulated by the FMO, a development bank, which represents the Dutch state and Dutch banking. But even if the Indian flower industry becomes successful, the economic profit for the population will be minimal. The investors in the flower industry are big agricultural and industrial companies. For others investing is hardly possible: the outlay on greenhouses is between 200 and 300 thousand dollars per acre. The foreign exchange earned in the flower industry and the generous Indian state subsidies fall to the elite only. The employment results in the Indian flower industry are far from impressive. In the greenhouses there is an average of 20 workers per acre. This means that one job costs 15,000 dollars. This money can give jobs to many more people in India. It also became clear that the flower industry not only creates jobs but also costs jobs, for the land to build the greenhouses on is often purchased from (small) farmers. Particularly in the Third World, the flower industry is a sector with a high 'casino percentage'. The risks are high, quick profits are aimed at, and there is hardly any concern about long term effects. The same goes for environmental pollution. By sketching a picture of a beautiful natural product, the government and business disguise the environmental hazards. But in reality, huge risks threaten the environment: floriculture inherently needs a high dosage of artificial fertilizer and pesticides. These developments are not only ecological hazards, but also endanger food supplies. Continuous and intensive cultivation of flowers will eventually lead to sterile soil and no cultivation of any crop will be possible at all. Another thing is that an extremely high amount of groundwater is pumped up, in areas too, where the groundwater level is critical, like in the Bangalore district. The land used for the greenhouses for roses appears to be bought from small Many chemical pesticides are being used in the flower industry.

farmers. Since the farmers usually produce cheap food, these sales greatly affect the food supplies of the poor population. The wages in the greenhouses are poor even by Indian standards: between 0.75 to 1 dollar per day. Moreover the fringe benefits are very bad: the workers do not get the holidays and bonuses that are provided for in other sectors of industry. Added to this they run big health risks. Protective clothing is lacking or is insufficient. The workers get hardly any or no information about or training in how to handle hazardous pesticides. Pesticides are used which the WHO classifies as 'extremely dangerous' or 'highly dangerous'. The waiting times after spraying prescribed by the WHO are not observed.

SOEX FLORA The largest growers of cut flowers in India Leveraging on our expertise in Agro-Farming we diversified into the floricultural front also. To meet the ever-increasing international demand for our flowers, we set up Soex Flora, a 100% export-oriented flower unit. Soex Flora commenced operation in 1995 and started production in August 1996. With a 50-hectares farm including 7.5 hectares of greenhouse cultivation, we are the largest growers of fresh cut flowers in India. We have acquired the ISO 9002 Certificate for superior quality of roses, proving our expertise in the floriculture field. Accolades... Soex Flora Pvt. Ltd. is an ISO 9002 Company being certified by worldwide leading certification body, Bureau Veritas Quality International (BVQI) who are accredited by United Kingdom Accredition Service (UKAS) 5th June 2000 Recognised as the "Largest Supplier from India" to V.B.A, the world's largest Flower Auction Center. Awarded a certificate for our "Export Performance" for the year '98-99 by the Government of Maharashtra. Awarded a certificate for Export Achievement for the year 1999-2000 by the Directorate of Industries, Maharashtra, India.

Participated in the Hagelunie Growers' Quality Competition held during the International Flower Trade Show. Recognized for quality products & awarded five certificates for each variety that we entered. KLM the World's Largest Carrier of Perishables has recognized us as their largest customer for flowers in India. Awarded a certificate for Export Achievement for the year 2000 - 2001 by The Directorate of Industries, Maharashtra, India Our Quality Policy... We in "SOEX FLORA" are committed to achieve Customer satisfaction & Confidence in our product & services which meet the specified requirements of our Customer. We are achieving this by implementing & maintaining an efficient Quality Management System in our Floriculture Farm. "SOEX FLORA" will continuously improve its products to better satisfy the needs of our customers and will deliver to them, on time and every time our reliable product & services. Our goal is your complete 100% satisfaction. We appreciate your business and are working hard to be your only choice for flower delivery anywhere in the world. If you have any questions or concerns regarding your order, we encourage you to contact us, so that we work to achieve your complete satisfaction. Thank-you for your business. ARIF FAZLANI MG. DIRECTOR

Group of Companies Afzal.tv Tobacco is bound to remain one of the main pillars of Sopariwalas activities. The Company continues to develop new products in this segment. We are glad to introduce to you "AFZAL MOLASSES" - tobacco for use in a hubble-bubble (a Turkish water pipe), with apple, strawberry, mixed fruit, Aniseed and other natural flavours. Soex.net

Diversification was inevitable for the ever-expanding export house that Sopariwala Exports was turning out to be. Natural produce being the core category of our dealing, we opted for three chief products - Oilseeds, Spices, Rice,. Soex.tv Soex Handcrafted Flavoured Filter Cigarettes... SOEX is a brand initiative from the house of Sopariwala Exports, India's largest natural produce exporters. Soex.biz Soex Handcrafted Flavoured Filter Cigarettes... SOEX is a brand initiative from the house of Sopariwala Exports, India's largest natural produce exporters. Sopariwala.com Sopariwala Exports - the first Indian name in quality exports of natural produce. In 1900, it was our dream. Today, it is our proud achievement. Mellow.tv Mellow Commodities - A subsidiary of SOPARIWALA EXPORTS - the first Indian name in quality exports of natural produce. Petalsensation.com We are proud to introduce ourselves to the world market, as an established Perfume manufacturer in India dealing in various Oriental and French fragrance in natural oil base. Fazlani.com The agro-based products we procure, are processed at our own spices/oilseeds processing/cleaning plant, which was set up by the well-known M/s Buhler (India) Pvt. Ltd. The products are stored under optimum conditions and ideal temperatures at our warehouses in Mumbai and Kandla. SoeX.com SoeX India Pvt Ltd, a part of the Sopariwala Exports conglomerate, brings to you an array of tobacco products for the perfect smoking experience. Rose Care Tips : Roses are "flowers of love". To ensure they also blossom for a long time - just like your love - you should take heed of the following tips:

While arranging in vase, give the stems cm. slant cut with a sharp blade or knife. Replace water everyday and cut the stems as above. Roses like hot water. By the way, most other flowers like lukewarm water. Remove lower foilage to prevent leaves coming in contact with water. Keep the arrangement away from direct sunlight and breeze.

In order to make them last longer, you can also put some Aspirin powder or a light salt-sugar solution into the water. Our Roses... By opting to specialize in the eleven best varieties of rose, namely Passion, Grand Gala, First Red, gold Strike, Noblesse, Aqua, Avalanche, Bordeaux, Bugatti, Happy Hour, Poison. We are in a position to keep a tight control over the quality of the flowers we grow, simultaneously aiming for higher production figure.

Passion is a variety with good bud-size. It is blood red in colour and has good opening. It's stem length ranges from 40, 50 & 60 cm.

Grand Gala, a world of color is almost thornless red rose which in a class by itself having stem length 60, 70, 80 & 90 cms.

First Red is deep red in colour. It has dark green foliage and a stem length of 40, 50 & 60 cm.

Gold Strike is in Golden yellow color with large bud size having stem length 50, 60, 70 cms.

Noblesse is pink in colour with medium bud-size and green foliage. It has stem length of 40, 50 & 60 cm..

Aqua is pink in color with large bud size having stem length 50, 60, 70 cms. Its an thronless variety.

Avalanche is white in color with large bud size having stem length 50, 60, 70 cms.

Bordeux is red in color with large bud size having stem length 50, 60, 70 cms.

Bugatti is magenta purple in color with large bud size having stem length 50, 60, 70 cms.

Happy Hour is red in color with large bud size having stem length 50, 60, 70 cms.

Poison is purple in color with large bud size having stem length 50, 60, 70 cms.

A Virtual tour...

For the perfect rose everything needs to be perfect from start and we ensure that nothing is left to chance in our goal of giving you the best from the temparate climate to the use of virgin soil, from the use of best irrigation technologies to use of rich manure and bio fertilisers, from a modern communication setup to trained personnel. ISO 9902 quality standards, 7.5 hectares under green house cultivation with an annual production of over 10 million flowers. No wonder than the roses we grow have won us numerous awards... Since roses are extremely sensitive and vulnerable, great care is taken to prevent contamination. The flowers are first precooled in our cold storage - a facility that has the capacity of handling more than half a million flowers at any point. The flowers then go through the grading machine which helps in increased productivity without compromising on the quality. Thereafter flowers are deleafed. Bunching of these flowers is then done in a staggered manner so that the buds are not damaged during storage and transportion.

These bunched flowers are then packed in corrugated tubes and go into our cold storage. For packing we use corrugated boxes used worldover for fresh cut flowers. The whole process is auto-mated with portable strapping machines.

Dispensing, tightning and sealing the boxes to the optimum strength, ready for export. These are then transported in a Reffer van in a controlled temperature of 2 degree celcius to the airport and are delivered to the airline a little before departure to maintain the gold chain.

To provide our customers with the best posisble service we have entered in to an annual contract with KLM Cargo the world largest carrier of perishables. Infact we are KLM's largest customer for perishables in India.

Shipping Info... Since roses are extremely sensitive and vulnerable, great care is taken to prevent contamination. After harvesting & grading, the flowers are treated in the Florissant 600 solution. The flowers again go through the Grading machine which helps in increased productivity without compromising on the quality. From here the flowers go into our cold storage - a facility that has the capacity of handling more than half a million flowers at any point. Even in packing, we use the specially made corrugated boxes used worldover for packing fresh cut flowers. The whole process is automated with portable strapping machines dispensing, tightening and sealing the boxes to the optimum strength, ready for export. These are then transported in a Reffer van in a controlled temparature of 2 degree celcius to the airport, and is delivered to the airline, one hour before the departure to maintain the cold chain. To provide our customers with the best possible services, we have entered into an annual contract with KLM Cargo - the world's largest carrier of perishables. With many such 'Quality Management Systems' in practice, we have been accredited with the ISO 9002 Certificate.