CUT FLOWERS DELHI

MARKET Supply Chain

Management
By
Komal
Sethi
104/2013

Floriculture

Floriculture is the art and knowledge of growing flowers to

perfection.
It deals with the cultivation of flowers and ornamental crops
from the time of planting to the time of harvesting.
Stages involved (Carnation) are as follows:

Harvesting

Pre Cooling

Grading

Pulsing

Packing

Transportati
on

Handling

Floriculture in India
The social and economic aspects of flower are growing.
The increase in demand can be attributed to
Offering and exchange of flowers on all social occasions.
In places of worship
Their use for adornment of hair by women.
For home decoration.
The estimated area under flower growing in the country is about
65,000 hectares
The production of flowers is estimated to be nearly 300,000 metric
tons of loose flowers and over 500 million cut flowers with stem.

SCM Models
Producer

Wholesal
er

Retailer

Consume
r

Producer

Forwarding
Agent

Wholesaler

Retailer

Consumer

Producer

DRDA

Wholesal
er

Retailer

Consume
r

Producer

Cooperative
Society

Wholesaler

Retailer

Consumer

Producer

Retailer

Consumer

SCM Models Contd

Sale through Forwarding agents
Forwarding agents in flower marketing are the persons who have links

with the growers, hotels, corporate offices, wholesalers/retailers, railways

and bus transport employees and auto-rickshaw drivers in the market.
These agents arranged for the transport facilities, loading, unloading and

clearance of goods at various points during transportation.

They charged 10% commission on the sale value of the produce from the

grower.

SCM Models Contd

Sale through District Rural Development Authority

District Rural Development Authority is a Government agency who takes

over responsibility of marketing of flowers
This agency has developed various assembling centers in different parts of
these districts according to the density of flowers growers.
The produce was then carried to district center from where it was transported to
the consuming markets.
Sometimes, agency is also involved in grading and repacking of the flowers at
the assembling points.
The transportation cost was charged from the producers in addition to
6%commission on the sale value of the produce.

SCM Models Contd

Sale through Cooperative Society

These societies are the associations of the local flower growers responsible
for marketing of flowers.
There are about 31 registered societies in the state and out of which 23 were
found to be functioning properly
They picked up the produce from the assembling points and then transportation
and sales were done in their names.
Societies are charged 55 commissions in lieu of their services rendered in the
marketing.
Due to the vested interests of few members in these societies, the quantum of the
sales was relatively less through this channel as reported by the growers.

SCM Models Contd

Sale through Wholesalers
The growers, who had large marketable surpluses for sale, generally
adopt this channel.
Wholesalers in flower trade sometimes act as forwarding agents and
commission agents too.
These wholesalers either purchased directly or through other
forwarding agents, 15% commission from the sale value of the product
There were about 50 wholesalers found to be working in Delhi market.

DELHI WHOLESALE MARKET STRUCTURE

Domestic flower trade has been totally an alien trade for the
masses.
Delhi market has shown tremendous growth in the past few
years undoubtedly in the wholesale marketing.
The number of retail outlets, varieties of products, still
remains irregular and unorganized.
Lack of proper storage facilities, proper packing areas, and
shops shall rise to operational difficulties due to occasional
rains, high humidity and heat.

DELHI WHOLESALE MARKET STRUCTURE

There is no system of membership or commission to any
organization.
Flowers are dumped directly on the ground for exposure to the
scorching heat and environment, thus damaging the quality of
the product.
The market is characterized by wide price variations and poor
realizations.
As a result the producers remain deprived of the real worth of
their produce affecting their income or earning adversely.

MARKET STRUCTURE
Main
source
of flowers
Maharashtra,
Karnataka,
Utter
Pradesh, Madhya Pradesh, Himachal
Pradesh, Haryana and Punjab.
The product range includes Gladiolus
Carnation, and many other Exotic
flowers.
More varieties are found to be
arriving in the winters and maximum
in March.

CP WHOLESALE MARKET STRUCTURE

Located in front of coffee home, Baba Kharag Singh Marg,
near Connaught place, and operating from 6:00 AM to 9:30 AM
there were about 50 wholesalers or commission agents who
facilitated the sale of produce of the growers in the market.
It was found that on an average, the produce of at least 100
growers along with 125 laborers arrived in this market daily.
The commission agents charged a commission of 15% in the
sales price from the sellers.

MEHROULI MARKET STRUCTURE

Situated near Qutab Minar, the product range here was limited
which mainly includes Rose, Gladioli, Tuberose and other
winter season flowers.
There were only 15-20 wholesalers or commission agents in
the market.
Most of the growers sold their produce by themselves and
during peak season their number went between 150-200.

GHAZIPUR FLOWER BAZAAR

Ghazipur, a landfill outside the city where part of
the flower trade has been officially relocated.

GHAZIPUR FLOWER BAZAAR

Morning madness begins as early as 3 am.Truckloads
arrive from neighbouring state of Uttar Pradesh
as well as local Yamuna riverbeds.
By day vendors arrange flowers on wooden platforms.
Between 4 am 5 am the first customers arrive
wholesalers, hotel staff and flower traders.
Weddings,pujasand Indian elections send prices
soaring. Roses that earlier sold for Rs. 10 a
bunch, then sell at Rs. 30-40, price of golden
marigolds goes up from Rs. 5 toRs.35a kilo
Cascades of milky-white, chrysanthemum and
marigold garlands lay in heaps at the entrance stalls.
Garlands are perfect for decking
upshaadimandap,wedding halls and
festivepujadecorations. How much? I asked. Just
then, a wholesaler, brushed me aside. He picked up 8
bundles of 10 garlands each, handed the exact

GHAZIPUR FLOWER BAZAAR

Chrysanthemum

Gerbara

Also known as guldaudi,

mums or chrysanths. They
are native to Asia and
north eastern Europe and
are brought to Delhi from
Himachal Pradesh.
Rs 2 per piece

From the sun family, this

flower is brought in from
Dehradun, Gujarat and
Pune.
Rs 15 for 10 pieces

Carnation
Carnations are used for
decorative purposes and
arrive here from Himachal
Pradesh.
Rs 80 for a bundle (20-30
pieces)

Marigold
Locally known as Genda, it
is brought in the market
from Kolkata and can be
seen adorning homes
during the festive season.
Rs 50 for 1kg.

Tuberose
Rose

Gladioulus
Is a perennial favourite for
its beautiful varied colours.
It arrives here from the
state of UP.

Red, pink, yellow and orange, these roses

brighten up the market scene. They arrive
from Pune and Bangalore and are present
all year round.
Starting at Rs 70 for a bundle of 10 roses

Rajnigandha is a perennial,
night-blooming, extracts of
which are used as a middle
note in perfumery. This is
brought here from
Haryana.
Rs 120 for 4 dozens of

ADVANTAGES - Relocation

This was a rather idyllic plan, to have a flower bazaar which will build a sense
of community and cater to round-the-clock flower needs of the city.
We can work throughout the day; we don't have to sell flowers at cheap prices during
market closing hours as it used be earlier, says Taran Rao, a florist at Ghazipur who
shifted two years ago from Connaught Place.

The shifting to Ghazipur was also intended to provide greater storage space
than what was available in the erstwhile markets.
Raju Saini, previously working in the Mehrauli market, says: We now have cold storage
space that helps to keep the flowers fresh for longer.

However, Taran and Raju appear to be members of a smaller section of flower-stall

owners who are content with the shift. Their opinion is not echoed by several
others who had had their businesses uprooted and relocated. The general

ISSUES - Relocation

Governments lack of interest and improper infrastructure of roads and shops.

Prevalent power shortage negates the advantages of having larger storage space.
More travelling time for many of the shopkeepers who are unhappy with the
additional vehicle costs they incur daily in commuting.
The shifting has not deterred the illegal continuance of selling flowers in the
erstwhile markets.
The shift has affected customers, too, as many find it illogical to travel such a long
distance to buy flowers. In this age of online markets and e-business, it is only
natural that customers do not travel far to purchase flowers.

ISSUES - Relocation
In summer,
we have
big losses,
flowers
spoil fast,
no roof

What use we
have no proper
toilets or even
shops selling
proper food!

Flower
Vendors
There has
been a drop of
about 70 per
cent in our
sales over the
past two
years

We have to leave
home at 1.30
a.m. to reach
here by 2.30
a.m. and set up
our shops. Our
travelling costs
have increased
yet our income
remains the
same.

THANK YOU