Rose price in domestic market in Hosur surpasses export market this Valentine’s Day

Hosur farmers have ditched exports for the domestic market this Valentine’s Day, as the domestic price per stem of red rose surpassed export prices for the first time. While the global flower demand has remained the same, the production fall has pushed up the domestic prices.

While this is the second year where the export of roses from Hosur slipped in favour of the domestic market, this is the first time a stem of rose is selling at a price difference of ₹10, with domestic prices way up than the export price per stem. The average export price of red rose is ₹22 to ₹24 per stem, but the domestic average as ₹30 to ₹35 per stem.

Production fall

Though globally, the flower demand has remained same, the production was impacted by bad climate, said farmers. “In Hosur region, production dropped by 45% due to extreme cold. There was an increase in blind shoots or water shoots, where buds fail to emerge,” says Bala Siva Prasad, president of Hosur Small Farmers Association, and also former Director, National Horticulture Board.

At the International Flower Auction Center, Bengaluru (IFAB), that receives 6 lakh to 7 lakh stems from Hosur for auctioning, the going prices of red roses were ₹600 per bunch (20 stems) and the premium roses at ₹1,100 per bunch, said Mr. Prasad adding that the highest price of red rose per stem was ₹52.

Online delivery platforms

Like last year, online flower delivery partners including Ferns and Petals, Blinkit, Zepto, Phoolwala among others are a game-changer for the flower growers here. Online partners have consumed together 10 to 12 lakh stems as part of the domestic demand. Their purchase officers had been touring through green houses making the buy, said Mr. Prasad.

Production capacity of Hosur’s floriculture landscape was 80 lakh stems to 1 crore stems. But the production had slipped to 70 lakh stems, of which 10 lakh stems had gone into export. The early inkling of premium pricing at the domestic market had also weaned traditional exporters from making export commitments, said Mr. Prasad.

There was a peak demand in Malaysia, Singapore and West Asia too. But despite the burgeoning orders, production shortage and windfall gains in the domestic market had pushed even the regular exporters to ditch the export market, he added.

There was no incentive for exports because of the easy cash-and-carry option in the domestic market, no packing standards to adhere to, and no regulations, said Dhivya Shree of DS NTR Flora, Thally.

Usually, the DS NTR Flora exported 40,000 flowers for Valentine’s Day. But this year, Ms. Dhivya Shree is directing her flowers to IFAB as two loads of 500 bunches for easy cash-and-carry options. “For the last 15 days, the price per stem was ₹30 and higher. There is no reason to export,” she added. “On the online platform, one stem of red rose is sold at ₹500,” she emphasises on the changing demand landscape.

According to Mr. Bala Siva Prasad, the wedding season is adding to the domestic boost in demand.

While the high price could signal a windfall, Mr. Prasad, who is also an advisory member in Indian Horticulture Council, said, an unreasonably high price could push people to transition to artificial flowers. Once event managers and people move to artificial flowers, then it is hard to reverse the trend, he cautioned.