Master of Agri -Business Management (MABM)€¦ · Dr. Rakesh Singh Deptt. of Agricultural Economics ... Dr. O.P. Mishra, Associate Professor, Department of Extension Education for

MARKETING OF FLOWERS: A CASE STUDY OF BANSPHATAK FLOWER MARKET, VARANASI

Project Report SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE DEGREE OF

Master of

Agri -Business Management (MABM)

Supervisor Submitted By Prof. Rakesh Singh Manish Kumar Paswan

DEPARTMENT OF AGRICULTURAL ECONOMICS

INSTITUTE OF AGRICULTURAL SCIENCES

BANARAS HINDU UNIVERSITY

VARANASI - 221005

U.P. INDIA

ID.NO. ABM-13195 2015 Enrolment No. 356703

Dedicated

to My Revered Parents

& My Respected Advisor

Dr. Rakesh Singh Deptt. of Agricultural Economics

Professor Institute of Agricultural Science

Banaras Hindu University

Varanasi – 221005 (INDIA)

Ref. No. …………….. Date …………………

CERTIFICATE

To

The Registrar (Academic)

Banaras Hindu University

Varanasi – 221005 (INDIA)

Through: The Head, Deptt. of Agricultural Economics,

Institute of Agricultural Sciences, BHU, Varanasi.

Dear Sir,

This is to certify that the project report entitled “MARKETING OF

FLOWERS: A CASE STUDY OF BANSPHATAK FLOWER MARKET

VARANASI” submitted in partial fulfilment of the requirement for the degree of

MASTER OF AGRI-BUSINESS MANAGEMENT, in the Department Of

Agricultural Economics, Institute Of Agricultural Sciences. Banaras Hindu

University is a record of bonafide research carried out by Mr. Manish Kumar Paswan,

Id. No. ABM-13195, under my supervision and no part of the project report has been

submitted for any other degree or diploma.

The assistance and help received during the course of the investigation and

sources of literature have been duly acknowledged.

Thanking You

Forwarded By Yours faithfully,

(Dr. Rakesh Singh)

(Head) Coordinator Chairman of Advisory Committee

MARKETING OF FLOWERS: A CASE STUDY OF

BANSPHATAK FLOWER MARKET, VARANASI

By

Manish Kumar Paswan

Project Report Submitted in partial fulfilment of

the requirement for the degree of

Master of Agribusiness Management

DEPARTMENT OF AGRICULTURAL ECONOMICS

INSTITUTE OF ARRICULTURAL SCIENCES

BANARAS HINDU UNIVERSITY

VARANASI-221005

I.D. No. ABM-13195 2015 Enrolment No. 356703

PROJECT REPORT APPROVED BY ADVISORY COMMITTEE

Chairman Dr. Rakesh Singh Professor

Department of Agricultural Economics

Institute of Agricultural Sciences, BHU, Varanasi.

Members Dr. O.P. Singh Assistant Professor

Department of Agricultural Economics

Institute of Agricultural Sciences, BHU, Varanasi

Dr. O.P. Mishra Associate Professor

Department of Extension Education

Institute of Agricultural Sciences BHU, Varanasi

External Examiner:

ACKNOWLEDGEMENT

At the outset, being the student of this great institution. I bow my head with in great reverence to the lotus of Bharatratna Mahamana Pandit Madan Mohan Malaviya Ji, the founder of the Banaras Hindu University whose everlasting desire was to serve the mankind.

I bow my head in great reverence to the omnipotent and omnipresent almighty, for his kindness and true love towards me and to every creature resending on this wonderful planet.

I consider it to be a rare opportunity and sublime privilege to express my profound sense of gratitude and reverence to Dr. Rakesh Singh, Professor and Coordinator, Master of Agribusiness Management, Department of Agricultural Economics and Chairman of my Advisory Committee for his meticulous guidance, indelible inspiration, persistent encouragement, ingenious suggestions, mellifluous nature and indefatigable attitude. I will ever cherish the fatherly affection that he bestowed upon me throughout my tenure as a student under him which helped me to cope with many a trying situation.

I am immensely thankful and indebted to Dr. H.P. Singh, Professor and Head, Department of Agricultural Economics for his cooperation throughout my study period. I immensely would like to give him thanks.

I am immensely thankful and indebted to my advisory committee members Dr. O.P. Singh, Assistant Professor, Department of Agricultural Economics and Dr. O.P. Mishra, Associate Professor, Department of Extension Education for their unstinted attention, prudent suggestions and arduous guidance during course of their investigation and preparation of manuscript.

I consider it my privilege in expressing my fidelity to Dr. Chandra Sen, Professor, Department of Agricultural Economics, Dr. P.S. Badal Professor, Department of Agricultural Economics Dr. V. Kamalvanshi, Assistant Professor, Department of Agricultural Economics, Dr. P. K. Singh, Assistant Professor, Department of Agricultural Economics and Mr. Neeraj Singh Assistant Professor, Master of Agribusiness Management for their diligent guidance, erudite suggestions, timely help, constructive criticism, constant and continuous encouragement during the course of investigation.

I am failing short of words in expressing sincere and heartfelt tributes to all the non-teaching staff members of the Department of Agricultural Economics for their various supports during my course of study at BHU.

All the words in lexicon will be futile meaningless if, I fail to express my gratitude towards my parents, Sri. Raj Kumar Paswan and Smt. Kanti Devi for their blessings, sacrifice, affection, moral support and lots of care throughout my life I express my indebtedness and most heartily devotion to them who set the foundation and were always with me during my ups and downs.

It is indeed a great pleasure to acknowledge the love and cooperation by my dear batch mates and friends Abhay, Ashish, Anushka, Ruby, Nitesh, Rohit, Jaypraksh and Surbhi for their caring eyes and helping hands and making the study periods very much memorable.

Last but not least, I bow my head before the feet of almighty “Baba Vishwanath”, “Bajrang Bali” and “Saraswati Maa” seeking their blessings to accomplish the daunting task ahead in my life.

Manish Kumar Paswan Date ........./......../........ I.D. No. 13195 Place ............. Enrolment No. 356703 Master of Agribusiness Management Department of Agricultural Economics Institute of Agricultural Sciences Banaras Hindu University Varanasi 221005.

CONTENTS

Chapters Particulars Page(s)

List of Tables

List of Figures

Chapter I INTRODUCTION 1-7

Chapter II REVIEW OF LITERATURE 8-10

Chapter III RESEARCH METHODOLOGY 11-13

Chapter IV DESCRIPTION OF STUDY AREA 14-19

Chapter V RESULTS AND DISCUSSION 20-38

Chapter VI SUMMARY AND CONCLUSION 39-41

BIBLIOGRAPHY 42

APPENDIX i-iii

LIST OF TABLES

Table No. Title of the Table Page No.

Table 4.2.4 Land use pattern in Varanasi district 18

Tables 5.1 Marketing channels of flowers 20

Table 5.1.1 Composition of flowers sold by producers 21

Table 5. 1.2 Composition of flowers sold by retailers 22

Table 5.2.1 Marketing Costs and Marketing Margin of Marigold

(Rs`/100 Pieces)

23

Table 5.2.2 Marketing Efficiency of Marigold 24

Table 5.2.3 Marketing Costs and Marketing Margin of Rose

(Rs`/100 Pieces)

24

Table 5.2.4 Marketing Efficiency of Rose 25

Table 5.2.5 Marketing Costs and Marketing Margin of Neelkanth

(Rs`/100 Pieces)

25

Table 5.2.6 Marketing Efficiency of Neelkanth 26

Table 5.2.7 Marketing Costs and Marketing Margin of Tulsi

(Rs`/100 Pieces)

26

Table 5.2.8 Marketing Efficiency of Tulsi 27

Table 5.2.9 Marketing Costs and Marketing Margin of Madar

(Rs`/100 Pieces)

27

Table 5.2.10 Marketing Efficiency of Madar 28

Table 5.2.11 Marketing Costs and Marketing Margin of Bela

(Rs`/100 Pieces)

28

Table 5.2.12 Marketing Efficiency of Bela 29

Table 5.2.13 Marketing Costs and Marketing Margin of Tangri

(Rs`/100 Pieces)

29

Table 5.2.14 Marketing Efficiency of Tangri 30

Table 5.2.15 Marketing Costs and Marketing Margin of Chinarose

(Rs`/100 Pieces)

30

Table 5.2.16 Marketing Efficiency of Chinarose 31

Table 5.3.1 Constraints faced by Farmers 32

Table 5.3.2 Constraints faced by Retailers 33

Table 5.3.3 Constraints faced by Consumers 34

Table 5.4.1 Perception of the farmers 35

Table 5.4.2 Perception of the Retailers 36

Table 5.4.3 Perception of the Consumers 37

LIST OF FIGURES

Figure No. Title of the Figure Page No.

Figure 5.1.1 Flowers selling by the farmers 21

Figure 5.1.2 Flowers selling by the retailers 22

Figure 5.1.2 Constraints faced by farmers 32

Figure 5.3.2 Constraints faced by retailers 33

Figure 5.3.3 Constraints faced by consumers 34

Figure 5.4.1 Perception of the farmers 35

Figure 5.4.2 Perception of the retailers 37

Figure 5.4.3 Perception of the consumers 38

ABSTRACT

Floriculture is the sunshine industry of India as it offers excellent self

employment and good remuneration for the small and marginal farmers. Flowers have

been considered as the symbol of grace and elegance and a feast for our eyes. They

are used on all religious festival and pious occasions. For the project entitled”

Marketing of flowers: A case study of Bansphatak flower market Varanasi”, Flower

market /mandi Bansphatak Varanasi was selected purposively. Out of 200 Farmers

15% Farmers were randomly selected who visited daily to Bansphatak mandi, and

also selected 10 Retailers and 20 Consumers were selected randomly. Two types of

marketing channel was found in the study area (P-C) and (P-R-C) in which mostly

eight types of flowers were being sold in the mandi like marigold, rose, neelkanth,

tulsi, madar, bela tangari and chinarose. The market efficiency of channel-2 was

higher than channel-1.The marketing cost and margin was higher in channel-2 as

compared to channel-1 and the marketing efficiency of channel-2 was higher than

channel-1 in case of all flowers. Common problem faced by each stakeholders were

transportation, price instability wastage and risk. The perceptions of all stakeholders

for market improvement was also different to each other was difference foe market

improvement 30% farmers were strongly agreed 60% agreed and 10% had no idea. In

case of sitting arrangement 20% respondents were agreed and 80% disagreed. And

related to parking facility 37% of the respondents were strongly agreed and 63%

agreed. In case of storage facility 60% of the respondents were strongly agreed and

37%, 3% were agreed and no idea respectively. And for covered market place 33%

respondents were strongly agreed 60 %, 7% were agreed and no idea respectively.

Chapter-I

INTRODUCTION

Agriculture is the mainstay of the Indian economy and is the principal

means of livelihood for over 60 per cent of the population. GDP was no more than

13.6 per cent during 2013-14 and rise further to just around 14.7 per cent in 2014-15.

Even though, India is primarily an agricultural economy, with almost two-third of its

population make out their existence from farmland. However, challenges before

agriculture has been increasing such as environmental and technological changes,

hike in input price and fluctuation in output prices. These are the fundamental

problems. Therefore, there is need to apply intensive technique and diversification

through horticulture production.

Agriculture production can be classified into three fold such as production of

food-grain crops, commercial/cash crops and horticulture crops. Horticulture

includes vegetables, fruits and flower crop. Production and consumption of

flowers is increasing over the world including India. The development of flower

cultivation brings larger income per unit area to grower than the cultivation of

ordinary crops. The flower crops in the domain of horticulture have drowned

attention of farmers as well as entrepreneurs. In an organized floriculture, farmers

prominently gave place to the cultivation of various flowers.

Floriculture: The fast growing domain

Flowers production, consumption and trade have been growing more folds in

years. There has been tremendous growth in the demand and consumption of

floriculture products in the last two decades. The total area under cultivation of

different flowers was 255 thousand hectares in 2013-14. Floriculture has finally

begun to form an important component of commercial agriculture and with the

increasing awareness of its potential, more and more people are getting associated

with flora business

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Floriculture is major source of employment and income. There is vast scope

in growing floriculture product in India, because total area under floriculture is very

small. Since two decades there is increasing demand and supply of various types of

flowers.

The climatic conditions of India is quite suitable for growing various types

of flowers in various zones, especially Tamil Nadu, Karnataka, Andhra Pradesh,

West Bengal, Maharashtra, Gujarat, Delhi those are the major developed states as far

as concern to floriculture. India produced 1 7 5 4 . 4 9 thousand MT loose flowers

and 5 4 2 . 5 3 M T of cut flowers in year 2013-14, with area of 255 thousand

hectare. The major flowers grown in India are marigold, aster, roses, tuberose,

gladiolus, jasmine and crossandra in open field while gerbera, carnation, roses,

anthodium, orchids, etc. grown under green-house conditions

Definition of Floriculture

Floriculture is one of the branches of agriculture that is known as horticulture.

The term horticulture is derived from two Latin words “hortus’’ meaning a

garden, and “cultura’’ meaning cultivation of crops within a protected enclose.

Floriculture is a branch of horticulture concerned with the propagation of

ornamental plants with a focus on flowering plants specifically.

Floriculture is the segment of horticulture concerned with commercial

production, marketing and sale of bedding plants, cut flowers, potted flowering plants,

foliage plants, Flower arrangements, and non-commercial home gardening.

At present, fruits, vegetables, flowers and ornamentals are growing not only

within the home grounds, but also in large quantities on a commercial scale.

Floriculture deals with cultivation, marketing and arranging of flowers and foliage

plants.

Flowers are used on all religious festival and occasions generally flowers are

offered by devotees in Temple, Gurudwara, Church and Masjids Flowers are used for

~ 3 ~

floral decoration. Even dried flowers are also used in flower craft or arrangement of

garlands and bouquets are prepared and offered to welcome the dignitaries. When cut

flowers are used for vase decoration they will be a marvellous piece of indoor

decoration.

Concept of Flower

As per nature and form of use, flowers can be classifies in following terms.

Loose Flowers

In India, the use of flowers of all categories was very common f o r

making garlands for worship and bouquets for religious function. Some kinds of

flower plants are discarded after one crop, those flowers are picking up as loose

flowers i.e., marigold, aster, lilies, chrysanthemum, jai-jue, bijali, gladioli, lilies,

lilium, dalia, tuberose etc are called loose flowers, Those are packed in loose (kg)

form. However, the use of these loose flowers is maximized during festive seasons

of Dusshera, Diwali and Ganesha All these flowers are cultivated traditionally.

Cut Flowers

Some flower plants continue in growth. The new shoots, which develop

below the place where the flower stem was cut, eventually form flowers that are cut

and the procedure is repeated until it is determined that would be economic

advantage in replacing the plants. Those flowers picking up with some lengths i.e.

gerbera, carnation, rose, orchids, tuberose etc. are cut flowers, those packing in

bunch or pairs form, apart from them gerbera and carnation produced under

greenhouse only. The production of cut flowers depend upon region and climate,

therefore, it was difficult to make them available throughout the year under open

cultivation, the production of cut flowers tried in all seasons, but it failed the

quality standards. Progressive farmer and entrepreneurs grows cut flowers under

green house. The period between Novembers to May is the best season for export of

cut flowers produced under green house.

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Properties of Floriculture Marketing

Being produced both by commercial and smallholder farmers flower

marketing is influenced by a number of factors that can be attributed to production,

product, and market characteristics.

Kohl and Uhl (1985) identified these attributes as-

Perishability - as flowers are highly perishable, they start to loose their quality right

after harvest and continued throughout the process until it is consumed. For this

purpose elaborated and extensive marketing channels, facilities and equipment’s are

vital. This behaviour of flowers exposed the commodity not to be held for long

periods and fresh produce from one area is often sent to distant markets without a

firm buyer or price. Prices may be negotiated while the commodities are en route, and

they are frequently diverted from their original destination if a better price can be

found. Sellers might have little market power in determining a price. As a result, a

great deal of trust and informal agreements are involved in marketing fresh flowers.

Price /Quantity Risks - Due to perishable nature and biological nature of production

process there is a difficulty of scheduling the supply of flowers according to market

demand. The flowers are subjected to high price and quantity risks with changing

consumer demands and production conditions. Unusual production or harvesting

weather or a major disease can influence badly the marketing system. While food-

marketing system demands stable price and supply, a number of marketing

arrangements like contract farming provide stability.

Seasonality - flowers have seasonal production directly influencing their marketing.

Normally they have limited period of harvest and more or less a year round

demand. In fact, in some cases the cultural and religious set up of the society also

matter demand to be seasonal. This seasonality also worsened by lack of facilities to

store.

~ 5 ~

Product bulkiness - Since water is the major components of the product, it makes

them bulky and low value per unit that is expensive to transport in fresh form every

time. This, therefore, exposed farmers to loose large amount of product in the farm

unsold. These listed characteristics of the product require a special complex system of

supportive inputs. It demands a regular marketing preparation process like washing,

cooling, proper management from the time of harvest until the produce is put on

display. It is frequently believed a flowers not only remain attractive to the consumer

it must also have a shelf life of few day sifter having purchased by the consumer

(Nonnecke, 1989)

Differentiation: The retailers derive competitive advantage from selling non-

standard products that are not generally available in the market, competing not only

on price, but factors such as reliability, product variety, product quality and speed of

innovation (Dolan and Humphrey, 2000). In the floriculture sector product

differentiation is determined mainly by the number of varieties (Wijnands, van der

Lans and Hoobbs, 2006).

Hence, Super markets and other retailers in the direct sales chain demand

larger varieties of flowers. The auction market, however, can handle a large volume

of one variety.

Vertical integration and innovation: Involvement in direct sales market requires

improved production capability and innovation. Increased competition in the supply

chain through differentiation (for example, increasing number of varieties) and

reliability of supply necessitates own capacity for propagation of varieties. Dolan

and Humphrey (2000) has found a tendency of vertical integration within the chain

as several exporters that had bought most or all their products have begun to acquire

to own their growing capacity

International Scenario and Trade

About 305,105 ha area was under flower production in different countries of

the world, of which the total area in Europe was 44,444 ha, North America 22,388

~ 6 ~

ha, Asia and Pacific 215,386 ha, the Middle East and Africa 2,282 ha and central and

South Africa 17,605 ha. Flowers grown under protected greenhouses in different

countries around the world total 46,008 ha. India has the maximum area under

ornamental crops (88,600 ha) followed by China (59,527 ha), Indonesia (34,000

ha), Japan (21,218 ha), USA (16400 ha), Brazil (10285 ha), Taiwan (9.661 ha),

The Netherlands (8,017 ha), Italy (7.654 ha), the united Kingdom (6,804 ha),

Germany (6,621 ha) and Colombia (4,757 ha).Globally more than 145 countries

are involved in the cultivation of ornamental crops and the area under these crops

is increasing steadily. The production of flower crops has increased significantly

and there is a huge demand for floricultural products in the world, resulting in

growing International Flower Trade. The world consumption of cut flowers and

plants is increasing and there is a steady annual increase of 10 to 15 per cent in all

importing countries. Due to globalization and its effect on income, there is growing

per capita floriculture consumption in most of the countries .In case of developed

countries, the consumption of flowers is closely linked with GNP per capita income

and urban population.

Indian Scenario and Trade

India is bestowed with several agro-climatic zones conducive for production

of sensitive and delicate floriculture products. During the decade after liberalization

floriculture industries took giant steps in the export arena. This era has seen a

dynamic shift from sustenance production to commercial production. As per National

Horticulture Database published by National Horticulture Board, during 2012-13 the

area under floriculture production in India was 232.74 thousand hectares with a

production of 1.729 million tonnes loose flowers and 76.73 million tonnes cut

flowers. Floriculture is now commercially cultivated in several states with West

Bengal (32%), Karnataka (12%) Maharashtra (10%), having gone ahead of other

producing states like Madhya Pradesh, Gujarat, Punjab, Haryana, Andhra Pradesh,

Orissa, Jharkhand, Uttar Pradesh and Chhattisgarh. Indian floriculture industry

comprises of flowers such as Rose, Tuberose, Glads, Anthurium, Carnations, and

Marigold etc. Cultivation is undertaken in open farm conditions as well as playhouses

~ 7 ~

and greenhouses. India's total export of floriculture was Rs. 455.90 crores in 2013-14.

The major importing countries were United States, Netherlands, Germany, United

Kingdom, United Arab Emirates, Japan and Canada. There are more than 300 export-

oriented units in India. More than 50% of the floriculture units are based in

Karnataka, Andhra Pradesh and Tamil Nadu. With the technical collaborations from

foreign companies, the Indian floriculture industry is poised to increase its share in

world trade.

Status of Floriculture in Uttar Pradesh

Uttar Pradesh is a major state in area and production of flowers in the

country. The area under flower crops was 16,580 ha and the production was

32.16 thousand million tons of loose flowers and 32.16 thousand million

tons of cut flowers during 2013-14. A large number of flowers like jasmine,

tuberose, rose, chinarose chrysanthemum, marigold, crossandra, barleria, lily,

calla, carnation, gerbera and anthodium are commercially cultivated in the state.

Many hi-tech units with export tie-ups are there in the state. There are several

commercial tissue culture laboratories.

Objectives

1. To examine the marketing channels of flowers

2. To examine the marketing costs and marketing efficiency

3. To identify the constraints faced by all stakeholders.

4. To study the perceptions of all stakeholders for market improvement

Chapter-II

REVIEW OF LITERATURE

Armitrage et al. (1992) in the book named “Introduction to Floriculture”,

has contributed Specialty Cut Flower. “He studied various reports and reviewed the

production of specialty cut flower. It was concluded that specialty flowers were

economical in field but not in the greenhouse. He studied detailed guidelines

concerning cost of production of field grown specialty flower. According to his

observation, any businessperson has ability to make profit. It is depend upon keeping

cost of production down and factors that affect cost included location, size, and

managerial skill, and market channel, time of year and space utilization. Cut flower

can be profitable if done efficiently

Bose et al. (1999) discussed about various aspects of floriculture in his book

named “Floriculture and Landscaping”. He focused on prospect of floriculture in

India. He mentioned commercial floriculture is an activity, which has assumed same

importance only in the recent times. In most part of country, Flower growing has

carried out on smallholding, only as a part of the regular farming system. According

to his study Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Maharashtra and

Rajasthan were the leading states in hi-tech floriculture.

Bhattacharji and De (2003) in their book “Advanced Commercial

floriculture” has given information related to traditional and modern floriculture in

India. Recently, Indian Government gives incentives to floriculture industry as the

part of foreign trade policy. According to this policy Pune, Bangalore, Nasik,

Palanpur, Trivandrum, Ooty, Simla and other cities in India have geared-up the

floriculture business. They observed that the highest number of small green house

units for growing flowers was finding in Maharashtra. They mention many problems

had been facing flower industry e.g. lack of basic infrastructure, non-availability of

pesticides, high cost of production, tax burden, import duty, high rate of loyalty, poor

facilities for post harvest handling, poor market information, delay in claiming

subsidies, etc. They observed major constraints faced by traditional flower grower,

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such as lack of availability of good quality planting material and seeds, lack of

adequate storage facilities and transportation, etc. They suggested, for improvement

of the situation of loose flowers those are to arrange supply of better quality planting

materials and seed, equip the farmers with better growing technology of flowers,

provide financial help to flower growers, provide cheap transport facilities, etc.

Gajanan and Mysoure (2003) in the book named “Advanced commercial

floriculture” have contributed„ Production and marketing research on traditional

flowers‟. In this unit, authors discussed the matter of traditional flower production in

India. The area and production of floriculture crops appears to have increased in

recent decades. It we needed that there has been tremendous increase in area under all

the major flowers. They have classified the flowers in seasonal and perennial flower.

They mentioned that jasmine and rose uses as raw materials for the preparation of

perfumeries and used as raw material in dried flower industry. Authors also comment

on marketing channels of traditional flower. They mentioned after review of the

studies on flower marketing indicate that more than 60 percent of cultivators sold

their flower through commission agents at the market. They remarked the

commission agents play an important role in marketing of the flowers. Farmers prefer

to sale with pre- harvest contractors due to high cost of marketing price, risk in the

market, need for immediate cash, etc

Prasad and Kumar (2005), in their book „Commercial Floriculture‟

have stated Ornamental horticulture more appropriately covers the complete industry

of flowers Floriculture has by far a greater annul growth potential of 25 to 30 per

cent, which is 25 to 30 times more than that of cereals or any other agricultural

produce. India being especially well placed to meet the international demand of cut

flowers that peaks during winter months. They remarked the government has

approved 24 projects with total foreign investment of 847 crore cleared to boost

flower export. The Indian companies almost forced to sell their products in auction

held in Holland.

It was also discussed other aspects of floriculture, which is floriculture as

a career. He remarked, floriculture has a wide and includes a great variety and

~ 10 ~

diversify of job opportunities. In general, ornamental flowers classified variedly. To

the commercial producer or whole-seller or the retailer or flower producer or to the

manufacturer or seller or floriculture supplier it is business and to the homeowner

it is a fascinating hobby. There are many career opportunities i.e. the production of

flowers, the buying and selling of floriculture products, processing of floriculture

products, the landscaping of private and public properties and research, teaching

and extension phases of floriculture, etc.

Sale and Ganvir (2006), in the book named “Advances in ornamental

horticulture” have contributed “Marketing of cut flowers and potted plants in

India. In this contribution, authors discussed marketing aspect of cut flowers.

They focus on export- oriented approach of government. According to author‟s

opinion, in the post liberalization era, floriculture has identified by the government

as one of the major thrust areas for export. They pointed the earnings have

increased, the area has increased, the prices of flowers being remunerative, the

returns in flowers are high. They analyzed various theses on marketing of flowers

and reviewed that the main item in the total cost was the marketing cost. Its share

observed to be 38 and 58 per cent of the total cost (cultivation cost + marketing

cost) during the respective years.

They reviewed marketing channels and identified the four important

types of marketing channels for the cut flower trade. First cultivator–packer-

wholesaler–retailer–consumer, second is cultivator-packer-retailer–consumer, third

is wholesaler–retailer–consumer, and fourth is cultivator-consumer those are various

part of the India.

They analyzed market margins that showed the producer gets only 40 paisa

from the consumer rupee. They recommended the floriculture industry needs

modernization, Government of India can help in creating more facilities in the form

of various infrastructural facilities.

Chapter-III

RESEARCH METHODOLOGY

MARKETING OF FLOWERS: A CASE STUDY OF BANSPHATAK FLOWERS

MARKET VARANASI METHODOLOGICAL ASPECT HAS BEEN DISCUSSED

UNDER DIFFERENT HEAD.

3.1 Sampling technique

3.2 Survey techniques

3.3 Period of enquiry

3.4 Analytical tools

3.1 SAMPLING TECHNIQUE

Simple random technique was used to select the Farmer, Retailer, and

Consumer who visited daily to the mandi.

3.1.1 Selection of location/mandi

Varanasi district having maximum producers and consumption of flowers was

selected purposively. There are two major flower markets in Varanasi city. Out of that

Bansphatak flowers market being major market was selected purposively.

3.1.2 Selection of stakeholders

On an average 200 flower producer brought their produce to mandi, 30

farmers (15%) were selected randomly, Beside this 10 retailers and 20 consumers

were also selected randomly.

Farmers 30

Retailers 10

Consumers 20

Total 60

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3.2 SURVEY TECHNIQUE

During the study both primary and secondary data was collected.

3.2.1 Primary data

The Primary data were collected through the schedule which was filled by the

researcher interaction with the stakeholders.

3.2.2 Secondary data

The secondary data was collected through Books. Journal, Articles, Internet,

3.3 PERIOD OF ENQUIRY

The study was undertaken during the year 2015. And all the activities involved

by the stakeholders during the agricultural year 2014-15.

3.4 ANALATICAL TOOLS

3.4.1 Marketing Cost

Marketing cost is the actual expenses incurred in bringing the good and

services from the producer to the consumer. Marketing cost included, handling

charges at local point, assembling charges, transport handling by whole seller and

retailing charge to consumer. These cost are paid by the producer to marketing

function arises.

Formula of Marketing

M.C. =Cf + Cm1 + Cm2 +...................+ Cmi

Where,

C = Cost of Marketing of commodity

Cf = Cost incurred by producer

Cm1 = Cost incurred by middleman

~ 13 ~

3.4.2 Marketing Efficiency

Measure of the availability (to all participants in a market ) of the information

that provides maximum opportunities to buyers and sellers to effect transaction with

minimum transaction cost.

Marketing efficiency of any activity or process is defined as the ratio of output

and input.

Formula of Marketing Efficiency

M.E = V/I – 1

Where,

V = value of produce sold

I = Total marketing cost and margins

3.4.3 Marketing margins

Marketing margins are calculated by small businesses in nearly every industry.

Marketing margins identify the disparity between the cost of purchasing items

wholesale and the income made by selling them.

Absolute margin (Am) = PRi – (Ppi – Cmi)

Where,

PRi = Sale price of the middleman

Ppi = Purchase price of the middleman

Cmi = Marketing cost Incurred by the middleman

Chapter-IV

DESCRIPTION OF STUDY AREA

4.1 GENERAL DESCRIPTION OF VARANASI DISTRICT

Varanasi is a city on the banks of the Ganga in Uttar Pradesh, 320 kilometers

southeast of the state capital, Lucknow. It is holiest of the seven sacred cities

(SaptaPuri) in Hinduism and Jainism. Hindus believe that death at Varanasi

brings salvation. It is one of the oldest continuously inhabited cities in the world and

the oldest in India. Varanasi is the spiritual capital of India. The name

Varanasi possibly originates from the names of the two rivers: Varuna, still flowing in

Varanasi, and Asi, a small stream near Assi Ghat. The old city does lie on the north

shores of Ganga River bounded by its two tributaries Varuna and Asi. The city has

been a cultural center of North India for several thousand years, and has a history that

is older than most of the major world religions. Varanasi is often referred to as “the

city of temples”, “the holy city of India”, “the religious capital of India”, “the city of

lights”,” the city of learning”, and “the oldest living city on earth.”

4.2 HISTORY OF VARANASI

The land of Varanasi (Kashi) has been the ultimate pilgrimage spot for Hindus

for ages. Often referred to as Benares, Varanasi is the oldest living city in the world.

These few lines by Mark Twain say it all: "Benaras is older than history, older than

tradition, older even than legend and looks twice as old as all of them put together".

Hindus believe that one who is graced to die on the land of Varanasi would attain

salvation and freedom from the cycle of birth and re-birth. Abode of Lord Shiva and

Parvati, the origins of Varanasi are yet unknown. Ganges in Varanasi is believed to

have the power to wash away the sins of mortals.

Ganges is said to have its origins in the tresses of Lord Shiva and in Varanasi,

it expands to the mighty river that we know of. The city is a center of learning and

civilization for over 3000 years. With Sarnath, the place where Buddha preached his

first sermon after enlightenment, just 10 km away, Varanasi has been a symbol of

~ 15 ~

Hindu renaissance. Knowledge, philosophy, culture, devotion to Gods, Indian arts and

crafts have all flourished here for centuries.

Vaishnavism and Shaivism have co-existed in Varanasi harmoniously. With a

number of temples, Mrs. Annie Besant chose Varanasi as the home for her

'Theosophical Society' and Pandit Madan Mohan Malviya, to institute 'Benares Hindu

University, the biggest University in Asia. Ayurveda is said to be originated at

Varanasi and is believed to be the basis of modern medical sciences such as Plastic

surgery, Cataract and Calculus operations. Maharshi Patanjali, the preceptor of

Ayurveda and Yoga, was also affiliated with Varanasi, the holy city. Varanasi is also

famous for its trade and commerce, especially for the finest silks and gold and silver

brocades, since the early days.

Varanasi has also been a great center of learning for ages. Varanasi is

associated with promotion of spiritualism, mysticism, Sanskrit, yoga and Hindi

language and honored authors such as the ever-famous novelist Prem Chand and Tulsi

Das, the famous saint-poet who wrote Ram Charit Manas. Aptly called as the cultural

capital of India, Varanasi has provided the right platform for all cultural activities to

flourish. Many exponents of dance and music have come from Varanasi. Ravi

Shankar, the internationally renowned Sitar maestro and Ustad Bismillah Khan, (the

famous Shehnai player) are all sons of the blessed city or have lived here for major

part of their lives.

4.2.1 Geography

The city of Varanasi is located in the middle Ganges valley of North India, in

the Eastern part of the state of Uttar Pradesh, along the left crescent-shaped bank of

the Ganges river. It has the headquarters of Varanasi district. The "Varanasi Urban

Agglomeration" — an agglomeration of seven urban sub-units — covers an area of

112.26 km 2 (approximately 43 mi²). The urban agglomeration is stretched between

82° 56’E - 83° 03’E and 25° 14’N - 25° 23.5’N. Being located in the Indo-Gangetic

Plains of North India, the land is very fertile because low level floods in the Ganges

continually replenish the soil.

http://en.wikipedia.org/wiki/Varanasi_district

http://en.wikipedia.org/wiki/Indo-Gangetic_Plain

http://en.wikipedia.org/wiki/Indo-Gangetic_Plain

http://en.wikipedia.org/wiki/North_India

~ 16 ~

On a local level, Varanasi is located on a higher ground between rivers

Ganges and Varuna, the mean elevation being 80.71 m. As a result of absence of

tributaries and canals, the main land is continuous and relatively dry. In ancient times,

this geographic situation must have been highly favourable for forming settlements.

But it is difficult to ascertain the original geography of Varanasi because the city's

current location is not exactly the same as the one described in some old texts.

Varanasi is often said to be located between two confluences: one of the

Ganges and Varuna, and other of the Ganges and Assi, (Assi having always been a

rivulet rather than a river.) The distance between these two confluences is around 2.5

miles (4.0 km), and religious Hindus regard a round trip between these two places—a

Pancha-kroshi Yatra (a five mile (8 km) journey) ending with a visit to a Sakshi

Vinayak Temple as a holy ritual.

4.2.2 Climate

Varanasi experiences a humid subtropical climate (Köppen climate

classification Cwa) with large variations between summer and winter temperatures.

Summers are long, from early April to October, with intervening monsoon seasons

and are also extremely hot, even by South Asian standards. The temperature ranges

between 22°C – 46 °C (72°F – 115 °F) in the summers. Winters in Varanasi see very

large diurnal variations, with warm days and downright cold nights. Cold waves from

the Himalayan region cause temperatures to dip across the city in the winter from

December to February and temperatures below 5 °C are not uncommon. The average

annual rainfall is 1,110 mm (44 in). Fog is common in the winters, while hot dry

winds, called loo, blow in the summers.

Through a combination of water pollution, new constructions of upstream

dams, and increase in the local temperature, the water level of the Ganges has recently

gone down significantly, and small islands have become visible in the middle of the

river.

http://en.wikipedia.org/wiki/Varuna_River

http://en.wikipedia.org/wiki/Hindu

http://en.wikipedia.org/wiki/Humid_subtropical_climate

http://en.wikipedia.org/wiki/K%C3%B6ppen_climate_classification

http://en.wikipedia.org/wiki/K%C3%B6ppen_climate_classification

http://en.wikipedia.org/wiki/Celsius

http://en.wikipedia.org/wiki/Fahrenheit

http://en.wikipedia.org/wiki/Diurnal_cycle

http://en.wikipedia.org/wiki/Himalaya

http://en.wikipedia.org/wiki/Loo_(wind)

~ 17 ~

4.2.3 Demographics

The population of Varanasi urban agglomeration in 2001 was 1, 371, 749; the

sex ratio was 879 females every 1000 males. As per 2011 census, population stands at

3, 138, 670. However, the area under Varanasi Nagar Nigam has a population of 1,

100, 748 with the sex ratio being 883 females for every 1000 males. The literacy rate

in the urban agglomeration is 77% while that in the municipal corporation area is

78%. Approximately 138, 000 people in the municipal area live in slums.

4.2.4 Economy

4.2.4.1 Weaving

The most extravagant Banarasi saris use silk and gold-wrapped silk yarn with

supplementary weft brocade.Varanasi has several small cottage industries, including

producting of Banarasi saris, which are a regional type of sari made from silk. The

city also produces carpets and handicrafts. According to some writers, Varanasi has a

rather high rate of Child labour given the unorganised nature of small scale industries.

As of 2009, there are an estimated 300,000 weavers in Varansi. Numerous

weavers have lost work or moved elsewhere as saris become less popular in India and

more imported saris impact the market.

Varanasi saris are adorned with intricate designs and zari embellishments

making it popular during traditional functions and weddings. Earlier, the embroidery

on sarees was often done with threads of pure gold. In 2009, weaver associations and

cooperatives together secured Geographical Indication (GI) rights for ‘Banaras

Brocades and Sarees’.

4.2.4.2 Agriculture

Varanasi produces large quantities of langra mangoes, which are variety

developed in the area. Banarasi paan (betel leaf) and khoa (a milk product) are

popular, and the related small-scale industries employ many people.

http://en.wikipedia.org/wiki/Varanasi_Nagar_Nigam

http://en.wikipedia.org/wiki/Banarasi_saris

http://en.wikipedia.org/wiki/Banarasi_saris

http://en.wikipedia.org/wiki/Sari

http://en.wikipedia.org/wiki/Silk

http://en.wikipedia.org/wiki/Geographical_indication

http://en.wikipedia.org/wiki/Paan

http://en.wikipedia.org/wiki/Khoa

~ 18 ~

Table 4.2.4 Land use pattern in Varanasi district:

Particulars Area (‘000 ha.)

Total geographical area 152.679

Cultivated area 95.748

Area sown more than once 62.18

Gross cropped area 134.073

Net irrigated area 82.206

Rainfed area 13.542

Cropping Intensity (%) 176

Land under non-agricultural use 2.932

Cultivable waste land 2.56

Barren and uncultivable land 2.151

Source: District Statistical bulletin Varanasi Govt. U.P.

4.2.5 Manufacturing

Indian Railways runs a major diesel locomotive factory in Varanasi, Diesel

Locomotive Works (DLW). BHEL, a large power equipment manufacturer, also runs

a plant here.

According to Macaulay, Varanasi was the "city which, in wealth, population,

dignity and sanctity was among the foremost in Asia". He described the commercial

importance saying "from the looms of Benaras went forth the most delicate silks that

adorned the halls of St. James and of Versailles.

4.2.6 Tourism

Varanasi is a noted centre for silk weaving and brassware. Fine Silks and

Brocaded fabrics, Exquisite Saris, Brassware, Jewellery, Woodcraft, Carpets, Wall

hangings, Lamp shades and masks of Hindu and Buddhist deities are some of

http://en.wikipedia.org/wiki/Indian_Railways

http://en.wikipedia.org/wiki/Diesel_Locomotive_Works

http://en.wikipedia.org/wiki/Diesel_Locomotive_Works

http://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited

~ 19 ~

Varanasi's shopping attractions. The main shopping areas include the Chowk, Gyan

Vapi, Vishwanath Gali, Thatheri Bazar, Lahurabir, Godoulia or Dashswamedh Gali

and Golghar. Besides the illustrious and fine silks and brocaded fabrics, one can also

buy shawls, carpets, wall hangings, Zari work; stone inlay work, glass beads and

bangles, masks of Hindu and Buddhist deities and lampshades. One can also buy

'kamandalam' or brass water pot from Varanasi, which is often used by saints to carry

water. People buy bottled 'Ganga jal' or jerrycans from the riverbank too for religious

purposes or to be used as Holy Water in various rituals. Besides, people can also take

water of the Ganges themselves from the river. Assi Ghat, a midway point between

Godaulia in the heart of downtown and youth culture of Benares Hindu University is

also a major tourist point.

Keeping apace with the modern world, the ancient city has paved way for

malls and multiplexes. The prominent ones being IP Mall in Sigra and JHV Mall in

the Varanasi Cantonment area.

~ 20 ~

Chapter-V

RESULTS AND DISCUSSION

Present chapter focuses on the results of the study and the results are presented

under following head.

The whole chapter was divided into following sub heads:

1. Marketing channels of flowers

2. Marketing costs and marketing efficiency

3. Constraints faced by all stakeholders.

4. Perceptions of all stakeholders for market improvement.

5.1 MARKETING CHANNELS OF FLOWERS

Tables 5.1 Marketing channels of flowers

S.No. Marketing channel Volume of flowers

marketing

1. Channels I (Producer/Farmers-- consumer) 25%

2. Channels II(Producer/Farmers –retailer--consumer) 75%

Marketing channel is the path through which product passes from producers to

ultimate consumers. Two marketing channels observed in the market (1) Producers

to consumers (P-C) and (2) producer to retailers to consumers (P-R-C). It in evidence

from the tables 25% flowers were marketed through channel-1 and 75% flowers were

marketed through channel-2.

~ 21 ~

Table 5.1.1 Composition of flowers sold by producers

S.No. Flowers *Respondents (30) *Percentage

1 Marigold 22 73.33

2 Rose 17 56.66

3 Neelkanth 10 33.33

4 Tulsi 3 10

5 Madaar 13 43.33

6 Bela 14 46.33

7 Tangri 8 26.66

8 Chinarose 17 56.66

* It was found that one producer brought more than one flowers. In this tables show

that 73.33% producers sold marigold, 56.66%, 33.33%, 10%, 43.33%, 46.33%,

26.66% and 56.66% rose, neelkanth, tulsi, madar, bela, tangri and chinarose

respectively.

Fig. 5.1.1

0

5

10

15

20

25

Marigold

Rose Neelkanth

Tulsi Madaar Bela Tangri Chinarose

Series1 22 17 10 3 13 14 8 17

Composition of flowers sold by producers

~ 22 ~

There were 8 type of flowers which was studied by researcher in mandi in

which 73.33 % of the farmers were selling the marigold, 56.66% of the farmers were

selling Rose, 33.33% Neelkanth 10%, Tulsi 43.33%, Madar 46.33%, Bela 26.66%,

Tangri 56.66%, Chinarose respectively sold by the farmers.

Table 5. 1.2 Composition of flowers sold by retailers

S.No. Flowers *Respondents (10) Percentage

1 Marigold 9 90

2 Rose 4 40

3 Neelkanth 1 10

4 Tulsi 0 0

5 Madaar 6 60

6 Bela 8 80

7 Tangri 3 30

8 Chinarose 2 20

* It was found that one retailer brought more than one flowers. In this tables show that

90% retailers sold marigold, 40%, 10%, 0%, 60%,80%, 30%, and 20% rose,

neelkanth ,tulsi, madar,bela, tangri and chinarose respectively,

Fig. 5.1.2

This table and bar graph show that 90% of the retailers were selling marigold,

40% rose, 10% neelkanth, 60% madar, 80%bela, 30% tangri, and 20% chinarose

respectively

0123456789

Marigold Rose Neelkanth

Tulsi Madaar Bela Tengri Chinarose

Series1 9 4 1 0 6 8 3 2

Composition of flowers sold by retailers

~ 23 ~

5.2 MARKETING COSTS AND MARKETING EFFICIENCY

Table 5.2.1 Marketing Costs and Marketing Margin of Marigold (Rs`600/100

Pieces)

S.No. Particulars Channel-1 Channel-2

Net price received by farmers 300 300

Marketing cost incurred by farmers

1. Garland making 50 50

2. Loading/unloading charge 40 40

3. Transportation charge 70 70

4. Spoilage and wastage 100 100

5. Storage charge -------

6. Market charge 10 10

7. Others 30 30

Total Marketing Cost 300 300

Consumers Price 600 1000

Margin of Retailers 270

Marketing cost of retailers

1. Labour and weighing charge 20

2. Transportation charge 30

3. Storage charge ----------

4. Spoilage and wastage 50

5. Others 30

Total Marketing Cost 130

In the tables 2.1 show that total cost and total margin of marigold was 300 and

300 through channel-1 and 130 and 270 through channel-2 respectively.

Marketing Efficiency of Marigold

M.E = V/I – 1

Where,

V = Value of produce sold

I = Total marketing cost and margin

~ 24 ~

Table 5.2.2

S.No. Particular Channel-1 Channel-2

1 Value of produce sold 600 1000

2 Total marketing cost 300 130

3 Total market margin 300 270

Marketing Efficiency 1.0016 2.50

This table show that the marketing efficiency of marigold higher in channel-

2(2.50) compare to channel-1(1.0016)

Table 5.2.3 Marketing Costs and Marketing Margin of Rose (Rs`/100 Pieces)










7. Others 30 30









5. Others 30


In the tables 5.2.3 show that total cost and total margin of rose was 300 and

900 through channel-1and 130 and 670 through channel-2 respectively

~ 25 ~

Marketing Efficiency of Rose

M.E = V/I – 1

Where, V = Value of produce sold; I = Total marketing cost and margin

Table 5.2.4






This table show that the marketing efficiency of rose higher in channel-2(2.50)

compare to channel-1(1.00).

Table 5.2.5 Marketing Costs and Marketing Margin of Neelkanth (Rs`/100

Pieces)










7. Others 30 30









5. Others 30


In the tables 5.2.5 show that total cost and total margin of neelkanth was 300

and 900 through channel-1 and 130 and 130 and 670 through channel-2 respectively.

~ 26 ~

Marketing Efficiency of Neelkanth

M.E = V/I – 1

Where, V = Value of produce sold; I = Total marketing cost and margin

Table 5.2.6 Marketing Efficiency of Neelkanth






This table show that the marketing efficiency of neelkanth higher in channel-2

(2.50) compare to channel-1(1.00).

Table 5.2.7 Marketing Costs and Marketing Margin of Tulsi (Rs`/100 Pieces)










7. Others 30 30









5. Others 30


In the tables 5.2.7 show that total cost and total margin of tulsi was 300 and

600 through channel-1 and 130 and 130 and 470 through channel-2 respectively

~ 27 ~

Marketing Efficiency of Tulsi

M.E = V/I – 1

Where, V = value of produce sold; I = Total marketing cost and margin

Table 5.2.8 Marketing Efficiency of Tulsi






This table show that the marketing efficiency of tulsi higher in channel-2

(2.50) compare to channel-1(1.0011)

Table 5.2.9 Marketing Costs and Marketing Margin of Madar (Rs`/100 Pieces)




1 Garland making 50 50






7. Others 30 30









5. Others 30


In the tables 5.2.9 show that total cost and total margin of madar was 300 and


~ 28 ~

Marketing Efficiency of Madar

M.E = V/I – 1


Table 5.2.10 Marketing Efficiency of Madar






This table show that the marketing efficiency of madar higher in channel-2


Table 5.2.11 Marketing Costs and Marketing Margin of Bela(Rs`/100 Pieces)



Marketing cost of farmers

Garland making 50 50






7. Others 30 30









5. Others 30


In the tables 5.2.11 show that total cost and total margin of bela was 300 and


~ 29 ~

Marketing Efficiency of Bela

M.E = V/I – 1


Table 5.2.12 Marketing Efficiency of Bela






This table show that the marketing efficiency of bela higher in channel-2(2.50)

compare to channel-1(2.006)

Table 5.2.13 Marketing Costs and Marketing Margin of Tangri (Rs`/100 Pieces)










7. Others 30 30









5. Others 30


In the tables 5.2.13 show that total cost and total margin of tangri was 300 and


~ 30 ~

Marketing Efficiency of Marigold

M.E = V/I – 1


Table 5.2.14 Marketing Efficiency of Tangri






This table show that the marketing efficiency of tangri higher in channel-2


Table 5.2.15 Marketing Costs and Marketing Margin of Chinarose (Rs`/100

Pieces)



Marketing cost of farmers







7. Others 30 30









5. Others 30


In the tables 5.2.15 show that total cost and total margin of rose was 300 and


~ 31 ~

Marketing Efficiency of Chinarose

M.E = V/I – 1


Table 2.16 Marketing Efficiency of Chinarose






This table show that the marketing efficiency of chinarose higher in channel-

2(1.66) compare to channel-1 (1.001).

~ 32 ~

5.3 CONSTRAINTS FACED BY ALL STAKEHOLDERS

Table 5.3.1 Constraints faced by Farmers

S.No. Particular Frequency (N=30) Percentage

1. Unavailability of labour 19 63.33

2 Source of finance 11 36.66

3 Price instability 30 100

4 Wastage and risk 23 76.66

5 Storage 17 56.66

6 Transportation 30 100

It was found that one farmer faced by more than one problem and this tables

show that price instability and transportation reported 100% respondents, wastage and

risk reported by 76.66% , labour by 63.33%,storage by 56.66% and finance by

36.66% respondent respectively.

Fig. 5.3.1

In the fig.3.1 the major problems faced by the farmers had price instability and

transportation reported 100% respondents, wastage and risk reported by 76.66% ,

labour by 63.33%,storage by 56.66% and finance by 36.66% respondent respectively.

0

5

10

15

20

25

30

Labour Source ofFinance

Priceinstability

Wastageand Risk

Storage Transportation

Series1 19 11 30 23 17 30

Constraints faced by farmers

~ 33 ~

Table 5.3.2 Constraints faced by Retailers


1. Lack of labour 9 90

2 Transportation 7 70

3 Wastage and risk 7 70

4 Price instability 9 90

5 Parking 10 100

It was found that one retailers faced by more than one problem and this tables

show that parking reported 100% respondents, price instability and labour reported by

90% , wastage &risk and transportation by 70% respondent respectively.

Fig. 5.3.2

In the fig.3.2 the major problems faced by the retailers had parking reported

100% respondents, price instability and labour reported by 90% , wastage &risk and

transportation by 70% respondent respectively.

0

1

2

3

4

5

6

7

8

9

10

Lack of labour Transportation Wastage andRisk

Price instability Parking

Series1 9 7 7 9 10

Axi

s Ti

tle

Constraints faced by retailers

~ 34 ~

Table 5.3.3 Constraints faced by Consumers


1. Price instability 20 100

2 Lack of market information 12 60

3 Parking 14 70

It was found that one consumers faced by more than one problem and this

tables show that price instability reported 100% respondents, parking by 70% , lack of

market information by 60% respondent respectively.

Fig. 5.3.3

In the fig.3.3 the major problems faced by the consumers had price instability

reported 100% respondents, parking by 70% , lack of market information by 60%

respondent respectively.

0

5

10

15

20

Price instability Lack of marketinformation

Parking

Series1 20 12 14

Axi

s Ti

tle

Constraints faced by Consumers

~ 35 ~

5.4 Perceptions of all stakeholders for market improvement

Table 5.4.1 Perception of the farmers


Str

on

gly

ag

ree

Ag

ree

No

Idea

Dis

ag

ree

Str

on

gly

dis

ag

ree

Str

on

gly

ag

ree

Ag

ree

No

Idea

Dis

ag

ree

Str

on

gly

dis

ag

ree

1 Increase the

market place

9 18 3 0 0 30 60 10 0 0

2 Improved

sitting

arrangement

0 6 0 24 0 0 20 0 80 0

3 Parking

facility

11 19 0 0 0 37 63 0 0 0

4 Storage

facility

18 11 1 0 0 60 37 3 0 0

5 Cover

market place

10 18 3 0 0 33 60 7 0 0

In this tables show that for market improvement 30% farmers were strongly

agreed, 60% agreed and 10% had no idea. In case of sitting arrangement 20%

respondents were agreed and 80% disagreed. And related to parking facility 37%of

the respondents were strongly agreed and 63% agreed. In case of storage facility 60%

of the respondents were strongly agreed and 37%,3% were agreed and no idea

respectively. And for covered market place 33% respondents were strongly agreed

60%,7% were agreed and no idea respectively

Fig. 5.4.1

0

10

20

30

40

50

60

70

80

Stronglyagree

Agree No idea Disagree Stronglydisagree

Increase the market place

Improved sitting arrangement

Parking facility

Storage facility

Covered market place

~ 36 ~

For the market improvement the perception of the farmers had differ to each

others for question of market improvement 30% farmers were strongly agreed, 60%

agreed and 10% had no idea. In case of sitting arrangement 20% respondents were

agreed and 80% disagreed. And related to parking facility 37%of the respondents

were strongly agreed and 63% agreed. In case of storage facility 60% of the

respondents were strongly agreed and 37%,3% were agreed and no idea respectively.

And for covered market place 33% respondents were strongly agreed 60%,7% were

agreed and no idea respectively.

Table 5.4.2 Perception of the Retailers


Str

on

gly

ag

ree

Ag

ree

No

Idea

Dis

ag

ree

Str

on

gly

dis

ag

ree

Str

on

gly

ag

ree

Ag

ree

No

Idea

Dis

ag

ree

Str

on

gly

dis

ag

ree

1 Increase the

market place

2 7 1 0 0 20 70 10 0 0

2 Improved

sitting

arrangement

0 10 0 0 0 0 100 0 0 0

3 Parking

facility

8 2 0 0 0 80 20 0 0 0

4 Storage

facility

0 8 0 2 0 0 80 0 20 0

5 Cover

market place

0 10 0 0 0 0 100 0 0 0

This tables show that for market improvement 20% retailers were strongly

agreed, 70% agreed and 10% had no idea. In case of sitting arrangement 100%

respondents were agreed. And related to parking facility 80%of the respondents were

strongly agree and 20% agree. In case of storage facility 80% of the respondents were

agreed and 20%diagreed. And for covered market place 100% respondents were

agreed 60%.

~ 37 ~

Fig. 5.4.2

For the market improvement the perception of the Retailers had differs to each

other’s for question of market improvement 20% retailers were strongly agreed, 70%

agreed and 10% had no idea. In case of sitting arrangement 100% respondents were

agreed. And related to parking facility 80%of the respondents were strongly agree and

20% agree. In case of storage facility 80% of the respondents were agreed and

20%diagreed. And for covered market place 100% respondents were agreed 60%.

Table 5.4.3 Perception of the Consumers


Str

on

gly

ag

ree

Ag

ree

No

Idea

Dis

ag

ree

Str

on

gly

dis

ag

ree

Str

on

gly

ag

ree

Ag

ree

No

Idea

Dis

ag

ree

Str

on

gly

dis

ag

ree

1 Increase the

market place

4 16 0 0 0 20 80 0 0 0

2 Improved

sitting

arrangement

0 9 11 0 0 0 45 55 0 0

3 Parking

facility

11 9 0 0 0 55 45 0 0 0

4 Storage

facility

5 12 3 0 0 25 60 15 0 0

5 Cover

market place

12 8 0 0 0 60 40 0 0 0

0

10

20

30

40

50

60

70

80

90

100

Stronglyagree




Parking facility

Storage facility


~ 38 ~

This tables show that market improvement 20% consumers were strongly

agreed and 80% agreed. In case of sitting arrangement 45%% respondents were

agreed and 55% no idea. And related to parking facility 55%of the respondents were

strongly agreed and 45% agree. In case of storage facility 25% of the respondents

were strongly agreed and 60%,15% were agreed and no idea respectively. And for

covered market place 60% respondents were strongly agreed and 40% were agreed.

Fig. 5.4.3

For the market improvement the perception of the consumers had differ to

each others for question of market improvement 20% consumers were strongly agreed

and 80% agreed. In case of sitting arrangement 45%% respondents were agreed and

55% no idea. And related to parking facility 55%of the respondents were strongly

agreed and 45% agree. In case of storage facility 25% of the respondents were

strongly agreed and 60%,15% were agreed and no idea respectively. And for covered

market place 60% respondents were strongly agreed and 40% were agreed.

0

10

20

30

40

50

60

70

80

Stronglyagree




Parking facility

Storage facility


Chapter-VI

SUMMARY AND CONCLUSION

Floriculture is the sunshine industry of India as it offers excellent self

employment and good remuneration for the small and marginal farmers. Flowers have

been considered as the symbol of grace and elegance and a feast for our eyes. They

are used on all religious festival and occasions

Generally flowers are offered by devotees in Temple, Gurudwara, Church and

Masjids Flowers are used as a floral decoration. Even dried flowers are also used in

flower craft or arrangement of garlands and bouquets are prepared and offered to

welcome the dignitaries. When cut flowers are used for vase decoration that will be a

marvellous piece of indoor decoration

In India, the area under floriculture is 2.55 lakh hectares with a production of

1754.49 MT of loose flowers & 542.53 MT cut flowers .Floriculture in India is

estimated to cover an area of 3.06 lakh ha with a production of 1840 MT of loose

flowers & 548 MT cut flowers.

The present study was conducted in Varanasi district of Uttar Pradesh with the

different stakeholder’s farmers (30) retailers (10) and consumers (20). Under the

specific objective

To examine the marketing channels of flowers

To examine the marketing costs and marketing efficiency

To identify the constraints faced by all stakeholders.

To study the perceptions of all stakeholders for market improvement

The finding results summarised as below:

Two types of marketing channel was present in the study area (P-C) and (P-R-

C) in which mostly eight types of flowers was sold in the mandi like marigold, rose,

~ 40 ~

neelkanth ,tulsi ,madar, bela tangari and chinarose the market efficiency of channel-2

was higher than channel-1.

In the market, farmers were selling higher 73% marigold, 56.66%, 33.33%,

10%, 43.33%, 46.33%, 26.66%,56.66% rose, neelkanth ,tulsi ,madar, bela tangari and

chinarose respectively

And retailers was sold also higher 90% marigold,

40%,10%,0%,60%,80%,30%,20% rose, neelkanth ,tulsi ,madar, bela tangari and

chinarose respectively.

Marketing cost and market efficiency was vary channel to channel and on

average marketing cost and marketing margin of 100 pieces of garland varied

channel to channel. In case of Marigold marketing cost and marketing margin was

300 &300 through channel-1and 130 & 270 through channel-2 respectively and

marketing efficiency of channel-2(2.50%) was much higher than channel-1(1.001%).

In case of Rose 300 &900 through channel-1and 130 & 670 through channel-2

respectively and marketing efficiency of channel-2(2.50%) was much higher than

channel-1(1.00%).In case of Neelkanth 300 &900 through channel-1and 130 & 670

through channel-2 respectively and marketing efficiency of channel-2(2.50%) was

much higher than channel-1(1.00%).In case of Tulsi 300 &600 through channel-1and

130 & 470 through channel-2 respectively and marketing efficiency of channel-

2(2.50%) was much higher than channel-1(1.0011%). In case of Madar 300 &200

through channel-1and 130 & 170 through channel-2 respectively and marketing

efficiency of channel-2(2.67%) was much higher than channel-1(1.002%).In case of

Bela 300 &300 through channel-1and 130 & 270 through channel-2 respectively and

marketing efficiency of channel-2(2.50%) was higher than channel-1(2.006%).In case

of Tangri 300 &500 through channel-1and 130 & 570 through channel-2 respectively

and marketing efficiency of channel-2(2.14%) was higher than channel-1(2.006%).In

case of Chinarose 300 &500 through channel-1and 130 & 1070 through channel-2

respectively and marketing efficiency of channel-2(1.66%) was higher than channel-

1(1.001%).

~ 41 ~

Marketing constraints faced by stakeholders varied to each others. The major

problems faced by the farmers had price instability and transportation reported 100%

respondents, wastage and risk reported by 76.66%, labour by 63.33%, storage by

56.66% and finance by 36.66% respondent respectively. The major problems faced by

the retailers had parking reported 100% respondents, price instability and labour

reported by 90% , wastage &risk and transportation by 70% respondent respectively.

The major problems faced by the consumers had price instability reported 100%

respondents, parking by 70% , lack of market information by 60% respondent

respectively

The perceptions of all stakeholders for market improvement also varied to

each others the perception of the farmers had differ to each others for question of

market improvement 30% farmers were strongly agree, 60% agree and 10% had no

idea. In case of sitting arrangement 20% respondents were agree and 80% disagree.

and related to parking facility 37%of the respondents were strongly agree and 63%

agree. In case of storage facility 60% of the respondents were strongly agree and

37%,3% were agree and no idea respectively. and for covered market place 33%

respondents were strongly agree ,60%,7% were agree and no idea respectively. The

perception of the Retailers had differ to each others for question of market

improvement 20% retailers were strongly agree, 70% agree and 10% had no idea. In

case of sitting arrangement 100% respondents were agree. and related to parking

facility 80%of the respondents were strongly agree and 20% agree. In case of storage

facility 80% of the respondents were agree and 20%diagree. and for covered market

place 100% respondents were agree 60%.The perception of the consumers had differ

to each other’s for question of market improvement 20% consumers were strongly

agree and 80% agree. In case of sitting arrangement 45%% respondents were agree

and 55% no idea and related to parking facility 55%of the respondents were strongly

agree and 45% agree. In case of storage facility 25% of the respondents were strongly

agree and 60%,15% were agree and no idea respectively. And for covered market

place 60% respondents were strongly agree and 40% were agree.

~ 42 ~

BIBLIOGRAPHY

Armitage, M. J. (1992). “Introduction to Floriculture”, Cosmos, In: Specialty cut

flowers, Varsity Press I Timber Press, Portland, Oregon. pp: 77-81

Ajjan, N. and Selvary, K.N. (1999). An Economic analysis of production and

marketing of cut flower in Nilgiri district, Tamilnadu Plant Horticulture

Technology, Vol.2, No.4, 2002, pp.68-70.

Anonymous (2014). National Horticulture Board, Govt. of India.

Anonymous (2014). Directorate of Horticulture, Govt. of India.

Bhattacharji and Chandra De (2003). “Advanced commercial floriculture Pointer

Publication, Jaipur 302 003 (Rajasthan) India.

Bose, T. K. (1999). “Floriculture and Landscaping”. Naya Prakash Pvt Limited. Calcutta-700 006, India.

Department of Agriculture and Co-operation, (1990). Ministry of Agriculture,

Government of India, New Delhi. DAC Publication.

Prasad, S. and Kumar, U. (2005). Commercial floriculture Agrobis Jaipur 302002

(India).

Sing, D.K. (2008). Development of Floriculture in Uttar Pradesh, Glimpses on Indian

Agriculture (Ed) Volume 2, S.M. Jharwal, Directorate of Economics and

Statistics Department of Agriculture and Co-op, Government of India,

Academic Foundation, New Delhi.

Sale and Ganvir (2006). Marketing of Cut Flowers and Potted Plants in India. Supriyakumar Bhattacharji (Ed) “Advances in ornamental Horticulture Printer Publishers Jaipur 302 003 (Rajasthan) India.

MARKETING OF FLOWERS: A CASE STUDY OF BANSPHATAK

FLOWER MARKET VARANASI

PROFILE OF RESPONDENT

1. Name ......................

2. Age .............. (Year)

3. Gender ...................... (Male-1,female-2))

4. Social category ....................... (1-General,2-OBC,3- SC/ST)

5. Education ............ (Illiterate-1, Literate-2, Upto high

school-3, high school-4,intermediate-5)

6. Income ................ (1-upto 10000, 2- 10000-20000,

3- 20000-30000, 4- more than 30000)

7. Types of flower selling .............................

Flowers Yes No Rs./100

Marigold

Rose

Neelkanth

Tulsi

Madar

Bela

Tangri

Chinarose

8. Market charge of flower per lot ...........................

9. Net price received by farmer ...........................

10. Expenses incurred by retailer ...........................

11. Margin of retailer ...........................

12. Consumer purchasing price ...........................

Marketing cost

Farmers

1. Garland making .......................

2. Loading and unloading charge .......................

3. Transportation charge .......................

4. Storage charge .......................

5. Spoilage and wastage .......................

6. Market charge .......................

7. Others .......................

~ ii ~

Retailers

1. Labour charge and weighing charge ...................

2. Transportation charge ......................

3. Storage charge ......................

4. Spoilage and wastage charge ......................

13. Constraints faced by the stakeholder

Farmers

1. Unavailability of labour ..................

2. Source of finance ..................

3. Price instability ...................

4. Wastage and risk ...................

5. Storage ...................

6. Transportation ....................

Retailer

1. Lack of labour .....................

2. Lack of transportation .....................

3. Wastage and risk ......................

4. Price instability ......................

5. Parking

Customers

1. Price instability .......................

2. Lack of market information ........................

3. Parking .......................

14. Perceptions of stakeholder for market improvement

Farmer

Particular Strongly

Agree

Agree No idea Disagree Strongly

disagree


Improve sitting

arrangement

Parking facility

Storage facility

Cover the market place

~ iii ~

Retailers

Particular Strongly

Agree


disagree


Improve sitting

arrangement

Parking facility

Storage facility


Customers

Particular Strongly

Agree


disagree


Improve sitting

arrangement

Parking facility

Storage facility


FOR MARKETINIING PLACE OWNER

1. Number of stakeholder in the market ........................

Registered ..................

Non registered .................

2. Total selling of all type of flowers

a- On season .........................

b- Off season .........................

3. Per day selling of flowers in the market ....................

a- On season .....................

b- Off season ....................

4. Highest selling of flower in the market .......................

5. Lowest selling of flower in the market ........................

Documents

Master of Agri -Business Management (MABM)€¦ · Dr. Rakesh Singh Deptt. of Agricultural Economics ... Dr. O.P. Mishra, Associate Professor, Department of Extension Education for