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Realty-struck floriculture hubs like Bangalore, Pune and Hyderabad withering away


By Dr arvind, Section Real Estate
Posted on Wed Sep 03, 2008 at 11:12:08 PM EST

Floriculture hubs like Bangalore, Pune and Hyderabad are on the wane. Faced with shortage of labour and lured by booming real-estate prices, floriculturists have opted to sell their land to developers and move away to newer and cheaper locales.

The result: Sangli, Bhor and Satana (in Maharashtra) and Kodiakanal, Ooty (in South India), have emerged as the budding addresses of flower growers in the country.

In the last three years, the hot real-estate sector in Bangalore, Pune and Hyderabad has triggered withering in floriculture business in these cities. Flower-growers have preferred to take advantage of the land prices which have shot up 10-fold in the last three years.

The open tracts of land in the city which housed these floriculture projects have fallen prey to developers scouting for open-spaces in and around the city. Moreover, being a labour-intensive industry, the shortage of labour within the city also made it difficult for the units to hold fort.

"Due to the high real-estate prices in Bangalore and Pune, floriculturists have preferred to sell them to developers which have fetched them a higher price", said S Jafar Naqvi, president of Indian Flowers & Ornamental Plants Welfare Association (iFlora). "Of the 26-odd export units in Pune, only 10 exist today.

Similarly, in Bangalore only 10-12 units are functioning. The rest have either shut down or moved to newer locales like Kodiakanal, Ooty, Nigliris and Coorg areas where land is cheaper and is available in plenty", he said.

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"However, as new areas have developed, the floriculture sector has not been affected due to the closure of units", Naqvi added.

According to sources, the horticulturists who used to get subsidy from the government to set up these units sold off the land after projecting them as "unviable". Most of the units which closed down were large export oriented units of about 3-4 hectares, sources said.

Triggered by the real-estate boom in the last three years, the property prices in and around Pune and Talegaon have increased from Rs 2.5 lakh to Rs 25 lakh per acre which has prompted flower-growers to sell off the prime land and move to cheaper locales. "The property prices have swelled 10-fold in the last three years, said Praveen Sharma, the chief consultant of Flora Consult, a Pune-based consultant for floriculture projects.

"As a result, places in Bhor taluka, Satana, Sangli have become new destinations for floriculturists", he said adding that Agricultural and Processed Food Products Export Development Authority ( APEDA) was in the process of reviving some of the "unviable" units in Pune.

"At the Talegaon floriculture park, floriculturists are also finding it difficult to find enough labourers for their labour-intensive units. The workforce which used to tend flowers now opt to work for higher wages in the manufacturing units of L&T, General Motors, Posco and others which have come up in the area near the park", Sharma remarked.

"Even in Hyderabad, the floriculturists are selling land to realtors", said M M Hussain, vice-chairman of Hyderabad Nurseries Consortium and former general secretary of Indian Nurserymen Association.

"Most of the units which were set up for exports have closed down within a space of three years. At present, only one is operating. Hyderabad which was second in terms of flower production in the country has fallen drastically", said Mr Hussain. "The state government has also been of little help. No new units have come up in Hyderabad during the last few years", he remarked.

Source: Economic Times, 4 Sep, 2008

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