Bengaluru: The quantity of flowers being exported through Bengaluru’s Kempegowda International Airport (KIA) has come down by at least 20% between 2017-18 and 2023-24, according to data accessed by DH, a stark reversal of fortunes for growers in Bengaluru and surrounding areas.
Close to 95% of flower exports from Karnataka happen through the KIA. While Karnataka is one of the top states in flower export, increasing costs may threaten its position.
Exports, which fell during Covid years, have not increased to pre-pandemic levels. The main culprits, according to growers, are rising freight charge and reduced support from the Agricultural and Processed Food Products Export Development Authority (APEDA).
“In the last 2-3 years, air freight charges have nearly doubled and there has not been any regulation to control it. As a result, many of us have stopped exporting flowers,” said Aravind T M, president, South India Flower Growers’ Association.
The 18% GST being imposed on air freight charges was only adding to the burden, he added.
With exports losing their appeal, farmers have been forced to turn to local markets. But that, too, is not working out.
A farmer from Doddaballapur said selling the yield in local markets has only caused losses.
“Over the years, the soil quality has also come down, resulting in a poor yield. At least exports used to fetch us good returns and we could keep going. Now, returns from local markets are not great and this has made it difficult for us to sustain,” said Devaiah, who has been growing roses at Doddaballapur since the last 30 years.
Then there is the APEDA factor.
Aravind said that APEDA had withdrawn the transport assistance subsidy that was being given to farmers exporting flowers. This, he said, had made the situation worse.
Officials from APEDA acknowledged the decline in exports and said that air freight charges were a concern. Officials said they were trying to discuss the matter with the Ministry of Civil Aviation.
On the transport assistance scheme, officials said the Centre had withdrawn it and urged the farmers to use other schemes to avail similar benefits.
“It was the central government’s decision to withdraw the scheme. However, there is a transport and marketing support scheme that has been introduced which provides similar benefits. I urge farmers to make use of it,” a senior official from APEDA said.