The growing middle class, equipped with disposable income, along with the rise of corporate businesses and widespread use of flowers in various programs - have expanded the flowers and cut foliage business in Bangladesh.
However, cultural changes among the young generation in celebrating western festivals such Valentine’s Day, Friendship Day, Mother’s Day and iconic cultural events like Pohela Boishakh , Pohela Falgun have expedited the growth of flower business in the country.
In addition, the celebration of National Days such as Ekushey February, Independence Day and Victory Day has reached to rural level more than ever before, which also helped boost the business.
According to a recent Dhaka Chamber of Commerce and Industry (DCCI) statistics, the local market of flower and cut foliage has reached at Tk1,200 crore per annum and is witnessing a 10% yearly growth.
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“Flowers are widely used in political, social and corporate events. This is because of economic growth, which brought changes in living standards of people as they have disposable income,” Anwar Faruque, a consultant to Bangladesh Flower Society told the Dhaka Tribune.
Now people from all walks of life celebrate national days across the country, while young generation are observing several program where they all use flowers to greet friends and family members, said Faruque.
Prospects of flower industry
In meeting demands of flowers for big occasions like Ekushey February, Bangladesh has to import, as the demand in the local market is growing very fast.
On the other hand, there is huge opportunity in the export market as the production cost in Bangladesh is lower compared to other flower-exporting countries.
According to Export Promotion Bureau (EPB) data, in 2016-17 fiscal year, Bangladesh exported cut flowers, leaves, trees, plants, bulbs, roots of $86,000, up 10.26%, which was $78,000 in the previous year.
“Bangladesh has a competitive advantage due to its favourable climate and topography as well as low labour cost and relatively low capital investment which is helping the sector to thrive.” said Abdur Rahim, president of Bangladesh Flower Society (BFS).
Using the favourable environment and comparatively better opportunity, we can grab the markets in home and abroad, said Rahim.
Women carry roses to the market |Syed Zakir Hossain/ Dhaka Tribune
“If Bangladesh goes for vast cultivation of flowers commercially, it will be able to earn huge amount of foreign currency as there is demand of Bangladeshi products in the export destinations,” Anwar Faruque, also a former secretary of Ministry of Agriculture told the Dhaka Tribune.
As of now, flowers are being cultivated in nearly 10,000 hectares of land in 23 districts of the country.
Flower and foliage farming has expanded into Jashore, Jhenidah, Magura, Rangpur, Bogra, Dhaka, Gazipur and Manikganj districts.
Currently, more than 25,000 families are engaged in cultivating flowers and 200,000 people are directly and indirectly dependent on this sector.
Due to rise of flower uses, the number of flower shops in the capital also has seen a rise and as of now there are about 500 shops in the capital. Shahbagh is the largest flower market in the capital, which remains very busy every time of the day.
Challenges faced by sector
In line with the economic growth as any other industry, the flower sector is growing very fast, creating an opportunity for huge export earnings. But there is no policy and financial support for the sector, which is hindering the sector’s growth.
As an emerging sector, floral cultivators are facing problems in getting finance from financial institutions.
Additionally, the sector needs training on farming flowers which are high in monetary value, said Rahim.
To this end, the sector needs low cost credit in making investment to introduce modern technology, training, in constructing cold storage and to ensure supply of quality and new varieties of seeds, he added.
To tap into this opportunity, Bangladesh needs to pay special attention to address the problems and government should come up with relevant policy support.
“Flower industry is a very potential industry but there is no specific policy for the emerging sector. Its infrastructural development needs to be established. In reaping the opportunities of the sector, Bangladesh has to come up with a comprehensive policy to create space for the sector to grow,” Dhaka Chamber of Commerce and Industry (DCCI) President Abul Kasem Khan said.
On the other hand, the government and people related to the sector have to move for introducing modern technologies and ensuring supply of newer seeds, building warehouses and cold storages.
Concurrently, the policy makers should work on development of infrastructure to ensure a smoother supply chain, said Kasem.
He suggested low interest loan for the farmers and entrepreneurs related with this industry.
Global Flower Market Size
Global consumption of cut flowers is estimated at a staggering $40-50 billion per year with Europe and North America being the leading markets. Globally, there are around 145 countries involved in the cultivation of ornamental crops.
International Trade Centre (ITC) in its study showed global flower exports over the last few years have grown by more than 10% annually. Based on this trend, global export of flowers is expected to reach $45 billion in 2018.
World Floriculture Map showed, from only cut flower segment, export value reached over $10 billion in 2015. Europe is the largest consumer of floriculture followed by North America and China.
As per ITC, total flower market size in China was $19.52 billion and flower export reached $620 million in 2015.
Indian floriculture market reached $1.25 billion (Rs.9000 crore) in 2017-18 fiscal year, while their flower export reached $78.73 million (Rs.507.31 crore).
