Orchid and anthurium industry in Kerala

Abstract

Orchid and anthurium are identified as the most important flowers with commercial potential suitable for the state. Present study was aimed to investigate the economics of commercial production and marketing of orchid and anthurium in Kerala and to identify the constraints and analyze future prospects of these two crops in the State. The study was conducted with a sample of 80 growers for each crop. Percentage analysis and capital productivity analysis were used to analyze the data. Orchid and anthurium growing units have been studied across three scales of operation, viz., small (upto 500 plants: G-I), medium (500 to 1000 plants: G-II) and large (above 1000 plants: G-I1I) for a standard of 100 plants in each categories. 1. Orchid Total cost of cultivation for five years was estimated to be Rs. 17,471 of which about 57.28 per cent was the establishment cost. Per unit cost of cultivation is found increasing towards smaller scale of operation. The total return realized over crop life is found to be about Rs. 36,088. Higher returns were realized from larger scale of operation - varying from Rs. 33,240 to Rs. 40,060. The estimated project worth parameters were well above acceptance level in all the groups. On an average, pay back period was estimated as three years, net present value as Rs. 9,345, benefit cost ratio as 1.61 and the internal rate of return as 39 per cent. 2. Anthurium. Per unit cost of cultivation of anthurium was little higher than that of orchid and showed similar cost structure and increasing pattern towards smaller groups. Total cost of cultivation for five years was estimated to be Rs. 19,153, about 57.28 per cent of which was the establishment cost. The total return realized over crop life was found to be Rs. 46,236. It varied from Rs. 43,474 to Rs. 53,037 in different scales of operation.

The pay back period of anthurium enterprise was also estimated to be between two and three years, net present worth as Rs. 13,767, benefit . cost ratio as 1.82 and internal rate of return as 43 per cent. Capital productivity analysis of orchid and anthurium showed both the enterprises to be profitable at all the levels (scale of operation), however, larger units were seen comparatively more efficient and profitable than smaller ones. In both orchid and anthurium, on an average, female labour force contributed about two-third of the tota1labour use. Proportions of female labour as well as family labour were found higher towards smaller scale of operation. Sensitivity analysis revealed that orchid and anthurium farming are capable of remaining profitable even if the costs increase by 20 per cent. A decline of 20 per cent in benefits turned the smallest sized group (G-I) of orchid uneconomic, though all other groups in both flower crops performed well. A decline in benefit is observed to have more adverse influence on project worthiness of both the crops than increase in costs by same percentage. Marketing of both the flowers was almost similar as they were usually sold together. Out of four marketing channels identified, the most important one was "Producer ---+ Local florist ---+ Consumers", through which bulk of the produce moved. The most significant problem faced by orchid and anthurium growers, especially smaller sized units, was irregular market for their products. High level of intra-farm varietal diversity resulted in non- uniform flowers which are in inadequate quantity. Effective production planning and marketing management are the key sectors of development.