KIA Flower Exports Fall 20% as Air Freight Costs Double, APEDA Support Shrinks

Approximately 95% of Karnataka’s flower exports are routed through KIA, and while the state remains a leading flower exporter, rising costs now threaten its position. Exports, which saw a sharp decline during the Covid-19 pandemic, have yet to recover to pre-pandemic levels. Growers attribute this to soaring freight charges and reduced support from the Agricultural and Processed Food Products Export Development Authority (APEDA). “In the past 2-3 years, air freight charges have nearly doubled, with no regulation in place to control them. Many of us have stopped exporting flowers because of this,” said Aravind T M, president of the South India Flower Growers’ Association. He also highlighted the additional burden of the 18% GST on air freight charges.

With exports becoming less viable, many farmers have turned to local markets, but that has not proven profitable either. A farmer from Doddaballapur, Devaiah, who has been growing roses for 30 years, noted that selling locally has resulted in losses. “The quality of the soil has degraded over time, reducing our yield. While exports once provided good returns, the local market offers little, making it hard to sustain,” he said.

Another major issue is the discontinuation of APEDA’s transport assistance subsidy for flower exporters. Aravind pointed out that this has further worsened the situation for farmers.

APEDA officials acknowledged the drop in exports and agreed that rising air freight charges are a concern. They are in talks with the Ministry of Civil Aviation to address the issue. Regarding the transport assistance scheme, officials explained that it was the central government’s decision to withdraw it but encouraged farmers to use other available schemes. “The Transport and Marketing Support Scheme offers similar benefits. I urge farmers to take advantage of it,” said a senior APEDA official.