Disaster losses, import embargo to cause shortage of marigold in Tihar

Kathmandu / Oct 27: This year, Nepal is set to face a shortage of marigold flowers for celebration during the upcoming Tihar festival, which is also known as the festival of flowers, as a significant portion of domestic production was damaged by the disaster incidents induced by the incessant rainfall on September 27 and 28. Stakeholders say on top of the insufficient domestic production, the government-imposed import ban on flowers is likely to affect the availability and market price of the flower in the domestic market.

Three types of flowers–marigold, globe amaranth, and chrysanthemum–have high demand during Tihar each year. As per officials from the Floriculture Association Nepal (FAN), domestic production will be able to suffice the demand of around 600,000 garlands of globe amaranth and chrysanthemum this year. However, the garlands of the most sought after flower, marigold, will observe as much as 37.5 percent inadequacy in supply during Tihar.

According to the President of FAN, Dilip Bade, the domestic market will observe as inadequacy of around 1.5 million garlands of marigold this year. He added that the farmers in districts around the Kathmandu Valley alone suffered losses of more than Rs 150 million due to the recent disaster incidents.

“We have predicted a demand of around four million garlands of marigold for the Tihar festival this year,” Bade told Republica, “However, the domestic producers can only come up with 2.5 million garlands.”

An increase in demand alongside a decrease in supply is also set to hike the wholesale price of marigold garlands by around 32 percent during this year’s Tihar compared to the festival last year. As per president Bade, the wholesale price of marigold garlands was around Rs 60-65 during the last Tihar. “This year, we expect a wholesale price of around Rs 80-85 for marigold garland,” he said.

Last year 3.3 million garlands were sold during the Tihar festival. There is an additional demand of 700,000 marigold flower garlands this year compared to last year, said Bade.

Last year, the domestic production was able to suffice around 90 percent of the demand of marigold garland during the festival of flowers.

The FAN was expecting domestic production to meet 95 percent demand this year but the rainfall-induced disasters played the spoilsport.

With the domestic market unable to perform as predicted this year and the import embargo on flowers, the FAN expects an inflow of marigold garlands from India through illegal channels. According to FAN President Bade, this backchannel of imports will also create market pressure and hike the wholesale price as Indian sellers will demand more price for exporting the garlands through illegal means.

“If the illegally smuggled garlands are to enter the Nepali market, the wholesale price for such garlands might reach as high as Rs 200 per garland,” Bade informed Republica.

Meanwhile, as the domestic production of chrysanthemum and globe amaranth outweighs the domestic demand, Nepali flower producers are set to export garlands of the two flowers internationally to cater to the Nepali diaspora abroad. As per president Bade, nepali floriculturists are going to export garlands of the two flowers to countries such as the USA, the UK, Russia and countries of the European Union with significant Nepali diaspora.