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Uttar Pradesh Announces Regulation of Flower Business in Ayodhya Amid Trader Concerns

by Jennifer

Lucknow: The Uttar Pradesh government has taken steps to regulate the burgeoning wholesale flower trade in Ayodhya, anticipating further growth in the coming years. This decision, aimed at organizing the sector under agricultural produce marketing laws, has sparked mixed reactions among local traders.

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According to industry insiders, the wholesale flower business has seen a notable upswing, particularly following the consecration of Ram Lala’s idol and the inauguration of the Ram temple on January 22, 2023. Pintoo Manjhi, a prominent wholesale trader, reported a growth rate of 20 to 25 percent in the sector since these landmark events. “Approximately 20 quintals of marigold flowers are now consumed daily in Ayodhya,” Mr. Manjhi noted.

In an official notification dated July 8, 2024, Devesh Chaturvedi, Additional Chief Secretary of Agriculture, invoked Section 7(2)(b) of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, thereby stipulating that all wholesale transactions of flowers within the Ayodhya Market Area must now occur exclusively at designated locations within the Principal Market of Ayodhya.

“This regulatory move aims to provide dedicated shop spaces for wholesale traders and to enhance market facilities,” explained a government official familiar with the matter. However, some traders expressed apprehension regarding the new regulations. “The current market value of 20 quintals of marigold flowers amounts to approximately ₹1 lakh. Given that these flowers are not locally grown but sourced from cities like Lucknow, Prayagraj, Varanasi, or Gorakhpur, there are concerns about the practical implications of mandating trade solely within the mandi premises,” voiced another trader.

Under existing mandates, any sale exceeding 3 kg of loose or cut flowers qualifies as wholesale trade, as per a directive issued on December 12, 2019, by the Rajya Krishi Utpadan Mandi Parishad. Previously, wholesale flower transactions in Ayodhya were conducted outside the local mandi, attracting a 1 percent Mandi fee along with a 0.5 percent cess on traders. The new regulations are expected to consolidate these operations within mandi confines, potentially increasing state revenue.

“We have urged the state government to consider waiving these fees, given the perishable nature of flowers. Similar exemptions have been granted for 46 other items, including fruits and vegetables,” emphasized Mohammad Ayaz, President of the Phool Vyapar Kalyan Samiti.

As the state government moves forward with its agenda to integrate the flower trade into agricultural marketing laws, stakeholders remain watchful of the implications for this vital economic sector in Ayodhya.

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