Market value of Medicinal Plants

The World Health Organization estimates that the trade in herbal medicines will reach $ 5 trillion (Rs. 245 trillion) by 2050. The government of India has identified medicinal and aromatic plants as one of the sectors that can make India a global leader in the 21st century. About 1178 species of medicinal plants are estimated to be in trade, of which 242 species have annual consumption levels above 100 metric tons/year, registering a nine-fold increase during the last decade. Aside from pharmaceuticals, India owns 60% of the 13,500-tonne worldwide spice oleoresins industry. Even though we have exported many herbals, India had been importing 10%-15 % of the raw materials such as asafoetida, manjishta, and gulgul from countries such as Afghanistan.

Our state can provide a wide range of consumer products with national and international demand owing to our treasure trove of 2000 medicinal and aromatic plants.. In addition to the national and international market, it is estimated that there are about 800 registered Ayurvedic medicine manufacturing units in the state which use herbs worth 75-80 core as raw material. The nutraceutical, cosmetic and oleoresin industries in Kerala also buy herbal raw materials worth over Rs 75 crore. The trade demand for these crops is increasing with the increased interest in western consumers towards eastern medicinal systems.

Importance of Herbal farming

The genetic diversity of medicinal plants in the world is getting endangered at an alarming rate because of ruinous harvesting practices and over-harvesting for the production of medicines, with little or no regard to the future. Presently, about 90% of medicinal plant species are of natural origin (in that 69% of the material is collected through destructive harvesting), with the remaining 10% produced by farmers. In situ conservation of these resources alone cannot meet the ever-increasing demand of pharmaceutical and other herbal-based industries. If timely steps are not taken for their conservation, cultivation, and mass propagation, they may be lost from the natural vegetation forever. Consequently, cultivation of these plants is urgently needed to ensure their availability both to industry and individuals associated with the traditional system of medicine.

Role of SMPB

The global clamour for more herbal ingredients creates possibilities for the local cultivation of medicinal plants. Here is a significant gap between supply and demand for medicinal plants. There is a huge scope for export of raw materials. But quality, traceability, and organic certification of materials are very important.

Organic farming: Farmers have to be trained in all aspects of organic farming including obtaining certification from associations that do the monitoring, starting from cultivation to final harvesting. As chemicals cannot be used as fertilizers and pest control agents, the cultivation is labour intensive requiring labour for weeding and other farming activities.

The cultivation of medicinal plants is almost unorganized. Proper supply chain management and the formation of farmers’ organizations will improve production. The State Medicinal Plants Board (SMPB) is exploring many ways to augment their cultivation. Read mission vision