Medicinal Plants

Market Survey
BY: G.P. GANDHI
EXPORTS OF MEDICINAL PLANTS

India has the potential to increase its medicinal plant exports to a level of Rs 1750 crore by
2006-07 and to cross Rs 2500 crore by 2009-10.
ndia has the oldest, richest and

most diverse cultural traditions in the use of medicinal
plants. The Indian System of
Medicine has reportedly identified 1500 medicinal plants, of which
500 are mainly used in the preparation of medicines.

According to a recent Exim study,
there are 880 medicinal plant species involved in all-India trade. Of
this, 48 species are exported and
about 42 spices are imported. Another survey conducted by the Ministry of Environment and Forests,
government of India, reveals that
there are over 8000 species of medicinal plants grown in the country.
Pyrethrum flower
Basil and rosemary
Patchouli herb
Sandalwood chips
Galangal herb
Senna
Psyllium (Isabgol)
Belladonna
Ashwagandha
Indian medicinal plants
Market Survey
Table I
Indias Exports of Major Medicinal Plants During 2003-04 and 2004-05

(Rs crore)
Item
2003-04
2004-05
Per cent growth
Psyllium husk (Isobgul husk)

Senna leaves and pods
Sandalwood chips and dust
Other parts of plants used in perfumery, pharmaceutical, etc, fresh/dried
Other leaves, powder, flours and fresh/dried/cut crushed/powered
Jajoba seed
Psyllium seed (Isobgul)
Other seeds, fresh/dried cut, crushed, powdered used in perfumery, pharmacy, etc
Other bark, husk and rind fresh/dried/cut, crushed/powered
Pyrethrum
Other roots and rhizomes fresh/dried/cut, crushed/powered
Basil, hyasop, rosemary sage, svory
Galangal rhizomes and roots
Garcenia
Gymnema powder
Total (all India)
58.60
36.19
19.20
13.83
15.55
89.07
24.61
4.60
6.12
4.11
8.91
0.76
0.39
6.27
1.70
302.11
154.00
27.39
14.22
12.02
9.43
8.53
8.01
6.21
4.86
2.96
2.65
2.24
1.81
1.28
0.85
263.08
162.80
() 24.32
() 25.94
() 13.09
() 39.36
() 90.42
() 67.45
35.00
() 20.59
() 27.98
194.74
364.10
() 79.59
() 50.00
() 12.92
Source: Compiled from the data of DGCI&S, Monthly Statistics of Indias Foreign Trade: Exports & Re-Exports, March 2004 and 2005 issues, Kolkata
About 70 per cent of these plants, it

says, are found in the tropical forests, spread across the Western and
Eastern Ghats.
Institutional support
The government of India has set
up a national-level body, namely,
National Medicinal Plants Board
(NMPB), under the aegis of Ministry of Health & Family Welfare, government of India, with a view to
ensuring availability of medicinal
plants and coordinating all matters
relating to their development and
sustainable use. The NMPB has estimated Indias exports of herbal
material and medicinal plants at
Rs 446 crore, which is projected
to reach further to Rs 3000 crore
by 2006-07. China and India, according to the NMPB, are the major
world producers of medicinal
plants.
Besides, Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council, popularly known as
CHEMEXCIL under the Ministry of
Commerce and Industry, government of India, since its inception in

1963 has been making all concerted
efforts to promote exports of medicinal plants.
Recent developments
Study on medicinal plants.
The NMPB under the aegis of Department of Ayurveda, Yoga &
Naturopathy, Unani, Siddha &
Homoeopathy (AYUSH) will conduct
a study to assess the demand and
supply of medicinal plants for the
Indian and international markets.
The step has been taken at the
instance of Health Ministrys initiative to give a thrust to the
Indian medicine system on a global
scale.
The study will examine the domestic demand, supply, exports and
imports of medicinal plants, their use
in different sections like medicine,
food supplements, cosmetics, etc. It
will also study the price trends and
make future demand and supply projections to enable the NMPB to pre-
pare a comprehensive action for conservation, cultivation, processing,

value-addition and marketing of medicinal plants.
World Bank study report. The
World Bank in its latest report on
the Potential of Indias Forests to
Generate Income has praised efforts
of Madhya Pradesh and Assam in
marketing medicinal plants. However, the report states that the
countrys natural resources are not
being fully exploited.
Indias share in the global export
of medicinal plants, it says, is just
0.52 per cent notwithstanding its
having 15,000 species of such plants.
The market structure for medicinal
plants in most states of the country
is weak and focuses largely on local
trading.
The report further elaborates
that Madhya Pradesh and Assam
have made substantial progress in
developing a better market system
for medicinal plants. In Madhya
Pradesh, the State Minor Forest Produce (Trading and Development) Cooperative Federation assists primary
Market Survey
collection societies in selling nonnationalised and non-timber products by offering fixed purchasing
rates for a small selection of plants
with market potential, such as mahul
patta, mahua seeds and achar.
The Federation is financing the
development of specific areas for nontimber production in ten districts,
facilitating commercial financing for
farmers to cultivate non-timber products, establishing local market outlets and branding, promoting local
value addition and disseminating
market-related information to farmers.
Similarly, Assam had success
with patchouli, a perennial herbaceous plant of Laiaceae family. The
North Eastern Development Finance
Corporation (NEDFI) is financing
start-up capital for small farmers to
cultivate patchouli and help growers
market their produce.
EXIM Bank study. Exim Banks
latest study titled Export Potential
of Indian Medicinal Plants and Products estimates that the global imports of medicinal plants in the year
2001 were of the order of $1 billion.
According to the report, the major
importers of medicinal plants are the
European Union, Russia and USA.
The major exporters, on the other
hand, comprise China, India, Japan
and Russia.
India is the largest exporter, next
only to China, accounting for about
13 per cent of the global exports.
USA is the principal market for Indian medicinal plants, accounting for
50 per cent of exports.
India is the largest exporter,

next only to China, accounting
for about 13 per cent of the
global exports. USA is the
principal market for Indian
medicinal plants, accounting
for 50 per cent of exports.
Table II
Indias Exports of Medicinal Plants to Major Markets

During 2002-03 to 2004-05
(Rs crore)
Country
2002-03
2003-04
2004-05
Per cent growth
USA
Japan
Germany
France
UK
China
Hong Kong
Pakistan
UAE
Taiwan
Total (all India)
135.63
30.06
13.37
6.76
17.00
6.73
8.24
6.44
9.88
8.46
334.17
111.92
18.57
13.26
8.13
11.45
7.04
10.51
7.29
5.72
8.43
302.11
98.51
11.86
11.55
6.76
11.12
8.66
7.01
9.20
10.47
5.77
263.08
() 11.98
() 36.13
() 12.90
() 16.85
() 2.88
23.01
() 33.30
26.20
83.04
() 31.55
() 12.92
Source: Compiled from the data of DGCI&S, Monthly Statistics of Indias Foreign Trade: Exports & Re-Exports,
March 2003 and 2004 issues, Kolkata
The study estimates the value of

traded medicinal plants in the domestic market at Rs 384 crore in the
year 2001. It outlines three pronged
strategies for the development of
medicinal plants in the country.
These include conservation, resource
management and evolving of export
promotion strategies for achieving
breakthrough in exports of knowledge-based products. If such strategies are adopted, the sector, it says,
has the potential to increase its exports to a level of Rs 1750 crore by
2006-07 and to cross Rs 2500 crore
by 2009-10.
India is a virtual trove of plant
species. Despite substantial pace of
growth in the medicinal plants,
Indias share in the world market of
medicinal plants is merely 2.5 per
cent. The export market is growing
faster than the domestic market.
However, exports are being made in
the form of plants or their parts, and
not as value-added products.
The study further points out that
Indian exporters face major constraints while exporting medicinal
plants. These inter alia include competition from synthetic substitutes,
non-compliance with rules and regulations of the importing countries,
poor quality control, inadequate information on market trends, use of

obsolete technology and lack of established methods for cultivation of
a large number of plants.
India has negligible patents on
plant-based formulations, extracts
and products. For further information about the report, contact its
website eximbankindia.com.
New Foreign Trade Policy
(FTP). Under the new FTP (200409) announced by the Ministry of
Commerce & Industry, government
of India, a host of incentives have
been given to promote exports of
herbal and medicinal plants. These
inter alia include duty-free import
of capital goods under the Export
Promotion Capital Goods (EPCG)
scheme, duty credit scrip equivalent
to 5 per cent of the free-on-board
(f.o.b.) value of exports, and launch
of Vishesh Krishi Upaj Yojana, which
is aimed at promoting agri-exports,
viz, flowers, vegetables, fruits, minor forest produce, etc.
APEDA thrust on export of
aromatic medicinal plants. The
Agriculture and Processed Foods
Export Development Authority
(APEDA) plans to give a renewed
thrust to the export of aromatic and
Market Survey
Table III
Item-wise Indias Exports of Medicinal Plants to Major Markets During 2003-04 and 2004-05
(Rs crore)
Item/country
2003-04

USA
27.43
Spain
6.18
UK
3.40
Hong Kong
0.88
Australia
1.20
Bangladesh
3.94
Indonesia
0.08
Japan
2.27
Germany
2.66
Pakistan
1.23
France
0.59
Mexico
0.58
China
0.43
Denmark
0.50
Korea Rep.
1.16
Canada
0.67
Total (incl. others)
58.60
China
4.52
Germany
4.77
Japan
3.63
USA
2.89
Poland
1.41
Spain
1.72
36.19
UAE
2.17
Saudi Arabia
5.08
Japan
1.95
Singapore
1.04
Hong Kong
4.53
19.20
2004-05
Per cent growth
88.07
9.08
7.37
4.35
4.25
4.09
3.94
3.78
3.28
3.25
3.14
2.21
1.99
1.61
1.50
1.17
154.00
221.07
46.93
116.76
394.32
254.17
3.81
4,825.00
66.52
23.31
164.23
432.20
281.03
362.79
222.00
29.31
74.63
162.80
6.05
3.80
2.66
2.29
1.38
1.24
27.39
33.85
() 20.34
() 26.72
20.76
() 2.13
() 27.91
() 24.32
5.44
2.48
2.35
2.03
1.89
14.22
150.69
() 51.18
20.51
95.19
() 58.28
() 25.94
Item/country
2003-04
2004-05
Per cent growth
Other parts of plants used in perfumery, pharmaceutical, etc

fresh/dried
Pakistan
1.27
4.60
262.20
USA
3.25
1.54
() 52.62
13.83
12.02
() 13.09
USA
4.14
1.16
() 71.98
15.55
9.43
() 39.36
Jajoba seed
Mexico
8.49
3.77
() 55.59
France
2.01
1.13
() 43.78
New Zealand
0.10
1.08
980.00
89.07
8.53
() 90.42
USA
11.46
2.81
() 75.48
UK
0.85
0.87
2.35
Spain
2.70
0.79
() 70.74
Germany
1.50
0.73
() 51.33
Bangladesh
0.71
0.56
() 21.13
24.61
8.01
() 67.45
Other seeds, fresh/dried cut, crushed, powdered used in perfumery,
pharmacy, etc
Taiwan
0.65
2.23
243.08
UAE
0.31
0.44
41.94
Japan
0.15
0.43
186.67
4.60
6.21
35.00
Spain
4.29
2.10
() 51.05
Taiwan
0.19
1.07
463.16
USA
0.13
0.56
330.77
6.12
4.86
() 20.59
Total (all India)
302.11
263.08
() 12.92
medicinal plants. It is also examining the possibility of promoting agriexport zones specialising in cultivation of aromatic and medicinal
plants.
Poppy plant gets US Patent.
The Central Institute of Medicinal
and Aromatic Plants (CIMAP),
Lucknow, has recently got a US
patent for developing a disease-resistant and high-straw and seed-
yielding variety of poppy plant. India is one of the largest producers of

opium for the worlds pharmaceutical industry.
Indias exports
Itemwise. As may be seen from
Table I, Indias exports of medicinal
plants in 2004-05 declined by 12.92
per cent over the previous year when
the same nosedived to Rs 263.08

crore as against Rs 302.11 crore in
the previous year. Psyllium husk
(isobgul husk) emerged as the largest item of exports registering a
record growth of 162.80 per cent
when the same reached a level of Rs
154 crore as against Rs 58.60 crore.
The export of jajoba seed, which
happened to be the largest item of
export in the year 2003-04, declined
Market Survey
Table IV
Country-wise Indias Exports of Major Medicinal Plants During 2003-04 and 2004-05
Country/item
USA
Other parts of plants used in perfumery, pharmaceutical etc fresh/dried
Garcenia
Japan
Other parts of plants used in perfumery, pharmaceutical etc fresh/dried
Germany
Basil, hyasop, rosemary sage, svory
Other parts of plants used in perfumery, pharmaceutical etc, fresh/dried
UK
Jajoba seed
Cascara,sagrada bark
UAE
Galangal rhizomes and roots
Other parts of plants used in perfumery, pharmaceutical, etc, fresh/dried
Total (all India)
2003-04
2004-05
(Rs crore)
Per cent growth
27.43
11.46
2.89
3.25
4.14
0.13
5.25
111.92
88.07
2.81
2.29
1.55
1.16
0.56
0.47
98.51
221.07
() 75.48
() 20.76
() 52.31
() 71.98
330.77
() 91.05
() 11.98
2.27
3.63
1.95
0.90
0.15
1.02
18.57
3.78
2.66
2.35
0.69
0.43
0.35
11.86
66.52
() 26.72
20.52
() 23.33
186.67
() 65.69
() 36.13
4.77
2.66
0.05
0.38
1.50
0.07
13.26
3.80
3.28
1.95
0.75
0.73
0.35
11.55
() 20.34
23.31
3,800.00
97.37
() 51.33
400.00
() 12.90
3.41
0.89
0.85
2.50
0.22
11.45
7.37
0.92
0.87
0.54
0.39
0.30
11.12
116.13
3.37
2.35
() 78.40
36.36
() 2.88
2.17
0.27
0.63
0.84
0.41
0.31
5.72
5.44
1.53
0.75
0.54
0.50
0.44
10.47
150.69
466.67
19.05
() 35.71
21.95
41.94
83.04
302.11
263.08
() 12.92
drastically in 2004-05 by reaching a

low level of Rs 8.53 crore as against
Rs 89.07 crore in 2003-04, registering thereby a steep decline by 90.42
per cent. The other items showing a
steep decline during the period comprised garcenia (79.59 per cent), psyllium seed (67.45 per cent), gymnema
powder (50 per cent), other fresh/
dried cut, crushed and powdered
leaves (39.36 per cent), pyrethrum

(27.98 per cent), sandalwood chips
and dust (25.94 per cent), senna
leaves and pods (24.32 per cent), and
other fresh/dried cut, crushed and
Market Survey
powered bark, husk & rind (20.59
per cent).
On the other hand, the plants
registering a phenomenal growth
comprised galangal rhizomes and
roots (364.10 per cent) and basil,
hyasop, rosemary sage, svory (194.74
per cent).
Countrywise. As may be seen
from Table II, Indias exports have
continuously been showing a declining trendfrom Rs 334.17 crore in
2002-03 to Rs 302.11 crore in 200304 and Rs 263.08 crore in 2004-05.
USA continues to be the largest market for Indian medicinal plants. However, exports to this market have
shown the same trenddeclining to
Rs 98.51 crore in 2004-05 as against
Rs 111.92 crore in 2003-04 and Rs
135.63 crore in 2002-03. The other
markets showing a declining trend
in 2004-05 over the previous year
included Japan (36.13 per cent),
Hong Kong (33.30 per cent), Taiwan

(31.55 per cent) and France (16.85
per cent).
On the other hand, the markets
showing a significant growth included UAE (83.04 per cent) and Pakistan (26.20 per cent).
Itemwise, Indias exports of medicinal plants to major markets in
2003-04 and 2004-05 are shown in
Table III, while country-wise exports
of major medicinal plants are shown
in Table IV.
Export prospects
According to various studies
brought out both by the central and
the state governments, medicinal
plants offer tremendous export potential. For tapping the full potential, there is the need to chalk out a
pragmatic export strategy. Some of
the points that merit attention of
the policy makers in this respect inter alia include:

1. Allocate funds for conducting
R&D not only to improve varieties of
medicinal plants and enhance their
availability but also to establish their
efficacy in various clinical conditions.
2. Set up export promotion zones
exclusively for medicinal plants and
herbal products in potential states
like Gujarat, Rajasthan, Haryana,
Tamil Nadu and Andhra Pradesh,
which have gained significantly in
cultivation and processing of medicinal plants and herbs.
3. The active ingredients in the
traditional medicinal plants need to
be identified and there has to be a
pharmacopia established.
4. Intensify R&D activities for
finding appropriate technologies for
processing of medicinal plants.

The author is a research officer at Indian
Institute of Foreign Trade, New Delhi

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Market Survey

BY: G.P. GANDHI

EXPORTS OF MEDICINAL PLANTS

ndia has the oldest, richest and

500 are mainly used in the preparation of medicines.

Basil and rosemary

Indian medicinal plants

Indias Exports of Major Medicinal Plants During 2003-04 and 2004-05

Per cent growth

Psyllium husk (Isobgul husk)

About 70 per cent of these plants, it

Commerce and Industry, government of India, since its inception in

pare a comprehensive action for conservation, cultivation, processing,

India is the largest exporter,

Indias Exports of Medicinal Plants to Major Markets

Per cent growth

The study estimates the value of

poor quality control, inadequate information on market trends, use of

Psyllium husk (Isobgul husk)

Per cent growth

Per cent growth

Other parts of plants used in perfumery, pharmaceutical, etc

yielding variety of poppy plant. India is one of the largest producers of

the same nosedived to Rs 263.08

drastically in 2004-05 by reaching a

leaves (39.36 per cent), pyrethrum

Hong Kong (33.30 per cent), Taiwan

the policy makers in this respect inter alia include:

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