YES BANK Limited
Medicinal & Aromatic Plants
Market in India
Food and Agribusiness Strategic Advisory
& Research Group
(FASAR)
Agenda
Medicinal & Aromatic Plants (MAPs)
Global Market
Domestic Market
Government Support
Challenges
Roadmap
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Medicinal & Aromatic Plants (MAPs)
Medicinal & Aromatic Plants (MAPs) are of utmost important from the
view point of their medicinal properties, role in economic, social,
cultural & ecological aspects and returns to the farming community
Historically, major cultivation and consumption of the MAPs was done
largely for local subsistence and it forms part of traditional medicine
system across the world
MAPs find several important applications in drug formulation,
perfumery, health products, food flavouring & supplements, cosmetics,
toiletry, animal care products etc.
Out of 45,000 plant species present in India, 15,000–20,000 are known to
possess medicinal properties
Out of these 15,000–20,000 plants, 7,000–7,500 are being utilized in
Indian System of Medicine (ISM)
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Global MAPs Market
Currently global herbal industry is valued at over INR 7200 bn and
expected to reach USD 7 trillion by 2050
Major factors contributing to growth of global MAPs market are
 Concerns for healthcare
 Marketing and branding of products
 Changing demographics and customized requirements
Global market for MAPs is largely dominated by China, Japan, France,
Germany, Italy, Spain, UK and USA
In the global herbal export, the share of India is very minimal (~1.6%)
Of this, 2/3rd is exported in the form of raw herbs
Buyers increasingly expect verifiable labels, codes of conduct and
management systems. Regulatory requirements also increasingly
stipulate independently-verified standards of cultivation, harvesting and
manufacture.
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Indian MAPs Market
India is ranked sixth among the 12 mega diversity countries globally and
home to a variety of important medicinal plant species
The domestic trade of the AYUSH industry is of the order of INR 90 110 bn. Sector is dominated by micro, small and medium enterprises
Farmers generally practice mixed farming and cultivation of MAPs
generates an estimated 40 million days of employment per annum in the
country
The country is one of the leading producers of essential oils among
MAPs (over 30,000 MT per annum)
During last few decades, the exports of herbal products from India has
increased ~ INR 5.81 bn in 1995-96 to ~ INR 17.13 bn in 2010-11
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Government Support - AYUSH
The Ayurveda, Yoga and Naturopathy, Unani, Siddha & Homeopathy
(AYUSH) industry represents the traditional form of Indian medicine
The Ministry of AYUSH is formed in 9th Nov 2014 for providing more
healthcare to the public. The Department of Indian Medicine and
Homeopathy (ISM&H) was created in March 1995 and renamed as
Department of AYUSH in Nov 2003, with a view to providing focused
attention to development of Education and Research in Ayurveda, Yoga
and Naturopathy, Unani, Siddha and Homoeopathy systems.
AYUSH has the potential to contribute positively to national health
programme by providing traditionally and historically proven
healthcare solutions
Since the creation of a separate Ministry, there has been a substantial
thrust to increase in the infrastructural facilities under AYUSH systems
in the country.
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National Medicinal Plants Board (NMPB)
The resource base of AYUSH medicines is largely plants. National
Medicinal Plants Board (NMPB) under the Ministry of AYUSH has been
established in Nov, 2000 to coordinate all the matters relating to
medicinal plants, like sustainability, conservation, cultivation, quality
assurance, protection of Traditional Knowledge, issues related of access
and benefit sharing etc. The Board was and acts as advisory body t
Ministries etc.
•
•
Currently, National Medicinal Plants Board (NMPB) is implementing
two schemes:
Central Sector Scheme for Conservation, Development and Sustainable
Management of Medicinal Plants
Centrally Sponsored Schemes of National Mission on Medicinal Plants
The cluster approach is also being promoted for MAPs, with cultivation
hubs in each region being developed with Processing Zones equipped
with facilities for value-addition, processing and marketing, including
export.
Details on http://www.nmpb.nic.in/index1.php?level=1&linkid=58&lid=173
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Challenges
Rapid urbanization through deforestation and unscrupulous harvesting
of the natural vegetation has resulted in species and habitat loss
Low level of standard technological advancements and low investments
in R&D in this particular sector
Lack of availability of quality seed material and high yielding varieties
resulting in low economic returns and disincentive for farming
community
Low level of extension activities to make farmers aware of the high
benefits of the MAPs
Unavailability of standard guidelines and referral laboratories for
monitoring quality of raw drug pesticide residue other adulterant
contaminations
Lack of authentic database on production, productivity, demand-supply
gap on MAPs
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Roadmap
Identification and conservation of specific zones where MAPs grow
naturally and their conservation
Conservation and management of available germplasm with the help of
advanced and standard technology for sustainable cultivation
Development of standard good agricultural practices for various MAPs
as per the agro-climatic suitability
Encouraging private sector investments in R&D under PPP structure for
introducing high yielding and hybrid seeds and varieties
Promoting large scale cultivation of MAPs by following standard
practices and encouraging various forms of contract/corporate farming
Interventions in the post harvest management infrastructure for value
addition in MAPs
But where is marketing…
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Roadmap
For the sector to grow successfully, there is a need for stable supply and
bulk orders, improved quality, clarity over the role the trader/agent
middle man and incentives for sustainable sourcing.
Transparent sourcing and of high quality medicinal products and tie-up
with partners having extensive market outlets can increase our trade
with EU and US markets
High decibel scientific marketing of MAPs needed under ‘Brand India’
to wake-up the value chain participants...the domestic and distant
markets and the industry from slumber a sustainable pull creation is
required
There are lots of apples in traditional Indian MAPs
which can keep doctors away.
And I have not touched the traditional knowledge systems of our country
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Thank You
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Sources
http://www.dmapr.org.in/Downloads/Vision%202050.pdf
http://www.fao.org/3/a-i2473e.pdf
https://www.pragya.org/doc/Indian-medicinal+aromatic-plant-tradeMar-2011.pdf
http://www.indianmedicine.nic.in/showfile.asp?lid=780
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• Presently, there are 3631 hospitals with about
57733 beds, 26102 dispensaries, 7,36,538
doctors, 519 educational institutions with
admission capacity of about 29101 UG student
and 3604 PG students and 9044 drugmanufacturing units under AYUSH systems.
Under NRHM, AYUSH facilities have been colocated with 331 District hospitals, 1885 CHCs
and 8461 PHCs.
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