Export of Medicinal Plants from India PDF

# Export Marketing of Medicinal and Aromatic Plants from India ## Introduction - Medicinal and Aromatic Plants have been used in India for a long time. - India is home to about 2000 native plants with curative properties and 1300 species with properties of aroma and flavor. - The Indian systems...

# Export Marketing of Medicinal and Aromatic Plants from India ## Introduction - Medicinal and Aromatic Plants have been used in India for a long time. - India is home to about 2000 native plants with curative properties and 1300 species with properties of aroma and flavor. - The Indian systems of Ayurveda are regaining popularity as an alternative medicine system. - India has rich medicinal plant heritage. - About 880 medicinal plant species are involved in national and international trade (Exim Bank study). - Indian medicinal plants are traditionally used for treatment of human diseases. - They are used by a significant population of India, especially in rural areas and increasingly used in urban areas in the form of Ayurveda, Sida and Naturopathy. ## Global Context - China and India are the two major production centers of medicinal plants. - They represent over 40% of global biodiversity in this sector. - The international market for medicinal and aromatic plants is worth over $60 billion per year and growing at a rate of 6% per annum. ## India's Medicinal Plants - India boasts a unique diversity of medicinal plant species. - Most of these species possess medicinal and aromatic properties. - They are used for oil extraction, aroma production, bio-chemical constituent extraction, etc. - According to the All India Ethno Biological Survey carried out by the Ministry of Environment and Forests, Government of India, over 8000 species of medicinal plants grow in India. - The majority of these plants are found in tropical forests in Western and Eastern Ghats. ## Export Promotion Efforts - Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL) is actively promoting medicinal and aromatic plant exports. - Exports of medicinal plants and herbal material currently stand at Rs 550 crores (2005-06). ## Export of Medicinal and Aromatic Plants from India - The major export markets include: - Saudi Arabia - UAE - Kuwait - Iran - Sri Lanka - Bangladesh - Western and European Countries - USA - China - China is a major production center of MAPs, but it also imports considerable numbers from India. ## Export Trends - There are increasing export trends for aromatic plants and oils in 2005-06. - The major oil exports with an increasing trend are: - Lavender Oil - Patchouli Oil - Geranium Oil - Lemon Grass Oil - Agar Oil - Basil Oil - Sandal Oil - Export of other major products like Isobgol husk, Belladonna leaves, Chirata and Asafoetida declined in 2005-06. ## Export Value and Quantity - The highest revenue realization was from: - Isobgul husk - Cambodge extract - Senna leaves and pads - Sandalwood chips and dust - Belladona extract - Despite the lower quantity of Sandal Oil, it generates a high revenue due to its higher price in the international market. - Isobgul and Senna leaves are exported in high quantities, but they have a lower revenue due to their lower value. ## Export & Import Policy for MAPs - There is a basic customs duty of 30% on MAP parts and extracts imported into India. - Excise duty is charged at a rate of 16% on MAPs, parts and extracts. - This information is summarized in the Table 1 and Table 2 (refer to the document for the details). ## Import and Export Duty on MAPs in India - A 30% basic customs duty and 16% excise duty is charged on a variety of medicinal and aromatic plants and products. - The import policy for MAPs is largely free, with certain exceptions. - The exceptions are: - Serpentina roots - Kuth root - Agarwood - The import of these items is restricted under the Convention of International Trade in Endangered Species of Wild Fauna & Flora (CITES) and the Wildlife (Protection) Act of 1972. ## Export Strategy for MAPs - The export strategy for medicinal plants in India needs to be strengthened. - Several recommendations for improving the policy include: - Allocate funds for conducting research and development to improve the quality of medicinal plants and establish their efficacy in clinical trials - Establish dedicated Export Promotion Zones to focus on the cultivation and processing of medicinal plants - Invest in further research and development to identify the active ingredients in medicinal plants, create a national pharmacopeia, and improve processing technology - Focus on exporting finished medicinal products rather than only raw materials - Implement the recommendations in a timely manner to boost the export of medicinal plants ## Institutional Efforts in India - The National Medicinal Plants Board (NMPB) is promoting the growth of medicinal and aromatic plants, along with their sustainable use. - The NMPB is focusing on: - Development and sustainable use of medicinal plants - Research and development of medicinal plants - Marketing and export of medicinal plants - India's Foreign Trade Policy (FTP) in 2004-09 also focuses on export promotion of medicinal and aromatic plants. - The FTP aims to achieve these objectives through: - Duty-free import of capital goods under the Export Promotion Capital Goods (EPCG) scheme - Duty credit scrip equivalent to 5% of the f.o.b. value of exports - Implementing Vishesh Krishi and Gram Udyog Yojana to promote agricultural exports ## Vishesh Krishi and Gram Udyog Yojana (VKGUY) - The VKGUY scheme offers benefits to exporters to compensate for high transport costs and encourage the use of domestic raw materials. - The program includes the following benefits: - Duty credit scrip benefits for eligible products - Additional benefits for exporters who use domestic raw materials - The scheme includes a variety of products, including: - Oleoresins - Extracts - Leaves and powder - Value added extracts - The program is designed to promote exports from specific agricultural products. - The scheme is effective from different dates for different product categories. ## Agri-Export Zones for MAPs - A dedicated Agri-Export Zone for medicinal and aromatic plants is being established in Uttarakhand. - The project envisages an investment of Rs. 18.81 crores, with private sector participation, central government funding, and state government funding. - The goal is to achieve an export turnover of Rs. 43.57 crores over five years. - A second Agri-Export Zone for medicinal and aromatic plants is being set up in Kerala. - The project will require a total investment of Rs. 26.24 crores. - It is expected to generate an export turnover of Rs. 157 crores over five years. - Both projects are expected to bring significant benefits to farmers in these states. ## Import and Export Policy for MAPs in India - Most medicinal and aromatic plants, parts, extracts and oils are free for imports. - However, some items are restricted, including: - Serpentina roots - Kuth root - Agarwood - Restrictions are primarily driven by the Convention of International Trade in Endangered Species of Wild Fauna & Flora (CITES). ## Issues and Opportunities - There is an opportunity to further develop the export potential of medicinal and aromatic plants from India. - To fully harness this potential, it is necessary to: - Improve the quality and availability of medicinal plants - Develop and promote cultivation of medicinal plants - Establish export processing facilities - Strengthen marketing and promotion efforts ## Conclusion - The global market for medicinal and aromatic plants is rapidly expanding. - Indian medicinal plants are in high demand around the world, offering a significant opportunity for export growth. - This can be achieved by implementing the right export strategies, supporting producers, and improving processing capabilities. - The focus should be on promoting value-added products and utilizing domestic raw materials to maximize the economic benefits of this important sector. ## Further Information - This document does not include tables and data shown in the original document. - It is recommended to review the original document for complete data and analysis.