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Sub-study of the India country study of the INDIA international collaborative research project: COUNTRY Instruments for sustainable private sector forestry SUB-STUDY The ayurvedic medicine industry: Current status and sustainability Niraj Subrat Meera Iyer Ram Prasad A collaboration between: Ecotech Services (India) Pvt. Ltd. and International Institute for Environment and Development 2002 Untitled-9 1 3/11/2005, 9:06 AM Copies of this report are available from: Ecotech Services (India) Pvt. Ltd. Forestry and Land Use Programme Rajendra’s Mahaveer Tower-I International Institute for B-2, Local Shopping Complex Environment and Development MMTC/STC Colony, Geetanjali Enclave 3 Endsleigh Street New Delhi 110 017, India London WC1H 0DD, UK Tel. +91 11 669-1091, 669-2092, Tel. +44 20 7388 2117 669-1793 Fax +44 20 7388 2826 Fax +91 11 6691794 e-mail [email protected] e-mail [email protected] http://www.iied.org © Ecotech Services (India) Private Ltd., 2002 The findings, interpretation and conclusions expressed in this study are the results of research supported by ETS and IIED, but they are entirely those of the authors and should not be in any manner attributed to ETS, Members of it’s Board of Directors or IIED. Cover photo: Herbal ingredients—the essence of ayurveda by Niraj Subrat Published by Ecotech Services (India) Pvt. Ltd. Printed by Saku Printing House, New Delhi Printed on Super Print 80 gsm Instruments for sustainable private sector forestry is a project co-ordinated by the International Institute for Environment and Development (IIED) and is supported by the UK Department for International Development and the European Commission. The Instruments for sustainable private sector forestry publication series derives from this project. The series includes: 1. Foreign portfolio investment and Sustainable development: a study of the forest products sector in emerging markets. Maryanne Grieg-Gran, Tessa Westbrook, Mark Mansley, Steve Bass and Nick Robins. 1998 2. Privatising sustainable forestry: a global review of trends and challenges. Natasha Landell- Mills and Jason Ford. 1999 3. Economic instruments for tropical forests: the Congo Basin case. Alain Karsenty. 2000 4. Certification’s impacts on forests, stakeholders and supply chains. Stephen Bass, Kirsti Thornber, Matthew Markopoulos, Sarah Roberts, Maryanne Grieg-Gran. 2001 5. Raising the stakes: impacts of privatisation, certification and partnerships in South African forestry. James Mayers, Jeremy Evans and Tim Foy. 2001. 6. Company-community forestry partnerships: from raw deals to mutual benefits. James Mayers and Sonja Vermeulen. 2002 7. Getting the private sector to work for the public good: instruments for sustainable private sector forestry in China. Lu Wenming, Natasha Landell-Mills, Liu Jinlong, Xu Jintao and Liu Can. 2002 8. The New Foresters: the role of private enterprise in the Indian forestry sector. Sushil Saigal, Hema Arora and S.S. Rizvi. Ecotech Services (India) Pvt. Ltd. 2002. 9. Instruments for sustainable private sector forestry in Brazil: an analysis of needs, challenges and opportunities for natural forest management and small-scale plantation forestry. Virgilio Viana, Peter May, Lucineide Lago, Olivier Dubois and Maryanne Grieg-Gran. 2002 10. Production, privatisation and preservation in Papua New Guinea forestry. Colin Hunt (ed). 2002 11. Silver bullet or fools’ gold? A global review of markets for forest environmental services and their impact on the poor. Natasha Landell-Mills and Ina Porras. 2002 These studies are available from Earthprint Limited at the following address: Earthprint Limited, Orders Department, P.O. Box 119, Stevenage, Hertfordshire, SG1 4TP, UK. e-mail: [email protected] http://www.earthprint.com Tel: +44 1438 748111 Fax: +44 1438 748844 e-mail: [email protected] ii Instruments for sustainable private sector forestry: India Country Sub-study Untitled-9 2 3/11/2005, 9:06 AM Contents Preface v Executive summary vi Acknowledgements x 1. Introduction 1 1.1 Methodology 1 1.2 Outline of report 2 2. Ayurveda: the science of life 3 2.1 Ayurvedic system 3 2.2 Use of medicinal plants in the ayurvedic industry 4 2.3 Resource base 4 3. Profile of the ayurveda industry 7 3.1 Extent of infrastructure 7 3.2 Organisation of the ayurveda manufacturing industry 7 3.3 Nature of the ayurveda industry 8 3.4 Ayurvedic formulations 9 4. Criteria for selection of medicinal plants to be studied in detail 10 The ayurvedic medicine industry: Current status and sustainability iii Untitled-9 3 3/11/2005, 9:06 AM 5. Trade in medicinal plants in India 15 5.1 Identification crisis: co-relation of trade name and botanical name 15 5.2 Distribution of the medicinal plants trade across the country 16 5.3 Analysis of volume and price of selected species across four markets 20 5.4 Stakeholders and supply channels 21 5.5 Scope for semi-processing 27 6. The demand supply gap 29 6.1 Demand trends in trade 29 6.2 The supply crisis 33 6.3 Coping with the demand supply gap 35 6.4 Cultivation of medicinal plants: solution to what? 41 7. Institutions and interventions in the medicinal plants sector 44 7.1 Central government organisations dealing with medicinal plants 44 7.2 State level organisations 46 7.3 Need for nodal agencies and a national forum 47 8. Sustainable management and development of medicinal plants 49 8.1 Towards sustainable management of medicinal plants 49 8.2 Relevance and application of criteria and indicators 51 8.3 Identification of draft criteria and indicators 52 8.4 Potential and constraints regarding applicability of criteria and indicators 53 8.5 Potential agencies to monitor indicators and certify the system as sustainable 54 iv Instruments for sustainable private sector forestry: India Country Sub-study Untitled-9 4 3/11/2005, 9:06 AM 9. Recommendations 55 Annex 1: Study terms of reference 58 Annex 2: Questionnaire sent to industry 60 Annex 3: Background to the Unani and Siddha systems of medicine 63 Annex 4: Important medicinal plants used in ayurveda 64 Annex 5: Major plants required by Indian pharmaceutical industries 67 Annex 6: Number of licensed pharmacies in Indian System of Medicine 69 Annex 7: Top 20 medicinal plants traded in India in value terms 70 Annex 8: Top 17 medicinal plants consumed by Baidyanath, Jhansi 71 Annex 9: Plants considered in market study by TRAFFIC (India) 72 Annex 10: Major medicinal plant species exported from India 73 Annex 11: Notification prohibiting the export of medicinal plants 74 Annex 12: Medicinal plants in short supply 76 Annex 13: Raw drug material imported to India 78 Annex 14: Organisations engaged in cultivation of medicinal plants 79 Annex 15: International initiatives in the medicinal plants sector 81 References 85 The ayurvedic medicine industry: Current status and sustainability v Untitled-9 5 3/11/2005, 9:06 AM List of tables and boxes Table 2.1: Analysis of plant parts used in ayurvedic industry 4 Table 2.2: Selected formulations with the number of species being used 4 Table 3.1: Indian Traditional System of Medicine: Infrastructure 7 Table 3.2: Sales figures of major ayurveda manufacturers 8 Table 3.3: Frequency of occurrence of medicinal plants in herbal formulations in India 9 Table 4.1: List of medicinal plant species selected for the current study 13 Table 5.1: Zone and state-wise classification of important medicinal plants market in India 17 Table 5.2: Volumes and prices for the years 1998–99 and 1999–2000: Delhi Market 18 Table 5.3: Estimated volumes and prices of selected species across four markets in April 2000 21 Table 5.4: Prices paid at different levels in the supply chain 22 Table 5.5: Estimate of number of players in the medicinal plants trade in Delhi and Mumbai 26 Table 5.6: Semi-processing/value addition for selected species 28 Table 6.1: Growth in sales of major manufacturers 29 Table 6.2: Annual percentage growth rates by region of the medicinal plant market 30 vi Instruments for sustainable private sector forestry: India Country Sub-study Untitled-9 6 3/11/2005, 9:06 AM Table 6.3: Herbal medicine sales in major consumer countries 31 Table 6.4: Reported sale values of the top medicinal plant exports, 1990–94 31 Table 6.5: Value of exports of Indian medicinal plants to top eleven destinations 32 Table 6.6: Demand and supply of medicinal plants in north west Himalayas 34 Table 6.7: Estimation of raw material demand of threatened species 35 Table 6.8: Medicinal plants used in the project Arya Vaidya Sala 38 Table 7.1: Summary of the responsibilities of the various ministries and departments of Government of India regarding medicinal plants 45 Table 7.2: Summary of responsibilities handled by different wings of the Ministry of Environment and Forests regarding medicinal plants 45 Table 8.1: Draft criteria and indicators for sustainable management and supply of medicinal plants 53 Box 2.1: Basic principles of ayurveda 3 Box 5.1: Legal intervention enhances community benefits and boosts conservation measures in Madhya Pradesh 24 Box 6.1: Psyllium seed and husk: production and export 33 Box 6.2: Sustainable harvest of medicinal plants: a case study of Biligiri Ramaswamy Temple Wildlife Sanctuary, Karnataka 36 Box 6.3: Glitter of the ‘Glory-Lily’ 41 Box 7.1: Medicinal Plants Production Areas in Himachal Pradesh 46 The ayurvedic medicine industry: Current status and sustainability vii Untitled-9 7 3/11/2005, 9:06 AM Acronyms AP Andhra Pradesh APEDA Agricultural Processed Food Product Export Development Authority APFD Andhra Pradesh Forest Department AVS
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