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10. Key Findings and Recommendations

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10. Key Findings and Recommendations 10. KEY FINDINGS AND RECOMMENDATIONS Synthesis of the data gathered under this study has resulted in generation of a comprehensive inventory of 960 medicinal plant species that form source of 1289 botanical raw drugs recorded in trade in the Indian raw drug markets (Appendix-1). This list provides correlation of the popular trade names with the updated botanical nomenclature and would form a reliable base for any study on traded medicinal plants of India. Out of these 960 species, 688 are part of the classical materia medica of ‘Ayurveda’, 501 species of ‘Siddha’ and 328 of the ‘Unani’ system, with many species overlapping across these systems. 41% of these 960 species are herbs, 26% are trees, 18% are shrubs and the remaining 15% are climbers. Whole plants, roots, wood and bark form more than 50% of the 1289 botanical raw drugs in trade and as such their collection involves damage/destruction of the specific plant entities. 81% (780) of these species in trade are sourced entirely or largely from the wild, the remaining traded species being obtained from either cultivation or imports. The study has also resulted in assessment of total annual demand of botanical raw drugs and its corresponding monetary valuation. Inferences drawn from the analysed data can guide major shifts in strategies and focus for management of medicinal botanicals both in the agricultural and forestry sector. This study is, thus, a definite step forward towards clearer understanding of the priorities for management of the medicinal plant resources of the country. Key findings of the study are outlined below: 10.1. Estimation of Annual Demand of Botanical Raw Drugs The annual demand of botanical raw drugs in the country has been estimated at 3,19,500 MT for the year 2005-06. This demand estimate reflects synthesis of data related to consumption of botanicals by the domestic herbal industry, the rural households and the actual volume of botanicals exported during the year 2004-05 (Table 10.1). For arriving at realistic annual demand estimates in respect of the domestic herbal industry, the ‘demand’ has been assumed to be equivalent to the actual ‘consumption’ of botanical raw drugs by the industry. This has helped in offsetting the general tendency amongst the traders and industrial consumers to quote much higher ‘potential’ demand estimates, leading to over- estimation. There are many spices, fruits, vegetables and cereals that are used in high quantities by the herbal industry. We have, however, excluded such entities while arriving at demand estimates of ‘botanical raw drugs’ as: (i) the use of such entities as ‘herbal raw drugs’ forms only a small part of their annual production and their major usage is for other purposes, 108 Demand and Supply of Medicinal Plants in India Table-10.1: Total Annual Demand of Botanical Raw Drugs by Dry Weight (2005-06) S. Categories of Estimated Basis of Estimates Remarks Consumers Annual Demand (MT) 1 Herbal Industry* 1,77,000 Analysis of consumption The demand estimates pertain data of 188 sampled to botanical entities that are herbal units stratified exclusively traded as ‘herbal into outturn based four raw drugs’ and do not include size-classes demand on account of popular spices, fruits, 2 Rural Households 86,000 Analysis of medicinal vegetables and cereals used as plants consumption of raw drugs. 1223 sampled rural households (5 states) 3 Exports** 56,500 Analysis of DGCIS data relating to export of commodities during 2004-05 Total: 3,19,500 * Data pertains to 2005-06 * * Data pertains to the year 2004-05. (ii) all these entities are already under sizeable cultivation and the demand by the herbal industries is being adequately met, and (iii) there is already adequate focus on their cultivation and management through various government agencies like Spices Board, Horticulture Board etc. and specific intervention by NMPB may not be needed. 10.1.1. Estimates of Non-commercial Household Consumption: An important highlight of this study is the first ever quantitative estimation of the herbal raw drug consumption by the Rural Households. This segment of the society consumes an estimated 86,000 MT of botanical raw drugs per year for health care purposes. This accounts for nearly 27% of the total estimated consumption of herbal raw drugs in the country. Inclusion of consumption estimates in respect of the rural households for estimation of total annual consumption of botanicals in the country reflects a paradigm shift in the demand and supply assessment procedure and will contribute to understanding the role of botanicals for fulfilling health security and largely the non-commercial requirements of rural communities. This demand has important implications for developing a more holistic framework for the management of the resource. One implication is that in the 11th Plan one will need to balance commercial cultivation programmes, which largely cater to industrial consumption, with programs for promoting homestead and community gardens which can meet the non-commercial requirements for the resource. Although this estimation has been Key Findings and Recommendations 109 based on a limited sample size, the results are indicative enough to flag this important dimension of non-commercial and non-industrial consumption of medicinal plants in the country. Box 10.1: Comparison of Annual Demand Estimates with Previous Studies: The comprehensive annual demand estimate of 3,19,500 MT arrived at under this study, is higher than the quantitative estimates reported in the three earlier national level reports i.e. the Planning Commission’s Task Force Report (Anon. 2000), CERPA report (Anon. 2002) and the EXIM Bank Report (Anon. 2003). The Task Force Report (Anon. 2000) had, on the basis of quick assessment, estimated the total herbal raw material demand of the ISM sector as 2,40,000 MT. The total annual demand of botanicals in the country, extrapolated by CERPA report (Anon 2002) on basis of study of 162 species, was estimated at 2,34,674 MT (1,98,054 MT on account of domestic consumption & 36,620 MT on account of exports). The EXIM Bank Report (Anon. 2003) estimates the total demand of botanicals to be 1,28,000 MT. A critical evaluation of the Task Force Report reveals that it neither contains any basis nor methodology for ‘quick assessment’ of the demand and supply. The demand estimate can at best, therefore, be taken as indicative. In the case of the CERPA Report, the annual demand estimation is based on the fieldwork related to 162 species with more than 100 species in high demand left out of the survey and analysis. Moreover, the demand figures worked out in the CERPA Report seem to be very high in respect of certain species. For example, the domestic annual demand of ‘Vansalochan’ has been estimated to be 2,153.5 MT in CERPA Report whereas the same has been assessed to be below 100 MT in the present study. Similarly, annual demand of other species, viz. Asparagus racemosus, Adhatoda zeylanica, Saraca asoca has been estimated at 8,246.3 MT, 4,211.9 MT and 5,331.8 MT respectively. These demand estimates seem to be much higher when viewed in the light of consumption figures of 3,180 MT, 2,701 MT and 2,041 MT respectively for these species arrived at in the present study. As far as the EXIM Bank Report is concerned, the annual demand estimate has been calculated by dividing the total trade value estimates given in the National Draft Policy on ISM, 2001, by an average common price of Rs. 30/- per kg for all botanicals. 10.2. Estimation of Annual Trade Value of Botanical Raw Drugs An annual trade value corresponding to the trade of 3,19,500 MT of botanical raw drugs in the country works out to Rs. 1,069 crores for the year 2005-06. This trade value reflects the synthesis of trade values worked out separately for each of the three different consumer categories (Table 10.2). As far as the valuation of botanical raw drugs exported during the year is concerned, the actual export value i.e. Rs. 354.80 crores as gleaned from the DGCIS data has been used. As regards the rural households, a notional average value of Rs. 10 per kg for air- dried material (equivalent to Rs. 2/- per kg of green material) has been used to work out the financial contribution of medicinal herbs to the society on account of non-commercial users. The quantities of plant raw drugs procured by M/s. Dabur, M/s. Sami, M/s. Charak and M/s. Zandu, during 2005-06, add up to 8,147 MT at a corresponding procurement value of Rs.2,890 lac. Using this correlation, the total trade value of 1,77,000 MT consumed by 110 Demand and Supply of Medicinal Plants in India the herbal manufacturing sector works out to Rs.627.90 Crores. This works out to a procurement cost of Rs.35.47 per kg for all botanicals in industrial consumption, excluding spices, cereals, fruits etc. Most of the plants are traded by parts and not as a whole and as different plant parts in trade command different prices, it is not feasible to work out species- wise prices for botanicals in trade. Further, the prices are subject to large variations depending upon season, distance from the source, quantum of production, purity/quality, bulk purchases etc. making it impossible to work out species-wise ‘average annual prices’. Table 10.2: Total Annual Trade Value of Botanical Raw Drugs (2005-06) Consumer Quantity Trade Value Remarks Categories Consumed (MT) (Rs. in crores) Herbal Industry 177000 627.90 i) The aggregated procurement costs reported by four major Exports* 56,500 354.80 manufacturing units (Dabur, Rural Households 86,000 86.0 Charak, Sami and Zandu) have been utilized for estimating the Total: 3,19,500 1068.70 procurement value of 177000 MT of raw drugs.
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