STUDY ON ANALYZING EXPORT OPPORTUNITIES FOR HERBAL, AROMATIC AND AYURVEDIC PRODUCTS FROM MAHKAUSHAL REGION (MADHYA PRADESH) STUDY REPORT Published by: Sponsored by: Ministry of Commerce UNCTAD and Industry Report on Export Potential of Medicinal Plants ofMahakaushal Region 1 INDEX S.N. Chapter Particulars Page 1 List of Acronyms 3 2 Chapter - 1 Introduction 4 3 Chapter- 2 Export Strategy for Entry into Global Markets 11 4 Chapter - 3 Mahakaushal Region – Resources and Potential 39 Available 5 Chapter - 4 Herbal products of International Interest 49 6 Chapter - 5 Study of processes involved in the Cultivation & 59 Processing of Exportable products from Mahakaushal Region 7 Chapter- 6 Service providers available for penetrating into 132 Export Market of Herbs & Herbal products 8 Chapter - 7 Service providers available for penetrating into 139 Export Market of Herbs & Herbal products 9 Chapter – 8 Support available for Medicinal plants sector in 145 Mahakaushal Region 10 Chapter –9 Recommendations 155 11 Annexure –I Herbal Resources in fifteen districts of 165 Mahakaushal Region – Natural Availability ,Traders and Cultivators 12 Annexure –II Some Medicinal Plants available in four Major 186 Biodiversity Areas of Mahakaushal Region – Amarkantak , Pachmari, Chitrakoot & Tamia 13 Annexure –III Testing Facilities Available in two major 190 Laboratories (MFP-PARC and QC and TC) of Madhya Pradesh 14 Annexure –IV M. P. State Industrial Promotional Policy – 2004 192 15 Annexure –V Salient Initiatives for Pharmaceutical & Herbal drug 200 Industries under Industrial Promotion Policy – 2004 (Govt. of Madhya Pradesh) 16 Annexure –VI Export incentives to Herbal Industries and other 202 Promotional Schemes of Central & State Governments 17 Annexure –VII Basic Equipments required for the establishment of 204 a Drug Testing Laboratory of AYUSH 18 Annexure –VIII Procedure of Good Agricultural Practices (GAP) 208 19 Annexure –IX Procedure of Good Manufacturing Practices (GMP) 219 20 Annexure –X Major Wholesalers of Herbs and Herbal Products 228 in Germany 21 Annexure –XI World Wide major Importers of Honey 233 22 Annexure –XII National Medical agencies of European Union (EU) 242 23 Annexure -XIII References Report on Export Potential of Medicinal Plants ofMahakaushal Region 2 List of Acronyms AKVN Audogik Kendra Vikas Nigam AWC Available Water Capacity DTIC District Trade & Industries Centre WHO World Health Organisation TCM Traditional Chinease Medicine CAM Complementary & Alternative Medicine HIV/AIDS Aquired Immunised Desease Syndrome NMPB National Medicinal Plants Board FRLHT Foundation for Revitalisation of local Health Traditions MAWE Mahakaushal Association of Women Entrepreneurs MPCON Madhya Pradesh Consultancy Organisation MAPCOST Madhya Pradesh Council of Science & Technology MFP-PARC Minor Forest Produce – Production and Research Centre MPMFPF Madhya Pradesh Minor Forest Produce Federation or MP Laghu Vanoupaj Sangh Maryadit FISME Federation of Indian Small & Medium Enterprises JNKVV Jawahar lal Nehru Krishi Vishwa Vidyalaya SFRI State Forest Research Institute ISAP Indian Society of Agribusiness Professionals TRIFAC Trade and Investment Facilitation Corporation THMPD Traditional Herbal Medicinal Products Directives TFRI Tropical Forest Research Institute N Nitrogen P Phosphorous K Potessium Fe Iron Mn Manganese S Sulphur NWFP Non Wood Forest Produce Report on Export Potential of Medicinal Plants ofMahakaushal Region 3 Chapter-1 Introduction The use of plants for human health is probably as old as human beings themselves. According to the World Health Organisation (WHO), these are an accessible, affordable and culturally appropriate source of primary health care for more than 80% of Asia’s population. Specially the marginalised people, who cann’t afford or access formal health care system are solely dependent on these culturally familiar, technically simple, financially affordable and generally effective traditional medicines. Alongwith this, there is strong and sustained public support for the protection and promotion of the cultural and spiritual values of traditional medicines. The age old use and the growing popularity of medicinal plants or traditional medicines is not limited only to the developing economies but most of the developed countries are also switching over to these otherwise safe and natural products. In fact the 21st century is witnessing the resurgence of interest in everything termed as “Green” , “Organic”, “Natural”, “Herbal,” etc. throughout the world which could be witnessed from the following trend – - Japan has the highest per capita consumption of botanical medicines in the world and its sale has grown rapidly in recent years. Here Doctors are increasingly incorporating Traditional Chinese Medicines (TCM) and Complementary and Alternative Medicines (CAM) as a compliment to western medicines. - In San francisco, London and South Africa, 75% of people living with HIV/AIDS use TCM and CAM. - In China, traditional herbal preparations account for 30 to 50% of the total medicinal consumption. - 70% of the population in CANADA has used traditional medicines at least once in their life. - In Germany, 90% of the population has used a natural remedy at some point in their life. The country had put a special thrust on the training of their doctors and the number of doctors who had undergone training in natural remedy medicines had almost doubled between 1995 to 2000. Report on Export Potential of Medicinal Plants ofMahakaushal Region 4 - In the United States, 158 million adult population uses complementary medicines and according to the USA Commission for Alternative and Complementary Medicines ,they are spending about 20 billion US $ on traditional remedies. - In the United Kingdom,annual expenditure on Alternative Medicine is 230 M US $. - In Ghana,Mali, Nigeria and Zambia, the first line of treatment for 60% of children with high fever resulting from Maleria is the use of Herbal medicines - In Europe, North America and other Industrialised Regions, Over 50 % of the population have used CAM at least once in their life time. Not only from healthcare point of view, but medicinal and aromatic plants are increasingly being recognised as an important source of significant livelihood opportunities for rural poor and a source of revenue for Government also. The collection and cultivation of medicinal and aromatic plants provides an important source of cash income to many rural communities specially women, primitive forest dependent tribes, landless poor and marginalised farmers. According to Government of India’s Statistics, the collection and processing of medicinal plants contribute to atleast 35 Million working days of employment in a year (GOI ,2000) .The global demand of medicinal plants has been estimated at 60 to 62 billion US $ which is increasing at a rate of 7 -10 % annually. India has one of the world’s richest medicinal plants heritage not only in terms of the number of unique species available ( as out of 17000 species of higher plants available here, nearly 7500 are known to have medicinal uses ) , but also in terms of tremendous depth of traditional knowledge about this wealth. Starting with the enlisting of the medicinal properties of 67 plants some 5000 B.C. by Rigveda, today over 4786 ecosystems specific species of plants are being used for human and veternery healthcare throughout the sub continent. Today there are more than 7 lac registered practioners of Ayurveda, SIddha, Unani, Yoga and Naturopathy and Homeopathy- leaving a sizable number of non registered practitioners. About 9500 manufacturing units, 22,700 dispensaries and 1355 hospitals are serving the public through the practices of Indian system of medicines in the country. These systems have identified over 1500 plants of medicinal importance, of which nearly 500 are widely used. Alongwith richness of natural sources in medicinal wealth, their cultivation has also increased significantly over the past few years due to the systematic efforts of National Medicinal Plants Board ( presently it has reached Report on Export Potential of Medicinal Plants ofMahakaushal Region 5 upto 18 %, where as it used to be lesser than 10% as per NMPB and FRLHT study,2008 ). These strengths ultimately show India’s capabilities of fulfilling most of world’s requirement of medicinal herbs. New paral The Mahakaushal region of the state of Madhya Pradesh hosting a tribal population of 26.55 % to the total population, and 34.8 % forest area to the total geographical area with large cultivable land suitable for a host of medicinal plants, availabilities of four major centres of Bio diversity namely Panchmarhi, Amarkantak,Tamia and Chitrakoot present a strong case for becoming a medicinal hub for the world and a sustainable source of Livelihood for millions of its inhabitants. 1.1 Need & Objectives of the study Undoubtedly, herbs and herbal products are growing in popularity throughout the globe as evident from the above discussion and looking into the climatic conditions, richness of area in the sector and agrarian background of the inhabitants of Mahakaushal region, it could offer excellent opportunities to the region to export such items to the world. But unfortunately, no significant progress has been recorded on this front so far. This could be due to the following reasons – 1. Lack of information on opportunities and procedures. 2. lack of awareness about the crops which could be cultivated for export purpose. 3. Lack of awareness about the agro technology, good agriculture practices as well as good harvesting and storage practices required for export purpose. 4. Lack of basic requirements for entering into the trade like testing requirments, technical know how as well as procedural formalities. 5. Absence of any agency to guide and coordinate the activities and the people of the area in this direction. Taking a note of this situation and sensing the possibilities of growth in the sector, Mahakaushal Association of Women Entrepreneurs (MAWE), Jabalpur took an initiative and approached Federation of Indian Small & Medium Enterprises (FISME) to extend help in developing a strategy for the growth of this sector. FISME, in return, assigned this job to VIMARSH. On the basis of discussions with the authorities of MAWE and FISME, the following broad objectives of the study were drawn – (cid:164) To identify important herbal raw materials available in Mahakaushal region. (cid:164) To assess and enlist the herbal products of interest for national and international markets. Report on Export Potential of Medicinal Plants ofMahakaushal Region 6 (cid:164) To analyse various processes involved in the sector such as cultivation, processing, packing and others. (cid:164) To study and analyse the testing requirements and international standards for exportable products. 1.2 Methodology of the Study The following major steps were followed in conducting the study - 1.2.1 Preliminary Consultations with FISME Joint meetings were held with the FISME team for initial briefing and finalization of the approach and time frames. 1.2.2 Detailed discussions with core group, experts from the field and stakeholders It was decided during the consultation with FISME to have a core group meeting on developing the indicators and finalise the tools for conducting the study. The Group comprised members of Mahakaushal Association of Women Entrepreneurs, Faculty of Jawaharlal Nehru Krishi Vishwavidyalaya, experts from State Forest Research Institute (SFRI) Jabalpur, Entrepreneurs, Consultants and experts working in the field of Medicinal and Aromatic plants. The formal meeting of this group was organised on 2nd July 2008 at Jabalpur with participation of about 31 members. The groups discussed various issues related to study and suggested the following course of action – Primary data regarding the availability of raw material and other resources should be collected Review of literature published by various organisations related to the sector. Personal Views / Interviews for developing insight into the sector should be collected from various stakeholders and experts Enlisting of existing resources like testing laboratories etc. should be done Review of latest export trends should be carried out. 1.2.3 Personal meetings with leading experts and stakeholders In order to get an insight into the sector and workout the proposed strategy, the study team contacted leading experts from the sector and got their views for developing a workable strategy. In this respect personal meetings with the following experts were held - Report on Export Potential of Medicinal Plants ofMahakaushal Region 7 (cid:101) Shri V.R.Khare, farmer Principal Chief Conservator of Forest, Govt of Madhya Pradesh (cid:101) Shri R.K.Dave, Managing Director, M. P. Minor Forest Produce Federation Ltd., Director, JNKVV and other forest department officials. (cid:101) Shri A.A.Ansari, Farmer Executive Director, M.P. Minor Forest Produce Federation Ltd. (cid:101) Shri Ravi Shrivastav, Executive Director, M.P. Minor Forest Produce Federation Ltd. (cid:101) Shri Shahbaz Ahmed, General Manager, M.P. Minor Forest Produce Federation Ltd. (cid:101) Shri Abhay Patil Chief Executive Officer, MFP Processing & Research Centre (MFP PARC) (cid:101) Dr. J.L. Shrivatav, Sr.Scientist, SFRI ,Jabalpur (cid:101) Dr. N.N.Mehrotra Executive Directo, M.P. Council of Science & Technology,Bhopal (cid:101) Dr.Radha Sharan Goswami, President, M.P. Laghu Udyoug Sangh and Renowned Entrepreneur of Pharmaceutical field. (cid:101) Shri P.S. Ramchandran, Director, PSS, Exports (A leading exporter of herbs ),Tuticoran (cid:101) Shri R.K. Chaurasia ,Managing Director, MP AKVN, Jabalpur (cid:101) Shri Satish Pendharkar , General Manager, TRIFAC, Bhopal (cid:101) Shri V.K. Baroniya, CEO,TRIFAC,Bhopal (cid:101) Shri Narayan Das Prajapati, Jodhpur ( A leading exporter of herbs ) (cid:101) Shri S.K.Verma, Indian Institute of Foreign Trade, New Delhi (cid:101) Shri Sunil Khaskalam, Dy Director, Horticulture, Jabalpur (cid:101) Dr.Rajeev Sharma, Sr.Scientist, PLIM,Ghaziabad 1.2.4 Primary Data Collection from the field In order to get the actual and first hand information about the availability of herbs and other resources from the region, the primary data upto forest range office level was collected. In total, 90 ranges were personally visited by the team. Alongwith the collection of information from range offices of all the fifteen districts of the region, the following officials were also contacted – - Divisional Forest offices of the divisions - Offices of Dy.Director, Horticulture - Offices of Dy.Director, Agriculture Report on Export Potential of Medicinal Plants ofMahakaushal Region 8 - General Managers of DTICs of the region - Leading herbs collectors , traders and practitioners of the area - Leading processors of herbs of the area 1.2.5 Review of Available literature and Reports related to Export markets With a view to get an insight into the agro-technology involved in various crops which could be cultivated in the region as well as various products which could be manufactured /produced on the basis of raw material available, the literature available with various agencies was studied in depth. These mainly included – - Books and monographs published by SFRI,Jabalpur - Farm Manuals and extension literature published by JNKVV - Books on processing of Herbs prepared by MPCON - Literature prepared by ISAP - Regulation of collection, Transit and trade of Medicinal Plants and other Non Timber forest products in India. Published by TRAFFIC India - Ayuervedic Pharmacopoeia of Indian Medicines (Vol I, II, III) prepared by PLIM, Ghaziabad. Alongwith these, following reports related to export potential of herbs and medicinal plants were also studied in detail - - Status Report on medicinal plants published by National Medicinal Plants Board, New Delhi and FRLHT (2008) - MAPS report prepared by Technopack Advisors Pvt. Ltd.,2007 for APEDA - Report on Export Potential Study for Herbal and Natural products in European Union. Submitted by MP Trade & Investment Facilitation Corporation ltd. Bhopal - Export Potential of Herbal and Ayurvedic drugs ,Published by MVIRDC,World Trade Centre , Mumbai - Medicinal Plants of Madhya Pradesh : Survey and Technological aspects prepared by MAPCOST and DSIR For studying the export trend of medicinal plants and their products from India, export details from Sept 2007 to Sept 2008 were especially collected from DGS&D under the heading “Shipperwise Senna/Crude Drugs Movement Statistics Alongwith Report on Export Potential of Medicinal Plants ofMahakaushal Region 9 Importers addresses from Sept 2007 to Sept 2008 from Tuticorin centre / port of India.” 1.3 Working out of Strategy On the basis of discussions with leading experts, stakeholders, Govt. Officials, primary data from the field and its analysis, as well as the study of related literature, the detailed strategy for the promotion of exports of herbs and their products from Mahakaushal Region has been worked out. 1.4 Deliverables The study has been divided into 9 chapters covering the major objectives of the study as well as complying to the output desired through the Terms of Reference (TOR) related to the assignment – Chapter 1 - Introduction – Need, Objectives and Methodology of the study Chapter 2 – Export Strategy for entry into Global Markets Chapter 3 - Mahakaushal Region – Resources and Potential Available Chapter 4 –Indian Herbal Products of International Interest Chapter 5 – Study of processes involved in the cultivation and processing of exportable products from Mahakaushal region Chapter 6 – Standards & Specifications of herbal Products Chapter 7 – Service Providers available for penetrating into Export market of Herbs & Herbal Products Chapter 8 - Support available for Medicinal Plant sector in Mahakaushal Region Chapter 9 - Recommendations Report on Export Potential of Medicinal Plants ofMahakaushal Region 10