Growth in global trade in medicinal plants

With an increasing number of consumers putting their faith in drugs of plant origin, the world market for medicinal plants and derivatives is estimated at US$65bn (€60bn) and is growing at about 7% annually. Of all markets in the developed world, demand for herbal products in medicines, cosmetics and aroma therapies is growing fastest in the European Union.

Although India was among the first countries to identify the curative properties of herbs, its share of global trade in medicinal and aromatic plants remains small. It is estimated that potential Indian demand for ayurvedic and herbal products, including otc products, ethical formulations and classical formulations, is about Rs3bn (e58m) but this has yet to be exploited by local companies and exports are growing faster than domestic sales.

Extracts from more than 7,500 species of plants are used in medicines for human and veterinary health care under the Indian system, which includes ayurveda, unani, siddha and Tibetan codified systems of medicine. An Exim Bank report stated that to boost exports 'cultivation of plants of superior quality will have to be undertaken, farmers educated and supplied with superior quality plants, and produce bought at a guaranteed price'.

The report continued: 'Fewer than 20 species of plants are under commercial cultivation, while more than 4,000 species are needed by industry for making products.' It calls on the Indian government to establish a specialist export promotion council to support the export of medicinal plants, herbal products and ayurvedic medicines.