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Clmpter - XII
IMPORT AND EXPORT OF THE TRADITIONAL MEDICINE AND MEDICINE PLAINTS TRADE
This Chapter deals with the issue relating to the import and export of the
traditional medicines as well as, medicinal plants including its impact on the
global and domestic trade activities. Infact, the trade of traditional medicine as
well as, medicinal plants are getting importance and if the legal protection is
provided along with the public awareness, the trade activities will increase
further. If there is Information about the trade activities of the traditional
medicine, it will also helpful to prove its importance and it is also possible to
awake the nations to give importance to the traditional medicines.
The details about the quantum of export and import of the traditional
medicines as well as, medicinal plants are not available in accurate. There is
also difficult to collect correct statistical information in this regard, however the
available details relating to the trade of traditional medicines are placed under
this chapter. In this chapter, there are information about international trade and
trade activities (export and import) in India. Infact, this chapter is taken
importance to ascertain the values of the traditional medicine as well as
medicinal plants. No specific estimate is available for the global market or for
the Indian market for the trade of medicinal plants, medicine resources, neither
individually nor even collectively.
12.1 Medicinal Plants Wealth of India
India is rich in medicinal plant diversity. All known types of agro-
climatic and ecologic conditions are met within India. The biogeographic
position of India is so unique that all known types of ecosystems ranging from
coldest place like the Nubra Valley with - 57° G dry cold deserts of Ladakh,
temperate and Alpine and subtropical regions of the North-West and trans-
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Himalayas, rain forests with the world's highest rainfall in Cheerapunji in
Meghalaya, wet evergreen humid tropics of Western Ghats, arid and semi-arid
conditions of Peninsular India, dry desert conditions of Rajasthan and Gujarat
to the tidal mangroves of the Sunderban. India is rich in all the three levels of
biodiversity-such as species diversity, genetic diversity and habitat diversity.
Out of 17,000 plants, the classic systems of medicines like Ayurveda, Siddha
and Unani make use of only about 2000 plants in various formulations. The
classical traditions were prevalent in the past particularly in the urban elite
society. The rural people who constitute 70 to 75% of the Indian populations
live in about 5,76,000 villages located in different agro-climatic conditions. The
village physicians of India are using about 4500 to 5000 species of plants for
medicinal purpose. There is however no systematic, inventory and
documentation about the TM remedies of India. The oral traditions of the
villagers use about 5000 plant for medicinal purposes. As per survey by All
India Coordinated Research Project on Ethno biology during last decade
recorded about 8000 species of forest plants used by the traditional
communities in India to treat various health problems.
12.2 Trade Value of the Traditional Medicine Knowledge:
Attempts have been made to estimate the contributions of TM industry.
For the pharmaceuticals industry, the estimated market value of plant-based
medicines in India sold in 1990 was $61 billion. That many of these would have
used TK in their product development is borne out by Farnsworth's estimate
that of the 119 plant-based compounds used in medicines worldwide, 74 per
cent had the same or related uses as the medicinal plants from which they were
derived. There are no reliable estimates of the total contribution of traditional
medicine and its knowledge to the global economy 1. TM is becoming ever
more fashionable in richer countries, a market sector which has grown at 10-
20% annually in Eurojie and North America over recent years 2. In addition,
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there are many related botanical products sold as health foods, food
supplements, herbal teas, and for various other purposes related to health and
personal care. However, accurately estimating the full value of TMK in
monetary terms is difficult, because most TMK derived products never enters
markets. Generally, the value of the TM is depending upon the demands,
availability of the rij^w-materials, methods of process of traditional medicine etc.
There is no reliable figure for the total number of medicinal plants on
Earth, and numbers and percentages for countries and regions vary greatlyS.
Estimates for the numbers of species used medicinally include: 35,000-70,000 or
53,000 worldwide; 10,000-11,250 in China; 7500 in India; 2237 in Mexico; and
2572 traditionally by North American Indians. The great majority of species of
medicinal plants are used only in Folk Medicine. Traditional Medical Systems
employ relatively few: 500-600 commonly in Traditional Chinese Medicine;
1430 in Mongolian Medicine; 1106-3600 in Tibetan Medicine; 1250-1400 in
Ayurveda; 342 in Unani; and 328 in Siddha. The number of plant species that
provide ingredients for drugs used in Western Medicine is even fewer. It was
calculated for an article published in 1991 that there were 121 drugs in current
use in the USA derived from plants, with 95 species acting as sources 4. It is
reported that ca. 25% of all prescriptions dispensed from community
pharmacies in the USA between 1959 and 1973 contained one or more
ingredients derived from higher plants. A study of the 25 best selling
pharmaceutical drugs in 1997 found that 11 of them (42%) were either
biologicals, natural products or Entities derived from natural products, with a
total value of US$ 17.5 billion. The total sales' value of drugs derived from just
one plant species was US$ 2.3 billion in 2000. The world market for herbal
remedies in 1999 was calculated to be worth US$ 19.4 billion, with Europe in
the lead (US$ 6.7 billion), followed by Asia (US$ 5.1 billion). North America
(US$ 4.0 billion), Japan (US$ 2.2 billion), and then the rest of the world (US$ 1.4
billion) (Laird and Pierce 2002). China's production of medicinal plants from
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cultivated and wild harvested sources, considered together, was calculated at
1.6 million tonnes in 1996, with a total value in terms of finished products of
US$ 3.7 billion. The reported annual imports of TM material into all countries
during the 1990s amounted to an average of 400,000 tonnes, valued at US$ 1.2
billion, showing a 100% rise between 1991 and 1997. Europe is the major
trading centre for TM globally, with imports into one European country or
another amounting to 440,000 tonnes in 1996. There are at least 2000 species of
TM marketed in Europe, these originating from over 120 countries. Only 15% of
pharmaceutical drugs is consumed in developing countries, and a large
proportion of even this small percentage is taken by relatively more affluent
people. The collectors are often herders, shepherds or other economically
marginalised sections of the population, such as landless people and women.
Between 50-100% of households in the northern part of central Nepal and about
25-50% in the middle part of the same region are involved in collecting
medicinal plants for sale, the materials being traded on to vvholesale markets in
Delhi. The money received represents 15-30% of the total income of poorer
households.
The important role TM plays in the trade, even in developed countries a
significant percentage of people have used traditional medicine at least once,
for example 50% in the USA, 75% in France and 90% in the United Kingdom. As
per 1985 survey in Indonesia found the use of traditional medicine to be twice
as great among households in the lowest income group compared to the highest
income quartile. In Malaysia, it is estimated that about US$500 million is spent
annually on traditional medicine, compared to about US$300 million on
conventional medicine. In the US, the total expenditure for complementary and
alternative medicine was estimated at US$27 billion. In Australia, an estimated
A$800 million is spent annually on complementary and alternative medicine
and in the United Kingdom, annual expenditure oji complementary and
alternative medicine has reached £500 million. The world market for herbal
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medicines, including herbal products and raw materials, has been estimated to
reached US$43 billion with an annual growth rate of between 5 and 15%.
Globally, over one and half million practitioners use traditional medicine in
preventive, promotive and curative application 5.
12.3 Trade Values of Medicinal Plants and Herbal Products.
It is estimated that 70-80% of people worldwide rely chiefly on
traditional, largely herbal, medicine to meet their primary healthcare needs. The
global demand for herbal medicine is not only large, but growing. The market
for Ayurvedic medicines is estimated to be expanding at 20% annually in India,
while the quantity of medicinal plants obtained from just one province of China
has grown by 10 times in the last 10 years. There is no accurate information
about the trade value of the Medicinal plaint and herbal products.
12.4 Production and Exports of Traditional Medicines
China and India are the two largest producers of medicinal plants and
account for 40% of global bio-diversity. However, China has established itself
as the major exporter of traditional herbal medicines in the world market, with
exports to the tune of US$ 5 billioh per year, as against US$ around 240 million
by India. India needs to organize itself well to achieve a significant share in this
growing market segment. Almost 90% of the collection of medicinal plants is
from the wild. Since 70% of plant collections involve destructive harvesting,
many plants are endangered or vulnerable and threatened. China and India are
major sources of medicinal plants. Whereas China's sales of herbal products is
in the range of Rs. 25000 crore India holds only 1% of the global market, selling
roughly Rs.500 crore worth of products. In the European Union, sales of herbal
products raised from US 1.6 billion to 3.3 billion inl998. The market is huge and
it is growing.
-658-The use of herbal medicines in the USA is less widespread because their
wider distribution through pharmacies and consumers are dependent on
advice from pharmacists. The US Govt, has also prepared a list of restricted and
prohibited herbal products, including endangered species, controlled
substances, and unsafe herbs. The global market for herbal products is
exploding. It is estimated to touch 5 trillions by 2020. Four out of ten people in
the US are using what they call 'alternative medicine', even when all the cost is
not covered by medical insurance. Sale of herbal products was in the vicinity of
21 billion US $. The increase for pharma products in Japan, in recent years has
tripled whereas for herbal products the growth in demand is over 15 fold.
Export of raw plants drugs including extracts and finished products in the
year 2002-2003 by India is as follows: 6
1. Crude drugs and herbal extracts Rs 6343 million; fished herbal products Rs 2397 million; total Rs 8740 million.
2. Currently, this amounts to only 0.3% of the global trade in the herbal market.
3. 75% of the export consists of crude drugs and extracts. 4. Recent trend of 20% increase in trade is of unfinished products and not
of Ayurvedic or Unani medicines. 5. Medicinal plants are well distributed amongst the different life forms -
trees, shrubs, lianas/climbers, herbs and grasses. A small proportion of the medicinal plants are amongst ferns, lichens and algae.
6. These plants are distributed across the different forest types/ biogeographic zones /biotic provinces of the country.
7. Conservation action has to be appropriately spread over these varied landscapes.
8. Out of the 8000 species of plants with known medicinal use in India, 1000 are under commercial exploitation.
9. The FRLHT inventory of plants in trade lists 880 species. 10. About 100 of these traded medicinal plants are exclusive to the
Himalayas. 11. The others are widespread in the country. 12. Important plants collected and traded from the WG are Coccinium
fenestratum, Garcinia indica, Hydnocarpus pentandra, Vateria indica, Myristica malabarica.
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13. The forest departments of Karnataka, Kerala and Tamilnadu with the support of FRLHT have been involved in medicinal plants conservation since 1993.
14. Maharashtra and AP have also joined in the mission since 1999. 15. A network of 55 medicinal plants conservation areas (MPCA) has been
established in these 5 states.
12.5 World Market for Herbal Products
No specific estimate is available for the global market for medicinal
plants neither individually nor even collectively. An EXIM Bank study on
Export Potential of Ayurveda and Siddha Products & Services estimates the
global herbal products market at around US $ 62 billion, in 1997, growing at a
rate of 10% -15% per annum. Another estimate puts the global herbal market at
almost US$ 120 billion a year as reported in The Week, July 2002, with the share
of Ayurveda being almost 50%, i.e. US$60 billion. Assuming that this estimate is
for the year 2002, it matches well with the EXIM Bank estimate for 1997, taking
a compounded annual growth rate of 15%. USA and Europe are the largest
markets for herbal products, accounting for nearly two-thirds of the total
demand.
-660-Table 12.1: Status of Traditional Medicine in Various Countries
Country/ Region
% using Traditional medicine
Forms of traditional medicine Recognized
Regulatory situation
Africa 70-80% African traditional forms of healing,chiropractic, osteopathy
None in most countries. Some countries such South Africa, Congo, Ethiopia, Zimbabwe etc. have included traditional medicine in legislations governing practice and insurance
USA 42% Traditional Native North American medicine. Homeopathy, cupuncture. Naturopathy, Hypnosis, Biofield therapy
Highly evolved: Regulatory controls cover licensing, scope of practice, malpractice, professional discipline, third party reimbursements and access to treatments
Canada 70% Traditional Native North American medicine. Manipulative therapy, Traditional Chinese medicine and Acupuncture, aturopatliy
Coverage by health insurance is selective and minimal. No formal recognition to traditional medicine, only Guidelines for physicians/ practitioners
France 49% Homeopatliy, acupuncture, water cure, chiropractic, osteopathy, thalasso therapy, iridology
Only licensed allopathic physicians allowed to practice medicine
Germany 40-50% Homeopathy, cupuncture, procaine injection therapy, chiropractic, ozone and oxygen therapy, herbal medicines, massage and celltherapy
Use of traditional medicine allowed only where allopathic treatment is not available or has been unsuccessful or has side effects
Italy 24% Homeopathy, acupuncture, herbal remedies, prana therapy, anthroposophic and chiropractic therapy
Only licensed allopathic physicians allowed to practice medicine. Chiropractic is recognized as a profession.
Netherlan ds
Over 50% Homoeopathy, manipulative medicine, acupuncture,naturopathy
Homeopathic and anthroposophic medicines are reimbursed by insurance
United Kingdom
12% using and 70% in favour of using
Herbal medicines, osteopathy, homeopathy, acupuncture, hypnotherapy and spiritual healing
Only licensed allopathic physicians are recognized officially.
India 70% - widely used in Imost all households
Ayurveda, Unani, Siddha and homeopathy, naturopathy, yoga
All are recognized under the Central Council of Indian Medicine Act.
Pakistan 70% Unani, Tibb, Ayurveda and Homeopathy
Integrated into the national health System
UAE Very Popular
Herbal preparations and Products
Registration criteria for herbal Medicines
Saudi Arabia
Widely used in almost all Households
Acupuncture, herbal/ nutritional/ health food products and homeopatliy
All herbal preparations require registration
China widely used in almost all households
Chinese traditional medicine
Integrated with the national health care system (equality in policies related to traditional and allopathic medicine)
Japan 70-75% Kampo medicine, acupuncture,moxibustion, massage/finger pressure, judo therapy
Only allopathic physicians can practice
Indonesia/ Malaysia
40% (70% in rural areas)
Siddha, Ayurveda, Unani, acupuncture, massage, spiritual healing
Recognized as an integral part of curative and nursing care
Korea Very popular
Oriental medicine, acupuncture, moxibustion, chiropractics
Dual system of medical treatment (oriental and allopathic). Also covered under insurance
Thailand Very popular
Herbal medicines, massage, acupressure, reflexology
Traditional practitioners and Ayurvedic doctors are integrated into the healtlicare system
Australia 48% Traditional Chinese systems, homeopathy, chiropractic, osteopathy, naturopathy
Only registered allopathic physicians are allowed to practice
Herbal products can be classified into five strategic areas as under:
(a) Herbal raw material: This is a very large market but no estimates are available.
However, based on the above estimates of various categories, the market for
raw herbal products should be about US$ 30 billion.
-662-
(b) Phifto-Pharmaceuticals: These are herbal drugs containing isolated pure active
compounds derived from medicinal plants for treatment of a large number of
diseases. In 1997, the global market for Phyto-pharmaceuticals was US$ 10
billion in 1997 and is estimated to have risen to about 13.5 billion by 2002. The
projected grov/th rate is 6.3% per annum. As per another source, the world
market of pharmaceuticals derived from medicinal plants exceeds US$ 20
billion. The sales of medicinal herbs in EU countries amounted about 3% of the
total pharmaceuticals market. Details of major consumers of herbal/Phyto
pharmaceuticals are USA, Germany and UK. Further, according to the industry,
the world market for herbal drugs/medicines is of the order of US$ 70 billion.
This may be due to the fact that there is a very large unorganized sector, which
is not reported in official data.
(c) Medicinal Botanicals / Botanical Extracts /Herbal or Dietary Supplements: These
are whole plants or plant part extracts used for maintenance of health. In 1997,
the market for Medicinal Botanicals was estimated at US $ 16.7 billion, with
Europe and North America together accounting for 63% of the world market.
The European market for herbal remedies accounts for 45% of the global
market, and stood at US $ 7.5 billion in 1997. Individually, USA is the single
largest market- US$ 4 billion, followed by Germany -US$ 3.6 billion. France is
the other most established market in Europe, with a share of 11%. The projected
annual growth is estimated at 15-20% for European markets and as high as 10-
100% for American markets. Accordingly, the market size in 2002 is estimated
to be of the order of US$ 33-35 billion 7.
-663-Table 11.2 Market for Medicinal Botanicals
Market (US$ billion)
Share (%)
Global 16.5 100 Europe 7.5 45 Germany 3.6 22 France 1.8 11 Italy 0.8 5 UK 0.5 3 Spain 0.3 2 Holland 0.1 1 Others 0.4 2 North America
4.0 25
Asia 4.0 25 Others 1.0 10
Market for Medicinal Botanicals / Botanical Extracts /Herbal or Dietary Supplements 1997
(d) Cosmeceuticals: These are cosmetic products containing biologically active
ingredients. Annual market for these products was estimated at about US$ 10.5
billion in 1997 -US$ 2.5 billion in USA and US$ 5 billion in Europe. Based on the
overall industry growth rate, the market size in 2002 is estimated to have been
around US$ 22-25 billion.
(e) Nutraceuticals: These are foods containing supplements from natural
botanical sources that deliver a specific health benefit, including prevention and
treatment of diseases. These are gaining popularity in USA and West Europe.
The world Nutraceuticals market was approx. US$ 5.5 billion in 1997, of which
the market share of Europe was US$ 1.05 billion and that of USA was US$ 3.0
billion. Assuming a growth rate of 15% per annum, the nutraceuticals market in
2002 is estimated at about US$ 10 billion.
12.6 India's Contribution to the Herbal Medicines Trade
The domestic market for ayurvedic, herbal and plant based products is
estimated to be around Rs. 3000 crores, growing at 15-20% p.a. The share of
-664-Ethical formulations is only 20% of the total market, th^ balance 80% being
accounted for by OTC products. The sales of crude herbal drugs and extracts
are of the order of Rs. 350-400 crores. These crude drugs and extracts are used
by Pharma industry for production of OTC products, ethical formulations, as
well as traditional and home remedies. As per an earlier EXIM Bank study, the
sales of medicinal plants in India in 1996-97 were Rs. 300 crores including the
requirements of traditional practitioners, vaidyas, and home remedies, when
the total herbal/ayurvedic market was Rs. 2300 crores. Assuming the same
ratio, it is estimated that the sales of medicinal plants in 2002 were around Rs.
400 crores in India. There are estimated to be over 7800 manufacturing units in
India, the major players being Kottakal Arya Vaidyashala, Dabur, Himalaya,
Zandu and Baidyanath. It is interesting to note that most of these leading
producers are not the leading exporters in India, because a significant portion of
exports of their products takes place through informal channels, such as
users/patients carrying these as part of baggage etc. For example, Kottakal
Arya Vaidyashala, one of the oldest institutions of Ayurveda in the world has
zero exports officially.
India, at present, exports herbal material and medicines to the tune of Rs.
1210 crores annually during 2001-02, comprising Rs. 593 crores from saps and
extracts, Rs. 370 crores from plants and plant parts, and Rs. 235 crores from
Ayurvedic and Unani medicines. USA is the single largest export destination
for Indian medicinal plants or products, accounting for almost 50% of total
exports. India's exports to individual EU member countries are small, but as a
region the EU represents a sizeable market for India's exports in the sector 8.
-665-Table 12.3:
SI No
Particulars 1998-99 1999-00 2000-01 2001-02 Major destinations
1 Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, fresh or dried, whether or not cut, crushed or powdered
268.74 191.44 357.45 370.94 USA (177); Japan (26)
2 Vegetable saps and extracts; peptic substances, agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products
826.79 921.53 698.99 593.18 USA (299)
3 Ayurvedic and Unani Medicines
34.76 36.23 96.53 92.26 USA (9.1), Nepal (7.2), Russia (5.7)
4 Homeopathic Medicines 0.37 0.67 2.19 2.03 Sri Lanka,
5 Ayurvedic and Unani Medicines for retail sales
98.84 108.79 124.97 147.52 USA (20.6, Russia (17.8), Nepal (13.1)
6 Homeopathic Medicines for retail sales
1.33 3.19 8.96 3.73 Ivory Coast, USA
TOTAL 1230.8 1261.9 1289.1 • 1209.7
Growth 2.5% 2.2% • -6.2%
India's exports of medicinal plants and herbal products
The above export data has been presented in three categories, according to the extent of value addition:
(i) Raiv form (plants and plant parts): The important medicinal plant/herbal product exported from India is Isabgol (psyllium husk and seeds) amounting to about Rs. 242.44 crores.
(ii) Saps and extracts : herbal juice, and all vegetable saps.
(iii) Preparations (medicines): These are mainly in the form of Ayurvedic and unani medicines. Within this category, the preparations for retail sales are substantially higher than those for industrial end-use.
-666-Around 70% of India's medicinal plants are found in tropical areas
mostly in the various forest types spread across the Western and Eastern ghats,
the Vindhyas, Chotta Nagpur plateau, Aravalis & Himalayas. Although less
than 30% of the medicinal plants are found in the temperate and alpine areas
and higher altitudes they include species of high medicinal value. One third of
these are trees, an equal portion is herbs and the remaining one third are
shrubs, grasses and climbers. A very small proportion'of the medicinal plants
are lower plants like lichens, ferns algae, etc. Majority of the medicinal plant are
higher flowering plants Over 800 species of medicinal plants are used in
production of traditional medicines by industry. Of these about 90% are
collected from the wild. Less than 20 species of plants are under commercial
cultivation. Over 70% of the plant collections involve destructive harvesting
because of the use of parts like roots, bark, wood, stem and the whole plant in
case of herbs. However, of more than 400 plant species used for production of
medicines by Indian Industry, less than 20 are currently under the cultivation in
the country. In India, it is estimated that the collection and processing of
medicinal plants contributes to at least 35 million workdays of employment per
annum 9.
Table 12.4:
Year Total (in Crores)
To Russia (in Crores)
To Germany (in Crores)
To USA (in Crores)
To Australia (in Crores)
1998-99 130 9 2.7 14.6 .85 1999-2000
145 16 2.7 15 3.5
2000-01 220 26 21.7 21.2 8.2 2001-02 240 23.5 » 29.7 *
Exports of Ayurveda & Unani medicines from India
-667-12.7 Prevailing law in respect of the Traditional Medicine Trade
The Council of Trade-Related Aspects of Intellectual Property Rights
TRIPS constitutes an important forum for the discussion of IPRs, biodiversity
and the protection of TK, particularly in the context of the review of article 27.3
(b). The relationship between the TRIPS Agreement and the CBD has been
addressed by the Secretariat of the WTO and this relationship, including the
protection of TK. It has proposed that the provision be harmonized with the
CBD, the objective of which is "to protect the rights of indigenous people and
local farming communities and to protect and promote biological diversity".
The proposal of the African Group demanded that such harmonization also be
made with regard to the FAO International Undertaking on Plant Genetic
Resources, which "seeks to protect and promote Farmers' Rights and to
conserve plant genetic resources". The Group has argued that; "by mandating
or enabling the patenting of seeds, plants and genetic and biological materials,
Article 27.3(b) is likely to lead to appropriation of the knowledge and resources
of indigenous and local communities" 10. The Relationship between the
Convention on Biological Diversity and the Agreement on Trade-Related
Aspects of Intellectual Property Rights are focused on Article 27.3(b) 11. The
protection of intellectual property, with an ethical and economic content,
applicable to the traditional knowledge of local and indigenous communities,
together with recognition of the need to define the rights of collective holders
12. Despite the aforementioned difficulties and the reluctance of some
developed countries to treat TK in the framework of the TRIPS Agreement,
paragraph 19 of the Doha Ministerial Declaration specifically addressed the
need to assess the '̂elations between TRIPS, CBD and TK. Work on paragraph
19 has been limited and unproductive so far. Several members have proposed
to possible introduction into the TRIPS Agreement a requirement to disclose the
origin of biological materials and the associated knowledge claimed in patent
applications. Such an obligation should include, according to some proposals.
-668-not only information about origin, but also about compliance with national
access laws as well as, effective fair and equitable benefit sharing under the
relevant national regimes 13.
12.8 Market Scenario of Medicinal Plants
Domestic Scenario:
Medicinal plants market in the India is today un-organised due to
several problems. Medicinal plants are a living resource, exhaustible if
overused and sustainable if used with care and wisdom. At present 95%
collection of medicinal plants is from the wild. Marketability of products will be
a crucial factor in determining the failure or success. The market outlets can be
for local use and for export. As for local use some products could reach the
consumer directly while others have to be either further processed or used as
secondary components in other industrial products. A clear understanding of
both the supply side issues and the factors driving the demand and size of the
medicinal plants market is a vital step towards planning for both the
conservation and sustainable use of the habitats of these plants as well as, for
ensuring continued availability of the basic ingredients used to address the
health needs of the majority of the world's population.
Brief Global Scenario:
According to the report of the World Health Organisation, a large
population of the world relies on the traditional systems of medicines, largely
plant based to meet their primary health care needs. India at present exports
herbal materials and medicines to the tune of Rs.446 crores only while it has
been estimated that this can be raised to Rs.3000 crores by 2005. The Chinese
export based on plants including raw drugs, therapeutics and other is estimated
to be
around Rs.18,000- Rs.22,000 crores. In view of the innate Indian strengths which
inter alia include diverse eco-systems, technical and farming capacity and a
-669-strong manufacturing sector, the medicinal plants area can become a huge
export opportunity after fulfilling domestic needs.
A part from requirement of medicinal plants for internal consumption,
India exports crude drugs mainly to developed countries, viz. USA, Germany,
France, Switzerland, UK and Japan, who share between them 75 to 80 percent
of the total export of crude drugs from India. The principal herbal drugs that
have been finding a good market in foreign countries are like. Aconite, Aloe,
Belladona, Acorus, Cinchona, Cassia tora, Dioscorea, Digitalis, Ephedra,
Plantago (Isabgol), Cassia (Senna) etc, 14.
12.9 Drawbacks to Traditional Medicine Trade
The major causes for drawbacks to the Traditional medicine'trade are:
(i) Threatened by various environmental and socio-economic problems, (ii) Weakening and vanishing of traditional and indigenous knowledge, (iii) Inadequate funding, a lack of government prioritisation, and insufficient
information sharing and coordination among stakeholders, (iv) Inequitable trade practices allow only a margin of the profit to trickle down
to the collectors and harvests, (v) Highly developed illegal trading networks.
All these drawbacks are removed, it is possible to improve the trade and
there must clear state trade policy required for the traditional medicines trade
by all the nations.
On basis of the above available information, 15 there is a growing trade
of traditional medicine as well as medicinal plants., If there is a public
awareness about the usefulness of the traditional medicines as well as other
kind of herbal medicines, it is possible to increase the tracie activities relating to
the alternative medicines with the state policies. China and India are the major
exporters of the traditional medicines, medicinal plants and raw medicinal
sources to the various countries, but it is sad to say that, Indians unable to
increase the quantum of export of traditional medicines as well as medicinal
-670-plants even though the Indians have well experience with the alternative
medicines. If there is a legal protection and state policy for the sustainable
development of the local medicinal system, it is possible to increase the export
of alternative medicines. Because of the increased export of traditional
medicines and medicine plaints, the state will earn more revenue and
ultimately the lifestyle of the traditional community will improve. The states
are also required to maintain the proper details about the trade activities in
respect of alternative medicines.
However, on the available information about the trade activities of the
traditional medicine products, it is increasing gradually. Therefore, there are
good number of consumers in the world wide and giving the attention and
making investment of money, effort etc, on the commercial activities of the
traditional medicine, will assured good returns of investment to the investors,
traditional medicine practitioners, as well as to the nations. Unfortunately,
there is no international attention so far effectively for the development of the
trade of traditional medicine and no legal framework about the commercial
activities of the traditional medicine knowledge.
If there is a legal protection to the traditional medicine practice and legal
framework to the international trade and commercial activities, it is going to
succeed and there are multiple benefits by providing attention on the activities
of the traditional medicine knowledge. Every nation as well as, the
international organizations are required to create legal framework for the
protection of traditional medicines as well as, the commercial activities of the
traditional medicine for the benefits of interest of traditional community as well
as, to extend the healthcare of world community.
* * *
-671-Chapter Notes:
1. Farnsworth and Soejarto 1991 report; Pei Shengji 2001. 2. Ten Kate and Laird -Report 1999. 3. As per Table 2 of Schippmann et al. 2002. 4. As per Farnsworth and Soejarto 1991; Schippmann et al. 2002. 5. http://apps.who.int/medicinedocs/en/d/[h2944e/12.html#Th2944e.l2-
visited on 5/7/2008. 6. Medicinal plants - Economy and Trends by Darshan Shankar. 7. Source from Heritage Healing Vol. 1, No. 7, Sep 1999.. 8. Source from DGCIS data. 9. Madhav Karki. 2002. Medicinal and Aromatic Plants Programme in Asia.
IDRC/SARO. New Delhi, India. 10. A summary of such proposals in Correa, C- Traditional knowledge and
intellectual property: Issues and options surrounding the protection of traditional knowledge, QUNO, Geneva, 2001.
11. WTO submissions, "Environment and TRIPS" (WT/CTE/W/8 and W/8/Corr.l) and (WT/CTE/W/t25).
12. Protection of Biodiversity and Traditional Knowledge - The Indian Experience- Submission by India to the WTO, WT/CTE/W/156, IP/C/W/198,14 July 2000. - See lP/C/W/228.
13. The analysis is partially based on Correa, C, Establishing a Disclosure of Origin Obligation in the TRIPS Agreement, Occasional Paper No. 12, QUNO, Geneva, 2003. (sources from Einarsson, P. (2003), "Report on WIPO GRTKF5", GRAIN (mimeo).
14. Source: Planning Commission - Task Force Report, 2000. 15. 'Conservation, Cultivation and Trade of Medicinal Herbs and Spices in
Pakistan' By Dr. Muhammad Aslam Commissioner (Minor Crops) Project Director (IMHSC), 2002.
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