PM Vriksh Ayush Yojana to boost international herbal trade

The Parliamentary Committee of Rajya Sabha has recently asked the National Medicinal Plant Board NMPB to assess more possibilities of herbal international trade so that India may trespass China in this area. The Committee notes that while India is second to China in the herbal trade, China has six times more business on herbs/herbal products as compared to India. The Parliamentary Committee, in its report revealing the above, said that PM Vriksh Ayush is in process of making routes for Indian farmers for cultivation and marketing of medicinal plants.

A central scheme, Pradhan Mantri VRIKSH AYUSH Yojana, is being formulated to stimulate the economic activity in rural areas and generate employment – both at non-skilled and skilled levels – besides adding to the GDP of the country. About 1 lakh farmers will become self-reliant with the help of this programme which will also enhance their income. Doubling the farmers’ income would be assessed using Baitarani, Odisha model of livelihood assessment, to know the exact impact of the intervention.

While detailing the Parliamentary Committee, Ayush Ministry documents that the availability of quality raw material will help in increasing the market share of AYUSH medicines and products by three times in the next five years from the current USD 3 billion to USD 10 billion, and it will also reduce the burden on the enhancement in cultivated raw material availability and would reduce pressure on natural wild resources and thus increase their conservation status for environmental gains.

The increasing export demand is also to be considered when it comes to medicinal plants. The major increase has been recorded in export value which has increased from Rs 345.80 crore in 2005-06 to Rs 3,211 crore in 2014-15, registering a nine-fold increase during one decade (Goraya & Ved, 2017). Recently also, there is an increased demand for the export of key ingredients like Ashvagandha, Tulsi, Giloi, Kalmegh, and others, which are mainly used in herbal products to enhance immunity. Recent trends (post-COVID-19) indicate 30-35% growth of traditional immunity boosters. This increasing demand would require immediate backup action so that the sustainable supply of raw material is ensured for the AYUSH industries wherein 90% are MSMEs. At the same time, cultivation and related activities of medicinal plants will create new avenues of employment and livelihood which would stimulate the economy in the rural areas.

The committee appreciates that the Ayush Ministry, recognizing the big opportunity in international trade, has established the Forum for Assessment of AYUSH Market Size (FAAMS) at NMPB and through the ‘Invest India’ team. The committee also recommends the ministry to make all-out efforts to establish India as the largest exporter of herbal products beating China and for this, a road map may be drawn. To achieve this, the committee feels that both quantity and quality of raw materials and finished products need to be focused upon.