MSc

The present investigation on analysis of market economy of medicinal plants in Kerala was undertaken during the year 1999-2001. The study aimed at identifying the major medicinal plants (in quantity and value terms) of pharmaceutical use in Kerala, the form in which it is demanded and the source and the extent of supply.
The study is based on a sample of seven pharmacies, accounting for 68 percent of the total turnover of the industry. There are around 30 major wholesale traders of medicinal plants in the state and bulk of the business is handled by five traders and all of them in Thrissur district. From them, the information on price of important species, sources, plant part traded and other relevant details were gathered.
Exports of ayurvedic and unani herbs have registered a steady increase, especially after 1996 and are reported to the tune of 9585.70 tonnes in 1999-2000. The major destinations of export of ayurvedic and unani herbs are Chinese Taipei (28.10%) Japan (26.38%), and Pakistan (19.04%). The major share of foreign exchange earnings from export of ayurvedic and unani plants is contributed by Pakistan (20.15%) followed by Japan (16.8%) and Chinese Taipei (13.6%).
Nepal and Pakistan are the major countries from where ayurvedic and unani herbs are imported to India. They together account for 72.83 per cent of total imports of the country. The net balance of trade shows a fluctuating trend. It was declined from Rs.3247.27 lakhs in 1998-’99 to Rs.1201.24 lakhs in 1999-’00 and from 926.26 lakhs in 1993-94 to 671.82 lakhs in 1994-95.
The major ten species of medicinal plants selected based on the magnitude of quantity procured per annum by the seven sample pharmacies are arranged in the descending order of importance. 1) Sida Spp. 2) Tinospora cordifolia. 3) Terminalia chebula. 4) Withania somnifera. 5) Adhatoda sp. 6) Cedrus deodera. 7) Cyperus rotundus. 8) Woodfordia fruiticosa. 9) Boerhaavia ditffusa. 10) Aegle marmelos. The annual compound growth in the consumption of medicinal plants varies from 4.19 per cent in Boerhaavia diffusa to 9.31 per cent in Aegle marmelos.
The coefficient of variation in the price of major medicinal plants ranges from 8.62 per cent in Boerhaavia diffusa to 29.89 percent in the case of Terminalia chibula. The price elasticity of demand of all the medicinal plants studied were positive, varying from 0.33 per cent in the case of Boerhaavia diffusa to 3.31 in the case of Terminalia chibula.
The ratio estimates of value of the medicinal plants traded indicate that Sida is the medicinal plant procured with highest total value followed by Withania. Aegle occupied the lowest both in respect of quantity and value.
Estimates of scarcity ratio for Sida (2.79), Aegle (0.49) and Boerhaavia (6.82) were positive, which highlighted the relative scarcity of these plants.
The major medicinal plants selected based on the unit prices procured by sample pharmacies are arranged in the descending order, 1. Aconitum heterophylum. 2. Lodolcea seychellarum 3. Crocus sativus. 4. Anacyclus pyrethrum. 5. Holstemma ada-kodien. 6. Kaempferia rotunda. 7. Piper longum. 8. Commiphora mukul. 9. Cinnamomum camphora. 10. Trichosanthes cucumerina.
In the marketing scene, among the major channels identified, Tribals – Commission Agent – Trader/Dealer – Ayurvedic manufacturing units is found to be the main marketing channel through which major portion of the medicinal plants are marketed in the state (60-65%).
The market for medicinal plant in the state is controlled by a few traders and pharmacies. The inadequate quality control mechanism both at product level and input level of ayurvedic industry is one of the major problems. This study has listed out the important constraints by the industry. However more concerted study is recommended to further elaborate the issues, among other recommendations.