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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.

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(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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