Cultivating a Healthy Enterprise

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    350Cult ivat in

    Enterpris

    Developing a sus

    Utt aranchal Ind

    D E V E L O P M E N T P O L I C Y A N

    Supp ly chain analysis provides a powerful t ool in design ingactions that enhance sustainable economic development. Intheir commitment to cultivate healthy enterprise KIT, IAMRand CSD developed an appro ach w here stakeholders interact

    to construct a sustainable and equitable chain. A case studywas conducted on medicinal plant s in Ut taranchal, India.Medicinal plant s are a fascinati ng g lobal ent erprise; they playa unique rol e in health care, cult ure, biodiversity and ruraleconomies. Worldw ide the demand fo r medicinal plants isgrowing. The mountains of Uttaranchal have the potentialto become a major suppli er. The cent ral questio n is how t hisopportunity can be transformed into reality. This bulletin

    provides some answers and insight s in th e lessons learned.It summarises the findings of f ield research carried o ut in t heChamoli area. Recommendations are made regarding policyreforms, stakeholder dialogue, the promotion of cultivationand removal of market uncert ainties. The authors believe thata sustainable medicinal plant chain can be developed, creatinglivelihood oppor tunit ies for people in remote and marginal

    areas. Similar initiatives, covering other regions and supplychains, can f louri sh w ith t he lessons learned f rom th isinspiring case.

    Koninklijk Instituut voor de Tropen

    Royal Tropical Instit ute

    PO Box 95001

    1090 HA Amsterdam

    The Netherland s

    Telephone+31 0(20) 5688 272

    Telefax+31 0(20) 5688 286

    E-mailpub lishers@kit .nl

    Websitehttp://www.kit.nl

    ROYALTR

    OPICALINSTITUTE

    CULTIVATING

    A

    HEALTHYENTERPRISE

    B U L L E T I N

    SD

    India-omslag 17-04-2003 13:02 Pagina 1

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    CULTIVATING A HEALTHY ENTERPRISE

    Developing a sustainabl e medicinal plant chain in Utt aranchal India

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    Cultivating a Healthy Enterprise

    Developing a sustainable medicinal plant chain

    in Ut taranchal India

    Bulletin 350

    John Bel t

    Ard Lengkeek

    Je r oen van de r Zant

    In collaboration with:

    Ins t i tute of Appl ied Manpower Resear ch

    New Delhi

    Dr. Anil K. Yad av

    Dr. Ani l Kuma r Dimr i

    Centre for Sustainable Developm ent

    Dehradun

    Dr. Ghayur Alam

    SD

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    Bulletins of the Royal Tropical Institute

    The Bulletin Series of the Royal TropicalInst i tu te (KIT) dea ls wi th curren t themes in

    international development co-operation.

    KIT Bulletins offers a multi-disciplinary

    forum for sc ien t is ts , pol icy maker s ,

    manager s and deve lopment advisors in

    agr icu l ture , na tura l resource managem ent ,

    health, culture , history and anthropology.

    These f ie lds re f lec t the broad scope of the

    Royal Tropical Insti tut e activities.

    Informat ion

    Royal Tropical Inst i tuteKIT Rura l Change

    Mauri tskade 63

    1092 AD Amsterdam,

    The Nether lands

    Telephone: +31 (0)20 5688 498

    Telefax: +31 (0)20 5688 285

    E-ma il: Comm unica [email protected]

    Website: www.kit.nl

    Royal Tropical Insti tut e (KIT)

    KIT Publ ishers

    P.O. Box 95001

    1090 HA Amsterdam ,

    The Nether lands

    Telephone: +31 (0)20 5688 272

    Telefax: +31 (0)20 5688 286

    E-ma il: publish er [email protected]

    Website: www.kit .nl/publisher s

    2003 KIT Publisher s, Amst er dam ,

    The Nether lands

    Editing: Patricia Alam

    Cover and graphic design:

    Graf isch Ontwerpbur eau Agaa tsz BNO,

    Meppel , The Nether lands

    Prin t ing : Meeste r & De Jonge , Lochem,

    The Nether lands

    Photography: Je r oen van der Zant

    Car tography: Armand Ha ye

    ISB N: 90 6832 839 5

    ISSN : 0922-7911

    NUR: 600/940

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    Table of contents

    Abbreviat ions 6

    Weights and m easures 6

    Acknow ledgm ents 7

    Forew ord 9

    1. Int roduct ion 11

    1.1 BACKGROUND 11

    1.2 OBJECTIVES OF THE STUDY 12

    1.3 M ETHODOLOGY 13

    1.4 STRUCTURE OF THE REPORT 14

    1.5 PROJECTED AUDIENCE, RISKS AND FOLLOW-UP 14

    2. M edicinal plants: w hy are t hey im port ant ? 17

    2.1 INTRODUCTION 17

    2.2 TRADITIONAL MEDICINE AND THE PHARMACEUTICAL INDUSTRY 18

    2.3 INCOME AND EMPLOYM ENT 19

    2.4 THE CONSERVATION OF BIODIVERSITY 20

    3. M edicinal plants in Ut taranchal 23

    3.1 INTRODUCTION 23

    3.2 GOVERNMENT POLICIES TO PROM OTE M EDICINAL PLANTS 24

    3.3 INSTITUTIONS 26

    3.4 THE MEDICINAL PLANT CHAIN: COLLECTION, TRADE AND CONSUMPTION 28

    4. M edicinal plants in Chamoli main research findings 39

    4.1 CULTIVATION 39

    4.2 THE FAILURE OF CULTIVATION 40

    4.3 HAPPRC: A SUCCESS STORY 42

    5. Conclusions and policy recom mendat ions 45

    5.1 GENERAL CONCLUSIONS 45

    5.2 CULTIVATION 46

    A) LARGE SCALE COLLECTION 46

    B) LEGAL RESTRICTIONS 46

    C) M ARKET UNCERTAINTIES 47

    D) LACK OF TECHNICAL SUPPORT 48

    Literat ure 51

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    Abbreviations

    CBD Convent ion of Biolog ica l Diver sity

    CI MAP Ce nt r al In st it ut e of M ed ic in al an d Ar om a tic P la nt s

    CI T ES Con v en t ion on In t er n a tion a l Tr a d e in E nd a ng e r ed Sp e cie s of Wild

    Fauna and Flora

    CSD Centr e for Sus ta inable Developm ent

    D GI S D ir e ct or a te -G en er a l f or I nt er na tion al Coop er a tion

    EU Eur opean Union

    FAO F ood a nd Ag r ic ult ur e Or g an is at ion of t he U nit ed N at ion s

    FRI For es t Resear ch Ins t itu te

    F R LH T F ou n da t ion f or R e v it a lis a tion of Loc a l H e a lt h Tr a d it ion s

    GoI Gover nm ent of Ind ia

    GoU Gover nm ent of Ut ta r anchal

    H A PP R C H i gh A lt it u de P la n t P hy siolog y R es e ar c h Ce n tr e

    HRDI Her ba l Research and Development Ins t itu te

    IAMR Ins t i tute of Appl ied Manpower Resear ch

    I CF RE I nd ia n Cou nc il of For e st r y R es ea r ch an d E du ca tion

    IDRC Inter nat ional Development Resear ch CentreIFAD Inter nat ional Fund for Agr icul tural Development

    IR Indian Rupee

    ISMH In dia n Sy st em s of Me dic in e a nd Hom eop at hy

    K IT R oy al Tr op ic al In st it ut e (K on in klij k I ns tit uu t v oor d e Tr op en )

    M AP PA M ed ic in al an d Ar om a tic P la nt s Pr og r am m e in As ia

    N CD C N at ion al Co-op er a tiv e D ev elop m en t Cor p or a tion (N CD C)

    NGO Non-Gover nm enta l Or gan isa t ion

    SHER The Society for Him alayan Environmen tal Resear ch

    UNDP United Nat ions Developm ent Pr ogr am m e

    WH O Wor ld H ealth Or ganisa t ion

    WII Wildlife Ins t itute of Ind ia

    Weights and measures

    1 lakh = 100,000 IR

    1 c rone = 10,000,000 IR

    100 I R = 2.08 U sd (N ov em b er 2002)

    1 Usd = 48 IR (Novem ber 2002)

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    Acknowledgements

    The authors wish to express the ir grat i tude to ever ybody who par t icipated in

    this s tudy, by pr oviding informat ion, shar ing the ir expe r t ise, views and opinions

    on a wide ran ge of issues r elated t o the collection, cultivat ion, util isation and

    trad e of medicinal plants in the State of Ut tara nchal , India.

    We wish to thank Dr . Ramac handr an, Director of the In s t i tute of Applied

    Manpower Resear ch ( IAMR), Planning Commiss ion, the Governm ent of India,

    New Delhi . I t was Dr . H. Ramachand ran w ho recomm ended a c lose look at the

    role of medicinal plants in the d ivers i f icat ion of Indian agr icul ture. He

    introduced us to key r esource pe ople in New Delhi and pointed to re levant

    l iter atur e. IAMR s taf f m emb ers Dr . Ani l K. Yadav, Chief of the Social Sector

    Studies Uni t , and Dr . Ani l Kumar Dimr i , Joint Chief , were involved in the

    prep ara t ion and execut ion of the f ieldwork.

    We would also like to thank D r . Ghayur Alam, Director of the Centre for

    Sus tainable Dev elopme nt (CSD), Dehr adun. Dr . Alam intr oduced us t o relevant

    organisat ions and people in Dehrad un, and par t icipated in the f ieldwork. Hewas also ins t ru men tal in the wri t ing process . Ms Patr icia Alam p rovided

    ass is tance by edi t ing the draf t text of the rep or t .

    We r eceived valuable contr ibut ions f rom var ious key inform ants , belonging to a

    wide range of s takeholders , including the Central Governm ent , State

    Governm ent , resea rch ins t i tut ions , co-operat ives , Non-Governm ental

    Organisat ions , the pha rm aceut ical indus try and donor or ganisat ions . We would

    especial ly l ike to thank :

    Dr. D.N. Tewa ri, Memb er of the P lanning Comm ission, New De lhi;

    Dr . Sanjeev Chopra , Secretar y of Rural Developme nt and H or t icul ture,

    Government o f Ut ta rancha l ;

    Dr . J .S . Rawat , Director , Her bal Resear ch and D evelopment Ins t i tute ,

    Gopeshwar ;

    Dr . Vijay Pr asad Bhat t , Scient is t , Herba l Research and Development Ins t i tute ,

    Gopeshwar ;

    Dr . R.K. Maikhur i , Scient is t , G.B. Pant Ins t i tute of Hima layan Envir onment and

    Development , Sr inagar ;

    Prof . A.R. Naut iyal , High Alt i tude Plant Ph ys iology Resear ch Centr e, Garhw al

    Univers i ty , Sr inagar ;

    Dr . M.C. Naut iyal , High Alt itude Plant Phys iology Resear ch Centr e, Garhw al

    Univers i ty , Sr inagar ;

    ACKNOW

    LEDGEM

    ENTS

    7

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    Dr. V.P. Uniyal, Scientist , Wildlife I nstitut e of I ndia, Deh ra dun;

    Dr . Param ij t Singh, Publ icity an d Liaison Off icer , Fores t Resear ch In s t i tute ,Dehradun;

    Dr. P.P. Bhojvaid, Head , Non-wood Fores t Pr oducts D ivision, Forest R esea rc h

    Ins t i tute , Dehradun;

    Dr. D.C. Chaudh ar i, Scientist , Non-wood Fores t Pr oducts D ivision, Forest

    Research Ins t itu te , Dehradun;

    Dr . Shur t i Sharm a, Non-wood Fores t Products Divis ion, Fores t Resear ch

    Ins t i tute , Dehradun;

    Dr . Kiran Badoni , Society for H imalayan Environm ental Resear ch, Dehradun ;

    Dr . Arun Badoni , Society for Him alayan Environme ntal Resear ch, Dehradun ;

    Mr. A.K. Shar ma , re gional coord inator, Rur al Litigation and Entit lem ent

    Kendra , Dehradun;

    Mr. Lukhbeer Kum ar , Secr etar y Baishaj Sangh Co-operat ive, Gopeshwar ;

    Dr . R.M. Dobr iyal , Senior Development Scient is t , Dabur Resear ch Foundat ion,

    New De lhi;

    Dr . N.B. Br indavan am, technical manager , Dabur Ayurveda Rese arc h

    Founda tion, New De lhi;

    Dr . Madhav Kar ki , Regional Program me Coordinator , Medicinal and Aromatic

    Plants Program me in Asia, Inter nat ional Development Resear ch Centre, New

    Delhi;

    Mr. Sushi l Mit tal, Hima chal Dr ugs Co., Dehr adun;

    Mr. Adi tya Arya, Arya Vas tu Bh andar Co. , Dehr adun;

    Dr . Mohan Singh, Ayurvedic Phy s ician, Joshimath ;

    Dr. Har ish Singh, Scientist , Botanical Survey of Ind ia, Kolkata;

    Dr . Ranj it Mahar aj Bhar at , Ayurv edic doctor, Badr inath.

    In addi t ion, numerous far me rs , t rader s , ret ai lers , and t ra di t ional healers f r om

    the Chamoli area pr ovided valuable ass is tance by sha r ing their opinions and

    exper iences wi th medicinal plants . Through the m w e gained valuable ins ight

    into the me dicinal plant cha in.

    We kindly acknowledge the sup por t of the Du tch Minis t ry of Foreign Affai rs ,

    Directora te-Gener al for Inter nat ional Cooper at ion (DGIS) for providing the

    necessary f inancial resources .

    CULTIVATING

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    Foreword

    At the na t ional leve l, India produces m ore than enough food to feed i ts p eople ,

    but r egional dispar i t ies leave a s ignif icant segm ent of th e popula t ion without

    access to adequate nutr i t ion and b as ic services . Off ic ia l da ta shows a r educt ion

    in the numb er of r ura l people l iving be low the pover t y l ine , however ther e a re

    pockets where pover ty is concentra ted, par t icular ly in rem ote rura l a reas

    where the leve l of development is low. Labour m igra t ion f rom t hese pockets to

    economical ly pr oduct ive a reas is an incr eas ing phenomenon.

    Susta inable economic development means m ore than enhancing capi ta l and

    labour f low. I t i s about people dec iding themselves h ow to use the ir asse ts and

    resources , for which mar kets they wish to produce and which services they

    need to achieve the ir goals . Enhancing p eople s income is enhancing peoples

    autonomous development . Information about mar kets , the ir long-term

    perspec t ives and r isks de termines to a la rge extent when and how pr oducers

    respond to oppor tuni t ies . A conducive environment in te rm s of legis la t ion,

    taxa t ion and commun ica t ion is needed, to c rea te a dyn amic exchange of goods

    and capi ta l be tween producer s and t rader s . This warrant s a new role for thegovernm ent tha t s t imula tes ra ther than r egula tes , and provides services tha t

    meet the dem ands of the product ive and comm ercia l s takeholders .

    This s tudy was inspired by the r esul ts of ear l ie r s t udies conducted by IAMR

    and KIT, on the e ffec ts of an ongoing pr iva t isa t ion of the agr icul tura l sec tor on

    rur a l l ive l ihoods . These s tu dies indica ted tha t divers i f ica t ion of agr iculture is a

    prer equis i te for an y adjus tm ent of the subs idy pol icy and avoidance of mass ive

    c ivil opposit ion. Moreover , it was concluded th a t pr iva te entr epreneu rs inves t

    in rur a l a reas m ainly to develop t rade in low volum e-high v alue products .

    Mass ive publ ic inves tm ent thr ough subsidies and r egula t ion of food gra in

    pr ices favours the agr icultur a l ly developed s ta tes . These indirec t income

    subsidies mainly benef i t successful fa rm ers and contr ibute to inequal it ies

    be tween households , because the more you produce , the more you ar e

    subsidised. Yet , sub-sec tors su ch as hor t icul ture and f lor icul ture thr ive thanks

    to private initiatives, but again, such pr ivate initiatives are limited to accessible

    areas with wel l -developed infras t ruc tur e . A numb er of ques t ions a r ise f r om

    these observa t ions . What about the mil lions of people in rem ote and m argina l

    areas? Wil l they only benef i t f r om publ ic and pr iva te inves tment in agr iculture

    by m oving to pockets of economic development and working as wage-

    labourer s? Will the ir f inancia l rem it tances contr ibute to s ignif icant

    development in the ir a reas of or igin?

    FOREW

    ORD

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    In 2002, a team composed of exper t s f r om IAMR, KIT and CSD conducted a

    s tudy of the potent ia l of pr oduct ion and t r ade in medic ina l and aromatic plantsin a rem ote and difficult access ible hill region. People in India have long known

    the benef i ts of medic ina l and aromatic plants . However, the demand for these

    pr oducts is developing quickly because of acceler ated local, national and

    interna t ional inte res t , the la t te r notably f rom western pharm aceut ica l

    industr ies . Medic ina l and ar omatic plants a re of ten col lec ted f r om natur a l

    sources by t he poor. Because demand exceeds supply, many spec ies a re

    threa t ened with ext inc t ion. Conserva t ion of the spec ies by banning the ir

    collection direct ly affects th e income of people who heavily depend on it . Other

    problems dev elop form the par a l le l , i llega l market such as low pr ices and high

    risk s for the collectors. Can sustainable exp loitation of these species be

    promoted, thus preser ving biodivers i ty and enhancing ru ra l income?

    In this bul le t in the authors intr oduce the issue of sus ta inable economic cha in

    development by pr esent ing a case s tudy conducted in the s ta te of Utta ranchal .

    Opportu ni t ies , perspec t ives and constra ints a r e ana lysed in an integra ted

    manner , taking into account the var ious s takeholders and the ir views, as wel l as

    the l inks tha t bind or discard t hem. A pic ture emer ges of a cha in tha t is based

    on a cer t a in measur e of information shar ing, consensus , and l inkages . A

    smoother cha in th a t enhances benef i ts for those who inves t t ime, knowledge ,

    capi ta l and other scar ce resources in a reas so fa r exc luded f rom m ains tream

    economic development could be pr omoted.

    This bul le t in serves a wide audience and has been wr i t ten to inspire th ose who

    are ac t ive ly interes ted in the su s ta inable economic development of marg ina l

    areas . The inform ation is of s ignif icance for other s ta tes of Ind ia , as wel l asother developing countr ies with s imilar potent ia l. The bul le t in provides

    information about the choices and issues a t s take , as wel l as the development

    process ahead. We hope tha t this bul le t in wil l inspire fur ther s tudies with the

    a im of enhancing em ployment and ear ning potent ia l of people with l imited

    choice.

    Dr. Bar t de Steenhuij sen Pite r s Dr. H . Ram achandr an

    Am ster dam New Delh i

    CULTIVATING

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    1 Introduction

    1.1 Background

    This s tudy has i ts or igin in a par tner ship tha t has exis ted be tween the Royal

    Tropical Inst itute (KIT), the Neth er lands, and the Inst itute of Applied

    Manpower Resear ch (IAMR), India, since 2000. When the Plann ing Commission

    of the Governmen t of India fe l t a need to review the impact of ongoing

    pr iva t isa t ion of agr icul tura l ser vices , a key ins tru ment of India s agr icul tura l

    re form , IAMR ( the Planning Commiss ion s spec ia l ised agency) and KIT agr eed

    to meet th is cha l lenge . Fie ld s tudies wer e conducted in the s ta tes of Punjab,

    Maharasht ra and Orissa . The resear ch focussed on the e ffec ts of pr iva t isa t ion

    on service pr ovis ion, product ivity and rur a l l ive l ihoods and was based on

    inform ation collec ted f rom far mer s and other s takeholders in both the pr iva te

    and pub l ic sec tors . The resul ts of th e s tudy, and the ir implica t ions for pol icy

    adjus tmen ts were discussed dur ing worksh ops in each of the three s ta tes

    (IAMR/KIT, 2001a, 2001b, 2001c). The s tud y conc luded with a n ationa l policy

    works hop held in New Delhi from the 7th to the 9th of J uly 2001 (IAMR/KIT,

    2002a) and resu lted in the publication of a national policy r ecomm enda tion

    report (IAMR/KIT, 2002b).

    The s tudy su gges ts tha t t he cur rent agr icul tura l pol ic ies which involve a

    sys tem of input subs idies and minimum suppor t pr ices , a re not sus ta inable

    (IAMR/KIT, 2002b).1 Although t hese policies have played a cr ucial role in India

    reaching n a t ional se lf -suff ic iency in food, many ser ious negat ive e ffec ts a re

    emer ging. Apar t f rom the direc t cos t of subs idies , the cos t of t ranspor t ing and

    stor ing the la rg e and r apidly increas ing s tocks of food is prohibi t ive . The

    sys tem ag gravat es regional dispar i t ies ; gener a tes subs tant ia l negat ive

    environmenta l e f fec ts ; has not a llevia ted malnutr i t ion among the r ura l and

    urban poor 2 and favours la rge over small producers . Unfor tunate ly, when

    national food self-suffiency was attained the policies were n ot altered

    accordingly, to preven t serious over-pr oduction and soar ing public expend itures .

    I t i s wide ly be l ieved tha t the curr ent sys tem of food subsidies should be

    discont inued, though there is some res is tance to th is .

    INTRODUCTION

    11

    1 This is also confirm ed by other s, such as G oI, 2002; Parikh and Ra dhakr ishna, 2002.

    2 The food supply is sufficient to feed India s population, but m any of the 260 (GoI, 2002) to

    290 mill ion poor (World Ba nk, 2002) do not have s ufficient bu ying power to acce ss th e food.

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    I t i s a lso noted tha t the pr oduct ivity and pr of itabi l ity of a num ber of important

    crops such as m aize , wheat , r ice , and pota to a re d ec l ining. I t i s important ,therefor e , tha t the cul t iva t ion of a l te rna t ive and more prof i table c rops should

    be encouraged . This implies a need for a divers i f ica t ion of the In dian

    agr icul tura l sys tem . I t i s ant ic ipa ted tha t increased diver s i f ica t ion would

    s t imula te grea ter dynamism in the agr icul tura l sec tor and gr owth in fa rm

    incomes and ru ra l employment .3 These can only be achieved thr ough major

    policy re form s.4

    Based on the ins ights ga ined dur ing the f i rs t phase , KIT and IAMR decided to

    cont inue i ts contr ibut ion to the ongoing debate on agr icultura l pol icy re form s

    by conduct ing a s tudy focused on agr icultura l diver s i f ica t ion in India . To

    analyse the whole spec trum of divers i f ica t ion in such a la rge and diverse

    country would have been over ambit ious , so it was agr eed tha t th e s tudy would

    focus on one sector 5 in a par t icular s ta te . I t was fe l t tha t the ins ights and

    exper iences g a ined would provide a va luable contr ibut ion to the n a t ional and

    sta te leve l pol icy debate on an appr opr ia te and meaningful divers i f ica t ion

    s tra teg y in India . The case of medic ina l plants in the Sta te of Utta ranchal was

    chosen. This choice was inf luenced by a num ber of fac tors .

    Medic ina l plants a re a commodity with a high ad ded va lue , and increas ing

    interna t ional demand is enhancing the ir va lue . Both the Centra l and Sta te

    Governmen ts have shown interes t in the sec tor , which they wish to s t rengthen

    in order t o c rea te addi t ional income and employment oppor tuni t ies . Ut ta r anchal

    a lready has a r ich resource of m edic ina l plants , wi th te r r a in and agroc l imat ic

    condi t ions tha t a re par t icular ly su i table for the ir collec t ion and cul t iva t ion. A

    number of t r iba l communit ies , such as the Bhot ias , have a long t radi t ion of growing and us ing med ic ina l plants . In view of a l l these advantages , the Sta te

    governm ent hopes to develop Uttaranchal into The Her bal Sta te of India .

    Through previous pr ojec ts , IAMR had a lready col lec ted s ignif icant information

    on the sec tor and d eveloped a ne twork of contac ts with the m ain s takeholders .

    1.2 Objectives of the study

    The fol lowing pr ime objec t ives were form ula ted for the s tud y:

    conduct an in-depth s tud y of the cur rent s ta tus of medic ina l plants in

    Uttaranchal ;

    ident i fy the main oppor tuni t ies and constra ints ;

    sugges t pol icy measures and a plan of ac t ion to suppor t th e development of

    the sec tor ;

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    3 In add i t ion to reduced pr essure on the env i ronment and increased cr op d ivers i ty in

    f a r m e r s fields.

    4 In o rder to be succesf u l , the main s takeholders should be act ively involved in such a

    r e fo rm p r o cess .

    5 Strictly sub-sector , but for the sake of simplicity, the term sector i s used th r oughout the

    tex t .

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    enhance the capaci ty of the col labora t ing ins t i tut ions thr ough joint resear ch

    (KIT-IAMR-CSD).

    1.3 M ethodology

    The analyt ica l approach used in this s tud y is a combinat ion of the supply or

    va lue cha in concept and s takeholder an a lys is . I t was dec ided to take th e supply

    chain of medic ina l plants as th e point of re fer ence . Such a ch a in descr ibes the

    ful l range of ac t ivi t ies tha t a r e requir ed to br ing a product or ser vice f rom i ts

    or igina t ion, through interm edia te phases , to the f ina l consumer (a f te r

    Kap linsky and Mor r is, 2001; IDS, 2001; Kap linksy, 2000).

    The l inkages be tween product ion, t rade , process ing and consumption, and a l l

    the opera t ions tha t add va lue , by a l l the dif fe r ent ac tors involved, a re

    scr utinised. Specific attent ion is paid to the inter-linkages be tween differ ent

    players and th e ir power r e la t ionships . The s takeholder ana lys is genera tes an

    overview of the main players involved in th e cha in. In addi t ion, i t provides a

    f ram ework to develop prac t ica l ideas of wher e to l ink s takeholders to a t ta in

    comm on objectives. Following the su pply chain, the level of coordination and

    coopera t ion is reviewed, with ana lys is of whether the r equiremen ts and needs

    of the consumer s , a t the end of the cha in, a re be ing communica ted effec t ive ly

    throughout the ch a in. However , this is ac t ion-research and does not s top a t

    analysis of the existing situat ion; i t form ulates pr actical ideas as to how specific

    constra ints can be r emoved and oppor tun i t ies rea l ised, impr oving the over a l l

    development and p erform ance of the cha in.

    Actions to enhance the developmen t of the chain should be through inter ventionswhich are discussed, planned and implemented by the s takeholders themselves .

    For exam ple this could involve inves tments which crea te leverage throughout

    the cha in, capaci ty s t r engthening of spec if ic cha in ins t i tut ions or players , or

    he lping to suppor t a bus iness enter ing the interna t ional market . Where pro-

    poor pol ic ies a re concerned, inte rvent ions could mean measur es enhancing

    equi ty, such as suppor t ing smallholders to pr oduce a commodity which faces a

    high demand, impr ove the ir forwar d l inkages through contrac t fa r ming

    arr angement s with buyers , and s t rengthening the commer cia l capaci t ies of

    exis t ing and emer ging farm er organisa t ions . Such measures a im a t the

    inclusion of poorer s ections of society into specific comm er cial oper ations, and

    making them more vis ible through a supply cha in perspec t ive .

    The va lue cha in approach pr ovides a useful f r amework in which to think what

    ac t ion could be tak en towards developing the medic ina l plant sec tor in

    Uttaranch al . How can the g rowing oppor tuni t ies be tapped in a coordina ted

    manner in order to be successful? How can smallholders be bes t suppor ted ?

    Who are the s tak eholders involved in the cha in, what is the ir contr ibut ion and is

    there suff ic ient comm unica t ion and coordina t ion be tween them ? How can

    effec t ive s takeholder inte rac t ions and ac t ions be organised? What sor t of

    inte rvent ions would have the m ost fa r -reaching and benef ic ia l e f fec t for most

    sec t ions of the m edic ina l plant cha in?

    INTRODUCTION

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    The s tudy is based on secondary and pr imary da ta sources . Secondary sour ces

    were used to col lec t information on Uttaran chal and m edic ina l plants ingenera l . Pr imar y information, col lec ted thr ough interviews with a var ie ty of

    s takeholders , was used to exam ine var ious issues re la ted to m edic ina l plants in

    Uttaranchal .

    Chamoli , in the Gar hwal region of Utta r anchal , was se lec ted for de ta i led s tudy.

    Much of this r egion consis ts of high a l t itude ar eas , which ar e notable for the

    growth of high va lue m edic ina l plants . With the comm unitys long tra dition of

    us ing, col lec t ing and t rading in medic ina l plant mater ia l, the dis t r ic t has the

    potent ia l to be an importan t supp l ie r .

    The resear ch team consis ted of personnel f rom IAMR (the Indian Ins t i tute of

    Applied Manpower R esear ch); KIT (the Royal Tropical Institu te, the

    Nethe rland s); and CSD (the Centre f or Sustainab le Developmen t). Two field

    tr ips wer e carr ied out . The f irs t t r ip was used to col lec t pr e l iminary

    information on policy and t r ade in med ic ina l plants in India and Uttar anchal

    through discuss ions with off ic ia ls , resear chers , and t r aders in New Delhi and

    Dehradu n (March 2002) . The second t r ip was made in October 2002. During this

    t r ip a num ber of places in Utta ranch al were vis i ted, inc luding Sr inagar ,

    Gopeshwar , Joshimath, Badr ina th and Mana. Deta iled interviews were carr ied

    out with governm ent off ic ia ls , resear chers , NGOs, t rader s , fa rmer s , col lec tors ,

    tr aditional healers, co-oper ative officials and contrac tors . Lastly, discussions

    with industr y repr esenta t ives and donor agencies were he ld in New Delhi .

    1.4 Structure of the report

    The repor t consis ts of f ive chapters .

    Ch a p te r 1 : a b a c k gr o u n d t o th e r e s e a r c h, t he m e t h od olo gy a n d f r a m e w or k

    used;

    Chapte r 2 : the impor tance of medic ina l p lant s in r e la t ion to agr icu ltu ra l

    divers i f ica t ion, income genera t ion, gender and biodivers i ty;

    Chapte r 3 : the cur ren t s t a tus of medic ina l p lant s in U t ta rancha l S tate , l a rge ly

    based on secondary da ta ;

    Chapte r 4 : the f ind ings of the f ie ld r e search in Chamoli d is t r i c t ;

    Chapte r 5 : conc lusions of the study and pol icy r ecommenda t ions.

    1.5 Projected audience, risks and follow-up

    This repor t pr esents an overview of the major issues in developing the

    med icinal plant cha in in Uttar ancha l; i t consciously avoids techn ical details

    per ta ining to m edic ina l plants . The publ ica t ion is a imed a t policy maker s ,

    industry, donor ag encies and NGOs working in this f ie ld in Ind ia . Member s of

    the gener a l publ ic may a lso f ind much of inte res t in this repor t .

    I t is the first in a num ber of publications KIT-IAMR-CSD will publish on the

    topic . Addit ional publ ica t ions a re planned, repor t ing on t he m ajor t r ends in

    interna t ional mar kets , the perce ived needs and pr ospects of the na t ional

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    medic ina l plant industr y, and a de t a i led fa r ming sys tem analys is of some

    promis ing m edic ina l plants spec ies .

    With generous ass is tance f r om the key people interviewed the authors have

    been able to comple te the s tu dy in a r e la t ive ly shor t t ime, depending m ainly on

    qualitative inform ation. Applying this appr oach to complicated issue s has, of

    course , i ts limita t ions . The authors wish to em phasise tha t they and not the ir

    inform ants a re r esponsible for any m is takes made . We s t rongly encourage the

    reader to communica te with us any comm ent , need for c la r i f ica t ion or

    quest ions they would like to ask. We would like to impr ove this pu blication

    wherever and whenever poss ible . Moreover , this repor t is jus t the f i rs t , smal l

    s tep in a longer pr ocess through which KIT, IAMR and CSD are commit ted to

    promoting The H ea lthy Ente rpr i se.

    INTRODUCTION

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    2 Medicinal p lants: why are they important?

    2.1 Int roduction

    Medic ina l plants a r e important for a num ber of r easons . They pr ovide mater ia l

    for both the phar maceut ica l industr y and t r adi t ional forms of m edic ine 6,

    genera te income and employment and have implica t ions for the conserv a t ion of

    biodivers i ty an d t radi t ional knowledge .

    World wide the number of spec ies used for medic ina l purposes is es t imated to

    be m ore th an 50,000, which covers ab out 13 per cent of all f lowering plant s

    (Schipmann et al ., 2002). In In dia over 8,000 plant sp ecies ar e used in tr aditional

    and m oder n med icine (Planning Comm ission, 2000).7 Box 1 gives exam ples of

    some comm only used medic ina l plants in India .

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    Box 1: Three examples of medicinal plant s

    Aconitum heterophyllum(Atis) is a perennial herb t hat grow s between 2500 and 4000 metres. Locally th etub ers are given t o alleviate f evers and stomach pains. The plant is used by t he pharmaceutical industry in

    drugs combati ng debilit y and aft er fevers. The chief constituent is a non-to nic alkaloid, known as atisine.

    Nardostachys grandiflo ra(Jatamansi) is a perennial herb that grow s between 3200 and 5000 metres.

    Locally the l eaves are used as a blood purif ier. The root s are used in the m anufacturin g of drugs

    prescribed for epilepsy, diseases of the digestive and respiratory organs. As a home remedy the herb is

    used in flat ulence, colicky pains and as a ton ic for general debilit y. The active constit uent, jatamansone, is

    know n for reducing blood pressure and moderate hypert ension w ith out side effects.

    Picororhiza kurroo a(Kutki) is a perennial herb t hat gr ows betw een 3000 and 4600 metres. The dried plant

    parts are used to tackle fevers and cholera. It is a laxative in small doses and a cathartic in large doses. It is

    also considered t o be a valuable bitt er t onic (Nautiyal, 1996).

    6 In add i t ion , the cosmet ics indust ry i s increasing ly using more natur al ingred ien ts ,

    includ ing ex t racts o f medicinal p lan ts , in thei r p roducts .

    7 Var ious medicinal plant species ar e des cr ibed in CIMAP, 1992; Nautiyal, 1996; Joshi an d

    Kumar, 2000.

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    2.2 Traditional medicine and t he pharma ceutical industry

    Medic ina l plants a re a prec ious na tura l resour ce , both f r om the per spec t ive of

    the ir u se in t r adi t ional medic ine8 as wel l as providing na tura l ingr edients for

    the manufac tur e of modern pharm aceut ica ls (Lambert et al ., 1997; Balick an d

    Mende lsohn, 1992; FAO, 1997). They play a cr ucial r ole in pr oviding new

    rem edies for exis t ing and new diseases . A la rge num ber of plant spec ies a re ye t

    to be screened for ac t ive compounds .9 This sugges ts tha t the importan ce of

    medic ina l plants is expected to grow fur ther . I t i s therefore vi ta l tha t exis t ing

    s tocks a re protec ted and conserved.

    Medic ina l plants a re ver y important for developing countr ies , as la rge

    segments of the ir p opula t ions depend on t rad i t ional herba l m edic ines (WHO,

    1999).10 In addi t ion to the ir contr ibut ion to human hea l th car e , medic ina l plants

    play an important , ye t of ten over looked r ole in providing ve ter inary care

    (Lambert et al ., 1997).

    Seen f rom a g lobal perspec t ive ,

    India has one of the r iches t

    t rad i t ions of us ing m edic ina l

    plants in hea lth care (Lamber t e t

    a l. , 1997; Planning Commission,

    2000). Thousan ds of m edicinal

    plants a re used for a v ar ie ty of

    cures . The knowledge and

    tr aditions of local comm unities

    include diag nosis, the location ofplants and the ir uses and the

    abi li ty to prepar e rem edies .

    Some pr ac t ices a re direc t ly

    re la ted to spec if ic re l igious an d

    spir i tua l be l ie fs and t radi t ions

    (see Box 2). In gen er al, women

    play a vital role in applying the se

    ski lls and t ransfer r ing knowledge to the next genera t ion (Lamber t et al ., 1997).

    Severa l important h erba l-based hea l ing t rad i t ions a re p rac t ised in India . These

    inc lude Ayurveda , H omeopathy, Unani , Siddha and Naturopathy (see ISMH,

    2002). Of these, Ayur veda is the bigge st and oldest syst em. Ayur vedic doctor s

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    8 Tradi t ional medicine can be def ined as the knowledge, sk i ll s and pr act ices based on

    theor ies , beliefs and exper iences ind igenous to var ious cu l tu res in the m ain tenance of

    hea lth (WHO, 1999).

    9 So far on ly 1 percen t o f a l l p lan t species have been screene d for a ct ive compounds (CTA,

    2002).

    10 According to some sour ces the proport ion of population which totally depend s on

    tr aditional me dicine in developing countries is as high as 80 per cent (Holley and Cherla,

    1998; Planning Comm ission, 2000; World Ban k, 2001).

    Box 2: Hanumans search for medicinal plants: a

    traditional Hindu story

    The Hindu man-god-ki ng Ramwas fighting against the

    evil giant Ravan in Lanka. His brot her Lakshmanw as

    seriously injured, and the faithful Hanuman, the monkey

    god, fl ew to a sacred mount ain in th e Himalaya to collect

    Sanjeevani, a lifesaving plant to cure him. When

    Hanumanarrived in t he Himalaya he could no t r emember

    the name of t he plant. He therefore decided to l i f t t heentire mou ntain, and carried it t o Lanka. The plants

    instant ly cured Lakshman. During t he journey, bits and

    pieces of earth dropped off the mountain, scattering

    plants all over India. This, so the story goes, is how the

    plants used in t raditi onal Ayurvedic medicine can be

    found everywhere in India.

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    and phar macies a re found a l l over Ind ia , and ther e a re sever a l Ayur vedic

    colleges in the count ry.

    In m any comm unit ies t radi t ional hea lers cont inue to play an importan t r ole in

    loca l hea l th care sy s tems. In addi t ion to t radi t ional hea lers ther e is a s t r ong

    family based t r adi t ion in which women play the cen tra l r ole . Tradi t ional

    medic ine is par t icular ly re levant for the poor , many of whom cannot a f ford the

    cost of a l lopathic medic ines . Also, in r emote a r eas wher e m odern medica l

    facilit ies are not available, tr aditional medicine is often th e only alter native.

    2.3 Income and employm ent

    As mentioned in chapter one , i t i s c lear t ha t the pr of it leve l of many curr ent

    agr icul tura l c r ops in India is dec l ining. I t i s in this context tha t m edic ina l plants

    could provide a high-va lue , a t t rac t ive a l te rna t ive , genera t ing addi t ional income

    and emp loyment . This could be m arkedly s ignif icant for the r ura l and landless

    poor . Medic ina l plants have a num ber of forwar d and backwar d l inkages in the

    chain and em ployment in other a r eas would fol low, for exam ple in supplying

    inputs , process ing, drug for mula t ion, t rading, t ranspor t and the re ta i l industry

    (see also Smith Olsen and He lles, 1997).11 Since women ar e engag ed in collection

    and cultivat ion, the pr omotion of med icinal plants could also help to emp ower

    women (Lamber t et al ., 1997). In add ition, me dicinal plants can be an im port ant

    source of revenue for both loca l and centra l governm ents .

    Medic ina l plants can pr ovide subs tant ia l fore ign exch ange ear nings . They

    provide na tura l ingredients for a growing number of conventional allopathic

    medic ines produced b y the pharm aceut ica l industr y. In addi t ion, global inte res tin a l te rna t ive medic ines is s t rong and growing rap idly. For example ,

    homeopathy and her ba l medic ines have now es tabl ished them selves f i rmly in

    the wester n world as a l te rna t ives to a l lopathic med ic ines . Consequent ly the

    global demand for m edic ina l plants has increased. The inter na t ional mar ket for

    the m edicinal plant tr ade is estim ated at US $ 60 billion, growing at an

    es t imated 7 per cent per year (Ramakrishnappa , 2002; Planning Comm iss ion,

    2000; CTA, 2002). The ac tual dem and will be even g re ater than t he dat a

    sugges ts .12 A substant ia l par t of the t r ade is unrecorded, par t ly because m uch of

    it is il legal. Moreove r, when an alysing inter national tr ade sta tistics, it is

    dif f icul t to separa te m edic ina l f rom other uses such as f lavour ing, tender isers ,

    insecticides and per fum es (CBI, 2002).

    The leading suppl ie rs of th e world m arket a re China , Singapore , Braz i l, India

    and Egypt . The interna t ional demand is la rge ly f rom the United Sta tes and the

    European Union (EU), with Ger many as the leading t rade cen tre .

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    11 For exam ple, a recen t r epor t f rom the P lann ing Comm ission (2002) emphasises the

    impor tan t r o le that medicinal p lan ts can p lay in cr eat ing add i t ional employment in a

    number o f sectors , includ ing agr icu l tu re , pharmacy , heal th , tour ism and m anufactur ing .

    12 As a lar ge pr oportion of med icinal plant m ater ial is used dome stically, the total dema nd is

    far g rea ter than that suggested by t rade f igures .

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    the ir contr ibut ion to the conser va t ion and development of plant genet ic

    re sources .

    In r esponse , a number of na t ional governm ents , inc luding Indias 15, have passed

    laws tha t recognise the fa rmer s contr ibut ion to the conser va t ion of

    biodiversity an d tr aditional knowledge. The legislation also has pr ovisions for

    compensa t ion for t he use of genet ic resour ces by industr y. This is per t inent to

    medic ina l plants , as they are important r aw mater ia l for the phar maceut ica l

    industry.

    I t i s hoped t ha t these init ia t ives wil l contr ibute to the conser va t ion of

    biodiversity. To date, however, biodivers ity, including m edicinal plant s pecies,

    continues to decline. Cultivation 16 has been sugges ted as one of the ways to

    reduce pressur e on na tura l fores t r esources (see for ins tance Wood Sheldon,

    1997; FAO, 1997).

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    15 The object ive of the Biodiversity B ill 2000 is to promote the conser vation of biological

    d ivers i ty, sustainab le use o f i t s components and e qu i tab le sha r ing of the benef i t s ar i s ing

    out of the us e of biological re sourc es (GoI, 2000).

    16 Also refer r ed to as domestication .

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    3 Medicinal p lants in Uttaranchal

    3.1 Int roduction

    Uttaranch al lies in the nor th of India amids t the H imalayas , and is border ed by

    Nepal and China (see figure 1). I t has 13 districts , with Dehrad un as its capital

    (GoU, 2002a). Uttar anchal was declar ed an indepen dent st ate in November 2000.

    An import ant bas is for i ts separa t ion f rom Uttar Pradesh was tha t this region

    has a distinct s ocio-economy, geogr aphy, history, and cultur e. The state hosts

    important r e l igious s i tes and pi lgr im r outes for Hindus an d Sikhs , hence the

    re fe rence to the a rea a s the Abode of the Gods . Ut ta ran chal is an area of gr ea t

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    Fi gu re 1 : M a p o f Ut t a ra nch al

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    17 Data fo r th is para graph wer e taken f r om GoI (2002).

    18 No t ime ser ies data fo r the main economic ind icators i s avai lab le as the s ta te was cr eated

    very r ecen t ly.

    natur a l beauty, with fores ts , va l leys and the snow covered Himalayan peaks

    tha t inc lude the world famous Nanda Devi Biosphere Reser ve . I t i s a favour i tetour is t des t ina t ion, a t t rac t ing na t ional and inter na t ional vis i tors . Apar t f rom

    tour ism, the economy of Utta ranchal is mainly based on agr icul ture . The

    industr ia l sec tor is very l imited. Some measur es a re be ing taken to develop the

    regions hydr oelec tr ic potent ia l , such as th e bui lding of the Ther i Dam .

    The s ta te covers 51,000 square ki lometres , which is less than 2 per cent of the

    tota l te r r i tory of India .17 In 2001 the st ate s popu lation was alm ost 8.5 million

    people , less than 1 per cent of Ind ias total population. I ts an nual population

    growth is 1.76 percent , compar ed to an aver age of 1.93 percent for the whole of

    India. The population density is 159 people per squa re k ilomet re ; for Ind ia this

    figur e is 324. Uttar ancha l is am ong the poore st sta tes of India; in 2001 its per

    capi ta income was 7,263 Indian Rupees , whereas the average for India was

    10,771 IR. Only the States of Bihar, Jh ar khan d, Orissa , and Tripur a rep orted

    lower per capita income s in 2001. Howev er, the level of educa tion is relatively

    well developed s ince the 72 percent l i te racy r a te in Utta ranchal is higher th an

    the na t ional average of 65 percent . The l i te racy r a te for the m ale popula t ion is

    84 percent (na t ional average 76 per cent) , and for the female popula t ion 60

    percent (na t ional average 54 percent) .18

    Uttaranch al is a compar a t ive ly green s ta te . Appr oximate ly 70% of Utta r anchal

    comprises na tur a l fores t an d rang elands . Most people res ide in rur a l a reas and

    live off sma ll-scale agr icultur e (Pandey et al ., 2001). The r oad and

    communica t ion infras t ruc t ure is not wel l developed because of the m ounta inous

    terr a in and rem oteness of comm unit ies . I ts popula t ion has a s t r ong t radi t ion of

    pr otecting the env ironm ent and biodiver sity. A well-known exam ple of thisinc ludes th e Chipko movement , which led to the banning of comm ercia l logging

    in a la rge par t of the s t a te (see Box 4).

    Medic ina l plants a r e an integra l par t of the l ife of Utta r anchal people . Local

    communit ies , inc luding t r adi t ional hea lers , have gr ea t knowledge of t he ir

    healing capa cities. With its var iety in climate and a lti tude, the r egion is well

    s i tua ted for a rang e of medic ina l plant spec ies . The na tur a l fores ts an d rang es ,

    when exploi ted by sus ta inable methods , provide ample oppor tuni t ies for the

    harves t ing of medic ina l plant mater ia l f rom the wild. Farm ers a r e

    exper imen t ing with the cul t iva t ion of medic ina l plants .

    3.2 Government policies to promot e medicinal plants

    Both na t ional and s ta te governments have shown increas ing interes t in

    pr omoting medicinal plants in India. A task force fr om the Planning Commission

    rev iewed the sector in 1999 (Planning Commission, 2000). The Commission

    acknowledges the importance of the sec tor and the need to pursu e effec t ive

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    polic ies to s t r engthen i t . Similar ly, the Uttar anchal Governm ent r ecognises the

    impor tanc e of suitable policies and eff ective inst itutions (see Tiwari, 2002; GoU,

    2002a; b; c). I t has intr oduced a n um ber of policies, which include:

    Support ing resear ch and technology development;

    Providing f inancia l suppor t for plant ing mater ia l and land pr epara t ion

    through medic ina l plant co-opera t ives ;

    Providing f inancia l suppor t for pr ojec ts promoting m edic ina l plants ;

    Set t ing up nur ser ies to provide plant mater ia l ;

    Strengthening l inkages withthe marke t ;

    Setting up a Medicinal Plant

    Board to direc t the gr owth of

    the industr y.

    Besides ment ioning m edic ina l

    plants sp ecifically in its

    industr ial policy (see Box 5) the

    s ta te governm ent has developed

    an action plan to uplift the sector

    (see G oU, 2002b, 2002c). It h as

    identified ten species of

    medic ina l and aromatic plants

    for comm er cial exploitation in

    Uttaranchal .19

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    Box 4: Chipko environmenta l movement

    In t he 1970s rural wo men f rom several Central Himalayan communit ies embarked o n a gr assroot

    environmental movement that became well known internationally. Their prime goal was to preserve the

    natural resources and ecological balance of the central Himalayas. They called themselves the Chipko

    movement, which literally means Tree Hugging Movement . They conf ront ed the commercial exploit ation

    of the Himalayan forests. Following the doctrine of non-violence the women literally clung to the trees

    that were marked f or loggi ng, held demonstration s against t he auction ing of trees, or t ied sacred thr eads

    around t rees destined f or t he axe. More and more villagers support ed the Chipko movement and t heir

    inf luence rose to nation al and int ernational levels. The responsible instit uti ons, including the commercial

    logging companies, were f orced to change their perspective on monet ary versus environment al int erests.

    Nowadays it is not permissible to fell trees above 1,000 metres and on those slopes exceeding 30 degrees.

    Chipko start ed an environment al revolution that has now spread inside and out side th e count ry, giving

    the world a proud example of an alternative to political and environmental cynicism. It shows that well-

    organised grassroot activism can be an eff ective instrument in prot ectin g t he environmental r ight s of

    local comm unit ies (see also Weber, 1988).

    19 Among others , these include Atis (Aconitum heterophyl lum); Kutki (Picororhiza kurrooa);

    F e ren (Al lium strechyi ); Kuth (Saussurea costus); Seabuck th orn (Hippophae salicifolia).

    Box 5: Ut taranchals industrial policy for medicinal plant s

    The 2001 industrial policy of Utt aranchal specifi cally

    mentio ns Herbal and Medicinal Plants: Utt aranchal is a

    storehouse of a rich variety of species of herbs, medicinal

    and aromatic plants. This massive potential has remained

    largely unexploited in the absence of a well-planned and

    coordinated strategy for commercial cultivation and

    integr ated arrangements for pro cessing and market ing.

    An integrated action plan wil l be drawn up for this

    purpose in coordination wit h t he Government of India

    and specialised agencies all over the country. Strategic

    linkages and connectivit y will also be fo rged betw een

    this industry and tourism. Special emphasis will be given

    to arrangements for marketing both w ithin t he country

    and abroad (GoU, 2001).

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    3.3 Institutions

    A number of agencies a re engaged in the promotion of med ic ina l plants in

    Uttaranch al . These inc lude centra l and s ta te government depar tments ,

    univer sities, co-opera tives, NGOs and donor agenc ies. In addition, the privat e

    sec tor is involved through num erous commer cia l agencies engaged in t rade ,

    process ing and mar ket ing. Figure 2 presents a s im plif ied pic ture of the main

    institutions and sta keholder s in the medicinal plant chain. Below, the m ain

    s takeholders am ong governm ent , resear ch, co-opera t ives , NGOs and donor

    agencies a re introduced. The other s takeholders a re cover ed in the next

    sec t ion, which discusses the f low of p roduct ion, t rade , process ing and

    consumption within the m edic ina l plant cha in.

    Figure 2: Main stakeholders in the medicinal p lant chain

    The governm ent minis t r ies pr omoting the medic ina l plant sec tor inc lude the

    Minis t ry of Environment and Fores ts ; the Minis t ry of Heal th and Fam ily

    Welfar e; the Ministr y of Science and Technology and the Ministr y of

    Agricul ture .20 The leading agency is the Minis t ry of Environment and Fores ts .

    I ts mand ate is to survey and conserve f lora , fauna , fores ts and wildl ife ; preven t

    and control pol lut ion; re fores t and reg enera te deg raded ar eas and to manage

    Indias fores ts , na ture reser ves and parks (Minis t ry of Environmen t and

    Fores ts, 2002). The policies and interv entions of the Ministr y of Environm ent

    and Fores ts h ave a direc t inf luence over the medic ina l plant sec tor .

    The Minis t ry of Agricul ture is indirec t ly involved in th e m edic ina l plant

    business t hr ough its National Co-oper ative Developm ent Corpor ation (NCDC).

    The NCDC plans , prom otes and f inances program mes for th e product ion,

    process ing, mar ket ing, s torage , expor t and import of agr icul tura l pr oduce ,

    including m edicinal plant s (NCDC, 2002).

    20 For m ore in format ion on government po licies and program mes see GoI , 2001.

    ResearchInstitutes

    Traditional

    healers

    Farmers and

    collectors

    Traders

    Wholesalers/

    retailers

    Customers

    Industry

    NGOs

    Ministry of Forestry/

    Agriculture/Health/Science

    Co-operatives

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    India has a s t r ong and extens ive r esearch b ase in the f ie ld of medic ina l plants .

    According to a da tabase mainta ined by IDRC, over 900 Indian resear chers a reworking on m edicinal plants (Johar i and Kark i, 1999). Inst itutes belonging to

    the centra l and s ta te governm ents carr y out most of the resear ch. The Minis t ry

    of Environment and For es t supp or ts r esearch through the Indian Counci l of

    Forestr y Resear ch and Education (ICFRE), based in Dehradun (see ICFRE, 2001).

    Indias pr ime ins t itut ion for fores try r esearch, the Fores t Research Ins t itute

    (FRI) is a lso based in Dehradun. The ins t i tute conducts r esearch on medic ina l

    plants in its Non-Wood Fore st Pr oducts Division. Other aut onomous re sear ch

    ins t itutes suppor ted by th e Minis t ry a re the G.B. Pant Ins t i tute of Him alayan

    Envir onmen t and Developme nt, and the Wildlife Institu te of India (WII).

    The Minis t ry of Sc ience and Technology suppor t s resear ch thr ough i ts Centra l

    Institu te of Medicinal and Arom atic Plants (CIMAP) in Lucknow. This is the

    main r esearch ins t i tute dea l ing with m edic ina l plants in India . I ts objec t ives

    inc lude th e development of pr oduct ion and process ing techn ologies , inc luding

    genet ic improvem ent , for economically important m edic ina l and ar omatic

    plants, both indigenous and exotic (CIMAP, 2002).

    The Minis t ry of H eal th and Fam ily Welfare has thr ee agencies dea l ing with

    tradi t ional medic ine . These inc lude the Centr a l Counci l for Resear ch in Ind ian

    Medic ine and Homeopathy and the Commit tee on Indian Systems of Medic ine

    and H omeopathy, both based in New Delhi . Research is suppor ted by t hree

    specia lised agencies : the Centra l Council for Research in Ayur veda and Siddha;

    the Centra l Counci l for Research in Unani Medic ine and the Nat ional Ins t i tute

    of Hom eopathy (see ISMH, 2002).

    The Sta te Governm ent of Utta ranch al a lso suppor ts r esearch thr ough its Her bal

    Research an d Development Ins t i tute (HRDI) in Gopeshwar.

    In addi t ion to these governm ent ins t i tutes , univers i t ies , such as the Gar hwal

    Univer sity, in Srinagar, carr y out r esear ch. I ts High Altitude Plant Physiology

    Research Centre (HAPPRC) is one of the prime r esearc h facilit ies in Uttaranchal.

    The co-oper atives, called Bhaishaj Sangh (liter ally medicinal plant

    organ isation), wer e set-up in 1977 to develop m edicinal plants in the hill areas

    of Utta r Pradesh ( to which Uttar anchal be longed in the pas t) . Each dis t r ic t in

    Uttar ancha l has one co-oper ative. Each is involved in the collection of medicinal

    plants f rom th e fores ts and rangelands . In addi t ion to this , they pr omote the

    cultivation of medicinal plants.

    A number of NGOs are a lso involved in the pr omotion of medic ina l plants in

    Uttaranchal .21

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    21 At the national level NGOs involved in tra dit ional medicine include the Foundation for

    Revitalisation of Local Hea lth Tra ditions (FRLHT ), Banga lore, and the He rba l Folklore

    Resear ch Centre , Tirupat i .

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    Prominent am ong these a re the Centre of Minor Fores t Pr oducts for Rura l

    Development and Envir onmenta l Conserva t ion and the Socie ty for HimalayanEnvironmenta l Resear ch (see Box 6).

    The interna t ional donor comm unity is increas ingly interes ted in supp or t ing the

    Indian government s prom otion of medicinal plants. The United Nations

    Development Progr amm e (UNDP) has ini t ia ted a process to develop s ta te leve l

    action plans for their conser vation and susta inable utilisation (UNDP, 2002). I t

    will ut i lise exper iences f r om ongoing UNDP p rojec ts in the Sta tes of Andhr a

    Pradesh and Mahar ashtra . The Interna t ional Fund for Agricul tura l

    Development ( IFAD) is planning, through a governm ent loan scheme, to execute

    medic ina l plants projec ts in se lec ted s ta tes . The Danish dev elopment

    organisa t ion Danida is ass is t ing medic ina l plant ini t ia t ives in Andhra Prad esh,

    Karnatak a and Tamil Nadu. The Canadian Intern a t ional Development ResearchCentre ( IDRC) has a regional medic ina l plant progr amm e ca l led the Medic ina l

    and Ar omatic P lants P rogr am me in Asia (MAPPA) (MAPPA, 2002).

    Besides suppor t ing governm ent e f for ts , most donors a lso ass is t the Non-

    Governmen ta l sec tor to provide oppor tuni t ies for t he development of medic ina l

    plants at t he local level.

    3.4 The medicinal plant chain: collection, trade and consumption

    The s t r uc ture of the m edic ina l plant cha in is presented in f igure 3. Below, the

    main s teps in the m edic ina l plant bus iness a re discussed in de ta i l .

    Many of the medic ina l plants or igina t ing in Uttaranchal a r e col lec ted f r om

    fores ts and rangelands . The Fores t Depar tm ent de term ines the a reas f rom

    which plants can be col lec ted, des ignates the sp ec ies and the ir quant i ty. The

    Fores t Depar tment gives perm its to the co-opera t ives , which in turn use

    contrac tors . The contrac tors em ploy member s of the loca l comm unity and

    outs ide labourer s to col lec t . The contrac tor s a r e obl iged to sup ply the col lec ted

    plant mater ia l to the co-opera t ives , which then se l l it to t r aders and the

    industry.

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    Box 6: SHER: a NGO promot ing medicinal plant s in Utt aranchal

    Kiran and Arun Kumar Badoni have set up the Society for Himalayan Environmental Research (SHER). This

    NGO aims to conserve and cultivate medicinal plant s in the mou ntain areas of Garhwal district. Among

    SHERs main activit ies are the settin g-up of demonstration plot s of selected medicinal plant species;

    testing and promo tin g appropriat e technologies and practices to g row m edicinal plants (includes

    extension and training mainly aimed at women farmers) and exploring long-term buying contracts with

    industries using m edicinal plants. Despit e some poli cy limitat ions (lack of coordination among M inistries),

    short age of plant ing mat erial and lack of inf ormat ion on appr opriat e technologies and practices, SHER

    believes that the cult ivation of medicinal plants has great pot ential f or many small-scale farmers in

    Uttaranchal.

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    Figure 3: The medicinal pla nt chain

    Collection f rom the w ild

    With

    permit/legal

    Without

    permit/informal

    Homestead

    garden

    Local/traditionalhealers

    Farmers fields

    Pharmaceutical/Ayurvedic medicine

    companies

    Small-scale

    processors

    International

    marketsNational consumers

    Collectorslocal/outsiders

    Co-operat ive Informal t raders

    Sub-

    contractors

    Retail shops/

    pharmacies

    Cultivation

    Middlemen/agentspharmaceutical companies

    Few specia l ised wholesa lers a re engaged in t his bus iness . Small-sca le t rader sand agent s of the l a rge r d r ug manufac ture r s t r anspor t the p lan t s f rom the

    collec t ion areas to the pr ocessors oper a t ing in the urban areas . These may be

    small or m edium sca le loca l opera tor s , or la rge sca le Ayurvedic and a l lopathic

    dru g manufac t urer s . The la t te r a r e mainly based in Bombay an d Delhi. I t is

    es t imated tha t ther e a re 7,800 dru g manufac t ur ing uni ts opera t ing in India

    (Planning Commission, 2000).

    The processors pr epare the m edic ines through form ula t ions , spec if ic mixtur es

    of medic ina l plant mater ia l. I t is rep or ted tha t in India the process ing industry

    uses a r ound 400 plant spec ies to manufac tur e the ir medic ines , of which 35

    species ar e used in large qu antities (Planning Commission, 2000). Apart f rom

    supplying the na t ional mar ket , the la rger companies expor t , mainly to the

    United Sta tes and the Eur opean Union. In Ind ia , numer ous loca l Ayur vedic

    phar macies and r e ta i l shops loca ted throughout the countr y se l l medica t ions .

    Counse l led by t radi t ional hea lers and p harm acis ts , consumer s use the

    medic ines for a wide var ie ty of prevent ive and cur a t ive appl ica t ions . In both

    urb an and r ura l a reas Ayurvedic medic ine is f irm ly es tabl ished in the hea l th

    ca re sys tem.

    In addi t ion to lega l col lec t ion i t i s r epor ted tha t a la rge am ount of med ic ina l

    plant m ater ial is collected illegally. In fact the am ount collected without

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    per mits is larger than th e legal collection (Chakr abar ti and Var shne y, 2001;

    Ramakr ishnappa , 2002). The t r ade is highly secr e t ive and comp lex, whichmakes i t har d to unders tand how the sys tem works . There is ver y l it t le de ta i led

    information avai lable about the cul t iva t ion, t rade , pr ocess ing an d consum ption

    of med icinal plants (Holley and Cher la, 1998). The av ailable informa tion

    suggests tha t th e sec tor is fac ing man y mar ket insecur i t ies . The mar ket ing of

    medic ina l plants is not t ranspar ent , leaving collec tors , fa rm ers and processors

    in the dark about pr ices , qua l ity, and consumer prefer ences .

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    4 Medicinal plants in Chamoli main research f indings

    4.1 Cultivat ion

    The f ie ldwork car r ied out in Chamoli consis ted of a de ta i led exam inat ion of the

    cultivation of medicinal plants in the distr ict. I t focused on two issues :

    whether la rge sca le cul t iva t ion of m edic ina l plants was tak ing place ;

    i f not , explore the r easons for i ts absence .

    Some na t ional and interna t ional l ite ra tu re re fer s to the cul t iva t ion, t rade and

    use of medic ina l plants in Utta ranchal .22 A survey of l i te ra tur e and discuss ion

    with off ic ia ls sugges ted tha t la rge-sca le cul t iva t ion was t aking place in sever a l

    ar eas such as Mana , Tapovan an d Bhyu ndar Valley (Valley of Flower s) (among

    other s Ka la, 1998; Bhatt , 1999; Maikhuri et al ., 1998). I t was also repor ted t hat

    Joshimath was a cen tre of t r ade . The team decided to vis i t these places to

    in terv iew fa rmers and t r ade r s . Fur the rm ore , as the Fore s t Depa r tment and the

    Co-opera tives have a cen tr al role in the policy to promote cultivat ion,

    discussions with their officials wer e also held.

    A small numb er of fa r mer s gr ow medic ina l plants in l imited quant i t ies on the ir

    homesteads for p ersonal and commu nity use , but there was l i t t le evidence of

    large -scale cultivation. Two examples wer e par ticular ly inter esting. One

    medica l prac t i t ioner f r om Joshimath mainta ins a nurser y of a var ie ty of

    medic ina l plants near Tapovan. The other example is f rom Bad r ina th wher e a

    volunteer f rom a r e l igious NGO has se t up a nu rser y. Both individuals a re

    except ional, as they ar e keenly concerned about the conserv a t ion of med ic ina l

    plants and t radi t ional knowledge . They provide m edic ina l plant mat er ia l and

    med ications to the local commun ity.

    Some evidence of cu ltivation was also found in Mana and Tapovan villages. In

    both villages a limited am ount ofKuth 23 was be ing cul t iva ted by a small number

    of f a rmers for pe r sona l use . In the pa s t a number of f a rmers had grown Kuth ,

    but none of them cont inued. The r easons for s topping cul t iva t ion were

    examined in de ta i l.

    22 Among the m ost in f luen t ial are : Biswas et al., 2000; Ka la et al., 2002; Ka la et a l ., 1998; Bhatt ,

    2001; Sam ant , 2002; Maikh ur i et al., 1998; 1999; 2001a; 2001b; 2002; Mehta, 2002; Nautiyal e t

    al ., 1998a; 1998b; 2001; Ra o et al., 2000; Silori a nd B adola, 2000; Uniya l et al., 2002.

    23 Botan ical nam e Saussurea costus .

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    The cu ltivation ofKuth in

    Uttaran chal s ta r ted as a resul t of promotion by the co-opera t ive ,

    Bhaishaj Sangh . The co-

    opera t ive provided farm ers with

    seeds and cr edi t . I t a lso

    guar anteed tha t i t would buy the

    crop. A number of fa rmer s took

    advantage of the scheme and

    planted Kuth in their f ields. I t

    took thr ee years for the c r op to

    be r eady for ha rves t . Kuth was

    found to be idea l ly sui ted for the

    high a l t i tude areas of Chamoli

    and high yie lds were obta ined.

    Unfortunately, the co-operative

    could not buy a l l the harv es t

    f rom the fa r mer s s ince it did not

    have a buyer . Appar ent ly, there

    had been no accur a te ana lys is of

    the exis t ing demand of Kuth .

    Many farm ers were unable to se l l

    their plants and suffer ed serious losses. In fact, many far mer s still have stocks of

    Kuth for which they are unable to f ind a buyer , fac ing a sa tur a ted m arket . The

    exper ience cr ea ted enorm ous f rus tr a t ion among co-opera t ive off ic ia ls and

    farm ers . A lot of t ime, energy and m oney were wasted. Many farmer s a re nowso f rus tr a ted they ar e unwil ling to plant Kuth , or any medic ina l plant spec ies

    again.

    Similar dif f icul t ies in m arket ing other m edic ina l plants , such as Chirata24, were

    a lso repor t ed by the fa rmer s inter viewed.

    4.2 The failure of cultivat ion

    A number of r easons were found responsible for the fa i lure of e f for ts to

    promote the cu l t iva t ion of medic ina l plants .

    A) THE PREDOMINANCE OF COLLECTION

    I t wi l l never be economical to cult iva te spec ies tha t gr ow abundant ly in the wild

    and can be col lec ted eas i ly. Also the problems tha t fa rm ers exper ience in t r ying

    to ge t the necessary perm its to cul t iva te (see point b) make col lec t ion the eas ier

    way to procur e any m edic ina l plant spec ies .

    24 Swertia chirayita .

    Box 7: A Kuth farmer from Tapovan

    A small-scale farmer tells his Kuthstory: In Tapovan we

    have a long tradition of collecting medicinal plants from

    the wild f or our health care. We noticed that t he plants

    were disappearing in the wild and wanted to start

    grow ing medicinal plant s on our farm. The stat e co-

    operative said w e should cultivate Kuth. They arranged

    the permi ts and seeds and said that they w ould bu y our

    crop. We provided land and labour. All went well and w e

    produced a good harvest, but the co-operative didn t buy

    it. Also we could n ot access anot her market . That w as a

    major loss for our family. We had put a lot of effort into

    cultivation, even more th an we are used to, since extra

    weeding w as required compared to ou r ot her crops.

    Growing medicinal plants is a risky business. If farmers

    received good pro fit s, they w ould in crease the

    productio n, but n ow t he risks are too high for small-scale

    farmers like us. Have a look at my farm. You can see I

    do n t have medicinal plants on my farm anymore. And

    without a guaranteed market out let you wil l not see

    them b ack in my f ields!

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    A traditional farmer and

    medicinal doctor, Badrinath

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    The permit allowing the

    collection and sale of a

    particular medicinal plant

    A farm worker, Niti

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    A farmer expressing his

    views on medicinal plants,

    Niti

    Ayurvedic pharmacy,Srinagar

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    Women f arm w orkers, Tapovan

    Ms. Badoni, Director of SHER,Dehradun (see box 6)

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    Mana, last village before the

    Tibetan border

    A t raditional healer, Tapovan

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    Villagers, Tapovan (see also

    box 7, 8)

    Children in a medicinal plant

    garden, Mana

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    Ayurvedic medicines

    on sale in Dehradun

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    B) PERM ITS

    Permi t s f rom the Fore s t

    Depa r tment a re r equi red for the

    cul t iva t ion and mar ket ing of

    medic ina l plants . There seem s to

    be considerable confus ion ab out

    the pr ocedure and e l igibi li ty to

    obta in a p erm it . In fac t , a t the

    time of the f ieldwork, i t was not

    c lea r whe the r the pe rmi t s we re

    issued b y the co-operative or the

    Fores t Depar tment . Most fa rm ers

    repor ted that in spite of promises

    they had not been g iven pe rmi t s .

    This has c rea ted uncer ta inty,

    discouraging farmers f rom

    opting for cultivation.

    C) M ARKET UNCERTAINTIES AND LOW PRICES

    At present fa r mer s a re expected to se ll the ir harves t th rough co-opera t ives , but

    these a r e unable to access and pr ovide informat ion on demand and pr ices . This

    c rea te s unce r ta inty and inc rea se s the f a rmer s r i sk . I f f a rmer s we re to

    cul t iva te m edic ina l plants independent ly they would be compel led to se l l to

    illegal tr ader s, who capitalise on their m onopoly and only give low pr ices. These

    dealers a lso need to recover the high cos ts r e la ted to i llega l t rade .

    I t i s c lear tha t f or cul t iva t ion to be successful fa rm ers r equire s t r ong suppor t in

    access ing mar ket out le ts . Discuss ions with fa r mer s sugges t this is lacking.

    D) TECHNICAL SUPPORT

    Most fa rmer s do not have exper ience in growing medic ina l plants and need

    technica l suppor t . Al though a number of ins t itutes a r e engaged in the

    development of cul t iva t ion techniques , the ir contr ibut ion has been small . Most

    farm ers compla ined tha t the degree of technica l suppor t de l ivered by

    governm enta l agencies is inadequate . The research effor ts a re pr imar i ly

    sc ience dr iven and do not focus on solving farm ers immedia te pr oblems. I t was

    a lso found th a t most r esearch ac t ivit ies a re car r ied out on-s ta t ion. The

    exper ience of fa r mer s is not ful ly capi ta lised on, par t ly as very l imited

    resear ch is under taken on-farm . The l inkages be tween resear chers and

    extens ion worker s seem very weak or n on-exis tent . As a r esul t the dif fus ion of

    developed tech nologies has been extr emely l imited.25

    25 For more in format ion on farm er par t ic ipatory re searc h see fo r ins tance Mart in and

    Sherington, 1996; KIT, 1994; KIT, 1996.

    Box 8: A farmer from Tapovan speaks his mind

    No, I do not want to discuss medicinal plants. Why not?

    They don t allow me to go to t he forest. I am scared to

    go. Even our t raditi onal healer is scared, afraid t hat t hey

    will catch him . Our healers have collected a lit tle o ver

    generations for our ow n use, but now the authorities put

    us in prison. Why? This decline of medicinal plants is

    certainly not our fault. I asked for a permit to start

    cultivating tw o years ago, I had to pay 2000 rupees to t he

    Forest d epartment . Every time I go t here they t ell me: It

    is in process. I want to cultivate, for the market, for my

    own use and to preserve our cultur e. My kid s have never

    seen Atisand it is such a useful plant. I don t understand.

    Why can t I grow medicinal plants on my own farm?

    What is the harm?

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    E) PLANTING MATERIAL

    A number of fa rm ers m ent ioned a ser ious shor tage of the plant ing mater ia l

    requir ed for cul t iva t ion. This could prev ent la rge-sca le cul t iva t ion even when

    farm ers a r e inte res ted. For example , fa rmer s f rom Ghes Village , Chamoli

    dis t r ic t , a re inte res ted in

    cultivating Kut ki and Atis, but

    larg e-scale cultivation of these

    plants has not been p oss ible

    s ince only a small amount of

    planting material is available.

    Farm ers a lso ment ioned tha t the

    plant ing mater ia l supplied by

    governm ent agencies was of poor

    quality. For ex amp le, in a

    numb er of ins tances in Tapovan,

    Kuth seeds fa i led to germinate .

    The f a rmer s a t t r ibu ted th is to

    the poor qual i ty of the seeds

    provided by the co-opera t ive .

    F) H IGH RISK AND LONG GESTATION PERIOD

    Many fa rmer s in U t ta ranchal

    opera te sm all landholdings and

    have l i t t le capacity to take on th erisk s involved in cultivating a

    new cr op. Moreover , many

    medic ina l plants r equire a long

    ges ta t ion per iod before they can

    be harves t ed; for example , Kuth

    r equi re s a min imum of th ree

    years . Small fa rm ers a r e unable

    to inves t and wai t such a long

    pe r iod for r e turns .

    4.3 HAPPRC: A success story

    The H igh Alt i tude Plant Physiology Research Centre (HAPPRC) is a r esearch

    ins t i tute be longing to Gar hwal Univers i ty in Sr inagar . The Centre has a long

    tradi t ion of botanica l resear ch for mounta in a reas . In recen t years th e Centre

    has focused on a numb er of importan t medic ina l plants in Utta r anchal . I t has

    developed an d diffused cu ltivation technology. One of its impor tant act ivities is

    to promote K u t k i cultivation in Chamoli distr ict.CULTIVATING

    A

    HEAL

    THY

    ENTERPRISE

    42

    Box 9: A f armers viewpoint

    A Ghes farmer and communit y leader explains the

    HAPPRC init iat ive:

    When I retired from the army I went back home, and

    start ed farm ing. Our area is very remot e; someti mes the

    price we receive for our pot atoes is lower t han the

    transport costs. Our soil is not very ferti le. Growing

    medicinal plants would be a good opt ion f or us. Through

    HAPPRC we have entered int o a contract-farmin g

    scheme. The industry has agreed to buy all we harvest

    and at a guaranteed minim um price. They initially

    off ered us an advance but we ref used. We do not want

    to be too dependent. HAPPRC provides us with technical

    knowledge and seeds. They are also organising an

    org anic far min g cert if icate. HAPPRC acts as an

    interm ediary betw een the industry and us. Because our

    project is still in an experimental phase HAPPRC agreed

    that w e could use their permit f or the cultivation of

    medicinal plants. We farmers applied for a permit

    ourselves some t ime ago but not hing has come of thatyet. So f ar, we are very positi ve about cult ivating

    medicinal plants. The plants are doing very w ell, no

    problem with pests and diseases. Profit prospects are

    good, certainly when compared to our traditional crop

    pot ato. The plants are scatt ered over the f arm, mostly

    planted on wasteland, land that is not cultivated. Besides

    KutkiI have also planted Kuth, and a bit of Atis. I plan to

    extend w ith more species. We will harvest our f irst crop

    next year.

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    M

    EDICINAL

    PLANTSIN

    CHAM

    OLI

    MAIN

    RESEARCH

    FINDING

    S

    43

    HAPPRCs e f for ts to promote the cul t iva t ion of K u t k i dif fer f r om s imilar

    a t tempts by other agencies . Farm ers a r e given compr ehensive suppor t , not onlytechnica l , but a lso in mar ket ing. Taking a fa r ming sy s tem s approach the Centre

    provides plant ing mater ia l and t r a ining to fa rm ers . Most important ly, they have

    arr anged a buying contrac t with a comm ercia l company with a commitment to

    purch ase the comple te pr oduct ion of Kutk i a t a gua ran teed m in imum pr ice .

    This has been done through a t r i -par t i te agreement be tween the fa r mer s , the

    company and the Centr e .

    The f a rmers a re ve ry sa t is f ied w i th the a r r angement a s they have an ensured

    and pr of itable market out le t for th e ir product . Industr y is sa t is f ied as a supply

    of high qual ity r aw mater ia l is ensured. The Centre ben ef i ts s ince its

    technology is be ing tes ted on-farm , and more l ike ly to be adopted by far mer s .

    Based on this exper ience the Centre is consider ing expanding the schem e to

    other m edic ina l plants such as Atis ,Ja tam ans i26 and Chirata27.

    The H APPRC case shows tha t cul t iva t ion can s t i l l be a viable s t r a tegy pr ovided

    var ious constra ints a re rem oved. As the yie lds and pr of itabi l ity of major cash

    crops dec l ine fa rmer s a re keen to shif t to a lte rn a t ive c rops . In fac t many

    farm ers showed interes t in cul t iva t ing medic ina l plants . However , in order for

    this to be a viable opt ion, major chang es in pol ic ies a re r equired. These ar e

    discusse d in the following chap ter.

    26 Nardostachys grandiflora .

    27 Swertia chirayita .

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    CONCLUSIONS

    AND

    PO

    LICY

    RECOMM

    ENDATION

    45

    5 Conclusions and policy recommendations

    5.1 Gene ral conclusions

    Medic ina l plants have an import ant r ole to play in agr icultura l diver s i f ica t ion,

    and can gener a te income and employment . The agr o-c l imat ic condi t ions in

    Uttaranch al par t icular ly sui