Indian herbal exports expected to reach 3 billion US dollars by 2012

India's export of herbal products and medicines has the potential to reach 3 billion U.S. dollars by 2012 from the current 0.75 billion dollars with the creation of exclusive export promotion zones (EPZ) across India, Indo-Asian News Service (IANS) said on Thursday.

Herbal product exports can be accelerated with the setting up of EPZs in about 12 Indian regions as their demand soars at a rate of over 25 percent in countries like the United States, Britain, Spain, Australia, Russia and Indonesia, the report said, quoting a study "Future of Herbal Exports" conducted by the Associated Chambers of Commerce and Industry of India (Assocham).

The study noted that India, followed by China, is the largest producer of medicinal plants, having more than 40 percent of global diversity. However, India's global market share is a paltry 2.5 percent against China's 13 percent.

The leading producers of medicinal plants in India are areas of Gujarat, Rajasthan, Haryana, Tamil Nadu, Andhra Pradesh and the Himalayan range, which together account for 75 percent of India's total herbal medicine exports.

According to Assocham, if EPZs having facilities like research and development are set up in these states then India would be able to accelerate its exports to the expected level within the next five years.

IANS quoted Assocham president Venugopal Dhoot as saying that this will be particularly so because in countries such as the United States, Britain, Spain, Australia, Russia and Indonesia, the urge for herbal medicines has been rising due to their quality ingredients, availability factor and price competitiveness with virtually little side effects.

The study listed medicines that command huge demand and are produced based on international quality standards. These include psyllium husk, sema leaves and pods, sandalwood chips and dust, jojoba seeds, psyllium seeds, pyrethrum, basil, hyasop, rosemary safe, svory, galangal rhizonmes and roots.

Source: Xinhua