Trends in the marketing of some important medicinal plants in Uttarakhand, India

Abstract

Cultivation of threatened medicinal plants and sustainable harvesting of minor forest products is important for the conservation of rare species and improvement of rural economies. An analysis of the trends in marketing of four medicinal plants was conducted in Uttarakhand, India from 2007 to 2010; two cultivated (Saussurea lappa and Picrorhiza kurrooa), and two off-farm harvested medicinal plants (Sapindus mukorossi and Cinnamomum tamala). Data on volumes harvested and marketed was obtained from the Herbal Research and Development Institute and the Herbal Pharmaceutical Development Unit. Despite the low volume produced from the two cultivated species (on average 4.19 MT/year) compared to over 600.00 MT/year for the two off-farm species, they were marketed at better prices as compared to the off-farm harvested species: about 3.0 US$/kg as opposed to almost 0.50 $/kg. The total annual value of the cultivated species was almost 11.000 $/year and 290.000 US$ for the off-farm harvested species (based on sustainable use levels).

In general, harvesting rates of all selected species increased in the years studied. The cultivated Saussurea lappa and Picrorhiza kurrooa are among the rare but globally significant medicinal plants, therefore, cultivation of these herbs is important for their conservation. Considerable quantities of Sapindus mukorossi and Cinnamomum tamala are marketed and these species seems to be pivotal for improvement of the rural economy.

Little information is available on the policies for documentation of cultivation, sustainable harvesting, and trends in the marketing of medicinal plants from Indian Himalayan region (IHR). This communication is therefore important to understand the trends in the use of the selected species in the Uttarakhand, IHR.

Keywords:

• medicinal plants
• CITES species
• cultivation
• marketing
• registration
• ecosystem services

Introduction

Medicinal plants are categorized as provisioning ecosystem services with direct economic value (Maestre Andrés et al. 2012). Still, global trade of medicinal plants depends on the extensive collection from the wild (Olsen 1998; Gusain et al. 2009). Unskilled collection and over-exploitation are key threats for extended dwindling status of important temperate medicinal plants (Bhadula et al. 2000). Mountain agro-ecosystems also offer convenient ways for the harvesting of minor forest products (having medicinal value) without transforming these well-acclimatized ecosystems (Rao et al. 2004). Cultivation of medicinal plants is useful for reducing the pressures on wild plants and improvement of rural economy (Hamilton 2004). However, problems arising from cultivation of medicinal plants also need to be addressed to avoid a setback in such traditional practices (Kuniyal et al. 2005). Also, the conservation and management plans for medicinal plants should be based on empirical data rather than the estimates (Larsen & Olsen 2007). Meager information is available on the cultivation and trade of medicinal plants in the Indian Himalaya (Kuniyal et al. 2005; Gusain et al. 2009). However, information is available on the estimated demands and supply of the medicinal plants in India (Ved & Goraya 2008). Uttarakhand, India (53,485 km²) was founded as a small hill state on 9 November 2000. Sustainable development of medicinal plants for regional socio-economic development is one of the policy-related priorities of the state. From 2001 to 2011, Herbal Research and Development Institute (HRDI) was designated as a nodal agency and the ad-hoc State Medicinal Plants Board (SMPB) of the state for coordinating the developments in medicinal plants sector. Later on, with the establishment of SMPB, HRDI is working as an associate of SMPB. In this Indian hill state, the policies for conservation, development and harvesting (CDH), documentation of cultivation, and facilitation of marketing of medicinal plants are well developed ( Important government… 2005). In this short paper, we discuss the trends in the marketing of the four species: Saussurea lappa syn. S. costus (costus roots or Kuth), Picrorhiza kurrooa (hellebore or Kutki), Sapindus mukorossi (soap nut or Reetha), and Cinnamomum tamala (Indian bay leaf or Tejpat), and the intervention or policies for documentation of cultivation and facilitation for marketing.

As per the policy of state government and on the basis of the physical verification of cultivation (area and crop) of medicinal species, the medicinal plant growers of the state are registered by HRDI. Also, if naturally any plant species of medicinal value is growing within the surroundings of legally owned agricultural and other lands of the farmers or villagers (in this communication it is termed as off-farm); it is also registered under their ownership. Estimates for the probable quantity of the material to be produced are made on the basis of cultivation in the unit area and according to the gestation period. Estimates for minor forest produce (medicinal) that has to be harvested from off-farm premises are made on approximately standing biomass and material to be harvested through sustainable harvesting. It may vary for different species and parts of the plants such as fruits or seeds and leaves. HRDI is also authorized for issuing a so-called ‘transit pass’ (official permission for marketing of cultivated or harvested medicinal plants produce) to the growers. Transit pass is issued on the basis of estimated production as mentioned in the registration. However, in order to facilitate the farmers or growers and traders in the remote areas and in the entire state, HRDI had delegated this authorization to the Herbal Pharmaceutical Development Unit or HPDU (also called as the Bhesaj Vikas Ikai, a cooperative department of state government). On the other hand, transit pass for minor forest products of medicinal utility that has to be collected from forest areas is issued by the Department of Forest. Thus, in Uttarakhand, the dual transit pass issue procedure is in existence. In India, Uttarakhand is the pioneer state, where cultivation, sustainable collection, and marketing of medicinal plants are properly documented on prescribed formats. Development of agro-techniques, addressing policy, and legal issues and evaluation of constraints in the cultivation of rare and endangered, and other medicinal plants, has proven the effectiveness in the growth of herbal sector (Nautiyal et al. 2001; Domestic market study… 2009[IS38873]). During 2006–07 to 2012–13 a total of 3419 transit passes were issued to the different growers for marketing of approximately 4939 MT, medicinal plants raw material belonging to almost 18 to 22 species. The value of this material was almost Rs 92,625,000 or US$ 1,684,703¹ [VVII4](official database of the HRDI).

The four selected species are among the important temperate medicinal plants ( Chakraborty & Das 2010; Robinson et al. 2010; Ghagi et al. 2011). According to an estimate (Ved & Goraya 2008; Domestic market… 2009), annual demand of these species in the Indian herbal pharmaceutical industry is around 250.00 to 1000.00 MT (Table 1). Information on marketing of selected species will be useful for understanding the current trends in availability and prices. This information will also be useful in the development of appropriate value addition methods, setting of cultivation priorities and determining sustainable harvesting strategies.

Table 1. Overview of medicinal importance and other facts of selected plant species

Botanical name (English name/trade name/ vernacular name and family)	Medicinal importance	Parts in commerce and approximate annual demand in India	Sources of raw material	Methods for cultivation or plantation	Status
Saussurea lappa (Decne) Sch. Bip., Syn. S. costus C. B. Clarke) (Costus roots, Kuth, Asteraceae)	Main ingredient of the medicines prepared for skin disease	Roots, annually 100.00–200.00 MT ^a. From 2007 to 2009, 132.50 MT material was consumed by domestic herbal market of India	Cultivation at 2400–2800 m asl, on an average basis 35.00 MT roots may be produced in a hectare	Propagated through seeds, 2–3 years gestation period, it may cultivated in specific locations only	Globally endangered, enlisted in Appendix I of CITES, certificate of cultivation is required for marketing, mass scale cultivation is useful for conservation and sustainable supply
Picrorhiza kurrooa Royle ex Benth. (Hellibore, Kutki, Scrophulariaceae)	Well known hepato-protective herbal drug and also useful in the cure of diabetes	Stolen and roots, 200.00–500.00 MT, from 2007 to 2009, 650.46 MT material was consumed by domestic herbal market	Cultivation at 2400–2800 m asl, on an average basis 5.00 MT stolen and roots may be produced in a hectare	Propagated through vegetative methods (through stolen cutting), 2–3 years gestation period, could be cultivated in the specific locations only	Globally endangered, enlisted in Appendix II of CITES, mass scale cultivation is useful for conservation and sustainable supply
Sapindus mukorossi Gaertn. (Soap nut, Reetha or Ritha, Sapindaceae)	Mostly used in herbal shampoo and soaps due to antidandruff properties. It is also a psycho-medicinal plant	Fruits, annual demand 200.00–500.00 MT, annual consumption by Indian domestic herbal market was around 182.00 MT	In majority it is harvested from the trees growing in off-farm premises (from 700 to 2000 m asl), some of the current supply is from existing plantation	Propagated through seeds, one1–-2 year old seedlings are planted, fruits may be harvested after 8 to 10 years old trees, production per unit area/ trees is not estimated	Mass scale plantation needs to be encouraged, population status is yet not assessed for determining sustainable harvesting
Cinnamomum tamala Nees. (Indian Bay leaf, Tejpat, Lauraceae)	Mainly used as spice, however, recently proved its utility in the cure diabetes. Also useful in treating cold and cough	Leaves, annual demand 500.00 to 100.00 MT, data on absolute supply or consumption is not available.	Off-farm Harvesting is in practice (along 1000 to 2000 m asl), majority of current supply is from existing random plantation	Propagated through seeds, 2-3 years old seedlings are planted, leaves may be harvested after 7 to 9 years of plantation, production per unit area/trees is not estimated	Mass scale plantation needs to be encouraged, population status is yet not assessed for determining sustainable harvesting

Note: ^aMT: Metric ton (1.00 MT = 1000.00 kg.)

Materials and methods

Facilitation for marketing of medicinal plants

In each of the districts of Uttarakhand, transit passes for marketing of cultivated and harvested material are issued to the registered farmers or growers. None of the ‘Royalty’ (the nominal facilitation charges, as charged by Department of Forest for the material harvested from forest areas) is charged for obtaining the transits pass for registered material. Forest Development Corporation (FDC a department of state government) had established three Mandis (collection centers) at Rishikesh, Tanakpur, and Ramnagar for buying cultivated and harvested materials through open auction. At the interval of 15 days, open auction (buying from growers and further selling) is arranged at collection centers. The information about scheduled auction is regularly disseminated through open advertisements. The prices for particular species are offered by participating traders and registered growers; only those who have valid transit pass with mentioned quantity of raw materials either from cultivated or off-farm sources can sell it[IS38876]. The rates for the selected species may vary at different Mandis, because the participating traders will be different or the demand of national level Mandis, where this material will be sold further may vary. Open auction is coordinated by the official of FDC, and quantities and prices of all the materials auctioned are noted by the officials of FDC and HPDU. Annual information on medicinal plants marketed through this procedure is documented by the HPDU.

Marketing data

Information on the total quantity of Saussurea lappa (roots), Picrorhiza kurrooa (stolen including roots), Sapindus mukorossi (fruits for fruits shell), and Cinnamomum tamala (leaves) marketed from entire state, and the rates (Rs/kg) in the years 2007–08, 2008–09, 2009–10, and 2010–11 at different Mandis were obtained from HPDU. Marketed quantity of selected species which was documented in kilogram (kg) was converted into metric ton (metric ton: MT = 1000 kg). The rates per kilogram for selected species in different Mandis and in different years were averaged. Obtained data were analyzed for comparative assessment of total monitory value, i.e. multiplying total quantity marketed (in kg) with the unit rates (in Rs). Variation in recent prices and quantity was determined through dividing recent value (in 2010) by first value (in 2007). A value of more than 1.00 was considered as increment and less than 1.00 was considered as reduction. For comparative purpose, the values in Rs were converted to US$

Results

An average of 2.76 Metric ton (MT) roots of Saussurea lappa and 1.43 MT stolen roots of Picrorhiza kurrooa were marketed each year from 2007 to 2010 (Table 2). The annual harvest from the off-farm species was much higher: on average 207.10 MT fruits of Sapindus mukorossi and 407.17 MT leaves of Cinnamomum tamala were marketed during these years (Table 2).

The marketed quantity of Saussurea lappa was 7.11 MT (max.) in 2008, while the quantity of Picrorhiza kurrooa was 0.44 MT (min.) in 2009. Also, in the year 2009, the marketed quantity of Sapindus mukorossi was least (143.33) MT as compared to the other years. In the years 2007, 2009, and 2010, marketed quantity of the Cinnamomum tamala was comparable (Table 2). In general, the marketed quantity of cultivated plants was much less in these years compared to the materials harvested from off-farm plants (Table 2).

Table 2. Yearly trends in the marketing of two cultivated (1,2) and two off-farm medicinal plants (3,4) in Uttarakhand, India

S. No.	Species (products of commercial utility)	Years								Average (2007 to 2010)
		2007		2008		2009		2010
		Total quantity marketed (MT) ^a	Average rates; Rs/kg ^b (total value; Rs)^c $ ^d	Total quantity marketed (MT)	Average rates; Rs/kg (total value; Rs) $	Total quantity marketed (MT)	Average rates; Rs/kg (total value; Rs) $	Total quantity marketed (MT)	Average rates; Rs/kg (total value; Rs) ($)	Quantity marketed (MT)	Rates; Rs/kg ($)
1	Cultivated: Saussurea lappa (Roots)	1.20	77.38	7.11	53.00	1.32	90.00	1.41 ^e	120.00	2.76	85.10 )
			(92,856.00)		(37,68,630.00)		(1,18,800.00)	(+1.18)	(1,69,200.00) ^f		(1.60
			1744.10		70,785.69		2231.40		3178.06 (+1.55)
2	Cultivated: Picrorhiza kurrooa (Stolen and roots)	2.85	98.00	1.32	200.00	0.44	300.00	1.09 (–.38)	375.00	1.43	243.25
			(2,79,300.00)		(2,64,000.00)		(1,32,000.00)		(4,08,750.00)		(4.57)
			5246.06		4598.68		2479.34		7677.50 (+3.83)
3	Off-farm: Sapindus mukorossi (Fruits)	154.30	14.50	311.99	14.59	143.33	30.00	218.79 (+1.42)	45.00	207.10	26.02 (0.49)
			(22,37,350.00)		(45,51,934.00)		(42,99,900.00)		(98,45,550.00)
			42,023.85		85,498.38		80,764.46		1,84,927.69 (+3.10)
4	Off-farm: Cinnamomum tamala (Leaves)	424.70	21.03	270.94	21.00	499.40	26.08	433.64 (+1.02)	28.90	407.17	24.25 (0.46)
			(89,31,441.00)		(56,89,740.00)		(1,30,24,352.00)		(1,25,32,196.00)
			167,758.10		106,869.65		244,634.71		235,390.61 (+1.37)

^a MT: Metric ton (equal to 1000.00 kg).

^bRs / Kg: Rupees (Indian National Rupees) per Kilogram.

^cTotal value: Total quantity (in kg.) multiplied by rates per kg (Rs).

^d$: US Dollar (1.00 US$ = Rs 53.24, as on 16 November 2012).

^eVariations in the quantity marketed in 2010 as compared to 2007.

^fIncrements in the prices in 2010 as compared to 2007.

The prices for cultivated material of Saussurea lappa and Picrorhiza kurrooa were however much higher than for materials from Sapindus mukorossi and Cinnamomum tamala (Table 2). However, it is important to note that, the price of Saussurea lappa was less in 2008 while the marketed quantity of this species was maximum in this year. The quantity of Picrorhiza kurrooa was observed to have decreased (−0.38 times) in the year 2010 as compared to 2007 (Table 2). Generally, the marketed quantities of Saussurea lappa, Sapindus mukorossi, and Cinnamomum tamala increased in 2010 as compared to 2007 (Table 2). Average prices (per kg) of Saussurea lappa and Picrorhiza kurrooa were Rs 85.10 (US$ 1.60) and 243.25 (4.57), respectively in these 4 years. However, the average rates of Sapindus mukorossi and Cinnamomum tamala during 2007 to 2010 were Rs 26.02 and 24.25 (or less than 0.50 US$). It was also evaluated that the cultivated and CITES listed species such as Saussurea lappa and Picrorhiza kurrooa fetch on average between 2.76 and 7.73 times higher prices (per kg) as compared to the Sapindus mukorossi and Cinnamomum tamala (Table 2). However, a clear increment in the prices of all species was observed in 2010, if it is compared with the prices in 2007 (Table 2). Cultivation and marketing of Saussurea lappa provided between 1744 (2007) and 70,785 US$ (2010) in these years, while cultivation and marketing of Picrorhiza kurrooa provided between 2479 (2009) and 7677 US$ (2010). Marketing of the harvested off-farm material from Sapindus mukorossi and Cinnamomum tamala provided much higher values: 42,023 (2007) to 244,634 US$ (2010). The prices of all species increased nearly 1.37 to 3.83 times from 2007 to 2010 (Table 2). The total annual value of the cultivated species was almost 11.000 $/year and 290.000 US$ for the off-farm harvested species (based on the sustainable use levels).

Discussion

The quantity of selected species marketed during 2007 to 2010 either from cultivated or harvested sources showed inconclusive trends. However, the rates (per kg.) were generally increasing in subsequent years. Based on the trends in marketing of Saussurea lappa and Picrorhiza kurrooa, these species may be categorized as low-volume and high-value medicinal species of Uttarakhand (Figure 1 A and B). Saussurea lappa and Picrorhiza kurrooa are enlisted in the appendices I and II of Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES 2012). Prohibitions on wild harvesting of S. lappa and P. kurrooa and their possible cultivation at higher elevations ( > 2400 m a. s. l.) make them attractive optional cash crops. Because of attractive returns provided by these species, some farmers of remote villages of Uttarakhand had started their cultivation (Figure 1 A and B). Cultivation of CITES species, i.e. S. lappa and P. kurrooa is encouraging for the conservation as well as it will be a valuable optional activity for improving rural livelihood. Constant supply of S. lappa and P. kurrooa from cultivated sources has encouraged the government of Uttarakhand for fixing minimum procurement prices for these species. In 2011, the buying prices for S. lappa and P. kurrooa have been fixed to Rs 150.00/kg and Rs 425.00/kg, respectively. Low volume–high value and export potential of these two species is a considerable fact for their unique status of highly in demand temperate medicinal plants in the herbal pharmaceutical industry (Ved & Goraya 2008[IS38879]). Cultivation of threatened medicinal plants is anticipated as a useful tool for conservation of germplasm of threatened, but potential species (Dhar et al. 2002). Frequent availability of S. mukorossi and C. tamala may be a reason for their consistently low prices. In addition, other species of Cinnamomum such as C. zeylanicum is valued more than C. tamala, so this could be another reason for its low rates. However, in terms of economic benefits or regional economic developments, sustainable collection of frequently available species (from off-farm) such as Sapindus mukorossi and Cinnamomum tamala may be worthwhile (Figure 1 C and D).

Figure 1. Cultivation of Saussurea lappa (A), Picrorhiza kurrooa (B), Sapindus mukorossi (C), and Cinnamomum tamala (D) in the remote villages of Uttarakhand. Product marketed from the respective species are shown in the inset.

Saussurea lappa is a useful species for the preparation of medicines used in the treatment of skin diseases (The wealth of India… 2003a). Picrorhiza kurrooa is valued as the ingredient of several herbal medicines (The wealth of India… 2003b). Sapindus mukorossi is used for the preparation of detergents and antidandruff shampoo ( The wealth of India… 2003c). The leaves extract of Cinnamomum tamala also acts as useful anti diabetic agent (Chakraborty & Das 2010). Cultivation of S. lappa and P. kurrooa will help in conservation while, mass scale plantation of S. mukorossi and C. tamala will be useful in sustainable supply of minor forest products. However, if the promotion in marketing becomes weak and more attractive crops are adopted by farmers, cultivation of medicinal plants may face setback. Such a setback has been observed in the case of traditional cultivation of Saussurea lappa in cold desert environment of western Himalaya (Kuniyal et al. 2005). Processing of medicinal products either through powdering, distillation, or suitable drying at a small scale or community level will be able to provide a viable return (Maikhuri et al. 2007). In future, if the collectors could be encouraged for cultivation, the likelihood for reducing over-exploitation and adopting cultivation will be higher (Schippmann et al. 2005).

The annual harvest of S. mukorossi and C. tamala from off-farm was higher during the study years. Therefore, attempts for value addition in the crude materials of these species at the collectors’ level will be an advantage for receiving higher prices. Mass-scale cultivation of low-volume and high-value threatened species can be effective for enhancing conservation and to obtain economic benefits. For this purpose, valid data on the trends in marketing of medicinal plants is important to help envision options for value-adding strategies and for effective implementation of conservation and management plans.