Indian Trade in Medicinal and Aromatic Plants

Chapter 7

Indian Trade in Medicinal and Aromatic Plants

INTRODUCTION

Recently there has been a shift in universal trend from synthetic to herbal medicine, which we can say ‘Return to Nature’. Medicinal plants have been known for millennia and are highly esteemed all over the world as a rich source of therapeutic agents for the prevention of diseases and ailments. Nature has bestowed our country with an enormous wealth of medicinal plants; therefore, India has often been referred to as the medicinal garden of the world. Countries with ancient civilizations, such as China, India, South America, Egypt, etc., are still using several plant remedies for various conditions. In this regard, India has a unique position in the world, where a number of recognized indigenous systems of medicine, viz. Ayurveda, Siddha, Unani, Homeopathy, Yoga and Naturopathy are being utilized for the health care of people. No doubts that the herbal drugs are popular among rural and urban community of India. The one reason for the popularity and acceptability is the belief that all natural products are safe. The demand for plant-based medicines, health products, pharmaceuticals, food supplement, cosmetics, etc., are increasing in both developing and developed countries due to the growing recognition that the natural products are nontoxic, have less side effects and easily available at affordable prices. Nowadays, there is a revival of interest with herbal-based medicine due to the increasing realization of the health hazards associated with the indiscriminate use of modern medicine, and the herbal drug industries is now very fast growing sector in the international market. But unfortunately, India has not done well in this international trade of herbal industry due to lack of scientific input in herbal drugs. So, it would be appropriate to highlight the market potential of herbal products that would open floodgate for development of market potential in India. With these objects, we reviewed here the market potential of herbal medicine in India.

The export of medicinal plants and herbs from India has been quite substantial for the last few years. India has a large endemic flora. There are more than 80,000 medicinal plantsknown, and nearly 180 plant-derived chemical compounds have been developed as modern pharmaceuticals, which are included in the Pharmacopoeia of India. The domestic ayurvedic market is estimated to be US$ 1 billion, and is growing at the rate of 15–20% annually. India has been the major supplier of medicinal plants in the world market until 1977, when it was kept to second position by South Korea with export worth only Rs. 16 crore during 1978–79. The quantum of export had dropped to almost half of what it was in 1976–77 when India exported medicinal plants worth around Rs. 29.8 crore. The items of export value were opium, psyltium husks and seeds, Vinca rosea, kuth roots and senna leaves and pods. At present the annual trade of Indian medicinal plants is estimated to be 37,200 tonnes valued around US$ 93,540,272.00, which is expected to be increased to US$ 629,194,624.00 by 2005. During 1980s, India was the largest supplier of medicinal plants to the world market with the supply of 10.555 metric tonnes of medicinal plant material and about 14 metric tonnes of plant-derived products and their derivatives. The annual turn over was around US$ 300 million. In 1995, psyllium husk, seeds and senna were the main export items from India. During 1998–99, India exported psyllium husk worth US$ 19.6 million and senna leaves worth US$ 22.4. India also exported finished ayurvedic and unani medicine during the year 2000–01. It exported medicine worth around US$ 128 million to various countries including United States, Germany, Russia, UK, Hong Kong and Malaysia.

The global herbal industry is estimated to be US$ 50 billion annually and growing at the rate of 5.5–6.5% annually. The Indian contribution to the global industry is around 10% only. One of the important items of export, covering approximately 80% of the world requirement, is a proteolytic enzyme, papain mainly manufactured in Maharashtra from raw papaya fruits. The commercial production of pectin from thalmus of sunflower is also carried out at Jalgaon in Maharashtra.

India is one of the few countries in the world where essential oils industry was developed at a very early stage.

The essential oils, perfumes and flavours have been associated with Indian civilization for several thousand years. Because of its vast area and a variety of soil and climate, essential oils containing plants of all types can be grown in one or the other parts of the country. India produces essential oils from wild and commercially grown plants in appreciable quantities such as palmarosa, citronella, calamus, cardamom, celery seed, cedarwood, dill, ginger, lemon grass, vetiver and rose oil. The annual production of coriander is about 243,000 tonnes, which constitute approximately 80% of the world demand. About 30% of global demand in cardamom and 15% in saffron are met by India. The annual production of saffron is approximately 150 tonnes.

The most significant export is of the sandalwood oil, for which our country is the major producer, exporting approximately 50–60 tonnes to the world market. India is a leader in the production of menthol as mentha oil steadily expanded in the last decade during the year 2000–01. India exported about 3,870 tonnes of mint oil worth about Rs. 1.26 billion. India is also a leader in the production and export of high value perfumes (attars) for the world market.

The domestic market of Indian traditional system of medicine comprising of ayurveda, unani, siddha and homeopathy has been reported to the tune of approximately Rs. 5,000 crore only, and India is at present exporting herbal medicines and materials to the value of about Rs. 550 crore only. In the domestic market, the ayurvedic medicines account for a major portion, about 85% as compared to unani, siddha and homeopathy system. The total patent and proprietary medicines of these systems are manufactured by over 9,500 licensed pharmacies/herbal manufacturing units spread all over India.

With the development of phytochemical industry in India, domestic requirement for various medicinal plants grew considerably. Consequently, the Govt. of India has adopted restrictive export policy in respect of those crude drugs, which were indiscriminately exploited in the forest, such as rauwolfia, podophyllum, Indian rhubarb, dioscorea, kuth, jatamansi, Atropa acuminata, Artemisia brevifolia, berberis, colchicum, Ephedra gerardiana, Gentiana kurroa, Picrorhiza kurroa, Swertia chirata, Valerian wallichii, etc. However, with due permission from the Chief Conservator of Forest or officer authorized by him; the material of plantation or of nursery origin certificate can be exported.

These medicines are mainly consumed within the country and some of these are also exported to the Middle East. Major destination countries are the United States, Nepal, Japan, Sri Lanka, Russia, Germany, Italy, Nigeria and UAE, and according to the survey reports, Sri Lanka, Egypt, Bangladesh and Mauritius are the countries having maximum export potential.

The major pharmaceuticals exported from India in the recent years were isabgol, vinca extract, senna derivatives, castor oil in dehydrated form, beta ionone, papain, berberine hydrochloride and opium alkaloids.

India’s export of essential oils during last few years has shown the erratic trends. The sandalwood oil share is morethan 50% in the total export; the United States accounted for major share of exports of this item followed by USSR. The mentha oil has the same export trend as the cheaper quality is being exported by China. India is also exporting volatile oils to France, Japan, Sudan, Germany and Switzerland. The other important items of export value are cardamom oil, lemon grass oil, palmarosa oil, pudina oil, peppermint oil, clove oil, geranium oil, vetiver oil and lavender oil.

INDIAN HERBAL TRADE IN WORLD SCENARIO

The utilization of herbal drugs is on the flow, and the market is growing step by step. The annual turnover of the Indian herbal medicinal industry is about Rs. 2,300 crore as against the pharmaceutical industry’s turnover of Rs. 14,500 crore, with a growth rate of 15%. The export of medicinal plants and herbs from India has been quite substantial in the last few years. India is the second largest producer of castor seeds in the world, producing about 125,000 tonnes per annum. The major pharmaceuticals exported from India in the recent years are isabgol, opium alkaloids, senna derivatives, vinca extract, cinchona alkaloids, ipecac root alkaloids, Solas dine, Diosgenin/16DPA, menthol, gudmar herb, mehndi leaves, papian, rauwolfia, guar gum, jasmine oil, sandalwood oil, etc. The turnover of herbal medicines in India as over-the-counter products, ethical and classical formulations and home remedies of traditional systems of medicine is about US$ 1 billion and export of herbal crude extract is about US$ 80 million. The herbal drug market in India is about US$1 billion. Some of the medicinal plants, whose market potential is very high, have been identified and summarized.

 MEDICINAL PLANT-BASED INDUSTRIES IN INDIGENOUS SYSTEM OF MEDICINE

In India, it is estimated that there are about 25,000 licensed pharmacy of Indian system of medicine. Presently, about 1,000 single drugs and about 3,000 compound formulations are registered. Herbal industry in India uses about 8,000 medicinal plants. Table 7.2 contains some important manufacturer of herbal formulation. However, none of the pharma has standardized herbal medicines using active compounds as markers linked with confirmation of bioactivity of herbal drugs in experimental animal models. From about 8,000 drug manufactures in India, there are however not more than 25 manufactures that can be classified as large-scale manufactures. The annual turnover of Indian herbal industry was estimated around US$ 300 million in ayurvedic, and unani medicine was about US$ 27.7 million. In 1998–99, it again went up to US$ 31.7 million and in 1999–2000 of the total turnover was US$ 48.9 million of ayurvedic and herbal products. Export of herbal drugs in India is around US$ 80 million. Some of the highly consumed medicinal plants are presented in the Table 7.3 with reference to their turnover. Figure 7.1(a–d) are the graphical representation of some highly consumed Indian medicinal plants vs. estimated consumption per annum (in Tonnes).

Important Indian medicinal plants vs. estimated consumption per annum (in tonnes)

Important Indian medicinal plants vs. estimated consumption per annum (in tonnes)

 Important Indian medicinal plants vs. estimated consumption per annum (in tonnes)

EXPORT POTENTIAL OF INDIAN PHYTO-PHARMACEUTICAL PRODUCTS

Indian phyto-pharmaceutical products, which are in demand in the international market for their quality and potency, are:

• Artemisinin: This is sesquiterpene lactone obtained from herb Artemisia annua, family Asteraceae, effective in treating malaria including cerebral malaria. 

• Berberine hydrochloride and berberine sulphate: This is benzyl Iso quinoline alkaloidal salt obtained from Berberis spp. viz. B. Aristata, B. vulgaris. It is used as tonic astringent, febrifuge, hepatic dysfunction, diabetes and in gastroenteritis. 

• Colchicine: This is a yellowish benzyl tetra-hydroisoquinoline type alkaloid, obtained from many species of Colchicum (e.g., C. luteum., C. speciosum) and also from genera Androcymbium, Gloriosa, Iphigenia, Littonia and sanders onia. It is used to relieve gout and rheumatic problems. 

• Diosgenin, Hecogenin and Solasodine: These are natural steroidal sapogenins, obtained from Dios Corea species (e.g., D. deltoidei, D. Mexicana, D. Compositae and D. floribunda); Agave spp. and Solanum spp. respectively used in various hormonal preparations including birth control pills. 

• Ephedrine: It is a Proto alkaloid obtained from various spp. of Ephedra (Ma-Huang) and may also be prepared by synthesis. It is used for the relief of asthma and hay fever.

• Hyoscine and Hyoscyamine: These are tropane alkaloids obtained from D. stramonium, Hyoscyamus Niger and H. muticus. It is used as sedative in preoperative medication before the induction of an aesthesia and in ophthalmic practice to dilate the pupil of the eye. 

• Morphine, Codeine and Papaverine: These are the opium alkaloids obtained from the latex of Papaver somniferous. It is used as a pain killer (morphine) and antitussive (codeine). 

• Psoralen: This is furanocoumarin obtained from Psoralea corylifolia. It is used in leucoderma and skin problems. 

• Quinine and Quinidine: These are quinoline alkaloids obtained from various spp. of Cinchona bark used as antimalarials. 

• Reserpine, Ajmalicine: These are the indole alkaloids obtained from Rauwolfia serpentine, used to treat hypertension and as a vasodilator. 

• Rutin: This is yellow colored crystalline flavanol glycoside obtained from buckwheat, i.e. Fagopyrum esculentum (Polygonaceous). It is included in dietary supplements and claimed to be benefit in treating conditions characterized by capillary bleeding. 

• Sennosides A and B: This is anthraquinone glycoside obtained from Cassia senna and is used to treat habitual constipation. 

• Taxol (Paclitaxel): This is diterpene ester obtained from Taxus species (e.g., T. brevifolia and T. wallichiana; Taxaceae), used as anticancer agent. 

• Xanthotoxin: This is furanocoumarin obtained from Ammi majus and Heracleum Candi cans, used in leucoderma and other skin problems.

INDIAN MEDICINAL PLANTS USED IN COSMETIC AND AROMATHERAPY

Following is the list of few Indian medicinal plants, which are in demand in the domestic as well as international market being useful in herbal cosmetic and in aromatherapy.

INDIAN MEDICINAL PLANTS IN CRUDE FORM

The following list of Indian medicinal plants having export potential in the crude form as well as their phyto-pharmaceutical products:

SPICES

Spices form an important ingredient of culinary preparations in the tropics. They are added to the food in minor quantities to alter the taste and flavour of the preparation. Though they do not contribute to the energy content of the diet, they help to increase the digestion of the diet by enhancing the secretion of the digestive enzyme in the alimentary tract and by increasing the perspiration. There are four major groups of active constituents present in the spices, responsible for all these properties:

• Volatile oils 

• Phenolics 

• Alkaloids and 

• Sulphur-containing compounds.

Volatile Oils

• Volatile oils are sweet-smelling liquids, and they emit fragrance to the food and are also slight bitter in taste. Thus, they help to enhance the secretion of digestive enzyme in the alimentary tract. All spices belonging to the apiaceae (umbelliferous fruits and their leaves) and the lamiaceae (leafy spices) are rich in volatile oils. Since the oils are lost on cooking, these spices are mostly added as condiments.

Phenolics

• Phenolics component contribute to the taste, colour and flavour of a number of spices. The phenols present in spices are simple in structure mostly containing single aromatic ring, e.g. gingerols (ginger), phenolic amines are the pungent principles (capsaicin's) in red pepper and phenylpropenes are present in cloves (eugenol) and fennel (anethole).

Alkaloids

• Alkaloids are the largest group of nitrogenous natural organic compounds but only a few spices belonging to the genus piper contain them. Alkaloids present in this genus are of piperidine type.

Sulphur Compounds

• Spices such as mustard, onion and garlic owe their pungency and characteristic Oduor to Sulphur-containing compounds. These compounds are present in the form of glucosinolate (mustard seed) and are volatile with an offensive Oduor (onion, garlic and asparagus).

EXPORT OF SPICES INDIA

Following is the list of spices being exported from India to East Asia, the United States, West Asia, European Community and Africa, UAE, Singapore, Germany, France, Canada, Sri Lanka, Japan, Malaysia, Russia, Bangladesh, Pakistan, Saudi Arabia and Netherlands.

Although other countries like China, Brazil, Thailand, etc., have also started export of spice, but even then the demand for Indian spices is not being affected.

Spices exports have registered substantial growth during the last decade, registering an annual average growth rate of 11.1% in value terms. During the year 2007–08, the export earnings from spices have surpassed US$ 1 billion mark for the first time and registered an all-time high both in terms of quantity and value in spice exports. In 2007–08, the export of spices from India has been 444,250 tonnes valued US$ 1,101.80 million registering an increase of 39% in value over 2006–07. India commands a formidable position in the World Spice Trade with 48% share in volume and 44% in value.

The history of Indian spice is very old, as there are evidence of India having trade of vegetable drugs and spices with Greece even before Alexander’s invasion in 327 B.C. India’s glory for the land of spice and perfumery attracted foreigners (French, British, Arab, Portuguese and Dutch). Portuguese invaded India and controlled over the spice trade of the country. They were taken over by Dutch, who exploited spices of India for many years. Later the British Empire took over and shared most of the world spice trade with Holland. Arabs had taken the spice products from southern India and established it even after independence Spices have continued to be the main attraction of international trade in India. The Government of India had established separate board as ‘Spice Board of India’, for promoting the spice trade which control their production and quality. Besides, the Spice Board, the Indian Institute of Spices Research (HSR) was established at Calicut in 1986, which is responsible for providing latest biotechnology for more production of spices.

• Includes bishops weed (Ajwain seed), dill seed, poppy seed, aniseed, mustard, etc. 

• Includes asafoetida, cinnamon, cassia, cambodge, saffron, spices (NES), etc. 

• Includes menthol, menthol crystals and mint oils.

India’s share in world trade of spices (2007–08)

Southern states of India remained the main centre of region of spice production. Even today, Southern states of the country produce most of the spices.

At present Kerala tops in the production of black pepper, cardamom and ginger, while producing substantial quantities of long pepper and turmeric; Andhra Pradesh has monopoly in the production of turmeric and chillies. More than half of the country’s chillies and turmeric production is produced by the State of Andhra Pradesh alone. Currently about 50 million tonnes of chillies were produced by the Andhra Pradesh.

The spices export during April–December 2008 is estimated as 334,150 tonnes valued Rs. 3,810.95 crore (US$ 860.40 million) as against 325,320 tonnes valued Rs. 3,320.00 crore (US$ 821.45 million) in the corresponding period of the last financial year. Compared to last year, the export has shown an increase of 15% in rupee value and a 3% in quantity. In dollar terms, the increase is 5%, according to data released by Spices Board.

Spice oils and oleoresins including mint products contributed 42% of the total export earnings. Chilli contributed 21% followed by pepper 8%, cumin 8% and turmeric 5%.

During April–December 2008, export of most of the major spices have shown an increasing trend both in terms of quantity and value as compared to the same periodof last year. However, exports of pepper and chilli have declined both in terms of quantity and value as compared to last year. During the period, export of ginger and mint products has declined in quantity only.

During April–December 2008, the export of pepper from India has been 19,100 tonnes valued at Rs. 317.77 crore as against 27,580 tonnes valued Rs. 400.20 crore of last year. The average export price of pepper has gone up from Rs. 145.11 per kg in 2007 to Rs. 166.37 per kg in 2008. The low inventory in the major international markets due to the economic recession is reported to be the major reason for the decline in exports.

During the period, India has exported 141,000 tonnes of chilli and chilli products valued Rs. 793.18 crore as against 149,755 tonnes valued Rs. 807.03 crore of last year. The traditional buyers of Indian chilli, viz. Malaysia, Indonesia and Sri Lanka continued their buying this year also. It is expected that the export will pick up in the coming months as the new crop comes to market.

The export of seed spices has shown an increasing trend both in the quantity and value as compared to last year. The export of coriander seed during April–December 2008 has been 19,600 tonnes valued at Rs. 137.23 crore as against 19,150 tonnes valued at Rs. 77.69 crore of last year, registering an increase of 77% in value. The unit value of export has gone up from Rs. 40.57/kg in 2007 to Rs. 70.01/kg in 2008.

The export of cumin seed during April–December 2008 has increased considerably and the export has been 28,500 tonnes valued at Rs. 296.13 crore as against 18,885 tonnes valued at Rs. 199.09 crore. The export of cumin up to December 2008 is an all-time record both in terms of quantity and value. The export of cumin has shown an increase of 51% in quantity and 49% in value terms as compared to last year. The reported crop failure in other major producing countries, viz. Syria, Turkey and Iran has helped India to achieve this substantial increase in the export of cumin.

The export of value-added products like curry powder and spice oils and oleoresins have also shown substantial increase both in terms of quantity and value as compared to last year. During April–December 2008, a total quantity of 10,500 tonnes of curry powder and masalas valued Rs. 124.45 crore has been exported as against 8,375 tonnes valued at Rs. 81.10 crore of last year. During April–December 2008, the export of spice oils and oleoresins has been 5,550 tonnes valued at Rs. 574.23 crore as against 4,815 tonnes valued at Rs. 404.04 crore of last years, registering an increase of 42% in value and 15% in volume.

Against the export target of 425,000 tonnes valued Rs. 4,350.00 crore (US$ 1,025.00) for the year, the achievement of 334,150 tonnes valued Rs. 3,810.95 crore (US$ 860.40 million) up to December 2008 is 79% in quantity, 88% in rupee value and 84% in dollar terms of value. The export of spices like cumin, fenugreek, nutmeg and mace, vanilla and other seeds have already achieved the respective targets fixed for the year 2008–09.