The herbal sector in Uttarakhand In recent years, there has been a rapid growth in world demand for plant

based raw materials for manufacturing food flavours, fragrances, perfumes, cosmetics and related products. Some of them are high value chemicals and their demand, individually, may command a sizeable chunk of the global market. Traditionally India has been an important source for procuring a wide variety of medicinal and aromatic plants. The Central Government through the Ministries of Agriculture and Health has been steadily trying to give a strong push to a herbal movement in the country. In 2003, the State Government of Uttarakhand (GOUK) took a formal policy decision to promote herbal cultivation in the State. As a part of this policy decision the GOUK has prioritized 26 herb species for mass scale cultivation and has decided to provide a 50 per cent subsidy on the cost of cultivation to boost the process of inducting a herbal movement in the State. The cultivation of herbal plants in Uttarakhand may be classified into three major types: (i) Medicinal Herbs: for use in Ayurveda, Cosmetics, Homeopathy, Teas, Extract etc. Kutki (Pichoriza Kurroa), Kuth (Saussurea Costus), Faran (Allium Stracheyi), Manjistha (Rubia Cordifolia), Jatamansi (Nardostachys) etc. Aromatic Herbs: Lemon Grass (Cymbopogan flexuosus), Chamomile (Matricaria Chamonnilla), Palmrosa, Geranium, Citronella, Stevia etc. Culinary herbs: Thyme, Rosemary, Basil, Sage etc.

(ii) (iii)

Most herbs of medicinal value are found in the upper Himalayas with average altitude above 220 mts. These plants have a long cultivation cycle in some it takes around three to five years for a complete cultivation cycle. The entire business has so far been handled by a few local traders who act as procurers for larger dealers based in Delhi and elsewhere. Sometimes a number of valuable medicinal herbs are classified as restricted and their cultivation has never been encouraged. Further, under an old regulation, any trans-shipment of medicinal herbs from one place to another require clearance from the Forest Department. As a result the entire experience of cultivation and sale of medicinal herbs has been less than transparent since the trade has been largely restricted there is very little information available about the downstream supply chain. However for the past two years the situation on the ground has been rapidly changing. The State Government has now created two separate institutions under the Department of Horticulture to promote the cultivation of herbs. The Herbal Research Development Institute at Gopeshwar in Chamoli district has been recently established to oversee the push needed to expand the cultivation of medicinal plants. The institute has so far been placing an emphasis on pre-

harvest procedures. The main thrust has been on arranging for seedlings, and improving cultivation awareness amongst marginal farmers. Organised cultivation till two years ago was very low but currently medicinal plants are being cultivated in around 200 hectares of land located at Joshimath, Gopeshwar, Gadarpur, Munsyari and Dhanaulti. The HRDI has been concentrating on (i) Kutki (Pichoriza Kurroa) which is now cultivated in 20 hectares and can be scaled upto 200 hectares with the ready availability of more and more planting material developed in the nurseries. Kuth (Sanssurea Costus) currently cultivated in 50 hectares and can be scaled up to 200 hectares within two years. Sarp Gandha (Allium Stracheyi) Currently very little seeds are available and the crop is being grown in only 5 to 10 hectares around Gadarpur. Faran a traditional crop which is currently grown in 30-40 hectares.

(ii) (iii)

(iv)

There is an enormous gap in the existence of infrastructure for post harvest practices in the case of medicinal plants. The GOUK has established the Uttarakhand Forest Development Corporation to assist in the marketing of medicinal plants. This agency hosts an auction periodically at Haldwani, Rishikesh, Ramagar and Tanakpur (all in the plain districts). However on account of poor participation of buyers these market auctions have so far failed to deliver desired results. The HRDI has been hosting individual buyer-seller meets but the efforts are at an early stage. A Centre for Aromatic Plants (CAP) was established by the GOUK in 2003 at Selaqui in Dehradun. Aromatic plants, unlike medicinal plants, can be cultivated in altitudes of 500-1500 metres, are mostly varieties of wild flowers and grasses and do not require any form of regulatory clearances for trans-shipment, have a much shorter cropping cycle and the water requirement for cultivation is very low, can be processed by simple hydro and steam distillation (which is quite inexpensive) and have a wider user profile as they are consumed largely by the cosmetics and food flavouring companies. The biggest market for the consumption of aromatic oils are the United States and the European Union. Some of the important sources of supply are China, Indonesia, India and Brazil. From India around US$ 100 million worth of aromatic oils are exported and an organisation called Chemexcil, based in Mumbai, overviews exports in this sector. The export business is increasingly governed by stringent regulatory environment imposed by the importing countries. With the assistance of CAP the GOUA launched the Aromatic Big Push in 2003 with the purpose of expanding the cultivation process by:

aiming at the smaller sub-markets development of a few oils that were carefully selected on the basis of presenting the minimum problems for market access and technical difficulties of production. producing, at least, the minimum volume to interest overseas buyers within a short span of time.

From about a zero base in 2003 the current acreage under cultivation is around 150 hectares covering a little above 600 individual farmers. The present production of oils is around 1000 TNS per annum. However during the past two years the average rate of increase in production has been 25 to 30 per cent per annum. Since individual farm holdings are small a cluster approach is being followed and CAP have helped to create around twenty five clusters in different districts of the State. The clusters need to be carefully planned and every cluster has to have access to a distillation unit. Originally the distillation units that were installed failed to deliver proper results. Through local help the distillation units have now been modified. The State Government has introduced an attractive subsidy policy for the installation of distillation units. Currently, wherever farmers groups cultivate more than five hectares of herbal plants a distillation facility of 5 quintal capacity can be established with 95% State subsidy. In case the cultivated area is between two to five hectares then a 2 quintal capacity distillation unit can be set up with 95% State subsidy. Farmers residing in higher altitudes and whose incomes are below poverty line are given free planting material for 0.25 acre cultivation by the GOUK through the C.A.P. The herbal sector is currently viewed as a sun rise sector for the state. Geographically the region has the potential to become an important producer for herbs. With a favourable State policy towards supporting cultivation and post harvest processing the herbal sector can experience a good boost in the near future.