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Rediff.com  » Business » How herbs turn land into gold!

How herbs turn land into gold!

By Surinder Sud
May 03, 2005 12:06 IST
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Converting land into a goldmine -- this is what herbs and medicinal plants' growers seem to be doing under the patronage of the recently-formed Central Herbal Agro Marketing Federation of India.

Realising that marketing is a major problem for herb growers, the federation has chalked out a unique strategy to get over it by pooling the entire produce of its members and selling it collectively.

In fact, the federation first enters into purchase agreements with buyers and then advises its members to plan the production accordingly.

To help the members produce good quality stuff, the federation provides them the necessary technical know-how and even inputs such as seeding material.

And all the herbs are produced through organic farming to facilitate negotiating better prices.

The man behind this venture is Rajaram Tripathy, a 45-year-old former banker belonging to Kondagaon, a sleepy habitation in Bastar district of Chhattisgarh.

He left his job to try out herbal cultivation in 1996 on his ancestral land in Kondagaon. His banking contacts came in handy to get a loan of over Rs 20 lakh (the biggest loan to any single farmer in the area till then) for this purpose. But what really contributed to the success of the venture was his marketing acumen.

Even before sowing the herb, Safed Musli (Chlorohytum borivilianum), he visited traders in Delhi to assess the demand and the price he was likely to get.

The results were instant, and he was able to repay the loan after disposing off the very first harvest. This instilled confidence in the bankers to lend him even larger amounts, albeit at commercial terms.

This help was adequate for Tripathy to set up Maa Danteshwari Hitech Herbal Farms on his land to take up research and development of organic herbal cultivation.

In less than a decade, this farm has become the hub of herb promotion activities for the whole country. It serves as the training centre, demonstration farm and even a seed supplier for herb growers.

Today, the herbal marketing federation has a membership of nearly 2,700 farmers in 11 states. In fact, the Chhattisgarh government has come out with a policy paper to make it a "herbal state".

Recently, the defence ministry's directorate of resettlement of ex-armymen has sought the federation's assistance in initiating ex-servicemen into herb cultivation.

The directorate is doing this under its retired personnel's rehabilitation programme called "from arms to farms". These men will be cultivating Safed Musli (the Indian answer to Viagra and the Chinese ginseng) and Stevia (a zero-calorie herbal sweetener).

To begin with, the federation has taken up the promotion of organic farming and marketing of a few selected herbs that have the maximum market demand, and can provide lucrative returns to growers.

These include Safed Musli, Stevia, Sarpgandha, Ashwagandha, lemon grass, Kalihari, Coleus and some others. According to Tripathy, Safed Musli and Stevia, among these, are the most lucrative and have vast untapped production and marketing potential.

Both are virtually cash crops with low risk and assured tax-free, high returns.

Safed Musli has been used for centuries in the ayurvedic system of medicine as an aphrodisiac and vitaliser agent. Besides, it is also used in the treatment of diabetes, arthritis, rheumatism and natal and post-natal problems.

As such, it is an essential ingredient in over 100 ayurvedic, Unani, allopathic and homeopathic medicinal preparations. Stevia (Stevia robudina), on the other hand, is used in the preparations offered as alternatives to white sugar for weight-conscious people and diabetes patients.

However, the country's present Safed Musli production is only a fraction of the actual demand. A great deal of spurious stuff is also doing the rounds. This malpractice needs to be curbed.

Tripathy is upbeat about boosting herbal exports from India. The annual global market for medicinal herbs is estimated at around $ 65 billion.

It is growing at a high rate of around 16 per cent a year. The Indian share at present is very small. Even China exports nearly six times more herbs than India.

"I want to replace Chinese ginseng with the Indian Safed Musli in the export market," says Tripathy. This should not be too difficult as the Indian Safed Musli has 14 per cent Saphonil (the active ingredient that is believed to have anti-ageing properties), against only 6 per cent in the ginseng.

Besides, most of the supplies from the federation's members are grown organically and certified as such by a German organic produce certification agency.

By adopting modern marketing strategies, and highlighting the advantages of organically-grown Indian herbs, the exports can be multiplied several folds. The federation, as well as the Maa Danteshwari herbal farm, have created Web sites to reach out to the world for this purpose.
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Surinder Sud
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