Set up EPZ to push up herbal exports : ASSOCHAM

New Delhi, June 7 (UNI) To reach the projected Rs 12,000 crore mark of exports of herbal materials and medicines by 2012, Exclusive Export Promotion Zones (EEPZs) need to be set up in half a dozen selected states.

Industry chamber Assocham, in a paper titled 'Future of Herbal Exports', said territories like Gujarat, Rajasthan, Haryana, Tamil Nadu, Andhra and the Himalayan range account for over 75 per cent of export proceeds of herbal medicines from the country's estimated exports of Rs 3,000 crore.

It suggested exports of herbs medicines could be accelerated to the projected level if EEPZs with facilities for research and development, are set up in these regions, with total central allocation of Rs 30,000 crore.

India is the largest producer of medicinal plants, having more than 40 per cent of global diversity.

India's exports to countries like US, Spain, UK, Australia, Russia and Indonesia have been growing at an average rate of over 25 per cent, said the paper.

''The demand for 'swadesi' herbal medicines has been rising due to their quality ingredients, availability factor and price competitiveness with virtually little side effects,'' said Assocham President Venugopal N Dhoot.

He added that these 'swadesi' herbs and medicines meet all the World Health Organisation prescribed standards and norms and thus encounter no restrictions in overseas markets and find instant acceptability.

Mr Dhoot regretted that though the herbal medicines are multifaceted and cure even serious aliments with little precautions and are in great demand, India's share in medicinal plant exports in global trade is a mere 2.5 per cent as against 13 per cent of China.

Assocham suggested the exports promotion zones (EPZs) to accelerate herbal wealth exports are a necessity for which grants and R and D support is must be made through central allocations and resources.

The paper has suggested multi-pronged and multi-dimensional strategies to give a fillip to the swadesi herbal industry while seeking allocation of fund for conducting Research and Development on product and process development.

This will lead to improved post harvesting of herbs and creating marketing agencies for efficient marketing of herbal potential through scientific channels of communications, adds the paper.

US and UK will continue to be the largest export markets for Indian herbal medicines.

In 2003-04, India's exports to US stood at Rs 135.63 crore as against Rs 17 crore to UK. In subsequent years until now, the exports, having witnessed fluctuations due to variety of factors, still show over 30 per cent hike, which will further move with steady speed, said the paper.

The same is expected be the case with other identified countries. Other countries where export is expected to increase include Germany, France, Pakistan and UAE, it added.

UNI