F.A.Q

Q: In spite of enormous traditional knowledge and different climatic zones, India is yet to make a breakthrough in the global market. Where is the gap?

A: Until recently, Indian herbal industry have been unorganized with number of small players who do not have the capacity for large scale investment. Therefore, they have not been able to acquire adequate competitiveness to penetrate the global market. However, conditions are now improving with number of large companies getting into the field. One can expect that Indian herbal industry would acquire greater teeth in the global market in the coming years.

Q: What should be the role of agricultural sector in the herbal industry?

A: The herbal industry consists of cross section of players like agriculturists, botanists, chemical engineers, certification agencies, marketing personnel etc. While agriculture is the first leg of the herbal industry and has a significant place in the overall performance of the herbal industry, agricultural operations are not the be all and end all of the herbal industry.

Agriculturists should clearly understand the role and importance of other players.

The agriculturists should focus on appropriate choice of herb for cultivation, good cultivation practices such as organic farming, good post harvest practices etc. that would enable other players to operate at optimum level.

Q: There is considerable controversy about the buy back concept. Can one get into the business based on buy back arrangement?

A: As of today, there are number of cases where the buy back arrangements have been successful but there are also cases of failure. The government rules and regulations with regard to the buy back arrangements are still being framed up.

However, the producers need to have good understanding of the market mechanism and trends and should not be over dependent on the buy back arrangements.

Several people think that the buy back arrangements in India still operate on a matter of faith.

Q: Many people think that Indian market for herbal products are inadequate and therefore, Indian herbal industry has to necessarily enter export market to sustain growth. How to penetrate export market?

A:  Small herbal players would find it difficult to penetrate and operate in the global market all by themselves. Perhaps, they need the support of strong trading houses. They also need to be backed by good information network.

Adoption of organic farming practices, sound manufacturing technologies, good packaging etc. are other essential requirements to penetrate be global markets.

Q: How can government support the export efforts of the herbal industry?

A: Governments is taking number of steps like subsidizing the study of the export market, offering number of export incentive schemes etc. While the Government's support in several forms would continue, considerable initiatives have to come from the herbal industries themselves, who should skillfully utilize the governmental support coupled with their own efforts.