Policies

 Initiatives of Government of India (Not exhaustive)
 Strategies for Action Plan
 Focus on specific herbs
 Contract cultivation
 Buyback arrangement
 Online agri marketing
 Incentives for exports
 Tax concessions and investment incentives
 Creation of "herbal districts”
 Export Processing Zone
 Gene Bank
 Banking of documented information
 Web portal

Initiatives of Government of India (Not exhaustive)

National Institute of Organic Farming

During Tenth Plan, the Government of India would implement a national project on organic farming which include setting up of National Institute of Organic Farming and its regional centres to promote and facilitate various aspects of organic farming in the country.

The schemes include support to commercial production units of organic inputs like fruits and vegetable waste, compost units, biofertiliser production units and hatcheries for vermiculture, etc.

Task Force to Boost Exports

A task force has been set up by the Government of India to promote exports.

The global market is estimated at nearly $80 billion, which covers herbal products known for their preventive, curative, cosmetic and nutrient qualities.

India has only around one percent of this share, whereas the task force has set a target of 10 percent.

India needs to take urgent steps to ensure that it would not lose out to other countries.

International Promotional Activities

A number of herbal products with medicinal value are likely to receive government approval soon, which would help overcome objections raised by European Union (EU) and boost exports.

The Government of India has allocated Rs.150 crore to carry out international promotional activities and provide subsidies to give further support to domestic ayurveda industry looking at overseas markets.

These promotional activities include funding of government surveys for herbal products in the US and providing assistance to industry to carry out more such surveys.

The government has been sending trade delegations to various countries and supporting the participation in international trade shows to promote Indian system of medicines.
 

Strategies for Action plans

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Tamil Nadu Government would position itself to carry out the following two functions in the focus areas to achieve the targets

•  Policy initiatives
•  Facilitator for growth

The Tamil Nadu Government would carry out the above functions through Tamil Nadu Medicinal Plant Board

Policy initiatives

Government Policy Initiatives would be focused on the following aspects

	Focus on specific herbs
	Contract cultivation
	Buyback arrangement
	Online agri marketing
	Incentives for exports
	Tax concessions and investment incentives
	Creation of Herbal districts
	Exports promotion zone
	Gene Bank
	Banking of documented information
	Web portal

Focus on specific herbs

While number of herbs can be grown in Tamil Nadu, it would be advantageous to focus on a few selected herbs, where the immediate prospects for substantial progress are clearly evident.

Herbs for Immediate Focus

In addition, the following herbs have been identified long term focus

Contract cultivation

Contract farming is an agreement between processing and or marketing firms, market intermediaries and the farmers for the production and support of agricultural products under forward agreement, frequently at predetermined prices.

At present, Tamil Nadu state has drafted a legislation governing contract farming. The legislation includes clauses on the relationship between the contract farmer, the contractor and the processor of foods products.

Creation of mandatory contract farming regulations

It is necessary to put in place a suitable legal frame work and administrative mechanism to ensure that farmers' rights would be safeguarded and terms of contract farming would be fully honoured by all parties.

The regulations would focus on how to regularise the relation between producers and processors of herbal materials.

It would also include stipulations on how the profit-sharing agreements between the two parties should be drafted and how possible disputes should be settled.

Buyback arrangement

Involves firm arrangement between buyer and the seller to engage in marketing relationships on long term basis.

Proper buy back arrangement would lead to stabilise the operation in herbal industry to a significant extent.

Creation of mandatory buy back regulations

It is necessary to introduce suitable regulations on the norms for buy back arrangements, so that developments such as market fluctuation and uncertain scenario would not lead to loop holes for either the buyer or the seller to dishonour the arrangement

Online Agri marketing

Tie up on a build, own, operate basis with suitable private organisation for on line marketing of herbal products would be encouraged

With such new facility that can be termed E-agricultural marketing, operations of several mandis of the state can be online using V-Sat for connectivity.

Such innovative approach would significantly improve the market prospects for herbal products produced in Tamil Nadu.

Incentives for exports

The feasibility of providing subsidies for international product promotional activity would be examined. The following activities would be undertaken.

•  Organise visits of trade delegations from abroad
   
•  Sponsor conferences and seminars to provide interaction between herbal players in Tamil Nadu and global organisations.
   
•  Set up offices abroad in selected countries to provide guidance and support to herbal  industries in Tamil Nadu.

Tax concessions and investment incentives

In order to encourage the rapid growth of herbal industry and catch the imagination of investors from all over India and abroad, special investment incentives and tax concessions are necessary.

Special investment subsidy, sales tax concessions and allotment of Government land on long term lease for focussed herbal projects would be considered.

Particularly, to encourage initiatives amongst small scale herbal farmers and extractors/formulators and to recognise the individual talent and contribution, special annual awards would be instituted

Creation of "herbal districts”

To provide excellent climate for the growth of herbal industry and get international recognition, a few districts in Tamil Nadu would be considered for being declared as “herbal districts”.

In the “herbal districts”, the feasibility of banning the use of synthetic pesticides and synthetic fertilisers and permitting only use of organic farming and use of bio-fertilisers, bio-pesticides would be considered.

Hilly regions such as Nilgiris, Kodaikannal, and Anaimalais can be ideal choice for being declared as “herbal districts”

Export Processing Zone

The objective of setting up Medicinal Plant Export Processing Zone is not only to accelerate exports of herbs in general but also to carve out a niche for Tamil Nadu in the international market.

Criteria for Choice of Herbs for Export Promotional Zone

Herbs that are almost exclusively produced in India, with export potential

Herbs with small demand base in India and with export potential

Herbs with excellent demand prospects in the global market.


Recommended Herbs for Export Promotion Zone in Tamil Nadu

Operating Divisions in Export Processing Zone

Gene Bank

Setting up of gene banks of different species of medicinal plants in all regions of the state would considerably help the herbal industry.

A detailed survey would be undertaken for creating data base, about the availability of natural medicinal plants/herbs in the altitudinal and climatic zones.

Banking of documented information

Initiatives would be taken to study the community and tribal knowledge in Tamil Nadu, so as to create state bio-resources register

Web portal

Herbal industry involves cross section of functions involving several fields such as Chemistry, Botany, Agriculture, Engineering, Technology, Management, Toxicology Study, Testing, Pharmacology, Marketing etc.

To successfully conceive, design, implement and operate herbal projects, there is urgent need to create a strong Information Network and Platform to exchange data and information on the various aspects of the herbal sector.

Objectives of Web portal

To provide details of  Tamil Nadu Government’s policies and programmes on herbal sector.

To provide the herbal industry with a nodal platform to exchange useful information and keep them up dated with developments.

To facilitate and promote healthy exchange of ideas among organisations and individuals involved in the herbal sector

To enable the present and prospective cultivators, producers, R & D organisations and trading houses to get adequate understanding of the opportunities available in Tamil Nadu.

This calls for the creation of an Interactive Herbal Portal that would give an Information Platform to various participants in the Indian Herbal Industry.