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The Union Ministry of Ayush needs to conduct a nation-wide assessment study to determine the availability of medicinal plants and updated demand-supply projection, for the growth of medicinal plants sector, according to a report from the Parliamentary Panel on Health and Family Welfare.
The Parliamentary Standing Committee on Health and Family Welfare, in its 174th report on Demands for Grants 2026-27 of the Ministry of Ayush, also sought the Ministry to develop a supportive industrial ecosystem including promotion of start up incubation to optimise the economic potential of the sector.
While the National Medicinal Plants Board (NMPB) has taken initiatives to support farmers, the absence of updated demand supply assessment data of medicinal plants and a comprehensive state-wise inventory may hinder effective planning for cultivation, value chain development and realisation of India’s export potential in medicinal plants and herbal products.
It further observed that the sector presently needs adequate industrial ecosystems to support large-scale product innovation, startup incubation, technology transfer and value addition, which in turn will promote the commercialisation and global competitiveness of Ayush products.
"The Committee, therefore, recommends that the Ministry must undertake a comprehensive national assessment study in coordination with State Medicinal Plants Boards to determine State-wise availability of medicinal plants and updated demand-supply projections, including global market demand," said the Panel headed by Member of Parliament Prof. Ram Gopal Yadav.
"The Committee is of the strong view that the Ministry must strengthen the medicinal plants value chain through the establishment of Medicinal Plants Business Processing Centres (MBPCs) along with quality certification and traceability mechanisms to enhance value addition and export competitiveness," it added.
The Panel further recommended that the Ministry should develop supportive industrial ecosystems, including dedicated Ayush innovation and industry clusters, to promote product development, startup incubation, technology transfer and export promotion so as to fully realise the economic potential of the Ayush sector.
It observed that the NMPB has taken initiatives to support farmers through the establishment of nurseries for raising planting material of medicinal plants under the Forward and Backward Linkages in the Supply Chain of Medicinal Plants.
Medicinal plants sector holds considerable potential for strengthening the Ayush industry, supporting rural livelihoods and enhancing India’s bio-economy through the development of pharmaceuticals, nutraceuticals, wellness products and medicinal plant-based industries.
In terms of growing medicinal plants, the North Eastern Region (NER) of India possesses rich biodiversity and holds immense potential for the cultivation and sustainable utilisation of medicinal plants used in Ayush systems of medicine. The Panel opined that the NER can play a pivotal role in strengthening the supply chain of medicinal plants and supporting the growth of the Ayush sector through cultivation, processing and value addition.
However, the full potential of the region remains underutilised due to limited infrastructure for cultivation, processing and market linkages.
The Panel recommended that the Ministry of Ayush accord special emphasis to the development of medicinal plant cultivation, processing and value addition in the North Eastern States under relevant schemes.
It added that appropriate measures should be taken to strengthen market linkages, promote sustainable harvesting practices and support livelihood opportunities for local communities so as to harness the region’s biodiversity potential while contributing to the growth of the Ayush sector.
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