The Kerala Government, with the support from the Central Government, will soon set up an Agri-export zone (AEZ) for selected medicinal and aromatic plants in the state to tap the export potential medicinal plants in the global market.

A Memorandum of Understanding (MoU) was signed in Thiruvananthapuram a few weeks ago in this regard between K S Money, chairman, Agriculture and Processed Food Products Export Development Authority (APEDA) and C Ramachandran, additional chief secretary to the Kerala Government, in the presence of the state agricultural minister K R Gowri.

Informed sources said that the AEZ project, having an outlay of Rs 26.24 crore, plans massive conservation, cultivation, processing and exports of select medicinal plants over a period of five years. The AEZ will cover nine districts in the state namely Thiruvananthapuram, Kollam, Pathanamthitta, Idukki, Ernakulam, Thrissur, Palakkad, Malappuram and Wyanad. Thrust will be given to cultivation of medicinal and aromatic plants like Thippali, Kacholam, Nilappanakizhangu, Vayambu, Kodampuli, Kiriyath, Chakkarakolli, Kurumthotti, Menthoni, Chittadalodakam, Brahmi, Aswagandham etc. More than 3000 farmers are likely to get benefited with the setting up of this zone.

While the State Government will invest Rs 7.85 crore, the National Medicinal Plants Board (NMBP) and APEDA will contribute around Rs 10 crore for the project. Private sector is likely to invest around Rs 8.50 crore. The Department of Agriculture of the State Government is the nodal agency for implementing the project.

APEDA estimate that during the first 5 years, there would be an export of around Rs 157 crore of medicinal plants from this zone. The AEZ was sanctioned by the steering committee on September 24, 2004, and the MoU was signed on January 1, 2005. APEDA has so far sanctioned about 60 AEZs in the country with investments to the tune of Rs 1717.95 crore, said sources.