The National Bank for Agriculture and Rural Development (NABARD) is planning to have a detailed project to identify the potential medicinal plants that are suitable to the Indian agro-climatic conditions, and ways to promote its mass cultivation.

According to sources in NABARD, the project gains significance as some of the potentially exportable herbal species are in short supply and are facing extinction. In Tamilnadu, the apex agricultural and rural development bank is planning to team up with the Kanchi Kamakoti Peeth's NGO arm Voluntary Health Education and Rural Development Society (VHERDS) and similar agencies to conduct the study. The bank will bear the cost of conducting this study, which amounts to over Rs.15 lakhs. VHERDS has a well functioning Bio Informatics Centre, which is already in the process of data collection on exportable and near extinct herbal species.

Sources said the bank has identified a dozen herbs like Periwinkle, Coleus, Glory Lili, Aswagandha, Safed Musali, Shatavari, Aloe Vera, Vasambu, Annato, Lemon Grass, Citronella Grass and Patchouli has scope for massive commercial cultivation. Already the bank is in the process of estimating the potential available for cultivation of medicinal and aromatic plants and preparation of potential linked credit plan. In Tamilnadu, the bank is also involved in Geranium cultivation and its distillation unit in the Nilgiris, Citronella, Glory Lily and Palma Rosa cultivation in Tiruchi, Salem and Kamarajar districts.

Sources point out that non-availability of improved varieties and plant material, lack of information on technical expertise at field level and demand and supply position, lack of organized marketing facilities etc. are some of the major constraints in commercial cultivation of herbal plants.

It is estimated that India conducts Rs.1000 crore odd medicinal plant trade annually, out of a world trade of US $ 60 billion. In India, more than 95 percent of the raw material medicinal herbs are sourced from the natural habitats and only a few are under commercial cultivation.