The ayurvedic industry in Kerala is heading for a crisis following a steep increase in prices of coconut oil, ghee and gingelly oil - the three basic ingredients that constitute 80 per cent of the renowned traditional Kerala ayurvedic medicines.

Informed sources told Pharmabiz that prices of these three main ingredients have shot up in Kerala market by 50 to 75 per cent in the last six months. If the coconut oil prices were in and around Rs.50 per kg about six months ago, it has risen to Rs.75 per kg now. Similarly, gingelly oil prices have increased from Rs.42 to Rs.62 per kg, and cost of ghee hovers around Rs.145 - 150 per kg, an increase of at least Rs.20 -30 in the last five to six months.

It is to be noted that the aurvedic industry in Kerala, prospering on a tradition spanning many centuries, mainly manufacture kashayams, thailams and lehyam formulations for various therapeutic segments in accordance with ancient texts and information inherited for generations. Ghee and oils have various external and internal applications in the Kerala style of ayurvedic treatment.

"Medicine manufacturing will become unviable if we do not increase the prices by at least 20 to 25 per cent. If we do that, people may lose faith in this system. Kerala regards ayurveda as a sunrise industry, but we are not getting much help from the government. The government should help us in this crisis period with incentives like exemption of sales tax" said Dr D Ramanathan, president of Kerala Ayurveda Medicine Manufacturers Association (KAMMA) and managing director of Sitaram Ayurveda Pharmacy, Thrissur.

He said KAMMA and leading ayurvedic practitioners in the state have jointly appealed to the state government to urgently intervene and avert the crisis by exempting the sales tax, now burdened by 9.8 per cent. The appeal was jointly made by the leading drug makers and practitioners in the state like Dr P K Warrier, Vaidyamadom Cheriya Narayanan Namboothirippadu, Joyachan K Erinjeri, Ashtavaidyan ET Narayanan Mooss, EPN Nair, Vaidyabhooshanam K Raghavan Thirumulppadu, Devadas Namboodirippadu, PR KrishnaKumar, Dr UK Pavithran, Dr K Anil Kumar, Dr K Rajagopal, Dr V Chitrarajan, Dr Mohan Syriac etc.

Kerala has about 740 ayurvedic manufacturers, generating revenues to the tune of above Rs.200 crore. Of this, more than Rs.30 crore are from exports. The state has about 20-25 medium and large-scale ayurvedic drug-manufacturing firms. At least ten of them have an established chain of hospitals, clinics and pharmacies (popularly known as Vaidyasalas) in various parts of the country.