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03-12-2024

Market Management Program for Medicinal Plant Products Under Gujarat Medicinal Plant Board

The Market Management Program for Medicinal Plant Products aims to enhance the production, marketing, and trade of medicinal crops in Gujarat, focusing on sustainable development and improving the livelihoods of farmers. By leveraging the expertise and operational models of Agricultural Produce Market Committees (APMCs) like those in Unjha, Neemuch, and Nashik, the Gujarat Medicinal Plant Board intends to establish an efficient ecosystem for medicinal plant products.

Key Objectives of the Program

Strengthening Market Infrastructure:

• Establish dedicated market yards and warehouses for medicinal plants.
• Set up grading, sorting, and packaging facilities to improve the quality of produce.

Fair Pricing and Transparent Trade:

• Introduce auction systems for price discovery, ensuring fair market value for farmers.
• Promote the use of electronic weighing scales to enhance accuracy and transparency.

Capacity Building for Farmers and Traders:

• Conduct training programs on medicinal plant cultivation, quality standards, and market requirements.
• Facilitate collaborations between farmers, traders, and companies for contract farming.

Policy and Financial Support:

• Develop state-level policies to encourage medicinal plant farming and trade.
• Provide subsidies and financial assistance for storage, transport, and processing.

Expanding Market Linkages:

• Establish partnerships with pharmaceutical companies, exporters, and bulk buyers.
• Promote Gujarat as a hub for medicinal plant products through trade fairs and expos.

Role Models and Insights from APMCs

Agricultural Produce Market Committee (APMC), Unjha

Unjha APMC has established itself as a prominent center for grains and medicinal crops. Its efficient management system, governed by elected representatives, ensures smooth operations. By charging a nominal commission rate of 0.50%, the APMC generates significant revenue, which is reinvested into administration, cleanliness, social initiatives, and market development. With a total turnover of ₹4000 crore in 2017-18, Unjha APMC serves as a successful model for market management, showcasing the potential for sustainable revenue generation while supporting farmers.

Agricultural Produce Market Committee (APMC), Neemuch

Neemuch APMC, renowned for Asia’s largest market for Ashwagandha (Withania somnifera), demonstrates the importance of a well-organized trade mechanism for medicinal crops. Its approach to contract farming, where traders provide farmers with financial support for inputs, ensures a steady supply of high-quality produce. The market's transparent auction system and price differential schemes empower farmers with better earnings. With an annual turnover of ₹1000 crore, Neemuch APMC highlights the need for focused infrastructure and government support to boost medicinal plant trade.

Agricultural Produce Market Committee (APMC), Nashik

Though primarily dealing with vegetables and fruits, Nashik APMC’s operational framework offers insights into efficient market management. The introduction of three daily auctions, electronic weighing systems, and immediate payments has fostered trust among farmers and traders. Its outreach to various states for inter-market trade highlights the importance of supply chain connectivity, which can be applied to the medicinal plant sector in Gujarat.

Proposed Initiatives in Gujarat

Development of Medicinal Plant Clusters:

• Identify regions with high potential for medicinal plant cultivation, such as Banaskantha, Dang, and Narmada.
• Create regional hubs to streamline collection, storage, and trade of medicinal crops.

Market Fee and Revenue Utilization:

• Implement a nominal market fee (0.50%-1.00%) for infrastructure and operational development.
• Use the revenue for market upgrades, farmer training, and social initiatives.

Contract Farming and Farmer Support:

• Promote contract farming models similar to Neemuch, where traders provide upfront support to farmers.
• Offer technical guidance and financial incentives for cultivating high-demand crops like Ashwagandha, Amla, and Shatavari.

Technology Integration:

• Establish digital platforms for trade, farmer registration, and real-time market price updates.
• Introduce IoT-enabled tools for crop monitoring and yield prediction.

Collaboration with Pharmaceutical and Export Industries:

• Forge partnerships with pharmaceutical companies and herbal product manufacturers for direct procurement.
• Facilitate export opportunities by ensuring compliance with global standards for medicinal crops.

Expected Outcomes

Improved Farmer Income:

• Increased access to fair and transparent markets will ensure higher earnings for farmers.

Sustainable Agricultural Practices:

• Adoption of scientific methods for medicinal crop cultivation will enhance yield and quality.

Economic Growth:

• Development of medicinal plant clusters will create job opportunities and attract investments.

Global Recognition for Gujarat:

• Position Gujarat as a leading state in medicinal plant production and trade.

Implementation Partners

• Government of Gujarat: Policy support and funding.
• Gujarat Medicinal Plant Board: Technical expertise and coordination.
• APMCs in Gujarat: Infrastructure development and operational management.
• Private Sector: Investments in processing, packaging, and exports.
• Farmers’ Cooperatives: Grassroots-level implementation and feedback.

This program will act as a cornerstone for transforming Gujarat into a thriving centre for medicinal plant products, fostering sustainable agriculture and economic prosperity.