Abstract:
The herbal sector, as it is currently structured, is unable to improve
the living standards of the underprivileged communities, who are the
gatherers of the medicinal plants, The role of grass-roots organisations
and rural networks to reduce transaction costs and enhance market
coordination, has been object of study in different sectors but there is
a gap in the literature in the herbal sector.
The article portraits the supply relations in the medicinal plant market
and suggests to promote medicinal plant enterprises such as Gram
Mooligai Company Limited (GMCL), the first community based enterprise
active in the herbal sector. Lessons to promote a more equitable
sharing of benefits in the sector, to reform the supply chain and to
promote new forms of partnership between ayurvedic firms and communities
are discussed.
