Abstract:
About 35% of the population in the country is primarily dependent on Ayurveda and
traditional systems of health care. However, the economic values of medicinal plants
have not yet been established leading to non -recognition of their values which lead to
inefficient level of conservation.
The main goal of the research was to investigate how the medicinal plants contribute to
the natural product market. It is achieved through two specific objectives. The first is
determination of market value of commonly used medicinal plants used in Ayurvedic
drug preparation industries and secondly, determination of market value of commonly
used medicinal plants in Ayurvedic retail sale centres.
A mail survey was conducted using structured questionnaires for Ayurvedic drug
preparation units and a face to face interview has been carried out for retail centres.
Data was gathered by retail sale shops in seven districts and 10% from each were
surveyed. A sensitivity analysis on the result revealed the economic value of medicinal
plants for Ayurvedic drug preparation units.
According to the results, the annual economic value of medicinal plants which are used
in drug production units was Rs. 53.33 million and the value for retail sale centres was
Rs. 49.35 million. The total annual national economic value of medicinal plants was
Rs.102.69 million. A sensitivity analysis on production and tax increase on imported
medicinal plants reveal that a considerable amount of foreign exchange could be saved
in the future, if conservation and planting programmes were carried out.
The estimated value is considered to be an underestimation since some multiple values
of certain medicinal plants such as food, spice and non-use values, and the value of
some plants as household remedies have not been included in the above estimate.
Such economic values on medicinal plants will, however, provide important criteria for
formulation of policy decisions to manage and conserve the medicinal plants
