One of the reasons for herbal exports not picking up is that the domestic industry is still unorganised and passing through a nascent stage. According to one estimate, there are over 11,000 companies dealing in herbal products in the country but very few of them are doing well despite the fact that both the international and the domestic market present a plethora of opportunities. Reasons being lack of quality and proper packaging and marketing.

Exports in this line constitute two segments--herbs and extracts, and finished products. But while for the former is growing, that for finished products is stagnant in the international market which makesthe overall situation unimpressive. "The demand for herbal extracts and herbal medicines especially neem-based products is growing by the day in the US and the European countries. Cosmetics are also doing well. Despite this, the export scenario is bad as the other segments are not picking up," says Praveen Kumar, one of the directors of Joshini Impex Private Limited. Herbal cosmetics industry is worth Rs 200 crore.

The export situation of herbs and extracts though better than the finished products, like chyavanaprash, liver tonics and rejuvenators, the old timers in the field feel that there is tremendous scope for growth in this segment. Says S K Katyal of Indo World Trading Corp, "The export growth of herbs and extracts is not enough. It can be improved if the government provides a helping hand. We don't have sufficient quality products to market despite having a suitable climate to grow medicinal herbs. The government should encourage the cultivation of these herbs."

Kumar too feels that the governmenthelp can improve the situation substantially. "The government is lacking on its part. There is no support or incentive for the exporters. The government should help the exporters through the forestry department by participating in the identification of herbs."

As far as finished products are concerned, especially herbal medicine and health care items, Amit Kumar Aggrawal, director, Maxo Laboratories, feels that there is no scarcity of demand for these products anywhere in the world. Still, the exports are not picking up. Aggrawal points out that there are basically two reasons behind this. First, major buyers of these items, which include neighbouring countries, like Afghanistan, Bangladesh and Russia, are passing through a difficult phase in which there is lack of surplus money for purchase of items except bare necessities.

Secondly, the restrictions imposed by the European and some other countries on the use of these items on the grounds of quality is hindering export to these countries. However, amajority of exporters feel that there is not much effect of restrictions especially for the herbs and extracts. Says Kumar: "Restrictions are not a headache. Especially, not at the small level." Katyal too feels that one can easily deal with the restrictions by choosing the products to export, judiciously. "I don't think there are many restrictions and the existing ones are not that serious. More and more people are getting interested in herbs and herbal products."

Aggrawal laments that no fresh orders are coming. "The expenditure on advertisements goes waste--even internet advertising is not promising. Noone is getting new buyers, only the old ones are continuing." However, the situation has not gone out of hand, he feels. "To sustain in the market, it has become very important to identify the potential buyers keeping in mind the restrictions in that country."

This sector has the benefit of no inherent problem. "There is no problem of raw materials. All the raw materials are easily available in thecountry. Fifty per cent of herbs used by us are imported from the countries like Indonesia, Thailand and Nepal. The difference is only in the quality due to different climatic conditions," says Aggrawal. Imported herbs are used to enhance quality. Good buyers easily identify the quality product.

Aggarwal points out that though export of some of the extracts to Europe has grown but that is only need-based and future of the industry depends on the growth in consumption of health care products in the neighbouring countries. Nevertheless, majority of exporters of both herbs and finished products appear optimistic about tapping the opportunities in the global market through proper selection of buyers and products. Says Katyal, "Though exports are not growing at the expected rate, the future appears good and the tale of missed opportunities can still be reversed in the international market by applying a `better late than never' approach."