INTRODUCTION

Pain and physical sufferings are as old as life. Living beings undergo the wear and tear due to the harsh aspects of the surroundings. But with the convergent evolution of many species together, they learnt to remove their ailments with the help of the other species. With time, man learned the healing potential of the plants and brought them to his use. This practice evolved into various systems of medicines. With villages and cities going farther from the forests, home of the wild herbs, collection and transportation of medicinal plants became a paid job. As civilisations developed and progessed, the trade of medicinal and aromatic plants evolved. Even today, the task of trading crude drugs is multifarious. It includes collection, grading, transportation and distribution1. Medicinal plants are the richest bio-resource of drugs for traditional systems of medicine, modern medicines, nutraceuticals, food supplements, folk medicines, pharmaceutical intermediates and chemical entities for synthetic drugs. Aromatic plants are a source of fragrances, flavors, cosmeceuticals, health beverages and chemical terpenes.

Evolving Trends In Utilization Of Medicinal and Aromatic Plants

The beneficial effects of the medicinal plants in health care can be well judged from the WHO estimate that around 80% of the world population uses them in some form or the other2. The people using them are mostly those living in the remote or marginal areas and rural and indigenous people who depend heavily on the natural resources of their surrounding environment for their health care needs. These people, over the centuries have developed a wealth of knowledge about the ecology, botany and uses of the diverse medicinal flora of their region. This has given rise to the thriving traditional systems of medicine, specifically in Asia and Europe. These are extensively practised in India as Ayurveda, Unani, Siddha and Tibetan systems. The Chinese system of traditional medicine is the predominant system of healthcare in China, Japan and Vietnam. The European countries of Germany, France, Spain, Italy, United Kingdom and Bulgaria have their own traditional systems of medicine that are very much in use in these

countries. In addition, Africa and the South American countries like Brazil also have their own traditional medicines to cater to the requirements of their people. The drugs are administered by the practitioners or healers who have the ancient knowledge of the plants and the formulations. The practitioner formulates the drugs from a single plant or a mixture of several plants using a specific method and time of: 1. Collection of plant/plant parts 2. Preparation of drug 3. Administration of the drug The efficacy of the drug depends upon the above crucial factors. It is important to note that Homeopathy and modern medicine have their roots in medicinal plants. The compounds derived from medicinal plants form the ingredients of analgesics, antibiotics, heart drugs, laxatives, anti-cancer agents, ulcer treatments, contraceptives, decongestants, hormones, diuretics and anti-parasitic drugs among others. Thus, the myriad uses of medicinal plants in the traditional and modern medicines ensure that their importance cannot be ignored. The importance accredited to them is reflected in the recent upsurge in the demand for herbal remedies in the international market. This is partly fuelled by the recognition of plantbased drugs in the policies of United States and UK. These countries have set up National Institutes and departments of complementary and alternative medicines (CAM) that are investigating the scientific basis of the efficacy of traditional medicines.

Senna used in various marketed formulations

SAFI- A Unani medicine

In the past decade, following change in the trends of utilization of MAPs have been observed:

Increased Use of Traditional Medicines as a means of Health Care:

The medicinal plants form the basis of the traditional systems of medicine. Ayurveda, Siddha & Unani medicines are based mainly on plants, widely used in India, Bangladesh, Nepal, Pakistan & Srilanka3. As already stated, the World Health Organisation (WHO) estimated that 80% of the population of developing countries relies on traditional medicines, mostly plant drugs, for their primary health care needs. Also, modern pharmacopoeias still contain at least 25% drugs derived from plants and many others which are synthetic analogues built on prototype compounds isolated from plants. Demand for medicinal plant is increasing in both developing and developed countries due to growing recognition of natural products, being non-narcotic, having no sideeffects, easily available at affordable prices and sometime the only source of health care available to the poor. Medicinal plant sector has traditionally occupied an important position in the socio cultural, spiritual and medicinal arena of rural and tribal lives of India.

The number of plant species used in different systems of medicine

5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0
Ay ur ve da Un an i Fo lk ha Ti be ta n hy eo pa t M od er n Si dd

No. of plant species

Systems of Medicine

Graph showing the number of plant species used in the practise of different systems of medicines.

Ho m

As per an estimate of 2002, demand of medicinal raw drugs in the country is 2.72 lakh tons as against supply of 1.20 tons9. The top ranking medicinal plants, in terms of their demand status are as under:

Introduction of different products in Consumer Market

Nutraceuticals4- A nutraceutical is a food with a medical-health benefit, including the prevention and treatment of disease. Such foods also commonly are referred to as functional foods, signifying they and/or their components may provide a health benefit beyond basic nutrition. Examples include fruits and vegetables as well as fortified or enhanced foods. While all foods are functional in that they provide nutrients, nutraceuticals contain health-promoting ingredients or natural components that have a potential health benefit for the body. Functional attributes of many traditional foods are being discovered, while new food products are being developed with beneficial

components. Today, researchers have identified hundreds of compounds with functional qualities, and they continue to make new discoveries surrounding the complex benefits of phytochemicals (non-nutritive plant chemicals that have protective or disease preventive properties) in foods.

Nutraceutical containing the herb Echinaceae

MOST COMMONLY USED NUTRACEUTICALS Class/Components Source Flavonoids Flavonols Onions, apples, tea, broccoli

Potential Benefit Neutralize bolster defenses free radicals, antioxidant

which may damage cells; cellular

Isothiocyanates Sulforaphane

Cauliflower,

broccoli, May enhance detoxification of undesirable compounds and bolster defenses cellular antioxidant

cabbage, kale, horseradish

Phenols Caffeic acid, ferulic acid

Apples, pears, citrus fruits, May some vegetables

bolster

cellular may

antioxidant

defenses;

contribute to maintenance of vision and heart health Plant Stanols/Sterols Stanol/sterol esters Polyols Sugar Fortified table spreads, stanol May reduce risk of coronary ester dietary supplements alcohols heart disease

(xylitol, Some chewing gums and May reduce risk of dental other food applications caries (cavities)

sorbitol, mannitol, lactitol)

Prebiotics/Probiotics Lactobacilli, bifidobacteria

Yogurt,

other

dairy

and May improve gastrointestinal health immunity and systematic

nondairy applications Phytoestrogens Isoflavones (daidzein, genistein)

Soybeans foods

and

soy-based May

contribute

to

maintenance of bone health, healthy brain and immune functions; health for women, maintenance of menopausal

Soy Protein Soy protein Sulfides/Thiols Dithiolthiones

Soybeans foods

and

soy-based May reduce risk of coronary heart disease May contribute of to healthy

Cruciferous vegetables

maintenance

immune function Organic products5- Organic is a relatively new term that has entered the market. Botanical
medicines are perceived by the public as a preferable alternative to extensively prepared or synthetic medicines, and thus in order both to present a more green image and to steal a march over the competitor, the concept of organic production of pharmaceutical raw materials has undoubtedly become widespread. At government and supra-government level there are in place regulations on what may be described as organic and many organizations that monitor producers, traders and manufacturers who handle materials of this description. These products for marketing must be certified by ECOCERT6 in compliance with US National Organic Standard and

equivalence with Regulation (EEC) 2092/91. Certainly, valerian root and senna pods are
amongst those organic pharmaceutical products available. In spices and herbs there has been a substantial demand for materials that carry this cachet. Following are the organic products

which are popular with the customers overseas: Fragrant Mushroom, Black Fungus, Dry Date, Chinese gooseberry, Chinese Wolfberry, Ginkgo biloba Leaf. A list7 of marketed organic products is under:

Organic fennel seeds Organic star anise Organic Cortex eucommiae Organic oregano Organic wild mint herb Organic chinese magnolia vine Organic siberian ginseng Organic baikal skullcap root Organic balloonflower root Organic ginkgo leaf Organic valeriana rhizome

Organic Tilia tuan Szysz Organic Rubus saxatilis L Organic angelica Organic milkvetch root Organic largehead atractylodes rhizome Organic common yam rhizome Organic radix scutellariae Organic Radix rehmanniae Organic fleeceflower root Organic Toona sinensis Organic heartleaf houttuynia herb

 Health Care Products- Products such as tooth paste, hair oils and soaps use medicinal plants as ingredients. They are incorporated in the products after suitable extraction, For example amala, peppermint, bhringaraj, lemongrass, Citronella and Zanthoxyllum oils are used in this purpose.

Product containing Emblica officinalis

Infants gripe water- contains anise oil

Aromatherapy- Aromatherapy provides treatment through the stimulation of the sense of smell using pungent materials. The vital element in his treatment is the essential oil extracted from the plants. Essential Oils such as Aretemisia, Jatamansi, Sunpati, Sugandhwal, Juniper and Zanthoxyllum etc. Herbal Drinks- Natural & health food shops such as herbal teas, medicated drinks, tonics, etc. Herbal Cosmeceuticals- Certain cosmetics contain plant extracts or aromatic oils known to have suitable dermatological effects. They contain essential oils as perfumes. For example, aloe vera is used for its skin moisturizing properties. Ginkgo biloba and Centella asiatica are used as anti-cellulite products. Miscellaneous- Various plants possessing either essential oils or have medicinal values are used for flavouring foods. This is done to enhance the taste of food. For example, commonly used cooking ingredients are bay leaves, mint, Rosemary, Lemongrass, Thyme, Basil, etc. Some other food additives include: Juniper berry oil for blending alcoholic beverage, Chiraita for bitter taste in beverages, etc.

 Essentials oils used for a number of purpose are depicted in the figure8 below:

OTC Herbals: Increasing global trend of herbal market9:

Herbals drugs, unless they are adequately standardised in the allopathic way, are almost without any scope of getting prescribed in the western countries. On the other hand, in the developing as well as underdeveloped countries, where the norms are not so strict and also the modern system is yet to completely dominate over the traditional systems, the scope of their marketing is better. Whenever the global trend of the herbal market is discussed, although in the first place it seems to be concerned about the quantitative increase or decrease in the demand and supply status of herbal materials; the actual emphasis is on the value of trading. It is in this latter context that the role of western countries becomes important as the value of trading becomes significantly higher with respect to the marketing in these countries. The countries in Asia, Africa and Latin America see greater scope in earning valuable foreign exchange through export of their plant wealth to the western countries. Although lack of standardisation in the allopathic way creates difficulty for the herbal drugs in getting a govt nod in the west, the hope lies in the OTCs. OTC or Over the Counter drugs can be purchased without doctor's prescription, and hence these items have a

comparatively better scope of marketing. Following are some of the top ranking OTCs used in the west:

World-wide consumption pattern of medicinal plants has noticed some remarkable changes towards the latter half of the last century, thanks to the highly disturbed and/or artificial lifestyle. The latest pattern is based on the consumption pertaining to two major categories of end use, as under:

Pharmaceutical Industry & Research:

Plant products in dried form or in the formulation of Ayurvedic medicines are tried in the pharmaceutical industries for the research purposes with the target to use plant products in the 10

form of extracts, alkaloids, glycosides in modern medicines. For this, phytochemical screening of plants for the isolation of new drugs for various diseases is done. Examples of new drugs isolated from such screenings include Taxol from Taxus baccta, Valepotriates from Valeriana Spp, Vincristin from Vinca rosea.

Evolving Trends In Trade Of Medicinal and Aromatic Plants

Medicinal and aromatic plants (MAPs) are produced and offered in a wide variety of products, from crude materials to processed and packaged products like pharmaceuticals, herbal remedies, teas, spirits, cosmetics, sweets, dietary supplements, varnishes and insecticides. The use of botanical raw material is in many cases much cheaper than using alternative chemical substances. As a consequence, there is an enormous demand in botanicals for domestic use and for commercial trade resulting in a huge trade on local, regional, national and international level. In the past decade, we have seen some of the following revolutions in the trade practices of medicinal plants: Value Addition of Crude Drugs to Extracts: Medicinal and aromatic plants (MAPs) are traded as such in bulk from many developing countries 11

for further value addition in developed countries. The developing countries nowadays, carry out the extraction procedures inland before export. This adds to the value of product which further is benefited in the forex of the country. The first step in the value addition of MAP bioresources is the production of herbal drug preparations (i.e. extracts), using a variety of methods from simple traditional technologies to advanced extraction techniques. This involves employment of techniques like maceration, decoction, and steam distillation for essential oils. Medicinal plants are extracted using suitable techniques. The product so formed is called a semi-processed product. The dried and clean plant material free from foreign organic matter substitutes or adulterants is powdered and extracted with a suitable solvent like pure ethyl alcohol or methyl alcohol or solvents diluted with water in a percolator for cold extraction or in a Soxhlet extractor under reflux for hot extraction. The extracts are distilled under reduced pressure at low temperatures to remove the solvent and the concentrated extracts are spray dried. These extracts can be also standardised to a required strength of the active/marker compounds. This simple or semi-processing of the medicinal plant material adds to the value many fold. Advantages of Inland Semi-processing of crude drugs: Semi-processing is usually beneficial for both the exporting merchants as well as the importing party. This procedure is usually done near the headquarters from where the drug is to be sold to the bigger merchants or near the ports from where the drug is to be trans-shipped. The major merit points of the semi-processing are: It adds to the value of the drug. As compared to the meager labour that is involved in sorting and grading, the profits incurred in return to it are higher. The profit gained in the return of the value-addition is in terms of foreign currency. Hence it is a way of increasing national forex. 12

 It decreases the bulk of the drug and hence decreases the freight cost that shall be incurred from the importer and ultimately affecting the cost of the final product. In case of extracts, since the active principles of the drug have been isolated as extracts, the weight of the drug decreases tremendously with the quality remaining same. With the development of standardized extracts, the obligation of the buyer to check the authenticity and quality of the drug decreases. Since it is the active principle which is of concern and if the label states the standardized composition of the extract then all what the buyer must verify is the claim of the company or simply selecting the products from a reputed company.

Figs. Stages of semi-processing of materials Contractual Farming10: Contract farming is becoming an increasingly important aspect of agribusiness, whether the products are purchased by multinationals, smaller companies,

13

government agencies, farmer cooperatives or individual entrepreneurs. As noted above, the approach would appear to have considerable potential in countries where small-scale agriculture continues to be widespread, as in many cases small-scale farmers can no longer be competitive without access to the services provided by contract farming companies. It must be stressed, however, that the decision to use the contract farming modality must be a commercial one. It is not a development model to be tried by aid donors, governments or non-governmental organizations (NGOs) because other rural development approaches have failed. Projects that are primarily motivated by political and social concerns rather than economic and technical realities will inevitably fail. Advantage for Farmers- The prime advantage of a contractual agreement for farmers is that the sponsor will normally undertake to purchase all produce grown, within specified quality and quantity parameters. Contracts can also provide farmers with access to a wide range of managerial, technical and extension services that otherwise may be unobtainable. Farmers can use the contract agreement as collateral to arrange credit with a commercial bank in order to fund inputs. Thus, the main potential advantages for farmers are:

provision of inputs and production services; access to credit; introduction of appropriate technology; skill transfer; guaranteed and fixed pricing structures; and access to reliable markets.

14

Fig. 3: A Contract Farming Framework

15

WHO specifies guidelines on Good Agricultural and Collection Practices (GACP) for medicinal plants: Traditional medicines, particularly herbal medicines, have been increasingly used worldwide during the last two decades. Unfortunately, the number of reports of patients experiencing negative health consequences caused by the use of herbal medicines has also been increasing. Analysis and studies have revealed a variety of reasons for such problems. One of the major causes of reported adverse events is directly linked to the poor quality of herbal medicines, including raw medicinal plant materials. It has therefore been recognized that insufficient attention has been paid to the quality assurance and control of herbal medicines. Hence, World Health Organization (WHO) has developed a series of technical guidelines relating to the quality control of herbal medicines of which these WHO guidelines on good agricultural and collection practices (GACP) for medicinal plants are the latest. The guidelines provide a detailed description of the techniques and measures required for the appropriate cultivation and collection of medicinal plants and for the recording and documentation of necessary data and information during their processing. It is aimed to "to provide technical support for development of methodology to monitor or ensure product safety, efficiency and quality, preparation of guidelines, and promotion of exchange of information.

e-Trade5- The pace of trading has increased with the developing technology. As the demands of world increased, the traders kept the required pace by trading through the latest technology like fax, telephonically or internet. Traders have placed their brochures on internet which makes their reach wider and even allow the buyer to perform a comprehensive market survey. Just with a single click, one can either shop for a herbal product or place an order in bulk for a crude drug to be utilized in his industry.

16

Fig.: Homepage of www.greentrade.net, an online trading site for medicinal plants

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Role of Globalisation in Trade of MAPs

Globalisation basically attempts at establishing more or less a uniform order in the world pertaining to trade and economic activities9. The endeavour to swiftly enforce such a kind of effort has been facilitated from various directions and in various forms, by some international agencies like the World Bank and International Monetary Fund. Treaties like the General Agreement on Trade and Tariff (GATT) have become the legal means though which this is implemented. Globalisation has created opportunity for the marketing of several products from the developing and underdeveloped countries, in the western countries. For instance, China's textile business has been increased substantially in the international market. However, the apprehension in the third world countries regarding the consequences of globalisation is based on the fact that the concept of globalisation was basically put forward by the rich and developed countries of the west in the interest of their own market economy and political strategy. Free market and free trade were supposed to be the two key slogans of this globalisation movement; and the developed countries were supposed to be the major beneficiaries as they intended to take advantage of the relaxations in the regime of different developing as well as under-developed countries so as to exploit the markets and resources of such countries in their interest. In fact, globalisation has been seen and felt as a strategy of recolonising the third world countries. Commercialisation and commodification of not only the resources, but also the value systems related to them, have been the ultimate outcome of globalisation. For instance, the country can now be ready to sell some of its resources, which were earlier not supposed to be saleable given their strategic-,socio-cultural-, or any other importance, if an alluring price is offered for the same. Such a price is normally offered by multinational/trans-national companies (MNCs/TNCs) as their currency has a greater purchase value than ours. As regards medicinal plants in particular, the impact was supposed to have all or any of the following forms: Increase in export/import of raw drugs

18

 Increase in the domestic and international business of traditional medicines manufactured from the raw drugs. Significant increase in research on the bio-chemical and clinical performances/properties of med. plants. Significant increase in patenting of herbal products. Boost to the phytochemical industry.

19

Marketing Channels
The flow of marketing of medicinal plants is quite long. The location of the cultivation area is relatively far from the traditional herbal medicine industries and the farmers' incapability to perform direct transaction with the parties from the traditional herbal medicine industries make them run the business with distributors. The farmers of medicinal plants at the research area sell their products in fresh form to the distributors in the village. The farmers associated in a group although the number is not big sell their products directly to traditional herbal medicine industries that have already established business partnership with them. Apart from selling their products to the distributors, the farmers also sell them to traders who prepare their own composition of herbal medicine. These traders process their own ingredients and prepare them in the form of powder and sell it to door-to-door herbal medicine sellers. The marketing channels are widespread nationally as well as internationally. There is a large network of traders which are latticed by different echelons of traders, collectors and distributors. These marketing channels can be classified into two types: domestic and international type.

A. Domestic Channels As described in an article on trade in Nepal12, MAPs harvested for commercial purpose are carried away from the villages and district headquarters and are sold to the traders and middlemen in bigger markets. Currently local collectors bring products harvested from near by forests and pastures to village level traders and/or district level traders who stockpile the material and resell it to wholesalers. The wholesalers often place orders for specific products with the

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local/district traders or come to the areas directly to arrange the purchase of the products. The wholesalers then supply the products to markets of India. Many buyers are commission agents. The main demand for medicinal plants comes from big herbal companies and pharmaceutical concerns. These firms generally buy from traders or middlemen. Wholesalers come from time to time to trading towns and road heads the major collection points in the hills. They have agreements with shopkeepers who, in turn, are in touch with a network of village based traders and collectors throughout the less accessible parts of the country. Several medicinal plant wholesalers use the same network of middlemen to buy material and sell on to their contacts in other countries. The figure below illustrates general market channel for MAPs in Domestic Market.

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B. International Channels In international market MAPs are traded under the Herbs and Spices category and they follow the same trade structure and distribution channels of herbs and spices. Very few dealers and brokers deal exclusively with medicinal herbs. In recent years direct trade between producers/exporters in developing countries (mainly medium and large scale) and processors in consuming countries is increasing. The MAP trade is highly dependent on mutual trust and confidence between the suppliers and the processors. The major herb processors as well as large trading companies establish close relationships with their main suppliers through visits and provide technical assistance services on such matters as harvesting and production. International marketing functions through four major trading participants: importers, processors, wholesalers, and retailers. The Figure shows market channels for MAPs in international markets.

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23

MAP Trade- Global Trade Figures

Global Trade of Medicinal Plants13
Product: Medicinal plants HS Code: 1211

General Trade: In the period 2001-2009, the reported annual global export of medicinal plants amounted on average to 575307.8 t valued at US$ 1.4 billion. A main feature of the international trade is the dominance of only few countries: about 80% of the worldwide imports and exports are allotted to only 14 countries (above 2%) each, with the temperate Asian and European countries dominating. Exports: It is evident that the global trade of medicinal plants has increased tremendously. With the figure in value as US $ 1.054 billion in 2001, it is nearing to double in 2009 with US $ 1.801 billion in 2009. EXPORT VALUE- The data below retrieved from www.trademap.org shows the total export values of the leading exporters of the world. Table: Export figures in value of medicinal plants from 2001-2010
Exporte rs 'World 'China 'USA 'German y 'India 'Canada 'Hong Kong, China 'Poland 'Republic of Korea 'Egypt 'France 127033 14817 47832 17915 44023 125312 21889 21515 18743 45202 92628 27935 32370 23451 54515 59935 58408 58342 47962 108209 35828 55304 85921 47893 45058 73610 44891 50989 67215 60122 54408 73536 75704 58731 63756 54004 71392 67715 67267 51551 46481 N.A. N.A. 80928 N.A. 45677 2001* 105479 0 199702 78891 53047 78632 46818 2002* 106124 7 215274 74132 58698 68725 52101 2003* 111175 2 225744 78003 77020 64938 53472 2004* 126640 9 263103 96322 86185 61452 59868 2005* 131287 1 286127 88952 84673 76755 69902 2006* 141884 7 326191 93444 96043 84020 85280 2007* 171379 9 418239 113954 106941 113124 90502 2008* 184806 9 449994 85850 122903 130486 72414 2009* 180111 8 476773 125169 114080 106291 90365 N.A. 62544 2 14357 2 N.A. N.A. 11837 3 2010*

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*Export values in thousand US Dollars

On the export side, China heads the list of the worlds top 12 countries of export with global share of 26.5% in 2009. It exported annually on average about 192,618 t of medicinal plants in the period 2001-2010, which is nearly one-fourth of the total global exportation of medicinal plants. This figure is more than four times as high as the quantities exported from India, and more than three times as high as those exported from Germany and the USA. Further important exporters are Canada and Hong Kong. From 2004 to 2009 the total worlds exports increased by 55% from 523,159t to 549,595 t.

Total Value of exported medicinal plants from 2001-2009

Value (in thousand US Dollars) 2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

The graph above shows the global export values from 2001 to 2009. As is evident, the total export value has increased from US$ 1.054 billion in 2001 to US$ 1.801 billion in 2009. In this time duration, China has been the leading exporter of medicinal plants.

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600000 Value of exports (in thousand US Dollars) 500000 400000 300000 200000 100000 0

Exported value of five countries in years 2001-2009

China USA Germany India Canada

2001

2002

2003

2004

2005

2006

2007

2008

2009

EXPORT QUANTITIES- With respect to the export quantities, the trend of export of medicinal plants is as under. Table: Export figures in quantities of medicinal plants during 2001-2010
Exporte rs 'World 'China 'India 'Mexico 'Egypt 2001* 0 16918 3 49150 17490 No Quanti 'German y 'Poland 'USA ty 13644 10639 16172 14597 13032 12586 17264 14470 11758 18776 15308 15934 15943 18629 16203 19439 11104 12169 18262 18058 11371 17961 18274 No Quantit 'Morocco 'Pakistan 'Hong Kong, China 'Chile 11906 No Quantit 'Indonesi a 7657 y 6502 No Quanti ty 5669 6027 9009 5901 10567 7640 10213 12530 11444 11238 11296 12779 10405 10383 31163 31050 10220 10747 9487 24213 9432 9005 20209 11253 9510 18262 10365 10185 13587 12134 11127 11789 y 13766 11049 11208 12818 10988 10505 17674 16023 14117 14507 2002* 0 150344 45786 23734 12201 2003* 0 16829 1 43459 28981 13883 2004* 52315 9 17488 9 42144 32373 2005* 58951 4 20483 5 50946 38226 2006* 58742 3 20189 4 46348 40406 2007* 62684 8 24156 1 50912 41881 2008* 0 188249 50545 38425 43503 2009* 54959 5 20001 8 48525 30575 19065 22692 0 2010*

*values shown are in tonnes

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Bar Diagram of exporting quantities in the years 2004-2009

Exporting Quantities (in tonnes) 700000 600000 500000 400000 300000 200000 100000 0 2004 2005 2006 2007 2008 2009 World China India

SHARE IN GLOBAL EXPORT VALUE: Table: Share in values in worlds exports (percent):
Exporte rs 'China 'USA 'German y 'India 'Canada 'Hong Kong, China 'Poland 'Republic of Korea 'Egypt 'France 12 1.4 4.5 1.7 4.2 11.8 2.1 2 1.8 4.3 8.3 2.5 2.9 2.1 4.9 4.7 4.4 4.1 2.8 8.5 2.8 4.4 6.5 3.6 3.4 5.2 3.2 3.6 3.9 3.5 3.2 4 4.1 3.2 3.4 2.9 4 3.8 3.7 2.9 2.6 2001,% 18.9 7.5 5 7.5 4.4 2002,% 20.3 7 5.5 6.5 4.9 2003,% 20.3 7 6.9 5.8 4.8 2004,% 20.8 7.6 6.8 4.9 4.7 2005,% 21.8 6.8 6.4 5.8 5.3 2006,% 23 6.6 6.8 5.9 6 2007,% 24.4 6.6 6.2 6.6 5.3 2008,% 24.3 4.6 6.7 7.1 3.9 2009,% 26.5 6.9 6.3 5.9 5

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Share in values in world's exports in Year-2009

'China 'India 'Poland 'France 'Singapore 'Spain 'Chinese Taipei 'Albania 'Netherlands 'Nepal

'United States of America 'Canada 'Republic of Korea 'Mexico 'Chile 'Italy 'United Kingdom 'Turkey 'Hungary 'Australia

'Germany 'Hong Kong, China 'Egypt 'Belgium 'Morocco 'Bulgaria 'Peru 'Austria 'Pakistan

Share of China in value in world exports 2001-2009

Share in value in world's exports(%) 30 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

GROWTH VALUES: The data below shows that Norway has shown the maximum growth in value in 2009-2010 that is 156%. This is followed by South Africa with the growth of 127%. Ethiopia had shown 44 times growth in 2005-2006. Table: Export figures growth in value:
Exporte rs 'Norway 'South Africa 'Ethiopia 'Colombi 20012002, % 0 58 -14 34 20022003, % 237 21 -68 121 20032004, % 175 -76 -100 77 20042005, % 46 78 86 20052006, % -92 -9 4400 7 20062007, % 55 11 868 -2 20072008, % 13 -23 0 5 20082009, % -49 -41 -66 21 20092010, % 156 127 82 60

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a 'Thailand 'Czech Republic 'Paragua y 'China 'Canada 'Brazil 'Singapor e -15 10 187 8 11 17 8 -33 49 -15 5 3 18 -33 -3 -4 9 17 12 -19 33 -6 8 23 9 17 -8 -18 55 8 6 14 22 27 8 -36 35 -23 28 6 36 39 253 32 33 8 -20 42 -3 17 -5 14 6 25 -42 -23 60 48 34 31 31 24 23

Growth in export values seen during the years 2009-2010

Growth in export values(%) 180 160 140 120 100 80 60 40 20 0
ay ol om bi a 'T ha ila 'C nd ze ch R ep ub lic 'P ar ag ua y io pi a hi na fri ca zi l 'B ra a 'C an ad 'N or w 'C ap or e A

'E th

Three trade centres: USA, Germany and Hong Kong The high ranking on both the export and import side in highlights the USA, Germany and Hong Kong (China HK SAR) as important trade centres in the MAP trade. All three countries show both high import and high export quantities. The USA imported on average 46,353 t of medicinal plants valued at 208 million US$ in the period 2001-2010. The export amounted to 12,481 t, a value of 97 million US$. The striking difference in the value of the imported and exported commodity shows that the USA imports mainly plant raw material or at least little processed products, but on export the degree of processing is increased. Germany imported on average 44,750 t per year valued at 125 million US$; 15,356 t of a value of 88 million US$ was exported. Similar to the USA the value of the exported commodity is much higher than the imported one showing that Germany imports mainly plant raw material or

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'S in g

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'C

29

at least little processed products, but that on export the degree of processing is increased. Similar to the USA, Germany is importing medicinal plants from all over the world; during the period 2001-2009 imports originated in at least 1421 countries. Bulgaria is Germanys most important source country, showing average exports of 5,220 t, followed by India with 4,240 t and Poland with 3,850 t. Further, Germany imported on average more than 2,000 t of this commodity from the following countries: Sudan, Chile, Hungary, Egypt and China. Although Germany exported this commodity to 147 countries, 75% of the exports went to only 12 countries, of which Austria is the most important buyer, followed by Switzerland, the USA and Italy. Amongst these 12 countries, only one non-European country, the USA, is listed and in the investigated period eight of them were EU Member States, to which 52% of the German exports were sold. In all, not less than 75% of the exports were destined to European countries. Germany is an important hub of commerce in the intra-European trade, in particular acting as a link between the markets of eastern and southeastern Europe and those of western and central Europe, supplying mainly EU Member States with this commodity. The third trade centre, Hong Kong, is acting mainly in the east- and southeast-Asian trade. Each year, it imported on average 44,183 t valued at 170 million US$ and exported on average 19,109 t of a value of 91.6 million US$. In contrast to the USA and Germany, 92% of the imports were exported. These exports were mostly re-exports, a fact that is pointed out by the comparable prices on export and import. Further, 80-90% of the countrys imports are from a single country, namely China (85% in 2003), the remaining from Indonesia, Canada, the Republic of Korea, India and Thailand. The exports have been destined to many countries all over the world, with preference to east- and southeast-Asian countries; in 2003 the export share of this commodity to the latter amounted to 86%; about 50% were destined to other Asian countries, 10% to China and to Korea, 6% each to the USA and to Canada. Imports: The average net imports of all countries highlight the consumer and the source countries of medicinal plants. Important consumer countries show high positive net imports, main source countries stand out with high negative net imports. Accordingly, Japan is the most important consumer country, the net imports exceeding on average 46,200 t in the period 19912003. Japan is followed by the USA, the Republic of Korea and Germany, their average net imports ranging between ca 31,500 t and 38,000 t. A further European country, France, belongs

30

to the worlds major consumer countries, with average net imports of 14,200 t. Consumer countries generally import raw material or at least partly-processed material that is mainly processed in the countrys enormous industry to, e.g., extracts, aromas, teas, cosmetics or (phyto-) pharmaceuticals, and then either sold as finished products on the domestic market or exported as such. On the other side, China as by far most the important supplier of the raw material to the worlds medicinal and aromatic plants market. India is following on second place. IMPORT VALUES: Table: Import figures of value (in thousand US Dollars) of medicinal plants:
Importer s 'World 'USA 'Hong Kong, China 'Germany 'Japan 'Viet Nam 'France 'Singapore 'Canada 'Chinese Taipei 'Italy 'United Kingdom 'Malaysia 170477 75338 107007 10937 52873 26799 33834 52366 40593 34427 30693 176720 79011 118994 7898 51824 33556 36057 39351 43038 34416 31995 165891 104334 117378 8851 52249 47983 42644 45592 46704 44195 31946 179955 117425 114230 8448 59867 43675 46528 48080 49331 46449 37731 144051 120137 106582 7019 58370 50457 52338 71190 51403 49599 40413 158400 136927 105260 7260 70211 62021 56761 55034 55003 53736 41424 179051 154250 117982 8674 80010 83149 50885 69829 66796 51173 53273 175035 169683 148516 9207 93901 77109 63573 60512 75640 52950 47554 175893 171818 16902 146042 93270 79520 71484 67336 65807 58266 53845 50591 63046 81591 87908 71251 79874 1 2001 110954 5 148216 2002 114776 8 147131 2003 126034 2 161300 2004 137784 3 174524 2005 140607 6 188697 1538226 216257 1788611 247601 1983846 276112 1931123 26816 254121 3 2006 2007 2008 2009 2010

31

Import Values of Top Five Importers of Medicinal Plants

Import Values (in thousand US Dollars) 300000 250000 200000 150000 100000 50000 0 2001 2002 2003 2004 2005 2006 2007

'United States of Am erica Hong Kong, China Germ any Japan Vietnam

2008

2009

The countries of temperate Asia are responsible for 41% of the annual global imports and around 40% of the annual global exports. Europes share of the global import is one third. Regarding single countries the import share of the USA is 13-14% and of Germany 8.9% and Japan 7.6% each. In 2001-2010, USA has overcome Hong Kong (= China HK SAR) in being the most important importer of medicinal plants with an annual average import of approximately 60,043 t. It is followed by the Germany with an average import of about 46,353 t and Hong Kong with 44,183 t a year. Chinese Taipei follows on 4th place, importing on average 38,257 t per year. India stands at sixth position with an average import of about 16,141t.

IMPORT QUANTITIES: Table: Import figures of quantities (in tonnes) of medicinal plants:
Importers 'World 'United States of America 'Germany 'Hong Kong, China 'Chinese Taipei 'Viet Nam 2001 0 55737 39011 33000 39361 3984 2002 46200 4 54699 42495 37398 40709 3098 2003 497449 59009 46748 38975 42742 5173 2004 51385 9 57279 45842 45106 36295 2151 2005 53637 9 59929 49096 46781 40228 1797 2006 546802 57690 51488 45886 38024 1829 2007 543369 67387 47177 50325 36916 No Quantity 2008 553047 67904 45467 52741 31513 No Quantity 2009 0 60303 49853 47438 37694 36118 39092 60499 2010

32

'India 'China 'Japan 'France 'Spain 'Malaysia

7156 22857 29601 26620 11586 14900

8196 23182 29897 23390 11721 10256

12510 19921 30911 19618 13607 10292

13342 29201 29123 23020 13749 11188

15265 36241 26685 20735 16318 12746

17404 25784 26224 21037 16905 11651

19523 19327 28432 18381 15711 11831

22040 28241 29224 18507 20836 9287

29833 26887 26049 16580 14600 12639 38021 27540 17932

Imported Quantities of Top Five Importers in 2001-2009

80000 70000 60000 50000 40000 30000 20000 10000 0 2001 2002 2003 2004 2005 2006

'United States of America Germ any Hong Kong, China Chinese Taipei Vietnam

Imported Quantities (in tonnes)

2007

2008

2009

SHARE IN VALUES: Share in values in worlds imports (percent):

Importers 'World 'USA 'Hong Kong, China 'Germany 'Japan 'Viet Nam 'France 'Singapore 'Canada 'Chinese Taipei 'Italy 'United Kingdom 'Malaysia 15.4 6.8 9.6 1 4.8 2.4 3 4.7 3.7 3.1 2.8 15.4 6.9 10.4 0.7 4.5 2.9 3.1 3.4 3.7 3 2.8 13.2 8.3 9.3 0.7 4.1 3.8 3.4 3.6 3.7 3.5 2.5 13.1 8.5 8.3 0.6 4.3 3.2 3.4 3.5 3.6 3.4 2.7 10.2 8.5 7.6 0.5 4.2 3.6 3.7 5.1 3.7 3.5 2.9 10.3 8.9 6.8 0.5 4.6 4 3.7 3.6 3.6 3.5 2.7 10 8.6 6.6 0.5 4.5 4.6 2.8 3.9 3.7 2.9 3 8.8 8.6 7.5 0.5 4.7 3.9 3.2 3.1 3.8 2.7 2.4 9.1 8.9 7.6 4.8 4.1 3.7 3.5 3.4 3 2.8 2.6 2001 100 13.4 2002 100 12.8 2003 100 12.8 2004 100 12.7 2005 100 13.4 2006 100 14.1 2007 100 13.8 2008 100 13.9 2009 100 13.2

33

'Republic of Korea 'Spain 'Belgium 'China 'Netherlan ds 'Switzerlan d 'India 4 2 1.9 4 1.7 1.6 0.6 3.7 2.3 1.8 4.2 1.9 1.8 0.8 3 2.7 2 2.6 2.2 1.9 0.9 2.9 2.5 2.3 3.3 2.1 1.9 1 3 3 2 2.3 2 2 1.3 3.5 3.3 2.1 1.4 2.1 2.1 1.5 3.1 2.9 2.4 1.9 1.9 2 1.5 2.7 3 2.6 2 1.8 2.4 1.6 2.6 2.6 2.5 2.1 1.9 1.7 1.7

Share in Value in world's imports in 2001-2009

18 16 Share in Value (%) 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007

USA Hong Kong, China Germ any Japan Vietnam

2008

2009

34

Share in Value of World's Imports in Year-2009

3.4 3.5 3.7 4.1 4.8 7.6 13.2 8.9 9.1
'United States of America 'Viet Nam 'Chinese Taipei 'Republic of Korea 'Netherlands 'Poland 'Austria 'Thailand 'Hong Kong, China 'France 'Italy 'Spain 'Switzerland 'Russian Federation 'Czech Republic 'Germany 'Singapore 'United Kingdom 'Belgium 'India 'United Arab Emirates 'Ireland 'Japan 'Canada 'Malaysia 'China 'Mexico 'Australia 'Brazil

3 2.8 2.6 2.6 2.6 2.5 2.1 1.9 1.7 1.7 8.8

0.9 1.1

0.7

0.6 0.6 0.5 0.5

1.1 1.2 1.6

Share of India in World's Import Values in Years 2001-2009

1.8 1.6 Share in Value (%) 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

India stands at 19th position in 2009 in worlds import values. As is seen in graph, Indias export value has increased during the course of 2001-2009. Its net import values had been 0.6% in 2001 and 1.7% in 2009. This indicates the self-sufficiency of the country due to its natural heritage.

35

GROWTH IN IMPORT VALUES: Malawis imports have grown to four times in 2009-2010. Also in 2003-2004, it showed a growth of ten times in 2003-2004. Table: Importers growth in values
Importer s 'Malawi 'Botswana 'China 'Iceland 'Colombia 'Zambia 'Republic of Korea 'United Republic of Tanzania 'Thailand 'Sri Lanka 63 -1 1 -15 22 2 127 12 32 -12 -1 29 23 8 14 1363 10 55 132 13 30 -85 10 -21 48 46 34 20012002, % -100 231 10 2 -24 -63 -4 -30 -34 65 32 -33 -11 20022003, % 20032004, % 1000 -19 41 -16 -9 800 4 20042005, % -91 487 -28 6 26 -50 6 20052006, % 300 -93 -35 -3 1 167 27 20062007, % 75 33 64 10 32 154 4 20072008, % 29 69 17 3 7 56 -3 20082009, % -89 -30 -1 -20 -1 94 -7 20092010, % 400 184 76 58 52 51 49

Top 10 Countries in Imported Growth Values in 2009-2010

450 Imported Growth Values(%) 400 350 300 250 200 150 100 50 0
'Malawi 'Botswana 'China 'Iceland 'Colombia 'Zambia 'Republic 'United 'Thailand of Korea Republic of Tanzania 'Sri Lanka

CONCLUSIONS Based on the analysis of the foreign-trade statistics of 110 countries of the commodity medicinal plants (HS 1211) for the period 2001-2010 the following conclusions may be drawn:

36

 The trade in medicinal plants is dominated by only few countries. Twelve countries make up ca 80% of both the exports to and the imports from the world market. Three international trade centres for botanicals can be recognized, Germany for the intraEuropean, the USA for North and South America, and Hong Kong for east and southeast-Asian markets. The main acting countries in the botanicals trade may be clearly divided into on the one hand consumer countries with high positive net imports and on the other hand source countries with high negative net imports: Japan, the USA, the Republic of Korea, Germany and France are the worlds biggest consumer countries while China, India, Mexico, Bulgaria, Chile, Egypt, Morocco and Albania are the worlds leading source countries for this commodity. In general, the major markets are in the developed countries, while the bulk of the botanicals are exported from developing countries. The bulk of internationally traded botanicals is not or only little processed and of wild origin. Source countries export mainly raw plant material, often of wild origin; the benefit for it is relatively low. The processing, i.e. the value-adding takes mainly place in consumer countries and trade centres. The prices on export support both. The benefit in the source countries is relatively low; the main profit is achieved in only few consumer countries. For international demand, wild MAP resources are not used evenly across the world. Exploitation is confined to only few regions, which may easily lead to overexploitation.

37

Global Trade of Ginseng

Product name: Ginseng HS Code: 121120

The Asian/Chinese/Korean ginseng is Panax ginseng. The American species is P. quinquefolius. This product is under CITES regulation. Ginseng is one of the most favoured commodity for trade. Its trade is within a few countries; a country exporting Korean ginseng is the importer of the American species. Canada has been the leading exporter of ginseng in 2009 and 2010 with its exports being nearly one-third of the global exports. China is the second major exporter with total exports of 2991 t in 2009. EXPORT QUANTITIES: Table: Quantities (in tonnes) of Ginseng exported:
Exporters 'World 'Canada 'China 'Pakistan 'Hong Kong, China 'Republic of Korea 4308 271 3667 200 2001 14357 2235 4594 2002 14562 2275 4683 2003 8461 1498 3631 21 1747 194 2004 12430 1370 3607 1827 2402 357 2005 8748 2522 3026 289 1032 243 2006 7954 2773 2690 606 802 242 2007 9700 2887 2854 916 584 310 2008 0 2671 2864 1437 867 267 No Quanti 'USA 'Poland 'Nepal 'Senegal 'Indonesia 'Chinese Taipei 'Democratic People's Republic of Korea 'France 12 54 24 45 11 41 31 54 23 27 38 39 11 33 6 40 30 30 55 0 24 9 0 0 13 515 0 502 0 498 0 13 0 61 17 0 2 20 0 523 36 0 48 48 0 451 55 0 66 45 423 13 248 1 324 9 450 242 ty 195 383 159 123 120 119 45 43 443 2009 10839 3431 2991 1686 1144 397 440 3022 2862 2010

38

16000 Trade in Quantities (in tonnes) 14000 12000 10000 8000 6000 4000 2000 0 2001 2002

World Trade of Ginseng

2003

2004

2005

2006

2007

2008

2009

Export of Ginseng by Top Five Countries in 2001-2009

5000 Export Quantity (in tonnes) 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 2007

'Canada China Pakistan Hong Kong, China Republic of Korea USA

2008

2009

As is evident from the graph, China was the leading exporter of ginseng in the first half of decade. But after 2005, Canadas export quantities started leading till present.

39

SHARE IN GLOBAL EXPORT VALUES: Table: Share in value in worlds exports:

Exporter s 'Canada 'Republic of Korea USA 'China 'Hong Kong, China 'Chinese Taipei 'Poland 'Republic of Korea, Democrat ic 'Pakistan 'Germany 'Singapor e 'Belgium 'France 'Japan 0.4 0.2 0 0.3 0.6 0.5 0.7 0 0.5 0.6 0.2 0.3 0.4 0 0.8 0.3 0 0.3 0.6 0.7 0.3 0.9 0.2 0 0.4 0.5 0.8 0.1 0.6 0.4 0 0.3 0.5 0.6 0.1 0.7 1.3 0 0.4 0.4 0.2 0.1 0.5 0.5 0 0.3 0.3 0.2 0.2 0.5 0.2 0.2 0.4 0.3 0.6 0.4 0.3 0.3 0.2 0.2 0.2 25.5 1 0 25.2 1.6 0 16.8 1.7 0 20.1 1.1 0.1 13 3.9 0 9.5 4.1 0.2 7.9 4.3 1.1 9.9 4.1 1 7.5 3.5 0.8 2001,% 19.3 18.3 11.2 21.1 2002,% 20.8 7.8 14.8 24.4 2003,% 23.6 14 19 21.5 2004,% 19.2 21.3 13.6 20 2005,% 28.8 20.3 11.5 18.9 2006,% 31.6 19.7 15.1 15.7 2007,% 30.4 18.1 18.5 16.5 2008,% 27.6 22.9 8.2 21.7 2009,% 30 23 16.8 15.9

It is evident from the table and the pie-chart below that ginseng export markets are mainly under Canada, Republic of Korea, USA, China and Hong Kong (each has export share of more than 5%). The same countries are also seen importing ginseng.
Share in value in world's exports of top five exporters in 2001-2009
35 30 Share in value (%) 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009
Canada Republic of Korea USA China Hong Kong, China

40

Share in value of different countries in world's exports in 2009

'Canada 'China 'Poland 'Germany 'France 'Indonesia 'United Kingdom

'Republic of Korea 'Hong Kong, China 'Democratic People's Republic of Korea 'Singapore 'Japan 'Italy 'Senegal

'United States of America 'Chinese Taipei 'Pakistan 'Belgium 'Netherlands 'Malaysia

UNIT VALUE OF GINSENG Table: Unit value of ginseng in US Dollars per tonne
Exporter s 'World 'Canada 'Republic of Korea 'United States of America 'China 'Chinese Taipei 'Singapor e 'France 'Japan 'United Kingdom 'Brazil 'Thailand 49887 10524 260333 46182 14426 141000 30500 2435 67785 11978 276231 111200 24400 145900 23000 2613 419 79633 12368 202647 54385 17537 153625 16000 16000 8000 7500 6000 2571 78827 13630 132900 30154 17204 148000 13154 94899 12767 221111 81222 26444 147286 23800 109099 13719 201729 156000 22692 142500 17000 115982 16312 217600 170125 23576 149333 37800 10000 126 18189 218800 87000 24975 154200 29000 6500 4500 122527 14811 218867 55923 17567 160333 31400 6000 7000 142745 19905 234419 71667 13800 183000 29500 17875 6250 2001 15969 19837 154642 2002 15815 21104 89340 2003 24662 32838 150113 2004 19731 34373 146319 2005 23360 23347 170424 2006 29490 26730 190847 2007 29019 29626 163942 24820 206307 2008 2009 25768 24405 161466 37650 175486 2010

It is evident from the graph that USAs ginseng has been the most valued one for the past decade. Its unit value increased from US$ 49,887 per tonne in 2001 to nearly three times in 2010

41

i.e. US $ 142,745 per tonne. Prices of Chinese and Canadian ginsengs have remained steady and approximated the global average.

EXPORT VALUES: Table: Export value figures (in thousand US Dollars) of ginseng:
Exporters 'World 'Canada 'Republic of Korea 'USA 'China 'Hong Kong, China 'Chinese Taipei 'Poland 'Democrati c Republic of Korea 'Pakistan 'Germany 1000 1115 503 672 892 6 1703 1719 729 2237 1653 109 1158 1376 211 1555 583 370 1282 466 539 1320 1625 996 843 58519 2343 0 57938 3591 0 34971 3445 0 49252 2658 184 26485 7960 11 22366 9683 449 22268 11968 3033 23742 9846 2387 20955 9849 2151 10080 2001 229271 44336 41908 25692 48345 2002 230300 48012 17868 34028 56093 2003 20866 5 49192 29122 39657 44908 2004 24525 1 47091 52236 33344 49163 2005 204350 58881 41413 23535 38632 2006 234560 74123 46185 35348 36904 2007 281484 85529 50822 52192 46555 2008 240548 66294 55084 19683 52093 2009 279284 11377 83733 64102 46928 44300 8 77214 63236 56968 2010

42

Total Exports of Ginseng made in years 2001-2009

Value of Exports (in thousand US Dollars) 300000 250000 200000 150000 100000 50000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

Export values of ginseng of major exporters in years 2001-2010

120000 100000 80000 60000 40000 20000 0 2001 2002 2003 2004 2005 2006 2007 2008

Canada Republic of Korea USA China

Value of Exports (in thousand US Dollars)

2009

2010

The net exports of Canada were valued to be US$ 113,778 thousand which is the maximum recorded so far. Following are Korea, USA and China. 43

Export Values of Ginseng from India in years 2001-2010

Export values (in thousand US Dollars) 3500 3000 2500 2000 1500 1000 500 0 2000 -500 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Imports: IMPORT QUANTITIES: Table: Import figures of quantities (in tonnes) of ginseng:
Importers 'World 'Hong Kong, China 'Chinese Taipei 2001 12426 5131 1171 2002 13218 5309 1112 2003 9330 3579 1413 2004 11720 3639 1286 2005 9123 3080 1750 2006 8275 2760 1741 2007 8731 2224 1886 No Quantit 'Viet Nam 'Japan 'United States of America 'Egypt 'Italy 'China 'Germany 'Canada 'Malaysia 21 625 477 80 282 2868 139 97 256 7 876 439 134 381 2557 159 101 292 18 938 501 148 294 973 183 127 210 343 1756 328 172 342 211 525 75 232 341 216 169 180 273 342 127 228 298 281 288 13 854 625 13 612 652 20 743 897 y 604 828 2008 8770 3168 1219 No Quantit y 851 622 48 420 338 159 253 210 669 662 511 369 351 326 309 225 216 2009 9053 2621 1544

44

Import Quantities of Major Importers of Ginseng In 2001-2009

6000 Import Quantities (in tonnes) 5000 4000 3000 2000 1000 0 2001 2002 2003 2004 2005 2006 2007

Hong Kong, China Chinese Taipei Vietnam Japan

2008

2009

Import Quantities of Ginseng of Major Exporters of ginseng in 2001-2010 Export Quantities (in tonnes) 3500 3000 2500 2000 1500 1000 500 0

Canada USA China Republic of Korea

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

IMPORT VALUES: Table: Import value (in US Dollars) of ginseng imports:

Importers 'World 'Hong Kong, China 'Chinese Taipei 2001 23136 5 12664 5 20772 2002 23393 9 13379 0 8745 123153 13449 2003 219338 2004 24872 4 13441 2 13728 97337 28732 103081 19391 116860 33957 2005 19961 3 2006 211653 2007 244904 2008 22844 8 11316 7 22167 116825 25208 27975 2009 227245 2010

45

'United States of America 'Japan 'China 'Singapore 'Canada 'Viet Nam 'Malaysia 'Italy 'Germany 10386 12661 33982 4763 4133 457 3266 3960 1800 10476 15350 30921 8576 4409 167 3196 4845 1887 13125 17272 14493 8026 6796 555 3023 7080 2459 20641 15647 22348 6612 6882 446 3407 8253 3838 19117 10108 8515 6585 9095 440 4063 2922 870 32686 11249 5940 7029 11589 692 4082 3456 1982 25663 12975 5433 8477 7081 741 6250 3005 4068 18146 19591 6798 5922 8151 654 5031 9521 3382 16066 14571 9588 7635 7464 5564 4259 3924 3767 17112 21554 16165 10180 8325

Of the total imports of US$ 227245 thousand made in 2009, nearly 50% imports have been made by Hong Kong followed by Chinese Taipei, USA, Japan and China. In the pie-chart below, it is evident that these account for the three-fourths of the global share of value in ginseng imports.

Total imported value of ginseng in 2001-2009

Import Values (in thousand US Dollars) 300000 250000 200000 150000 100000 50000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

46

Import values of ginseng of major importers in 2001-2009

Import Values (in thousand US Dollars) 160000 140000 120000 100000 80000 60000 40000 20000 0 2001 2002 2003 2004 2005 2006 2007

Hong Kong, China Chinese Taipei USA Japan China

2008

2009

SHARE IN IMPORTS VALUE: Table: Share in value in worlds imports:

Importe rs 'Hong Kong, China 'Chinese Taipei 'USA 'Japan 'China 'Singapor e 'Canada 'Viet Nam 'Malaysia 'Italy 'German y 'Belgium 'Republic of Korea 'Indonesi a 'United Kingdom 'Macao, China 54.7 9 4.5 5.5 14.7 2.1 1.8 0.2 1.4 1.7 0.8 0.1 0.3 0.3 0.4 0 57.2 3.7 4.5 6.6 13.2 3.7 1.9 0.1 1.4 2.1 0.8 0.2 0.3 0.7 0.6 0.1 56.1 6.1 6 7.9 6.6 3.7 3.1 0.3 1.4 3.2 1.1 0.2 0.2 0.7 1.2 0 54 5.5 8.3 6.3 9 2.7 2.8 0.2 1.4 3.3 1.5 0.2 0.4 0.7 0.5 0 48.8 14.4 9.6 5.1 4.3 3.3 4.6 0.2 2 1.5 0.4 0.1 0.5 0.9 0.5 0.3 48.7 9.2 15.4 5.3 2.8 3.3 5.5 0.3 1.9 1.6 0.9 0.1 0.9 0.6 0.5 0.3 47.7 13.9 10.5 5.3 2.2 3.5 2.9 0.3 2.6 1.2 1.7 0.3 0.6 0.5 0.4 0.5 49.5 9.7 7.9 8.6 3 2.6 3.6 0.3 2.2 4.2 1.5 0.7 0.8 0.6 0.3 0.4 51.4 11.1 7.1 6.4 4.2 3.4 3.3 2.4 1.9 1.7 1.7 0.8 0.6 0.5 0.5 0.5 2001 2002 2003 2004 2005 2006 2007 2008 2009

47

Share in Value in World's Imports of Major Traders in Ginseng in years 2001-2009

70 60 Share in Value (%) 50 40 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008

Hong Kong, China Chines e Taipei USA Japan China Canada

2009

Share in Value of Ginseng Importers in world's ginseng imports in 2009

2.4 1.9 6.4 7.1 1.7 4.2 3.4 3.3 11.1 1.7 0.8 0.6 0.5 0.5 0.5 1.8

'Hong Kong, China 'United States of America 'China 'Canada 'Malaysia 'Germany 'Republic of Korea 'United Kingdom 'Spain 'Poland 'Netherlands 'Philippines

'Chinese Taipei 'Japan 'Singapore 'Viet Nam 'Italy 'Belgium 'Indonesia 'Macao, China 'France 'Egypt 'Australia 'Myanmar

0.2

0.1 0.1 0.1 0.1

0.4

0.4 0.4

51.4

48

UNIT VALUE OF GINSENG IMPORTS: Table: Unit value of ginseng imports: in US Dollars per tonne
Importers 'World 'Chinese Taipei 'Japan 'USA 'China 'Singapore 'Canada 'United Kingdom 'Republic of Korea 'France 'Australia 'Thailand 'Switzerlan d 'South Africa 'Turkey 'Chile 17081 6600 15304 6400 12385 4571 8000 12129 6000 8500 9000 2001 18619 17739 20258 21774 11849 52922 42608 16421 11661 12351 13353 2002 17699 7864 17523 23863 12093 54624 43653 20448 11857 14161 14000 2003 23509 9518 18414 26198 14895 56922 53512 11593 13727 19953 21300 2004 21222 10675 18322 33026 12727 53756 40012 13032 12802 17029 25455 2005 21880 16418 16516 29321 16219 50654 39203 23068 7455 16107 9960 23667 10974 5333 23000 26000 2006 25577 11138 15140 36439 35148 58091 42451 16390 7442 9295 20727 36500 12587 8000 13750 15000 2007 28050 18005 21482 30994 23829 79224 25199 25425 9708 6704 19467 4128 17827 9000 12333 22667 2008 26048 18185 23021 29174 20112 58634 32217 26633 12993 20100 20545 2647 21451 10200 17000 2009 25103 16326 22011 31440 29411 58731 33173 21396 12542 18106 19167 5238 48500 22200 18000 21500 21976 23531 30503 43454 73237 47034 10108 17239 29821 30364 10556 24750 13857 22000 3000 2010

Unit values of imports of major trading countries in 2001-2010

60000 Unit Value (US Dollars per tonne) 50000 40000 30000 20000 10000 0 2000

USA China Canada Republic of Korea World

2001

2002

2003

2004

2005 2006 Years

2007

2008

2009

2010

2011

49

It is evident from the graph that the unit value of imports of Canada has fluctuated a lot. On an average, the global unit import value has a steady and slight increase from US$ 18,619 per tonne in 2001 to US$ 25,103 per tonne in 2009. CONCLUSIONS Based on the analysis of the foreign-trade statistics of the commodity ginseng (HS 121120) for the period 2001-2010 the following conclusions may be drawn: The trade in ginseng is dominated by only few countries. The countries exporting one species are involved in import of other. This has been attributed to faith and demand of the people of one country in the therapeutic value of the species of other country. The main acting countries in the ginseng trade may not be clearly divided into only exporters or importers. The bulk of internationally traded ginseng is cultivated variety from America. American variety is sold at a higher price than the Asian varieties.

50

Global Trade of Liquorice:

Product name: Liquorice HS Code: 121110

Liquorice is obtained from rhizomes of Glycyrrhiza glabra. More than two-third of all formulations contain liquorice. The polysaccharides in the drug are quite useful. Liquorice is very popular in the Chinese medicine The main varieties are var. typica, var. glabra(Spanish), var. glandulifera (Russian), var. violaceae(Persian) and var. uralensis(Asiatic). Exports: EXPORT QUANTITIES: Table: Trade Figures of Quantities of Liquorice: HS Code: 121110
Exporters 'World 'Morocco 'Indonesia 'Ukraine 'Syrian Arab Republic 'Uzbekistan 'Cameroon 'Canada 'Sri Lanka 'China 'France 'Germany 'Afghanista n 'Albania 'Azerbaijan 'Australia 999 2159 0 0 0 3902 41 326 No Quantit y 134 4350 540 1140 2810 0 0 0 4248 2580 361 No Quantit y 0 5364 335 1824 3741 0 170 0 3178 1332 451 No Quantit y 184 6011 150 21 5390 121 0 4153 0 4 3560 185 0 0 0 0 0 0 0 714 4863 0 7 0 3510 84 425 1924 3727 0 0 0 2908 13 301 1780 3924 0 4 0 3450 563 454 0 1 0 0 0 1038 586 72 70 9 0 0 0 0 0 38 0 2001 0 2002 0 0 58 6 2003 0 0 104 14 2004 0 0 570 42 2005 28751 200 573 8 2006 29865 0 285 12 2007 7610 558 412 115 2009 3420 2117 947 205

51

Export Quantities of the leading liquorice exporters in 2001-2009

Export Quantities (in tonnes) 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006

Morocco Indonesia Ukraine Syrian Arab Republic

2007

2009

As is observable from graph above, Syrian Arab Republic is one of the major exporters of liquorice in the past decade. But in 2009, Morocco has made the maximum exports by quantity i.e. 2117 tonnes.
France

Export Quantities of the former leading exporters of liquorice in 2001-2009

Export Quantities (in tonnes) 7000 6000 5000 4000 3000 2000 1000 0 2001 2002 2003 2004 2005 2006 2007

Germany Azerbaijan Australia

2009

UNIT VALUE OF LIQUORICE: Table: Unit values in US Dollars per tonne of liquorice exports
Exporters 'South Africa 'Singapore 'Australia 'Turkey 'Thailand 2001 353 333 1476 874 8467 2002 6000 432 1033 569 1700 2003 2000 1094 627 827 725 2004 3273 2189 702 935 805 2005 13000 6205 0 1089 746 2006 16500 1258 946 1153 800

52

'United Kingdom 'United States of America 'Uzbekistan 'Yemen

30000 3443 534

43000 3515 593

32500 2352 561

34200 1462 561

21857 2244 550 525

57000 2506 766 507

Unit value of highly valued liquorice of the former exporting countries

Unit value (in US Dollars per tonne) 60000 50000 40000 30000 20000 10000 0 2001 2002 2003 2004 2005 2006 Australia Thailand UK USA

An analysis of the unit values in the graph above states that from 2001-2006, Australias liquorice has fetched the highest export prices. SHARE IN VALUE IN GLOBAL EXPORTS: Table: Share in value in worlds exports :
Exporter s 'Morocco 'Indonesia 'Ukraine 'Syrian Arab Republic 'Uzbekista n 'Cameroo n 'Canada 'Sri Lanka 'China 'Colombia 4.6 4.5 0 0 0 28.4 0 4.3 5.9 0 0 0 26.5 0 7.6 8.2 0 1.1 0 22.2 0 3.1 9.8 0 0.2 0 25.7 0 7 7.4 0 0 0 22.8 0 6.1 10.6 0 0.2 0 27.6 0 0 0.2 0 0 0 0 0 0 15 5.8 0 9.4 2.4 1.2 0.2 0 0 0 0 2001 0 0.1 0 2002 0 0.2 0 2003 0 0.2 0.1 2004 0 1.5 0.1 2005 1.3 1.7 0 2006 0 0.8 0 2007 24.1 16.3 2.5 2008 53.2 16.5 11.3 2009 74.1 16.5 5.7

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Share in value in world's exports of present leading exporters in 2001-2009

80 70 Share in value (%) 60 50 40 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008

Morocco Indonesia Ukraine

2009

5.7

2.4 1.2 0.2

Share in value in world's exports in 2009 of exporting countries

16.5 'Morocco 'Indonesia 'Ukraine 'Syrian Arab Republic 'Uzbekistan 'Cameroon 74.1

In 2009, Morocco has made the major exports i.e. 74.1% followed by Indonesia, Ukraine, Syrian Arab Republic, Uzbekistan and Cameroon indicating that in this year exports were made by six countries only. EXPORT VALUES OF LIQUORICE: Table: Export values in thousand US Dollars of liquorice
Exporters 'World 'Morocco 'Indonesia 'Ukraine 'Syrian Arab Republic 33 0 1179 2001 25523 2002 28472 0 53 7 1220 2003 25473 0 55 18 1946 2004 27779 0 422 41 848 2005 27758 359 470 10 1937 2006 28405 0 224 10 1729 2007 6241 1506 1017 157 934 2008 5787 3078 957 654 0 2009 6418 4753 1058 368 151

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'Uzbekistan 'Cameroon

1152 0

1667 0

2098 0

2729 0

2048 0

3007 0

361

546

74 14

World exports' value from 2001-2009

Export Values (in thousand US Dollars) 30000 25000 20000 15000 10000 5000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

IMPORT QUANTITIES OF LIQUORICE: Table: Imported quantities in tonnes of liquorice

Importers 'World 'Indonesia 'Morocco 'Ukraine 'Germany 'Greece 'Hong Kong, China 256 No 'Israel 'Italy 'Japan 'Kazakhsta n 'Republic of Korea Quantity 638 1945 0 3663 129 No Quantity 516 2016 0 4117 58 No Quantit y 406 1352 80 3170 36 No Quantit y 454 1751 172 3408 1465 619 1481 130 2914 775 549 1527 71 2736 0 0 0 442 0 0 0 0 0 0 0 0 0 0 0 14 34 0 0 0 6 707 9 2001 0 41 2002 0 20 68 35 805 3 2003 0 21 111 54 865 5 2004 0 32 102 104 1088 0 2005 3020 4 30 27 73 1017 0 2006 30016 56 72 35 1232 2 2007 0 2589 103 183 0 0 2008 5259 2945 117 683 0 0 2009 1989 1761 106 70 0 0

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Total import quantities of liquorice in 2005-2009

35000 Import Quantities (in tonnes) 30000 25000 20000 15000 10000 5000 0 2005 2006 2007 2008 2009

Import quantities of the major importers of liquorice in 2001-2009

Import Quantities (in tonnes) 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 2007 2008

Indonesia Morocco Ukraine Germany Korea

2009

Indonesia is also one of the major exporting countries of liquorice and in 2007-2009 it has also been the major importer. As will be seen even below, Indonesia and Morocco have done the major imports of liquorice both in value and volume.

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IMPORT VALUES OF LIQUORICE: Table: Import values: (in thousand US Dollars) of liquorice
Importers 'World 'Indonesia 'Morocco 'Ukraine 'Viet Nam 'Germany 'Hong Kong, China 'Ireland 'Israel 'Italy 'Japan 'Republic of Korea 693 86 1473 566 4372 4573 319 152 1753 468 4501 4755 243 219 2341 528 3069 3445 85 305 2604 582 4020 3670 79 0 3222 820 3468 3464 147 0 1704 848 3874 3813 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 1242 2001 29047 35 2002 28228 16 70 19 0 1189 2003 30856 6 158 26 58 1155 2004 36234 41 154 69 32 1802 2005 33934 12 52 58 165 1851 2006 31556 165 136 35 321 1801 2007 8275 3228 211 134 459 0 2008 6570 3970 272 546 0 0 2009 2334 2019 187 74 33 0

Total import values of liquorice in 2001-2009

Import value (in thousand US Dollars) 40000 35000 30000 25000 20000 15000 10000 5000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

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8%

3% 1%
Share in values of liquorice imports by major importers

'Indonesia 'Morocco 'Ukraine 'Viet Nam

88%

CONCLUSIONS Based on the analysis of the foreign-trade statistics of the commodity liquorice (HS 121110) for the period 2001-2010 the following conclusions may be drawn: The trade in liquorice is dominated by only few countries. The countries exporting one species are involved in import of other. This has been attributed their involvement in the semi-processing of the liquorice roots. The main acting countries in the liquorice trade are Morocco and Indonesia in 2006-2009.

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Global Trade of Essential Oils

Product: Essential oils; resinoids; terpenic by-products etc Table: Export trade Indicators of Essential Oils
Trade Indicators Annual Exported Code Product label value 2009 (USD thousand) Trade balance 2009 (USD thousand) growth in value between 20052009 (%, p.a.) 'TOTA L '3301 29 All products Essential oils, nes Conc&aqueous distls of essentl oils;terpenic by'3301 90 '3301 13 '3301 12 '3301 24 '3301 19 '3301 25 '3301 30 '3301 21 '3301 23 '3301 22 '3301 11 '3301 26 '3301 14 prods of essentl oils Essential oils of lemon Essential oils of orange Essential oils of peppermint Essential oils of citrus fruits, nes Essential oils of other mints Resinoids Essential oils of geranium Essential oils of lavender or of lavandin Essential oils of jasmin Essential oils of bergamot Essential oils of vetiver Essential oils of lime 815 789 334 5 -848 -1965 -3161 -954 -1280 -69 -53 -75 -88 -19 -13 438363 302711 188043 175494 170226 144478 71243 64905 24546 -33416 12902 9478 -20460 -31396 29398 51570 14 15 7 10 10 18 -4 64 0 -1 0 6 6 10 -9 12367690752 846388 282425344 -102051 6 10 -2 Annual growth in quantity between 20052009 (%, p.a.)

HS Code: 3301

Annual growth in value betwee n 20082009 (%, p.a.) -23 -17

Annual growth of world imports between 2005-2009 (%, p.a.)

6 12

-19 -1 -9 -22 -15 -20 2 -41

8 16 3 7 12 8 0 -4

-10 -59 -13 -94

-65 -39 -45 -57 -71

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It is observable from the table that all essential oils have done the trading worth USD 12367 billion in 2009. The average growth in value has been 6% p.a. in between 2005-2009. Of all the products covered under HS Code 3301, Essential oil, nes HS Code 330129 has done the most of the business. Its export values had been worth USD 846 billion. It is followed by the HS Code 330190 that is the concentrated and aqueous distillates of essential oils and terpenic by-products of essential oils whose export values had been USD 438 billion. The next commodity with maximum exports is Essential oil of lemon (HS Code 330113) showed a quite high growth of 15% in 2005-2009. Its export values had been USD 302 billion. Essential oil of geranium (HS Code 330121) showed a maximum growth of 64%. Its export values had been USD 64.9 billion with a positive trade balance.
3% 3% 6% 0%

Share of different essential oils in export values of 2009

7% 35%

7%

'330129 8% '330113 '330124 '330125 '330121 13% 18% '330122 '330126

'330190 '330112 '330119 '330130 '330123 '330111 '330114

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Trade balance of different essential oils in 2009

60000 40000 20000 Trade balance USD 0 -20000 -40000 -60000 -80000 -100000 -120000
'3 30 12 9 '3 30 19 0 '3 30 11 3 '3 30 11 2 '3 30 12 4 '3 30 11 9 '3 30 12 5 '3 30 13 0 '3 30 12 1 '3 30 12 3 '3 30 12 2 '3 30 11 1 '3 30 12 6 '3 30 11 4

The graph above shows that nine out of twelve essential oils covered under HS Code 3301 had negative trade balance in 2009.

Table: Import trade Indicators of Essential Oils

Trade Indicators Annual Annual Imported Code Product label value 2009 (USD thousand) Trade balance 2009 (USD thousand) All products Essential oils, nes Conc&aqueous distls of essentl oils;terpenic by'3301 90 '3301 13 '3301 19 '3301 25 prods of essentl oils Essential oils of lemon Essential oils of citrus fruits, nes Essential oils of other mints 413817 336127 190686 175874 24546 -33416 -20460 -31396 8 16 12 8 2 -1 7 3 -16 4 -18 -13 14 15 10 18 12650116096 948439 282425344 -102051 6 12 1 -23 -22 6 10 growth in value between 20052009 (%, p.a.) 'TOTA L '3301 29 growth in quantity between 20052009 (%, p.a.) Annual growth in value between 20082009 (%, p.a.) Annual growth of world exports between 2005-2009 (%, p.a.)

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'3301 12 '3301 24 '3301 30 '3301 21 '3301 11 '3301 22 '3301 23 '3301 14 '3301 26

Essential oils of orange Essential oils of peppermint Resinoids Essential oils of geranium Essential oils of bergamot Essential oils of jasmin Essential oils of lavender or of lavandin Essential oils of lime Essential oils of vetiver 1663 1280 959 -848 -1280 -954 -65 -71 -57 125 20 41 166 -18 -88 -69 175141 166016 41845 13335 3495 2754 12902 9478 29398 51570 -3161 -1965 3 7 0 -4 -45 -39 -2 -3 -7 314 73 -10 -14 -16 14 -56 147 7 10 -4 64 -75 -53

The data analysis shows that there has been decrease in import values of essential oils of geranium, bergamot, jasmine, lavandin, lime and vetiver.

Annual growth value between 2005-2009 of different essential oils

30 20 10 0 -10 -20 -30 -40 -50 -60 -70 -80

Growth value (% p.a.)

'3 30 12 9 '3 30 19 0 '3 30 11 3 '3 30 11 9 '3 30 12 5 '3 30 11 2 '3 30 12 4 '3 30 13 0 '3 30 12 1 '3 30 11 1 '3 30 12 2 '3 30 12 3 '3 30 11 4 '3 30 12 6

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Global Trade of Peppermint Oil

Product: Peppermint HS Code: 330124

Peppermint oil is obtained from leaves of Mentha piperita (Labiatae). Commercially, it is obtained from the cultivated varieties of M. arvensis. Exports: EXPORT QUANTITIES: As is seen in the graph below, India is the largest exporter of peppermint oil in the world with respect to quantity. It has maintained this position throughout the decade except in 2005 and 2006 when USAs export quantities exceeded. Its exports have been 3302 tonnes of the total global exports of 7179 tonnes approximating 49% of the exports. It is followed by USA and Singapore whose exports are 2476 t and 307 t respectively. Table: Export quantities of peppermint in 2001-2010
Exporters 'World 'India 'United States of America 'Singapore 'United Kingdom 'France 'Germany 2071 231 392 214 155 2675 471 378 287 98 No Quantit 'Chile 'Denmark 'Ecuador 'Spain 17 71 0 41 y 63 0 8 2511 165 312 154 76 No Quantit y 118 0 23 31 61 0 18 26 6 0 27 32 5 1 18 33 5 0 33 34 2 1 30 29 28 25 22 33 N.A. N.A. N.A. 2205 164 388 197 86 2674 241 294 247 98 3220 419 236 239 179 3792 701 384 223 174 3804 655 287 229 163 2476 537 307 140 140 2138 384 242 121 2001 9175 2945 2002 11408 4431 2003 10485 3956 2004 7263 3001 2005 6523 2508 2006 7287 2469 2007 10875 5320 2008 10589 5030 2009 7179 3302 2010 N.A. N.A.

*N.A.-Figures Not Available

63

Export quantities of peppermint global and in three major countries in 2001-2009

Export quantities (in tonnes) 12000 10000 8000 6000 4000 2000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 World India USA Singapore

EXPORT VALUES: With respect to export values, USA has made the maximum exports. These have summed to US$ 96 million followed by India and then Singapore. Table: Export values (in thousand US Dollars) of peppermint oil from 2001-2010.
Exporter s 'World 'United States of America 'India 'Singapore 'United Kingdom 'France 'Germany 'Chile 'Switzerla nd 'Egypt 'Spain 58410 20555 4422 7892 3781 2418 395 806 30 298 104 77730 32861 3036 7368 4590 1583 603 637 73226 32526 2614 5829 3340 1463 1266 1069 30 382 376 392 334 745 67382 26444 2603 6304 5649 1912 742 1223 77750 26911 3834 5246 4142 2219 604 640 96679 34300 9653 6210 4922 3840 760 812 114033 69648 18896 8482 5374 4153 903 796 108889 71137 18746 8071 5412 4531 1138 860 144 631 96083 40086 14088 9173 4269 4245 1250 959 718 631 85780 N.A. 6048 7137 4153 N.A. 1111 778 N.A. N.A. 2001 151096 2002 181995 2003 172346 2004 130214 2005 128631 2006 166029 2007 227476 2008 225563 2009 175494 2010 N.A.

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EXPORT UNIT VALUE: The most valued peppermint oil is that of Switzerland whose unit value was US$ 64,833 in 2010. Table: Export unit value (in US Dollars per tonne) of peppermint oil
Exporter s 'World 'United States of America 'United Kingdom 'Singapore 'France 'Chile 'Switzerla nd 'Brazil 'Chinese Taipei 'Paraguay 'Japan 2001 1646 8 2820 4 2013 3 1914 3 1766 8 2323 5 2686 7 6600 0 6624 6584 2700 0 49000 16000 10767 7200 28750 56263 30000 10694 7656 32000 19667 29058 19492 6446 15993 29162 18683 15842 21688 30559 16247 15872 28675 23935 43679 30684 13500 29076 17844 15909 16769 23231 53333 29167 12929 20944 34000 30025 26314 23038 20594 23750 45111 30233 9500 21680 12000 22150 21000 30072 22089 26956 24099 27364 44222 29750 28625 28122 28620 23633 33471 53750 34800 12000 24111 65500 38806 29879 26235 30493 43103 53278 29250 15286 27200 63500 40122 29492 15750 34322 33667 64833 35882 20000 26563 71000 2002 15953 2003 16437 2004 17928 2005 19720 2006 22784 2007 20917 2008 21302 2009 24445 2010

Export unit value of peppermint oil of major exporting countries

Export unit value (US $ per tonne) 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 World USA UK India

It is evident from graph that USA makes the maximum valued exports followed by UK.

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Table: Import values (in thousand US Dollars) of peppermint oil in 2001-2010

Importers 'World 'Singapore 'United Kingdom 'Germany 'Japan 'United States of America 'Belgium 'China 'Mexico 'France 'Switzerland 'Hong Kong, China 2001 16420 8 2130 23834 5366 6503 5289 8770 1770 11543 6686 1484 38175 2002 17684 0 1923 24643 6639 6951 8736 8933 2630 12776 7943 2262 38990 2003 17534 6 2486 23083 6510 8458 10952 8328 3572 13458 6874 2486 30365 2004 13696 9 2612 19966 6124 10644 8593 8357 5354 9256 6317 2532 9878 2005 13378 0 4312 19530 5535 10149 13691 7291 3560 8246 5776 3134 3676 2006 15346 0 8871 22992 8333 8616 18161 7747 2951 9459 5286 4093 6125 2007 17091 5 15545 25731 10053 9910 19325 8609 3875 10276 7224 3509 4249 2008 19351 3 27311 21341 14451 10002 24907 8384 5387 8576 8599 3877 5223 2009 16601 6 29447 20654 14743 11379 9181 6882 6699 5817 5537 5430 4977 6484 5446 9777 11471 11065 16597 23369 2010

It is evident from the table and the corresponding graph that of the USD 166 billion of imports in 2009, Singapore has made the maximum exports followed by UK, Germany and Japan.

Share of different countries in the global import values of peppermint oil in 2009
3.5 4 4.1 5.5 3.3 3.3 3 2.6 2

1.9 1.6 1.5 1.4 1.4 1.3 1.1 7.7

0.7

0.7 0.7

0.8

0.6

6.9

0.5 0.8

8.9 17.7 12.4

1 0.9 1

'Singapore 'United Kingdom 'Germany 'Japan 'United States of America 'Belgium 'China 'Mexico 'France 'Switzerland 'Hong Kong, China 'Italy 'Netherlands 'Indonesia 'Brazil 'Thailand 'Argentina 'Philippines 'Canada 'Denmark 'Republic of Korea 'Russian Federation 'Turkey 'South Africa 'Colombia 'Israel 'Chinese Taipei 'Australia 'Spain 'Poland

The graph below indicates the global import values of peppermint oil from 2001-2009.

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Althogh, the total imports have seen fluctuations but overall, there has been a minor change in the average of the decade.
Global import value of peppermint oil from 2001-2009
Import value (in thousand USD) 250000 200000 150000 100000 50000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

CONCLUSIONS Based on the analysis of the foreign-trade statistics of the commodity peppermint oil (HS 330124) for the period 2001-2010 the following conclusions may be drawn: The trade in peppermint oil is dominated by India, USA, UK and Singapore. India dominates the global export of peppermint oil in quantity where USA does so with respect to values. The countries Singapore and UK are involved in export of one species and in import of other. The main acting countries in the peppermint trade are India and USA in 2006-2009. The global import values of peppermint oils although have fluctuated a lot, by 2009, they have returned to their same value as in 2001.

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6. Major Issues arising in Trade of MAPs

6.1 Conservation Issues: There have been concerns in the past few concerns regarding the
over-collection of wild varieties of medicinal plants. This is leading to loss of biodiversity and leading to them being endangered. This has been attributed to a number of factors: narrow margin of profits for collectors and tradesmen, lack of regulations at collectors echelons. To maintain the stability of supplies of medicinal plants on a long term basis and conserve the species as a form of folklore medicine for the tribal people who cant afford expensive treatments, it is necessary to raise the conservation issues against their over-collection.

Fig: Illegal harvesting of bark in Ngome Forest

6.2 Biopiracy: Biopiracy is used to describe the manipulation of intellectual property rights by those intent on gaining exclusive control over genetic resources without giving adequate recognition or remuneration to the original possessors of these resources. In Asia, biopiracy

68

is practised by multinationals and governments, under various pretexts, on biological and genetic resources found mostly in indigenous peoples communities. It is not only genetic or biological materials that are taken, but also the priceless and age-old collective indigenous knowledge of how to use them, embodied in healing and farming practices indigenous peoples have used for generations, and which have been proved to be scientifically sound and effective. After genetic and biological materials, and the knowledge of how to use them, have been collected, genetically manipulated life forms are patented, and thus privatized and commercialized. Perhaps the most serious appropriation, however, and one that is taking place in almost all communities of indigenous and tribal peoples in Asia, is the appropriation of indigenous knowledge of biodiversity through biopiracy: indigenous peoples knowledge of plants, animals and the environment is being used by scientists, medical researchers, nutritionists and pharmaceutical companies for commercial gain, often without their informed consent and without any benefits flowing back to them. Indigenous people have long been aware of the medicinal properties of plants in their own areas. Traditional knowledge is regarded as common heritage and not as a commodity to be patented for commercial exploitation, perhaps to the exclusion of traditional owners. As with many other aspects of indigenous culture, knowledge of different plants and their healing properties is restricted to a particular class of people. Knowledge of the therapeutic properties of plants is passed on orally, from generation to generation. Indigenous people gain access to such knowledge when they have attained the appropriate level of initiation. Indigenous medicinal knowledge is sought after by medical researchers and pharmaceutical companies to save research time and money. When plants are identified as having commercial potential, their active properties are isolated and the pharmaceutical company takes out a patent on inventions relating to those plants, even though their benefits have been known to indigenous people for years. Indigenous peoples are alarmed that knowledge concerning the nutritional use of indigenous resources is being extensively documented. They are concerned that such information is often given to researchers and others without indigenous people realizing how this information might be exploited. The food industry increasingly recognizes the value of indigenous knowledge concerning the nutritional benefits of particular plants and animals. Traditional knowledge has always been an easily accessible treasure and thus has been

69

susceptible to misappropriation. The traditional knowledge, particularly, related to the treatment of various diseases has provided leads for development of biologically active molecules by the technology rich countries. In other words, traditional knowledge is being exploited for bio-prospecting. Also Traditional knowledge is often misappropriated, because it is conveniently assumed that since it is in public domain, communities have given up all claims over it. Traditional Knowledge includes both the codified (documented) as well as non-codified information (not documented but may be orally transmitted). Bio-piracy of codified Indian traditional knowledge continues, since, this information exists in regional languages, and there exists a language barrier due to which the patent offices are unable to search this information as prior art, before granting patents. Formulations used for the treatment of human ailments from traditional knowledge are time-tested since they have been in practice for centuries. The reliability of the traditional medicine systems coupled with the absence of such information with patent offices, provides an easy opportunity for interlopers for getting patents on these therapeutic formulations derived from traditional medicine systems. Some examples of bio-piracy of traditional knowledge Turmeric (Curcuma longa Linn.)- The rhizomes of turmeric are used as a spice for flavouring Indian cooking. It also has properties that make it an effective ingredient in medicines, cosmetics and dyes. As a medicine, it has been traditionally used for centuries to heal wounds and rashes. In 1995, two expatriate Indians at the University of Mississippi Medical Centre (Suman K. Das and Hari Har P. Cohly) were granted a US patent (no.5, 401,504) on use of turmeric in wound healing. The Council of Scientific & Industrial Research (CSIR), India, New Delhi filed a re-examination case with the US PTO challenging the patent on the grounds of existing of prior art. CSIR argued that turmeric has been used for thousands of years for healing wounds and rashes and therefore its medicinal use was not a novel invention. Their claim was supported by documentary evidence of traditional knowledge, including ancient Sanskrit text and a paper published in 1953 in the Journal of the Indian Medical Association. Despite an appeal by the patent holders, the US PTO upheld the CSIR objections and cancelled the patent. The turmeric case was a landmark judgment case as it was for the first time that a patent based on the traditional knowledge of a developing country was successfully

70

challenged. The US Patent Office revoked this patent in 1997, after ascertaining that there was no novelty; the findings by innovators having been known in India for centuries. Neem (Azadirachta indica A. Juss.)- Neem extracts can be used against hundreds of pests and fungal diseases that attack food crops; the oil extracted from its seeds can be used to cure cold and flu; and mixed in soap, it provides relief from malaria, skin diseases and even meningitis. In 1994, European Patent Office (EPO) granted a patent (EPO patent No.436257) to the US Corporation W.R. Grace Company and US Department of Agriculture for a method for controlling fungi on plants by the aid of hydrophobic extracted Neem oil. In 1995, a group of international NGOs and representatives of Indian farmers filed legal opposition against the patent. They submitted evidence that the fungicidal effect of extracts of Neem seeds had been known and used for centuries in Indian agriculture to protect crops, and therefore, was unpatentable. In 1999, the EPO determined that according to the evidence all features of the present claim were disclosed to the public prior to the patent application and the patent was not considered to involve an inventive step. The patent granted on was Neem was revoked by the EPO in May 2000. EPO, in March 2006, rejected the challenge made in 2001 by the USDA and the chemicals multinational, W. R. Grace to the EPOs previous decision to cancel their patent on the fungicidal properties of the seeds extracted from the neem tree. Kava (Piper methysticum Forster)- Kava is an important cash crop in the Pacific, where it is highly valued as the source of the ceremonial beverage of the same name. Over 100 varieties of Kava are grown in the Pacific, especially in Fiji and Vanuatu, where it was first domesticated thousands of years ago. In North America and Europe, Kava is now promoted for a variety of uses. French company L'Oreal - a global giant with US $10 billion a year in sales - has patented the use of Kava to reduce hair loss and stimulate hair growth. Ayahuasca(Banisteriopsis caapi Mort.)- For generations, Shamans of indigenous tribes throughout the Amazon basin have processed the bark of B. caapi Mort. to produce a ceremonial drink known as Ayahuasca. The Shamans use Ayahuasca (which means wine of the soul) in religious and healing ceremonies to diagnose and treat illness, meet with spirits, and divine the future.

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American, Loren Miller obtained US Plant Patent (no.5, 751 issued in 1986), granting him rights over an alleged variety of B. caapi Mort. which he had collected from a domestic garden in Amazon and had called Da Vine, and was analyzing for potential medicinal properties. The patent claimed that Da Vine represented a new and distinct variety of B. caapi Mort., primarily because of the flower colour. The Coordinating Body of Indigenous Organisations of the Amazon Basin (COICA), which represents more than 400 indigenous tribes in the Amazon region, along with others, protested about a wrong patent that was given on a plant species. They protested that Ayahuasca had been known to natives of the Amazon rainforest and it is used in traditional medicine and cultivated for that purpose for generations, so Miller could not have discovered it , and should not have been granted such rights, which in effect, appropriated indigenous traditional knowledge. On reexamination, USPTO revoked this patent on 3rd November 1999. However, the inventor was able to convince the USPTO on 17th April 2001, the original claims were reconfirmed and the patent rights restored to the innovator. Quinoa (Chenopodium quinoa Willd.)- Quinoa is a staple food crop for millions in the Andes, especially Quechua and Aymara people who have bred a multitude of quinoa varieties. One traditional quinoa variety, Apelawa, is the subject of US patent 5,304,718 held by two professors from Colorado State University who claim the variety's male sterile cytoplasm is key to developing hybrid quinoa. The patent claims any quinoa crossed with male sterile Apelawa plants. Hoodia (Hoodia gordonii(Masson) Sweet ex Decne)- For thousands of years, African tribesmen have eaten the Hoodia cactus to stave off hunger and thirst on long hunting trips. The Kung bushmen, San who live around the Kalahari desert in southern Africa used to cut off a stem of the cactus about the size of a cucumber and munch it. Hoodia is now at the centre of a bio-piracy row. In 1995, South African Council of Scientific & Industrial Research (CSIR) patented Hoodias appetite-suppressing element (P57) and hence, its potential cure for obesity. In 1997 they licensed P57 to British Biotech Company, Phytopharm. In 1998, Pfizer acquired the rights to develop and market P57 as a potential slimming drug and cure for obesity (a market worth more than 6 billion), from Phytopharm for $ 32 million. The San people eventually learned of this

72

exploitation of their traditional knowledge, and in June 2001, launched legal action against South African CSIR and the pharmaceutical industry on grounds of bio-piracy. They claimed that their traditional knowledge has been stolen, and the South African CSIR had failed to comply with the rules of the Convention on Biodiversity, which requires the prior informed consent of all stakeholders, including the original discoverers and users. Phytopharm conducted extensive enquiries but were unable to find any of the knowledge holders. The remaining San were apparently at the time living in a tented camp 1500 miles away from their tribal lands. The South African CSIR claimed that they have planned to inform the San of the research and share the benefits, but wanted to make sure that the drug proved successful. The two sides entered into negotiations for a benefit-sharing agreement, despite complications regarding who should be compensated: the person who originally shared the information, their descendants, the tribe, or the entire country. The San are nomads spread across four countries. However, in March 2002, a landmark was reached in which the San will receive a share of any future royalties. The settlement will not directly affect Phytopharm or Pfizer since the San would be paid out of the CSIRs royalties, as South African CSIR is the patent holder. South African CSIR will probably receive a royalty of around 10% from Phytopharm, which itself will receive royalties from sales from Pfizer. Thus San are likely to end up with only a very small percentage of eventual sales. Conus majus- A US multinational pharmaceutical company, Neurex Inc., with the help of scientists from the University of the Philippines Marine Sciences Institute and the University of Utah, now owns a Philippine snail that produces the worlds most powerful painkiller. The scientists isolated from the Philippine sea snail (Conus magus) a toxin called SNX 111, a painkiller that is claimed to be 1001,000 times more effective than morphine. SNX 111 will be highly profitable when marketed outside the USA. As a painkiller, it will be most important in battlefields, hospitals and drugstores. The Philippine snail is now covered by US patent numbers 5189020, 5559095 and 5587454. The US government is expected to approve, the use of Neurex Inc.s painkiller, as Warner Lambert, one of the worlds major international pharmaceutical companies, has entered into a marketing deal with Neurex. The removal of Philippine genetic resources is in part being made possible by the government, which has embraced globalization

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agreements. The Philippines became a member of the WTO in 1995 and since then, its trade policies have hurt its ecology badly. Other examples- To cite some more examples of biopiracy, the plant Phyllanthus amarus Schum.et Thonn. is used for Ayurvedic treatment for jaundice, a US patent has been taken for use against Hepatitis B. The plant Piper nigrum Linn. is used for Ayurvedic treatment for vitiligo (a skin pigmentation disorder). A patent has been taken in UK for the application of a molecule from Piper nigrum Linn. for use in treatment of vitiligo. The appropriation of elements of this collective knowledge of societies into proprietary knowledge for the commercial profit of a few is one of the concerns of the developing world. An urgent action is needed to protect these fragile knowledge systems through national policies and international understanding linked to IPR, while providing its development and proper use for the benefit of its holders. What is needed is a particular focus on community knowledge and community innovation, enterprise and investment is particularly important. The local communities or individuals do not have the knowledge or the means to safeguard their property in a system, which has its origin in very different cultural values and attitudes. The communities have a storehouse of knowledge about their flora and fauna, their habits, their habitats, their seasonal behaviour and the like-and it is only logical and in consonance with natural justice that they are given a greater say as a matter of right in all matters regarding the study, extraction and commercialization of the biodiversity. A policy that does not obstruct the advancement of knowledge, and provides for valid and sustainable use and adequate intellectual property protection with just benefit sharing is what is needed. 6.3 Illicit trade(Smuggling)-There have been reported cases of illicit trade of MAPs across the
political boundaries. The reasons attributable to the cases have been:

Lack of training of Custom Officials at the countries endowed with slipper orchids Porous nature of the borders of these countries Difficulties in distinguishing in vitro cultured materials or plants from legitimate sources and those obtained illegally Lenient penalties. 74

This factor has further led to concern on the conservation issues of the medicinal plants since smuggled plants are usually beyond the natural regeneration capacity thereby making these plants endangered.

Some of the reported smuggling cases are: 1. Cases of smuggling from India

According to a news report, every year medicinal plants worth Rs.15-20 crores is sent across Myanmar, Bangladesh to China, Germany, Britain, and America.13 A sikkimese blog reported the arrest of four residents of Sikkim for smuggling a hill fungus, known as Yarsagumba in local terminology.14 This fungus is known to have immense medicinal value particularly in respect of treatment of impotence in men. The fungus Cordyceps sinensis is used as an aphrodisiac and has immense medicinal value in traditional Chinese medicines. In pharmaceuticals, it is used to manufacture potent antibiotics, immune system stimulants, anti tumor agents etc. Western Ghats is bestowed with the abundance of Saptarangi (Salacia reticulata) and Guvada in Uttara Kannada and Belguam districts. As they fetch substantial value in the National-International markets, the same are being smuggled.15 These medicinal plants, useful in curing cancer, uterus and intestinal related diseases, are smuggled to Hyderabad, Chennai and from there to international market and Multinational companies relating to Plant Based Medicines. Across the border in Nepal, medicinal plants like jatamashi (Nardostachys grandiflora) have spawned a thriving black market. Despite export restrictions, there's a big market in India for jatamashi's bitter essential oil, which is used in Ayurvedic medicine as a sedative, and to keep hair thick and glossy. Chris Robbins, a program officer with TRAFFIC USA, reports finding jatamashi advertised in U.S. catalogs at prices 300 times what the collector receives for the raw plants.16

2. Cases of smuggling from World- Every year, many cases are recorded of ginseng illicit trade from Russia. Several plants of the family orchidaceae being smuggled have been recorded. In a review article of Orchid Smugglers by Chow Yong Neng, seven cases of orchid smuggling have been reported in 2001-2007.

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7. International Policies Regulating MAP Trade

7.1 Sustainable Development or WildCrafting: In sustainable trade of medicinal plants, new methods are devised to protect key natural resources from the wild while improving the livelihoods and benefits for local people through application of guidelines on sustainable wild collection. With around 15,000 of the estimated 50,00070,000 plant species used for medicine, cosmetics or dietary supplements threatened, the need for developing practical guidelines to ensure supplies are sustainable has never been more urgent. It is important to ensure that all local stakeholdersfrom collectors to local organizations, resource management authorities, and businessesare involved in partnership from the outset, and that clear and realistic market openings should be identified for harvested products and with ways devised to give added value to products and a fair share of benefits to the owners of traditional knowledge. Adequate resources should be allocated for training of local project workers in wild plants resource assessment, harvest monitoring, collection and processing techniques and most importantly for protection of their traditional knowledge and benefit-sharing. A series of challenges and successful approaches exist in the goal towards sustainable collection and trade of medicinal plants. TRAFFIC has made the following recommendations for improving the management of wild plants in a report entitled Wild For The Cure19: Regulatory context. Agencies engaged in sustainable wild plant collection should acquire a thorough understanding of the legal context within which they will be operating, in order to work in concert with it. In settings where laws governing collection and management of wild plants are found to be in need of updating or otherwise improving, legislators should consider using principles of International Standard for Sustainable Collection of Wild Medicinal and Aromatic Plants(ISSC-MAP) as a guide to revision of such laws. In this way, they would simultaneously achieve synergy with goals of international environmental agreements such as the Convention on Biological Diversity (CBD). In contexts where legislation specific to wild plants is absent, legislators should consider mainstreaming ISSC-MAP into national and/or local law.

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 Partnership. Projects for sustainable wild plant collection should engage local stakeholders, for example businesses, local collectors, and local organizations with experience in the field, in partnership, including by identifying clear and realistic market openings for harvested products. Project documentation. In many locations with a strong tradition of organized collection of wild plants there can be a wealth of knowledge on wild plants that is not necessarily written down. Project staff engaged in management of harvest of wild plants should take care to ensure that documentation available to support schemes is appropriate to local needs. Training. Projects on sustainable wild plant collection should factor in ample time and funds for capacity-building and training of local project workers in resource assessment, harvest monitoring, collection and processing techniques, protection of their traditional knowledge, and benefit-sharing. Project time span. Project managers aiming for sustainable wild plant collection should adopt a long-term perspective in order to allow time to support projects through to stability. Certification. Project managers, governments, NGOs and others involved in sustainable collection of wild plants should evaluate on a case-by-case basis whether certification is the best option for reinforcing sustainability. International co-ordination. The current project benefited from centralized and fully funded coordination and standardization of efforts on the ground, including to support compliance and promote relevance to inter-governmental conservation and development frameworks, such as the CBD. Similar projects should take care to install oversight at this higher level. Research. Scientists and other individuals with appropriate local knowledge should consider prioritizing research on plant species for which sustainability of wild harvest is a major concern, to safeguard species important for health and livelihoods. Initiation of a value-adding strategy and market development. Development agencies involved in projects adding value to raw plant material should also support capacity-building and tools for resource management.

Initiatives taken towards WildCrafting18: People world across understand the problems faced by the biodiversity and the urgent need of sustainable collection of medicinal plants. Hence, steps are being taken towards the same. Some of the recent initiatives taken are:

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1. Berlin, Germany, 15th September 2010Worldwide application of a new standard for sustainable harvesting of wild medicinal, aromatic, dye and food plants and trees is charting new ways to protect the species and their habitats and benefit the communities that depend on them, according to a new report from world wildlife trade monitoring network, TRAFFIC. 2. Karnataka, India- It is now possible to collect the resin of the White Palle tree used in traditional Indian medicine and incense without removing the bark and killing the trees that provide it. 3. Cambodia- A new co-operative has boosted returns to medicinal plant harvesting communities through better harvesting, drying and marketing. 4. Brazil- A womens co-operative in Amazonia State and a major natural cosmetics company are aiming to co-operate on the marketing of sustainably harvested products. 5. Lesotho and South Africa- A harvesting and management strategy for Kalwerbossie, whose tubers are used to treat digestive disorders, will ensure sustainable harvest of the plant, thus providing long term benefits to communities. 6. The BMZ-funded Saving Plants that Save Lives and Livelihoods project has taken an important step in bridging the gap between words and action to manage wild plants for the future of humankind. FairWild Standard- The newly developed FairWild guidelines are an invaluable tool to support sustainable harvesting and management regimes, a worldwide challenge facing the conservation community. The contribution of the FairWild Standard to improving local livelihoods and conservation of wild plant diversity were feature during a series of events at the 10th Conference of the Parties (CoP) of the Convention on Biological Diversity (CBD) in Nagoya, Japan, from 1829 October 2010. Events included a public one at Nagoya Gakuin University on 19th October and a CBD CoP 10 side event on 22nd October. The project examined implementation of the International Standard for Sustainable Collection of Wild Medicinal and Aromatic Plants (ISSC-MAP), which has subsequently been fully incorporated within the expanded FairWild Standard. The revised FairWild Standard FairWild Standard version 2.0 was launched on 8th September 2010 and is aimed to make sure of fair trade of medicinal plants.

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7.2 CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora It is an international agreement between governments whose aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival. Annually, international wildlife trade is estimated to be worth billions of dollars and to include hundreds of millions of plant and animal specimens. The trade is diverse, ranging from live animals and plants to a vast array of wildlife products derived from them, including food products, exotic leather goods, wooden musical instruments, timber, tourist curios and medicines. Levels of exploitation of some animal and plant species are high and the trade in them, together with other factors, such as habitat loss, is capable of heavily depleting their populations and even bringing some species close to extinction. Many wildlife species in trade are not endangered, but the existence of an agreement to ensure the sustainability of the trade is important in order to safeguard these resources for the future. Because the trade in wild animals and plants crosses borders between countries, the effort to regulate it requires international cooperation to safeguard certain species from over-exploitation. CITES was conceived in the spirit of such cooperation. Today, it accords varying degrees of protection to more than 30,000 species of animals and plants, whether they are traded as live specimens, fur coats or dried herbs20. CITES is an international agreement to which States (countries) adhere voluntarily. States that have agreed to be bound by the Convention ('joined' CITES) are known as Parties. Although CITES is legally binding on the Parties in other words they have to implement the Convention it does not take the place of national laws. Rather it provides a framework to be respected by each Party, which has to adopt its own domestic legislation to ensure that CITES is implemented at the national level. For many years CITES has been among the conservation agreements with the largest membership, with now 175 Parties1.

Working: Roughly 28,000 species of plants are protected by CITES against over-exploitation through international trade. They are listed in the three CITES Appendices.5

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Appendices I, II and III to the Convention are lists of species afforded different levels or types of protection from over-exploitation22. Appendix I lists species that are the most endangered among CITES-listed animals and plants (see Article II, paragraph 1 of the Convention). They are threatened with extinction and CITES prohibits international trade in specimens of these species except when the purpose of the import is not commercial, for instance for scientific research. In these exceptional cases, trade may take place provided it is authorized by the granting of both an import permit and an export permit (or re-export certificate). Appendix II lists species that are not necessarily now threatened with extinction but that may become so unless trade is closely controlled. It also includes so-called "look-alike species", i.e. species of which the specimens in trade look like those of species listed for conservation reasons. International trade in specimens of Appendix-II species may be authorized by the granting of an export permit or re-export certificate. No import permit is necessary for these species under CITES (although a permit is needed in some countries that have taken stricter measures than CITES requires). Permits or certificates should only be granted if the relevant authorities are satisfied that certain conditions are met, above all that trade will not be detrimental to the survival of the species in the wild. Appendix III is a list of species included at the request of a Party that already regulates trade in the species and that needs the cooperation of other countries to prevent unsustainable or illegal exploitation (see Article II, paragraph 3, of the Convention). International trade in specimens of species listed in this Appendix is allowed only on presentation of the appropriate permits or certificates. However, there are a few exceptions. Appendix I plants that have been artificially propagated must be accompanied by a certificate of artificial propagation or an export permit, but an import permit is not required. These plants can be traded for commercial purposes. Both orchid seedlings and tissue cultures, if grown on sterile media in sterile containers, are exempt from CITES permit requirements. Many Appendix II plants, excluding cacti, are also exempt from CITES permit requirements.

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International Enforcement CITES representatives convene at least once every 2 or 3 years to evaluate the state of the worlds wild fauna and flora. During these conventions, national representatives vote on whether to transfer species from one appendix to another and whether to add or remove a species from the list. Participating countries enforce the treatys provisions and impose penalties upon individuals caught smuggling plants and wildlife listed in the appendices. Both importing and exporting countries are held accountable for adhering to CITES provisions and regulations in the trading of plants and animals. Countries must ensure that species are not illegally exported or imported from one country to another. Persons caught smuggling plants or wildlife from one country to another may face criminal prosecution. U.S. Enforcement As the U.S. management authority, the U.S. Department of the Interiors U.S. Fish and Wildlife Service (FWS) is responsible for overseeing all aspects of CITES within the United States. In particular, FWS enforces all CITES regulations with regard to endangered animals or products from these animals being transported into or out of the United States. FWS ensures that importers and exporters have the proper permits for transporting and trading these animals or products. The U.S. Department of Agricultures (USDA) Animal and Plant Health Inspection Service (APHIS)21 enforces the provisions of CITES related to plants and works closely with FWS. Officials from APHIS Plant Protection and Quarantine (PPQ) program inspect all plant shipments imported into the United States through the 16 plant-inspection stations located nationwide. Depending upon inspection results, APHIS employees may refuse entry, seize, or release plants that are imported or presented for export. APHIS is responsible for enforcing plant quarantine laws and the CITES permit requirements during these plant inspections. In addition, employees of the U.S. Department of Homeland Securitys Customs and Border Protection unit now handle inspection of nonliving CITES imports such as lumber, medicinal products, and other related items at U.S. ports-of-entry.

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APHIS Role In fiscal year 2005, nearly 1.5 billion plants were inspected for quarantine purposes at APHIS 16 plant inspection stations. More than 50 million of those plants were regulated because of their status as endangered species. APHIS also facilitated the export of 3 million CITES plants and more than 2 million kilograms of CITES-regulated products such as ginseng. If plants protected by CITES arrive at an APHIS plant-inspection station without the appropriate documents or the plants do not match the documentation accompanying them, inspectors seize the plants immediately. APHIS then obtains legal ownership through forfeiture procedures. APHIS notifies FWS of all seized plants protected by CITES. FWS distributes these plants to designated rescue centers throughout the United States. One such rescue center is the Smithsonian Institution in Washington, DC, where many endangered orchids are displayed for the publics enjoyment and education. CITES officials of the countries from which the seized plants originated are notified of the plants placement in the rescue center, and the exporting country may arrange to bring the plants back at its own expense. FWS also consults with APHIS to ensure that exotic animal species entering the country under CITES meet animal-quarantine requirements so that these animals will not introduce pests and diseases that could endanger animal health or the livestock industries of the United States. When U.S. zoological facilities apply to FWS for CITES permits to import protected animals, FWS verifies with APHIS that these facilities are in compliance with the Animal Welfare Act. APHIS also manages two quarantine facilities for smuggled birds. After the birds undergo quarantine, APHIS works with FWS to place these smuggled, endangered, and threatened birds in aviaries or zoological parks. Securing Necessary Permits Importing CITES-protected plants into the United States requires several documents from various government agencies. All permit arrangements should be made as far in advance as possible. APHIS inspectors cannot make last-minute arrangements to allow endangered plants into or out of the United States without the proper documentation from FWS and the CITESmanagement authorities of other countries. Permits that may be required include the following: Export permits from the wildlife permit office of the country of origin. Import permits for Appendix I material from the FWS Federal Wildlife Permit Office.

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 Import permits from APHIS. All plants imported for growing or propagation must meet plant health permit and quarantine requirements. A Protected Plant Permit (or general permit) from APHIS for commercial shipments of CITES-regulated plants.

7.3 Indigenous Cultural and Intellectual Property Rights (ICIPR): ICIPR24 is a reference to indigenous peoples' rights to their heritage. Indigenous peoples' heritage is a living heritage and it includes objects, knowledge, performing works, and literary works - all of those things created in the past, now and in the future. The nature and use of indigenous peoples' heritage is passed down from generation to generation. Usually the particular objects, sites and knowledge pertain to a particular indigenous group or territory. Essentially, ICIPR are a bundle of rights of indigenous peoples which protect the right to:

own and control ICIPR commercialise ICIPR in accordance with traditional laws and customary obligations benefit commercially from the authorised use of ICIPR enjoy full and proper attribution protect significant and sacred materials

The intellectual and cultural property rights (ICPR) of indigenous peoples are also under threat. These include their beliefs, knowledge (agricultural, technical, medicinal, ecological), movable and immovable cultural properties (human remains; sacred burial and prayer grounds), customary laws, traditions, rights to flora, fauna and biodiversity in their midst, arts and artistic works and other forms of cultural expression, handed down through the generations. These intellectual and cultural properties are living traditions that are vital to the identity and cultural survival of the indigenous peoples. They are holistic and cannot be divided. Given that indigenous knowledge is collectively owned, only the group as a whole may consent to sharing indigenous cultural and intellectual property. In many instances, use of indigenous arts and

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cultural expression takes place without the knowledge or permission of the indigenous artists, or the artists communities. Sometimes such use is inappropriate, derogatory or culturally offensive. Indigenous peoples are also concerned about the unauthorized use and reproduction of secret or sacred material and spiritual rituals for commercial purposes. This type of appropriation results in the disclosure of secret/sacred material to those not authorized to know or view such material. As biopiracy has spread, indigenous peoples saw that the quest for plant and animal species necessitates access to their lands. This has led governments to exercise rights over the land, and to the denial of the rights of indigenous people to their traditional lands. The process places indigenous people in positions where they cannot manage and develop their inherited medicinal and agricultural knowledge. Government conservation authorities and multinational companies are collecting specimens from indigenous lands as part of their programmes to create inventories. The collected species are made available for research without reference to the owners from whom the specimens were collected. Under the existing framework of intellectual property rights, indigenous peoples cannot control the use of the genetic material taken from them. UN efforts to protect indigeneous peoples ICIPR24: As indigenous peoples in Asia strengthen their effort to win recognition of their rights, a number of international instruments have been initiated by the UN to support the rights of indigenous peoples to protect and enjoy their cultural heritage. One was the Draft Principles and Guidelines for the Protection of the Heritage of Indigenous People, which recommends standards for governments to ensure that the heritage of indigenous peoples survives for future generations and continues to enrich the common heritage of humanity. The UN Educational, Scientific and Cultural Organization (UNESCO) also co-established the Model Treaty on the Protection of Expressions of Folklore against Illicit Exploitation. The Treaty recognizes indigenous peoples as the traditional owners of artistic heritage, including folklore, music and dance, created within indigenous territories and passed down through the generations. Yet these international enactments have failed to provide a working system and applicable standards that could ensure the implementation and enforcement of the instruments. In particular, the nature of indigenous peoples intellectual property, which is often inseparable from spiritual, cultural, social and economic aspects of indigenous life, and the notion of collective ownership

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of such property, are not adequately addressed in existing international intellectual property law. This is not to say that there have been no international efforts to address the problem of indigenous peoples resources. The most widespread and fundamental threat to indigenous peoples resources is the failure (often by states) to respect and protect the right of indigenous peoples to control their own territories under their customary forms of ownership. Recognizing this, the UN has sponsored several initiatives to resolve the problem. ILO Convention 169- The International Labour Organization is the only international body which has produced an international legally binding instrument on indigenous peoples ILO Convention 169. ILO Convention 169 ratified an earlier international instrument adopted by the ILO in 1957 the Indigenous and Tribal Populations Convention 107, which was the first attempt to codify indigenous peoples rights in international law. Adopted in Geneva in June 1989, ILO Convention 169 hails the distinctive contributions of indigenous and tribal peoples to the cultural diversity and social and ecological harmony of humankind and to international cooperation and understanding. It also addresses land and resource rights concerns. One problem is that, as of August 2002, only 17 countries had ratified ILO Convention 169. The only AsiaPacific country that has ratified the Convention is Fiji. The other countries that have ratified the Convention are Argentina, Bolivia, Brazil, Colombia, Costa Rica, Denmark, Dominica, Ecuador, Guatemala, Honduras, Mexico, The Netherlands, Norway, Paraguay, Peru and Venezuela. It is unfortunate that, over a decade after ILO Convention 169 came into force, controversy continues. The Convention has been criticized for not fully embodying the indigenous point of view. Indeed, some imply that the wording of the document is a direct affront to the rights of indigenous peoples. Directly after the adoption of Convention 169 by the ILO, the Indigenous Peoples Preparatory Meeting in Geneva produced a resolution rejecting it and asking governments not to ratify it. Yet, despite its shortcomings, most indigenous leaders and organizations see the Convention as an important step towards an improvement of their human rights situation and are eager for governments to ratify it. UNDP Sponsored Study- The study, entitled Conserving Indigenous Knowledge: Integrating Two Systems of Innovation, was carried out by the Rural Advancement Foundation International (RAFI). The results of the study were disseminated in regional

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meetings of indigenous organizations to raise awareness of traditional knowledge and to address ways in which indigenous peoples can preserve and protect their cultural heritage and intellectual property.
Legislative Measures Enforced By Countries in protection of peoples ICIPR: Creating,

modifying and implementing national laws on traditional knowledge and genetic resources is the most visible action taken by governments. This law-making is spurred on by pressure to meet international agreements. The general trend in Asia is towards the commercialization of genetic resources and the expansion of IPRs over traditional knowledge. This trend is most visible in the adoption of Union for the Protection of New Varieties of Plants (UPOV)-style legislation that does little to recognize and reward farmers innovation in plant-breeding. UPOV is an intergovernmental organization with headquarters in Geneva, Switzerland. It was established by the International Convention for the Protection of New Varieties of Plants to oversee the protection of new varieties of plants under an intellectual property right. Attempts have been made to slow down this trend until impact assessments of the proposed changes are fully explored, but with little success. Nevertheless, many developing countries are also attempting to promote legal changes to protect biodiversity and related traditional knowledge. In some countries, governments have seemingly made efforts to empower local communities, such as in the Philippines with the Indigenous Peoples Rights Act (IPRA); in Thailand, where the indigenous peoples were granted a Peoples Assembly and the introduction of the Thai Traditional Medicine Law that seeks to protect traditional knowledge related to medicinal plants; in Bangladesh, where a Department of Indigenous Peoples Development was created along with the drafting of a Biodiversity and Community Knowledge Act; and in India and Indonesia where an amendment to the Indian Constitution and the decentralization law allow village bodies (panchayats) and adat villages to take decisions on local biological resources. But new laws can also bring in more administrative structures and accompanying bureaucracy, and often depend on political will. At the local level, multiple bodies and groups, often with overlapping jurisdictions, may increase the problem of local resource management and create unnecessary conflicts with informal systems of control and management.

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7.4 Overview of Protection of Plant Varieties and Farmers' Rights Act (PPV and FRA): The law enacted in India as an implication of ICIPR26: After several years of deliberations and several amendments in the original draft, the latest draft of "Protection of Plant Varieties and Farmer Rights Act" (PPV and FRA), 2001 was passed by the Parliament (Lok Sabha) in August 2001. The President also gave his assent to the Bill on November 5, 2001, so that the Bill was notified as Act No. 53 of 2001, in the Gazette of India. It was to be enforced from a date that was to be notified by the Union Minister of Agriculture. As a signatory to the Trade Related Intellectual Property Rights (TRIPS) agreement under the World Trade Oragnization (WTO) regime, it was mandatory for the Government of India to enact law to provide for protection of plant varieties either by patents or by a sui generissystem (a unique set of laws) or by a combination of both. In the PPV and FRA, the provisions relating to breeders' rights are more or less the same as recognised by the International Union for the Protection of New Varieties (UPOV). One of the most important feature of this bill is that it grants Fanners' Rights by recognizing fanners as breeders, cultivators and conservators of the seeds in their possession. It allows the fanners to use for resowing or sell their harvested seed, although they will not be allowed to sell the seed under a brand name. In other words the farmers will not be able to sell their harvested seed to another farmer for the purpose of raising a crop for commercial seed production. A farmer will also be able to register a variety developed by him, provided it conforms to the criteria of novelty, distinctiveness, uniformity and stability. India is the first country in the world which has provided for Farmers' rights in their Protection of Plant Variety Act. The PV and FRA have been described by plant breeders and NGOs with both positive and negative aspects.

Positive and negative aspects of PPV and FRA: Positive aspects (gains) Negative aspects (losses) 1. Farmers get a legal right to sell seed of 1. Uncertainly about whether farmers can trade in varieties. 2. Farmers are recognized as breeders seeds 2. A bureaucratic authority to monitor

implementation of the Act 3. Researches will have right to conduct 3. The procedure for registration of varieties is

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experiments with patented varieties

lengthy, expensive and stringent for farmers (as also

for breeders) 4. No varieties with terminator genes will be 4. Filing of law suits against farmers possible registered 5. Any government agency or NGO can file 5. Researcher's use of protected varieties may allow a claim on a 5. variety developed by local entry of GM crops by the' back door community 6. Farmers rights proposed for the first time any where in the world The bill also grants breeders the rights to conduct research with a branded variety in order to create a new variety, but distinguishes between a new variety and an essentially derived variety (EDV). The bill provides for the establishment of a National Gene Fund, which would facilitate 'benefit sharing' between the farmers and any body interested in their knowledge. The bill also calls for setting up of the 'Protection of Plant Varieties and Farmers' Rights (PPV and FR) Authority' which' will consider applications for granting breeder's rights to a new variety and will also give permission to use an EDV.

References:

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1. Rachelle D. Development of Civilizations in Past to Present; Brown Paper Publishers, London. 2nd ed; 1982. pp 367-8 2. Lange D. International Trade In Medicinal And Aromatic Plants pp 1-2. Available online at http://library.wur.nl/frontis/medicinal _aromatic_plants/11_lange.pdf. Retrieved on March 8th, 2011 at 7:04pm 3. http://nccam.nih.gov/health/whatiscam/D347.pdf D347. Retrieved on March 8th, 2011 at 7:10 pm 4. Nutraceuticals in Issue Brief prepared by North Carolina Association for Biomedical Research, Pp 3. Available online at http://www.aboutbioscience.org/pdfs/Nutraceuticals.pdf. Retrieved on March 8th, 2011 at 7:15pm 5. Evans W.C., Commerce in Crude Drugs in Trease and Evans Pharmacognosy, 9th ed,

Published by Elseviers Publishers, UK; 1999. pp 57-60

6. http://www.ecocert.com/en/our-approach on March 13th, 2011 at 1:30 pm 7. http://www.ota.com/ Retrieved on March 8th, 2011 at 7:20 pm 8. http://files.dcp2.org/pdf/DCP/DCP69.pdf Retrieved on March 8th, 2011 at 7:12 pm 9. Rath B. in Globalisation, Global Trend in Herbal Market, and The Impact Thereof on Medicinal Plants in Orissa pp 4-8. 2011 at 6:36pm 10. http://etd.uasd.edu/ft/th9571.pdf. retrieved on March 10th, 2011 at 2:30pm 11. http://apps.who.int/medicinedocs/pdf/s4928e/s4928e.pdf Retrieved on March 8th, 2011 at 7:35pm 12. Subedi B.P., Marketing of Medicinal and Aromatic Plant Products of Nepal in Domestic and International Markets http://www.vasundharaorissa.org/Research %20Reports/GlobalisationAndMedicinalplantsOfOrissa.pdf. Retrieved on February 2nd,

Asia Network for Sustainable Agriculture and Bioresources Available online at

http://www.ansab.org/wp-

(ANSAB) 2011 at 10:35pm

pp2-3.

content/uploads/2010/07/marketing-_MAPs_DOF_training.pdf

Retrieved on March 27th,

13. Data collected using the databases from http://www.trademap.org/ 14. The Smuggling of Medicinal Plants. Retrieved from http://www.eng.chauthiduniya.com/2011/01/the-smuggling-of-medicinal-plants on February 27th, 2011 at 10:22pm 15. http://sikhim.blogspot.com/2008/07/arrests-in-sikkim-for-smuggling.html

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16. Measures

to

prevent

medicinal

plants

smuggling.

Retrieved

from

http://udayavani.com/news/5168L14-Measures-to-prevent-medicinal-plants-smuggling.html on February 27th, 2011 at 10:35pm 17. Smuggling 10:45pm 18. http://www.traffic.org/home/2010/9/15/sustainable-wild-plant-harvesting-proves-a-globalsuccess.html. Retrieved on March 10th, 2011 19. Wild for a Cure. 8:58am in North-East India. Retrived from http://findarticles.com/p/articles/mi_m1594/is_n1_v9/ai_20417687/ on February 27th, 2010 at

Available

online

at

http://www.traffic.org/species-

reports/traffic_species_plants14.pdf. Retrieved on March 10th, 2011 at 9:05 am

20. http://www.cites.org/eng/disc/what.shtml Retrieved on February 10th, 2011 5:35pm 21. http://www.cites.org/eng/app/index.shtml. Retrieved on February 10th, 2011 5:17pm 22. http://www.cites.org/eng/app/Appendices-E.pdf Retrieved on February 10th, 2011 5:16pm 23. http://www.cites.org/eng/disc/species.shtml. Retrieved on February 10th, 2011 5:27pm 24. Bengwayan M.A. Intellectual and Cultural Property Rights of Indigenous and Tribal Peoples in Asia pp-14 Available online at http://www.unhcr.org/refworld/pdfid/469cbf970.pdf. Retrieved on March 8th, 2011
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