Learn about herbal & medicinal plant farming in India – top crops, cultivation practices, government schemes, profitability, and export potential for 2025.
Introduction
Herbal and medicinal plant farming has emerged
as one of the most profitable and sustainable farming opportunities in India
and worldwide. With growing awareness about Ayurveda, herbal medicines,
nutraceuticals, cosmetics, and organic health products, the demand for
medicinal plants is increasing rapidly.
India, known as the "botanical garden of
the world," is home to more than 7,000 medicinal plant species, out
of which around 900 are in high commercial demand. The global herbal
market is expected to reach USD 600 billion by 2030, with India being a
major supplier.
Medicinal plant farming is not only profitable
but also sustainable. Most herbs require low inputs, are drought-resistant, and
can be grown on marginal lands. Farmers can also benefit from government
schemes, subsidies, and buy-back contracts offered by herbal companies.
Why
Medicinal Plant Farming?
- Growing Market Demand: Both
domestic and export markets are expanding rapidly.
- Support from Government: AYUSH
ministry, NMPB, and NABARD support farmers with subsidies and training.
- Eco-Friendly & Sustainable: Many
medicinal plants grow well without heavy fertilizers or pesticides.
- Multiple Uses:
Plants are used in medicines, cosmetics, health supplements, teas,
essential oils, and perfumery.
- Export Potential: India
exports to the USA, Europe, and the Middle East.
Popular Medicinal Plants to Grow in India
Here are some high-demand medicinal plants
suitable for commercial cultivation:
|
Plant Name |
Uses / Benefits |
Market Potential (per acre) |
|
Tulsi (Holy Basil) |
Immunity booster, herbal teas, Ayurveda medicines |
₹50,000–₹80,000 |
|
Ashwagandha |
Stress relief, energy booster, popular in Ayurveda &
nutraceuticals |
₹60,000–₹1,20,000 |
|
Aloe Vera |
Cosmetics, skincare, juice, nutraceuticals |
₹1,00,000–₹1,50,000 |
|
Stevia |
Natural sweetener, diabetic-friendly products |
₹80,000–₹1,20,000 |
|
Sarpagandha |
Used in blood pressure medicines |
₹1,20,000–₹1,50,000 |
|
Shatavari |
Women’s health, immunity booster |
₹70,000–₹1,10,000 |
|
Lemongrass |
Essential oils, perfumery, insect repellent |
₹1,20,000–₹1,80,000 |
|
Kalmegh (Andrographis) |
Liver care, immunity booster |
₹50,000–₹90,000 |
|
Giloy (Guduchi) |
Immunity booster, fever, detox |
₹40,000–₹80,000 |
Climatic & Soil Requirements
- Climate: Most medicinal plants thrive in tropical
to subtropical climates.
- Soil: Sandy loam to clay loam, with good
drainage.
- pH: 6.0 – 7.5 ideal for most herbs.
- Temperature: Ranges
from 20–35°C depending on the crop.
Medicinal plants are highly adaptable and can
even be grown on degraded soils. Intercropping with pulses, cereals, or fruit
trees is also possible.
Cultivation Practices
- Land Preparation:
Fields should be ploughed well with good drainage.
- Propagation:
- By seeds (Ashwagandha, Shatavari)
- By cuttings (Tulsi, Lemongrass)
- By suckers (Aloe Vera)
- Nursery Management:
Raising seedlings in polybags or beds ensures better survival.
- Irrigation: Most
herbs are drought-resistant, but Aloe Vera and Lemongrass require periodic
irrigation.
- Weed Management: Hand
weeding or organic mulching.
- Fertilizer Needs:
Mostly organic manure or compost is sufficient. Chemical fertilizers
should be avoided to maintain medicinal quality.
Harvesting & Post-Harvest Handling
- Harvesting Time:
Depends on crop (e.g., Tulsi harvested 90 days after planting, Ashwagandha
roots harvested after 5–6 months).
- Drying: Medicinal plants should be shade-dried
to preserve active ingredients.
- Storage: Store in moisture-proof containers.
- Processing: Herbs
can be processed into powders, capsules, oils, or extracts.
Value addition increases farmer’s income
significantly.
Value Addition & Processing
Medicinal plants can be processed into:
- Herbal teas
- Essential oils (lemongrass, tulsi)
- Herbal powders (ashwagandha, shatavari)
- Extracts and tinctures
- Ayurvedic medicines
- Cosmetics and skincare products
Small-scale processing units can increase
profitability by 2–3 times compared to raw material sales.
Government Support & Subsidies
- National Medicinal Plants Board (NMPB): Provides up to 30–50% subsidy on cultivation.
- AYUSH Ministry: Runs
programs for herbal farming and marketing support.
- NABARD: Offers loans for herbal cultivation and
processing units.
- Contract Farming:
Companies like Dabur, Patanjali, Himalaya offer buy-back contracts.
- Export Promotion Schemes:
Government supports herbal product exporters under APEDA.
Marketing & Export Opportunities
- Domestic Market:
Ayurveda companies (Patanjali, Dabur, Baidyanath, Himalaya).
- Export Market: USA,
Europe, Gulf countries import raw herbs, extracts, and oils.
- E-commerce:
Herbal powders, teas, and oils are sold directly on Amazon, Flipkart, and
other platforms.
India is one of the top exporters of medicinal
plants, especially Aloe Vera, Ashwagandha, and Stevia.
Profitability
Analysis (per acre, example)
|
Crop |
Cost of Cultivation (₹) |
Returns (₹) |
Net Profit (₹) |
|
Aloe Vera |
40,000 |
1,20,000–1,50,000 |
80,000–1,10,000 |
|
Ashwagandha |
35,000 |
80,000–1,20,000 |
45,000–85,000 |
|
Lemongrass |
45,000 |
1,20,000–1,80,000 |
75,000–1,35,000 |
|
Stevia |
50,000 |
90,000–1,20,000 |
40,000–70,000 |
|
Tulsi |
30,000 |
60,000–80,000 |
30,000–50,000 |
Challenges & Solutions
- Challenge: Lack
of assured market
- Solution:
Contract farming with herbal companies
- Challenge:
Adulteration and quality issues
- Solution:
Certification under AYUSH, organic certification
- Challenge:
Initial investment for processing
- Solution:
Avail NABARD loans, FPO support
- Challenge: Lack
of farmer knowledge
- Solution:
Training from Krishi Vigyan Kendras (KVKs) and NMPB
Success Stories
- Madhya Pradesh: Farmers
earning ₹1.5–2 lakh per acre by cultivating Ashwagandha under NMPB scheme.
- Uttar Pradesh: Aloe
Vera cultivation tied with Patanjali buy-back contracts yielding stable
income.
- Assam: Lemongrass farmers supplying to perfume
industry earn 2–3 times more than rice farming.
Future Scope
- Rising global demand for organic herbal products
- Opportunities in export markets (USA, EU)
- Integration with agroforestry and intercropping
- Value addition (herbal
teas, oils, powders)
- Government’s push for Ayurveda & AYUSH industry
Conclusion
Herbal and medicinal plant farming is not just
a profitable venture but also contributes to healthcare, sustainability, and
India’s export economy. With rising demand for Ayurvedic and herbal products,
farmers have an excellent opportunity to diversify into medicinal plant
farming.
By selecting high-demand crops like Aloe Vera,
Ashwagandha, Tulsi, and Lemongrass, and utilizing government support schemes,
farmers can secure high profits while promoting natural and eco-friendly
agriculture.
This sector holds the potential to transform
rural livelihoods, ensure better health for communities, and contribute
significantly to India’s position in the global herbal market.
