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Proposed EU law could hurt indigenous medicine exports
Friday, 04 April 2003, 20:30 IST
NEW DELHI: India is slowly waking up to a proposed European Union legislation that could soon make it difficult for any new indigenous medicinal product that has not been in the European market prior to 1987 to enter it without mandatory trials.
"Not many in the sector are aware of the proposed E.U. legislation framed last year which can hit Indian exports of indigenous medicinal products," Vinayshil Gautam, professor of management at the Indian Institute of Technology (IIT), said here.
"If passed, the legislation will make it difficult and costly for any new product of the traditional systems of medicine to enter the European market without undergoing regulatory trials and testing on standardisation and quality, and also get necessary approvals of the medicine control bodies."
Gautam was project consultant to the Export-Import (Exim) Bank of India on a two-phase study on potential of exporting Indian healthcare that was released here in the form of a book Friday.
He has brought the potential threat of the E.U. move to the notice of the authorities, including Prime Minister Atal Bihari Vajpayee.
"A delegation from the department of Indian systems of medicine and homeopathy under the health ministry was sent to Brussels to brief the E.U. on the Indian case. We have urged them not to make 1987 the cut off year and instead reduce the period to the last five years or since 1997," Gautam told IANS.
According to the first part of the study by Exim Bank, hardly any country has given recognition to Indian and other indigenous systems of medicine as alternative therapies.
"As indigenous systems are still not recognised as alternative medicine, all the products, whether ayurveda, siddha or unani, are being marked as dietary or food supplements as the food laws of these countries are less stringent," said R.M.V. Raman, executive director and project coordinator of Exim Bank.
"This however bars the companies from making any claims about the efficacy of the product for any ailment and this is hindering exports."
So far only Hungary has given recognition to ayurveda as an alternative system of medicine while the United Arab Emirates (UAE) is in the process of doing the same, said Ashish Kumar, a research coordinator with Exim Bank.
Acting as a facilitator to overseas traders, the bank is now working on the second phase of the project to provide exporters with guide-based inputs from 35 countries about the rules and regulations on the subject.
A study by the World Health Organisation (WHO) has found that over 80 percent of global population relies on traditional systems of medicine, largely plant based, to meet their primary healthcare needs.
The global demand for herbal products for health, medicines, beauty and supplements has been growing at 10-15 percent annually and is estimated to be around $62 billion. Out of this, the global demand for herbal medicines is around $5 billion and expected to grow to $16 billion by 2005.
In Europe, the market for licensed herbal medicines is around $475 million. According to the Exim Bank study, India's medicinal plant related trade is worth about 
5.5 billion.
Kerala and Tamil Nadu dominate as major bases of traditional medicines like ayurveda and Siddha. Companies in the two states have been the focus of case studies.
"What may apply to companies in these two states applies to units all over the country," said Gautam, who feels there is need to upgrade the skills in the sector and focus on quality and quantity.
Alongside Indian companies like Dabur, Himalaya and Baidyanath, which are getting a good response to their health supplement products overseas, several new players like Ranbaxy are eying potential in the growing market for herbal medicines.
To promote the indigenous systems of medicines, largely confined to the unorganised small and medium sectors, Gautam has suggested that the government lend them a helping hand.
"We need to have special agriculture zones for herbal plants to meet the products and services requirement for this sector as there is no way our indigenous systems of medicines can survive in the present frame. There is need to focus on research and development on a mission mode and look at Indian medicine in a scientific manner to become acceptable in global markets," said Gautam.
Source: IANS
5.5 billion.
Kerala and Tamil Nadu dominate as major bases of traditional medicines like ayurveda and Siddha. Companies in the two states have been the focus of case studies.
"What may apply to companies in these two states applies to units all over the country," said Gautam, who feels there is need to upgrade the skills in the sector and focus on quality and quantity.
Alongside Indian companies like Dabur, Himalaya and Baidyanath, which are getting a good response to their health supplement products overseas, several new players like Ranbaxy are eying potential in the growing market for herbal medicines.
To promote the indigenous systems of medicines, largely confined to the unorganised small and medium sectors, Gautam has suggested that the government lend them a helping hand.
"We need to have special agriculture zones for herbal plants to meet the products and services requirement for this sector as there is no way our indigenous systems of medicines can survive in the present frame. There is need to focus on research and development on a mission mode and look at Indian medicine in a scientific manner to become acceptable in global markets," said Gautam.
Source: IANS