Foundation for Revitalisation of Local Health Traditions, India g.hari@frlht

1. Foundation for Revitalisation of Local Health Traditions, Indiag.hari@frlht.org Can biodiversity help communities to reduce poverty?

2. Biodiversity richness=High Poverty • Majority of communities from biodiversity rich regions of the world are: • Economically poor to very poor • Access to education, health and basic amenities low to very low • Credit, capital and technology not available or not affordable • Growth does not contribute to lives of poor.

3. Context • India shares one sixth of global population • Difficulties to access Public Health Care Services – less than 2% GDP allocated to health • Per capita Healthcare expenditure by people> 72.5% • India has also a rich tradition of health care > 5,000 years • Increasing demand for medicinal plants in national and global markets • More than 200 species facing various degrees of threat

4. Vision and Mission of FRLHT • Vision: “revitalise Indian Medical Heritage” • Mission: • Conserve natural resources used by Indian Medical Hertiage • Establish contemporary relevance of Indian Medical Heritage for health and livelihood security of communities • Promote ethical commerce

5. Richness of biodiversity in medicinal plants of India • 6,200 out of 15,000 plant species in India are known for their medicinal uses • More than 4,269 ethnic communities use them for human, veterinary and crop health • More than 150,000 formulations are known to be documented so far

6. Strategy of outreach • Community Based Organizations are the implementors, i.e. Women Self-Help Groups, Folk Healer Associations, Village Forest Committees, Watershed Committees • Partnership with Government Organizations: Forest Departments in ten states of India • Partnership with Research Institutes, Indian Institute of Science

7. Area of work • Across 10 states in – • Southern: Andhra Pradesh, Karnataka, Kerala, Tamilnadu, • Central: Chattisgarh, Madhya Pradesh • Eastern: Orissa, West Bengal • Western: Maharashtra, Rajasthan • Poised to extend to five more states in Northern and North Eastern States from 2008-09 onwards…

8. Direct Beneficiaries • More than 190,000 households spread across 9,000 villages in the programme states benefitting through Home Herbal Garden Program for Primary Health Care • More than 9,500 women village health workers and folk healers trained in documentation, assessment and promotion of local health traditions for primary health care needs

9. Gram Mooligai Co Ltd …The first community owned enterprise The Mission Statement: • Generate livelihoods; incomes for the Rural Poor by Utilizing the Natural Resources of the Villages • Produce and Market Cost Effective and Natural Medicines for the Rural and Urban Masses concerning their Primary health problems. • To create a Sustainable and replicable model and contribute to Ecology by conservation of medicinal plants

10. Role players NGO/GO as facilitators • To provide financial and technical resources and inputs • To build capacities of communities in design and implementation and management of programs for health and livelihood security based on local knowledge, skills and resources • NGO/GO as Facilitators CBOs as implementors - Mobilisation of community members, - Mobilisation of share contribution, - Provide training, - Manage operations: collection, cultivation, procurement, payment, processing and despatch and distribution to buyers and consumers, distribution of payments and dividends

11. The first model in Southern India Produces from Sevaiyoor Village in Virudhunagar District of Tamilnadu State connected to rural and urban markets in Tamilnadu, Karnataka and Kerala, supported by DANIDA and Ford Foundation

12. Brief History • Promoted by Foundation for Revitalisation of Local Health Traditions, Bangalore with the field NGO Partner, Covenant Centre for Development, Madurai and Community Based Organizations, i.e. Maha Kalasam. • Unique model: Public limited company owned by Self-Help Groups of medicinal plants gatherers and small cultivators; founded in 2000.

13. An overview • Buyers – domestic herbal manufacturers • Market size: Rs 400 crores. • About Rs 80 crores at South India level. • Competitors are traders. • Strengths: • Sourcing from primary producer-share holders • Immediate benefit to primary producers: fair price throughout the year • Able to ensure quality and authenticity to buyers • Traceability from collection point to consumption point • Horizontal scaling-up feasible.

14. Products and market… • Medicines for primary health care Strength : Our approach to rural families through direct sale by women entrepreneurs Fast establishing network of chemists in Bangalore and other cities and towns in southern, central and western Indian States.

15. Products and market… • Niche: • Honey and herb based products based on traditional systems of medicine. • Medicines and honey • Free from adulteration…

16. Product: Raw Drug

17. Products: Nutraceuticals

18. Product: Medicines for PHC

19. Social and Environmental Impact • Livelihoods and incomes to about 6000 women and their families in the rural areas • Delivery of affordable medicines for primary health care 50-80 lakh families in rural and urban areas. • Model of sustainable harvest of medicinal plants and natural resources contributing to biodiversity conservation

20. Marketing and Sales Activities • Raw drugs: continue with present clients and add a few more for extension in new area. • Products: Sales to cover 30 lakh rural families through 6000 women and through 6000 outlets in urban . 300 women currently enlisted. 350 shops enlisted. Both models evolving. • Keys to success:Training and empowering women to become micro entrepreneurs for rural market; establishing the brand on the plank of affordability and efficacy.

21. Operations • i) Collection: direct sourcing from SHGs; model established over 5 years. • ii) Medicines for PHC: simple formulations made from locally available herbs; affordable and efficacy and • iii) Nutraceuticals: honey and herb based; from traditional systems of medicines. • Competitive Advantages Strong input from FRLHT in terms of product development from Ayurveda. • Scalability: The formulations are essential simple and made using simple technologies.

22. Organization and Personnel • Owned by SHGS of medicinal plants gatherers and small cultivators. • Dr. Rajapandi, General Manager • Backed up by NGOs - FRLHT and CCD

23. Sales Projections ($US Millions) Last year, collection and marketing of raw drugs has reached a break-even. This year onwards, breakeven in other segments, i.e. finished products, honey is planned.

24. Extension in 2002-07 and beyond • Model replicated through Producer Companies across 14 Locations in 7 states of India: Andhra Pradesh, Chattisgarh, Karnataka, Kerala, Orissa, Maharashtra and Tamilnadu. • Supported by Department of Science and Technology, Government of India • Further extension with UNDP support to cover 10 states including Madhra Pradesh, Rajasthan and West Bengal

25. Extended areas Currently operating in: Andhra Pradesh, Chattisgarh, Karnataka, Kerala, Maharashtra, Orissa and Tamilnadu To be extended to: Madhya Pradesh, Rajasthan, West Bengal

26. Challenges overcome… • Communities know – • the methods of documentation, assessment and promotion of eco-system specific medicinal plants, health, economic and conservation values • organise themselves into community owned enterprises and manage their business with financial viability • collect or cultivate, harvest sustainably, procure with quality control, store, process and market their produces

27. Access and Benefit Sharing • Prior Informed Consent obtained from Traditional Knowledge (TK) providers • Origine of knowledge and resources traceable • Access to TK in public domain for health security • Benefit Sharing with down payment at the start of sharing of TK with provision of payment of 2% of share in profit

28. Challenges to be overcome • Working capital • Attractive package • Marketing promotion • Research and Development • Additional products