Foundation for Revitalisation of Local Health Traditions, India [e-mail]

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Foundation for Revitalisation of Local Health
Traditions, Indiag.hari_at_frlht.org

• Can biodiversity help communities to reduce
  poverty?

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Biodiversity richnessHigh 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.

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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 peoplegt
  72.5
• India has also a rich tradition of health care gt
  5,000 years
• Increasing demand for medicinal plants in
  national and global markets
• More than 200 species facing various degrees of
  threat

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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

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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

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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

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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

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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

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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

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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

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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
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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.

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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.

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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.

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Products and market

• Niche
• Honey and herb based products based on
  traditional systems of medicine.
• Medicines and honey
• Free from adulteration

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Product Raw Drug
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Products Nutraceuticals
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Product Medicines for PHC
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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

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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.

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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.

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Organization and Personnel

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

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Sales Projections (US Millions)
2006-7 2007-8 2008-9 2009-10
Sales 2 4 8 10
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.
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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

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

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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

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Challenges to be overcome

• Working capital
• Attractive package
• Marketing promotion
• Research and Development
• Additional products