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NMPB Scheme for Medicinal Plants

NMPB Scheme for Medicinal Plants

NMPB Scheme for Medicinal Plants

India is a habitat for various medicinal plants which provides sustenance and health benefits to the significant population for centuries. Medicinal plants had gained a great deal of global attention in recent years, and there has been a considerable demand for them in both national and international markets. Major species used for trading are resourced from the wild source, and they are extracted using destructive methods.

Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha & Homeopathy), Government of India has established National Medicinal Plants Board (NMPB) to promote the development and cultivation of medicinal plants and to harmonize the development activities between several ministries/departments/organizations. The board has been implementing various schemes and policies for the MSMEs to grow, preserve, and market medicinal plants. Central Sector Scheme for Conservation, Development, and Sustainable Management of Medicinal Plants is one such scheme launched by NMPB to focus on the cultivation and protection of medicinal plants.

Objective of the Scheme

The National Medicinal Plants Board commenced the scheme with the emphasis on the listed objectives:

  • To promote cultivation and conservation of medicinal plants, which are significant for the AYUSH and traditional systems of medicine.
  • To support the conservation of medicinal plants through organized surveys and enhancing the cultivation of local medicinal plants through afforestation.
  • To build Medicinal Plant Conservation Areas (MPCAs) through systematic surveys.
  • To assist farmers, collectors and other stakeholders through policies and training.
  • To deliver quality Research & Development, capacity building through training and boost awareness through promotional activities such as the formation of Home/School Herbal Gardens.
  • To provide Quality Assurance by enforcing Good Agriculture and Collection Practices (GACPs)
  • To establish advanced agro-techniques and credible institutions to certify the quality of raw drugs, seeds and planting materials.
  • To upgrade the financial status of rural communities, especially in forest fringe areas.
  • To assist farmers and other stakeholders in meeting the national and international demand for medicinal plants.

Components of the Scheme

The scheme involves the following components and envisions on its developmental benefits.

Conservation of medicinal plants through Multi-Pronged Strategy

The component focuses on strengthening of the existing Medicinal Plants Conservation Areas (MPCAs) by a proper survey of the inventory, documentation, protection and habitat management approaches. Its activities include:

  • Forecasting the threat and its causes.
  • Preparing a fully sketched roadmap enabling with solutions for all the threat its consequences with a remedy for the traditional medicinal plant species from getting extinct.
  • Focusing largely on its efficient promotion and marketing with advocating the services of qualified taxonomists and concerned State Agency/SMPB.
  • Proper Monitoring by visiting the local areas and reviving the documents with respect to the already authorised documents.
  • Extending the best management approaches in mainstreaming medicinal plant conservation in collaboration with stakeholders.


The assistance for the component is as follows:

  • The Centre provides 100% assistance or the equivalent of Rs.20,000 per hectare for MPCDS.
  • Rs.5,000 per hectare is provided for the strengthening of previously designated Medicinal Plants Conservation Area (MPCA) established under NMPB.
  • Rs.1.5 Lakhs per Forest Division is provided to the Forest/Wildlife Division for the implementation of the management approaches.

Support to JFMCs/Panchayats/Van Panchayats/BMCs/SHGs

The component focuses with a templated-approach of the production and promotion of medicinal plants through JFMCs/Van Panchayats/Panchayats/SHGs by encouraging viable harvest, adoption of good collection practices, post-harvest handling and marketing of the Non-Timber Forest Products.

  • Assistance provided for services and facilities such as drying, de-stoning, cleaning etc.,
  • Conducting training programs on Good Collection Practices, Cultivation Practices and Organic Certification.
  • Extending marketing support for the Micro, Small and Medium Entrepreneurs in buying and selling at Forest Development Agency (FDA).
  • Generating livelihood for the rural community people by contributing 50% of the amount as working capital.

The agencies who are eligible for availing the support includes:

  • Joint Forest Management Committees.
  • Panchayats/Van Panchayats/BMCs/Eco development committees.
  • Other state co-operative/corporate bodies in-charge of medicinal Plants collections and trade.
  • Reputed NGOs/Academic organizations


The assistance of Rs.15 Lakhs is disbursed for the proposals received from the eligible agencies. The fund is allotted to the JFMCs/Van Panchayats/eligible agencies in the following ways:

  • For the access for collection of medicinal plants.
  • For the traditional species of medicinal plants.
  • For the MSMEs involved in collection of medicinal plants.
  • For the SHGs/NGO partners for community building.

Technology Development, Research and Quality

The component concentrates on overcoming the issues suffered in the medicinal plant sector through research and development. Its core responsibilities include:

  • Identification of raw drugs
  • Seed Treatment and certification
  • Bio-conservation of medicinal plants,
  • Lowering the cost of cultivation and production using advanced R&D Technologies.
  • Establishing quality standards to increase the acceptability in the international markets.

Information, Education and Communication (IEC)

The component aims at building awareness about cultivation technologies, handling of raw materials, trade, etc., among an array of stakeholders such as farmers, traders, local healers and exporters. Its activities are:

  • Taking part in the national and international fairs to promote Indian Medicinal Plants
  • Organizing Aushadhi Vanaspati Mitra Program (AVM)
  • Conducting workshops, seminars, conferences etc.
  • Establishing Facilitation Centers
  • Creating an operational web portal, publishing periodicals and magazines.

Administrative & Financial Arrangements of NMPB

The National Medicinal Plants Board has constituted five multi-sectorial committees involving Ministry of Environment & Forest, Ministry of Tribal Affairs, Ministry of Agriculture, Ministry of Commerce, to carry out the operations and they are:

  1. Committee on Cultivation of Medicinal Plants including Conservation of Rare and Endangered Species
  2. Committee on Research
  3. Committee on Demand and Supply
  4. Committee on Patents/IPR
  5. Committee on Export/Import

Processing Project Proposal for Approval

All the submitted project proposals go through the initial inspection and are produced to the NMPB.

  • The Standing Finance Committee (SFC) approves the proposal after the review and recommendations stated by the Project Screening Committee (PSC).
  • A three months’ notice period is permitted for the proposals from State Medicinal Plant Boards (SMPBs) for their submission with a recommendation support certificate from the implementing agency.
  • In case of the proposal submitted by the institutions, the institution shall bear the charges levied up to 10% of the total scheme cost.
  • With the Board’s approval of the proposal of the new project, the sanction letter that holds the detail expenditure approval is presented to the host agencies.


For the Training and Capacity Building Programs, the assistance provided are:

  • Rs.2,000 per trainee (farmer) for a minimum of 2 days within the state.
  • Rs.5,000 per head for exposure visits to other states.
  • Rs.5,000 and Rs.10,000 per officer within the state and outstation respectively is provided as the expenditure cost on officers training

For conducting the Workshops/Seminar/Arogya,

  • Rs.1 lakh for District level,
  • Rs.2 lakhs for State level,
  • Rs.3 lakhs for Regional level,
  • Rs.5 lakhs for National level
  • Rs.10 lakhs for International level.

For the Participation in the exhibitions and fairs:

  • Rs.1 lakh for State level,
  • Rs.2 lakhs for National level
  • Rs.3 lakhs for International level