Economy

Herbal medicine firms on the rise

Published by Octron on January 26, 2010

In what might be termed a clear indication of widening market of herbal medicines in the country, the number of companies producing herbal medicines has gone up significantly in the country. Eying abundant resources of medicinal herbs and increasing demand of herbal medicines amid people´s growing awareness, more people are involving in herbal medicine manufacturing business.

According to Department of Drug Administration (DoDA), a total of 14 new herbal manufacturing companies registered in 2008/09, up from 3 companies registered in 2007/08. A total of 35 such companies are operating at the moment as of 2008/09.

“Increasing demand of herbal medicines has encouraged entrepreneurs to open new industries to tap the growing market,” Radha Raman Prasad, director of DoDA, told Republica. Prasad also said that the increasing availability of raw material within the county also encouraged entrepreneurs to register new industries in recent years. The production of medicinal herb shot up to 94,660 kg in 2008/09, up from 85,160 kg recorded a year earlier.

At present, 49 allopahty pharmaceuticals, seven veterinary pharmaceuticals and 30 herbal medicine manufacturing companies are operational in the country as of 2008/09. Similarly, 235 allopathy pharmaceuticals, 26 veterinary pharmaceuticals and 30 herbal medicine manufacturers based outside the country have registered with DoDA to sell their products in Nepal.

“We are discouraging registration of foreign companies that plan to deal with medicines produced by domestic industries. However, we have been registering the companies that supply vaccines and medicines curing cancer, HIV/AIDS as well as family planning materials and saline,” Prasad said.

According to entrepreneurs, Nepal annually consumes medicine worth around Rs 10 billion, of which only 25 percent is produced by domestic producers.

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