Market entry requirements for herbal medicinal products in Sri Lanka: A case study

Abstract

The herbal medicinal product sector has been identified as one o f the key areas o f promoting exports in Sri Lanka. Developed countries have changed dietary habits into herbal products, resulting from increased health awareness. The demand for herbal products exceeds the supply in the major international markets in Europe, Japan and USA. Thus, developing countries have a comparative advantage to export herbal produce fo r the international market. Both synthetic and natural ayurvedic/herbal medicinal products used in pharmaceutical industry in Sri Lanka are categorized under the same coding system, called Harmonized Commodity Description and Coding System. Thus, market information related to volume exported, price and quantity consumed are not available on trade o f herbal produce even in the customs. Information on major herbal products and consumption in Europe, USA, India, Japan, Australia and New Zealand were collected Low product quality, high cost o f production, short supply, insufficient raw materials and their seasonal harvest, lack o f market information and lack o f research and development, government incentive schemes, recognition as an industry and training and awareness programs were identified as constraints. It is suggested to develop a national plan to promote the industry, cultivation o f medicinal plants, allocation offunds to educate suppliers and fo r extension services to upgrade the industry. This study indicated that herbal medicinal product consumption in Europe has increased in this decade. Import promotion programs in Europe will create higher demand fo r Sri Lankan produce.