The analysis brings forth the major issues in medicinal plant sector, taking Kerala as a case. The analysis, basically use the supply chain framework, focuses on the Southern Western Ghats part of Kerala, gives the picture of the lopsided sharing of income and hence the side-streamed tribal collectors in the medicinal plant chain. In the existing two types of chains, first one dominated by largely unequal distribution of income because of the existence of a large number of mediators while the second supply chain network, where the major player is tribal co-operatives and include less number of players, seems relatively efficient. The latter is less visible in Kerala because of some specific internal and external factors. The study proposes the need for a move towards the second type of chain and initiation of more and more tribal medicinal plant co-operatives. This will lead to better linkage with co-operatives and Ayurvedic manufacturing firms, and a well defined contract to be enforced for both environmentally sustainable collection through avoiding the information asymmetry, high bargaining power. This can work as a better economic incentive structure and hence can bring more efficiency from the view of both firms and rural collectors.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
6954.
Find related papers by JEL classification: Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - P48 - Economic Systems - - Other Economic Systems - - - Other Economic Systems: Political Economy; Legal Institutions;
Property Rights
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