Article

Linking Tribal Medicinal Plant Co-operatives and Ayurvedic Manufacturing Firms for Better Rural Livelihood and Sustainable Use of Resources

University Library of Munich, Germany, MPRA Paper 01/2008;
Source: RePEc

ABSTRACT 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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26 Jan 2012

Keywords

Ayurvedic manufacturing firms
 
bargaining power
 
co-operatives
 
defined contract
 
economic incentive structure
 
existing two types
 
external factors
 
lopsided sharing
 
major issues
 
medicinal plant chain
 
medicinal plant sector
 
rural collectors
 
second supply chain network
 
side-streamed tribal collectors
 
Southern Western Ghats part
 
specific internal
 
supply chain framework
 
tribal medicinal plant co-operatives
 
unequal distribution
 
visible