Department of Agricultural Economics, College of Horticulture, Kerala Agricultural University, Thrissur. 680 656, Kerala. E-mail: induananth@yahoo.com
Authors thank the referee for his suggestions.
The trade in medicinal plants in Kerala is characterized as oligopolistic in nature owing to the presence of only a few large industrial consumers and traders. The demand analysis of medicinal plants by the major industries has been presented under this background. Ten major medicinal plants have been identified based on the quantity of their annual consumptions. The analysis has shown a high growth rate and low price elasticity of demand for plants like Sida spp., Aegle marmelos and Woodfordia fruiticosa, which assure a steady market for them. It has been suggested that the plants Sida spp., Boerhaavia diffusa, and Aegle marmelos should be given priority in commercial cultivation in view of their scarcity values. A market driven management policy is warranted for the popularization of medicinal plants in Kerala.
