Five farmers earning lakhs from medicinal plant farming

Medicinal plant farming is gaining popularity in India due to a rising demand for natural products, government support, and the potential for high returns.

Farmers are opting for plants like tulsi (basil), aloe vera, shatavari, turmeric and lemongrass on a large scale following the increasing consumer preference for natural and organic products and low costs of cultivation. 

There's a growing global demand for medicinal plants in traditional systems like Ayurveda and for use in pharmaceuticals and cosmetics industries. This opens up the opportunity to export products apart from domestic sales. 

The CSIR-Central Institute of Medicinal and Aromatic Plants (CIMAP), located in Lucknow, gives free saplings and support to farmers under the CSIR-Aroma Mission. This mission aims to boost farmer incomes and promote crop diversification through the cultivation of aromatic and medicinal plants. 

Certain medicinal plants like ashwagandha, aloe vera, and tulsi offer significant profit margins, with some farmers earning Rs 8 lakh to Rs 10 lakh per acre. 

Cost-Effective Cultivation

Most of the medicinal plants require less water and fewer chemical inputs compared to traditional crops, making them a more sustainable and potentially profitable option. 

Since medicinal plants are hardy and naturally resistant to most pests, they rarely need chemicals or fertilisers. This keeps the costs in check.

The herbal formulations industry in India is experiencing rapid growth, which fuels the demand for medicinal plants. Companies like Dabur, Vicco and Emami are major buyers of organic and natural medicinal herbs from farmers.

Here are five farmers who are making good profits by cultivating medicinal plants:

1. Alok Pattnaik, Tulsi (Basil) Farming, Odisha

Alok quit his job with Tata Automotive and now cultivates tulsi at his native village in Odisha. Daily, he extracts around seven to eight litres of essential oil, clocking a turnover of Rs21,000 and providing employment to tribal people. His monthly turnover is Rs 6 lakh.

Alok uses organic practices and only applies cow dung manure, goat droppings and vermicompost to the soil. His current buyers are herbal and medicinal companies, including Puri-based ‘Shree Herbal’ and Bhubaneswar-based Kalinga Medicine. Alok is also in talks with Dabur India Ltd to supply 50,000 litres of oil annually.

Read Alok’s detailed story here: How this MBA farmer earns Rs 6 lakh monthly from basil cultivation

2. Anita and Sanjay Ghogare, Turmeric Farming, Maharashtra

Anita and Sanjay practice organic turmeric farming in Maharashtra's Loni village. The rising demand for organic turmeric has created a good market for their turmeric powder, pickles, vermilion and milk-spice mix. The products have buyers in the US, Germany and Australia.

The global turmeric market was valued at 5.5 billion dollars in 2023 and will reach 9.69 billion dollars by 2032, according to SkyQuest Technology.

From one acre, the couple’s annual yield of fresh turmeric is around 2.5 tonnes (2500 kg) and the revenue is Rs 8 lakh. After deducting expenses of Rs 2 lakh on labour, processing and packaging, the net profit is Rs 6 lakh from an acre.

Here’s their detailed story: This couple earns Rs 8 lakh per acre from organic turmeric farming; products go to Germany, Australia and the US

3. Reeva Sood, variety of medicinal plants, Himachal Pradesh

When Reeva Sood bought barren land spread over three villages of Gunghrala, Akrot and Behar Bithal in Behar Jaswan panchayat in Una, people wondered about her investment decision at 55. They mocked her for buying uneven and dry land. But the agripreneur saw the local vegetation and realised that the land could be used to grow medicinal plants.

She cleared the land of stones and planted Sarpagandha, Drumstick (Moringa), Ashwagandha, Stevia, Kalmegh, Vetiver Grass, Turmeric, Tulsi and other herbs. Today, she clocks an annual turnover of Rs50 lakh from these plants.

Here’s her story: 65-year-old woman turns barren land into organic farm of medicinal plants, earns Rs50 lakh annually

4. Hrushikesh Dhane, Aloe Vera, Maharashtra

Hrushikesh grows aloe vera over 3 acres in the drought-prone Satara district. He quit his job to grow aloe vera organically, using only cow dung manure, poultry manure and mushroom waste manure. He says it can be intercropped with fruits or other plants to maximise returns from the land.

The global aloe vera extracts market was valued at 3.5 billion dollars in 2023 and is expected to grow to 7.3 billion dollars by 2033, as per a report by Future Markets Insights. India is the second-largest exporter of aloe vera after China.

He harvests the medicinal leaves throughout the year for sale to cosmetic and ayurvedic companies. He also manufactures aloe-based organic pesticides and insecticides, earning Rs 1 crore annually.

Here’s his story: How this farmer earns Rs 1 crore a year from aloe vera farming in drought-prone Satara

5. Gauri and Dilip Parab, Lemongrass farming, Maharashtra

Gauri and Dilip Parab, software engineers, quit L&T Infotech and began organic lemongrass farming in Sindhudurg, Maharashtra, in 2021. They say lemongrass farming is profitable as the herb is used in various industries, including cosmetics, pharmaceuticals, and food and beverages, creating a rising demand. 

As per the CSIR-CIMAP, the global market of lemongrass was 38.02 million dollars in 2020 and is expected to more than double to 81.43 million dollars by 2028. India is a major player in the lemongrass oil market, exporting it to over 80 countries. 

Gauri and Dilip harvest lemongrass and process it to extract oil. It is sold in retail and wholesale. They also prepare soap and floor cleaners, available online and through their factory outlet, clocking Rs30 lakh annual turnover.

Here’s their story: Engineer couple quits L&T Infotech for lemongrass farming; clocks Rs30 lakh annual turnover

(US Anu is a Madurai-based writer. She specialises in stories around human interest, environment and art and culture)

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