Deadline: 31-Jan-2026

The National Medicinal Plants Board (NMPB), under the Ministry of AYUSH, Government of India, is inviting proposals to establish Medicinal Plants Business Centres across India. The scheme provides financial assistance of up to ₹5 crore per centre to strengthen post-harvest infrastructure, improve market linkages, and enhance value addition in the medicinal plants and herbal sector.

Medicinal Plants Business Centres: Strengthening India’s Herbal Value Chain

The Medicinal Plants Business Centres Scheme is a national initiative launched by the National Medicinal Plants Board (NMPB) under the Ministry of AYUSH, Government of India. The programme aims to modernise post-harvest handling, processing, storage, and marketing of medicinal plants, thereby strengthening India’s herbal economy and improving farmer incomes.

Program Overview

India has a rich biodiversity of medicinal plants, but gaps in post-harvest infrastructure and market access limit income potential. This initiative addresses those gaps by supporting the creation of integrated business centres dedicated to medicinal plant processing and trade.

Core Objectives

• Strengthen the post-harvest herbal economy

• Improve market linkages and traceability

• Increase farmers’ income through value addition

• Promote quality processing and standardisation

• Build sustainable and organised medicinal plant supply chains

Key Focus Areas

Post-Harvest Processing Infrastructure

Supported Medicinal Plants Business Centres may include:

• Processing and primary value addition units

• Drying facilities for medicinal plant raw materials

• Scientific storage and warehousing systems

These facilities help reduce post-harvest losses and improve product quality.

Quality Testing and Standardisation

The scheme encourages:

• Establishment of quality testing laboratories

• Compliance with national and international quality standards

• Improved traceability across the medicinal plants value chain

Packaging, Transport, and Marketing Systems

Funding can support:

• Packaging and grading infrastructure

• Efficient transport and logistics systems

• Market access and linkages for domestic and export markets

Financial Assistance and Support

Funding Amount

• Financial assistance of up to ₹5 crore per Medicinal Plants Business Centre

Purpose of Funding

The funding is intended to:

• Develop integrated post-harvest infrastructure

• Support operationalisation of business centres

• Enable organised marketing and trade of medicinal plants

Who Is Eligible?

The scheme is open to a wide range of stakeholders involved in the medicinal plants sector.

Eligible Applicants

• Government and semi-government bodies

• State Medicinal Plant Boards

• Farmer Producer Organisations (FPOs) and Farmer Producer Companies (FPCs)

• Public Sector Undertakings (PSUs)

• Non-Governmental Organisations (NGOs)

• Cooperatives

• Registered clusters and entities working in medicinal plants

Applicants must demonstrate experience or engagement in the medicinal plants value chain.

Why This Scheme Matters

• Strengthens India’s herbal and AYUSH ecosystem

• Enhances income opportunities for farmers and collectors

• Reduces post-harvest losses and inefficiencies

• Improves quality, traceability, and market competitiveness

• Supports sustainable use of medicinal plant resources

How the Scheme Works

Step-by-Step Process

1. Identify gaps in post-harvest handling or market access for medicinal plants

2. Design a Medicinal Plants Business Centre with integrated facilities

3. Prepare a proposal aligned with NMPB objectives and guidelines

4. Submit the proposal to the National Medicinal Plants Board

5. Undergo technical and financial evaluation

6. Selected applicants receive funding and establish the centre

Common Mistakes to Avoid

• Proposals without clear post-harvest or market linkage components

• Lack of technical feasibility or operational planning

• Weak linkage with farmers or producer groups

• Inadequate sustainability or revenue models

• Poor alignment with NMPB objectives

Frequently Asked Questions (FAQ)

What is the maximum financial assistance available?

Up to ₹5 crore per Medicinal Plants Business Centre.

Which ministry implements this scheme?

The scheme is implemented by the National Medicinal Plants Board under the Ministry of AYUSH, Government of India.

Can farmer producer organisations apply?

Yes. FPOs and Farmer Producer Companies are eligible applicants.

Does the scheme support quality testing facilities?

Yes. Quality testing and standardisation infrastructure are key focus areas.

Is the funding provided for cultivation activities?

No. The scheme primarily supports post-harvest processing, storage, and marketing infrastructure.

Can NGOs apply for this scheme?

Yes. NGOs working in the medicinal plants sector are eligible.

Is this scheme applicable across India?

Yes. Eligible entities from all states and regions of India may apply.

Conclusion

The Medicinal Plants Business Centres Scheme by the Ministry of AYUSH is a strategic intervention to strengthen India’s post-harvest herbal economy. By providing up to ₹5 crore in financial assistance, the programme enables the development of integrated processing, quality, and marketing infrastructure that enhances farmer income, ensures quality standards, and builds a sustainable and competitive medicinal plants value chain nationwide.

For more information, visit NMPB.