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Published on August 18, 2007

They asked the government to help them penetrate new markets, particularly in the European Union. The EU has high purchasing power but higher restrictions on imported herbs.

According to the Export Promotion Department, exports of herbs slumped by 25.26 per cent to US$750,000 (Bt25.9 million) in the first half of this year, while exports of extract plunged 60.33 per cent to $1.49 million.

Sales of herbal medicine to major markets such as Hong Kong, Taiwan and Japan dropped by 3.06 per cent, 32.15 per cent, and 82.1 per cent respectively, compared with the same period last year.

The country's two biggest producers and exporters, Twin Lotus and Chao Phraya Abhaibhubate, had a meeting yesterday with Deputy Commerce Minister Oranuj Osatananda. They asked for help.

Oranuj said herb companies wanted to increase export volume and value in a variety of markets.

However, some restrictions have hampered exports, such as high EU standards.

"Herbal-medicine manufacturers want the government to negotiate a reduction in non-tariff barriers in those targeted markets," she said.

Some stringent restrictions require staff working in laboratories here to have experience in EU laboratories.

Local herbs have great export potential, she said, and the government should negotiate with trading partners to reduce non-tariff barriers, she added.

Petchanet Pratruangkrai

The Nation