§1What this business is

The centre sits near a forest area. Herbs are collected or bought from local forest depots and traders, segregated by quality, dried in the open yard and, where the buyer wants, ground in a pulveriser. They are then packed in polythene or cartons and sold. The profile plans for 30,000 kg a year worth ₹7,50,000, with about 2,700 kg of raw herbs bought each month. Ayurvedic drug makers and cosmetic makers are the main buyers.

Capacity: 30,000 kg of herbs a year worth ₹7,50,000; single shift, 300 days.

§2Is it right for you?

Who it is for

A person or group from a forest-fringe village who knows local herbs and collectors.

Who it is not for

Someone far from forest areas or without buyers lined up.

Advantages

  • Raw herbs are available near forest villages
  • Simple process — sort, dry, grind, pack
  • Ayurvedic and cosmetic makers buy in bulk

Drawbacks

  • Supply is seasonal and depends on the forest
  • Transit of forest produce needs permits
  • Prices are set by a few big buyers

Skills you need

  • Identifying and grading herbs
  • Proper drying and storage
  • Dealing with forest depots and buyers

Why difficulty 2/5: Simple work, but forest rules and seasonal supply need care.

§3Market

Who buys

  • Ayurvedic medicine makers
  • Cosmetic makers
  • Herb wholesalers

How it sells

  • Direct supply to factories
  • Sale through herb mandis and traders

Good to know

  • The profile estimates that Ayurvedic drug makers need around 3.5–4.0 lakh tonnes of such herbs.

§4Raw material & machinery

ItemQtyCost
Pulveriser / grinder with accessories, diesel engine, utensils, weighing balance, packaging tools and furniture1 set₹75,000
Sales tax, freight and insurance—₹8,000

From: NSTFDC model project profile — Herbal Collection Center

  • Raw herbs — amla, harra, baheda, musli and others2,700 kg a month, ₹27,000; from local forest depots and traders
  • Packaging material₹1,000 a month

From: NSTFDC model project profile — Herbal Collection Center

§5Licences & registration

  1. Udyam registration
  2. GST registration once turnover crosses the limit
  3. Transit permit and registration with the State Forest Department for forest produce
  4. FSSAI registration if herbs are sold for food use

We can do this registration for you

Start it in your state

Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.

§6Schemes & subsidies

A MUDRA Kishore loan covers this size, and PMEGP can add a subsidy. ST borrowers can use NSTFDC term loans through their State agency.

§7Money

How the investment is worked out: Machinery and equipment ₹83,000 (pulveriser with accessories, diesel engine, utensils, weighing balance, packing tools, furniture ₹75,000 + tax, freight and insurance ₹8,000) + working capital for one month ₹45,100 = ₹1,28,100. Premises rented.

Working capital: One month of working capital ₹45,100: raw herbs and packing ₹28,000, wages ₹9,100, other expenses ₹8,000.

Year not printed on the NSTFDC profile and its rates are old — check current prices before you plan.

How to prepare a loan file

§8Export potential

The profile says harra, baheda and amla are exported, but it gives no HS codes or figures.

§9Risks — where people fail

  • Moisture and fungus spoiling stock
  • Buying species that are restricted for collection
  • Price fall after a good season

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working forest herb collection and trading centre unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration once turnover crosses the limit), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Forest Herb Collection and Trading Centre?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. NSTFDC model project profile — Herbal Collection Center

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.