Innovative Farmer Institutions and Market Imperfections: New Opportunities and Challenges for the Ayurvedic Sector and Small-Scale Enterprises in India

The , as it is currently structured, is unable to improve the living standards of the underprivileged communities, who are the gatherers of the medicinal plants, The role of grass-roots organisations and rural networks to reduce transaction costs and enhance coordination, has been object of study in different sectors but there is a gap in the literature in the .

The article portraits the supply relations in the market and suggests to promote enterprises such as Gram Mooligai Company Limited (GMCL), the first community based active in the herbal sector. Lessons to promote a more equitable sharing of benefits in the sector, to reform the supply chain and to promote new forms of partnership between firms and communities are discussed.

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