Search Button
Net Express Sections
The Indian Express

The Financial Express


Latest News

Express Investment Week


Market Indicators


Screen

Express Computers

Travel & Tourism

Advertisers Forum




Information Technology

Drumbeat: Ad Buzzaar

Astrosurf

Eco-India

Dr Know

Screen: The Business of Entertainment


Career India

Business Forum

Match Maker

Express Properties


Corporate

Economy

Expressions

Markets

Leisure

 

Monday, April 20, 1998

Now MNCs want to patent pysllium husk 

VK Chakravarti  
After basmati rice, it appears that pysllium husk (sat-isabgol) is now being considered by a few multinational companies (MNCs) for patenting exclusive marketing rights overseas.

Both Basmati and psyllium husk have geographical appellations. While Basmati has its orgin in the plains of undivided Punjab and foothills of Uttar Pradesh, psyllium crop is grown in a still narrower semi-arid belt on the Gujarat-Rajasthan border.

Psyllium husk, widely known for its medicinal values, is produced from the seeds by the same name, also known as Ispa-ghula (meaning horse's ear), plantago ovata (for its oval shape) and other names. The total production of psyllium seeds in the country is hardly 10 lakh bags (20 kg each), out of which 800 to 1,000 containers (20 tonnes each) of husk is processed by 30-odd units in the unorganised sector.

The psyllium husk producers of Gujarat, who have been at the mercy of a highly speculative market controlled by MNCs for decades, now fear that India might soon lose its rights tomarket and export a host of value-added formulations, being developed by several firms abroad. A Japanese firm is reported to be busy extracting injectable formulations. According to a former president of Psyllium Husk Processors Association over 90 per cent of the total psyllium husk valued at Rs 100 to 120 crore is exported. The US-based Proctor & Gamble (P&G) alone import 35 to 40 per cent of the product, followed by Perrigo, Searle, El Perino, Kellogg and other firms.

He argues that the consumption of the tasteless psyllium husk could not pick up in India because it is taken raw, with water or milk, sometimes adding sugar to it. On the contrary, it is popular abroad because it is sold in palatable formulations, after adding dextrose, essence, colour, citric acid or soda-bicarbonate in biscuits or breakfast cereals.

Its seed mucilage is used in cosmetics, as basic stabiliser in ice-cream and for sizing in chocolates, mixed in ice-creams, chocolates, biscuits or breakfast cereals. Some of the popularbrands abroad are Sunrise (P&G) and Heartwise (Kellogg).

As per the traditional ayurvedic and unani systems of medicines, one teaspoonfull of psysillium husk a day is known to work as mild laxative and reduce cholestoral. Modern allopathic system finds its use in providing relief, if not cure, in heart diseases and even cancer. Manubhai G Patel of Keyur Industries, one of the oldest unit at Sidhpur, points out that several big pharmaceutical firms have in the past attempted to set up modern automated plants in the vicinity but had to pack up soon.

Maybe, there overhead costs are too high, he opines. Some of the big houses which could not compete so far with the small scale units here included ITC, IPCA and Alana. Dabur is said to be hiving off its `Naturecure' brand produced at its Faridabad plant even as Infar's `Naturolex' is also reportedly not doing very well. Patel recalls that a few years back P&G patented an automatic pulveriser, sold it to three local processors at Rs one crore each with buy-backguarantee. But, apparently, the steel grinders (as against stone ones used by local units) proved too sharp, making a mesh of the husk, in the process destroying its medicinal qualities.

The primitive method continues to be cost-effective too in sifting husk from the seed. It is perhaps one of the reasons that no psyllium processing unit could be set up outside this 10-km stretch of Unjha-Sidhpur Road. The dry weather here could be the other reason. Psyllium husk absorbs moisture very fast and swells to eight times its original volume and becomes sticky.

Yet, these processors, either individually or collectively, so far could not avoid but being pawned by global players in a highly speculative market. Most processors did not want to comment on the developments and the few who were vocal refused to be identified. The forward trading in psyllium husk is of extreme kind, unheard in case of any other commodity. The deal is struck by MNC's with the local processing units as early as December-January for cropsto be harvested in the next season in March-April, almost 15 months later. "It's like playing blind," says a processor.

"Rather," as one processor says, "I distinctly remember it used to be in around US$ 2.10 per kg in 1977. The deal for current year has been struck between US$ 1.75 and $2. Last year it was shade better in the range of US$ 2.15 and 2.40."

"The purchase managers of bigger companies,swoop in here, mostly from the USA and a few from Europe... They don't seem to trust evenNRI's... and prices are quoted in dollars."

It is no wonder that this small taluka town, known for only these pysllium processing, has a couple of hotels with AC rooms and other modern facilities -- obviously for foreign traders' seasonal visits here.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



Syndicate Bank

Pidilite

Bank of India

 

Touchwood: Make Big Money Thru' Legitimate Means