How widespread is the backward linkage system, like tissue culture and contract farming in the nutraceutical industry?
In this country, it is a relatively new industry. Backward linkage like contract farming is inevitable because the wild resources from where plants are being collected now are limited. Companies in this business would have to evolve more adaptable varieties and varieties suitable for cultivation in order to survive in this business. It is a function of time that backward linkages will be established as indeed they have established in the U.S. Example: Cultivation of saw palmetto in Florida. Does the nutraceutical industry lend itself to small-scale operations like the pharma formulations sector? Yes, but small-scale units will have to find niche markets. For example, a company may specialise in two or three nutraceuticals based with availability of the raw material in its area of operations. What are the natural advantages that India has for the nutraceutical industry? What is the size and structure of the Indian industry? India is home to almost all kinds of plants ranging from tropic
