Farming System / 02

Medicinal
& Aromatic
Crops.

We develop medicinal and aromatic crop projects around a simple principle: do not grow first and search for a buyer later. We begin with market demand, crop suitability and commercial requirements, then build the cultivation model around them.

Medicinal and aromatic plants
Market-linked cultivation
From crop selection
to commercial harvest.
01 Market first
The idea

Grow what
the market
needs.

Medicinal and aromatic crops sit at the intersection of agriculture, traditional medicine, natural ingredients, essential oils, wellness products, cosmetics and industrial extraction. That makes the crop decision very different from ordinary commodity farming.

VL Bio Farms works with companies that use medicinal plants, aromatic crops or essential-oil raw material. Where a commercial opportunity is established, we structure contract-farming projects at suitable sites and work backwards from the buyer's requirements to the farm.

This means crop selection is based on soil and climate, agronomic feasibility, planting material, expected yield, harvesting window, processing requirements, quality parameters, market demand and the commercial arrangement — not simply on the highest advertised subsidy.

Our decision framework

How we decide
what to cultivate.

A medicinal crop becomes a VL Bio Farms project only when the agronomic and commercial sides make sense together.

01

Buyer demand

We first identify the downstream use: essential oil, dried herb, root, leaf, seed, extract or another raw-material requirement. The buyer's specification becomes an input into crop selection.

02

Site suitability

Soil, water availability, temperature, rainfall, drainage, terrain, farm access and the local cropping calendar are assessed before a crop is recommended.

03

Crop economics

We evaluate planting material, cultivation cost, labour, irrigation, crop duration, harvest frequency, expected yield and the likely value of the finished raw material.

04

Processing pathway

A crop is more valuable when the post-harvest route is clear. Drying, distillation, cleaning, grading, storage, extraction and aggregation requirements are considered at project design stage.

05

Quality specification

For essential oils and medicinal raw material, quality can determine commercial value. We build cultivation protocols around the parameters required by the downstream buyer.

06

Government support

Where a crop and project qualify for an applicable government programme, subsidy or infrastructure support, we factor it into the economics. It is an advantage — not the sole reason for planting.

Our operating model

The company
comes before
the crop.

Our medicinal and aromatic crop activity is designed around partnerships with companies that have a commercial requirement for botanical or essential-oil raw material.

01

Commercial requirement

We engage with a company or buyer to understand what it needs, in what form, in what quantity, at what quality and during which procurement window.

02

Crop and site matching

The requirement is mapped against suitable crops and potential farming locations. We assess agro-climatic conditions, water, land access and operational feasibility.

03

Farmer and site mobilisation

Suitable farms and farmer groups are identified for the project. The cultivation plan is explained before the crop is introduced, including timing, practices and expected harvest standards.

04

Protocol-led cultivation

Crop protocols are developed around the commercial requirement. Field practices, planting material, crop monitoring, harvest timing and post-harvest handling are coordinated accordingly.

05

Aggregation and quality

Production can be aggregated across participating sites so that the buyer receives a more consistent, traceable and commercially useful quantity of raw material.

06

Market linkage

Where a formal procurement or buy-back arrangement is agreed, the project is structured around that commercial pathway. The objective is to reduce the farmer's exposure to an uncertain open-market sale.

Government ecosystem

AYUSH,
NMPB &
Medicinal Plants.

The Government of India has established the National Medicinal Plants Board (NMPB) under the Ministry of AYUSH to coordinate matters relating to medicinal plants, including cultivation, conservation, trade, quality and development of the sector.

Historical National AYUSH Mission (NAM) support included a medicinal-plants cultivation component covering 140 prioritised species, with support rates of 30%, 50% and 75% of cultivation cost depending on the applicable category and scheme norms. Official AYUSH material records support for more than 56,000 hectares under that earlier NAM cultivation component.

Medicinal herbs and plants
140 prioritised plants
Historical NAM medicinal-plant cultivation framework
Subsidy & project economics

Subsidy can help.
It should not
choose the crop.

Government support can materially change the economics of a medicinal-plant project, but subsidy rates, eligible species, cost norms, implementing agencies and application windows can change. We therefore treat subsidy as a project variable that must be verified for the farmer's state and season.

30% tier
Common / prioritised crops

Historical NAM material lists crops such as Kalmegh and Tulsi among plants supported at the 30% level. Exact eligibility and cost norms must be checked against the applicable state programme.

50% tier
Higher-value medicinal crops

Historical lists include crops such as Ashwagandha and Shatavari in the 50% category. The actual cost norm and assistance available to a farmer depend on the applicable government framework.

75% tier
Conservation / high-priority plants

Historical NAM documentation includes a 75% support category for selected prioritised medicinal plants. The headline amount is not a universal ₹75,000-per-acre entitlement.

!

Important 2026 clarification

The widely circulated “₹75,000 per acre” figure comes from applying a 75% rate to a qualifying cultivation cost norm. It should not be presented as a blanket cash subsidy available for every medicinal crop in 2026. Official AYUSH material confirms the earlier 30% / 50% / 75% NAM cultivation framework, while current NMPB material also describes a Central Sector Scheme focused on conservation, quality, cultivation development, supply-chain linkages, post-harvest management and market infrastructure. Before committing a farmer or project to a subsidy number, VL Bio Farms should verify the current State Medicinal Plants Board / implementing-agency notification, species list and cost norm.

Examples, not a fixed catalogue

What can
we grow?

The right crop depends on the site and commercial requirement. The following are examples of crop categories that can be evaluated for medicinal, aromatic and essential-oil projects. A crop appearing here does not by itself mean that a current subsidy is available for it.

Crop
Ashwagandha
Medicinal raw material / herbal formulations
Soil, root yield, planting material, drying and buyer specification
Verify current state eligibility
Crop
Shatavari
Medicinal root / herbal industry
Crop duration, planting material, root quality and post-harvest handling
Verify current state eligibility
Crop
Tulsi
Herbal material / aromatic and wellness applications
Biomass, oil profile, harvest timing and drying/processing pathway
Verify current state eligibility
Crop
Kalmegh
Medicinal herb / herbal formulations
Climate fit, biomass yield, active-quality requirements and drying
Verify current state eligibility
Crop
Safed Musli
High-value medicinal root
Planting material cost, soil, root quality, drying and market rate
Verify current state eligibility
Crop
Lemongrass
Aromatic crop / essential oil
Oil yield, chemotype, distillation access, harvest cycle and buyer specification
Scheme-specific check
Crop
Palmarosa
Aromatic crop / essential oil
Oil recovery, planting material, harvest timing and distillation economics
Scheme-specific check
Crop
Vetiver
Aromatic root / essential oil
Root biomass, oil quality, processing and suitable soil conditions
Scheme-specific check
Aromatic plants and essential oils
Industry partnerships

From field
to essential
oil.

Aromatic crops require a different commercial lens. The value may not be in the raw biomass alone; it can be in the oil yield, chemical profile, consistency and ability to process the crop at the right time.

1
Identify the downstream processor
Understand the oil or botanical ingredient requirement before planting.
2
Match the crop and location
Select a crop that can produce the required biomass and oil profile under the site conditions.
3
Design the cultivation and processing chain
Plan harvesting, transport, aggregation and distillation or processing around the crop.
Why the model matters

A better path
for the farmer.

01

Market visibility

The farmer enters the crop with a clearer understanding of its intended commercial use.

02

Technical support

The cultivation model can be standardised around a crop protocol rather than informal trial and error.

03

Aggregation

Small farms can participate in a larger commercial production programme through coordinated aggregation.

04

Value chain access

The objective is to connect cultivation with processors, essential-oil companies, herbal manufacturers and other downstream buyers.

Project qualification

Have land?
Have a buyer?
Let's test the model.

VL Bio Farms can evaluate medicinal and aromatic crop opportunities where there is a credible site, a defined commercial requirement and a workable cultivation model.

Reference & verification

Government-scheme information on this page is presented for educational and project-planning purposes. Subsidy availability, eligible species, cost norms, application routes and implementing agencies can change by financial year and state. Farmers should verify current notifications with the relevant State Medicinal Plants Board, State implementing agency or NMPB before making financial commitments.