Gold and Silver Price Rally Squeezes Ayurvedic Medicine Industry in Madhya Pradesh
The unprecedented rally in gold and silver prices has extended far beyond jewellery markets, now significantly impacting the cost of Ayurvedic medicines across Madhya Pradesh. From memory boosters and paralysis treatments to the widely consumed chyawanprash, manufacturers are facing severe margin pressure and production slowdowns as precious metal ashes become prohibitively expensive.
Traditional Formulations Face Cost Crisis
Ayurvedic drug manufacturers report that record prices of precious metals have dramatically increased input costs, since gold and silver ash, known as 'bhasma', serve as crucial ingredients in numerous classical formulations. These medicines address various health concerns including memory enhancement, neurological disorders, paralysis, diabetes, respiratory ailments, joint pain, and general weakness.
Industry estimates indicate that prices of medicines containing gold and silver 'bhasma' have surged two to three times over the past year, primarily driven by the relentless bullion price rally. This escalation is creating significant challenges for both producers and consumers of traditional healthcare products.
Manufacturing Challenges and Production Cuts
Rahul Bhardwaj, a fourth-generation Ayurvedic manufacturer based in Indore, explained that his unit produces at least seven different Ayurvedic medicines utilizing gold and silver ashes. "The process of creating bhasma is both lengthy and traditional," he noted. "It requires nearly six to twelve months of meticulous purification and calcination before the ash becomes suitable for medicinal application."
Detailing the specific cost pressures, Bhardwaj revealed that producing 100 grams of memory booster tablets—primarily composed of 'brahmi' and 'shankhpushpi'—requires approximately 2 to 2.5 grams of gold ash. "That component alone now costs over Rs 30,000, substantially elevating overall production expenses and severely squeezing profit margins," he emphasized.
Manufacturers across the state report declining sales as retail prices cannot be adjusted frequently enough to match rising costs. Consequently, numerous production units have scaled back manufacturing operations due to unsustainable input expenses.
Industry Leaders Voice Concerns
Rajesh Sethiya, president of the Indore Ayush Nirmata Sangh, confirmed that the cost of virtually all Ayurvedic medicines incorporating gold and silver has increased significantly. "This situation is severely impacting manufacturers' margins because consumer prices cannot be revised with such frequency," he stated. "Most manufacturers have adopted a hand-to-mouth procurement strategy for raw materials to minimize financial risk."
The precious metals used for medicinal ash maintain 24-carat purity and undergo repeated purification cycles along with intense heating processes to transform them into absorbable 'bhasma'. This specialized preparation adds both time and cost to the manufacturing process.
Widespread Impact on Popular Formulations
Gold and silver ash serve as essential ingredients in chyawanprash, one of India's most commonly consumed immunity supplements. The price surge therefore affects millions of regular consumers who rely on this traditional preparation for wellness support.
According to industry associations, Madhya Pradesh hosts more than one thousand registered AYUSH manufacturers, establishing the state as a major hub for herbal and Ayurvedic medicine production. The current price crisis therefore has widespread implications for this significant economic sector.
Future Outlook and Affordability Concerns
Manufacturers express concern that unless precious metal prices stabilize, the affordability of classical Ayurvedic medicines may remain under persistent pressure. This comes despite growing demand for traditional healthcare solutions across India and globally.
The industry faces a delicate balancing act between maintaining traditional formulations with authentic ingredients and ensuring medicines remain accessible to consumers. As gold and silver prices continue their volatile trajectory, Ayurvedic manufacturers in Madhya Pradesh and beyond must navigate these challenging economic waters while preserving India's ancient medicinal heritage.
