Tashkent, Uzbekistan (UzDaily.com) -- Experts from the Institute for Forecasting and Macroeconomic Research (IPMI) studied the prospects for the global ferula market, as well as the potential of Uzbekistan in this direction.

Ferula (asafoetida) is widely used in folk medicine, cosmetology, as a seasoning for food, and also as a raw material in the pharmaceutical industry. It grows in the southern regions of the world on sandy and stony soils - Iran, Afghanistan, Central Asia.

The global market for raw asafoetida was US$325 million in 2020.

Afghanistan is the largest supplier of raw asafoetida to the world market, exporting US$170.5 million in 2020 (52% of world exports). Iran is another major supplier of raw asafoetida.

India consumes 40% of the world’s raw asafoetida, China 15%. These two countries are also the largest processors of asafoetida. These countries mainly import asafoetida from Afghanistan, Iran, Uzbekistan and other countries. India alone imports about 1,200 tons of asafoetida raw materials annually, worth an average of US$100-130 million.

The average price of 1 kilogram of raw asafoetida in the world market is US$150-200. In the coming years, global consumption of asafoetida is expected to increase by an average of 6% per year.

Entrepreneurs of Uzbekistan export raw asafoetida at US$45-50 per kilogram. This constitutes a significant competitive advantage in terms of price. If, by processing raw materials, food seasoning is made and sold in packaged form, it is possible to receive a final income of 5-6 times more compared to the income from the sale of raw materials.

According to the Ministry of Agriculture of the Republic of Uzbekistan, in 2021, exporters of medicinal plants exported 170 tons of raw asafoetida worth US$7.65 million. In 2022, more than 12 thousand hectares of land in Uzbekistan are planted with ferula. In the coming years, this may further expand the export potential in this area.

Taking into account the prospects of the world market and the internal potential of Uzbekistan, we can highlight the key advantages of developing this area in Uzbekistan:

- Minimum costs for cultivation;

- Price advantage in the cost of raw materials in the world market;

- Opportunity to create new jobs in labor-surplus regions of the country;

- Significant increase in potential income.

- Growing demand in the global market.