Nepal’s oldest medicine factory struggles to survive

By Raman Paudel,Kathmandu, Nov. 14: Vaidyakhana, Nepal’s oldest herbal medicine production factory, established 400 years ago, is currently struggling to survive.

The company has been facing several challenges related to finance, staffing, and management.

Executive Director Dr. Pradip KC, who was appointed two years ago, stated that the company is in crisis, facing structural instability, a lack of infrastructure and manpower, along with outdated technology.

As a result, the company has failed to meet its annual targets, as its production capacity has significantly decreased. According to Vaidyakhana officials, the company is unable to achieve even 20 per cent of its annual target.

Each year, the company records approximately 30 million rupees in income while its expenditure doubles to around 60 million rupees.

Speaking to The Rising Nepal, ED Dr. KC said that the company fails to meet market demand because it faces several challenges.

“It is not possible to elevate the growth of Vaidyakhana in the current situation, as the government has not been concerned about this four-century-old factory. The factory has not yet received basic facilities, including adequate staffing, modern technology, and equipment. To achieve our targets, the Ministry of Health and Population needs to take show concern in these matters and make necessary decisions,” stated Dr. KC.

He also urged the government to take serious concern over the future of Vaidyakhana.

Long legacy of Vaidyakhana

About four centuries ago, King Pratap Malla established this industry with the aim of producing medicines and treating the royal family members.

Later, when the factory was shifted to Singha Durbar, it came to be known as Singha Durbar Vaidyakhana. The industry has been operating under the Singha Durbar Vaidyakhana Bikash Samiti.

In the past, the industry used to produce more than 100 types of herbal medicines and distribute them across the country. However, under the current circumstances, it is struggling to produce even 68 types of medicines.

Dr. KC also warned that if the government cannot operate the company properly, it could face the same fate as Gorakhkali Tyre, Bansbari Leather Shoe Factory, and Biratnagar Jute Mill.

He added that the government must take concrete steps to strengthen the Vaidyakhana, as the Ministry currently provides around 60 million rupees annually, an amount he considers insufficient. Of this budget, about 70 per cent is spent on recurrent expenditures, while only 30 per cent is 

allocated for capital expenditure, according to Dr. KC.

However, some officials from the Ministry of Health argued that the Vaidyakhana is independent in designing its own action plans and generating markets for its sustainability.

Dr. Prakash Budhathoki, Spokesperson for the Ministry, stated that the government will always welcome and encourage innovative ideas to promote the growth of Vaidyakhana.

“Yes, I agree that the administrative structure is an issue at Vaidyakhana. But the Executive Director can generate some innovative ideas aimed at making the company competitive. We expect the Vaidyakhana to compete in the market by increasing the variety and quantity of its medicinal products,” said Dr. Budhathoki.

Krishna Paudel, Secretary at the Ministry, also emphasized that the industry should become self-sustaining through its production, while the Ministry can only provide assistance.

“We have prepared a 10-year action plan for the sustainability of Vaidyakhana, and we now expect the industry to implement it properly. Nevertheless, we have allocated some additional budget to support several new programmes. We can only assist the industry, not fully bear its expenses,” stated Dr. Paudel.

Dr. Pushpa Raj Paudel, Chief of the Department of Ayurveda and Alternative Medicine, also stressed that Vaidyakhana should first devise and implement its strategic plan.

Citing the issue of insufficient approved positions at Vaidyakhana, Dr.  Paudel emphasized that the factory’s leadership should create innovative projects and plans to expand the market.

Opposing the Ministry officials, Dr. KC claimed that the company has long been unstable due to the actions of previous governments and ministry officials.

“Under the current mechanism, it is not possible to distribute medicines to more than 500 health posts, Ayurveda centres, district hospitals, and provincial hospitals across the country. We are still forced to cook medicine using firewood. In such a situation, how can we meet a demand worth 1 billion rupees?” Dr. KC questioned Ministry officials.

Dr. KC also argued that the government has long shown institutional prejudice toward the herbal medicine, pointing out that even sixth-level doctors have not been promoted for 17 years.