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The medicinal plant sector is on the increase in many developing countries. Despite this, the existing supply chain is unable to improve the livelihoods of the gatherers. This article considers Gram Mooligai Company Limited (GMCL), the first community-based enterprise active in the herbal sector. GMCL promotes a more equitable sharing of benefits in the sector, while also aiming for a more sustainable use of natural resources. The article draws conclusions and lessons about supporting such types of enterprises, reforming the herbal-sector supply chain, and promoting new forms of partnership between ayurvedic firms and communities.

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