I. Support for the Development of the Chinese Medicinal Herb Seed Industry
First, for new varieties of medicinal plants that have been newly certified by relevant provincial departments and recognized by production and usage departments, and which are cultivated on a scale of 5,000 mu or more, a subsidy of 300,000 yuan will be provided per variety. Second, support will be provided for eligible Chinese herbal medicine industry projects within Yunnan Province’s key projects in modern seed industry, modern facility agriculture, and under-forest economy, as well as science and technology projects in the biomedicine sector.Third, support will be provided for the construction of large-scale, contiguous breeding bases for high-quality varieties of authentic medicinal herbs. Eligible projects will be incorporated into the provincial seed industry base construction program and given priority support. Funding from the provincial government will not exceed 40% of the total project investment, with a maximum of 10 million yuan per project.Fourth, utilize modern information technologies such as digital management and artificial intelligence to significantly enhance the capacity and standards of Yunnan’s authentic medicinal herb cultivation (and breeding). Projects that research and develop a set of intelligent, replicable, and scalable cultivation (and breeding) technologies and demonstrate their application on at least 500 mu of land will receive 500,000 yuan in fiscal funding per project. (Responsible Units: Provincial Department of Science and Technology, Provincial Development and Reform Commission, Provincial Department of Agriculture and Rural Affairs, Provincial Forestry and Grassland Bureau, Provincial Department of Finance)
II. Supporting the Standardized Development of the Chinese Medicinal Materials Industry
First, promote the efficient transformation of scientific and technological innovation achievements in agriculture and forestry, and strengthen the services provided by science and technology special mission teams. For each provincial-level science and technology special mission team dispatched, project support will be provided at a standard not exceeding 2 million yuan. Second, support “Hometowns of Yunnan Herbs” in establishing paired assistance relationships with provincial-level talents (teams), providing 200,000 yuan in annual fiscal funding.Third, support localities in coordinating relevant funds—including central and provincial matching funds, Shanghai-Yunnan cooperation funds, project funds from targeted assistance by central enterprises, and agricultural development funds—in accordance with regulations, to guide business entities in the Chinese herbal medicine sector to establish Good Agricultural Practice (GAP) bases for authentic medicinal herbs. At the provincial level, no more than 20 business entities that have passed GAP evaluation and have a cultivation area of 100 mu or more will be selected annually, with each receiving a one-time subsidy of 500,000 yuan.(Responsible Units: Provincial Department of Science and Technology, Provincial Department of Agriculture and Rural Affairs, Provincial Department of Finance, and Finance Bureaus of all prefectures and cities)
III. Supporting the Modernization of Facilities in the Chinese Herbal Medicine Industry
First, promote the modernization of cultivation and breeding facilities in the Chinese herbal medicine industry to increase mechanization levels. Subsidies will be provided in accordance with regulations for projects eligible under the central government’s agricultural machinery purchase and application subsidy program. Furthermore, pilot programs for subsidies on the purchase of new agricultural machinery suitable for Chinese herbal medicine cultivation and breeding will be expanded, with new agricultural machinery models applicable to the province’s Chinese herbal medicine industry included in the pilot scope.Second, for new capital investments in facility agriculture made within the year that fall within the scope of support, a one-time incentive subsidy of 5% of the actual completed investment amount will be provided for investments ranging from 50 million yuan (inclusive) to 100 million yuan. For actual completed investments of 100 million yuan (inclusive) or more, a one-time incentive subsidy of 10% of the actual completed investment amount will be provided.Third, for loans taken out by new types of agricultural business entities to acquire infrastructure and fixed-asset equipment essential for facility agriculture production and operations, interest subsidies will be provided in accordance with the following regulations: the subsidy rate shall not exceed 70% of the LPR for the same period and tier, nor exceed 2%, with a cap of 2 million yuan per entity. Fourth, active support will be provided for eligible projects such as comprehensive digital empowerment platforms for Chinese medicinal herbs and data infrastructure construction.Fifth, agricultural development funds and other agriculture-related funds will be coordinated to support the construction of Chinese herbal medicine production bases. Localities are encouraged to make effective use of existing central government funds for enhancing the capabilities of agricultural business entities to improve production conditions for entities such as farmers’ cooperatives and family farms, thereby fostering the development of the Chinese herbal medicine industry. (Responsible Units: Provincial Department of Agriculture and Rural Affairs, Provincial Data Bureau, Provincial Department of Finance; Finance Bureaus of all prefectures and cities)
IV. Supporting the Enhancement of Chinese Medicinal Herb Processing Capabilities
First, through key agricultural core technology research and development projects, support various business entities in upgrading and applying on-site primary processing technologies.Second, support the planning and formulation of on-site primary processing projects and their inclusion in the rural revitalization project database. In accordance with regulations, pool provincial-level special funds for high-quality manufacturing development, special funds for SME development, central and provincial-level linkage funds, as well as project funds from the Shanghai-Yunnan cooperation and targeted assistance by central enterprises, to provide subsidies for eligible on-site primary processing, fresh-processing, and deep-processing projects for medicinal herbs,support the cultivation of Chinese herbal medicine industrial clusters, enterprise technological transformation and innovation, the development of specialized, refined, distinctive, and innovative SMEs, rural professional cooperatives, and family farms. Third, actively seek to secure central government projects for industrial integration, such as Industrial Strong Towns, Modern Agricultural Industrial Parks, and Industrial Clusters; under equal conditions, the provincial government will give priority to recommending Chinese herbal medicine industry projects to higher authorities. (Responsible Units: Provincial Department of Industry and Information Technology, Provincial Department of Agriculture and Rural Affairs, Provincial Department of Finance)
V. Supporting the Development of the Chinese Herbal Medicine Market System
First, we will coordinate existing budgets for central and provincial commerce and circulation funds to support the establishment and improvement of the Chinese herbal medicine supply chain, public service systems, and digital traceability platforms. We will strengthen the construction of modern, high-standard Chinese herbal medicine trading markets and warehousing centers, with a focus on establishing Kunming City and Wenshan Prefecture as regional trading hubs. We will prioritize the development of a “1+N” market trading system centered on major production-area trading markets in Dali Prefecture,Zhaotong City, Lijiang City, and Baoshan City as primary production-area trading markets, and Jinghong City and Ruili City as four TCM import port trading markets, to strengthen domestic TCM trading and the import and export of TCM. Second, support the construction of digital and intelligent origin warehouses; give priority support to eligible projects, providing funding equivalent to 10% of actual technological investment, with provincial fiscal funding for a single project not exceeding 10 million yuan.(Responsible Units: Provincial Department of Commerce, Provincial Department of Science and Technology, Provincial Department of Finance)
VI. Supporting the Integrated Development of the TCM Industry Across All Three Sectors
Support localities in making full use of existing funding policies in accordance with regulations to actively support the extension, supplementation, and strengthening of the TCM herbal materials industry chain. First, industrial projects funded by central-provincial linkage funds, other integrated agricultural funds for national key counties for rural revitalization, and Shanghai’s special assistance funds for Yunnan should prioritize the TCM herbal materials industry. Through measures such as grant-in-aid, operational subsidies,loan interest subsidies, and the procurement of services, to implement the integrated development of the primary, secondary, and tertiary industries—centered on the cultivation and breeding of Chinese herbal medicines, primary processing at the production site, deep processing, and the integration of agriculture and tourism. This will support the Chinese herbal medicine industry in addressing shortcomings in key areas such as technology, facilities, and marketing, while establishing mechanisms to connect with, support, and enrich farmers, thereby promoting their prosperity and income growth.Second, promote the integrated development of the Chinese herbal medicine industry with agriculture, culture, and tourism, giving priority support to projects involving the Chinese herbal medicine industry in initiatives such as the creation of distinctive rural tourism routes and demonstration sites for agri-cultural-tourism integration. Third, for newly approved varieties of Chinese herbal formula granules meeting national standards, a subsidy of 500,000 yuan will be provided per variety; for provincial-level standards for Chinese herbal formula granules newly filed with the State Pharmacopoeia Commission, a subsidy of 30,000 yuan will be provided per variety, with a maximum annual subsidy of 2 million yuan per enterprise.Fourth, for traditional Chinese medicine varieties newly granted clinical trial approvals or implied approvals, a subsidy of 20% of the R&D costs incurred during the preclinical research phase will be provided for each variety, with a maximum of 3 million yuan; for varieties newly granted a National New Drug Certificate or a production approval and industrialized within the province, a subsidy of 20% of the R&D costs incurred during the clinical research phase will be provided for each variety, with a maximum of 10 million yuan.For newly approved medical institution preparations and TCM preparations formulated by medical institutions using traditional processes that have been filed for record, a subsidy of up to 50% of the R&D investment will be provided for each variety, with a maximum subsidy of 300,000 yuan. Fifth, for TCM varieties newly granted marketing authorization abroad, a subsidy of 20% of the actual investment will be provided, with a maximum of 5 million yuan per variety.Sixth, for research on the secondary development of Yunnan-specific proprietary Chinese medicines that achieves a 300% increase in revenue per variety within three years, a subsidy of 25% of the actual R&D investment will be provided per variety, with a maximum of 3 million yuan; support will also be provided for the identification of active ingredients in authentic Yunnan medicinal materials for the development of cosmetic raw materials. For newly approved cosmetic raw materials, a subsidy of 25% of the actual R&D investment will be provided per variety, with a maximum of 500,000 yuan.(Responsible Units: Provincial Department of Agriculture and Rural Affairs, Provincial Development and Reform Commission, Provincial Forestry and Grassland Bureau, Provincial Department of Culture and Tourism, Provincial Department of Science and Technology, Provincial Department of Finance, and finance bureaus of all prefectures and cities)
VII. Supporting the Standardization and Branding of the Chinese Herbal Medicine Industry
First, research institutes and enterprises are encouraged to formulate standards for the cultivation, processing, storage, transportation, and quality testing of Chinese herbal medicines. Efforts will be made to establish and improve the provincial standard system for Chinese herbal medicine seeds and seedlings, the cultivation standard system, on-site processing procedures, and the quality standard system, as well as the grading evaluation standards for Yunnan herbal medicines and the construction of pilot demonstration projects.Second, for entities that revise standards for Chinese herbal medicines and processing specifications for prepared herbal slices, and publicly release a total of 20 or more new standards, a subsidy of up to 5 million yuan will be provided to the research institution, at a rate of 100,000 yuan per standard or specification.Third, for research on standards and specifications for Chinese herbal medicines and prepared herbal slices that are newly incorporated into national standards, a one-time subsidy of 1 million yuan will be provided to the research institution for each variety; for standards adopted by major international pharmacopoeias or the International Organization for Standardization (ISO) since 2021, a subsidy of 2 million yuan will be provided to the research institution for each variety.Fourth, the provincial government will utilize the Special Fund for the Modernization of Plateau-Characteristic Agriculture to support the development and promotion of the “Yunyao” regional public brand; it will also support localities in leveraging existing funding policies to strengthen the construction of regional public brands for medicinal materials, based on their local advantages and distinctive varieties. (Responsible Units: Provincial Department of Science and Technology, Provincial Market Regulation Bureau, Provincial Drug Administration, Provincial Department of Agriculture and Rural Affairs, Provincial Department of Finance, and finance bureaus of all prefectures and cities)
VIII. Leveraging Coordinated Support from Financial and Insurance Sectors
First, implement agricultural credit guarantee incentives and subsidies. The Provincial Agricultural Financing Guarantee Company shall charge guarantee fees not exceeding 0.5% for key agricultural projects (including policy-based poverty alleviation projects) and 0.8% for other policy-based business. For policy-based loan entities in counties (cities, districts) that establish a “government-guarantee” risk-sharing mechanism, no guarantee fees shall be charged; the provincial government will provide full subsidies for the uncollected guarantee fees in accordance with regulations.Second, localities are encouraged to develop insurance programs for the cultivation and breeding of traditional Chinese medicinal materials tailored to local conditions. The provincial finance department will provide support in accordance with relevant policies regarding premium subsidies for insurance on local specialty agricultural products. (Responsible Units: Provincial Department of Agriculture and Rural Affairs, Provincial Department of Finance, Provincial Agricultural Guarantee Company, Finance Bureaus of All Prefectures and Cities)
The "Several Policy Measures of Yunnan Province on Fiscal Support for the Chinese Herbal Medicine Industry" shall take effect on April 1, 2025, and remain valid until December 31, 2027.Where other provisions of the policy apply or adjustments are made during the policy period, such provisions shall prevail; application conditions and requirements shall be subject to the project application guidelines. If such guidelines have not yet been formulated, the competent authorities shall complete their formulation within three months from the date of policy issuance. Relevant funds shall be coordinated and arranged within the annual departmental budgets of each department; for funds classified as ex-post subsidies, disbursement shall be made in the following year.
