
The festival of Holi also has spiritual history, of Holika/Prahlad's interesting study.

Also the festival is celebrated with few scientific reasons, which tell us the living style in coming season, restrictions, change of clothing, Relaxation of Farmers, etc..

However many colours are made from oxidized metals or industrial dyes which are harmful, we need to avoid them...
One can create own colour by using following formula:
Take some Red Sandalwood Powder / Raktachandan / Lalchandan (Pterocarpus santalinus) has a beautiful red color, which is not harmful for the skin.
This can be used instead of Holi Gula. Dry red hibiscus flowers in the shade and powder it to make a lovely red color.
To increase the bulk you may add any flour to it, in proportion to the vibrancy of the color.
Sinduria (Annato) has a water chestnut shaped fruit, which contains lovely brick color red seeds. These yield both dry and wet colors. - about.com
Also if someone uses Gulal. which is not natural to you.... Dont Mind, its Holi....

Have a Safe and Healthy Holi