Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Index 3: Domestic Supply ConditionsProducers: Out of about 300 firms, only 28 are directly involved in processing, while the others focus ontrading alone. Nepal Herbs and Herbal Products Association (NEHHPA) has 33 members and Jadi Buti, theHerbs Entrepreneurs Association of Nepal (JABAN) has 225 members (of which only three are involved inessential oil processing).Production Capacity: Estimates based on collection permits issued in 58 districts (out of the 75 districts inNepal) by the Department of Forestry indicate that annually about 50,000 MT of MAPs could be harvested. 29Out of this, currently only 20-30 per cent are being collected, processed, and traded. In 2007/08, a total of Rs29 million was recorded as royalties from collection of 3,381 MT. 30 Attaria and Tanakpur in the Far-WesternRegion (30 per cent), Nepalgunj in the Mid-Western Region (50 per cent), Butwal in the Western Region (4per cent), Trishuli and Kathmandu in the Central Region (9 per cent), and Basantpur in the Eastern Region(7 per cent) are the collection and marketing centres for herbs in Nepal. 31 There has been a drastic reductionin herbs collection as against an annual average of 8,400 MT for the previous five years (2002/03 to 2006/07). 32However, the situation is improving with exports of 5,540 MT of 40 species of crude herbs valued at Rs 400million. Data from Nepalgunj customs in 2008/09 33 indicates that the total export of the country could havesurged to about 10,000 MT. Informal and unrecorded exports to India from porous borders are also high. Alist of the 52 most important commercially available herbs is presented in Table 2.27.Quality of Product: More than 95 per cent of commercialized herbs are wild, organic, and natural. In general,herbs collectors are using traditional knowledge for pre- and post-harvesting operations and processing. Thereis scope for reducing wastage and improving quality through proper training and information managementsystem. The Department of Plant Resources (DPR) has also started developing quality standards for medicinalherbs. 34 The DPR also provides services for testing and certifying the quality and composition of essentialoils.Productivity: There is a lack of scientific knowledge and consciousness on the conservation, propagation, andcultivation of herbs.Availability and Quality of Labour Force: It is estimated that as many as 300,000 families are engaged inmedicinal herbs collection in 58 districts 35 . It is also estimated that another 100,000 families can easily join theherbs collection jobs when opportunities arise. However, these workers need training.Labour Cost and Overall Production Cost: Most of the collection takes place in remote mountain areas thathave labour cost advantages as compared to other suppliers in India and Bhutan.Level of Processing Technology: Crude herbs are being processed through rudimentary techniques. Essentialoils are produced basically through a distillation process. There is a need to introduce more modern processingsystems. Critical pressure through carbon dioxide and fractional distillation are the most modern technologiesthat could be introduced for oil extraction.29Pradip Maharjan, Herbs Production and Processing Co.Ltd. (HPPCL), Community Based Natural Resources Management, MAP in Nepal,Proceeding of Nepal-Japan Joint Symposium 2000.30Department of Forestry, MFSC, Hamro Ban, 2064/65 (2007/08).31Figures in parentheses represent the share of the region in total national collection.32Dharmatma Lal Shrivastava, “Resources of Nepalese Medicinal and Aromatic Plants: Status and Development”, Department of Plant Resources,Plant Resources, A Scientific Publication, Bull Dept Pl. Res. No. 31, p. 127, 2009.33Herbs Entrepreneurs Association of Nepal (JABAN), Nepalgunj.34Dharmatma Lal Shrivastava, Bull Dept Pl. Res. No. 31, p. 130, 2009. So far four standards have been developed for Asparagus recimosus,Swertia Chirayita, Tinospora sinensis and Verginia ciliate.35Figure estimated by JABAN, Nepalgunj. Out of 52 districts 30 main districts are: Sankhuwasabha, Panchathar, Terahthum, Solukhumbu,Okhaldhunga, Bhojpur, Taplejung, Dolakha, Sindhupalchowk, Nuwakot, Dhading, Gorkha, Lamjung, Kaski, Manang, Mustang, Myagdi, Dolpa,Bajhang, Bajura, Rukum, Humla, Jumla, Rolpa, Kalikot, Darchula, Baitadi, Jajarkot, Dailekh, and Aachham.58NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT