Action Research on Inclusive Model of

Forest Based Enterprises Development

and Documentation in Kalinchok VDC,
Northern Dolakha

A Study Report Submitted To

Ecology, Agriculture and Rural
Development Society
(ECARDS) - Dolakha
Charikot, Dolakha

Submitted By
Khilendra Gurung
November, 2007
 Table of Content

CHAPTER ONE

1.1 Introduction 1

1.2 Objectives 2

1.3 Study area 2

CHAPTER TWO

2.1 Methodology 6

2.1.1 Key informant survey and resource mapping 6

2.1.2 Identification of NTFPs 6

2.1.3 Data processing and analysis 6

2.1.4 Population distribution parameters 6

2.1.5 Prioritization of NTFPs 7

2.1.6 Rapid vulnerability assessment (RVA) 7

2.1.7 Focus group discussion 8

CHAPTER THREE

3.1 Population distribution parameters of NTFPs in Kalinchok 9

3.2 Prioritization of NTFPs 9

3.3 Prioritization of NTFPs in Kalinchok 9

3.4 Threat analysis 10

3.5 RVA of NTFPs in Kalinchok 11

CHAPTER FOUR

4.1 Trade and trading pattern of NTFPs in Kalinchok 12

4.2 Marketing status/trade value of NTFPs in Kalinchok 12

4.3 Trading pattern of NTFPs 13

CHAPTER FIVE

5.1 Potentiality for enterprise development in Kalinchok 14

5.2 Potentiality for enterprise development in Kalinchok 14

5.3 Potential markets of the value added NTFP products 15

5.4 Value addition techniques of NTFPs 16

5.5 Processing technology 16

CHAPTER SIX

6.1 Biological sustainable harvesting 18

6.2 Harvesting impact on population dynamics 18

6.3 Establishing sampling areas 19

6.4 Developing a raw material sourcing plan 20

CHAPTER SEVEN

7.1 Conclusion 22

7.2 Recommendations 22

References 24

Lists of Tables

Table 1: Class distribution of NTFPs in different sites 6

Table 2: Matrix preference ranking 7

Table 3: Criteria for RVA 7

Table 4: Class distribution of NTFPs in Kalinchok 9

Table 5: Matrix preference ranking of NTFPs in Kalinchok 10

Table 6: RVA analysis of NTFPs in Kalinchok 11

Table 7: Marketing status/trade value of NTFPs in Kalinchok 12

Table 8: Potentiality for enterprise development in Kalinchok 14

Table 9: Potential markets for NTFPs products 15

Table 10: Value addition techniques of NTFPs 16

Table 11: Processing technology and application 16

Table 12: Rapid assessment of harvesting effects on population dynamics 19

Table 13: Recommended optimal harvesting practices for sustainable NTFPs

product use 20

Lists of Boxes

Box 1: Checklist to assess harvesting sustainability of forest products 18

Box 2: Check list for raw materials sourcing plan 21

List of Map

Map 1: Map of study area 5

 Abbreviations and Acronyms

ANSAB: Asia Network for Sustainable Agriculture and Bioresources

BDS-MaPS: Business Development Service: Marketing Production and
Services
CFUGs: Community Forest User Groups
ECARDS: Ecology, Agriculture and Rural Development Society
FUGs: Forest user groups
Ha: Hectare
HMG: His Majesty's Government
IUCN: International Union for Conservation of Nature and Natural Resources
M: Meter
MAPs: Medicinal and Aromatic Plants
MIS: Marketing Information System
MPR: Matrix Preference Ranking
NSCFP: Nepal Swiss Community Forestry Project
NTFPs: Non Timber Forest Products
RVA: Rapid Vulnerability Assessment
SNV: The Netherlands Development Organization
Sp: Species
VDC: Village Development Committees
WGs: Women Groups
 CHAPTER ONE

1.1 Introduction
The diverse geography and climate of Nepal has rendered it a unique land of
Non Timber Forest Products (NTFPs) along with other natural resources.
NTFPs have been welfare, subsistence or livelihood commodity for the people
residing in rural mountainous areas of Nepal since long. The high mountain
NTFPs are highly praised for high potency and organic nature, hence they
fetch higher prices.
The importance of Medicinal and Aromatic Plants (MAPs) has increased
progressively over the last two decades. Herbal remedies are increasingly
becoming mainstream consumer products manufactured by multi-national
companies amongst other, and sold in super market chains and in a variety of
other outlets, globally. Food supplements, cosmetics, fragrances, traditional
cuisine, dyeing and coloring agents are just a few of the application where
NTFPs are finding increasing use by the day. As a result there is growing
demand of Nepalese MAPs and other NTFPs for these purposes.
In spite of all advantages, the government is still not able to harness the full
potential of NTFPs for the welfare of rural communities. The major constraints
for such situation are considered to be low capital investments both by the
government and private sectors for the overall promotion of NTFPs including
commercial cultivation, enterprise development and the perpetual marketing
of quality products; government’s unclear investment policy, lack of proper
documentation on species availability (or bio-prospecting) and uses and poor
awareness among public on its values.
Northern region of Dolakha harbors rich source of NTFPs diversity. Local
communities have been using NTFPs as food supplements, medicines, dyes,
fiber, clothing, construction, energy and support to farm nutrients and
livestock feed. However, they are not benefited from the resources due to the
lack of knowledge on the resources, their market value and their potentiality
for cultivation and value addition.
Conservation initiatives through sustainable use of NTFPs would uplift
livelihood of local communities if: a) communities take on increased
responsibility for management of forest resources; b) ecological monitoring
and biologically sustainable harvesting practices are developed; c)
communities have greater access to market linkage; d) communities sustain
forest based enterprise with equal benefit sharing mechanism and e)
communities adopt both indigenous and scientific knowledge for appropriate
management systems.
To address the current needs, one way would be the initiation for the
commercial cultivation of valuable NTFPs, their processing at local level and
market linkage of raw or processed products via community initiatives. It is
essential that women groups (WGs), underprivileged groups and community
forest user groups (CFUGs) are included in such a model. The women and
underprivileged groups should be transformed to skillful entrepreneur and
CFUGs, a commercial entity taking the responsibility of resource conservation
and management. The semi processed and processed NTFPs products
produced from such enterprises should be market linked after the value
addition at the local level thereby benefiting the local communities.
In this aspect, the proposed study would be justifiable in terms of linking local
livelihood with resource conservation and management, initiating community
based forest enterprise and its linkage to market through product promotion.
It would certainly assist in conserving the biodiversity of the Northern Dolakha
and assist in livelihood of the local communities, which is the ultimate goal set
up by Ecology, Agriculture and Rural Development Society (ECARDS)-Dolakha.

1.2 Objectives
The overall objective is to perform the action research on inclusive model of
forest based enterprises development and documentation in Kalinchok.
The specific objectives are as follows:
1. To prioritize NTFPs on the basis of trade value and threat
2. To identify NTFPs products that can be value added locally
3. To assess the current market status of NTFPs at local level
4. To document the different inclusive model of forest based enterprises that
can be set up
5. To recommend steps to be followed by community for sustainable
harvesting of NTFPs
1.3 Study area
Kalinchok Village Development Committees (VDC) of Northern Dolakha was
chosen for the study.
A great variety of vegetation types is present, ranging from sub-tropical forest
to alpine meadows in the studied areas.
The ecological zones of the study area encompass the following forest and
vegetation types:
1. Chir Pine-Broadleaved forest
The chir pine-broadleaved forest occurs between 1000-2000m. It is generally
composed of Pinus roxburghii, Quercus spp, Rhododendron arboreum, Lyonia
ovalifolia, Erythrina stricta and Schima wallichii. This forest type represents the
hygrophilic (humid) form of the chir pine forest.
2. Schima-Castanopsis forest
True representation of Schima-Castanopsis forest type in natural state is
scarce. Studies on the remaining vegetation have revealed that this zone may
be identified as Schima-Castanopsis zone. Schima wallichii is associated with
Castanopsis indica at lower elevations (1000-1500m) and with Castanopsis
tribuloides at higher elevations (1500-2000m). However, in some areas both
the species of Castanopsis is found associated of Schima wallichii because
their range of altitudinal distribution is not sharply differentiated. Other
common associates of this forest are Rhododendron arboreum, Lyonia
ovalifoila, Eurya acuminata, Quercus sp, Juglans regia, Duabanga sp etc.

3. Alder forest
Alder (Alnus nepalensis) forms a dense forest in the sub-tropical region (1000-
2700m) along moist sites such as ravines, river banks and fresh landslides with
excessive moisture. Alder trees have proved to be useful for restoring fresh
landslides and also for providing green cover of abandoned terraces. The role
of Alnus nepalensis supported closely by Eupatorium adenophorum as a
pioneer species has been significant in the restoration ecology of Nepal.

4. Himalayan Oak-Laurel forest

This forest type occurs between 2000-2500m on the south of the main
Himalayan range. This forest is characterized by the occurrence of oak
(Quercus lanata) and a number of evergreen lauraceous trees as Litsea sp,
Dodecadenia sp, Neolitsea sp, Lindera pulcherrima, Persea sp, Symplocos sp
and Lyonia ovalifolia.

5. Mixed Rhododendron-Maple forest

This forest is also known as mixed broadleaved forest lying between
elevations of 2600-3000m. Rhododendron arboreum and species of maple
(Acer campbelli and A. pectinatum) remain prominent in this forest type. A
number of laurels and other evergreen shrubs as Symplocos spp. and Ilex spp.
form the second storey; in some areas, Tsuga dumosa are found in this forest
type.

6. Temperate Mountain Oak forest

The oak forest (Quercus semecarpifolia) occupies montane level at altitude of
2500-3000m. On humid slopes, oak is associated with hemlock (Tsuga
dumosa), rhododendrons and maples. Some understorey layers of laurels
(Neolitsea sp, Lindera pulcherrima and Dodecadenia grandiflora) occur in this
forest.

7. Fir-Hemlock-Oak forest
It occurs in lower sub-alpine and upper temperate zones at 2800-3400m,
characterized by the dominance of silver fir (Abies spectabilis) mixed with
hemlock (Tsuga dumosa) on the northern aspects and with oak (Quercus
semecarpifolia) on southern aspects.

8. Rhododendron forest
Rhododendron arboreum forest is widely found in coniferous forest zone with
scattered Abies spectabilis layer above it. In some areas, Arundinaria sp. occurs
as a shrub layer and herb layer is hardly developed. This forest ranged from
2900-3300m.
While R. campanulatum forest is found frequently as a second layer of Abies
spectabilis forest near its upper limits, but generally this formed dense thicket
above the timber line. The second and shrub layers are lacking. In the herb
layer, mosses dominate in most cases. This forest occurs between 3000m to
3700m.
R. barbatum is localized forest to stream-side or concave slope in Abies
spectabilis forest.
9. Silver Fir forest
Pure fir forests are generally found at 3000-3600m. Fir forest is associated
with a number of rhododendrons as Rhododendron arboreum, R. barbatum, R.
hodgsonii, R. campanulatum as the second layer of the canopy. A small stature
bamboos Arundinaria spp. Occur at the forest destruction sites. Herbs such as
Meconopsis sp, Rosa sp, Primula sp, Anemone sp, Androsace sp, Geum sp cover
the grassy floor.

10. Birch-Rhododendron forest

Birch-rhododendron association is regarded as the tree line vegetation in
Nepal Himalaya. Massive stands of birch (Betula utilis) are formed on north
facing, shady slopes and ravines with an understorey of rhododendrons,
Sorbus sp and maples (Acer sp). Birch forest is often mixed with fir trees rising
above the birch canopy.
The associated rhododendron species include, Rhododendron campanulatum,
R. campylocarpum, R. hodgsonii. Small stature bamboos as Arundinaria maling
form an important component of ground cover with herbs as Primula sp,
Rheum sp, Aconitum sp and Swertia sp.

11. Dry alpine scrub

This forest type occurs from elevations 4000-4500m. The forest is dominated
by dwarf and prostrate junipers (Juniperus recurva and Juniperus indica) along
with other xerophyllous plants as Ephedra gerardiana, Cassiope fastigiata,
Potentilla fruticosa, Lonicera sp and Berberis spp (Berberis erythroclada, B.
insignis and B. wallichiana).
12. Moist alpine scrub
Alpine meadows are rich in species of Primula and Meconopsis. Drier sites are
occupied by sedges, grasses and Ephedra sp. While, moist sites are occupied
by some commercially important medicinal herbs as Nardostachys grandiflora,
Neopicrorhiza scrophulariiflora, Aconitum sp, Selinum tenuifolium, Swertia sp,
Potentilla sp, Fritillaria cirrhosa etc.

The study area is inhabited by a variety of indigenous communities. Majority

of the inhabitants of the study area are Thamis followed by Tamangs, Chhetris
and Brahmins.
Map 1: Map of study area
Location of study area
 CHAPTER TWO

2.1 Methodology
The current work was completed in four phase viz. primary data collection,
secondary data collection, data analysis and report writing. Primary data was
collected from the field while secondary data was compiled from various
other related documents.

2.1.1 Key informant survey and resource mapping

Information about the availability, current status and use of NTFPs were
collected from CFUCs. Discussions were held with key informants for
identification and listing of available NTFPs, their priority ranking and for
suitable site selection for the study.

2.1.2 Identification of NTFPs

NTFPs were identified visually on the basis of researcher's knowledge and with
the help of local key informants. Unidentified species were identified
consulting with the reference literatures as HMG/Department of Medicinal
Plants, 1976; Stainton and Polunin, 1984; Stainton, 1988; Shrestha, 1998; Lama
et al. 2001; Manandhar, 2002 and IUCN, 2004. Documentation of all available
NTFPs was carried out according to Press et al., (2000).

2.1.3 Data processing and analysis

Data obtained from the field were analyzed to find out population distribution
parameters, matrix preference ranking (MPR), rapid vulnerability assessment
(RVA), potentiality for value addition and market linkage, etc.

2.1.4 Population distribution parameters

Distribution of NTFPs parameters were categorized in following ways:
Table 1: Class distribution of NTFPs in different sites
Frequency Relative Frequency
High Medium Low High Medium Low

>75 31-74 <30 >15 5-15 <5

 Population density/ha Relative density

>800 300-800 <300 >15 5-15 <5

Source: Pyakurel (2005)

2.1.5 Prioritization of NTFPs

Matrix preference ranking (MPR) was used to find out most preferred NTFPs.
By using this tool, the most preferred NTFP species were identified from
forests of each VDC for the detail study. The criteria of preference were made
by the users, availability of the resources and potential for value addition.
Moreover, the prioritization criteria of other development organizations like
NSCFP, SNV, ANSAB, BDS-MaPS and matrix ranking criteria have been
thoroughly examined to attain the set objectives with proper justification.
Table 2: Matrix preference ranking
SN Criteria Scale and value
1 Market demand High (3), moderate (2), low (1)
2 Margin/profit High (3), moderate (2), low (1)
3 Availability (in time ) Almost always (3), occasional (2), seasonal rare
(1)
4 Geographical Widespread (3), moderate (2), low (1)
distribution
5 Conservation status High (3), moderate (2), low (1)
6 Potential for cultivation High (3), moderate (2), low (1)
7 Regenerative potential High (3), moderate (2), low (1)
8 Contribution to income High (3), moderate (2), low (1)
9 Gender impact Only women (3), both men and women (2),
only men (1)
10 Potential for value High (3), moderate (2), low (1)
addition
11 Processing technology Manual/local technology (3),
mechanical/expertise required (2),
sophisticated/foreign technology (1)
12 Ethnobotanical value Diverse uses (3), medium use (2), single use (1)

Source: Gurung and Pyakurel (2006) and Gurung (2007)

2.1.6 Rapid vulnerability assessment (RVA)
Rapid vulnerability assessment (RVA) method was used to collect information
to identify species, resources or sites that may be at risk of over exploitation.
It was developed as a quick way of collecting both scientific and indigenous
information about species and has been used to recommend whether or not
that resource species is suitable for harvest.
Table 3: Criteria for RVA
Potential for sustainable use
Criteria
Low High
Low abundance (1) High abundance (2)
Slow growth (1) Fast growth (2)
Slow reproduction (1) Fast reproduction (2)
Sexual reproduction only Both sexual and vegetative
Ecology
(1) reproduction (2)
Habitat - specific (1) Habitat - non specific (2)
High habitat diversity (1) Low habitat diversity (2)
High life form diversity (1) Low life form diversity (2)
Life forms Tree and shrub (1); herb (2)
Parts used Roots, rhizomes and bulbs (1); leaves, flowers, barks, fruits (2)
Harvesting Size/age classes not selected for harvesting (2); particular
methods size/age classes selected for harvesting (1)
Source: Watts et al., 1996; Cunningham, 1994, 1996a, 2001; Wong and Jenifer,
2001; Gurung and Pyakurel (2006) and Gurung (2007)

2.1.7 Focus group discussion

Discussion program was held at Kalinchok village with members of CFUGs,
ECARDS-Dolakha social mobilizers regarding the exchange of NTFPs based
activities conducted so far and their prospects for the future collaboration and
coordination.
Also, the interaction was held with NTFPs collectors and traders to discuss
about NTFPs farming, trading pattern and trade value at local level.
 CHAPTER THREE

3.1 Population distribution parameters of NTFPs in Kalinchok

Table 4: Class distribution of NTFPs in Kalinchok
S Botanical Name Frequency R. Densit R.
N Frequency y Density
1 Artemisia dubia Low Low High Low
2 Artemisia indica Low Low High Low
3 Arundinaria racemosa Low Low High Low
4 Berberis asiatica High Low High Low
5 Daphne bholua Medium Low High Low
6 Daphne papyracea Low Low High Low
7 Drepanostachyum
intermedium Low Low High Low
8 Edgeworthia gardneri Medium Low High Low
9 Eupatorium
adenophorum Medium Low High Low
10 Girardinia diversifolia Low Low High Low
11 Lycopodium clavatum Medium Low High Low
12 Paris polyphylla Medium Low High Low
13 Parmelia sp Medium Low High Low
14 Persea clarkeana Medium Low High Low
15 Potentilla fructicosa High Low High Medium
16 Rhododendron arboreum Medium Low High Low
17 Rubia manjith Medium Low High Low
18 Swertia chirayita Medium Low High Low
19 Valeriana jatamansii Low Low High Low
20 Viburnum mullaha Low Low High Low
21 Zanthoxylum oxyphyllum Medium Low High Low

3.2 Prioritization of NTFPs

The species were prioritized based on 8 principal criteria viz. (i) highly
demanded commercial species (ii) species having high market price (iii) having
potential for domestic value addition (iv) species available over wide
geographical range (v) species harvestable in short rotation period (vi) land
fertility requirement for species (vii) species importance in ethnobotany and
(viii) species conservation status.

3.3 Prioritization of NTFPs in Kalinchok

Prioritized NTFP species of Kalinchok for value addition and marketing linkage
and further assessment are Titepati (Artemisia dubia and A. indica), Chirayito
(Swertia chirayita), Allo (Girardinia diversifolia), Argeli (Edgeworthia gardneri),
Lokta (Daphne bholua and D. papyracea), Timur (Zanthoxylum oxyphyllum),
Satuwa (Paris polyphylla), Majitho (Rubia manjith) and Chutro (Berberis
asiatica). The details are given in table below:

Table 5: Matrix preference ranking of NTFPs in Kalinchok

SN Criteria⇒

Potential for cultivation

Contribution to income
Regenerative potential

Processing technology
Availability ( in time )

Ethnobotanical value
Conservation status

Potential for value

Market demand

Margin / Profit

Gender impact
Geographical
distribution

addition

Total
NTFP species
⇓
1 Artemisia dubia 3 3 2 3 3 3 3 3 2 3 2 3 33
2 Artemisia indica 3 3 2 3 3 3 3 3 2 3 2 3 33
3 Arundinaria 2 2 3 2 2 1 2 3 1 2 3 3 26
racemosa
4 Berberis asiatica 3 3 3 3 3 1 1 2 2 2 3 3 29
5 Daphne bholua 3 3 3 3 1 1 2 3 2 3 3 2 29
6 Daphne papyracea 3 3 3 3 1 1 2 3 2 3 3 2 29
7 Drepanostachyum 2 2 3 2 2 1 2 3 1 2 3 3 26
intermedium
8 Edgeworthia 3 2 3 2 2 3 3 2 2 3 3 2 30
gardneri
9 Elaeagnus parvifolia 1 1 2 2 3 2 2 1 2 3 2 2 23
10 Eupatorium 1 2 3 3 3 3 3 1 2 2 2 2 27
adenophorum
11 Girardinia 3 3 2 3 3 1 3 3 2 3 3 3 32
diversifolia
Lycopodium 3 3 2 2 3 1 2 2 2 2 3 2 27
12 clavatum
13 Paris polyphylla 3 3 2 2 3 3 3 2 2 2 1 3 29
14 Parmelia sp 3 3 3 3 3 1 2 3 2 1 1 3 28
15 Persea clarkeana 1 1 2 2 3 2 2 1 1 3 2 2 22
16 Potentilla fructicosa 1 1 3 3 3 3 3 1 2 2 1 2 25
Rhododendron 3 3 2 3 3 1 1 3 2 3 2 2 28
17 arboreum
18 Rubia manjith 2 2 3 3 3 3 3 2 2 2 1 3 29
19 Swertia chirayita 3 3 3 2 3 3 3 3 2 2 3 3 33
20 Valeriana 3 3 3 2 3 2 3 3 2 2 1 3 30
jatamansii
21 Viburnum mullaha 1 1 3 2 3 3 2 1 2 3 2 2 25
22 Zanthoxylum 3 3 3 2 3 3 2 3 2 3 2 3 32
oxyphyllum

3.4 Threat analysis

Rapid vulnerability assessment (RVA) analysis was carried out for the
prioritized NTFP species of Kalinchok VDC. RVA was conducted on the basis of
the following criteria: 1) ecology, 2) life form, 3) parts used and 4) harvesting
method.

3.5 RVA of NTFPs in Kalinchok

The most vulnerable NTFP species of Kalinchok VDC are Gurans
(Rhododendron arboreum, Timur (Zanthoxylum oxyphyllum), Mollo (Viburnum
mullaha), Bhulna (Persea clarkeana), Jhyau (Parmelia sp), Satuwa (Paris
polyphylla), Allo (Girardinia diversifolia), Malindo (Elaeagnus parvifolia), Nigalo
(Drepanostachyum intermedium and Arundinaria racemosa) and Lokta
(Daphne papyracea and Daphne bholua). The details are shown in table below:
Table 6: RVA analysis of NTFPs in Kalinchok
Criteria⇒
Mode of reproduction
Rate of reproduction

Harvesting method
Life form diversity
Habitat diversity

SN
Abundance

Parts used
Life form
Habitat
Growth

Score

NTFPs
⇓
1 Artemisia dubia 2 2 2 1 2 2 2 1 2 1 17
2 Artemisia indica 2 2 2 1 2 2 2 1 2 1 17
3 Arundinaria racemosa 2 1 1 2 2 2 2 1 2 1 16
4 Berberis asiatica 2 2 2 2 2 2 2 1 2 1 18
5 Daphne bholua 2 1 1 2 2 2 2 1 2 1 16
6 Daphne papyracea 1 1 2 2 2 2 2 1 2 1 16
7 Drepanostachyum intermedium 2 1 1 2 2 2 2 1 2 1 16
8 Edgeworthia gardneri 2 2 2 2 2 2 2 1 2 1 18
9 Elaeagnus parvifolia 2 1 2 2 2 2 1 1 2 1 16
10 Eupatorium adenophorum 2 2 2 1 2 2 2 1 2 2 18
11 Girardinia diversifolia 2 2 2 1 1 2 2 1 2 1 16
12 Lycopodium clavatum 2 2 2 1 2 2 2 2 2 1 18
13 Paris polyphylla 1 2 2 2 2 1 2 2 1 1 16
14 Parmelia sp 2 2 2 1 1 1 2 2 1 2 16
15 Persea clarkeana 2 1 1 2 2 2 1 1 2 1 15
16 Potentilla fructicosa 2 2 2 2 2 2 2 2 1 1 18
17 Rhododendron arboreum 2 1 1 1 2 2 1 1 2 1 14
18 Rubia manjith 2 2 2 1 2 2 2 2 1 1 17
19 Swertia chirayita 2 2 2 1 2 2 2 2 1 1 17
20 Valeriana jatamansii 1 2 2 2 2 2 2 2 1 1 17
21 Viburnum mullaha 2 1 1 2 2 2 1 1 2 1 15
22 Zanthoxylum oxyphyllum 1 1 2 2 2 2 1 1 2 1 15
 CHAPTER FOUR

4.1 Trade and trading pattern of NTFPs in Kalinchok

The local communities of the study areas depend on subsistence agriculture,
animal husbandry, trade labor and foreign employment for their livelihood
support. However, few villagers are engaged in the collection and trade of
NTFPs as seasonal and additional source of income.
The traded NTFPs/products and their trading pattern in the study areas are as
follows:

4.2 Marketing status/trade value of NTFPs in Kalinchok

Mostly the elder members of villages of Kalinchok VDC collect nigalo and
malingo culms from the nearby community forests. They process the culms
using traditional methods for making products like chitra, bhakari, dala and
doko. These products are either sold or barter with rice to the villagers of
other VDCs.
Similarly, they collect Lichens from the nearby forests and sell them to the
middleman at Charikot or Singhati.
They harvest the NTFPs, process locally and sell them to the road head traders
at Charikot or Singhati or sometimes sell directly to Kathmandu market.
Table 7: Marketing status/trade value of NTFPs in Kalinchok
SN NTFPs Products Trade value
1 Culm of Tite nigalo Chitra NRs. 150-160 per piece
(Drepanostachyum or barter with rice in
intermedium) other villages
2 Culm of Sano malingo Bhakari NRs. 100-110 per piece
(Arundinaria racemosa) or barter with rice in
other villages
3 Culm of Malingo Dala NRs. 40-50 per piece or
(Thamnocalamus spathiflorus barter with rice in other
and Yushania microphylla) villages
4 Culm of Sano malingo Doko NRs. 25-30 per piece or
(Arundinaria racemosa) barter with rice in other
villages
5 Rhizomes and roots of Raw/Crude Rhizomes-NRs.140 per
Sugandhawal (Valeriana form kg
jatamansii) Roots-NRs.105 per kg
6 Whole parts of Chirayito Raw/Crude NRs. 200-225 per kg
(Swertia chirayita) form
7 Argeli white skin (Edgeworthia Raw NRs. 40-50 per kg
gardneri)
8 Lokta bark (Daphne bholua and Raw NRs. 70-80 per kg
D. papyracea)
9 Jhyau (Parmelia sp) Raw NRs. 70-90 per kg

4.3 Trading pattern of NTFPs

1. Trading pattern of Malingo/Nigalo products
Collectors Value addition/processing or basketry in villages
Trade or barter to other villages
2. Trading pattern of herbs and NTFPs
Collectors Middleman Road head traders - Shinghati or
Charikot or directly to Kathmandu market
3. Trading pattern of Lokta bark/ Argeli white skin
Collectors Middleman Handmade paper enterprises at
Charikot or Kathmandu market
4. Jhyau (Lichens)
Collectors Middleman Road head traders - at Charikot or
Singhati Kathmandu market
 CHAPTER FIVE

5.1 Potentiality for enterprise development in Kalinchok

Forest based enterprises exist in various modalities, which can be outlined in
aspects of ownership structure, linkages to raw materials, target markets,
seasonality of operation, technological sophistication, management structure,
product types and similar other characteristics.
On the ownership dimension, 5 different modalities can be set up in
Kalinchok, they are as follows:
a) Sole enterprise,
b) Woman group enterprise,
c) Consortium of CFUGs enterprise,
d) Cooperatives and
e) Private limited company
In terms of linkages of raw materials, economic and enterprise activities are
based on raw materials drawn from the community forests and government
forests.
On the basis of the resource availability, processing technology, communities’
willingness and market linkage, the following are the potentiality for
enterprise development in the studied Kalinchok VDC:
5.2 Potentiality for enterprise development in Kalinchok
Table 8: Potentiality for enterprise development in Kalinchok
SN NTFPs/ Products Potentiality for enterprise
development
1 Lokta bark (Daphne bholua and 1. Collective marketing centre- A co-
D. papyracea), Argeli white skin operative model
(Edgeworthia gardneri), Allo fiber 2. Establishment of handmade paper
(Girardinia diversifolia) enterprise-FUG and private
entrepreneur partnership model
3. Establishment of Allo bark/fiber
processing enterprise- Women group
model
2 Titepati leaves (Artemisia dubia Processing of Artemisia oil from
and A. indica) Titepati leaves–Establishment of
 processing unit at Kalinchok village
3 Nigalo and Malingo culms Basketry and handicraft enterprises-
(Drepanostachyum intermedium, Household level enterprise
Arundinaria racemosa,
Thamnocalamus spathiflorus and
Yushania microphylla)
4 Titepati leaves, Timur leaves and Organic insecticides/pesticides
barks, Angeri leaves (Lyonia making -Household level enterprise
ovalifolia), Bulu leaves (Pieris
formosa), Ketuke (Agave
americana)
5 Sugandhawal (Valeriana 1. Establishment of multipurpose
jatamansii), Chirayito (Swertia nursery;
chirayita), Lek Timur 2. Commercial cultivation enterprises
(Zanthoxylum oxyphyllum), in private lands of the respective
Padamchaal (Rheum australe), villages;
Zanthoxylum armatum (Timur), 3. Formation of collection and
Satuwa (Paris polyphylla), Kurilo marketing cooperatives
(Asparagus racemosus), Argeli - Household level /FUG level
(Edgeworthia gardneri), Mal Bans enterprise
(Bambusa nutans) and Amriso
(Thysanolaena maxima)
6 Flowers of Gurans Juice and herbal drinks making-
(Rhododendron arboreum), fruits Women group model enterprise
of Mallo (Viburnum mullaha),
Bhaki amilo (Rhus javanica),
Malindo (Elaegnus parvifolia) and
Bhulna (Persea clarkeana)
7 Seeds of Kholme/ Kharane Edible oil expelling- Women group
(Symplocos pyrifolia/ S. model enterprise
ramossissima)
8 Ban mara (Eupatorium Bio briquette making- Women group
adenophorum) and Titepati model enterprise
(Artemisia spp.)
5.3 Potential markets of the value added NTFP products
The enterprise models and the NTFPs products to be value added are
designed with the motive of markets linkage assurance focusing basically at
the local level consumption.
Table 9: Potential markets for NTFPs products
SN Specific products Potential markets
1 Allo fiber/Allo thread Clothes weaving enterprises of Kathmandu
2 Amriso broom Local markets/ Household level
3 Argeli white skin Handmade paper enterprises at
Kathmandu
4 Bio briquette Hotels and restaurants of Charikot or
Kathmandu
5 Crude herbs (Sugandhawal, Roadhead traders of Singhati and Charikot
Chirayito, Padamchaal, or Herbs and herbal products traders of
Satuwa, Kurilo etc.) Kathmandu
6 Edible oil Local markets/ Household level
7 Essential oils (Artemisia oil Various essential oils traders/exporters and
and Abies oil) health care herbal products manufacturers
at Kathmandu
8 Handicrafts and basketry Basketry: Porters/ local
markets/Household level
Handicrafts: Souvenir shops
9 Herbal incense Local markets/ Household level
10 Juice (Mollo juice and Hotels and restaurants in Charikot or
Gurans Juice) Kathmandu market
11 Lokta bark Handmade paper enterprises at Charikot
or Kathmandu
12 Organic Farmers/ Household level
insecticide/pesticides
13 Seedlings and saplings of Other VDCs or user groups for cultivation /
multipurpose herbs and Household level
NTFPs
14 Timur fruits Singhati and Charikot markets or
Kathmandu market
5.4 Value addition techniques of NTFPs
Value addition techniques at local level includes; cleaning, drying, grading,
packaging and improved marketing.
Commonly practiced methods of value addition of NTFPs and their techniques
are presented below:
Table 10: Value addition techniques of NTFPs
SN Type of value Techniques
addition
1 Drying Sun drying: For medicinal herbs
Shade drying: For aromatic plants
2 Cleaning Cleaning with water for roots/rhizomes, using
clothes and brushes for other parts
3 Grading Grading on the basis of the quality
4 Packaging Packaging in polythene bags ensuring free of
moisture
5 Improved trading Adopting collective bargaining

5.5 Processing technology

Simple and locally available technologies are more sustainable than the
imported and more sophisticated ones. Through the technological
interventions there is a scope to improve the quality, reduce the loss, increase
the efficiency of operation and thereby reduce the cost.
Technological improvements can also be made building on the traditional and
existing technologies to match the current market requirement.
Few processing technology on NTFPs that can be adopted in Kalinchok are as
follows:
Table 11: Processing technology and application
SN Technology Examples of application
1 Bio briquette Banmara, titepati
2 Compacting Chirayito
3 Debarking Lokta bark and argeli white skin
4 Drying (traditional sun drying, All medicinal and aromatic plants
fire drying, shade drying and
improved solar drier)
5 Extraction of juice
6 Fiber extraction
7 Grinding and mixing
8 Oil expeller
9 Packaging
10 Paper making
11 Steam distillation
12 Weaving (Shuttle loom and
pedal operated spinning)
Mollo, bhulna, bhaki amilo
Allo and ketuke
Herbal incense
Fixed oil extraction from
kholme/kharane
All raw NTFPs, value added products
and finished products
Lokta bark and argeli white skin
Essential oils from aromatic plants
(Titepati, talispatra/ gobre salla etc.)
Allo clothes
 CHAPTER SIX

6.1 Biological sustainable harvesting

Biological diversity and sustainability occur at several levels: a) genes b)
population c) community and d) ecosystem
Harvesting can impact all of these levels. Since the effect of harvesting are
superimposed on the natural population dynamics, a comparison between
natural and harvested populations will provide enough information to assess
sustainability.
To determine biologically sustainable harvesting levels start by collecting
community knowledge on particular species. It is important to know:
a) The current level of harvesting
b) The area where it is harvested
c) The amount traded
d) The various harvesting methods
e) The season, percentage and parts of plant harvested
If the species is traditionally collected, indigenous knowledge provides
information on sustainable harvesting levels. Less information on
sustainability exists for products that are not traditionally collected.
Establish sampling areas for both traditionally collected and non- traditionally
collected products. Sampling areas provide biological information on the
collected natural products.

Box 1: Checklist to assess harvesting sustainability of forest products

9 knowledge on the natural distribution of the species
9 frequency of occurrence or abundance
9 population structure (age/size/class distribution)
9 dynamics of the species (growth and reproduction rates)
9 variation among habitats
9 role within the ecosystem

6.2 Harvesting impact on population dynamics

Forest products harvesting can have short and long term effects on the plant,
ecosystem and overall biodiversity. Harvesting impacts on one population can
cause ecologically unsustainable conditions for other species and the
ecosystem structure.
Sustainability must be viewed holistically. Immediate short-term effects of
harvesting may be seen in the growth rate or reproduction capacity of the
plant, while ecosystem changes may take longer to materialize.
To distinguish short and long term effects of harvesting on population
dynamics, monitoring is done at two stages:
• Rapid assessment of the immediate short term impact of harvesting on
current population structure and
• Long term change in population dynamics that can be monitored from
sampling areas
Harvesting effects on population dynamics vary by the classification of plants
(annual or perennial), plant parts that are harvested and how it is harvested.
For a rapid assessment, monitoring focuses on the life stage being harvested.
Table 12: Rapid assessment of harvesting effects on population dynamics
Life stage Effect of Immediate impact
harvested harvesting
Annual herb Destruction of If harvested before fruit/seeds are
before fruiting reproductive adult produced and disseminated then only
or seeding those plants that escape harvest will
supply seeds for next generation
Herbaceous May result in Reproductive capacity severely
perennial (roots destruction of affected
or rhizomes) reproductive adult
or underground
storage tissue
Woody If too many leaves Lack of seeds and propagation
perennial are constantly
(leaves) juvenile removed, it may
not reach
reproductive
maturity
Woody Increased mortality Size distribution, growth, health and
perennial due to disease as a reproductive activity may be altered
(leaves) result of damage
reproductive
adults

6.3 Establishing sampling areas

Sampling areas provide information on the distribution and abundance of
forest products and the impact of harvesting on the plant’s population
dynamics. Sampling areas are also an important part of biological monitoring.
To determine the long term impact of harvesting on population dynamics,
permanent plots must be established. Trials that measure the effect of
different harvesting levels and methods are also helpful.
Sampling areas must be monitored for years twice at a minimum, to learn
how harvesting effects overall biodiversity.
Sampling areas help to:
- establish rotational harvesting schedules
- identify optimal harvesting times and methods
- get community members involved in hands on biological monitoring
- devise more accurate community resource management plans
Table 13: Recommended optimal harvesting practices for sustainable NTFPs
product use
Parts Optimal Optimal Optimal % of Optimal
harvested harvest rotational plants not harvesting
season interval harvested methods
Rhizomes with July- 3-5 years At least 20% Whole plants
roots October plants pulled from
undisturbed bushy areas and
dug out carefully
with the tool,
kuto, from open
grasslands
Fruits July- 1-2 years At least 20% Fruits/fruits with
September fruits stalks are
undisturbed detached from
stem using
sickles or bare
hands
Leaves/needles July- 1 year At least 30% of Leaves hand
October leaves left on picked or cut
plant with scissors
Flowers May- 1-2 years At least 30% of Flowers hand
August flowers left picked or cut
undisturbed with scissors
Barks May- 3-5 years At least 75% Bark pulled from
August bark left plants with the
undisturbed/For help of sickles or
debarking Lokta knife/khukuri
bark and Argeli
white skin the
stem should be
cut at least 15-
18 cm above
the ground
Aerial parts July- 2-3 years At least 40% Aerial parts cut
October plant left with scissor or
undisturbed khukuri

6.4 Developing a raw material sourcing plan

After identifying the raw material sources, prepare a sourcing plan to estimate
the raw material flow in relation to the enterprise. The sourcing plan should
ensure a reliable supply of raw materials.
Categories the area in terms of:
• Ecosystem (forest, pasture)
• Raw material
• Legal control (private, community or government owned)
• Quality
• Distance from the enterprise
• Accessibility
Prepare a map illustrating the origins of raw materials. Assess potential risks
associated with each location. The final estimate should be able to account for
potential risks. Consider that labor may not always be available for collection
and transportation activities. Assess the seasonal migration situation to
minimize any problems resulting from a labor shortage. Likewise, consider the
seasonal conditions of the raw material base.
It is important to have good relations and communication with respective
suppliers.

Box 2: Check list for raw materials sourcing plan

9 resource supply areas
9 raw material type and quality
9 quantity by season
9 storage facility
9 legal obligations/ permits
9 transportation arrangements
9 labor supply management
9 agreements with suppliers
9 risk and strategies
9 working capital requirements
 CHAPTER SEVEN

7.1 Conclusion
The study area harbors rich diversity of NTFP resources. However, most of the
local communities of the study areas are unaware about the use and benefits
of NTFPs available in the nearby forests and their farm lands except for fuel
wood and fodder.
Assessment of forest based enterprises development in Kalinchok VDC
revealed that there are tremendous potentialities for the cultivation,
harvesting, value addition and marketing of prioritized NTFPs. The local
communities are more curios for the promotion and value addition of NTFPs
which would support their livelihood.
Enterprise development potentialities assessment in Kalinchok VDC revealed
that there are immense potentialities of enterprise set up for the product lines
as handmade paper, allo thread, bio-briquette, edible oil expelling, herbal
drinks/juice making, handicrafts and basketry, organic insecticide/pesticide,
cultivation of NTFPs, collective marketing centre for crude herbs and NTFPs
and essential oils extraction (Artemisia oil and Abies oil) in different villages of
Kalinchok VDC.
For genesis, operation and growth of forest based enterprise in Kalinchok
VDC; a biologically sustainable harvesting mechanism should be prepared for
each community forest and forests within government managed teritory.
Moreover, some factors that contribute to or hinder the genesis, operation
and growth of enterprises should be taken into account. These include:
awareness raising, technical assistance, financial support, marketing support,
marketing outlets, community characteristics, natural resource base,
technology, policy factors, enterprise consequences and natural resource
conservation.
In conclusion, the communities’ motivation towards entrepreneurship,
institutionalization of user groups (CFUGs, WGs, etc.) and regulatory
mechanisms for sustainable harvesting of NTFPs would definitely create the
income generating opportunities and would assist in the conservation of
biodiversity in Kalinchok.
7.2 Recommendations
The local communities play a crucial role for the conservation and sustainable
utilization of forest resources including NTFPs. Conservation and sustainable
management of the forest resources are the ever raised issues, but why and
how to conserve and manage are the big questions challenging ever.
Therefore, the following steps are recommended for addressing conservation
of forest resources and livelihood issues of local communities in Kalinchok
VDC:
1. Awareness programs (workshops, exhibitions, exposure visits and
demonstration of the products) on the importance of NTFPs; conservation
and sustainable utilization, cultivation and harvesting at local level need to be
conducted.
2. Capacity building/strengthening the concerned CFUGs / WGs on
institutional development, governance/equity, fund mobilization, financial
management, record keeping, benefit sharing mechanism etc. should be
initiated.
3. Field based training package on NTFPs promotion; time and technique of
collection, local processing technology, storage, quality control, packaging,
labeling, and cultivation of major NTFPs should be conducted.
4. Development of biological sustainable harvesting system; block rotation
system preferable for harvesting/ participatory monitoring system should be
prepared for each user groups.
5. Detailed assessment of the potential enterprises that can be set up in
Kalinchok VDC should be conducted in collaboration with various user
groups.
6. Feasibility study on market linkage, technology transfer, equipments and
availability of skill manpower should be conducted for each product line.
7. Micro-credit facilities should be provided for the initiation of small scale
enterprises and financial and operational support should be provided for the
medium scale consortium enterprise/ cooperative model.
8. Initiation for the management and conduction of pilot model enterprise
preferably, handmade paper; edible oil and allo fiber processing.
9. Formation of committee/organization for providing necessary technology,
seeds/seedlings to farmers.
11. Establishment of marketing information system (MIS) on NTFPs at Singhati
or at Charikot.
12. Formation of collective marketing centre / cooperative for marketing
NTFPs/NTFPs products in Singhati or at Charikot.
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