FPE 701.

Non-Timber Forest Products

Resource Persons:
Professor Dr. Abhoy Kumar Das
&
Professor Dr. Ishwar Chandra Dutta
I.O.F. , Pokhara
MAHENDRA CHAUDHARY
TRAINING OFFICER
WRTC, Pokhara
Kedar Paudel, Under Secretary
RFD, Pokhara
Bishnu Prasad Acharya
A.F.O. Palpa, Member, NFA
Mahendra Singh Thapa
Officer, NEST, Pokhara

Compiled By:
Mr. Laxmi Raj Joshi

M.Sc. in Forestry

First year, 2067

Institute of Forestry

Pokhara

(2010-2012)
Unit 1: Introduction, Classification and Uses of NTFPs

What are NTFPs?

The term 'non-timber forest product' includes all biological materials other than timber which are
extracted from forests for human use.
• products of biological origin other than wood derived from forests, other wooded land and trees
outside forests that may be gathered from the wild or produced in forest plantations, agroforestry
schemes and from trees outside forests
• All utility products of plant, animal and mineral origins except timber obtainable from forests or
afforested / domesticated land areas are termed as Non-Timber Forest Products (NTFP) or Non-
Wood Forest Products (NWFP)/Minor Forest Products (MFP). Services for tourism & recreation
including wildlife watching are also attributed to MFP resources in the modern concept.
(M.P. Shiva, 1998).
• According to the broad definition listed above - NTFP could be just about anything removed from
state forest land. Practically speaking, however, NTFP are plants or plant parts that have perceived
economic or consumption value sufficient to encourage their collection and removal from state
forests.

Importance
 Non Wood / Non Timber / Minor Forest Products had been considered in the past, secondary in
importance after timber.
 They have been referred to as `minor' in the past because revenue earning from them as compared
to timber was relatively low.
In Past
 Used to consider minor in terms of revenue
 Secondary importance than timber
 Remains confined to local economics
 Only few species entered in trade/marketing channel-inadequate statistics

In Recent Years
 Have attracted global interest
 Receiving increasing recognition with facts
 Providing important community needs for improved rural livelihood

Food security/nutrition
 Generate employment and income
 Opportunity for NTFP based enterprising
 Contribute foreign exchange and earnings
 Support biodiversity and other conservation objectives

In future
Following issues are of priority to be considered for further development of this sector
 Need to give more importance
 NTFP-Oriented forest management
 NTFP incorporation in CF
 More research and study towards domestication of wild species
 Conservation need for gene protection
 Cultivation, value addition, income generation activities

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  Rural/poor/disadvantaged group involvement, industrial growth
 Enterprising, cooperatives, market information, legal/policy issues
 Sustainable harvesting etc
Moreover, NTFPs often remained confined to local economies and very limited knowledge existed
about them and that too in dispersed and localized pockets.
 Only a few NTFP species entered the trade or marketing channels. These products too, were
inadequately and inappropriately featured in statistics.
 In Nepal, Jaributi refers to a group of NTFP collected from the wild and traded in India as raw
materials for industries related to pharmaceuticals, food, beverages or perfumes.
 The trade volume is enormous but for the most part remains invisible.
 The most important NTFP of Nepal is medicinal and aromatic plants, lokta paper, resin and
turpentine.
 Other important NTFP include sal seed, katha and cutch, sabai grass, bamboo and cane.

NTFPs Category:
Plants Origin Animal Origin Mineral Services Others
Origin

 Edible Plants  Ornamental,  Mica,  Tourism, Some leaves for

products litters,  sand,  Recreation making plates and
 Spices  handicrafts,  gravel,  Wildlife bowls, Beads for
 Medicinal toys etc  other mineral watching etc Ornament
plants  Honey and
 Aromatic Bees wax
plants  Lac and
 Fatty oils Shellac
 Gum and  Tusser and
Resin other silk
 Tan/Dyes  Insects and
 Fiber and animals
Flosses  Hides, Skins,
 Bamboo Feather
 Canes  Horns, Bones,
 Fodder and Shells, Musk
forage
 Briquette
 charcoal
 Bidi wrapper
 Other leaves

Non-Timber Forest Products include:

 Edible plants: Food, Edible oils, Spices, Fodder, Other edible plants
 Edible animal products: Terrestrial animals, Animal products, Fish and aquatic invertebrates,
Other edible animal products
 Non-edible plant products: Rattan, Bamboo, Sustainably produced wood, Ornamental plants,
Chemical components, Other non-edible plant products
 Non-edible animal products: Insect products, Wildlife products and live animals, Other non-
edible animal products
Medicinal products:
All medicinal products

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  Charcoal, Briquette Making; Bidi Wrapper Leaves and Bidis; Other Leaves For Platters, Plates,
Bowls, Beads For Ornaments and Decoration; Saponin Yielding Plants and Marking Nut etc.
 NTFP of Animal Origin: Honey; Bees Wax; Lac and Shellac; Silk, Insects, Animals, Hides, Skins,
Feathers, Horns, Bones, Shells and Ivory, Musk; and Others.
 NTFP of Mineral Origin: Mica, Sand, Gravel and Other Minerals.
 Services: Tourism, Recreation, Wildlife Watching etc.

NTFP Classification:
Minor Forest Products/NTFPs/NWFPs are forest usufructs obtained from fruits, flowers, leaves, twigs,
bark, root and wood of plants (except timber) and other products from animal and mineral origins. They
are grouped into following twenty six categories as per the "Standard NTFP Classification and
Documentation Manual." (M.P. Shiva and R.B. Mathur, 1996).

Classification of NWFPs - examples of approaches used

Approaches:
International trade reporting: for example Customs and Exercise, tend to group resources according to:
 Product type (e.g. live plants, prepared beverages, animal fats, prepared bark products); or
 End use (e.g. chewing sponge or stick, cloth, edible leaves, wine, resin).
 Biodiversity inventories usually group animals and plants according to scientific names of family
and genera.
 Ethnobotanic studies classify according to local end uses (e.g. construction, edible, fuel, medicinal,
poisons).
 Foresters and forest-based assessments use groupings according to plant form and parts used (e.g.
non-wood tree parts, tree fruit, herbs, climbers, shrubs, etc.)
 Wildlife ecologists usually group according to the scientific family and size (e.g. insectivores,
primates, reptiles, rodents, ungulates).
 Land/resource managers sometimes group according to management characteristics (e.g. ease of
propagation or cultivation, accessibility, who collects it, for regular household consumption,
occasional use, for sale in local markets).
 Starting with the Oxford System of Decimal Classification (1954), other classification systems
including the most recent one proposed by the FAO (1995) have been closely looked into and a
comparative insight and anomalies of various systems are indicated in the following paragraph:

Oxford System of Decimal Classification (1954):

 First of all, Minor Forest Products appear to have found a place in classification for forestry in this
system `Forest Products and their Utilization'. It may be noted that only three categories were made
other ("Minor") Forest Products: Mineral Products; Vegetable Products; Animal products. This
could not put the entire information on NTFPs in one single canvas and did not receive
concentrated attention at one place
 Classification Referred In "The Indian Forest Utilization", FRI, Dehradun (1972)
 The various MFPs were grouped under nine categories. Bamboos, canes and grasses have been
clubbed together; Tans and dyes are combined in a single group; so also, drugs, spices, poisons and
insecticides form one group.
 NTFP classification system of FRI with certain modifications eleven categories has been made
improvement was envisaged with regard to two aspects indicated below :
 (i). Leaves have been classified separately from edible products, although leaves are edible in case
of many species.
 (ii). Lac has been given more importance but other animal products (like silk) are lumped in a
separate category `other products’.
 Forest Decimal Classification (IUFRO World Series Vol. 2 IUFRO, 1990)

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  Nine categories have been formed but they are basically part-based and not on the basis of uses;
besides Bark is put into a separate category, as also Fruit and Seed crops.
 However, following inconsistencies were still noted :
 (i) Bamboo and canes remain combined, grasses get neglected
 (ii) Edible species do not receive the required attention.
 (iii) Tans and dyes are not adequately represented.
 (iv) Medicinal plants, essential oil yielding plants, do not have a distinct category.
 Food & Agricultural Organization, (RAO,1991)
 Rao, (1991) under the auspices of FAO proposed a classification of NTFPs which is mainly
product-based where only six categories have been made, e.g.(i) Fibre products; (ii) Food products;
(iii) Medicinal plants & cosmetic plant; (iv) Extractive products; (v) Animal products other than
wood; (vi) Miscellaneous products.
However certain inconsistencies appear in this classification also. A few are mentioned below:
(i). Gums, resin, latex etc which are actually exudates, get combined in the same category with
products of different nature and form which are extracted e.g. Essential oils, Fatty oils , Tans & dyes.
(ii). Under the category of "oils and fats", many "essential oils" have been included.
 Food & Agricultural Organisation (WICKENS, 1991)
 Wickens (1991) proposed another system of classification in the year 1992 in which NTFPs have
been classified into three broad categories i.e. (i) Vegetal NWFPs; (ii) Faunal NWFPs
(iii) Forestry services.
It shows that an attempt was made to improve upon the hitherto existing classifications by
incorporating a separate category of "Forestry services".
However some anomalies persist e.g., `Wood' has been included with NTFPs; Bamboos and canes
do not receive adequate attention; some groups are use-wise and very large like `bio-chemicals'.
 Food & Agricultural Organisation (FAO, 1995) Recently, Chandrasekharan (1995) proposed a
more useful and balanced classification under four broad categories viz.,
 Live plants & parts of plants; (ii) Animal & animal products
 Prepared/manufactured products and (iv) Services
PROPOSED NEW NTFP CLASSIFICATION AND DOCUMENTATION MANUAL:
While keeping in view, various classifications of NTFP species proposed since 1954, efforts have
been made to evolve a standard NTFP classification and documentation manual after a long
exercise of holding discussions in a Workshop during January, 1996 and circulating draft
followed by another Workshop in November, 1996 attended by NWFP Chief from FAO, Rome
and NWFP Group Leader of IUFRO and other eminent Botanists and Foresters.
To make the documentation system worthy of being put on computer nine-subheads are provided
under each major head.
PROPOSED NEW NTFP SPECIES CLASSIFICATION:
 A new NTFP classification of the species in the biodiversity has been evolved for universal
adoption in the following two groups,
 Group I - relates to Commodities of NTFPs obtained from species/sources grouped in following
three sections according to nature, kind and use of the products obtained from NTFP species;
(a) NTFP species of Plant Origin b) Host NTFP species yielding products in association with
insects/animal and their parts (Here only a few items have selectively been chosen purposely as it
was envisaged to address NTFPs obtained in association with animals/insects and plants)
(c) NTFP items of Mineral Origin.
Group II - Services, Industrial use, afforestation antipolluted, adulterants, soil binder
plants, species recommended for inter-cropping etc.
Different categories of NTFPs have been alloted separate alphabets (A to Z) as shown below:
Commercial value of Important NTFPs and uses:

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Medicinal, Aromatic oil, Spices, Lac, Silk, Honey, Leaf, Flower, Fruit, Fiber, Flosses, Gums, Tans Dyes,
Resin, Edible oil, Fats, Wax, Sand, Gravel, Minerals, Services, Ethno-botanical knowledge and their
importance

Unit 2: NTFP based livelihood

Livelihood
 The definition of ‘livelihood’ has been extensively discussed among academics and development
practitioners
 Robert Chambers and Gordon Conway: ‘a livelihood comprises the capabilities, assets (including
both material and social resources) and activities required for a means of living’
 Ellis (2000) :‘the activities, the assets, and the access that jointly determine the living gained by
an individual or household’
 The common consensus that livelihood is about the ways and means of ‘making a living’
 It deals with people, their resources (land, crops, labor, knowledge, cattle, money, social
relationships, and so on), and their activities with these resources.
 The issues and problems of access and changing political, economic and socio-cultural
circumstances.
 It is also about creating and embracing new opportunities
 For gaining a livelihood, or attempting to do so, people have to cope with risks and uncertainties

The Origin of livelihood perspectives

 It is viewed as a critical response to the conceptualization of development as a process
 The dominant view was that rural residence necessarily implies reliance on farming as a means of
income.
 Rural areas were seen as primarily the production site for agriculture and rural development was
perceived as derivative of agricultural development.
 Policies for the development of rural areas focused solely on farming, and neglected other rural
economic activities.
 Paradigm of agricultural modernization, which advocates improving farm production through the
use of more and improved technologies and more financial investments. (Green revolution
approach)
 its top-down, ‘blueprint’ model of development
 a new paradigm of rural development emerged: one that takes a broader view on the rural
economy, incorporating economic activities other than farming, while highlighting the broad
diversity of rural development processes (Diversification of rural economy)

Livelihood diversification
 means adding new activities,
 These can include agricultural or non-agricultural work, work for one’s self or for an
employer, home based work or work at other places

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  The livelihoods approach is not just a response to modernization perspectives from which small
scale and peasant farming would gradually disappear.
o it focuses on ‘democratization’ of rural development practice (increasing emphasis was
given to people’s own activities)
 The 1980s saw the rise of so-called participatory approaches in (rural) development projects
Why livelihood
 For understanding poverty (dimensions, dynamics and persistence) and poverty reduction.
 Over a billion people of the world’s population – live in absolute poverty and poverty remains
widespread in both urban and rural areas.
 Poverty has been central to many development agencies’ (e.g. World Bank, national governments,
etc.) agendas
 The Millennium Development Goals include – the aim of halving acute poverty globally by 2015
 To achieve this target and internalize above mentioned scenarios

Sustainable Livelihoods Approach (SLA)

 The SLA helps to understand and analyze the livelihoods of the poor in order to improve the
effectiveness of livelihoods-related development assistance.
 It is generally seen as a successor to the Integrated Rural Development approach, and has
commonalities with contemporary Area-Based Development and Community-Development
approaches
Principles of SLA
 The SLA essentially comprises six core principles and a conceptual framework.
a. People Centered
Focus on perspectives, priorities and strengths of people - especially poor and vulnerable women/girls
and men/boys.
b. Holistic
Recognize that different factors and processes influence the livelihood opportunities and choices of
people and that people have multiple livelihood strategies in pursuit of multiple livelihood outcomes.
C. Dynamic

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 Poor people’s livelihood strategies can change rapidly with the shocks, trends and seasonality,
continually change.
d. Building on Strengths
 Focuses on people’s capabilities, based on their resource base and their capacities to act within
specific social, economic, political, ecological and cultural contexts.
 Start with an analysis of strengths rather than needs.
e. Macro-Micro Linkages
Consider the linkages between the two levels to inform more supportive policies and institutions.
f. Sustainability
Include analysis of environmental, social, economic and institutional sustainability.
Sustainable livelihood framework
 SLA is a visual description that includes the influences on livelihoods, resources and strategies
available, along with outcomes.
 The DFID Sustainable Livelihoods Framework is the first and is still the most widely recognized
and used SL framework
Components of SL Framework
 Livelihood Assets
 Vulnerability Context
 Policies, institutions and processes
 Livelihood strategies
 Livelihood outcomes

1. Livelihoods assets

Human capital

Physical capital

Natural capital
Poor

Natural capital
Social capital

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 Human Capital Natural capital
 Health
 Nutrition  Land and produce
 Education  Water & aquatic resources
 Knowledge and skills  Trees and forest products
 Capacity to work  Wildlife
 Capacity to adapt  Wild foods & fibres
 Biodiversity
Social capital  Environmental services

 Networks and connections Physical capital

o patronage  Infrastructure
o neighbourhoods o Transport - roads, vehicles, etc.
o kinship o secure shelter & buildings
 Relations of trust and mutual support o water supply & sanitation
 Formal and informal groups o energy
 Common rules and sanctions o communications
 Collective representation  Tools and techology
 Mechanisms for participation in decision- o tools and equipment for
making production
 Leadership o seed, fertiliser, pesticides
o traditional technology
Financial capital
 Savings
 Credit/debt - formal, informal, NGOs
 Remittances
 Pensions
 Wages

The Asset Mix

 Different households with different access to livelihood “assets”
o Livelihoods affected by: Diversity of assets, amount of assets, balance between assets
2. Vulnerability Context
3. This describes the environment in which people live.
4. People’s livelihoods and the wider availability of assets are fundamentally affected by critical
trends as well as by shocks and seasonality - over which they have limited or no control.
5. Shocks can be the result of human health, natural events, economic uncertainty and conflict and
crop/livestock health.
6. Transforming structures and processes influence the vulnerability context.
7. The vulnerability context in turn affects a household’s assets.
8. Shocks
a. Floods, droughts, cyclones b. Deaths in the family c. Violence or civil unrest
9. Seasonality
10. Trends and changes:
Population, Environmental change, Technolog, Markets and trade, Globalisation

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Vulnerability” Context

3. Policies, Institutions & Processes

The institutions, organizations, policies and legislation that shape livelihoods, both positively and
negatively.
Institutions
• political, legislative & representative bodies
• executive agencies
• judicial bodies
• civil society & membership organisations
• NGOs
• political parties
• commercial enterprises & corporations

Policies, Institutions & Processes

Policies
• of government at different levels
• of NGOs
• of interational bodies
Processes
• decision-making processes
• social norms & customs
• gender, caste, class
• language

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 Policies
Influence
Institutions
Processes

4. Livelihood Strategies
 These are the range and combination of activities and choices that people make/undertake in
order to achieve their livelihood goals.
 Livelihood strategies encompass productive activities, investment strategies and reproductive
choices, among other things.
 Livelihood strategies are adopted combining the assets they can access taking account of the
vulnerability context
 These strategies are supported or obstructed by policies, institutions and processes leading to
livelihood outcomes
5. Livelihood Outcomes
 Achievements of livelihood strategies.
 Individuals and households usually try to achieve multiple outcomes, which may include:
 more income
 increased well-being
 reduced vulnerability
 improved food security
 more sustainable use of natural resources
Livelihood outcomes feedback into household assets, with for example more cash income increasing
a household’s financial capital.

Vulnerability
Context Livelihood
Policies
Shocks
Influence Institutions Strategies
Seasonality
Process
Trends
Livelihood
Changes
Outcomes

Why Sustainable Livelihoods Approach?

 Identifies existing assets and strategies available to poor women and men and uses these as a starting
point

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  Helps keep the focus on poor people and their varied livelihood assets, strategies and outcomes
(rather than resources and activities)
 Builds on strengths as a means to addressing needs and constraints
 links between policy and institutional with issues through micro level realities
When to use the Sustainable Livelihoods Approach?
 Country programme strategy process or a local-level poverty or needs assessment
 Programme development (project level and productive or sector level )
 Project cycle (identification, design and appraisal, monitoring and evaluation )
 In the context of rural or urban development
How do you use the Sustainable Livelihoods Approach?
 participatory methods
 stakeholder analysis
 gender analysis
 institutional analysis
 value chain analysis
 cost benefit analysis
 environmental assessment
Process for Practical Livelihoods Analysis
Step 1: Select the sites
Step 2: Put together the team
Step 3: Collect secondary data
Step 4: Determine entry strategies
Step 5: Building the team.
Step 6: Initial assessment.
Step 7: Analyzing the information
Step 8: Making the linkages (1)
Step 9: Reflection, vision & prioritization
Step 10: Activity design and appraisal
Step 11: Making the linkages (2).
Step 12: Programme or project implementation.
Step 13: Participatory monitoring and evaluation.
Challenges and Lessons in using the S L Framework
1. Analysis too big and complex
Remain focused, use framework in a simplified manner, only carry out detailed analysis where the data is
of particular interest and importance
2. Analysis identifies too many possible entry points
Prioritization of possible entry points, start with a few and possibly expand later on
3. SL approach not widely understood by partners
Involve partners throughout all stages of SL analysis; initially encourage use of the SL approach in a
simplified manner
4. Sector-based government systems and professions militate against holistic analysis
Carefully select SL analysis team

NTFP and Rural Livelihood

• Medicinal and Aromatic Plants (MAPs) and other Non-timber Forest Products (NTFPs) are
traditionally & critically associated with the livelihoods of majority of the rural Nepalese populace.
• Their importance and economic, environmental and social potentialities have increased on several
fronts in recent years.
• Government of Nepal has recognized MAPs/NTFPs as one of the most potential sectors for rural
livelihood enhancement and poverty alleviation in the country.
• NTFPs have received high importance in Nepal’s forest policies and in overall development planning.

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• The Poverty Reduction Strategy Paper (PRSP), Interim Plan (2007/08-2009/10), new government’s
policy and programmes, the annual budget of 2008/09, manifestos of political parties, donor
documents, including country strategy papers and programme documents of bilateral projects and
INGOs, and more recently the documents of Community Forestry Users Groups (CFUGs) highlight
the importance of NTFPs in conservation, rural livelihoods and poverty reduction
• NTFPs are being given high emphasis in Nepalese publications such as the Journal of Forest and
Livelihoods, Hamro Ban Sampada, Kalpabriksha, Banko Janakari.
• In recent decades, with growing concern about conservation, together with rural poverty and
sustainable development, researchers, as well as conservation and development organizations, made
efforts to bring NTFPs at the centre of discourse (Belcher et al.2005, Subedi 2006)
• As a result, the governments of several developing countries, including Nepal, received pressure to
formulate policies that promoted NTFPs.
The reasons given for promoting NTFPs as against timber
• Although timber is found in surplus in many high altitude forests, it is inaccessible for the city
markets because of lack of road networks in many high mountain areas. In these places,
transportation of and trading in high-value NTFPs even in low volume are more cost-effective in
comparison to timber.
• Harvesting of NTFPs, particularly those of herb and shrub origins and also parts of trees is
ecologically less destructive as compared to the harvesting of trees themselves.
• Timber production needs relatively long time; whereas, NTFPs take shorter time to get a harvest
Generally, poor people who are dependent on forest cannot wait for long periods to get returns from
the management of their forests.
• The poor can have better access to NTFPs than to timber because FTFPs may be collected free of
cost in most of the Community Forests (CFs), while timber is sold.
STATUS AND ECONOMIC VALUE OF FOREST PRODUCTS IN NEPAL
• Paucity of information makes a comprehensive assessment of the economic value of forest products
in Nepal difficult (Subedi 2006, Dhungana and Bhattarai in this volume).
• A few micro-level analyses are available, but they are mainly focused on the overall condition of
forests or overall revenue generated from forest products, or both.
• For example, Kanel (2004) provides some information on community forestry and DoF (2005,
2006, 2007) compile information on the total royalties received through the formal trade in NTFPs
• The forestry sector’s contribution to the national Gross Domestic Product (GDP) is also based on the
formal trade, which lacks many aspects of economic valuation of products and services that are
generated from the forest.
• Nepal Foresters’ Association has undertaken a study to assess and recommend the valuation methods
in Nepal to give a more realistic assessment of contribution of forest sector to GDP of Nepal
• In Nepal, there are more than 700 plant species that have medicinal value, of which 238 are in active
use and 100 are traded
• The Government of Nepal has kept 30 species in priority, of which 12 are for commercial cultivation
and market promotion (AEC/FNCCI 2004, Luintel et al. 2004, Subedi 2006, Shrestha and Das
2008).
• A 1995 survey of producers, traders and processors of NTFPs operating from the eastern border of
the country to the mid-western town of Nepalgunj shows that a total of 100 entrepreneurs handled 42
thousand tons of over 100 different NTFP items, equivalent to USD26 million (Subedi, 1997).
• It is estimated that about 10,000 to15,000 tons of plant products of more than 100 species are
exported to India annually, i.e., 90% of total NTFP trade (Edwards 1996).
• Devkota (2006), by analyzing the royalty contribution of various forest products during fiscal year
2002-04, illustrates that the contribution of medicinal and aromatic plants was only 3.5%; that of the
rest of the non-timber products such as sand and gravel was 16.5% and that of timber and fuel wood
was over 80%.
• NTFPs are mostly extracted from forest because the domestication of NTFPs is at its infancy stage.

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• Less than 20% of the total collection of NTFPs, including herbal products, comes from private land
and the rest from natural forests (nepalnature.com 2005 cited in Devkota 2006).
• The emerging middle class and change in lifestyle also have effects on trade in and prospects of
NTFPs in Nepal.
• For example, ‘with more and more emphasis on organic way of living and use of natural products in
developed countries, NTFPs are likely to be demanded and diversified further in use and commerce’
(Subedi, 2006).
Potentials of NTFPs
• A literature has signified NTFPs against timber in terms of economic returns.
• Bhattarai and Dhungana 2008, estimates that under an intensive forest management regime,
community forests show promising potential through timber and NTFPs
• It shows significantly higher level of incremental benefits from NTFPs than from timber when
managed intensively for seventy years
• CFs that could total about 1.8 million ha after 70 years could be yielding products valued at NRs
12.5 billion per year (US$180 million), taking into account only woody forest products.
• Incremental benefits were estimated at NRs 2,390/ha/yr (US$34) for timber, NRs 9,500/ha/yr
(US$135) for bamboo and rattan, NRs 30,700/ha/yr (US$438) for medicinal plants, and
NRs660/ha/yr (US$9) for fuel-wood and fodder.
• National Policies and Priorities Give Emphasis to NTFPs
• During the Tenth Plan period, the government established seven gene banks (plant resource
conservation management areas) and invested in the development and extension of medicinal and
aromatic plant processing technology.
• The three-year Interim Plan of Nepal (2007/08-2009/10) recognizes the value of NTFPs and
encourages foreign investment in the form of joint ventures in case of non-timber- based high
value products, including other sectors such as hydropower generation.
• In addition, it expects forest products, including NTFPs, to contribute to food security; proposes
some economic programmes to promote industries based on NTFPs and marketing them
• In promoting NTFPs, Dalit communities should be given priority.
• The Interim Plan also recognizes that Nepal doesn’t have sufficient knowledge of NTFPs to use
them as a significant means for reducing poverty
• Therefore, action research plans are selected for the programmes for obtaining more knowledge
of conservation, development of cultivation technology, promotion and marketing of high value
NTFPs.
• The current annual budget has set agricultural sector reform as a priority
• The budget statement lauds foreign exchange earnings by enhancing export through boosting
those forest- and agro-based industries that enjoy comparative advantage.
• In addition, the promotion of herb cultivation in public land for poverty reduction in the form of a
campaign has been planned.
• Budget is allocated to produce 11.5 million seedlings of medicinal herbs, bamboo, cane and
fodder and also planned to establish a herb processing centre in Karnali Zone during the fiscal
year
Problems associated with NTFP
More Hassles than Incentive in Trade and Export of NTFPs
• There are several hassles than incentive throughout the market chain while trading and exporting
NTFPs.
Trade is largely in raw form and informal
Nepalese entrepreneurs have not been able to fully tap the value of the products, as 90% of the traded
NTFPs is exported to India largely in raw form (Edwards 1996)
There are various challenges and barriers for the trade in NTFPs. The cases of corruption and
smuggling of NTFPs are common in Nepal.
• For example, illegal trade of red sandalwood (Pterocarpus santalinus) rocked the media
throughout 2006 and 2007

14
• An important aspect exposed is that the smuggling was done in a coordinated manner and links of
the smugglers were shown by the media even with high-ranking security official, and up to
powerful politicians (Gautam 2007).
Burden added in trans-boundary trade
• The marketing and trade scenarios are changing. Until 15 years ago, Indian traders were coming
to the city centers and collecting NTFPs from the wholesalers.
• Usually local collectors and sometimes middlemen were bringing NTFPs to the wholesalers at
city centres such as Biratnagar, Birgunj, Bhairahawa and Nepalgunj. At that time, it was easy to
trade NTFPs, and collectors and Middlemen were getting higher prices for their NTFPs than they
are getting now (AEC/FNCCI 2004).
• However, small-scale trade was possible in the past from the remote districts because of low level
of awareness and market information about the NTFPs and less developed market infrastructures
compared to now
• As revealed by the traders of the mid-western region, the trade scenario has worsened now
because NTFPs should be brought to the doorsteps of Indian traders.
• This makes the traders from Nepal bear all the burden of developing permits, certificates of
maintaining standards such as certificate of origin, phytosanitory certificates (pest risk analysis),
etc. (Banjade2004).
Vulnerability has increased due to nontransparent market
• Many NTFPs that are traded have market outside of the country and many of them are still
conspicuous in terms of their actual use and further manufacturing.
• There are cases when the market boon of certain species attracted farmers to cultivate in their
lands but later the price became too low to cover the opportunity cost of the land used for
cultivation (for example, Swertia chirata)
• Market boon of some species has affected the enterprise and trade in other species eg. due to high
price of Yarshagumba (Cordyceps sinensis), people of Dolpa have abandoned previously very
attractive enterprise of Seabockthorn juice making (Manisha Rajbhandari, pers. com.).
• Yarsagumba is fetching such a large income that other NTFP-based enterprises have become less
lucrative to local people. The market of Yarsagumba is in China alone and people know little
about its market (demand, etc.), making their livelihoods vulnerable – nobody has thought of the
alternatives when there would not be a market for the species for some reasons
• “If the collection and sale of Yarsagumba were stopped for a year in Dolpa, it is most likely that
people of the area would starve to death since they have stopped agricultural production and other
enterprises”- a politician turned- trader of Yarsagumba.
Low bargaining power relates with lower market benefits
There seems to be low power for local collectors as well as individual or group traders/ entrepreneurs
in negotiating with the international players contrary to products such as timber and fuel-wood, there
is little space in local market for most of the NTFPs found in Nepal
Limited research and information on NTFPs
Nepal does not have the actual record of:
• Which species are collected and consumed locally for what purpose;
• How much of the collected amount is traded in the local market (within Nepal) and how much is
exported; and
• What is the total annual financial transaction of NTFPs?
Because of limited documentation, there are challenges in sustainable market promotion (Devkota
2006).
Bureaucratic hassles to transportation of NTFP discourage its trade
• There are more barriers other than physical access in the NTFP trade which discourage
transportation of and trade in NTFPs such as,
• a) Multiple layers of permits and checkpoints for verification have increased transaction costs and
promoted corruption; and
• b) Cartel by transporters/airlines in freight charge and uncertainty of product transport.

15
 Distributional equity is not guaranteed
• Research has shown that collectors/farmers are getting extremely low share of benefits from
NTFP trade (Subedi 2006, Bhattarai et al. 2003). The incremental benefits could not be accrued
by the poorest households, and women lose their space in collecting NTFPs when the species or
product that was being used for household use finds a market value (AEC/FNCCI 2004).
• The trickle-down effects of income through the sale of forest resources to the poor people are
generally disproved by research
Current policy issues in NTFP development in Nepal
• Although no specific policy and legal framework relating to the NTFP sub-sector exists in Nepal,
several policy and legal pro
• The most prominent of them are master plan for the forestry sector (MPFS), forest act 1993,
forest rules 1995, ninth five year plan, national conservation strategy (1983), Nepal
Environmental Policy and Action Plan (1993), National Parks and Wildlife Conservation Act
1973 and international covenants such as Convention on Biological Diversity (CBD),
Conventions on International Trade of Endangered Species of Flora and Fauna (CITES) etc. cover
the NTFPs sector.
• NTFP sector harbors a number of stakeholder groups, ranging from collectors, local middlemen,
urban traders, manufacturers, exporters, government agencies, and they have different interests
and visions.
• Collectors, who are generally the marginal farmers having a nominal share of income from
traditional agricultural activities, want to get cash incomes from NTFPs to cover their expenses in
food, health and children education
• The current policy framework is not a reflection of a balance among such a diverse perspectives
of the NTFP actors.
Several policy issues that have been observed in the NTFP subsector are:
• Arbitrary royalty rates for NTFPs and absence of well-developed system of determining royalty
• Lengthy and costly export formalities
• Ban on collection and trade of commercially valuable NTFPs that can be harvested on a non-
destructive basis
• Contradictions between forest acts and local governance acts regarding control over NTFP use
and management
• FUG rights for NTFPs withheld in forests where DOF has separate agreements with other
companies
• Absence of NTFP management directives and guidelines for community forests
• Lack of provisions to ensure equitable sharing of benefits among the NTFP collectors and traders
• Inadequate fiscal incentives to NTFP enterprises
• Impractical enterprise registration and establishment formalities
• Restriction on revision of operational plans of FUG, and DOF harassment on green felling and
commercial use of community forest resources
• Distorted implementation of regulatory provisions - e.g. royalty for NTFPs from private forests
and cultivation, mis-identification of species etc.
• Absence of enabling environment for conservation and trade
• The listed issues indicate that the government's attempts have focused on controlling the
extraction, use and trade of NTFPs, while the resourceful traders are drawing profits often
exploiting the participants upstream in the value chain, irrespective of regulatory control.
• These issues have been discussed under two major groups: inappropriate control and inadequate
enabling environment.
 INAPPROPRIATE CONTROL
Ban or restrictions
• Some species of NTFPs are banned for collection, while others are banned for export in crude
form (HMG, 1995)

16
• Yarshagumba (Cordycep sinensis) and Panchaule (Dachtylorhiza hatagirea), which have
tremendous commercial value as medicines, have been completely banned for collection and
trade by the Government but in practice they are in trade.
• The illegal trading results in increased handling cost to traders, and this in fact has reduced the
prices the collectors get from the traders.
• Likewise, out of the eight species currently banned for exports in crude form, the following four
species viz. Jatamansi (Nardostachys grandiflora), Sugandhawal (Valeriana jatamansi), Jhyau
(Parmelia sp), and Sugandhkokila (Cinamomum laucescens) are actually in trade. In particular,
Jatamansi and Sugandhawal are traded to India each year in significant quantities without
processing (CEBED, 1999).
Ownership confusions
• Department of Forest (DOF) has licensed products like resins and Lokta (Daphne species) barks
to various collector companies from several patches of national forests in the middle and upper
middle hills of the country. Problems and confusions occur when a piece of national forest with
NTFPs licensed to companies is handed over to a FUG.
• Contradictions in this regard have been experienced in the case of resin and paper in Baitadi and
Baglung districts respectively.
Complex formalities for private forest products
• Complex formalities and procedures for transport and trade of timber from private forests, and
conditions for district level supply before trading outside in case of forest products from
community forests, are not conducive to sustainable forest resource management and utilization
• Private tree and NTFPs should be allowed for free trade as per the owner's will. The export
formalities are controlled by a number of government and non-government organizations
(product certification by department of plant resources, certificate of origin by federation of
Nepalese chambers and commerce, income tax certificate by department of VAT, and so on and so
forth), and the entrepreneurs are severely discouraged to undertake export business in the NTFPs
sector.
Community forest area for NTFP management
• MPFS has emphasized the fulfillment of fuel-wood, fodder and timber from the management of
community forests, while giving limited attention to enhance income and employment from high
value NTFPs.
Enterprise location constraints
• Establishment of forest-based industries has not been allowed within 3 km (in hills) and 5 km (in
Terai) from the forests. In case, however, FUGs want to establish and operate such enterprises,
this distance limit becomes a major constraint. Current regulatory provision states that a FUG
can establish industry based on the raw materials from its own forests or a group of community
forests. Clarity lacks regarding whether a FUG can legally get raw materials from other sources
like private or government forest lands for operating its enterprise.
Arbitrary royalty rates
• DOF collects royalty from the NTFPs collected from the national forests as per the rates specified
in the regulation. However, the current system of determining royalty rates is arbitrary
• The trade of NTFPs has been discouraged by several taxes imposed by VDCs, DDCs, clubs etc at
local level.
• In some cases, such taxes have been found to be as high as 200%.
2. LACK OF ENABLING MECHANISMS
Lack of provisions in community forest operational plans
• The FUG operational plans lack provisions of NTFP management, and emphasize the
management of forest for timber, fuel wood and fodder. Although there is provision for the
management of medicinal plants in the outline of operational plan stated in the current forestry
regulations, no specific guidelines are given in the section for the development of NTFPs.
Inadequate priority

17
• NTFPs are in fact a crucial part of bio-diversity, and their management and utilization should be
the country's priority sector in terms of availing finance to enterprises development, particularly
to the community based enterprises
Inadequate support in marketing
• The DOF should encourage FUG trade on NTFPs as they are the important source of income at
latter's doorstep
Inadequate monitoring
• Although provisions in the policy have been implemented to some extent, in many situations
monitoring and control by the competent authority is very ineffective.
• At the implementation level, many challenges are there, including lack of capacity in
identification of products and resource assessment. DOF issues permits specifying quantities,
methods and seasons but they have limited capacity to monitor these parameters in the field at the
time collectors are in the forests.
Market regulations
• Knowledge is power. But it has also been money in the NTFP sector. Some are losing money
simply because they do not have the right information, especially related to the prices of the
NTFPs in an imperfect market structure that is prevalent in NTFP sector
Infrastructure
• Transportation, communication and other infrastructure facilitate NTFP development by enabling
the flow of information, people, and goods and services.

NTFP based livelihood Strategy

• Economic return must be the entry point (Marketing strategy)
• community based resource management strategy
• Value addition strategies
• Livelihood diversification strategies in case of developing countries (agro forestry, Multiple
cropping pattern) (e.g. Ellis, 1998; Zoomers, 2001).
• Biodiversity conservation and sustainable harvesting strategies.

18
 • Handover of Forest Lands to Communities
• Promising Conservation Practices by Communities
• Continuing Institutional Support at the Community Level
• Greater National Level Institutional Cooperation
Further information
Case study
• Community Based Natural Resource Management in Nepal Non-timber Forest Products and
Biodiversity Conservation
• Mirjam A.F. Ros-Tonen and K. Freerk Wiersum 2003, The importance of non-timber forest
products for forest-based rural livelihoods: an evolving research agenda. Paper presented at the
International Conference on Rural Livelihoods, Forests and Biodiversity 19-23 May 2003, Bonn,
Germany

Unit 3: Nursery practices

Nursery practices of important NTFP species

The important NTFP species can be categorized into following categories:

1) Medicinal (2) Aromatic (3) Fibers (4) Spices (5) Oil
Medicinal plant:
Nepali name: Ashwagandha
Scientific name: Withania somnifera
Family: Solanaceae
Nursery practices
 Ashwagandha is a shrubby bush which grows in dry arid soils of sub tropical regions.
 Ashwagandha is an important medicinal plant, useful in the treatment of inflammatory conditions,
ulcers, scabies, dyspepsia, lumbar pain, fever, asthma etc.
 Crop can be sown either by broadcasting or in lines.
 It can also be raised by transplanting.
 For transplanting nursery is raised in the month of July.
 Five Kg seeds are sown in 500 sq mt in nursery beds for one hectare area of transplanting.
 Seeds are sown at the raised nursery beds
 To avoid nursery diseases, seeds are treated with Dithene M-45 at the rate of 3 gm per kilogram of
seeds before sowing
 Seeds at the beds are sown in lines spaced at 5 cm and covered with light soil.
 Germination commences in 6-7 days of sowing and in about 10 days after sowing
 Seedlings of 6 weeks old and sufficiently tall are transplanted in 60 cm spaced rows at 60 cm apart in
well prepared land
 No need of irrigation if rainfall is at regular intervals. Excessive rainfall/water is harmful to the crop
 Life saving irrigations may be applied if required.

Aromatic Plant:
Palmarosa, Rosha Grass
Cymbopogon martini
Gramineae

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  Palmarosa is a grass important for aromatic oil
 It is used in making scented soap, perfume, cosmetics
 Palmarosa oil has global market, locally sell for Rs. 4-5 thousands per kg
 It is propagated by seedling prepared in nursery

 Also by breaking older root stocks or seed broadcasting

Nursery Technique:
Bed is prepared in the month of Chaitra, Baisakh for showing seeds of Palmarosa
 Seed mixed with sand and soft soil is dispersed on the bed for equal dispersal
 About 2.5 kg seeds required for one hectare
 Watering should be done regularly to keep bed moist
 Seeds germinate in 10-15 days
 In 4-5 week it is ready for transplanting
Fibre
Sisal, Ketuki, Rambans
Agave
Agave sisalana
Agavaceae
 Agave is a group of hardy perennials yielding hard fibres known as sisal fibre
 The name sisal is generally applied to Agave sisalana
 The plant has a stunted trunk formed of falling leaf bases
 Leaves are long sword like fleshy arranged spirally on the trunk
 The plants found cultivated or naturalized in many parts of India
 Grow well up to altitude of 1700 mt and in most diverse condition
 Sisal fibre is used in making ropes, and other forms of cable of high tensile strength
 The residue left after fibre extraction can be utilize for making alcohol
 Sisal wax is recovered from the sisal pulp
 The juice of the leaf is used in making medicine
 Agave is propagated vegetatively either by suckers or by bulbil
 Suckers are often used in soil conservation or delimitation of agricultural boundary or as ornamental
 Suckers are seldom used in large plantation for fibre production
 For commercial cultivation bulbil is used
 The bulbils selected for plantation should be mature and with 3-5 leaves
A mature flowering shoot bears around one thousand bulbils
Nursery Techniques:
 Both bulbils and suckers are first reared in nurseries for large plantations
 Nursery beds are prepared by digging the soil upto a depth of 30-45 cms

Spices
Timur
Zanthoxylum armatum
Rutaceae

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  Timur is small shrubby thorny plant
 Timur grows well in the hills at the height of 900 mt to 2500 mt
 Timur is used as spices in Nepal
 It is useful in stomach problems, indigestion
 Its oil is used in soap, toothpaste, insecticides

Nursery Techniques:
 Timur is propagated by seed and cutting
 Timur seed is collected in August – September
 After collecting and washing fresh seeds can be shown directly in nursery bed
 Usually collected seeds are dried and stored
 In Falgun and Chaitra seeds are shown in the nursery beds
 Seed germination percentage is low in Timur (10 to 15%)
 Seeds are soaked in warm water for one day before showing
 One year old seedlings are transplanted in rainy season
 Transplanting is also done by root cuttings
 Cuttings are made in Magh-Falgun
 Cuttings should have 1” dia and 3 bud
 Cuttings are put in nursery bed with a treatment of root harmon
 One year old seedlings are transplanted in rainy season
 Transplanting is also done by root cutting
 Cuttings are made in Magh-Falgun
 Cuttings should have 1” dia and 3 buds
 Cuttings are put in nursery bed with a treatment of root harmon
 Cutting seedlings are transplanted in Bhadra at a distance of 2-3 mt.

Oil
Sajiban
Jatropha
Jatropha curcas
Euphorbiaceae
 Jatropha curcas have limited natural regeneration
 Artificially propagated by means of seed.
 It is a cross-pollinated and propagation through seed lead to lot of genetic variability in term of
growth, biomass, seed yield and oil content.
 Besides, the problems of low viability nature of oil seeds limit the sexual propagation.
 On the other hand, Clonal techniques will help in overcoming the biological problems in hindering
mass propagation of this Tree Borne Oilseed species.
 Healthy seeds are selected for raising seedlings. Before sowing,
 seeds are soaked in water for 12 hours
 Seeds are subsequently sown in 10cm x 20cm sized polyethylene bags filled with soil, sand and
organic fertilizer in the ratio of 1:1:1, respectively.
 The raising of Jatropha seedlings in polyethylene bags can accelerate the initial growth of plantation
by at least four months.

21
  Four-month-old seedlings can be planted in fields.

 Besides, the problems of low viability and recalcitrant nature of oil seeds limits the sexual
propagation.
 Jatropha can be propagated through cuttings.
 Proper care is required in selecting the cuttings, which should be at least one-year-old and about
60cm long.
 For seedling propagation, cuttings can also be sown in polyethylene bags for raising seedlings.
 Mass multiplication of high-yielding varieties is possible only through tissue culture.
 Once high-yielding varieties are identified, millions of propagules can be multiplied only through
tissue culture.

Bael
Aegle marmelos
Rutaceae
 The plant is native of India, Nepal and other eastern Asiatic localities
 The plant thrives in a fairly reach well drained soil
 Grow well in natural and cultivated condition
 A small tree with axillary thorns and trifoliate aromatic leaves
 Believed to be sacred tree among Hindus
 All parts of plant is used in the traditional medicine
 Propagate by seeds
 Seldom produce true type by seed
 Seed short viability
 Showing in June/July in the nursery
 Transplanted after one year in rainy season
 Can be propagated by root cuttings and layers
 Plant produce root sucker also in natural condition

Propagation:Bel
 Budding in two years root cutting with mature tree bud yield quality fruit
 Seedling or budded plants are transplanted in the field at a spacing of 10-12 mt
 Attention require for first year with watering, manuring and weeding
 Budded plant yield fruit in 4-5 years, seedling trees in 7-8 years
 Root cuttings, layers and stem cuttings propagate faster if treated with IBA (4000 ppm) using quick
dip method
 Invitro propagation by tissue culture technique has been found successful

Sandal wood
Chandan
Santalum album
Santalaceae
Propagation
 Most of the sandal wood is obtained from the natural forests
 Small amounts are also obtained from plantations and tree growing in private lands
 Sandal tree starts flowering at an early stage, at 3-4 years
 Good seeds obtained from trees over 20 years
 Flowering in February to April and fruiting in July-September

22
  Sandal tree produces seeds in plentiful which are freely dispersed by birds
 Seeds germinate profusely after monsoon
 Mortality of seedlings is high due to excessive heat, draught and browsing
 Success of natural regeneration needs maintenance of suitable of host plants, protection of
excessive heat and drought, tending of suppressed trees
 Root suckers are freely produced when roots are exposed or injured
 Natural generation also take place through root suckers
 Young trees coppice well, old trees have little coppicing power

Indrajau
Indrajau
Holarrhena pubescens
Family: Apocyanaceae
 The plant is found throughout the drier or deciduous forest areas of Nepal and India
 It is a small size deciduous tree or large shrub
 Bark is stomachic, antipyretic, tonic, antydesentric
 Uses in aromatic dysentery and diarrhea
 Also used for diseases of the skin and spleen
 Fresh seeds have a high percentage of germination but in seeds that are more than one year old the
viability is low
 The plant is successfully grown by line sowing with field crops
 Weeding, periodic thinning and loosening of soil at intervals are beneficial
 Seeds should be stored in dry and closed containers

Propagation
 In natural habitat, seeds germinate during early rains and seedlings attain a height of 10-15 cm by the
end of the first year
 The plant coppice well
 Produces root suckers in abundance
 Weeding and watering stimulate the growth
 Artificial reproduction can be secured both by direct sowing and transplanting

Senna, Sonamukhi
Cassia angustifolia
Synonyms: Cassia senna
Caesalpinaceae
 Senna is a small perennial shrub of less than a meter in height with ascending branches.
 This plant is believed to have its origin in north Africa
 The plant is found growing in a wild state in certain coastal parts of Gujrat
 The plant can be cultivated all over the subtropical areas of India and Nepal

Propagation
 The crop is raised by seeds.
 The seeds have hard and tough seed coat, it is soaked in water for 10-12 hrs.
 Seeds are broadcast or drill sown at 30 cm line to 30 cm apart.
 The germination commences on 3rd days and completed within a fortnight
 Senna is also grown after paddy and as intercrop with cotton, sessamum chilies etc
 It is shown that senna mustard and senna coriander rotations proved superior by providing higher
profits.

23
  It can be economically grown under rainfed condition.
 Grown in semi irrigated condition, the yield increased considerably
 Weeding is done 3 times at about 1-2 month interval
 A good crop of senna can give 15 quintals of leaves and 7 quintal of pod per hectare in irrigated, and
10 quintal leaves and 4 quintal pod in rain fed

Unit 4: Cultivation and domestication

Concept/definition of Domestication

 Leakey & Newton 1994 defined in a narrow sense as a : human induced change in the genetics of a
plant, to adapt it to human agro-ecosystems
 In a broader sense others defined, as a process of naturalization of plant species towards specific
human-induced growing conditions
 In restrictive sense : as a process of changing of the biological characteristics of a species
 In a more extended sense : as a process of change in plant exploitation practices, which brings with
it changes in the plant’s morphology and genetics, as well as in a growing environment
 Chase 1989 has even extended the concept of domestication from the conventional biological
definition to a more inclusive one. The process of increasing human-plant interactions,
domestication not only involves a change in plant characteristics and the biophysical environment;
it also involves adaptations in human activities with respect to the use and manipulation of valuable
natural resources.
 The process of domestication can therefore be considered as an evolutionary process, from
gathering to breeding, during which changes at the level of both the landscape system and the plant
species occur. Concomitantly, a progressively closer interaction between the tree resources and
people takes place.
 Domestication is the act or process of converting animals or plants to household use.
 That often means moving an organism from its natural habitat, introducing it to a modified habitat,
and providing the means for it to maintain itself in its new location. This may involve genetic
modification and breeding
Why do we domesticate?
 Because it is amicable to have that particular life form around
 Because it is easier to deal it at home or
 Because through cultivation it can be improved
 Frequently because it is more economical to produce the product than to continually collect it from
the wild.
If we do not domesticate the reasons are probably that there is no need-
 The organism is plentiful in the wild-or
 Else the habitat requirements are too difficult to duplicate on a farm or garden
 Together domestication and commercialization may lead to monocultures which may not be
desirable from a diversity perspective

Importance of Domestication
 In conservation of plant resources/species
 Sustainable supply of raw materials to industries
 Optimum yield production due to known age
 Mitigate effects of deforestation by increasing the planting of trees/MAPs
 Income generation

24
  Patent right reserve
 Supports livelihood
 Reduce extraction pressure from forest
 In conservation of threatened, endangered etc species
Role of Ethno botanical knowledge
 Identification of plant species
 Documentation & biodiversity registration
 Promote NTFPs use in terms of:
-Cultivation/domestication
-Commercialization
 Conserve ethno botanical knowledge for future generation
 Development of ethno botanical knowledge based enterprise
 Integrate this knowledge with scientific knowledge for better utilization & promotion of MAPS
 To provide impacts of climate change on MAPs phenology. Morphology, yield, location etc

Ex-situ conservation
 Ex-situ conservation: refers to the conservation of biodiversity outside their natural habitats. In
such type of Conservation species are maintained in artificial condition under human supervision.
 When Ex situ conservation is done / needed?
-if remnant population is too small to persist or
- if all the remaining individual are found outside protected areas then Ex situ
Conservation is essential. An example of the Ex situ conservation is a beautiful Franklin
tree which grows only in Cultivation and is no longer found in the wild. (Primack, 1995).
Conservation of MAPs in Nepal.
OBJECTIVES
 To protect NTFPs from extinction/ disappear and damage.
 To make wise use and optimum utilization of NTFPs.
 To support livelihood
 To maintain the ecological balance in nature.
 To maintain and keep the diversity of the species.
 To get the sustainable yield from NTFPs without deterioration of the environment.
 To do research and development of NTFPs for the benefit of the mankind.
 To beautify the nature and the natural greenery.
 For aesthetic purposes
 To bring the people towards nature.
 To attract people and increase the tourism and get
recognition in the world.
 In order to be listed in the world heritage site
 To reduce the poverty and increase the economy of the Nation.
 To fulfill the basic and the luxurious needs of the people.
 To provide food to the poor.
 To conserve genetic resources.
 To supply NTFPs sustainably.
 Being the signatory member of the CITES it is its responsibilities.
 For the Documentation for future use.
Different Methods of Ex- Situ Conservation:
 Botanical Garden
 Arboreta
 seed Orchards

25
  Seed Banks
 Clonal Banks
 Common Gardens
 Provenance Tests
 Progeny tests and more recently D.N.A libraries
 Some Commercial Forestry Plantation-mainly those established with seedling derived from a
relatively broad genetic base- represent a type of Ex situ Conservation, one that is especially
important for species with rare or endangered Natural Population ( Olvi, 2001).
Ex- Situ Conservation
1. Botanical Gardens:
According to Botanical Garden Conservation International (BGCI) UK Botanical Garden can be
defined as public garden which maintain collections of live plants mainly for study, scientific research,
conservation or education.
There are few botanical gardens in this country which are poorly funded, inadequately developed.
Therefore they are not able to play significant role in conservation and research.
Royal Botanical Garden Godawari is established in 1961 which is one of the prominent one. The
management was done under Department of Medicinal Plants but now known as department of Plant
resources.
The aim of the Garden is to collect and preserve adequate representation of plants of the Country. The
garden holds diverse and unique collection of both indigenous as well as exotic plants. The garden
represents beautiful collection of indigenous rhododendron, lilies, orchids, Ferns and many exotic plants
including Daisy, Chrysanthemum, Cactus, Pansy, Petumia etc. Over 100 species of orchids collected from
different parts of the Country are maintained.
2. Seed Banks and Gene Banks:
The storage of Conservation material in the form of seed is one of the most efficient methods of ex-situ
Conservation for sexually reproducing plants whose seeds are suitable for long term storage. Orthodox
seeds after being dried to about 5-8% moisture content can be conserve for very long periods at
temperature below zero. The longitivity varies from taxon to taxon, seed viability in medium term
storage( 0 to 5 0C) can be 5 to 25 years where as long term storage (-10 to -200 C) can give viability of
seeds perhaps for a hundred years (WCMC 1992,) ( Cited in Choudharry, 1998).
Species with recalcitrant seeds and those which do not readily produce seeds need to be mentioned as ex-
situ growing plants in field gene banks or as living collection. Germplasm is the form of seeds, sperms,
ova and living tissues stored in tree improvement office and Royal Botanical Garden of
Ministry of Forest, National Agriculture Research Centre (NARC) and the Central zoo as a measure to
conserve Nepalese Germplasm. More Germplasm from Nepal are being stores abroad in IFFI,
Philippines, Kew Garden London and so on. (Joshi, 2001).

2. In-Vitro Storage:
In Vitro (literally” in glass” storage of germplasm refers to the conservation of Plants in an artificial
growth medium environment in laboratory conditions. This is an important form of preservation of wild
flora which is carried out by many different institutions. For in-vitro storage the plant materials used are
tissue or organ cultures of embryo, pre-existing auxiliary buds on stems or storage organs (meristem or
shoot tips) and other somatic material which will yield advantatitious buds or embryo in bud ( Choudhary,
1998).
Introduction of tissue culture technique in Nepal dates back to 1976 when Department of Plant resources
(the then Department of Medicinal Plants) established the first tissue culture laboratory in Godawari in
Nepal.
Protocols of micro propagation for more than 85 varieties of economically important plants have been
developed in the tissue culture lab of department of Plant Resources alone. More than half dozen of
private tissue culture labs are running in Commercial scale in Kathmandu. These laboratories helped

26
indirectly in conservation of genetic resources of Nepal by producing in mass the plants of market
demand and supply them to farmers, nursery and owners.
Ex situ populations that are self maintaining can also reduce the need to collect the individuals from the
wild for display or research purposes. When in-situ or on-site preservation could not prevent the
continuing decline of the population towards extinction then ex-situ or off site preservation strategy
becomes necessary. Ex situ conservation is much more costly in comparison to in-situ conservation

Some of the State owned organizations are:

 Gene banks
 Tree improvement office
 Ministry of Forest in Hattisar Kathmandu
 NARC
 T.U Central Department of Botany
 I.A.A.S, Rampur
 I.O.F
 RECAST (Research Center for Applied Science and Technology).

International Organizations:
 IUCN, NTNC, UNDP, WWF
 IPGRI (International Plant Genetic Resources
 IRRI (International Rice Research Institute)
 IARC (International Agriculture Research Center)
 CIMMYT (International Wheat and Maize Improvement Center) are the important centers of the
Global network involved in this venture.
 Regional Centers are also established for the Ex-situ Conservation of Germplasms. International
Gene banks and regional Centers have preserved Nepalese Germplasms for the Development of the
new crop varieties

Domestication of MAPs
 Non-timber forest products and their production opportunities in Nepal
 Swayambhu M. Amatya, Forest Research Division, FORESC, Kathmandu, Nepal
 Medicinal and aromatic plants, as part of forest products other than fuel wood, fodder and timber,
have been usually referred to as non-timber forest products (NTFPs). More than 700 species,
constituting some 12% of Nepal's vascular flora, are recorded as medicinal plants. Growing these
plants under tree species is a new concept in Nepal. This activity could be seen as an agroforestry
system in which forestry practices could be combined with medicinal herbs.
 An experiment was laid out to study the effect of a tree crop (Dalbergia sissoo) on the yield of an
adjoining medicinal herb (Cymbopogan winterianus). A simple alley cropping system was selected
with populations of 500, 250 and 125 trees per hectare controlled by uniform tree-row spacing of 10
m. The main aim was to find the effect of the tree crop on the yield of the adjoining medicinal herb.
 Data for 3 years on growth and yield of tree and crop indicate that there was no difference in height at
the different spacings. There was also no difference in the yield of citronella oil, whether grown with
or without trees. The study indicates that small farmers who wish to grow citronella grass for oil
production can do so beneath sissoo trees.
Euphorbia tirucalli resin: potential adhesive for wood-based industries
R. Murali and J.G. Mwangi
Moi University, Department of Wood Science and Technology,
Eldoret, Kenya
 Euphorbia tirucalli is a common agroforestry species that farmers use as a hedge plant. Its resin was
studied for application as an adhesive for wood-based materials. Studies were carried out on various

27
 working properties of the resin, and it was found to be comparable with commercial water-based
wood glues. Glued wood samples were further tested for shear stress along the bond line. The study
indicated that with minor modifications Euphorbia tirucalli resin is a suitable adhesive for wood-
based materials, especially where cost and availability are the decisive factors.
Tapping of almaciga (Agathis dammara (Lam.) Rich.) for sustained productivity of the tree: the
Philippine experience
Arsenio E. Ella
Department of Science and Technology,
Forest Products Research and Development Institute, Laguna, Philippines
 Tapping almaciga is a veritable economic activity. The resin
obtained from the tree Agathis dammara is called almaciga resin or Manila copal. Although regarded as a
minor forest product, it is one of the leading dollar earners for the country. It is used in the manufacture of
varnishes, lacquers, soap, paint, printing inks, linoleum, plastics, waterproofing materials and paper
sizing. It also can be used as incense in religious ceremonies, as smudge for mosquitoes, as torches and
for kindling fires. However, traditional methods like deep tapping, overtapping and frequent rechipping
cause death of many standing trees. Considering the deterimental effects caused by such traditional
methods of tapping almaciga, a set of scientific techniques was developed at FPRDI. This has been
introduced and adopted by the almaciga resin licensees, farmers and out-of-school youths in various parts
of the country. This paper covers two parts: (1) the tapping practices of almaciga in the Philippines and
(2) biological consideration in almaciga tapping as essential information geared at sustained resin
production.
Commercial opportunities: the Nepal-India trade in medicinal and aromatic herbs
Carsten S. Olsen The Royal Veterinary and Agricultural University, Department of Economics and
Natural Resources, Copenhagen, Denmark
 Thousands of tonnes of medicinal and aromatic herbs are harvested each year in the forests and alpine
meadows of the Nepal Himalayas. The herbs are sold in roadhead towns in upland Nepal; from there
they are transported to wholesalers in the southern part of the country and from there to the main
wholesale markets in India. This paper focus on the main commercial species from central Nepal; the
trade is analysed with particular reference to distribution of income within the marketing chain.
Possibilities for improving current utilization and marketing are discussed.

Unit 5: Harvesting of NTFPs

5.1 Importance
• The role of NTFP production and harvesting in conservation is based on the assumption that the
collection of fruits or tapping latex is less damaging than felling trees.
• NTFP were therefore considered as a low impact forest use compatible with forest conservation. On
the other hand NTFP constitute an important component of many subsistence farming systems (van
Dijk, 1999; Hartog & Wiersum, 2000).
• The FAO estimated that 80% of the population of developing countries uses NTFP to meet their needs
in health and nutrition (FAO, 1997).
• NTFP are a rapidly growing market sector with a total value in world trade of US$1,100 million.
(Elevitch and Wilkinson, 2000). In some cases the value of NTFP trade is higher than that generated
by commercial timber exploitation (CERUT, 1999).
• Although being potentially beneficial for local livelihood at the short term this commercial extraction
of NTFP is not always sustainable.
• Ample evidence of over-harvesting of NTFP is given by numerous examples in literature. Even in the
beginning of NTFP research over-harvesting of NTFP resources like rattan was reported (de Beer and
McDermott, 1989).

28
• Ros-Tonen (1999b) concludes that the larger the market for a NTFP, the higher becomes its value and
the greater the danger of overexploitation.
• Only products which can be harvested without killing the individual plant or animal, which are
abundant, or which regenerate easily offer good prospects for sustainable management.
• Examples of NTFP with a potential for sustainable production and harvesting are Brazil nut
(Bertholletia excelsa) in Brazil and Bolivia (Assies, 1997) and palm heart from multi stemmed
species like Euterpe oleracea in Guyana (van Andel et. al, 1998).
Management options:
• Management needs to consider both the conservation of forest functions on the long term as the
quality of local livelihood.
• To explore the suitability of NTFP production and harvesting with other forest uses different
management options are to be considered.
Develop sustainable harvesting methods
• In order to develop sustainable harvesting methods a number of key-ecological questions has to be
answered (e.g. phenology, ecology, reproduction biology) in order to determine best harvesting
practices, species and best suiting areas.
• The determination of a sustainable harvesting level depends on information on volume and
reproduction. The lack of NTFP resource assessment methodologies hampers the determination of
such sustainable harvesting levels.
• NTFP resource assessment is relatively new and received little scientific attention, consequently only
local methodologies have been developed by individual researchers. Some of these methods
incorporate existing local knowledge with inventory methods from wildlife management, horticulture
and other disciplines.
• An extensive literature survey by Jenny Wong (2000) showed that only a limited extent of these
methods is scientifically sound. On the other hand the existing scientific inventory methods are not
easily adjustable to local circumstances and are not easily understood and interpreted by local
management.
• Therefore research should be need for inventory methods, which include traditional knowledge as
well as some extent of scientifically.
Develop human modified vegetation types
• The distinction between natural and human modified forest systems is described and , characterized
by an increase in human labor per unit of forest land and intensified human intervention on the
reproductive biology of the desired species to gain a higher density and better access to the product
(Wiersum, 1999).
• Numerous interventions can be applied in various intensities and at different level.
• At the species level one has to consider yield raising methods and techniques such as semi-natural
selection or domestication of the specific species.
• At the system level not a single species but also the surrounding ecosystem is adapted to the
production and harvesting of a specific species. Farming or plantations are considered the most
intensive management systems.
• Some forestry systems try to combine the features of natural forests and domesticated products.
• Forestry is a system of complex agro-forestry that encourages farmers to mimic the structure and
ecological functions of the local natural forest ecosystem using species that provide them with a range
of products for personal consumption or sale in the marketplace.
• Farmers benefit from the diversity of products that they harvest while also restoring the natural
environment and supporting key ecological processes like soil retention and water purification
(Senanayake & Jack, 1998).
• Such systems seem promising and are in needs of more scientific attention to fully investigate their
potential contribution to sustainable forest management, conservation of natural resources and
improvement of local livelihood.
Develop new market opportunities

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• The chance of a specific product to succeed in new commercial markets has to be studied in market
viability studies.
• Studying the commercial potential of a specific (set of) NTFP has to take into account some
considerations.
• The focus on developing market outlets for NTFPs needs to be kept in balance with consideration of
the huge and usually very important continuing use of NTFPs to meet subsistence needs (Arnold &
Ruiz Pérez, 1998).
• Some other considerations are the sustainability of the production, closely related to the continuity of
production flow, the impact on socio-economic structures of the community, and the position of the
NTFP in relation to similar (NTFP) products.
• For the latter a classification of NTFP based on supply and demand characteristics, the driving market
mechanisms, is to be considered (see box 1).
• Forest product certification seeks to link trade in forest products to the sustainable management of
forest resources, and is therefore an important marketing tool for management to consider.
• Certified products enter different markets with other opportunities compared to the traditional, non-
certified, trade markets.
• The three main certification schemes, Forest Stewardship Council (FSC, Sustainable Forest
Management), International Federation of Organic Agricultural Movements (IFOAM, biological
control) and Fairtrade Labelling Organisation (FLO, Fair Trade), are still highly inconsistent and
urgently need closer co-operation.
• Some products, like shade coffee and chicle in Mexico and palm heart in Brazil, have already been
certified by different certification schemes (Mallet, 2000).
Box 1: provisional categorisation of NTFP according to management characteristics
(Wiersum, 1999)

Supply characteristics:
1. Production characteristics
Degree of ecological sustainability of extraction
Ease of vegetative or regenerative production
Ease of cultivation under different environmental conditions
Ease of stimulating production by technological means

2. Organization of production
Access to NTFP resources
Gender division of production responsibilities

Demand characteristics
Opportunistic collected products for subsistence consumption not related to main household needs.
Occasionally collected products purposely collected in times of emergency (e.g. medicinal products,
emergency
foods during droughts)

Products for regular household consumption

Easy to substitute with products of other species (e.g. various food products, fodder, fuel wood)
Difficult to substitute with products from other species (e.g. preferred forest foods)
Products for sale at various market types (local, regional/national, international)
High degree of competition with substitutes
Low degree of competition with substitutes (e.g. certain medicinal products, gums, resins)
Products demanded in manufactured forms, and which can be locally produced giving them added

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 value (e.g. palm
sugar, liquors)

Research needs
• The management options mentioned above are to be based on and supported by sound
scientific data. Ros-Tonen (1999a) divides NTFP research into two categories based on the
primary objective, i.e. forest oriented and people-oriented research.
• The forest oriented approach focuses on the development of an ecologically sustainable
extraction system, while the people oriented approach focuses both on the recovery of local
knowledge and its application in participatory management, and to improve people's
livelihood. Combining the threefold division with the research needs derived from the
management options mentioned above results into the following schedule:

Current situation of NTFPs harvesting in Nepal

• Unprocessed medicinal and aromatic plants constitute more than 90 percent export from Nepal.
Because of production in economies of scale, technological capabilities and large consumer
demand India imports NTFPs from Nepal and processed and sell to USA and European countries.
• Collecting NTFPs can be time consuming and labor intensive, so usually do when there is little
demand for farm labor. Moreover, they tend to harvest only when they need the cash rather than
during the appropriate season (Chandrasekharan, 1998).
• Similarly Behari (1994) argued that the collection methods of forest products are based on
traditional system. Very little attention is paid to the quality aspects while pickings/plucking.
• Further, the season of collection has a direct bearing on the maturity and availability of the
products.
• Physiologically immature collection may lead to total destruction of the habitat particularly for
medicinal plants and herbs.
• Likewise the destructive harvesting and overexploitation of NTFPs adversely affects the
environment and genetic composition of the plants (Charles, 1994).
• According to the Charles for the sustainable use of NTFPs there are many things that should be
considered, among them harvest assessment and harvest adjustment are important.
• Baniya et al conducted a survey, in 1999 about the distribution of lichen and their preferred host
species. In subtropical region the most preferred host were Schima wallichi, Castanopsis indica,
Pinus roxberghai etc.
• Here central message is that when we try to conserve the orchids the supporting species will be
conserved automatically.
• Therefore conservation of NTFPs not only conserves the wanted species but also a vast number
species that are linked with the system.
• Olsen (1999), did survey in Gorkha district and found approximately 3700 collectors were
engaged in collection of NTFPs. In the northern part of the district 50-100% of household were
participated in the collection and in the middle part the figure was 25-50%.
• Collection of commercial MAPs production was generally not important in southern part of the
district.
• Average daily income was competitive with other income generating activities and commercial
MAPs collection constitute from 15-35% of poor household annual income.
• Collection was undertaken in accessible forest and pastures that the villages have control even if
they are formally government owned.
• Multi product collection, focusing on a single product and collecting other products as they
encountered, was practiced.
• Declining supplies of natural NTFPs stock will create strong incentives for domestication and
cultivation of NTFP species on degraded forestland and in agroforestry system.

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• NTFP species cultivation poses definite advantages as opposed to collecting from natural stocks.
Harvest is facilitated by the proximity of planted stocks to settlement, product quality can be
improved by using genetically superior planting material, and higher returns to labor from
cultivated NTFPs would tend to discourage forest collection.
• Therefore possibly allowing natural stock to regenerate. Increasing demand can quickly result in
depletion of the resource. Price rises because of scarcity
• Sustained demand for rare products result in their being eliminated from local forests. Writer saw
this problem particularly in Taiwan Korea and China where animal and plant species favored at
traditional medicines are being harvested to near extinction to satisfy growing market demand
(Mittleman et al, 1998)
• Food and Agricultural Organization (FAO, 1996) suggests that the domestication and
commercialization of NWFPs don‘t create poverty trap that will be harmful to farmers, producers
and workers linked with large-scale monocultures plantations for exports markets.
• One way to spring this trap is by facilitating smallholder farmers to produce commercially
important natural products in their agroforestry system, building upon the rich species
diversification in those systems.
• Very little is known about the domestication of wild species into the agroforestry system in
Nepal. Sanchez (1995) suggested that the domestication requires three stages, identification of
potentially useful species, Socio-economic appraisal or ethnobotanica survey, capture of germless
by seed and vegetative propagation and incorporate in to existing farming system.
• Bamboo is one of the most widely domesticated species in Nepal. According to Gautam (1999)
although it hamper crop yield by drying out the soil, this species has several benefits including
controlling soil erosion. In Nepal it is considered poor men timber.
• Domestication also depends on the nature of job of the farmers and their leisure time. In
Sindhupalchok district of Nepal a number of species are growing by farmers such as Chiraita,
Lycopodium and other species but in very limited amount. (Gautam, 1999)

NTFPs and Property Right

• Most of the NTFPs are harvested from common property resources in situations where access
appears to be neither restricted nor regulated.
• Centralized state control and commercialization of NTFPs generally have had a number of
significant impacts: local control on resources has tended to decline; traditional NTFP production
and management systems have eroded considerably; common land per capita has tended to
decline; and traditional forms of access control, and conflict resolution have become largely
ineffective.
• Commercialization also heightens the pressure for quick exploitation of the resource, particularly
when the price situation is favorable (Sharma, 2000).
• The success or failure of NTFPs based activities depends upon the clarity of the policies and legal
instruments that govern them and type of the institution to manage them.
• People need to have clearly drafted rights at all stages of NTFPs based enterprises. The
management of NTFPs is linked closely to land use rights. Conflict arises as an open access
resources. The result is premature harvesting that not only reduces quality but also threaten
sustainability.
• According to a research report, about 43 species are collected for leaves, fruits or flowers; 15 for
bark; 27 for roots; and six for the whole plant. About 91 species are used for medicinal purposes.
• Although, there were a large number of species, why only 43 species are in trade is the major
question.
• Collectors said, ―We are collecting those species, which are saleable.
• Wholesalers said, ― This is not in our hands, whatever the species demanded by the Indian
traders we deliver the message to the collectors through the village traders.
• This was the simple mechanism by which collection of particular species was decided.

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 • Edwards (1996) opinioned that the production, marketing, and processing of traded NTFPs can be
improved from the perspective of harvesters in certain region of Nepal.
• The establishment of small-scale processing units at the local level could provide stronger
incentives for harvesters, and forest user groups would be a convenient institutional basis for
local level developments, which could also act as marketing cooperatives to secure access to
credits and better market information.
• Subedi (1999) have identified several constraints in the collection and trade of NTFPs in mid
western development region, such as adulteration of products by the collectors in order to
increase the volumes they collected; little consideration for natural regeneration is given; the lack
of organized efforts in collection and trade etc.
• Kanel (1999) highlighted the need of a business promotion for NTFPs. Though, marketing system
is not the only factor in the promotion of businesses and trade of NTFPs, the provisions of capital
market; free flow of information; property rights and obligations, according to him, are also
equally important in the sustainable development of NTFP sub-sector.

5.2. Harvesting Tools and Techniques

Fruit, Seed, Oils, Fiber, Flosses, Bark, Gum, Resin, Fats.
Harvesting techniques:
• Basically for the collection of seed and fruits of NTFPs, Branch cutter (Long pole, mostly bamboo
spp., with attached small saw) and Delimber are use to cut the branch with fruit or seeds from the
tall trees.
• The area under a fruiting tree should be cleared of litter and vegetation or covered with sheeting and
fruit or seed are collected with the help of branch cutter or Delimber.
• In the case of small bushed tree fruit or seed are prick by hand to collect.
• Knocking or beating the seed coat helps to release the seed.
ICIMOD guidelines for harvesting NTFPS based on training program at Far-western Nepal
1. Harvest mature plants, after seeds are mature.
2. Employ enrichment plantation in case of immature and poor populated sites.
3. Underground parts: Harvesting 66% of the resource
• Leaves: 75-80 %
• Fruits/seeds. 90-95 %
• Conduct periodic regeneration surveys and, if needed, enrichment plantations in the harvested sites.
• Use traditional knowledge and data from the experimental plots on the optimum productivity of a
species in relation to time period which, according to them, varies from species to species.
• ‘Rotational Harvesting Practices’ to give sufficient time for the vegetative growth of the species as
well as to get the increased amount of the harvest.

Examples of some NTFPs rotation periods

• Annual harvesting for Zanthoxylum armatum (Tree; fruits)
• Two years for Swertia chirayita (Biennial herb: whole plant)
• Two years for Valeriana jatamansii (Perennial herb: rhizome)
• Three years for Angelica glauca (Perennial herb: root)
• Three years for Paris polyphylla (Perennial herb: rhizome)
Leaf Oil
• Eucalyptus oil: The distillation of oil from the leaf of Eucalyputs globules (The blue-gum tree) is a
well established industry in the Nilgiris of India and small scale plant Of Eucalyptus species in
Sagarnath, sarlahi in Nepal.
• The oil is colorless; it has a characteristic aromatic odor and spicy taste. The main use of the
eucalyptus oil is in pharmaceutical preparations, flavoring, tooth-pastes, cold remedy called
Sunchio, perfumery, vermin-repellents, and disinfecting preparations.
Camphore Oil

33
• Camphor and camphor oil are obtained from the wood and leaves of Cinnamomum comphora, a
cultivated tree in part of India and Nepal, by stem distillation.
• Both camphor and camphor oil are used in cold remedies, perfumery and insecticides.
• Cinnamon oil: The cinnamon oil distilled from leaf and bark of Cinanamomum zeylancium, is used
for flavoring, confectionery, Pharmaceuticals, soap and dental preparations. It has high germicidal
and fungicidal properties.
Mint oil (Peppermint)
• Mentha arvensis, an herb found throughout the temperate Himalayas, at 1,500-3,000m.
• Growing wild yields the mint oil. The plant is also being cultivated on a large scale in Terai areas of
Nepal especially in Bufferzone areas of Bardiya national park.
• The oil contains menthol. The oil is largely used in confectionery and in medicine.
Cinnamon oil
• The cinnamon oil distilled from leaf and bark of Cinanamomum zeylancium, is used for flavoring,
confectionery, Pharmaceuticals, soap and dental preparations.
It has high germicidal and fungicidal properties.
Leaf Dyes
• Some of the plants yield leaf dyes of purely local value.
• For example, The Henna trees (Lawsoni inermis), The leaves are dried and ground into a paste. The
dye is used for dyeing hair, eye-brow, palms, fingers, toes etc.
Sal leaf Plate
• The Sal tree (Shorea robusta) leaves are a good source of income to the tribal people in India and
Nepal, who make them into plates and cups, or use them as wrappers for homemade cigars.
• They are also used for thatching huts in the villages.
• In India and Nepal, the leaves of sal are being used for making plates and cigar wrappers.
• Satapathy (2001) observed that in India, the poor forest dwellers who slog it out the whole day in
the forest collecting the leaves of sal get not more than 20 to 25 Paise (one US cent) per plate, while
the traders get a mind-boggling profit of 700%.
• A bundle of 50 sal leaf plates which is procured at source in Orissa, India, at less than Rs.12 (USD
0.25), is exported from Kolkata at Rs.932 (USD 22).
• Orissa produces sal leaf plates and cups worth more than Rs.3 billion every year.
• Since Orissa's products are of better quality than those available from other states, there is a high
demand for these leaf plates. Export of sal leaf plates to countries like the USA, UK, France and
Germany is rising steadily because they are eco-friendly, hygienic and biodegradable.
• In Nepal also, the use of Sal leaf plate is more in fast-food stall especially, Sekuwa, Chat, Momo
and other items in urban areas.
Making Bidi (local cigarette)
• Dopyros melanoxylon ( Tendu): The leaves are premier source of bidi leaves. Tendu leaves for bidi
from India and terai of Nepal constitute a major industry.
• The leaves of Tendu has been widely uses to make bidi in the Nepales Terai in Nepalgunj,
Biratnagar and Krishnanagar.
• The reason for using tendu leaves in bidi manufacture is due to their flavor, flexibility and
resistance to decay.
• The study revealed that the leaves contain some pigments like carotenoides, chlorophyll A, and B,
tannins, tritepenes and steroids etc ( panda, et al, 1996)
Fibres
• Fibres usually occur as Sclerenchyma cells and serve to impart rigidity to the plant. They are, as a
rule, long cells with thick walls and small cavities. They are found in various parts of the plant such
as stem, leaves, roots, fruits, and even seeds.
Fibre can be classified by origin and structure into;
• Soft fibres from stem
• Hard fibres ( leaf of structural fibre)-many cordage fibres such as Manila hemp, sisal etc; and
• Surface fibres borne on the surface of stem, leaves, seed and so on.

34
 Important examples of stem fiber are
1. Sterculiaceae : this family include valuable cultivated fibres plants such as jute ( Corchorus
capsularies, C. olitorius). Jute has prominent place in the Indian and Nepales economy, being cultivated
extensively in the terai areas. Its prominence as one of the most important commercial products of India
and Nepal is due to its being the cheapest and most easily manufactured of all fibres.
2. Leguminosae: This family include valuable plant Borla ( Bauhinia vahlii). Which is a climber a
gigantic size, commonly found in the India and Nepal’s forests in the hills. The fibres form this inner bark
is extracted with the help of knife and by hand pealing. It is used for making ropes for domestic
purposes.
Urticaceae
• This family includes a valuable plants Allo ( Girardinta hetrophylla ) This is a common stinging
nettle of the Himalayan which is also found in peninsular India and Nepal.
• It is about 1.2 to 1.8 m. height. This plant produces a fine, soft, silky fibre which is used for making
ropes, twine and a coarse cloth, and gunny bag.
• In the eastern side of hilly areas of Nepal especially eastern side in Kadnbari, people are making
cloths, and bag which are great commercial importance now a days.
Fibre from leaves
Some of the important species whose leaves yield fibres are given below:
• Agaves species (A. americanna, A. cantala, A. sisalana, A. mightii): These are the well-known sisal
plants of India and Nepal.
• A. Sisalana ( Katuki) produces the sisal fibre of commerce. This fibre is strong, coarse and more
flexible. The fibre substance consists of about 75% of the lignified from the cellulose.
• The fibres can separate by retting; they are then washed and dried in the sun.
• Then the leaves which come into a horizontal position are cut. Cutting may be continued till the
plant dies after flowering harvesting is from 4 years to 10 years or up to plant dies.
• The first cut of leaves is made by sickle when these leaves are 60 cm long or leaves touched the
ground. At least 25 to 30 top leaves may be left at the time of first cut and 20 laves left at
subsequent cut.
• Yields are up to 2,800 kg. of fibre per hectare under optimum conditions. Fibres stripping are done
within 48 hours of harvest. Previously done by hand, now the stripping is done by modern
machinery.
• Agaves fibres produce in India and Nepal is mostly used for rope manufacture for weaving mats and
cattle holding. It is also useful for cordage, nets, etc. It is also use as live fences for demarcation of
land purposes in villages.
Grasses for ropes
• Eulaliopsis binata, saccharum munja are useful for making ropes and cordage
Flosses
• There are several forest trees and shrubs in India and Nepal, which produce silky flosses in their
fruits.
• Ceiba pentandra ( Kapok): The floss from this tree is known as silk cotton or kapok. The world
supplies come mainly from Java. It is found planted around the villages and temples.
• The pods froms which the floss is obtained are brought down before they are ready to burst by
branch cutter or by Delimber.
• The pods are dried in the sun and split open with mallets ( wooden hammer). The floss is taken out
with the seeds and dried in the sun and the seeds separated by beating the dried material with sticks.
• The yields of floss vary with the age of the tree. Young tree 4 to 5 years old yield about 700 to 900
grams of floss, while a full grown tree about 15 years old yields as much as 2.5 to 4 kg.
• It is extensively used abroad in the manufacture of life-belts and buoys owing to its extreme
buoyancy and resistance to water-logging.
Bambax ceiba ( Semul)
• The floss from this tree is known a Indian kapok. It takes is found in India and Nepal on account of
its large-scale production. The capsule of this tree yields the floss.

35
 • The Capsules should be collected green from the tree as the floss losses much of its resilience after
the capsule have opened
Ank ( Calotropis gigantean) – Floss from fruit for stuffing.
Siru ( Imperata cylindrical) Inflorescence for stuffing pillow and cushion.
Coir ( Jata)
• Coir fibre is widely used all over the world for mats, brushes, ropes etc.
• It is not true floss or a bast fibre and is usually obtained from the thick, fibrous husk of the fruit of
the coconut palm- (Cocus nucifera).
• Coir fibre is coarse, stiff, elastic and buoyant and hence suited for ships’ ropes.
Gum
• Gum is a group of plant products related to sugars and carbohydrates, and consist of polysaccharides
or their derivatives.
• True gums are formed as a result of disintegration of internal plant tissues, chiefly decomposition of
cellulose, through a process known as gummosis.
• Gum and resin are exuded by plants partly as a normal phenomenon and partly as the result of
disease or injury of the bark or wood.
• Harvesting of gums is done mostly by hand-picking by people living in the neighborhood of forest.
The large lumps are broken with a wooden mallet, and knife and other equipments.
Resins
• Resins occur in special cavities or passages in a wide variety of plants.
• Commercial resins are collected form artificial wounds in trees which is called tapping.
• Resin is obtained by tapping the tree by making a cut which exposes the surface of the wood.
• In resin-tapping techniques, both the horizontal and vertical ducts of the trees are cut.
• The modern improvements in resin tapping permit of the tapping being done without impairing the
health of the trees.
• Generally three methods are adapted in resins tapping
a. Light continuous tapping
b. heavy tapping or tapping to death and
c. Rill methods.
• The importance of natural resins has very much declined due to preparation of synthetic resins.
• The resin is widely used in the manufacture of paints and varnished, water-proofing substances and
soaps.
• They are used in pharmacy, for sizing paper, for incense, in preparation of sealing-waxes and many
other products.
An example of Resin Harvesting In Combodia
• Cambodian people have utilized resin for centuries, since ancient times. Resin is important
throughout Cambodia. The income from resin promotes food security for families that may face food
shortages for 3 to 4 months during the rainy season.
• After they burn the tree for resin they extinguish the fire because they are afraid it might spread and
burn the forest. They may keep a store of resin in the forest for collection To take a brief example of
an unusually easy-to-manage NTFP, consider liquid resin (tapped from the genus Dipterocarpus),
which has high livelihood significance in Cambodia.
• A study in 2002 in Mondulkiri (Evans et al. 2003) found that prices ranged from $0.13-0.26/litre
(seasonal) and individual resin trees may yield 25-35 litres/yr. The mean was about 80 trees per
family (villages differ) with a mean income of $340/yr (a few >$1,000), spread through the year and
sufficiently regular to act as collateral for loans
Fats
• Fats, or fatty acid oil is nonvolatile. They are used not only as edible oil but also in different
industries.
• People were using oil-containing seed for lighting purpose.

36
 • Now days there are many fats and fatty acid, which are used in paint and varnishes to protect upper
surface layers because they dry immediately, particularly in case of oil cloth and linoleum
manufacturing.
• Fats are at ordinary temperature a bit more thick or solid and oils are liquid at ordinary temperature.
• These oils are insoluble in water but dissolve in organic solvent.
• When fats are boiled with alkali then it decomposes into fatty acids which mix up with alkali to form
soap which is known as soaponification
• There are three methods for the extraction of Fats:
a. Distillation
b. Expression
c. Extraction by solvent

5.3. Sustainable harvesting of NTFPs

• People, particularly in rural and remote areas of Nepal are heavily involved in collection of NTFPs
for subsistence of their livelihood. MAPs provide benefits to many people, both collectors and
traders.
• Most of the collectors gather MAPs from the wild and only few cultivate some of the species in
their private lands. More than 100 types of NTFPs that are used in medicinal, aromatic and other
industrial preparations are collected in Nepal for commercial purposes.
• More than 90 % volumes of the commercial NTFPs are collected from wild very often in the
destructive and unsustainable manner
• Figures estimate almost 80% of the raw material procured by the companies comes from wild
sources; and exploitation of natural resources takes place to the point of danger for certain species.
• Higher price and urgent requirements from traders sometimes cause uprooting of some species,
hence jeopardizing future outputs.
MAPs collection is basically considered an additional or leisure activity; however, collection of some of
the species requires hard works.

Principal NTFPs by ecological zones of Nepal

• NTFPs/MAPs of High Altitude: Jatamansi, Kutki, Atis, Bis jara, Bishma, Nirmasi, Dhupi, Nagbeli,
Padamchal, Panchaule, Yarsagumba, Silajeet, Gucchi chyau, Somlata, Satuwa, Sunpati, Laghupatra,
Sugandhawal, Seabukthorn, Olive, Deodar, etc
• NTFPs/MAPs of Mid Hill: Timur, Tejpat/ Dalchini, Chiraito, Pakhanbed, Loth salla, Rudraksha,
Kachur, Ritha, Majitho, Titepati, Dhaturo, Kuchila, Asuro, Sugandha Kokila, Indrayani, Bojho, Ban
Lasun, Ghiu Kumari, Thulo Okhati, Bhyakur, Allo, Lokta, Jhyau, Alaichi, etc
• NTFPs/ MAPs of Terai: Harro, Barro, Amala, Satawari, Sikakai, Sarpagandha, Pipla, Tetepati,
Khayar, Asuro, Bhyakur, Banmara, Gurjo, Bel, Rajbrikchha, Jiwanti, Dhaturo, Ghodtapre, Kantakari,
Neem, Bet, Chhatiwan, Musli, etc
• The commercial medicinal plants in the Terai region can be broadly divided into three categories
based on their harvesting level: over harvested, under harvested and not harvested.
• Prominent examples of over-harvested medicinal plant species are Alstonia scholaris (Chhatiwan),
Asparagus racemosus, Rauvolfia serpentina, Curculigo orchioides (Kalo Musli), Ephemerantha
macraei (Jiwanti), Piper longum, Tinospora cordifolia (Gurjo), etc
• In many cases, the extent of exploitation is so severe that many species have become rare in many
localities. Despite fair availability, some under harvested medicinal plants of Terai’s forests are
Phyllanthus emblica, Terminalia bellirica (Barro), T. chebula (Harro), Aegle marmelos, Cassia
fistula (Rajbriksha), Holarrhena pubescens (Indra Jau), etc.
• Another category of medicinal plants that are available in wild in considerable quantities but their
commercial harvesting have so far not been notably initiated are Butea monosperma (Palas),
Mallotus philippensis (Sindure), Justicia adhatoda (Asuro), Tribulus terristris (Gokhur), Woodfordia
fruticosa (Dhairo), etc (Sukla, 2002).

37
 • Chiraito in mid-hill especially in eastern Nepal has highly suffered from wild collection without
getting maturity and huge quantity of trade, although its cultivation is also started to limited scale.
Price of Chiraito was almost five times in late 1990s than at the present price (NRs. 125/kg) that
encouraged high exploitation of the species in the mid-hill.
• Chiraito have very few other rivals in the mid-hill as regards its price. Other species are moderately
affected due to commercial collection from wild.
• Currently, few species such as Tejpat, Sugandh Kokila, Rudraksha, Timur, Ritha, Alaichi, etc has
been brought under cultivation. Species such as Allo, Lokta, Argeli, etc are being managed by some
CFUGs through in situ conservation activities.
• Nepal, some FUGs are already collecting and managing NTFPs. Few examples include resin tapping
around Dhankuta, production of Jatamansi in Humla, cultivation of Chiraito and Argeli in
Ramechhap and some eastern districts and management of Lokta in Dolkha, Parbat and Baglung and
Syangja.
• However, still huge efforts are necessary to achieve active participation of communities in the
management and utilization of so far underutilized or neglected many non-wood forest products.
• Traditional harvesting system generally implies cutting or uprooting of herbs. This practice is
believed to be serious as annual harvests in a given area are declining and people have found it more
difficult to collect the products.
• Additionally, the growing period in highland areas (where the herbs and medicinal plants are found)
is short, generally from June to August, after which, due to a rapid decline in the temperature, the
plants go into hibernation. This is the time when herbs and medicinal plants are collected and the
time when livestock are grazed in large numbers on highland pastures called patan.
• Unmanaged grazing and trampling effects of livestock, early harvesting of the resources, and often
over-harvesting are the main threats to sustained supply of NTFPs. In simple terms, there is no
supply management, and harvesting is not carried out in a scientific way; these are both major
threats to the continued existence of herbs and medicinal plants.
• The existing methods of harvesting are extensively unscientific leading to total damage of NTFPs
and deterioration of the habitat in many cases.
• Pre-harvest operation, harvesting and strategic planning for complexity of harvesting (e.g. multiple
harvest and simultaneous harvest of multiple products) and post harvest treatments are the vital
activities for NTFP management and utilization for perpetuity.
• The improvement in tools and techniques and dissemination of sparsely available best indigenous
practices on NTFP management to wider communities (i.e. actual resource managers) is also
necessary for sustainability and livelihood support of poor.
The following have been perceived problems on NTFPs harvesting/ production in Nepal:
• Improper harvesting of whole natural/wild stock of plants, including roots and seeds, before they have
chance to produce next generation
• Harvesting of natural/wild species before they produce flowers and/ or fruits, also reducing the chances
of a next generation
• Improper post-harvest treatment of collected MAPs or plant parts (cleaning, drying, grading, storage,
etc) and adulteration of collected items
• Haphazard and heavy collection (i.e. beyond the limit of sustainable harvest) from marginal or
ecologically sensitive areas
• Lack of rotational collection practice and maximum collection from nearby open access areas
• Inconsistent supply of quality raw materials and scattered resource availability.
• An important factor that influences the quality of the raw NTFPs, especially MAPs, is the time at
which it is harvested.
• The leaves are usually gathered throughout the growing period. They are picked either singly or the
entire stem is cut off and the leaves are separated afterwards. The leaf should be healthy, free from
diseases, insects and pests and clean and dry.
• The aerial or top parts of the plant are collected with the flower-bearing stem just before or at the
beginning of the flowering stage. Fruits and seeds are collected when they are mature.

38
The following have been considered as the technically accepted methods among NTFP experts for the
product harvesting:
• Root and stem of the plants are generally collected from September to March. Some precautions are
necessary during the root/ rhizome collection with a view to achieve sufficient regeneration of the plant.
• For this purpose some part of root, stem or tuber should be left in the ground. Generally rotation of 4
years is appropriate for such products. eg: Kutki, Sarpagandha, Jatamansi, Pakhanved, etc
• Bark should be collected during winter season or before March. It is not good to collect bark at the time
of leaf sprout. In the case of bark, harvesting should be made from lesser than one third part of
harvestable bole which is generally considered above 1 m above ground surface below 15 cm diameter.
Rotation for bark harvesting should at least be of 4 years. eg. Dalchini, Kaphal, Kaulo, Chhatiwan etc.
Leaves are generally collected before the flowering period, each year. In case of shrubby plants leaf can
be collected by cutting branches; eg: Taxus, Digitalis, Belladonna, Tejpat etc.
• Fully bloomed flowers are collected during dry season. eg: Simal, Dhayero, Chamomile, Pyrethrum,
• Fruits should be collected after maturity, generally at the time of ripening. eg: Amala, Harro, Barro,
Badhar, Pipla etc
• Seeds are collected after full maturity of fruit or before breaking down of fruits. eg: Sarpagandha, Neem,
Timur etc.
• Proper time of collection is very important to ensure renewal of the resource. Malla et al (1995)
points out that suitable collection period in case of whole plant harvesting is when fully matured;
for bark and leaf at the onset of blossoming; and for flowers and seeds at the time of flowering and
maturity.
• Rotational collection practice with period lapse ranging from one years to more (lesser for leaf,
fruit, flower yielding species and higher for root, tuber, rhizome, bark yielding species) is also
necessary to ensure regeneration.
• Malla et al (1995) quoting the economic mapping survey (supported by FRIS project) also
recommends that amount of product harvesting in case of roots, rhizomes, bulbs and whole plants
should be 30 % of available stock; for stems, twigs and leaves, 50- 60% and for flowers and seeds
up to 90 %.
• However, NTFP experts vary in their view about proportion of stock to be kept intact to ensure
regeneration; e.g. Rawal (2058) recommends harvesting of 75 % of total NTFP stock (in
wholesome for all species) while Parajuli (2001) suggests for up to 90 % but keeping sufficient
rotation period (in an average of 4 years for root, tuber, rhizome, bark yielding species) for
regeneration purpose
Three Important steps for sustainable harvesting of NTFPs in Nepal ( ANSAB recommendation):
1. Increase the sustainable supply of NTFPs by promoting the management and sustainable harvesting
of NTFPs by harvesters
2. Explore international market potential and encourage export business to Europe and America before
promoting more processing enterprises (for essential oils and Ayurvedic medicine)
3. Revise NTFP related National Policy to support the harvesters and local entrepreneurs.
When is Best to Harvest Jatamansi?
• As it is easy to pull or dig up the plants during Summer.Harvesting in Summer is also detrimental to
the remaining plants and propagules as most of them decay after the harvest during the rainy season.
Finally when Jatamansi is harvested during the beginning of its growing season (Summer), its annual
yield is reduced.
• The quality of Jatamansi harvested in Autumn was found to be better than that harvested in Summer.
The Jatamansi harvested in Autumn has low moisture content, is less likely to be damaged by fungi
and other factors, and produces heavier high quality essential oils. The Jatamansi harvested in
Summer contains high moisture, is likely to be damaged by fungi, and produces poor quality
essential oils. Therefore, Autumn is recommended as a more appropriate season of harvesting from
the biological point of view.

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Unit 6: Resource Assessment of NTFPs
Introduction to Resource Assessment
Over 25 yrs of CF in Nepal:
• More than 15000 FUGs;1.2 million ha of forest handed over
• Inventory mandatory for OP preparation – used for monitoring
• Many guidelines and methods for the inventory are available, devised separately by INGOs/ NGOs/
projects and DoF (Inventory Guidelines, 2004)- now amendment process
But problems in Inventory system:
• Institutional capacity of DFO not adequate – therefore growing backlogs of OP amendment
• Field application of the Inventory Guidelines shows they are inflexible
• Inventory not directly relevant to local needs: focuses on timber, but needs are multiple products
• Biodiversity objectives not reflected in inventory process – especially habitat protection and species
biodiversity – e.g. NTFP and wildlife – but CFUGs, though their protection has led to improvement
of biodiversity, leading to multiple product flows.
Conceptual distinction between forest inventory and resource assessment:
• Forest Inventory mainly focused on measurement of trees – more use in DoF for monitoring
• Resource assessment – gives holistic status of different resources: land, water, soil, wildlife, NTFP
as well as forest
• Resource assessment supports to address the needs of community
Meaning of inventory
 A detailed list of all the items in stock or itemized record or report
 Inventory is a list for goods and materials, or those goods and materials themselves, held available
in stock by a business. ...
 Inventory (accounting) the value of a firm's current assets( Forest current assets) including raw
materials and work in progress and finished goods)
 The stock of an item on hand at a particular location or business; A detailed list of all the items on
hand; the process of producing or updating such a list;
 To take stock of the resources or items on hand; The quantity of goods and materials on hand
waiting to be sold/harvested Value of a business' raw materials, work in process, supplies used in
operations, and finished goods.
 Attribute or aspect of natural environment, forest health or resources, identifying an environmental
issue of concern
The importance of inventory
• In order to make informed decisions about the management and development of NTFPs, it is
essential to gain a sound knowledge of the resource - What is there, where, and in what quantities?

Scope of NTFP Inventory?

Inventory for NTFPs is a rapidly growing field of considerable interest to people working across a wide
range of disciplines and varied contexts. There is a growing body of experience
NTFP inventory at three scales:
• national policy formulation;
• forest management planning and
• As a component of community-based livelihood initiatives.
Classification of inventories
There is no single technique for assessing and monitoring NTFPs, because of the variety of products. The
appropriate methods therefore depend on the objectives of the inventory. The following considerations are
important.
 to identify a management plan for an area, or
 it may be the conservation of an endangered species, or
 the development of specific products for marketing and processing.

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Spatial scale: Inventories may be done at a local, district, national or regional scale, depending on their
objectives. Local-level inventories are usually management or market oriented, while regional inventories
are usually for planning or policy formulation.
Current Inventory Provision
 Community forestry inventory guidelines of CPFD, 2004, Service providers use CPFD guidelines
but CECI; NSCFP prepared different Guidelines for selected species.
o Rabindranath & Premnath (1997), and FAO (2001) have given methodologies of inventory for
biomass studies
o There are many more including FAO resource assessment (focus on NTFPs)
 Many variations and apparent contradictions and inconsistencies across the different existing
methods
 None are ‘wrong’ - different ones can be selected according to need and capacity in each case
 Need in CF is for locally appropriate pro-poor and biodiversity resource assessment methods

Existing Plot Design in CPFD guideline

Fig. Sample plot sizes for CF inventory (CPFD, 2004)

Current Problems of inventory process

• The present inventory guideline has little been related with the management objectives of a
particular area of forest. Therefore, inventory and management guidelines should be separate.
• Single formula based recommendation of allowable cuts is not appropriate (It will be better
addressed by a series of local species growth tables for each physiographical zone).
Inconsistency observed in stratification of forest, plot size, plot shape, sampling intensity, annual
allowable cut, annual increment.
Conventional Inventory Problems with NTFP
• Seasonality - many NTFPs are seasonal but timber accrues slowly over time consequently forest
inventory methods do not cope well with seasonality.
• Mobility - animals run away, fruit falls off a tree and rolls down a hill but trees are static.
• Quantification of yield for non-destructive harvesting - most of the methods for determining timber
yield from a forest are concerned with the harvesting of entire individuals. For NTFPs often only a small
part of the individual is harvested.
• There is little theoretical background for determining harvesting levels for parts of a plant.
• It seems that the simple adoption of forest inventory practice is not going to meet the needs of NTFP
inventory.
Therefore, some characteristics of NTFPs make their inventory different from other products

41
 • High heterogeneity of product: Each additional species has a different distributional pattern.
Sampling methods used for quantification (Visual estimation, measurement of height, length, or
girth, measurement of weight, counting etc) are consequently diverse.
• Their seasonal nature. Many products are available only during specific seasons;
• varying spatial distribution and abundance of products necessitates different sampling intensities
for the assessment,
Need for an improved inventory process
• Less technical and more adaptive methods in the local conditions is required.
• Flexibility is needed in the overall inventory practice. Some thumb-rules need to be developed after
rigorous practical experiences/ studies.
• The CFUG does not prescribe the silvicultural system at all, and only provide the percentage of
annual increment that should be harvested.
• DFOs often allow only what s/he think is the right amount on ad hoc basis
• Urgent need to have easily adoptable methodologies, but on the other hand, it is difficult and
practically impossible to prepare guidelines for each and every species of NTFP, as there are
thousands of species.
• People’s participation in inventory/ local resource person development
Recommended Improved Process (applicable to both timber as well as NTFP species, especially in
hills)
The steps are:
1. Reconnaissance (more criteria are mentioned for clear cut observation to carry out the
reconnaissance, like existing trails, local and commercial plant species, herbarium of unknown
species and their photography for further identification, etc.)
2. Stratification (clear-cut basis mentioned for stratification, such as flat, undulating, hilly, rocky, river
valley, disturbed, undisturbed, vegetation types, etc.).
3. Trail / Transect selection and marking (Trails should be laid in the steep hills along contour or
within the limit of the altitudinal zone; transect could be straight or winding. Length of transect
should be 1 Km for the forested area and 0.5 Km for the scrub and alpine meadows. However, the
number of transect in each area will depend on the size of block/ strata. The beginning and end of
transects should be marked both on the ground and on map, for which GPS is strongly
recommended. If GPS is not available, some permanent landmark can be taken as reference).
4. Data collection (separate formats need to be developed to include shrubs, climber, herbs, altitude,
aspect, soil characteristics, presence of perennial water source, grazing, uprooting, fire,
topography, associates of survey species, etc.)
5. Data analysis and interpretation
Recommended Process

42
Comparison: GoN Guidelines and Recommended Process
Existing Process
Nested design (compact sub-plots)
Plot size: 25m X 20m (trees); 10m X 10m
(pole) & 5m X 5m (regeneration)
Sampling intensity: 0.05 to 1.5%
Stratification: basis of stratification is limited
(regeneration, species, natural boundary, etc.)
Reconnaissance: Not specified clearly
Instruments: Simple compass, more time
taking, more chances of error (closing error)
Recommended Process
Flexibility of design (circular or rectangular plot & flexibility of
scattered sub-plots
10m X 10m (tree), 5m X 5m (shrub) & 1m X 1m (grass/ herb.
Accordingly the circular plot
At least 0.1% (in specific case may be taken higher intensity)
There are many bases of stratification, e.g., flat, undulating,
hilly, rocky, river valley, disturbed, undisturbed, vegetation
types, etc
Clear cut observation to carry out the reconnaissance, like
existing trails, local and commercial plant species, herbarium of
unknown species and their photography for further
identification, etc.
Use of GPS for boundary and block delineation is quick and
easy.
43
Challenges in NTFP Inventory
• It is evident that there is a need for increased application of biometric principles in NTFP resource
assessment; however it is necessary to first understand the nature of the problem. The following is a
short list of the problems encountered by practitioners working with NTFPs:
• Difficulties with traditional forestry designs
Lack of properly tested sampling designs tailored for NTFPs
• Few NTFP mensuration techniques available - or at least not accessible to practitioners
• Little cross-disciplinary exchange of ideas or techniques
• Difficulties, conceptual and practical, in the determination of sustainable yields
Sampling techniques
• Probability Sampling
• Non probability Sampling: e.g Purposive sampling in the case of NTFPs
The most commonly used techniques are:
• Simple random
• Stratified random sampling
• Cluster sampling
Systematic sampling
Resource Quantification
• NTFPs: a vague term, it encompasses
– Varying life forms and parts used
– Seasonal nature: flowering, fruiting, animal nature etc
– Multi-seasonal-variation in period of production
• No adequate technical know-how, especially with traditional foresters
• Most of the cases, Volume table, Biomass table not found
Resource Quantification procedure
1. List of SPP
2. Categories on the basis of
a. Commercial use
b. Cultural and subsistence use
c. Potential for commercial use
3. Distribution pattern based on PRA/technical MAP
4. Show Species name, Parts use, History of use and amount collected in different periods
Resource Quantification
• Composite circular sample plots (of 25, 2 and 1 m ) e. g. for Daphne
• in 25 m circle all tree species including lokta recorded and measured
• In 2 M radius only NTFP species are measured
• In 1 M regeneration recorded
• Quadrant vegetation survey
• Intensity of measurement varies with size of the area, density and variation
• Determine minimum quadrant size
Procedure:
• Growing site selected (Elevation, Altitude, and distribution pattern)
• Quadrant of desired size placed
• No of plants counted and size measured
• Harvesting of stock from the quadrant
• Measure yield per quadrant aerial/subterranean)
• Estimate yield per unit area/Total yield/AAH

Procedure:
1. Identification of species habitats

44
 2. Asses variation in distribution, density, abundance, productivity and other plant association by laying
transect from top to bottom of the habitat
3. At each 10 m elevation, horizontal sampling line are set up and 1m *1 m sample plots are set up
4. In each sample plot no of individuals of the species and other associate species are counted and their
p cover is recorded
5. Each rossette of leaves and root system considered as an individual plant
6. In each site, data analysed to assess the relative density etc.
7. Samples of rizomes are collected, cleaned, dried from each unit area (1m*1m) at 10 different sites to
determine biomass and productivity e. g. for species: Picorrhiza scrophularifolia and Nardostachys
grandiflora
Techniques of inventory and quantification on the basis of parts used
• Inventory of species - Used parts Root and Rhizomes - Suganhawal-valeriana jatamansi and
Jatamasi-Nardostachys grandiflora)
• Inventory of species - Used parts Fruits ( e.g. Bel-Aegle marmelos, Pipla and Timur)
• Inventory of species - Used parts Whole plant ( e.g. Chiraito, Argeli etc.)
Inventory of species - Used parts Root and Rhizomes -Suganhawal, jatamansi)
• Transect walk- participatory boundary and delineate the area
• Locate species on the map- basis is blocks, availability and management objectives
• Find out effective area and set sampling intensity (0.5 to 1.5%)
• Define plot size (if herb plot is 1 Sq m)
• Calculate no of plots e.g if the effective area is 4 ha and sampling intensity is 0.5% then
No of plots = 4 ha X 0.5 = 4000X 0.5 = 200
Size of the plots 1mX 1 m
• Dig out the root/rhizome and take fresh weight
• Dry the product for one week and weight again. if it is 6 kg in all the sampled plots (100 sq.m.)
• If the effective area is 1 ha then the production will be 600 kg
Inventory of species - Used parts Fruits (e.g. Bel-Aegle marmelos, Pipla and Timur)
• Transect walk- participatory boundary and delineate the area
• Locate species on the map- basis is blocks, availability and management objectives
• Find out effective area and set sampling intensity (0.1 to 1.%)
• If the species is found in 20000 sq.m. area then the sampling will be in 100-200 sq.m)
• Define plot size (if herb, plot is 1 Sq m, shrub - 25 sq.m and pole 100 sq.m.)
• Calculate plot number on the basis of effective area, sampling intensity and plot size
– e.g. effective area 3 ha, sampling intensity is 0.1% and plot size is 100 sq.m then
= 3000 sq.m. X 0.1 % = 30 plots
10m X 10 m
Principle difficulties in NFPs Quantification
Review process concluded that the principal difficulties with NTFP quantification are:
• The variety of life forms and population distributions of forest products mean that traditional
forest inventory techniques cannot be easily adapted and may not always be appropriate for use
with NTFPs.
• There is a lack of properly researched NTFP-specific sampling designs.
• There is little guidance available on development of appropriate NTFP measurement
(mensuration) techniques.
• There has been little or no application to NTFPs of sampling designs tailored to monitoring
needs.
• Lack of a strong theoretical basis to NTFP resource management.
• There has been little application of novel sampling strategies to NTFPs.
• There has been little cross-disciplinary exchange of ideas and methods suitable for use with
NTFPs.
• There is no service that provides effective communication of advice to field workers and
communities

45
 Integration of NTFPs into CF
• Mandatory: Incorporation of NTFP management plan into community forestry operational plan
• Revised CF operational guideline, 2009
– CFOP must prescribe and keep provision of harvesting and selling of NTFP on sustainable
basis
Integration of NTFPs in CFOPs
 Timber focused approach of CF OPs
 Lack of knowledge and skills on NTFP inventory
 Scientific research not adequate
 Lack of technical know-how regarding methods of propagations, harvesting, grading and processing
 Indigenous knowledge /skills not adequately recognized
 Type and Area of Potential CF : Insufficient area of CF for enterprise oriented resource management
(accessibility and manageability) – need revision of Forest Rules 26
 NTFPs Plan: The contents of OP limits scope and opportunities for NTFP management within CFs
(Forest Rules 28)
 Raw materials supply for CFUG Forest enterprises: no clarity that FUG can operate by sourcing raw
materials from other sources.
Constraints of NTFP Management
 Processing (value add) and storage facilities at local level
 Lack of proper regulation and extraction of NTFPs and establishment of Enterprises
 Lack of information and technology with the communities
 Co-ordination among MFSC (DFO) & private firms and companies.
 No separate division for NTFP promotion.
 Existing policy not updated
 Unscientific royalty rate: Arbitrary determination of royalty rate e.g. Yarsagumba, Pakhanbed
 NTFPs traded in Fake Name e.g. Lauthsalla as Talispatra, Kuti as Katuko, Silajit as Khot etc.
 Multiple Taxation (up to 200%) by VDC, DDC, Chamber of commerce
 NTFP assessment lacking
 No monitoring system of NTFP
 Indigenous & scientific knowledge not documented
 No backward and forward linkage
 In-situ and ex-situ conservation techniques applied are very poor
 Remoteness and inaccessibility
 Collection method, season of collection & storage techniques not followed.
 Lack of infrastructure.
 Technology unknown.
 Agroforestry model not demonstrated or replicated

Unit 7: Processing and value addition of NTFPs

Processing of NTFPS
• Processing is a process of converting raw material into semi or finished product for marketing and
wider application/use.
Why is Processing?
• To reduce the volume of raw materials for easy transportation
• To add the value of product and quality product
• To market the product (import and export)

46
 • To provide employment opportunities
• To obtain maximum yield in some cases
• For easy application and use of the plant/plants
• Products
• To increase longevity and strength of material

HOW TO PROCESS?
PROCESSING OF MEDICINAL PLANTS:
Taxus baccata ----- harvested ------ leaves and twigs ----- Pulverized ----- Plant material ------ sieved -----
Charged in the Still ---- extracted with menthol---- methanolic Extract—filtered---- filtrate ----
concentrated to obtain taxus resin (a material of export)
PROCESSING OF AROMATIC PLANT:
Jatamasi ---- harvested ---- shade dried ----- brought to factory --- dried----dedusted ---- charged in the
still ---- distilled ----- distilled ----- oil + water –separated ---- essential ---- soil ----- dried on dehydrant ---
Essential oil ( A product of export)
THEORY OF PROCESSING:
THE PROCESS OF EXTRACTION DEPENDS ON THE SUBSTANCES TO BE TAKEN OUT:
Examples:
• Potato slices when left in cold water, lots of white starch grains are deposited in the dish.
• Sugandh kokila seeds when passes between pieces of paper oils (liids are deposited on the paper.
• Swertia chiraita stems when left in a bowel of water and left in a bowel of water and left over night.
The filtrate water in the morning is bitter.
• Meat while cooked in the kitchen the smell disfusses all along.
• These are some of the common examples of processing at home.
In the above examples:
• Potato slices have naturally hydrolyzed starch that gives monomers of sugars which dissolve in
water and in turn trap polymers of sugars i. e starch.
• Oozing out of oils from cells of seeds involves no chemical process but a physical (mechanical)
process only.
• Bitterness of water in case of chiraita is due to swertia compounds in water, that are of flavnoid type.
• Odorous compounds of meat, onion, garlic and spices co- distill in vapour of water present in the
stuff.

WHAT TO PROCESS?
Medicinal and aromatic plants and their different parts of health and personal care, value addition,
quality, export – import and marketing of products should be processed.
Tips from the market what to process
• Plant material must be available in abundance (wild, culivated)
• Product processed must have enough price that can cover he cost of production + expected return.
• Processing technique must be known
• Product quality desired by the buyer must be known
• Demand of the market must be enough to cover volume produced.

QUALITY ASPECTS OF PROCESSING:

Unlike our country, several advanced counries have regulations that control the movement of plant and
processed plant materials. Processed plant products are used as food, drug, cosmetic etc and controlled
accordingly.
International Standard Organization (ISO) has also given standard for these products. U.S buyers prefer
crude herbs and spices of ASTA (American Spice Traders Association) grade. Extracts of FEEMA
(Federation of Essential Oil and extract manufacturer association) and IFEAT (International Federation of
essential oil and aroma traders) or EEC (European Economic Community ) standard or AOAC
(Association of official analytical chemist) / FDA ( Food and Drug Adminitration) are required by buyers

47
of Europe and America. Essential Oil and extracts if required for pharmaceuticl preperation needs to meet
the repective pharmacopia standards.

7.1 Importance of Processing and Value addition

 Processing adds to the value of products and provides multi- products
 Leads to byproducts
 Reduces volume of raw materials-economic, easy transportation
 creates opportunities to employment, income generation and livelihoods
 provides opportunities to establishment of entrepreneurships
Processed products creates market- increased demand and supply
- converts raw material to finished products
- Attracts consumer
- Allow rural communities more involved in value addition and NTFP trade
- processing and value addition satisfy customers
- ensure greater financial return and generation of income and employment- e.g. banana flour, pickles,
chips, jam, juice, jam, sauce, dehydrated banana,, candy, fibric biscuits
- Organic farming and value addition are becoming more and more important.
- Storage, packaging adds value
Value addition in NTFP possess three major steps
A. Post Harvest Practice
B. Processing of NTFPs for producing intermediate products
C. Production of consumer goods

Post harvest technology is primary stage of value addition It involves four major tasks
a. Cleaning b. Grading c. Proper packaging d. Storage
In this stage 20 to 30 $ of the value can be added in the original price of the material.
Besides, Value addition also depends upon time and season of harvesting, maturity of the harvest crops
and parts of the plant product

7.2 Challenges and opportunities of processing and value addition

Challenges Opportunities
• skilled manpower, • Knowledge of international market
• proper training • market competition
• continuous flow of raw materials • Collection time, season of raw materials and
• technology for processing their parts
• quality and standard products • advertisement of processed products and value
• develop skilled person added
• chemical marker and chemical hot spots • customers satisfaction
• local processing • NTFP certification
• attractive packaging, required std labeling • Knowledge of international market
• research and development division in the
processing industry

Challenges in Value addition of MAPs

A. Raw material management and sustainability

Domestic enterprises are compelled to compete with the Indian Buyers in paying the price of MAPs.
Furthermore improper and immature harvesting of NTFPs is creating another challenge in quality of raw
materials for producing quality produce

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B. Technology/ and Technicians
Technolgy itself is a big challengein some of the MAPs industries. For example isolation of active
chemical constituents/ compounds from essential oils and extracts is yet to be introduced in the country,
Because of lack of know-how on commercially viable technology. There is a lack of trained man power/
technician for the industries and quality control of produce.
C. Market and Market Information.
Majorities of MAPs are sold at low price in Indian market because of inaccessibility to the world market
and price information.
D. Cost of transfer and transit
Majority of the MAPs zones are not accessible by road made cost of transfer of raw material and value
added products high. In addition transit cost to overseas market is also higher because of land locked
condition and compelled to rely on Calcutta port.
E. Legal Challenges
Regulatory provision of Nepal most often hinders the growth of NTFPs industry in particular to the
higher Royalty rates fixed in raw material and imposition of additional local taxes.
A. Unhealthy and tough competition in domestic market for consumer products.
The country is importing many products from neighboring countries regardless of its quality. This
situation is causing tough competition with low quality low price imported products in the domestic
market.
Value addition impacts
-customers satisfied
-increased demand
-increased market
-enhancement in income generation
-poverty alleviation
-Environmental conservation- org. farming
-guarantee of certified products sale

7.4 Role of entrepreneurs in processing/value addition

Continuous supply of raw materials
Locally primary processed material
Train skilled manpower
Support in marketing
buy processed products
develop business plan
equity distribution of benefits
create employment opportunities

Unit 8 NTFPs Management

Theoretical concept: - The process by which resources are allocated, regenerated, managed and
conserved over time and space meet the need and aspirations of human kind has been termed
resource management.
NTFP management entails wise utilization, strategic manipulation, or development of natural
resources to meet the basic needs of local community and enhance critical function of the
ecosystem they occupy.

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NTFP management comprises ecological, technical, social, economic, legal and political aspects.
It is the process of achieving one or more clearly defined objectives of management without
deteriorating the future productivity and without undue reduction of its inherent capacity and
un desirable social, economic , and environmental effects.
Importance of management.
• To fulfill the Government need, To fulfill the market need, To meet the subsistence of the
people, To increase productivity, To enhance generating employment, To generate cash
income, To conserve biodiversity, To conserve ecosystems, To conserve endemic,
endangered and rare species of flora and fauna,
PROCESS OF DEVELOPING PLAN FOR THE STAINABLE MANAGEMENT OF
NTFP.
STEP - 1
1. Identify the NTFP be managed, their uses and the people who are to manage them.
• Determine the NTFPs that are to be managed, define the uses, and determine the people
who are to manage these NFPs.
1.1 Which NTFPs are to be managed?
• All of their NTFPs or only some of them. Better to focus the efforts on a smaller group of
priority NTFP.
A community may want to include:-
• All NTFPs in the forest; - community involving on the conservation and sustainable use
of the biodiversity in a protected forest area.
• Those NTFPs that are the community feels are most important, most, valuable and or
most under threat.
• Those NTFPs for which a management plan is required by Government.
• Those NTFPs that the community is interested in selling under a "green” level.
• 1.2 What are the uses of these NTFPs?
• Subsistence uses:- a source of obtaining the necessities of life.
1.3 Who will manage these NTFPs? Who are the legitimate stakeholders ?
1.3.1 NTFPs users in the community:-
• all or only some sections of the community (men,women,ethnic group )
• specific user groups within the community (basket weavers ,midwives)
1.3.2 Other NTFPs stakeholders in the community:-

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 • other people in the community who are involved in collection ,processing , and
marketing of NTFPs but to a lesser extent than the user.
• Key decision makers in the community.
• People with specialized knowledge.
• Spiritual authority.
1.3.3 NTFPs users and other stakeholders outside the community:-
• Other communities that use the same forest area.
• Outside groups that the members of marketing chains.
• Government agencies.
• NGOs that work in collaboration with community.
• Private companies.
• Donor agencies.
1.3.4 Understanding how the users and the stakeholders interact:-
• Resource management decision grids.
• Venn diagram:- illustrate the levels of closeness and interaction between the main user
groups and other stakeholders.
• Flow chart: - the flow of product from forest to market and the main actors at each stage.
1.3.5 Which users and stakeholders do involve in decision making?
• primary stakeholders
• secondary stakeholders
1.3.6 Setting up an appropriate community organization to manage NTFPs: - key stakeholders,
membership.
STEP 2
Determine the community's rationale and goals for sustainable NTFPs management.
2.1 Rationale for sustainable NTFP management:
• community's requirements
• Government’s requirements.
• Certification requirements.
Goal:

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What would we like to see as an ideal future for our community and NTFPs?
• What are the main elements of the vision?
• How do we rank these elements in terms of their importance?
The goals should be expressed as either the observable impacts of NTFP management or the
process of management. The goals may be: ecological goals, social goals, economic goals.
STEP 3.
Document the community’s NTFP management system. It may be formal and encoded in a set of
rules or it may be informal consisting of a range of practices that have some association with the
NTFP.
3.2 When to document the existing NTFP management system:
• Outside parties. (Certifier, government), other communities (members of NTFP
association), parts of community who do not fully understand the existing systems.
3.3 How to document the NTFP management system.
3.4 What is known about the biology and ecology of each resource species?
• Where is the resource species located in the community forest area?

 What is its normal habitat; density in different area.

• How does resource species respond to disturbance?
• What is the growth form and how does it regenerate?
• How is its life cycle, how much time it spends at each stage? what are the causes of its
death ?
• How long is reproductive maturity? harvestable maturity and the rotation age ?
• Does it reproduce every year? What is the flowering and fruiting season?
• What is its average rate of reproduction, germination and maturity?
3.4.1 NTFPs management rules existing in the community.
3.4.2 NTFP management practices:
• Who harvests?
• Where so they harvest and why?
• When do they harvest?
• What do they harvest?
• What do they harvest?

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 • How much do they harvest?
3.4.3. The impact of NTFP management in the forest ecosystem.
3.4.4. The sustainability of the existing NTFP management system:
For example, the NTFP status 20 years ago, 10 years ago, and now, and then to project in to the
future under the existing management system. What do you expect to see 10 years and 20 years
from now?
STEP 4.
Evaluate the existing systems potential for sustainable NTFP management.
4.1. The potential for sustainability of the existing system:
• High potential ---lower inputs required.
• Medium potential---higher input required.
• Low potential -----higher input required.
4.2. Ecological predictions of the potential for sustainability.
Ecological attributes such as abundance, distribution, growth and reproduction of the
species as well as which plant parts are used, have enormous influence on a resource species
potential to be sustainably managed.
4.3 Social predictions of the potential for sustainability.
• The social aspects determine whether a community will or will not able to successfully
implement any plans of management.
4.4 Economic prediction of potentials for sustainability.
• The economic aspect is driving force.
• The community manage themselves the NTFP of high economic value.
STEP 5
Consider incorporating new approaches to NTFP resource management. Review the existing
rules and practices in the community for resource management.
5.1 The community should discuss:-
• Is the existing management rule good? If yes, keep them, no improvement.
• Are the existing management practices good? If best keep them, if no, determine best
practice.
• Should now rules or practices be developed?
The nature of approaches depends upon a number of factors:

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 • Rationale and goals for sustainable NTFP management.
• Potential for sustainability of the existing system.
• Level of demand verses level of supply.
• Capacity o f the community.
5.1.1 Destructively harvested NTFP resources;
• The plant or animal is destroyed at harvest.
• It becomes more important to understand its population structure, reproduction, density,
and distribution.
• Management becomes increasingly important for those that have low rate of reproduction
or growth.
• Delineating no harvest zones, enforcing no harvest seasons during reproductive time, and
enforcing sustainable harvest limits.
5.1.2 NTFP resources nondestructively harvested for their vegetation structures:
• Harvesting of non reproductive structures including exudates (resin, gums and latex),
leaves, bark, roots, stems and apical buds.
5.2 Quantitative approaches used in NTFP management:
1. Management zones, (where and where not to harvest )
2. Optimal harvesting practices.(how and when to harvest )
3. Optimal management practices.(all practices other than harvesting practices)
4. Current harvesting levels.(how much is being harvested at present)
5. Sustainable harvesting limits.
5.2.1 Delineating management zones;
• Delineation of the boundary of the management area using a participatory process.
• The management zones may include; No harvest zones:-where no harvesting of NTFP is
permitted. They may be permanent zones or may be rotating zones.
• Management zones;- in which other management practices besides harvesting /no
harvesting are specified.
• Protection zones;-in which presence the ecosystem’s functions and biodiversity including
spatial social, cultural, spiritual, historical or tourism values.
• The most popular medium for recording and communicating spatial information is the
map.

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 • Sketch mapping and scale mapping
5.2.2 Optimizing harvesting practices.
• Harvesting practices encompass how to harvest, who, where, when, and what to harvest.
Optimizing involves those practices that have the least negative impacts on resources
reproduction, vigor and growth or yield and quality.
5.2.3 Optimizing management practices.
• The practice that enhance reproduction and those that improves survival, vigour, growth
and NTFP yield and quality.
5.2.4 Assessing the current harvesting limit (the demand)
• Assessing the current harvesting level for sustainable or commercial uses can be useful
information for management as well as for business planning.
5.2.5 Estimating the sustainable harvesting limits (the supply);
• Scale mapping, Harvest records, Resource inventory, Yield study, Recovery time study
Regeneration study, Demographic study and set up permanent plots to study dynamics of
the resource population.
STEP 6.
Develop a plan for sustainable NTFP management.
6.1 What is management plan?
A management plan lays out the communities plan for achieving their stated goals for sustainable
NTFP resource management. Usually, it is recorded in a written document.
6.2 How to develop the management plan?
Qualitative and quantitative base line data are collected and later monitoring data are collected.
• Prioritize list of problems and analyze the problems and propose solution to them.
6.2.1 Plans for building the capacity of the community organization:
• Technical skilled training, participatory decision making, conflict management,
networking, administration and financial management, legal training, awareness rising.
6.2.2 Plans for the management of forest ecosystem.
6.2.3 Plans for addressing social aspect of NTFP and forest ecosystem management
(social, cultural, spiritual, historical)
6.2.4 Plans for the enforcement of management rules.

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Watcher, informal system of protection, Resource regulation, centralizing and controlling the
harvesting practices, granting permits for harvesting, granting permits for ownership of the
equipments, granting quota to enforce sustainable harvesting limit.
6.2.5 Plans for addressing legal issues.
6.2.6 The community's financial strategy:-
• Outlining the source of fund for implementation of the plan.
• Out lining the use of funds: -fixed cost, variable cost.
• break-even point analysis
• Predicting profits, reinvestment or equitable sharing.
6.2.7 Plans for monitoring, evaluation and feedback.
6.3 An example of community based NTFP management plan Frame work:-
• The current community situation, accompanied by a map.
• Goals for sustainable NTFP management.
• The community organization responsible for management and plans for building its
capacity.
• Plans for the management area. (Including its management zones), accompanied by a
map.
• A description of the NTFPs and the NTFP resource species targeted for management.
• Results of the resource inventory, animal population survey/NTFP yield study and AAC
• Plans for the NTFP management practices
• Plans for the NTFP ecosystem management.
• Plans for addressing social aspects.
• Plans for addressing policy or legal aspect.
• The community financial strategy.
• Plans for monitoring and evaluation and feedback.
7. Implement and monitor the management plan.
7.1 Develop a monitoring plan:-
• Select monitoring indicators of inputs, process, outputs and effect.
• Decide methods of measuring monitoring indicators.

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 • Develop a plan for monitoring and evaluation.
7.2 Methods of measuring monitoring indicators:
• Existing records, House hold survey, PRA, Direct observation, Qualitative methods.

Unit 10: Policies and Practices for Conservation of NTFPs Species

10.1 Policy and regulation for NTFP conservation (National)
What is Policy?
 A guiding framework which provides the basis to make right decision.
What is the NTFPs conservation policy?
Comprehensive outline for sustainable management of NTFPs
 NTFPs policy is more resource base but has greatly implication of social and economic dimensions
Details of threatened Species
List of Threatened Plant Species by IUCN:
 12 Species are Endangered
 11 Species are vulnerable
 22 Species are Rare
 02 Species are indeterminate
 05 Species are insufficiently known
 07 Species are threatened
 01 Species Ex? category

Threatened NTFPs in Nepal

- Forest Regulation 1995 ( Amended 2001) listed 10 Medicinal plants in threatened categories
- Conservation Assessment and Management Plan Workshop (CAMP 2001, Pokhara) recommends
51 MPs in threatened categories.
- 6 MPs are listed in CITES Appendices as an Endangered plant Species.

Evolution of NTFP Policy in Nepal

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Policy Review
Relevant Policies for NTFPs:
1. Seventh Five – Year Plan ( 1985 -1990)
2. The Master plan for the Forestry sector (1989)
3. Eighth Five Year Plan ( 1992 – 1997)
4. Agriculture Perspective plan ( 1995 – 2015)
5. Ninth Five Year Plan ( 1997 – 2002)
6. Tenth Five Year Plan (2002 – 2007)
7. Forestry Sector Policy, 2000
8. Non – Wood and Medicinal Plants development Policy, 2004

Policy Framework
Master Plan for the Forestry Sector (1988)
 A comprehensive strategy for 21 years
 Medicinal and aromatic plants – one of the major program
Special Area Development Program (SADP, 1998/99)
 MAPs, one of the major components of SADP
 MAPs in 25 mountainous and remote mountainous districts of Nepal.
The National Conservation Strategy (NCS, 1987)
 Sustainable extraction of medicinal plants
Nepal Environmental Policy and Action Plan (NEPAP, 1993)
 NTFPs as source of income in rural communities
Production of NTFP resources
Herbs and Non-timber Forest Products Development Policy, 2004
 Promoting the cultivation and domestication of herbs
 Sustainable harvests from both wild and cultivation
 Processing of the products and their marketing.

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  Promotion of people’s participation,
 Granting facilities for herb cultivators, processors and traders,
 Provision of training and awareness.
Regulatory Frameworks
Forest Act 1993 and Forest Regulation, 1995
 Government managed forests
 Community forest
 Leasehold forest
 Religious Forests
Environmental Protection Act, 1997 and Rules, 1999
 Initial Environmental Examination (IEE)
 Environmental Impact Assessment (EIA)
Policy Tools and instruments
 Forest Act 1993
 The Forest Regulation of 1995
 The royalty rates on number of NTFPs
Permit regimes
 Ban on collection of Panchaunle (Dactylorhiza hatagirea, Jatamansi (Nordostachys jatamashi),
Jhyau (Parmelia species),Lauth salla (Taxus baccata), Sarpagandha (Rawolfia serpentina),
Silajeet ( Organic exudate), Sugandhakokila (Cinamomum galucescens), Sugandhawal
(Valeriana jatamansi) and Talis patra (Abies spectabilis)
Forest act of Nepal
Forest act
 Forest act 2049 and regulation 2051 are the overall policy instrument and basis for the forest
protection and management.
 Act and regulation provide framework for conservation, collection and trade of NTFPs from
both nationally managed forests and private owned land.
 In addition, Act (article 70) has given the right to ban certain spp (both tree and NTFP ) if they
are threatened.

Regulatory Framework – international

 NTFPs under CITES lists in Appendix I,II and III
 Conventions - The Convention on Biological Diversity
 the conservation of biodiversity
 the sustainable use of its components, and
 the fair and equitable sharing of the benefits arising out of the use of genetic resources.
 Trade Related Aspects of Intellectual Property Rights (TRIPS,1994)


10.2 CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)
History
1963: Recommended CITES convention;
1973, March 3: Representative from 80 countries agreed on CITES convention USA, D. C.
1975, July1: CITES enforced;
1975, June18: Nepal received membership;
2007, June 24: Solomon Island became 171th member.
There are 25 Articles and three Appendix in CITES convention
1. What is CITES
 An internationally agreed policy guideline for cooperation and collaboration among nations to
prevent further decline in wild population of animals and plants.
 Framework was formulated in 1973 and entered into force in 1975. Nepal is a signatory country.
 To date More than 170 countries implement CITES

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2 Policy objectives of CITES?
 Creating enabling environment for international cooperation to protect endangered wild flora and
fauna against over-exploitation through international trade.
 Providing framework for trade regulation of wild flora and fauna.
Relevant CITES Articles
Article 2: Fundamental Principle;
Article 3: Trade rule for Appendix I
Article 4: Trade rule for Appendix II
Article 5: Trade rule for Appendix III
Article 6: Permits and Certificates
Articles 8: Disposal procedure of possessed / confiscated items.
Article 9: Management and Scientific Authority.
Article 11: Conference of Parties (COP)
Article 15: Revision of Appendix I and II
Article 16: Revision of Appendix III
Article 17: Revision of CITES Convention rules
CITES listed NTFPs
Following MPS require CITES certificate for Export / Re-export (Valid from 3 May 2007)

Nepali Name English Name Scientific Name CITES Appendix

1. Sungabha Orchids Paphiopedilum insigne I

2. Sungabha Orchids Paphiopedilum venustum I
3. Sungabha Orchids Orchidaceae II

4. Bhyakur Dioscorea Dioscorea deltoidea II

5. Kutki Gentian Picrorhiza kurrooa II

6. Jatamasi Spike Nard Nardostachys grandiflora II

7. Sarpagandha Rauvolfia Rauvolfia serpentina II

8. Mirke, Milk weed Ceropegia pubescens II
Lahara
9. Siudi - Euphorbia fusiformis II

10. Loth salla Himalayan yew Taxus wallichiana II

11. Bhote - Gnetum montanum III

lahara
12.Kyasher Himalayan yellow Meconopsis regia III
poppy

CITES categories
To enlist the species, Appendices are the fundamental principles which are in three categories:
 All together 5000 animals and 2900 plant species have been listed in CITES appendices
Appendix 1
 Shall include spp threatened with extinction which are or may be further affected by trade.

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  In Nepal there is no plant spp in this appendix but wild fauna like one horned Rhino, Asiatic
elephant etc are in Appendix 1
 Covers almost 600 animal species and 300 plant species
 Species of this category can be transport/trade if importer and exporter countries agree.
 But purpose can only be conservation education.
Appendix II
 Includes all species which are not threatened now with extinction but can be extinct if trade is not
regulated
 Seven plant catteries are included in this list i.e. all species of orchidacea,
 See the poster and book for detailes
 Trade is permissible if management authority of country of origin issues certificate on the
recommendation of scientific authority.
 About 4000 animals and 28000 plant species are listed under this category.
Appendix III
 Shall include all species which member countries identify as being subject to regulation with its
jurisdiction for prevention of exploitation and need cooperation of the parties in the control of trade.
 Plant species Gentum (Gunsi), Mangolia (Chanpa) etc are in this category.
CITES provisions
 About Regulation of trade, management and scientific authorities, measure to be taken by parties
 Please read in website or booklet full part of the convention.
Criteria for Listing Appendix 1
Biological Criteria
 Small wild population(<5000 individuals)
 Distribution in restricted areas(<100000 KM2)
 Population declining rate is high(50% in five years)
 It is likely to meet one of above within five years
Trade related Criteria
 It is known to be trade
 High market demand
Scope of CITES
 Trans boundary cooperation is needed
 Inter sectoral coordination is demanding
In Nepal
 27 mammals, 9 birds and 3 reptiles have been protected by NFWCA ( National Park and Wild life
Conservation Act, 1973).
 Two NTFPs species have been totally banned and 9 have been banned for transporting raw
materials
 4 Tree species are banned for cut, transport and trade from private sector.
 12 species of plants are under the CITEs categories.
 Out of which 7 are under II and remaining in III
Trade regulations of NTFPs
 Includes collection permit, royalty and taxes structure and certificate (out going letter) to transport
NTFPs
 Sustainable NTFPs management is the Principle objective of Collection permit given by DFO and
CFUGs within their jurisdiction area.
 However, in practice collectors collect first and local trader take permit for fulfilling the formality.
 District forest office give out going letter of all NTFPs to transport up to the destination.
 However, if NTFPs are listed to CITES appendices CITES management authority need to issue
certificate to export beyond the country boundary
CITES Listed Plant Database
Nepal:
Appendix I : 2 Species

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Appendix II : 132 Species
Appendix III: 5 Species
Global ( 171 Countries)
Appendix I: 300 Species
Appendix II: 28,000 Species
Appendix III: 290 Species (?)

10.2 Red data book

1. IUCN red List ? : “List of threatened species”
 IUCN : A leading conservation INGOs has been assessing conservation status of flora and fauna at
global scale.
 The IUCN red list of threatened species provides taxonomic conservation status and distribution
information on Taxa have been globally evaluated using the IUCN Red list criteria and categories
 Further, IUCN red list categories show an easily and widely understood methods for highlighting
those species under high extinction risk, so as to focus attention on conservation measure necessary
for their protection.
 The threatened Spp categories used in Red data book and red list (see on website)
2. Objectives
2.1 General
 Providing and explicit framework for the classification of spp according to their extinction risk.
2.2 Specific:
 Provide a system and process to know how red list categories have been formulated
 Provide the standard to classify in different categories
 Giving Taxa level information for further management intervention
 3 Criteria of assessing IUCN Red list categories of threat viz. CR: Critically endangered, EN:
Endangered VU: Vulnerable
3 Criteria of assessing IUCN Red list categories of threat
Categories: CR: Critically endangered, EN: Endangered VU: Vulnerable
Criteria/Category CR EN VU

A: Population More than 80% decline last 10 More than 50% decline More than 20% decline
reduction yrs last 10 yrs last 10 yrs
B: Extent of Less than 100 square KM area Less than 5000 Sq Km Less than 20000 Sq Km
occurrence area area
C: Population Less than 250 mature individual 2500 mature individual 10000 Mature individual
estimate and 25% decline in last 3 years

D : No of mature Less than 50 mature individual 250 1000

individual

E: Probability of 50% within the last 10 years 20% within 20 years 10% within 100 years
extinction

10.3 Conservation Assessment and and Management Planning (CAMP).

1. CAMP?
 Rapid assessment processes for determining the threat status of species in the wild.
 The CAMP process assembles a broad spectrum of expertise on wild and captive management of
the taxa under review.
2 Objectives?

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  Providing strategic guidance for application of intensive management information collection to
techniques threatened taxa.
 Giving a rational and comprehensive management within the context of the broader conservation
needs of threatened taxa.
3. Methods
 Conducting a workshop (18-20 January 2001 in Pokhara)
 Bringing together 10- 40 experts like wildlife manager, specialist group members, ecologists,
Taxonomists, field biologist, academia , representative from private sector, industrial, cultivators,
collectors, traders.
 They can evaluate the threat status of all taxa in a broad group
 This can be done for a country, geographic region to set conservation action and information
gathering priorities
 It also provides an opportunity to test the applicability of the new IUCN Red list categories.
 Taxon data sheet is the instrument to collect data on species information, Habitat, Global
distribution, Regional distribution, Global population, regional population, present status in IUCN
and CITES categories.
 Expert views and interaction is significant.
 The last CAMP was conducted in 2001 at Pokhara.
4 CAMP categories?
More or less similarity with the IUCN red list categories of threat but process and information collection
methods are different as indicated: The last Pokhara CAMP workshop identified some threat categories
are presenting:
 Extinction (EX): The taxon has already wiped-out
 Extinction in the Wild (EW): A taxon is extinct in the Wild
 Critically Endangered (CR): A taxon is facing with high risk of extinction
 Endangered (EN): Facing risk of extinction in the wild
 Vulnerable (VU): Towards the risk of extinction
 Near Threatened (NT): likely becomes vulnerable in the near future if population continue to decline
 Last concern (LC): Taxa with the least concern and No symptom of any threat
 Data Deficiency (DD): No data available for the direct and indirect assessment
 Not evaluated (NE): Taxa are not evaluated under any categories
Issues in sustainable management of NTFPs
1. Inadequate information on Resource stocks.
2. Inappropriate harvesting schedule and collection techniques.
3. Risk of Non- optimal harvesting.
4. In adequate market information, Monopoly and Price cartel.
5. Gap between Royalty rate, Market price and Biological potential.
6. Product adulteration.
7. Miss – match between Policy, legislation and field practices.

Gap in NTFP Management policies

1. Management authority pays little attention about Plant distribution , site quality , growth pattern, and
life cycle; while issuing collection permits.
2. Forest Management plans either lack adequate information on NTFP Resource Stock or pick-up
estimated figures;
3. Less concern about Bio- Physical environmental impact from collection of MPS;
4. Gap between Royalty rate, Market price and Resource Scarcity;
5. Ignorance or violation of legal procedures for personal benefit

Suggestion

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 10.4 NTFPs Promotion Institutions in Nepal
1. NTFP and Herbal Industries
 Singha Durbar Vaidhyakhana, Singha Durbar, Kathmandu
 Nardevi Ayurvedic Hospital, Nardevi, Kathmandu
 Sri Krishna Aushadhalaya, Balkumari and Bagh Bazaar, Kathmandu
 Sanjiwani Jadibuti Byadashala, Sanishare, Jhapa
 Gandi Chemicals, Balaju, kathmandu
 Kunang Tibetan Medical Hall, Chhetrapati, Kathmandu
 Natural Products Industries, Kathmandu
 Cosmos Herbal Products: A joint venture of Nepal – Japan established in 1996, which uses
ayurvedic formula to produce herbal cosmetics, health foods and drinks and herbal medicines.
 Dabur International
 Federation of Nepal Chamber of Commerce and Industries (FNCCI)
 Federation of Nepal Chamber of Commerce and Industries (FNCCI)
 Humala oil Pvt, Ltd. (HOPL
 Joint Nepalese- Italian Venture: To processes Taxus bacata (Decousey M., 1993)
 KAMPOU: KAMPOU is a Nepal and Japan joint venture company which is buying arghelo
(Edgeworthia gardneri), Manadher N. P. 1989, p 101 also known as Lokta to send semi processed
bark to Japan for paper making (Currency bills
 Range Village Distillation unit, Palpa: Making apple brandy but recently used to extract essential
oil from Jatamasi through steam distillation. (Hertg W. D. 19950) Natural Herbal Products
Industries:
 Shambala Aromatics:
 Himalayan Ginger:
 Amrit Ayurved Ausadhalaya, Palpa:
 Arogya Bhawan, Kathmandu:
 Eastern Estranela Industries, Jhapa
 Jumal Jadibuti Pvt Ltd.,
 Green Energy Mission, Kathmandu
 Kalinchowk Jadibuti udhyog, Dolkha
 Machhhpuchhrre Herbel Private Limited
 Nepal Sal Seed Oil Industries, Parsa
 Pashupati Bet Udhyog, Sunsari
 Piyush Varshiya Aushadhalaya
 Sri Agro Processing Industries, Persa
 Solvex Nepal, Banke

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  Sri Krishna Ausadhalaya
 Bhrikuti Paper And Pulp industries, Gaidakoti
 Everest Paper Mill, Dhanusha
 Laxmi Rosin and Turpentine, Jhapa
 Yunani Ausadhalaya,
 Nepal Resin and Turpentine ltd., Kailali
 Acme Rosin Trupentine Pvt
 Khanal Rosin and Turpentine

 Other agencies in promoting NTFP development in Nepal (NGOs and INGOs)

• Asian Network foe Small Scale Agricultural Biotechnologies (ANSAB)
• CARE, Nepal
• Community Based Enterprise Development (CBED/CECI)
• Deutsche Gasellchaft fur Technische Zusammenarbeit (GTZ)
• Federation for Community Forest Users of Nepal (FECOFUN)
• German Development Service and DFO, Gorkha
• Helvetas
• International Centre for Integrated Mountain Development (ICIMOD)
• International Union for the Conservation of Nature (IUCN)
• Nature Trust for Nature Conservation (NTNC)
• Makalu Barun Conservation Project (MBCP)
• Nepal Agro forestry Foundation (NAF)
• Nepal Swiss Community Forestry Project (NSCFP)
• LFP
• New Era
• TAL
• WTLCP
• School for Ecology, Agriculture and Community Works (SEACOW)
• Science and Technology Association (SATA – Nepal)
• Small Business Promotion Project (SBPP)
• UNDP, Micro Enterprise Development Program (MEDEP)
• UNICEF, Community Development through Paper Production and Greeting Cards Project
• USAID
• WATCH
1. Institutions of GoN and Bilateral programs
 Agriculture Development Bank of Nepal (ADB/N)
 Department of Plant Resources
 Forest Research and Survey Division
 Herbs Production and Processing Company Limited (HPPCL)
 Leasehold Forestry program
 Industrial Enterprise Development Institute (IEDI)
 The Botanical Survey and Herbarium
 The department of Plants Resources(DPR)
 The Institute of Forestry (IOF)
 The Botanical Garden
 The Drug Research Laboratory (RDRL)
 Timber Corporation of Nepal
 Buffer Zone program
 Conservation Area Program
 TAL, WTLCP

10.5 Impact of Climate change on Conservation of NTFPs

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Changes in the frequency or intensity of extreme climate events would have profound impacts on nature
and society.
Temperature
 Mean temperature is increasing
 Days and nights are both becoming warmer. Increase in Warm spell duration
 Fewer Cool nights and cool days.
Precipitation change– but unevenly distributed
 Wetter wet season
 Drier dry season
 More high intense rainfall events
Increased amount of water induced hazards
 Too much water – Floods, Flash Floods and Landslides
 Too little water - Droughts
Probable Impact
• The latitudinal distribution of crop, pasture and forest species is a function of the current climatic
and atmospheric conditions, as well as of photoperiod (e.g., Leff et al. 2004).
• Climate variability and climate change may alter the productivity of forests and thereby shift
resource management, economic processes of adaptation and forest harvests (Alig et al. 2004).
• It is widely recognized that climate change will have substantial impacts upon forested ecosystems
during this century (McCarthy et al., 2001)
Impact: Availability
• Many existing stresses, such as deforestation, pest infestations, forest fires, and invasive species,
climate change is expected to increase stresses upon forested ecosystems -changes in the
distribution of species
• The changing pattern of the hydrological cycle has adversely affect rainfall and temperature regime,
then to which in turn has brought agriculture to standstill and also severely affected regeneration
and dry rain fed agriculture system more harvesting of NTFPs then resulted into the decreased
availability
Increased variability in rainfall may create more severe soil moisture limitation and reduced
productivity
• The higher temperature is impacting the forest crop particularly the production of fruits, flowers
• Higher temperatures reduced the total duration of a crop cycle by inducing early flowering in tree
species, thus shortening the ‘product fill’ period.
• Research has shown that shorter the crop cycle, lower the yield per unit area.
Impact: Regeneration of NTFPs
• The erratic rainfall and the change in the temperature has not only decreased the production and
regeneration potential of the NTFP species which also affected the total biodiversity.
• The reproductive biology of many trees responsible for seed dispersal and pollination which are
affected due to decrease of beneficial insect and bird population

Unit 11: Trade and Marketing of NTFPs

Concept of market and marketing:
• Supplying the products and services in the market according to choice of the consumers for their
satisfaction.
• Free interaction between buyers and sellers to satisfy their needs.
• Market is the place where goods and services are utilized. (Coppel 1995)
• Buyers may be individual person or community or institution.

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 • Marketing includes raw materials, semi processed materials, final products and satisfaction of the
consumers. In Nepal a large quantity of NTFPs are distributed in raw form.
• Market may be local, regional, national and international according to the products and its
importance.
• Marketing identifies the demand of customers satisfying their needs with good margin of profits.
(FAO,1989)
• Marketing refers to social and managerial process by which products, services, and value are
exchanged in order to fulfill individuals or groups needs and wants.
• Agreement between producers and consumers on the principles of demand and supply.
11.1 Fundamentals of Marketing.
• Marketing.
• Market.
• Marketing Mix.
• Consumer side marketing.
• Market segmentation, Target and Positioning.
• Market research.
Marketing.
• Process of interaction between buyers and sellers to satisfy their needs where goods, services, and
value are exchanged.
• Marketing is the process of identifying, stimulating, and satisfying customer’s demand which
connects the customers with the producer and supplier the products at a profit. (FAO )
• Marketing involves "finding out what the consumer wants and helping to set up production/
marketing system that meets demand and maximizes income.(FA0)
• Process of exploring and analyzing potential consumer and producing , processing and distributing
them at a profit . It is a theory and practice of (large scale )selling.
• people, needs, money and willingness to spend,
• A market is not a place, but a network of transaction between people who have some needs to satisfy,
the money to spend and willingness to pay, with people who have resource, product or services or
information to offer.
• Markets are outlets for products and services (Koppel)
• Market is the seat of trade in time and space.
• Market Type:-
Consumer products: - Bought by ultimate consumers for personal use
Business products:-
• Goods or services purchased for use either directly or indirectly in the production of other goods and
services for resale.
• Trade:-the skilled practice of a practical occupation, "he learned his trade as an apprentice ".
"Trade is an old car for new one".
• Marketing chain.
• Marketing chains are the skeleton of marketing systems , and hence several
• Studies have described NTFP marketing chains .The specific actors within a marketing channel who
contribute to a product gong from production to the end user.
• Edward (1996) conducted a study of NTFPs marketed from Nepal to India
• Traditional medicines and essential oils industries in India. The study reveals
• that a marketing chain consisting of various levels :

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 • Local collectors, village traders, road head traders, Large traders, Indian whole sale, and commission
argents , and finally Indian industrial units
• Most harvesters trade NTFP through village traders. Road head traders
• are valuable to harvesters and village traders for providing credits,
• Storage and market information and absorbing market risk. The large
• Nepali traders ship NTFPs to Indian whole sale and commission agents
• Who finally sell in to industrial units.

Marketing Mix.
4 P’s
Product:-- A product is an output of goods and services resulting from the input of resources or factors of
production used to produce them.(FAO) What product do you want to produce and of What quality ?For
example, jatamansi oil processed from sustain ably collected Jatamansi. It is of high standard quality,
tested in lab, available available in 1 to 20 kg aluminum pack
• Price:--Fixing the price of the product and the methods of getting payment. Discounts in case of
larger amount, delivery. For example, the price of jatamasi oil is Rs 700 per kg for less than 10 kg.
6500 for 10 to 50kg, and 600 for greater than 50kg.
• Place :-The market where the product is sold, local, regional, national, international and how it is
made available to the customer i.e. through wholesaler, distributor or retailer. For example, The oil
will be sold dealers and distributors in a large amount in Europe and America.
• Promotion :-How to attract the customers and sale the product. Advertisement, selling skill, display,
trade faire to increase demand, distribution. For example, Jatamasi oil will be displayed in regional
fair and letter will be exchanged in Europe and America.
Consumer side marketing.
4 C’s:--
1. Consumer value (products)
2. Cost of the consumer (price)
3. Convenience of the buyers (place)
4. Communication (promotion)
 Market segmentation, Targeting and Positioning
Division of the total market in the smaller relatively homogeneous group.
Segmentation of consumer market:--Age, Gender, Geographic location, income and buying patterns play
a vital role in developing a successful marketing strategy. It is also known as demographic segmentation.
i.e. gender, age, income, education, location, marital status culture.
Geographic segmentation:-Division of overall market in to homogeneous based on their location. This
helps to identifying buying patterns. Marketers are interested in identifying their regions where they got
40 to 80% of their sales. GIS assembles, store, manipulate and display data to their locations.
Segment by Gender:-Define the market for certain products.
Segment by Age:-Age is an easy distinction to make for making decision.
Segment by Family life cycle:-Family life cycle refers to the process of family formation and dissolution.
Families usually spend the most of their money while their children are growing up.
Segmentation by household type: - Segmented by income and expenditure.

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Segmented by Brand and Loyalty:--Brand and loyalty they fees to the product. Segmentation is a tool the
marketers use to get to know potential customers.
Brand:-A brand is any name, term, sign, symbol, or, design intended to differentiate their goods and
services of one seller from those of another.
Top global brands:-coca-cola, Sony, Marcedies, Toyota, Marlboro, Bench, Kodak, Nestle, Microsoft,
Pepsi-cola.
Why brands?
To get consumers to identify a number of desirable qualities and traits with your specific products
Market share:-The coverage of the proportion of the products in the market
Position and Targeting: - position is differentiation from competitors, value preposition is what you
offer and product dimension is what do you do?
Targeting:-Where are you positioning your product for?
Value position;--So what, so good about you?

Market Research
• Quality of the products: - quality of the goods, (Physical and chemical), type of packaging, types of
goods, brand, stock in the market, delivery cost.
• Price of the goods: - Whole sale and retail price, the past trend of price, potential price.
• Demand and supply situation: - The production and sales of the goods within three years.
• Consumers of the product: - Who buy the goods? Where is their location? In what time the goods are
supplied in greater quantity.
• Competition:- Who are other producers ? Who will be affected?
• Marketing risk.

11.2 Importance of Trade and Marketing of NTFP.

International Trade of NTFPs
• Increasing interest of NTFPs because of dependency of rural people on NTFPs and worldwide
attraction on herbal products.
• Increasing interest on traditional treatment system of medicinal use of NTFPs.
• 20 crores of people are getting benefit from the traditional treatment system in china per year.
• More than half of the Doctors are recommending herbal medicine in Japan.
• More than 2crore 90 lacks people of South East Asia are dependent on NTFPs for lively hood and
income generation directly or indirectly.
• The herbal products have occupied a large market in the world. There was trade of 11 Arab dollars
(11billion Dollar) in 1995.Now a days it has been increased 7 to 10 % and reached to more than 68
billion dollar.It is estimated that its trade will be increased to 500 billion dollars in 2050.
• German is the top country in the consumption of herbal products and consumes 28% of the world
total production.
• Japan, France, other Asian countries, Europe and North America consumes 17%, 13%,19%,12%
and28% respectively.
• Saglo plant occupies first position among the NTFPs which are highly sold in the world market,
there after herbal tea, essential oil, cosmetic and medicinal products comes respectively.
• The transaction of 1 billion dollars takes place from the sale of 1 to 1 lack 10 thousands tones of
essential oil per year in the world.

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 • The major essential oil producer countries are Brazil, China, America, Egipt and India and consumer
countries America, west Europe and Japan.
• According to a report more than worth of 1 kharb dollars of NTFPs have been illegally traded per
year in the world. primates, sungava, ivory, reptiles, furry, skins, rhino horn, bina, etc are the major
items of illegal trade.
National Trade Of NTFPs .
The exact number of NTFPs that are under trade is unknown however 161 plant species are under
commercial use according to some studies in Nepal.
• 10 to 100% of the family is involved in the commercial collection of NTFPs in the rural areas of
Nepal and at some places it covers 50% of the total income of the family. It is estimated that worth
of about 2.5 Arab Rs obtained from the export of NTFPs per year.
Five high value species of NTFPs occupy more than 50% of the total income and amount exported.
Therefore, there is large pressure on the selected species
• NTFP is playing an important role in the national economy. It is estimated that forestry sector
contributes 15% of total GDP and NTFPs occupies 5%.
• In fiscal year 2063 Rs 16034515 were obtained as royalty from about 2563607kg of raw NTFPs
(Department of Forest)
• There is increase of 20% consumption of NTFPs per year in Nepal.
• Large amount of NTFPs are exported in raw form but now a days the processing of some NTFPs like
essential oil and handicraft are increasing.
• More than 18 aromatic species of plants are collected from both cultivated and wild source.
• Nepali paper has been exported to 60 countries including Europe, Japan, and America.
The worth of more than 30 crore Rs of Nepalese paper and its handicraft were exported in
2060/2061.It could be very good source of income and employment
11.3 Policy and Regulation of NTFP Marketing.
The extension of cultivation techniques of jadibut which has high demand in the international market will
be brought to the farmers. Favorable environment of value addition will be created through processing
and packaging so that maximum profit remains within the country. Responsible and competitive market
will be created in a organized form. Nepal will be established as a super market of Herbs and NTFPs in
the world up to 2020 B.S. The following policy will be adopted:
• Conservation and utilization based on the principle of sustainable development.
• Encouraging massive people participation.
• Simplification of certification and Taxation.
• Extension of research findings and techniques of NTFP development to people.
• Subsidies for the skill development and commercialization of the NTFPs.
• It is estimated that every year 20 thousands Tones of NTFPs are collected and about 90% of the
collection is exported mainly to India in raw form. About 10% of the collected NTFPs is processed
within the country and exported to third world obviously; negligible amount of NTFP is used in
Nepal.
• Every year the Government is earning more than 15 million Rs as Royalty,but it is said that more
than 600 million worth of NTFPs traded every year unofficially.
• NTFPs are the main source of cash income of rural people. In fact it is their source of livelihood.
Actually this has become off farm job for these people.

REGULATORY POLICY

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• The Forest Act (1993) has identified 233 types of NTFPs. According to the section 11, and 14 of the
Forest regulation (1995), one has to apply at DFO or, to CFUGs to collect and transport NTFPs.
The DFO or, CFUGs can issue collection permit and transportation permit, which are not banned by
The Government of Nepal.
• The Forest Act 1993 has also made provision of imposing sanction and punishment to any body
who goes against the subsection (d), (e), (h), and (I) of the section 49.The punishment can range Rs
100 to 5000 or imprisonment up to one year or both.
• The section 70 (a) of the Act (1993) and the section 12 of the Forest regulation have given power to
the government to ban on collection, sale and transportation of any NTFPs at any time just by
publishing a notification in the Nepal Gazette .Similarly the section 13 also allows the exported
NTFPs , but the section also gives power to the power to the Government to ban export of any
NTFP .Similarly to make the regulatory process easy ,the government can issue directives
according to section 67 of the Forest regulation.
• Section 28 of Forest Regulation and revised CF operation guideline (2002) have clearly mentioned
that the operation plan of a community forest should include information regarding NTFP . Once a
provision of harvesting and selling of NTFP is included in one operation plan. Community forest
user group can easily issue NTFP collection permit without any impediment.

FISCAL POLICY.
• When NTFP is collected, royalty should be paid at the DFO according to the rate given in annex 3
of the forest regulation 1995.According to section 68 of the forest regulation, the government can
change the rate of any NTFP by giving notice in the Nepal Gazette.
• Besides the royalty no other taxes are charged. If the NTFP is exported, in such cases about 0.25 %
export duty on invoice value is levied on every export. Although there are no additional taxes
levied on the NTFP, individual and corporate units are subjects to income tax. Similarly, according
to local governance act, VDC and DDC can levy tax on the NTFP.

MARKETING POLICY
• Marketing of NTFP is highly unorganized. Anyone can sell raw materials or semi- products or
products at any price .Similarly selling and buying price depends on the brokers than on
competitive markets. So local people are not getting proper price. Likewise policy regarding
certification does not exist where as the certification of the products has now become important in
the international market
• To conserve bio-diversity and environment, according to the Gazette (no.31and dated 2058/9/16)
the Government has banned the collection, use and export of three species, panchaule, bark of
okhar and kutki.
• According to the same Gazette, the raw form of 7 species has also banned, these are jatamasi,
sarpgandha, sogandhkokila, Jhyau, talishpatra, lauth salla and sugandhwal,but the processed
products of these species can be exported after getting approval from the Department of forest on
the basis of recommendation provided by HPPCL.Likewise the Government has also banned
silajeet and yarsagumba for export but they can be exported once they are steamed and packaged
in the country.
• Recently bark of okhar is totaly banned,i.e. for collection, transportation and use. 11 species are
banned in raw form for transportation. These are panch aule, kutki, jatamasi, sugandhwal,
sugandhkokila, srpgandha, jhyau, talishpatra,lauthsalla, yarsagumba and silajit. The collection

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 and transportation o f three aerial orchids, sungava, sunakhari and jeewanti are also banned by
Ministry of Forest since2065 Bhadra.
INSTITUTIONAL
• Except private sectors, mainly three governmental organizations under the MFSC are responsible
for the promotion of NTFP. The Department of Forest is mainly concerned with the
administration and promotion of NTFP through community and leasehold forestry programs.
• The Department of plant resource is carrying out research on NTFP. Not much out put of the
research has been disseminated.
• HPPCL has confined only on the limited number of NTFPs .Some private forms have come up to
add value o f NTFP in the countries.

SYNAPSIS OF GOVERNMENT POLICY

Before 1926 , forest had been taken as granted and the encouraged converting forest land to agricultural
land, in 1957, The government brought a policy to nationalize private forest. Then the local people no
longer felt the ownership over nearby forest which caused rampant deforestation. To correct this mistake
to alienate people from the forest, government brought participatory forest policies in late seventies.
Currently, Nepal’s forestry sector operates under a complex policy environment that comprises:
a) National level sectoral policy, especially the acts, guidelines and circulars;
b) cross-sectoral laws and policies, including the five year periodic plans; and
c) International conventions and treaties. All these policies are relevant to the enterprising on NTFPs
in Nepal.
National policies and International Treaties and Conventions Relevant to NTFPs Enterprises.
Sectoral laws and policies, Cross-sectoral laws and policies, Treaties and conventios.
NATIONAL POLICIES AND INTERNATIONAL TREATIES AND CONVENTIONS RELEVANT
TO NTFPs ENTERPRISES
Sectoral laws and policy:
• Master Plan for the Forestry Sector, 1988
• Forest Act. 1993.
• Forest Regulation, 1995.
• Community Forestry Directive, 1996, 2002,
• Collaborative Forest Management Guidelines, 2003
• NTFPs Policy 2004.
Cross-sectoral laws and policy:
• The Industrial Enterprise Act, 1992.
• The Company Act, 1997.
• The Cooperative Act, 1992.
• The Income Tax Act, 2002.
• The Value Added Tax Act, 1996.
• Environment Protection Act, 199.
• Environment Protection Rules, 1997.
• Local Self-Governance Act, 1999
• Food Act, 1966.
• 10th Five-year Plan
Treaties and conventions
• Treaty of trade between Government of Nepal and The Government of India 1991.

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 • Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) 1973.
• Treaties under the World Trade Organization.
 Convention on Biological Diversity 1992

11.4 Benefit sharing and community support.

Benefit sharing:-
All forms of compensation for the utilization of NTFPs whether monetary and non monetary and
includes, in a particular the participation in the scientific research and the development of NTFP and
making availability of findings of such scientific researches and development and transfer of
technologies. (Swiss State Secretariat For Economic Affairs, 1999)
The fair and equitable sharing of benefits arising out of the utilization of NTFP and by appropriate
transfer relevant technologies, taking in to account all rights over those resources and to technologies and
by appropriate funding. (Article 1 of CBD, CBD2000 a.)
An agreement upon distribution of monetary and non-monetary benefits between a provider and a
recipient.
BSM has the potential:-
• Bridge state and community perspectives.
• Empower local, ethnic, minority villagers through reintroducing user rights built on traditional
community property notions.
• Win local support for much needed control of illegal forest exploitation by powerful and well
connected outsiders.
• Contribute to improve livelihood.
• Strength resilience in the face of climate change.
BSA agreement.
• Purpose of the agreement.
• Area of exploitation.
• Methods to be used.
• Enforcement.
• Implementation and monitoring arrangement.
• Steps:-
1. Consultation, review and assessment.
2. Institutional arrangement.
3. Preparing for implementation.
4. Strategic planning.
5. Implementing the communication strategy.
6. Awareness building and education.
7. Make available of grants and loans to stakeholders.
8. Disbursement.
9. Follow-up support and monitoring.
Maintaining the food security and coping mechanism role of NTFP.
Strategies for maintaining the role of NTFs for poor rural families include:-
• Place NTFPs activities at the core of livelihood based strategies.
• Integrate forest management in to rural development activities to promote food security from the
gathering of forest products.

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 • Applied rapid appraisal tools to identify the role of NTFPs in livelihoods and food security.
• Give local communities clear access rights to forest resources, health, education, and raise
awareness in food security biodiversity and culture.
• Develop training and extension materials to raise awareness.
Some Issues:-
• Poor co-ordination among MFSC, HPPCL, DPR & private firms and companies.
• No separate division for NTFP promotion.
• Existing policy not updated.
• Unscientific royalty rate.
• NTFP assessment lacking.
• Lower level of processing.
• Highly unorganized market.
• Transportation to road head.
• The permit of transportation lengthy.

Unit 12: Enterprises of NTFPs

I2.1 Prospects and Potential
What is enterprise?
• It is the production unit in an economy
• Product may be physical goods or services
• It is the combination of entrepreneur , capital, land and laborers
• Risk is involved in enterprise
What is entrepreneur?
• It is derived from French language.
• Its meaning is organizer of musical or other entertainments.
• But in business, entrepreneur is an individual who innovates the idea of business, translate the
innovated idea into enterprise and bears the risk involved in the enterprise.
• He/she should have desire of high achievement.
• He/she should be highly optimistic
• He/she should be able to work independently
• He/she should have foresight
Development of the Term Entrepreneur:
• 17th Century: Person bearing risks in a fixed price contract with government.
• 1725: Person bearing risk is different from supplier
• 1802: Separated profits of entrepreneur from profit of capital. (J.B. Say)

• 1934: Entrepreneur is innovator and develops untried technology. (J. Schumpeter)

• 1961: Entrepreneur is motivated by need for achievement. (D. McClleland)

• 1964: Entrepreneur maximizes opportunities. (Peter Drucker).
• 1975: Entrepreneur takes initiative, organizes and accepts risks of failure. ( Albert Shapero)
• 1980: Entrepreneur is seen differently by economists, Psychologists, business persons and
politicians. (Carl Vesper)
• 1985: Entrepreneur creates something of value, assumes risks and receives resulting rewards.
(Robert Hisrich)
• Source: Based on Hisrich and peters, 2002:7.
Entrepreneurs in the NTFP business
• Internal stake holders

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 • Local traders/Local collectors, FUG, Community, Local processors, Local firm, Retailers etc.
• External stake holders
• Regional traders/middle men, road head traders, large scale processors, large firm, national traders,
large retailers, manufacturers, etc.
Characteristics of Entrepreneurs:
• Achievement- oriented
• Hard work
• Desire for responsibility
• Optimistic
• Independence
• Foresight
• preference for risk
• Innovative
• Flexible
• Good organizer / Leader

What is entrepreneurship?
Different persons define it in different way.
 Entrepreneurship is the process of exploiting opportunities by creating new venture through
resource pulling, risk taking, innovation and managing for rewards. (Hisrich and Peters 2006)
 It is the creation of a new organization that introduces new products, service or creates a new
market or utilizes a new technology. (Spann, Adams and Wortman 1988)
• Entrepreneurship is a risk bearing.
• It is organizing the enterprises.
• It is innovating the new idea about the business opportunities.
• But bearing the risk and organizing the production resources like finance, materials, laborers should
create the value for entrepreneur.
• In order to be entrepreneurship, the result of taking the risk and managing the resources should be
value to the entrepreneur.
• Fall seven times and stand up eight.

Relationship between Entrepreneur and Entrepreneurship

Entrepreneur Entrepreneurship
Refers to an individual Refers to a process
Innovator Innovation application of new knowledge
Is a creator Is a creation
Is a visionary Is vision
Risk bearer Process of risk bearing
leader Leadership
Imitator (Copy), Imitation,
Organizer Organization

Importance of Enterprise
• Employment Opportunity
• Secure Customer Choice
• Products Quality

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 • Cultivators/Collectors Promotion
• Revenue
• Extension of the Products/Firm
• Mobilize local energy
• Cost distribution among stakeholders
Growth Strategies in enterprises
• An enterprise is an outcome of business environment prevalent at a point of time.
• Business environment like social, economic political environment changes with change in time.
• In order to survive in the changed and changing business environment a business enterprise needs to
be strong enough to cope with the changes and challenges before it.
Stages of Growth
• Just like human beings enterprises also pass through different stages in their lives this is called
enterprises life cycle. Enterprise life cycle broadly classified into five stages: Start up Stage, Growth
stage, Expansion Stage, Maturity stage, Decline stage.
• Startup- this refers to the birth of a business enterprises in the economy, production in limited
scale, less competition with no or low profit.
• Growth Stage- this stage, enterprise in known and accepted by the market, production and sales
increase, competitor begin to enter
• Expansion stage- this is the stage in which enterprises expands by way of opening branches and
introducing new product lines, diversified strategy applied.
• Maturity stage- In this stage, due to keen competition, sales increase at a decreasing rate, profits
tend to decline
• Decline stage- At this final stage, the enterprise find it difficult to survive either due to the gradual
replacement of enterprise product or due to some new innovation or on account of change in
customer behaviors, enterprises loss begins, enterprises prefer to close.
The time taken for all enterprises to move from one stage to another is not the same but varies widely
from enterprise to enterprise.
What is micro enterprise development?
• Development of enterprise means establishment of a production unit
• In order to develop the production unit and run it any entrepreneur should pass the following stages:
• Innovation of idea of business opportunities
• Conversion of idea into business plan
• Translation of business plant into action
• Promotion of the product
• Thus, development of micro enterprise is a series of activities carried out to create a micro
enterprise. It starts from innovation of business opportunity and ends after promoting its product in
the market.
What are the micro enterprise development program models?
• Micro enterprise formation through of small grant
– This model assumes that target people have already possessed the required skill to run the
micro enterprises.
– This model is commonly used model.
– Donor or government agency provides the seed money to the group or individual
– Seed money often is loan. Some development agency provides the small amount of grant for
administrative expenses like stationery expenses to group.
• Model focusing the provision of credit –it focuses normally on the credit but sometimes
development agency provides the technical training also, credit program widely with regard to a
number of elements:
• Percentage of interest rate, loan repayment schedule, clients selection procedure, loan application
procedure, numbers of training, monitoring of loans.
• There are different sub models like solidarity group project model, village bank and community
banking model.

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I2.2 Community based enterprises
Community based enterprise
• Community enterprise is production unit in an economy financed, managed and run by the
particular community.
• Community may be particular ethnic group, professional group, gender base and unemployed
youth.
 In General CB enterprises refers to small enterprise run by communities
 The following terms are used interchangeably with CB enterprise:
• Cottage industry
• Small scale enterprise
• Informal sector business
• Home based industry
• Own-account work
• Income generating project
• Entrepreneurial activity
• Community enterprise
• Group enterprise
How CB enterprise developed?
• Development of enterprise means establishment of a production unit.
• In order to develop the production unit and run it
Any entrepreneur should pass the following stages:
– Innovation of idea of business opportunities
– Conversion of idea into business plan
– Translation of business plan into action
– Promotion of the product
Thus development of CB enterprise is a series of activities carried out to create micro enterprises. It starts
from innovation of the business opportunity and ends after promoting its product in the market.
Importance of CB enterprises
1. Economic Importance
a. Generation of the rural employment
b. Generation of the income of community members
c. Improvement in the standard of living of community members
d. Utilization of the idle natural resources
e. Reduction in the rural poverty and contribution to achievement of MDGs
2. Social Importance
a. Promotion of the Social interaction and social bond among the community members
b. Reduction in the social abrasion and evils
c. Promotion of other social works such as education, community works etc.
3. Environmental Importance
a. Contribution to environmental conservation
b. Sustainable use and management of resources
Different Forms of CB Enterprises
• Sole enterprise
• Partnership
• Cooperative
12.3 Promotion of Enterprises for Local Development
Meaning of Promotion

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 • Promotion is pervasive (Spread throughout) communication. It is a highly visible element in the
marketing mix. It tells the target customers about product, price and place. It is also known as
marketing communication.
• There are many options for promotion, depending on the products and the means available to the
target group.
To develop a strategy for promotion, the following information should be assessed:
• Features of the product that help people to recognize the product as distinctive and that encourage
them to buy it;
• Forms and cost of promotion that can be used to reach greatest number of people; and
• Different target market segments (niche market), and consequent on promotion and packaging.
Overview of Community based Forest Enterprises- Research done by ANSAB
• A total of 40 communities based forest enterprises studied
• In general five ownership structures and 14 product lines were investigated.
• The ownership structures investigated make up the primary ownership option in Nepal and
includes:
• Sole (single) enterprises: Enterprises primarily owned and managed, with or without formal
registration, by an individual or a household.
• Forest User Group (FUG) enterprises: Individuals FUGs, leasehold groups or other community
groups managing forests as a common property resource and producing, selling or distributing
forest or a household.
• Consortium (Association) of FUGs: Two or more FUGs working together for the collective
production and marketing of forest products.
• Cooperatives: Formal or informal networks of individuals and groups collecting, processing, and
trading forest products.
• Private limited companies: Corporate entities registered as per prevailing company legislation in
Nepal which at present allows a maximum of 50 shareholders
Type and Existing Product Type of CB enterprises
Owner Product type
Sole  Timber (furniture, Logs and poles)
 Other wood products (handicrafts, carvings, implements), Charcoal
 Plant fibers (Lokta paper, ropes and cloth from Allo, Hemp, Bhimal, Bhorla,
Sabai grass)
 Medicinal plant products, Traditional medicines, Essential oils, Food and spices
 Brooms, Bamboo and rattan products
 Leaf products (plates, handicrafts)
 Others (soap nuts, incense, herbal dyes)
FUG Enterprise  FUG Timber (sawn timber, furniture etc)
 Fuel wood and Charcoal
 Plant Fibers ( Lokta paper, Argeli etc)
 Medicinal plant products
 Essential oils
 Brooms
 Bamboo and rattan products
 Fodder and grass
 Leaf products (Plates, handicrafts)
 Pine resin
Consortium of  Timber (sawn timber), Plant fibers (Lokta paper), Medicinal plant products,

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 FUGs Essential oils

Cooperative Plant fibers (ropes and cloth from Allo), Medicinal plant products, Food and spices,
Leaf products (plates, handicrafts)
Leaf products (plates, handicrafts
Private Limited Timber (sawn timber), Plant fibers (Lokta paper, Argeli paper), Essential oils
company

Enterprises Promotion for local development - Rules and Regulation

• Cooperative form
• Cooperative Act 2048
• Cooperative Regulation 2049
How a community based enterprise of NTFPs for local development can be promoted?
In order to promote the community based enterprise, any community members should pass the following
stages:
 Innovation of idea of business opportunities
 Conversion of idea into business plan
 Translation of business plan into action
 Promotion of the product
Innovation of idea of business opportunities
a. Community members
b. Concerned experts
c. GO and NGO
d. Donor organizations
12.4 Enterprises Development Approaches
Analysis of approach helps:
 To identify the opportunities
 Compilation of resources and means.
 Use of available skill and technology
 Creation, implementation and management of enterprise or business
Value Chain and Development
• Value theories investigate how people positively and negatively value things
• When put into practice, these views are meant to explain our views of the good.
• Value chain : A high value model considering the aspects all the way from production of raw
material to its processing to marketing
Value chain Analysis and Development
• The chain of activities required to bring a product from conception to consumer is a value chain
• The value of the product increases at each point with the process.
• The continuum of activities through which a product passes as it is transformed for the market is:
input supplies → production → processing → wholesaling → retailing → exporting.
Objectives of Value Chain Analysis:
The objectives of value chain analysis are to:
• Identify the main actors or organizations in the commercialization chain from the input provider
• To the collector right through to the final consumer. Identify their specific activities.
• Identify the different routes to commercialize the NTFP, which could be what currently exists and
what potentially is available or could be developed.

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 • Assess how well the marketing chain is working.
Other objectives: Self employment and incomegeneration
Self employment:
Full time involvement of an individual in the enterprise. Low investment low risk .
Income generation
In addition to main job, involvement of a person in a part time employment or lower investment.
VALUE CHAIN ANALYSIS
A value chain is also called supply chain and it.
• Describes the full range of activities required to bring a product from the producer to the consumer,
emphasizing the value that is realized and how it is communicated.
• Local level incentives to work in a NTFP commercialization to government regulations that affect
how any person involved in this chain may work.
• To some extent the value chain analysis brings together the data and information generated by the
community-level research, enterprise budget and market analyses.
• It is a flexible tool that can be useful in identifying key constraints and opportunities within a NTFP
commercialization chain.
Where and with whom?
A value chain analysis should be carried out with the following groups:
1. The initial stages of the analysis take place in the community - identify important traders and markets
2. Then the analysis should be undertaken with the traders and at markets until end consumer is reached.
3. The latter stage contacting people and organizations for documents, important data and information.
4. The initial value chain analysis and final should be presented and discussed with the community.
5. If possible the results from the value chain analysis should be disseminated to local authorities and
forestry policy decision makers.
How?
Three sections:
a. Description of the value chain.
b. Identification of important routes and actors in the chain.
c. Assessing the profitability, power and institutional environment of the key actors

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Sub sector Analysis
A typical sub sector analysis identifies
• The different stages of production, processing and marketing, and the value added at each stage
• Which actors are active at which stage– small-scale, large-scale, imports, etc.
• What the constraints are on enterprises playing a greater role at each stage; and
• What are the most cost-effective ways of helping them to do so.
• A key feature of the sub-sectoral approach is the schematic mapping of relationships between trade
groups, functions, and production and distribution channels within a sub sector.
• Sub sector analysis can lead to projects involving technology development, input supply, marketing,
management assistance, or credit.
• It identifies constraints and possible interventions it can undertake to promote NTFPs
• Sub sector analysis can identify constraints to small enterprises /entrepreneurs growth and
competitiveness in a given sub sector.
Steps in SSA
STEP 1: Scheduling for the sub sector analysis
STEP 2: Identification of constraints/opportunities
STEP 3: Identification and selection of services
STEP 4: Assessment and selection of business service - use matrix
STEP 5: Identification of Service Providers and their constraints to provide services
STEP 6: Identification and selection of interventions
STEP 7: Action Plan
Selection Criteria for a Product in SSA
• Conservation Potential

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 • Market Demand and Growth Potential - Demand driven approach
• Value Added Potential
• National Priorities

Finding Sub sector constraints

Preparation of business plan of an enterprise

What is business plan?
The business plan is scheme how you will promote and run your community based enterprise of NTFPs.
It includes the all activities from the identification of business opportunities to the promotion of the
business.
Steps to prepare the business plan?
1. Think who are the community members and analyze: Market and economy, Resource, social and rules
and available technology. Then find
 Community members' interest
 Type of product
 Competing Product
 Location of the business
 Transport facilities
 Market that the product will occupy
 Type of consumer
2. Find what will be projected demand or sales of the product in the target market?
Methods of Forecasting the demand:
2.1General to specific model
 Estimate the total population of the target market
 Find out the probable consumer in the market to find out demand
2.2 Market survey with consumer, retailer and whole seller

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2.3 Estimation of Production Quantity
 Production should be tentatively 60-80% of the estimated market share of the product
2.4 Promotional Strategy: New
Product, flavor or content or credits
2.5. Production Plan:
• Required raw materials
• Required types of laborers
• Stages of production process
Production planning includes:
2.6 Capital requirements
 Land and building
 Machine and equipments
 Vehicles, if any
 Office furniture and equipment
 Life and depreciation
• Plant and equipments 10 years
• Building 20 years
• Furniture 5 years
• Vehicles 7 years
• Depreciation method: Straight line
Salvage/scrap/residual value: 0
2.7 Payment for plant and equipment:
 Modality of payment: installment or lump sum
 Credit or cash on delivery
 If credit: terms of payment
 If it is leased, then lease payment
3. Production Cost and Value
3.1 What will be the quantity of raw materials and indirect materials?
 Raw material is the basic input to the production process
 Some indirect materials also are required. For example, coal in soap factory.
3.2 Sources of raw materials and required indirect materials:
 Identify the sources of the required raw materials and indirect materials
 As far as possible price of material should be minimum
 As far as possible source of the materials should be nearest so that you can reduce the
transportation of materials
 Source should be reliable.
 The source should provide the materials whenever you require them.
 Supply of raw materials may be seasonal or it may be regular for whole year.
 If supply of raw material is seasonal you can either store the raw materials or close down the
production during the off season.
 If you want to warehouse the raw material you need additional working capital.
 If you want to close down the production in the off season, then you have to lay off the outside
employees, if any.
3.4 Direct and indirect labor.
 Direct labor : labor directly involved in production function

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  Indirect labor: labor involved in the production function indirectly. For example, storekeeper.
 Types of direct laborer: skill, semi-skill and unskilled
3.5 Availability of laborer
 Seasonal availability
 Availability for whole year
 If availability of laborer is seasonal, then you have to manage the labor for off season.
 You can manage by paying higher wage to laborer or employ the new laborer.
 You can reduce the production.
 Whatever you do, you should mention all these in your business plan.
3.6 Motivational scheme to laborer
 Motivational scheme may be:
 Sharing in the profit
 Giving more responsibilities
 Providing the piece basis wage
 Such expenses should be included total expenses
3.7 Pre-operation/Preliminary expenses
 All expenses incurred before the operation of enterprise should be included in the pre-operation
expenses. Pre-operation expenses includes:
3.8 Overhead Expenses
It includes:
 Rent for administrative building not for factory building
 Maintenance expenses
 Administrative expenses
 Selling and promotional expenses
Electricity, water & communication
3.9 Cost of production per unit of Single and Multiple product separately
3.10 How to fix the selling price?
Methods of pricing:
1. Cost plus pricing method:
2. Add the financial cost, depreciation and amortization of preliminary expenses per unit to the
total production cost as calculated on 3.9
3. Now you can calculate the total cost of production
4. Total cost of production=Direct and indirect material cost+Direct labor cost+Overhead
expenses
Selling Price:
1. simple methods
 Calculate interest
 Calculate the annual depreciation as stated earlier
 Add up this to the total cost of production.
 The sum is called cost of sales per unit.
 calculate the selling price by multiplying the cost of sale by profit margin to get the selling
price
2.Comparative pricing method:
 Price is fixed by comparing the quality and price of competing products
 Market model of pricing

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Price fixed by the demand and supply of the product in the market
Which one pricing model?
 Market model of pricing in the liberal and market economy
4. Investment
4.1. Capital
How much capital will be required?
 Capital includes fixed capital, Pre-operating expenses and working capital
 Fixed capital includes land and building, plant and equipment, furniture, office equipment and
vehicles
 Pre-operating expense includes as stated earlier.
 Working capital includes investment in cash, raw materials, semi-finished goods, finished goods,
and receivable
Working Capital include
 Raw material required to run the enterprise smoothly
 Cost of semi-finished goods
 Cost of finished goods
 Cash required to pay the wage, salary and overhead expenses
 Cost of sales
 Cost of credit sales/receivable
Total Investment:
 Fixed capital plus Working capital
4. Investment /Financial Plan
4.2 Financing Plan : capital could be from two sources:
 Debt/loan capital and Equity capital/own money
 Decide how much fund you raise from debt capital and how much from equity capital.
4.3 Collateral for loan:
 If finance institution requires collateral, then you should specify in your plan which property
you will pledge for collateral
 If you do not have your own property, you can pledge of the property of your relative
4.4 Projection of Net Income
 Deduct the cost of sales from the annual sales. This is the operating income before tax
 Normally income of the community based enterprises is not taxable. So need not to bother
about the deduction of tax.
4.5 Loan Repayment Schedule
 Loan repayment schedule should show when and how much the loan of micro credit finance
institution or loan borrowed from the group saving scheme
4.6 Calculation of Break-even point
 Sales level where there will be no loss and no gain
 There is loss if the sales level goes below this level and profit above this level
Information required working out the break-even point:
 Fixed cost: cost which does not vary with the production level
 Variable cost: It varies with the quantity to produce but it remains constant per unit.
4. Investment /Financial Plan
 Break-even point is calculated in quantity and in sale volume
 Break-even point in quantity:

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BEP=Fixed cost/(price per unit-variable cost per unit)
BEP in sale volume=BEPQ*P
4.7 Is the proposed community based NTFPs enterprise is feasible?
 Is proposed enterprise is technically feasible
 Is proposed enterprise is financially feasible
 If enterprise is feasible on the ground of these criteria, recommend to start up the business.
But before writing the conclusions think the answer to the following questions:
 Does the annual revenue cover the all expenses of the enterprise?
 Can you resolve the problem possible to be faced in acquiring the raw materials and indirect
materials?
 Will the present condition continue in the planning period?

Unit 13: NTFP certification

What is forest certification?
 Forest Certification is a relatively new system of formal voluntary scheme where a third party
(verifiers) acts as a certifier, who gives the written assurances that the quality of forest
management practiced by the proponent forest manager is according to predetermined standards.
 It is the verifying tools that a forest meets the requirements of a standard and it is widely used
through all sectors to provide independent confirmation that standards are being met. Certification
involves the external verification of forest management quality, which raises the need for adequate
auditing systems.
 As defined by FSC, “Forest certification is the process of evaluating forests or woodlands to
determine if they are being managed according to an agreed set of standards”.
 PEFC defined “it is a procedure to assess the quality of forest management in relation to the
criteria of a forest management standard”.
 ISO has defined forest certification as “the procedure by which a third party gives written
assurance that a product, process or service conforms to specify requirements.”

Elements of Forest Certification

Product
claiming

Certification Standards
Certification is based on an assessment of the social, environmental and economic aspects of forest
management described in the 10 Principles and 56 Criteria (“standards”) of the FSC

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If the forest operation meets these principles and criteria, then it can receive a certificate and has the right
to use the FSC label
History of Forest Certification
 There was a craze over forest products in North America and Europe
 Deforestation rate 13 million ha per year (450 m ha lost between 1960-1990)
 This deforestation was dramatically high in developing countries where Asia lost almost one third
of its tropical area and Latin America and Arica each lost 18%.
 This happened to provide
• land for food,
• cash crops,
• fuel wood,
• And timber as a means of national income of many countries (FAO, 1993).
Realizing the alarming deforestation in the tropics, people and social organizations were worried,
People in these regions discarded (BOYCOTT) the use of forest products from the tropics.
Effects of timber boycotts
For Environmentalists
 Raised Awareness to world
 Media Friendly and activist Friendly
 Easy to disseminate in developed and underdeveloped country
 But, concerns about social impact
For Traders:
 Upset customers
 Upset staff
 Bad for image
 Bad for business
For Producers:
 Reduce value of market
 Limit Size of market
 Financial (transection) problem
For sociologist and economist
 People from poor country faced more problem
 Disturbed Social and ecomic mechnism
 Forced to think by new angle
As a result, people in the tropics face severe crisis.
 WCED 1987 : Definition of Sustainable Development (Bruntland commission).
 During Rio Summit in 1992, A system for certifying and labelling forests and forest products was
developed.
 FSC estsblished in 1993 and PEFC in 1999.
 SFM principles: Montreal Process 1994; Helsinki Resolutions; CIFOR, 1996; FSC, 1996; PEFC,
1999 etc.
Why certification?
Certification is driven by a variety of interests.
 For industry and trade- it is an instrument for environmental marketing.
 For buyers and consumers- it provides information on the impacts of products they purchase.

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  For forest owners and managers-it is a tool for gaining market access or market advantage, or
perhaps for capturing price premiums. It also serves to demonstrate responsible forest management
through independent third party certification regardless what the market wants.
 For the environmental movement- it is a way of influencing how production forests are managed.
 For government- it is a soft policy instrument to promote SFM, sustainable consumption patterns
and a variety of other environmental and social goals.
 For investors- it can help in risk mitigation. Additionally, there may see more benefits or interest in
forest certification ( Source: Pending challenges of FC, 2002 ITTO )
 Nussbaum and Simula (2005) summarised some common reasons for adopting certification that
are customer demands on certified products.
 There are the potentials to use certification, a means of accessing into new markets, an investor or
donor demands certification as a condition of insurance and the owners, share holders or
management see certification as useful tools to achieve management goals.
Certification ensures: Management/Economic:
 Improved performance standards.
 Enhanced control resources.
 Permanent economic viability, opening of new market.
 Improved market access.
 Improve enterprise image and ethics.
 Improved transparency.
Social:
 Poverty alleviation.
 Addressing environmental and social concerns of the public in forest management.
 Balance the objective of forest owners other stakeholders and society.
 Community participation.
Environmental:
 Biodiversity conservation.
 Ensure water supply and soil conservation.
 Help to reduce the green house gasses.
Main Characteristics of forest certification
 Voluntary
 Technically consistent
 Non-discriminatory
 Independent
 Transparent
 Market driven approach
Need of Forest Certification
• Promote Sustainable Forest Management
• Access of forest products to international markets
• Environmentally-sensitive groups/buyers prefer certified products
• Certified products may fetch higher prices than the uncertified ones
• Establish link between producers and buyers
Types of Forest certification
Based on its working area, two types of systeam is working
 Single forest certification: Popular in Europe and Ameriaca, large scale area , single certificate
and comparatively costly

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  Group forest certification: Popular in between small forest owner , manager and less
developed country, one certificate, resource manager works as coordinator between forest
owner and certifiier body , comparatively low cost
Challenges of forest certification
 Costly process due to need of foreign experts
 Lenghthy and tedious
 It demands more
 Lack of sufficient man power to maintain all its requirements
 Same process to all forest management unit (small to large scale)
 High expectation of users
 Lack of positive attitude from most of the stakeholders
Chain of Custody Certification
CoC is the channel through which products are distributed from their origin in the forest to their end-use
Certification of forest management guarantees the quality of the management where as certification of
chain of custody guarantees the origin of forest raw material.
• The chain of custody certification system is a process of tracking wood products from the
forest stand to the point of sale.
• It is designed to ensure that forest products originate from certified forests and are not mixed
with uncertified ones.
It is also called product certification
Schemes of Forest Certification
• Global Coverage
– Program for the Endorsement of the Forest Certification(PEFC
– Forest Stewardship Council (FSC)
• Country Specific Systems
– US based Sustainable Forestry Initiative (SFI)
– Canadian Standards Association (CSA)
– Finish Forest Certification Scheme(FFCS)
– Australian Forestry Standards (AFS)
– Malaysian Timber Certification Council (MTCC)
– Chile based- Certification Forestral (CERTFOR)
Principles of FSC
1 Compliance with national laws and FSC Principles (6)
2 Tenure and use rights and responsibilities (3)
3 Indigenous peoples' rights (4)
4 Community relations and worker's rights (5)
5 Benefits from the forest (6)
6 Environmental impact (10)
7 Management plan (4)
8 Monitoring and assessment (5)
9 Maintenance of high conservation value forests (4)
10 Plantations (9)
PEFC
• Luxemburg based, formed In June 1999 as a Pan European initiative with representative scheme
from eleven countries.

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 • With the rapid development in its working area globally its acronym was changed in 2003 from
• Pan European Forest certification to Programme for the Endorsement of Forest Certification
Scheme
• certified forest reached more than 225 million ha (Worldwide)
• independent, non profit, non-governmental organisation, which provides a framework for the
development and assessment of independent third party certification of environmentally
appropriate, socially beneficial and economically viable management of forest.
• This scheme is strongly supported by small forest owners’ association in Europe as well as many
national governments and industries
Certification Practice in Nepal
• Tenth five year plan recognized forest certification as one of the major tool to access in
international market and create competitive situation
• NTFP Policy 2061 also recognize the involvement of rural poor family in NTFP management and
forest certification to be adopted for SFM and market access
• Interim Plan: National Planning Commission proposed to allocate some budget for forest
certification initiatives

Organisations involved in certification process

Public Priavte Alliances (PPA)

• Established in 2002.
• Governement, Many local NGOs,INGO, FECOFUN, private company , International trade group
(AVEDA), smartwood are members.
• Working area is NTFPs.
• Promote NTFP and fair trade.
• Cordinate by ANSAB.
• lobbying for certification.
• Asia Network for sustainable agriculture and bio resource (ANSAB).
• Established in 1992.
• Non profit, non government and an independent organisation.
• Working area is NTFPs promotion in south Asia,
• Provided technical, financial and socially support for capacity building for certification.
FECOFUN:

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  Established in 1992.
 Out of 14000 CFUG in country more than 10000 are included in this organisation.
 Resource manager for this certification process.
 Certificate holder of certification programme.
 Responsible for compliance rules, provide technical, social support and monitor to CFUGs.
District Forest office:
• DFO handover and manage CFUGs on behalf of government
• Provide technical, social and legally support to CFUGs.
• Monitoring of their work.
• Provide some training and guidance.
• Facilitative and supportive role for certification.

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