Butternut (Chiuri) in Nepal

A Value Chain Analysis

Ministry of Industry

Contents
1. EXECUTIVE SUMMARY...............................................................................................................................................................1
2. BACKGROUND..................................................................................................................................................................................5
2.1. Context of the Assignment...............................................................................................................................................6
2.2. Purpose and Objective of the Study...........................................................................................................................6
2.3. Limitations..................................................................................................................................................................................6
2.4. Methodology Used in the Study ..................................................................................................................................7
3. CHIURI IN NEPAL.........................................................................................................................................................................9
The Inclusive Development of the Economy (INCLUDE) Programme is a joint Nepali-German initiative
under the guidance of the Nepal Ministry of Industry and with Technical Assistance by the Deutsche
Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH, acting on behalf of the German Federal
Ministry for Economic Cooperation and Development (BMZ).

3.1. Basic Information...................................................................................................................................................................9

3.2. Geographical Distribution...............................................................................................................................................11
3.3. Social Economic Importance........................................................................................................................................11
4. VALUE CHAIN MAPPING........................................................................................................................................................15

Published by
Inclusive Development of the Economy Programme (INCLUDE)
Narayani Complex, Pulchowk, Lalitpur
PO Box 1457, Kathmandu, Nepal
T: +977-1-5555289
F: +977-1-15521712
E: include@giz.org.np
I: www.includenepal.org
Commisioned by

4.1. Overview....................................................................................................................................................................................15
4.2. Actors in the Chiuri Value Chain...............................................................................................................................17
4.2.1. Primary Value Chain Actors................................................................................................................................17
4.2.2. Supporting Organisations (NGOs, Associations, Development Partners) ...........................22
4.2.3. Enabling Organisations (Government Entities) ...................................................................................24
5. ANALYSIS AND FINDING ...................................................................................................................................................27
5.1. Key Constraints and Opportunities .......................................................................................................................27
5.2. Government Policies ......................................................................................................................................................32
5.3. Linkages among the actors and potentials for market improvements ........................................32
5.4. Economics of the Value Chain .................................................................................................................................33
5.4.1. Resource Availability ...........................................................................................................................................33
5.4.2. Cost Reduction, Increasing Revenue and Barriers of Entry and Exit ...................................37

Inclusive Development of the Economy Programme (INCLUDE)

All rights reserved. Published 2014
Compiled by:
Mr Sichan Shrestha

5.5. SWOT Analysis ...................................................................................................................................................................37

6. INTERVENTION STRATEGIES ............................................................................................................................................39
7. CONCLUSION AND RECOMMENDATIONS ..................................................................................................................45
8. ANNEXES .....................................................................................................................................................................................47

Editor:
Jackie Taylor; INCLUDE

8.1. Estimation of required demand and supply of chiuri seeds/ghee ..................................................47

Design
Kazi Studios

8.3. Success Stories ................................................................................................................................................................51

This publication may be reproduced in whole or in part and in any form without permission from the
copyright holder, provided acknowledgement of the source is made and a copy is provided to INCLUDE.

8.5. List of Tables and Figures .........................................................................................................................................56

8.2. List of Nepalese herbal soap brands available in the market .........................................................50
8.4. List of people interviewed .........................................................................................................................................53
8.6. Reference List ....................................................................................................................................................................57

Acknowledgement

Acronyms and Abbreviations

The study acknowledges the following personnel and organisations for their valuable
contribution in preparing this report:

AHP
ANSAB
BOT
BMZ
CFUG
DDC
DFO
DMEGA
DoF
DoPR
EIA
FACD
FECOFUN
FGD
FNCCI
FNCSI
GACP
GIZ
HBTL
HVAP
IBA
IEE
INCLUDE
IPR
JABAN
LFP
MAPs
MEDEP
MoFSC
MoI
MSDC
MSEs
MSFP
NGO
NRs
NTFP
PPM
PPP
PRAA
R&D
SDC
SME
SWOT
TEPC
USAID
VC
VDC
WWF

1. The Nepali-German Inclusive Development of the Economy (INCLUDE) Programme, a

joint initiative under the guidance of the Ministry of Industry (MoI) and supported by the
Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH acting on behalf
of the German Federal Ministry for Economic Cooperation and Development (BMZ), for
entrusting us to carry out this study that will contribute to the development of new projects.
In particular, Ms Ellen Kallinowsky and Mr Roshan Shrestha for overall support and
guidance in the study design and information gathering from the study districts, as well as
Mr Keshav Acharya and Mr Nibedan Baidya for overall support in planning and arranging
meetings with key stakeholders.
2. Mr Artur Dillmann, Senior Consultant, Germany, for overall support and guidance in the
study design and report writing.
3. The Micro Enterprise Development Programme (MEDEP), District Chamber; Rupantaran,
a NGO, and other local NGOs for arranging meetings and providing coordination and
other management related support.
4. Finally, acknowledgement goes to project beneficiaries; entrepreneurs; representatives of
government line agencies at district and central level; project stakeholders; project donors,
and NGOs for sharing their experiences, which have provided valuable information in
drawing conclusions for this report.

Alternative Herbal Products

Asian Network for Sustainable Agriculture and Bio-resources
Built, Operate and Transfer
German Federal Ministry for Economic Cooperation and Development
Community Forest User Group
District Development Committee
District Forest Office
District Micro-Entrepreneur Group Associations
Department of Forests
Department of Plant Resources
Environment Impact Assessment
Foreign Aid Coordination Division
Federation of Community Forest Users, Nepal
Focus Group Discussion
Federation of Nepalese Chambers of Commerce and Industries
Federation of Nepal Cottage and Small Scale Industries
Good Agriculture and Collection Practices
Deutsche Gesellschaft fr Internationale Zusammenarbeit
Himalayan Bio Trade Pvt Ltd
High Value Agriculture Project
Indo Buyric Acid
Initial Environment Examination
Inclusive Development of the Economy Programme
Intellectual Property Rights
Jadibuti Association of Nepal
Livelihoods and Forestry Programme
Medicinal and Aromatic Plants
Micro Enterprise Development Programme
Ministry of Forest and Soil Conservation
Ministry of Industry
Material Safety Data Sheet
Micro and Small Enterprises
Multi-stakeholder Forestry Programme
Non-Governmental Organisation
Nepali Rupees
Non-Timber Forest Product
Parts Per Million
Public Private Partnership
Pest Risk and Assessment Analysis
Research and Development
Swiss Development Cooperation
Small and Medium Enterprise
Strengths, Weaknesses, Opportunities and Threats
Trade and Export Promotion Centre
U.S. Agency for International Development
Value Chain
Village Development Committee
World Wide Fund for Nature

BUTTERNUT | VALUE CHAIN ANALYSIS

1. Executive Summary
Context of the study

Background

The study was commissioned by the NepaliGerman INCLUDE Programme, an initiative

under the guidance of the MoI and supported
by GIZ on behalf of the German Federal
Ministry for Economic Cooperation and
Development (BMZ), with the perspective of
identifying appropriate interventions for the
promotion and upgrading of the chiuri value
chain in three districts, namely, Dang, Pyuthan
and Surkhet. The study was conducted from
September to November 2013. Data was
collected from primary sources through
interactions, interviews and Focus Group
Discussions (FGDs) with value chain actors,
and through secondary sources (review of past
reports). Constraints and opportunities are
listed and analysed within the GIZ ValueLinks
framework.

Chiuri (Diploknemabutyracea), also known as

Nepali butter, is a multipurpose tree. The main
product of the tree is ghee (butter), extracted
from the seeds and named chiuri ghee or
phulwara butter. Flowering starts during the
cold season and fruit ripens in June/July. The
chiuri tree has been utilised for many uses by
rural households. Ghee is used in daily cooking
and as fuel for lamps; the fruit is eaten fresh;
oil-cakes are utilised as manure, and the tree
itself is used as firewood, etc. It has significant
cultural and livelihood associations with the
Chepang community.

Chiuri value chain

Chiuri trees are abundant (10.8 million trees,
MEDEP Resource Survey, June 2010) throughout
Nepal. Found in approximately 50 districts, the
highest numbers (40%) are found in the MidWestern Development Region. There are four levels
of actors within the value chain, namely input
suppliers/collectors; processors; wholesalers/retailer,
and final consumers. The end market of chiuri
products, especially ghee and herbal soap, are local,
regional and national markets, as well as export to
selected countries. Ghee, processed by a locally made
wooden expeller (kol), is consumed by the processors
themselves, while 85% is sold to various soap making
companies and partially exported to the USA, Europe
and Asian countries. There are a large number
of collectors (on average, 100 to 200 households
from each pocket area; 57 pocket areas in the three
selected districts; in total around 8,500 households)
involved in the collection of chiuri seeds from the
community forests and partially from private land.
The seeds are cleaned, dried in the sun, and sold to
nearby cooperatives or retail shops. In many pocket
areas, seeds are further processed in a traditional kol
to produce ghee. In the past, seeds were processed in
a modern expeller, but this was found to produce an
inferior quality of ghee. Processed ghee is transported
to herbal soap making factories located in major
urban areas and the Kathmandu Valley. There are 20
to 30 herbal soap brands using chiuri ghee as one of
the raw materials. Chiuri products are also exported,
either in the raw form as ghee or as herbal soap.
Nepalese consumers prefer herbal soaps.
Apart from the key actors, there are a few
programmes/projects, NGOs, associations and
business membership organisations providing services
to the value chain (VC) actors through business
promotion and capacity building. The government
has been involved in the conservation of chiuri by
providing saplings, ensuring sustainable harvesting
and monitoring activities.

Constraints and opportunities

In spite of the availability of chiuri trees, collectors
are not motivated due to difficulty in harvesting, and
the unattractive price received from traders compared
to the income from vegetables and working as labour
in the construction sector. Apart from the Chepang
community, there is a lack of awareness of the uses
of chiuri. The consumption of chiuri ghee and fruit
is minimal at the local level, apart from a few festival
2

If demand is created, there are

market opportunities for chiuri
as a raw material in cosmetic
products.
dishes. Little research and development has been
carried out to support possible commercialisation
and utilisation of chiuri for industrial use. Adequate
laboratory infrastructure and human resources
are not available in the country to provide lab
services to the entrepreneurs. A few Sundhara
expeller machines were handed over to community
groups and cooperatives by various development
programmes/project in the past, but the results were
not satisfactory (the quality of the ghee produced
by the machine was not accepted by the buyers).
Currently, those expellers are not in operation. The
supply channel is not properly established. There
are few traders in the districts dealing specifically
with chiuri, as it is a seasonal business. The few
cooperatives working in the chiuri sector do not have
adequate funds to purchase seeds from the collectors.
There are a few cooperatives and group-owned
factories promoted by various projects, who invested
in the production of soap made from chiuri ghee and
other ingredients. However, due to lack of proper
management, marketing and financial skills, they
are not operating successfully. Only a few individual
entrepreneurs in the districts and in major urban
areas have been successful in establishing new Nepali
soap brands, which are well accepted by consumers.

Intervention strategies
Upon analysing information gathered from various sources and findings, the following key actions are
recommended.
1. There is an urgent need for the government and development partners to invest in research and
development (R&D) to provide sufficient evidence for the commercialisation and utilisation of chiuri
in various industrial uses. Product development starts from investment in research work, possibly under
a Public Private Partnership (PPP) model.
2. For immediate results, it is necessary to support the expansion and improvement of traditional kols to
process chiuri seeds in partnership with local cooperatives, Community Forest User Groups (CFUGs)
and other groups.
3. Further, facilitation of business linkages with large-scale companies will be necessary.
4. Piloting appropriate technology for chiuri processing should take place through identifying machinery
manufacturers in Nepal and India who can customise and install the equipment as required. Once the
equipment is piloted successfully, it can be promoted in other locations.
5. Provision of support for other new technology and infrastructure, such as for drying, storing and
packaging, is required.
6. Commercialisation of innovative value-added products made from various parts of the chiuri tree
should be piloted. The potential of chiuri honey enterprises should be explored.
7. Capacity building of local level institutions (groups, cooperatives, CFUG, etc) and micro entrepreneurs
on business and marketing skills, and technical know-how.
8. At the implementation level, there are areas for improvement in collaboration and networking with
stakeholders. A detailed resource inventory of seeds, ghee, etc should be carried out.
To conclude, there is a potential of increasing
the income of 7,000 target beneficiaries (chiuri
collectors and small-scale entrepreneurs) by engaging

them not only in the collection and sale of raw seeds,

but in value adding activities such as processing
chiuri into ghee and other new products.

If demand is created, there are market opportunities

for chiuri as a raw material in cosmetic products.
The cosmetic and beauty care sector demands
innovative products, and there is an increasing
demand of herbal products. Efforts have been made
in Nepal by a few entrepreneurs to develop new
products, such as moisturising cream, etc. A number
of similar products were marketed by European
companies on the internet. However, due to lack of
proper infrastructure and knowledge these efforts
were not successful. Research and demonstration
can create awareness of the unique benefits of
chiuri and increase the demand of consumers. In
addition, organic and other internationally accepted
certification will further support the export of chiuri
products. It is also necessary to position chiuri in
the market with different brands, such as a cheap
raw material for lighting, edible oil and high-end
cosmetics products.
3

BUTTERNUT | VALUE CHAIN ANALYSIS

2. Background
2.1. Context of the
Assignment
The Inclusive Development of the Economy
(INCLUDE) Programme is a joint NepaliGerman initiative under the guidance of
the Nepal Ministry of Industry (MoI)
and with Technical Assistance by the
Deutsche Gesellschaft fr Internationale
Zusammenarbeit (GIZ) GmbH, acting on
behalf of the German Federal Ministry for
Economic Cooperation and Development
(BMZ). The programme aims to contribute to
an environment that is particularly conducive
to socially balanced economic development.
Following a partner-oriented and systemic
approach, INCLUDE strengthens institutional
capacities at government, private sector
and cooperative levels and supports their
interaction. The economic stakeholding of
selected target groups is promoted specifically

via value chain approaches. INCLUDEs

objective is therefore: selected actors from
the public, private and cooperative sector
increasingly perform their roles in promoting
socially balanced economic development.
Target groups are the poor and ultra-poor
inhabitants of Nepal who are or could be
economically active, as well as women,
marginalised castes and ethnic/religious groups,
the conflict affected and people with disabilities.
INCLUDE is focusing its programme
intervention on Kailali, Surkhet, Dang, Banke
and Pyuthan Districts.
Under its value chain component, INCLUDE
makes an effort to strengthen selected
value chains with a special emphasis on the
cooperative sector. Currently, INCLUDE is
supporting for the promotion of three value
chains including honey, medicinal and aromatic
plants (MAPs), including chiuri, and dairy.
5

2.2. Purpose and Objective of

the Study
The value chain analysis of chiuri was undertaken
within the GIZ ValueLinks framework, which
includes four interlinked steps: 1. data collection
and research, 2. value chain mapping, 3. analysis of
opportunities and constraints, 4. review findings with
stakeholders and recommendations for future actions.
For the analysis of constraints and opportunities,
the following competitiveness factors are taken into
consideration:
a. End markets
b. Business enabling environment
c. Vertical linkages
d. Horizontal linkages
e. Supporting markets

A value chain is a sequence

of related business activities
(functions) from the provision
of specific inputs for a
particular product to primary
production, transformation
and marketing, up to the final
sale of the particular product
to the consumer. (ValueLinks
Manual)

f. Value chain governance

2.3. Limitations

g. Inter-firm relationships

Challenges faced during the fieldwork and overall

study were as follows:

h. Upgrading
The overall purpose of the analysis is to set the basis
for identifying appropriate interventions for the
promotion and upgrading of the chiuri value chain in
the programme districts and beyond (if needed).
The other specific objectives are as follows:
1. Conduct detailed chiuri value chain analysis
and design appropriate interventions using GIZ
ValueLinks approach;
2. Identify the key functions in the value chain as well
as vertical and horizontal relationships and linkages
between the value chain operators and supporters
involved in the sub-sector;

1. It was very difficult to gather information from

the target beneficiaries based on their recall of
experiences, thus the data may not be scientifically
accurate.
2. Actual baseline data of chiuri is not available and
information gathered is based on interactions with
key persons. Triangulation of data is also difficult, as
it does not always match with other sources.
3. Government stakeholders are busy with many
activities, and do not have sufficient time to meet and
discuss.

2.4. Methodology Used in the Study

The following methodology was adopted for the study.
STEP 1

STEP 2

STEP 3

Preparation work

Field visits and interactions

Participatory workshop

STEP 5

STEP 4

Value chain study report

Tender Documents

Figure 1: Methodology of the Value Chain Study

Preparation work
An extensive literature review of relevant past and ongoing studies, strategies and policies was conducted.
Questionnaire tools were prepared and preliminary
discussions with the INCLUDE focal person and
Programme Manager were carried out through
emails. An International Consultant visited Nepal
and had thorough discussions on the questionnaire
tools and field plan, after which they were finalised.

Field visits and interactions with

district and central level stakeholders
The study team visited three districts (Surkhet, Dang
and Pyuthan) and regional (Nepalgunj), as well as
Kathmandu, market centres to interact with the key
value chain actors, service providers, programmes/
projects and government officials. In each district,
FGDs were carried out with the collectors and
processors.

Primary data was gathered through extensive field

visits in the three districts and interactions with all
key stakeholders. Altogether, about 100 interviews
were conducted, along with telephone interviews
with relevant actors who were not available at
the time of the field visit. In addition, physical
observations on chiuri trees, processing equipment
and other infrastructure (drying methods, storage
facilities, etc) were made.
Before the field visits, all field level meetings were
coordinated with the stakeholders with the help
of the District Chamber Office. In the overall
process, the INCLUDE central and regional
offices were actively involved in the planning and
implementation.
A draft intervention design with detailed analysis
was completed after the field visits. Findings were
shared with stakeholders at a national stakeholders
workshop.

3. Identify key strengths, weaknesses, opportunities

and threats at different levels of the chain;
4. Carry out an economic analysis of the value
addition;
5. Identify key constraints and gaps, and
6. Propose key intervention strategies to upgrade the
functioning of the value chain.

Surkhet

Banke

Pyuthan
Dang

Figure 2: Study districts Surkhet, Dang and Pyuthan, plus Nepalgunj (Banke) and Kathmandu

BUTTERNUT | VALUE CHAIN ANALYSIS

3. Chiuri in Nepal
3.1. Basic Information
Diploknemabutyracea also known as the
Nepalese Butter Tree and locally known as
chiuri is a multipurpose tree. It grows mainly
in the sub-Himalayan tracts on steep slopes,
ravines and cliffs at an altitude of 400 to
1,500 metres. It can be found in most parts of
Nepal. In India (Uttarakhand), it is available in
Pithoragarh District and in the adjoining areas
of Almora, Bageshwar and Nainital District
(Negi et al., 1988). Chiuri is a native of Nepal
and distributed to Philippines, India (Garhwal,
Kumaun) and Bhutan. It occurs naturally in
sub-tropical and warm temperate areas ranging
from 1,000 to 2,000 m with a mean annual
rainfall and temperature varies from 24 C to
27 C. Medium soils with deep granules are
considered good for chiuri plantations. Its seed
kernel contains saponins.

The main product of the tree is ghee (butter),

extracted from the seeds and named Chiuri
Ghee or Phulwara Butter. This important
Non-Timber Forest Product (NTFP) is utilised
for an array of purposes by rural households
and represents an income source for many hill
communities. It has traditionally been used for
daily cooking and as fuel for lamps. The juicy
pulp of ripe fruit is eaten fresh. The oil cakes
have pesticidal properties and are used for
manure, fish poison and, after detoxification,
Botanical Name

Diploknema Butyracea

Common Name

Nepalese Butter Tree

Family

Sapotaceae

Part-Used

Fruit, seed, leaves, stem

as feed for animals. The chiuri tree produces fuel

wood, hard and durable timber, and the leaves are
used as fodder for cattle and buffaloes in many areas
of Nepal. In addition, chiuri has a very important
cultural value in Nepal, especially in the Chepang
community where people give chiuri plants as
dowries, indicating its significance in the livelihood of
the Chepang community.
Table 1: Chemical composition of chiuri
S.No.

Parameters

Fatty acid composition:

C14
C16
C16:1
C18
C18:1
C18:2
C18:3

Amount
0.10%
61.60%
5%
2.30%
31.30%
4.10%
0.10%

Carotenoid

340 g/100g

Vitamin E (total tocopherols)

44.8 mg/100g

-Tocopherol

-Tocopherol

-Tocopherol

-Tocopherol

Retinol

10.3 mg/100g
0.2 mg/100g
32.4 mg/100g
1.9 mg/100g
0 g/100g

Source: http://www.alternative.org.np

Botanical features
It is a medium size tree with a straight trunk of 15 to
22 metres in height and a girth of 1.5 to 1.8 metres.
The bark is dark grey or brown and 1.3 cm thick.
Leaves are 20 to 35 cm long and 9-18 cm wide,
crowded at the end of branches. The fruit is a berry,
2 to 4.5 cm long, bright green or blackish, shinning
with a thick soft pericarp. The fruit is oval in shape
and green in colour with three seeds that turn juicy
and grey after ripening. The exterior of the fruit is
thick, soft, and rich with glucose and fragrance. It
contains black and sparkling seeds of 1.5 to 2 cm in
length, which have almond shaped white coloured
kernels inside. The seed coat is thin to thick and
woody to crusty.
The chiuri tree is considered to be a good soil binder
and could be of immense value in promoting soil
conservation. The tree provides habitat and food for
a large number of animals and insects. Children,
monkeys and langurs shake the flowers and collect
nectar for drinking. A large number of honeybees,
10

wasps, hornets and other insects collect the nectar.

Due to its value as multipurpose tree, people
normally do not chop or fell chiuri trees. They apply
their own traditional way of tree management. There
are a couple of development organisations supporting
the conservation and management of chiuri plants.
Yet, there is still very little information available
on its ecology and biology. Likewise, there is little
published information about cultivation, tending
and management of chiuri in agro-forestry systems
or as a plantation fruit tree. Moreover, the resource
availability in terms of quantity of butter, population
size and trend of chiuri trees has not been precisely
documented.
Chiuri may be propagated through seeds and
cuttings. The seeds should be de-pulped and washed
thoroughly and allowed to soak in cold water for 24
hours. This improves the germination of seeds. The
soaked seeds should be sown in a nursery within
one week. After about 45 days, the seedlings can be
transplanted in poly bags. Cuttings of 25 cm length
and 12 to 18 mm thickness are collected from old
trees during the period May to September. These
cuttings are treated with Indo Butyric Acid (IBA) at
1,000 PPM for better root initiation.
Flowering starts in the months of October/November
at the age of 8 to 10 years. The flower is either white
or yellow in colour with a special fragrance. The fruit
start ripening in June/July.
Chiuri kernels contain a very high nutritional value.
It contains 5 to 20% of protein, 30% of carbohydrate
and 3.8% of ash.
Nutritional Value
Total soluble solid

17 23 B

Non-Reducing sugars

8.31 11.9 %

PH

5.4

Reducing Sugars

4.8 6.1%

Vitamin C

38 mg per 100 gm

Table 2: Physico-chemical properties

Properties

Value

Specific gravity

0.85-0.86

Refractive index at 40 degree

centigrade

1.05 - 1.46

Saponification value

191-200

Iodine value

90-101

R.M. value

0.4-4.3

Boiling point

39 -51

Titer value

48-52

Palmitic acid

56.6%

Stearic acid

3.6%

Oleic acid

36%

Linoleic acid

3.8%

Pyuthan, Dang, Arghakachi, Makwanpur, Dhading

and Gorkha contain a large number of chiuri trees.
The total number of chiuri trees in the country is
estimated at 10.8 million. The highest number of
trees (almost 40%) is found in the Mid-Western
Development Region, followed by the Far-Western
Development Region. Rural communities in the mid
hills areas are familiar with effects of chiuri butter on
human skin, but the use of it as a raw material is just
starting. (MEDEP Resource Survey)
Chepangs are known for their immense knowledge
of forestry products and their collection. They have
a special relationship with chiuri trees as they have a
custom of giving chiuri trees to their daughters as a
gift/dowry during marriage. Thus, due to its multiple
benefits, chiuri is used and known as a private
resource for households in this community.

3.3. Social Economic

Importance
The chiuri tree is found on steep and difficult slopes.
Climbing the tree is difficult and dangerous. This task
is usually done by men while women and children
gather the seeds that have fallen to the ground.
Despite some small-scale trading that has developed
in Nepal, most people use chiuri for their personal
use and only sell what is left over. Rural communities
in the mid hill areas are familiar with the effects of
chiuri butter on human skin, but the use of it as a raw
material is just starting. (MEDEP Resource Survey)
In recent years, some people have started planting
trees on their private land and in the community
forestry areas. Yet, planting on farmland is not very
attractive for small farmers, since it is a slow growing
tree and covers a large area in shade.
The seed fat is applied for headaches, rheumatism,
boils and pimples. It is also used as an emollient for
chapped hands and feet in winter. The juice of the
bark is used for the treatment of indigestion, asthma,
rheumatism and boils as well as anthelmintic. As
mentioned, the oilcakes have pesticidal properties and
are used as manure, fish poison and, once detoxified,
as feed for animals. Chiuri flowers are extensively
visited by bees and hence beekeeping is very popular
in areas where chiuri trees are abundant. Chiuri
flowers have medicinal value as the oil extracted from
its seed is also used to cure different kinds of skin
diseases. The timber is hard and durable and is used
for furniture and the extracted seeds can be used as
organic fertilizer. The chiuri tree is considered to be a
good soil binder and could prevent soil erosion. The
tree provides habitat and food for a large number of
animals and insects. Monkeys shake flowers to collect
nectar for drinking. The pulp of the ripe fruit is eaten
fresh. The juice of the corolla is boiled into a syrupy
liquid, which villagers use as a sugar.

Table 3: List of VDCs in the selected districts known to have chiuri trees

Source: National Oilseeds and Vegetable Oils Development

District

No. of VDCs

VDCs where chiuri trees are available

Board, 2008

Surkhet

22

Lagam, Betang, Lekfarsa, Gumi, Bidhyapur, Guthu, Gadhi, Kunathari, Bijaura,

Pokharidanda, Dahachaur, Lekgaun, Mehelkuna, Dasarathpur, Satakhani, Malarani,
Lekparajul, Khanikhola, Rajena, Kamrichaur, Babiyachaur, Chhapre

Dang

15

Rampur, Lakshmanpur, Hapur, Bijauri, Halbar, Pabannagar, Purandhara, Bagmare,

Hansipur, Saiga, Siuja, Kavre, Loharpani, Ghorahi, Tulasipur

Pyuthan

14

Tirang, Khala, Hansapaur, Bijuwar, Baghdula, Dharmawati, Asurkot, Dhobighat,

Jaspur, Chuja, Fatali, Maranthada, Torbang, Markabang

Total

51

3.2. Geographical Distribution

The geographical distribution of chiuri trees in Nepal
extends from Darchula, Baitadi and Dadeldhura
Districts in the west to Dhankuta and Ilam Districts
in the east. Almost 50 districts are known to
have chiuri plants. Out of these districts, Baitadi,
Dadeldhura, Doti, Surkhet, Jajarkot, Rolpa, Rukum,

11

Wine and fruit juices

Beekeeping

Many people in rural community eat ripe chiuri

fruits. The flower nectar and the pulp of ripened fruit
can be used to make wine.

Beekeepers in chiuri threshold areas can earn as

much as one third of their total cash income from
the sale of honey and beeswax (Gurung et al, 2001).
Beekeeping requires minimal start-up investment
and generally yields profits within the first year of
operation. It is very suitable for poor and low-income
groups. Moreover, honeybees create a win-win
situation between preservation of the environment
and income generation; they help both maintain
biodiversity by providing pollination services and
increase incomes through the production of honey
and other bee products.

Table 4: Chemical composition of chiuri cake

S.No. Parameters
Amount
1

pH

5.6

Nitrogen (N) %

3.76

Phosphorus (P2O5) %

0.85

Potassium (K2O) %

1.55

Organic matter (OM) %

67.41

C.N. Ratio

10

Source: SNV Nepal, Agriculture laboratory of Agriculture

Technology Centre (ATC), -HVA-IB project

Butter or oil

Considering the number of chiuri trees available in

the country, approximately 17,825 metric tonnes of
chiuri honey can be harvested. However, at present,
beekeepers harness less than one per cent of the total
potential. (MEDEP resource survey report)

The chiuri seeds are processed into butter or oil.

Chiuri butter is rich in sugars and other nutrients,
and used in daily cooking (Sundriyal and Sundriyal,
2003).

General uses of chiuri

1. It is used as a food, fodder and for medicinal purposes, so called Kalp-Vriksha.
2. Wood is used for timber, furniture, handles of agriculture tools, fuel woods, etc.
3. Chiuri leaves are used as fodder for animals, and for making bio-degradable plates for serving food.
4. Chiuri ghee for cooking and frying of vegetables and food.
5. Ghee is also used for chapped skin, rheumatism, and in long lasting, smokeless butter lamps.
6. Ghee is used for preparing medicines, ointment, candles, cream and other cosmetic products.
7. Th
 e oil-cake is a by-product made from the seed husks and seed waste after processing, and is used as
manure. It has pesticide properties. The cake can be used as a crude fish poison substituting dangerous
chemical pesticides often used by rural communities. It has a fair amount of saponin, hence, can be
served as a source of saponin for industry in the future.
8. C
 hiuri flowers are a rich source of sugar and can be utilised for the preparation of sugar like substances
and for fermentation (alcohol).
Figure 6: Utilisation of various parts (nectar, fruit, seeds, wood, etc) of the chiuri tree

Figure 5: Uses of chiuri trees, field interview, September, 2013

Fruit
Juice and Squash
Flower
Chiuri Beekeeping
Seeds
Ghee for household consumption
Seeds
Ghee for soap and other cosmetics
Trees leaves
Fodder for animals
Oil cake
Organic insecticide
Organic fertilizer

(Source: HVAP Brochure)

12

13

BUTTERNUT | VALUE CHAIN ANALYSIS

4. Value Chain Mapping

4.1. Overview
The value chain map of chiuri describes the
flow of commodity from its initial harvesting
from community and national forests and
private lands to processing into oil and other
finished products and finally to the end
consumers, both domestic and international.
The value chain map shows functions, actors
and relationships with other actors and service
providers (government and I/NGO).
The end market of chiuri is the local
community itself who consumes the ghee
processed by locally made wooden expeller
(kol). Other major usage of chiuri is industrial
use in the manufacture of herbal soaps and
cosmetics such as moisturising cream, face
wash, anti-aging cream, night cream etc. with
a potential to replace imported products.
There are 20 to 30 micro and small-scale soap

enterprises established in the districts with

limited production. A few more, with larger
capacities are in operation in the Kathmandu
Valley.
It is very difficult to estimate the actual
production and consumption of chiuri ghee
as there is no proper data available. After
interaction with the market actors, it can be
roughly estimated that 200 tons of ghee are
produced in Nepal (68 tons from the three
study districts). Eighty five per cent is used in
soap and other cosmetics, 5% used in local
and neighbouring districts for daily use, and
the remaining 10% for exports in the form
of ghee and herbal soap. With awareness and
promotion interventions along with linkages
with industrial buyers, about 600 tons (refer
to Table 20) of chiuri ghee can be produced
within a short time frame. With intensive
technological breakthroughs by introducing
15

Functions

Figure 7: Chiuri value chain map, GIZ 2013

Input Supply

Chiuri Processing
- Oil

Processing Finished Products

Wholesale/
Retail

End Market
(Consumers)

Figure 8: Estimated demand of chiuri products by

various target markets
Traget Market

Qty in Tons

Soap companies

1,080

Monasteries and temples

120

Cosmetic companies

100

Export-Cosmetic company buyers

240

Chiuru Ghee

Actors

Community/
Natiional Forest

Private land

Traditional Kols

Chiuri Seeds
(Bijula)
Collectors

Herbal Enterprises
- Micro

15-20 Kols in each

pocket area

Herbal
Enterprises
SME

Chiuri
Cooperatives

Herbal
Soap

Mostly
Chiuru
Ghee and
less
Herbal
Soap

Retail Shops

Services

UNDP/MEDEP
GIZ
SNV
ANSAB

WWF
CCI
SDC

VC Operator

Export - Europe,
USA, Japan etc.

Limited number (5-6 in each

district)

Source: Consultants forecast based on discussions with key

stakeholders.

DCSI
MOFSC
DOF

Enabling Environment
VC Supporter
VC Enabler

highly efficient expellers and expansion of improved

kols a production of about 1,500 tons of ghee can be
achieved.
People who live in the mountains demand ghee for
daily use as a skin ointment and as a moisturiser.
For this reason, few traders located in the mountains
carry ghee along with other commodities to the
nearby urban market centres.
There are well established herbal soap brands (Chiuri
Neem, Okhati, Mayur, Mero, etc.) manufactured in
Nepal with a wide national coverage. On the other
hand, there are many local brands of Nepali herbal
soap manufactured at the local level catering to local
demand, with limited capacity for wider distribution.
Chiuri ghee is being exported to Europe, USA and
other Asian countries by some national companies
working in the herbal sector. As per the interaction
with traders, the data shows that in 2012 more than
20 tons of ghee was exported to Italy and France.
Additionally, some quantities of soaps were exported
to Japan, USA and other countries. However, actual
data is not available. Traders have expressed that
there are difficulties in export due to the presence
of microbial bacteria in the chiuri ghee, packaging
materials and high cost in seeds processing.

16

Regional and
National Markets

HNCC
JABAN
NEPHA
FNCCI/AEC

Business Services
VC Stage

85%

10%

Chiuru Cooperatives
(improved technology)

10 coop in Surkhet
1 coop in Pyuthan

Local Markets

Traders

20-30#

150 collector is
each pocket area

5%

End Market
Links between operators

Chiuri saplings are distributed by the Department of

Forests (DoF) to Forest User Committees and others
on a cost-sharing basis. Initially, NRs. 1 per sapling
has to be deposited in DoFs bank accounts and upon
the saplings successful growth the depositor will be
rewarded with NRs. 5 per sapling after monitoring by
a DoF official. On the conservation and regeneration
aspects, there is little work done.
There are a large number of people engaged in the
collection of chiuri from both community and private
land in the months of July-September. Processing
is usually done in a traditional wooden expeller
owned by a community. There are no expenses as
such incurred in the processing of chiuri as the whole
family is involved in the processing. Approximately,
four to five people are involved to process 100 kg
of chiuri seeds. There are seven modern expeller
machines installed in the three districts (Surkhet - 4,
Pyuthan 1, and Dang 2), supported by various
projects and owned by cooperatives and private
entrepreneurs. However, these modern expeller are
mostly not in operation due to their inability to
produce quality ghee. In addition, traders and soap
companies demand ghee expelled by traditional
kols due to its colour and quality. Recently the
INCLUDE Programme has supported Deuti Herbal
company in Surkhet to install a new expeller machine
with improved quality imported from India.

4.2. Actors in the Chiuri Value

Chain
Even though there is a large number of NTFP traders
in Nepal, there are only a few traders who are well
known in the chiuri sector. Below are the primary,
supporting and enabling actors in the chiuri value
chain.

4.2.1. Primary value chain actors

Input suppliers
Input suppliers are actors who provide all necessary
inputs in the chiuri value chain. Currently there
are very few actors, mostly DFO and projects,
who support in the production of saplings though
local NGOs and CFUGs for the protection and
conservation of chiuri trees (not actually visible in the
chain).
In the manufacturing of soap the suppliers of
chemicals and other oils are mostly from India and
Kathmandu. The main chemicals used in herbal soap
making are caustic soda, foam booster and spirit. The
variety of oils used includes coconut oil, essential oils
for fragrance, etc.

Collectors
Chiuri is mostly collected from community and
national forests and partially from private land.
About 2.2 million households or 41% of the

Table 5: Community forest status of the three programme districts

District

No. of FUG

Total C.F area (in hectares)

No. of HH

Surkhet

302

59,856

45,756

Dang

480

98,732

92,745

42,517

47,219

Pyuthan

373

Total

1,155

201,105

185,720

All Nepal

17,809

1,665,419

2,194,545

Source: Department of Forest, Community Forest Division, Kathmandu, Nepal, 2013

Table 6: Estimated area of chiuri forest and number of trees

District

Forest area in
hectare

Area of potential
chiuri forest

Approximate area of
current chiuri forest

Estimated no. of
chiuri trees

Dang

873

281

93

519,211

Pyuthan

935

288

95

530,820

208

69

384,162

Surkhet

2,077

Total of MWDR

10,940

2,098

692

3,871,630

All Total (Nepal)

45,891

4,721

1,933

10,813,712

Source: MEDEP, 2009

17

Table 7: Seed and ghee collection in tons

S.No.
1
2
3
1
2
3
4

1
2
3

Description
10 Cooperatives at 10 quintal each
10 individual businessmen at 6 quintal each
Others
Total Surkhet (seeds)
Airawati Agriculture Multipurpose Cooperative
Soap Factory
Traders - 6 No. at 5 quintal each
Others
Total Pyuthan (ghee)
Total Pyuthan (seeds)
Soap Factory
Traders (10 No.)
Others
Total Dang ( ghee)
Total Dang ( seeds)
All Total (seeds)

District
Surkhet
Surkhet
Surkhet
Pyuthan
Pyuthan
Pyuthan
Pyuthan

Dang
Dang
Dang

Collection quantity in tons

10
6
4
20
2
3
3
2
10
30
1
20
2
23
69
119

Source: Field Survey

households of Nepal (5,423,297 HH, Census 2011)

are involved in community forestry. Approximately,
17,809 Community Forestry User Groups (CFUGs)
have been formed. A total of 1.66 million hectares of
national forest has been handed over as community
forest and 2.1 million households have benefited.
Community forests have always been a source of
chiuri collection. On average, there are around 100
to 200 households directly benefited from each
community forest.
It is estimated by the Micro Enterprise Development
Programme (MEDEP) resource survey that 10.8
million chiuri trees are available in the country. Of
which, 5.6 million (52%) are in flowering stage. The
average number of trees was estimated as 5,593 per
square kilometre.
Chiuri is usually collected for two to three months,
ending in August. Even though actual data is not
available, as per the interactions with the collectors
from three districts, on an average, each household
collects 50 to 250 kg of seeds in a season.
There are 100 to 150 collectors in each pocket area
(57 pocket areas are estimated in the three districts;
in total around 8,500 households) where chiuri is
available, who sell seeds to the local retail shops,
cooperatives or other middle-men, who then further
sell it to the national processing companies. In
Surkhet, there are ten active cooperatives and ten
private individuals involved in chiuri seed collection.
18

In Dang, there is no cooperative involved in chiuri.

In Pyuthan, only one cooperative is actively involved.
Last year, twenty tons of seeds were collected
from these cooperatives. Apart from chiuri, these
cooperatives also deal in other NTFPs available in
the districts, namely mentha, timur, malagedi, harro,
barro, etc.
Once the seeds are harvested they are cleaned and
dried. In the village, the seeds are dried by placing
in a mat above the fire. Unsold seeds are processed
into ghee by crushing the seeds in a locally made
tool called dong, dhalei, or musal. It takes two
hours to crush 12.5 kg of seeds. After crushing, the
seeds steam for one hour, in a dikchi (local cooking
utensil). To extract the ghee, the crushed and steamed
seeds are pressed using a chepuwa. This is a local
piece of equipment made from the log of a tree. They
put the seeds in a special basket and put the basket
between the logs. Then they tie the logs together very
tightly, with a stick and then the ghee is squeezed
out. It takes 15-20 minutes for two people to squeeze
one basket of seeds. The pina (waste product that
remains in the basket) sells for NRs. 12-15 per kilo.
The liquid ghee is put into pots and after 12 hours
it solidifies. The pots can be silver, wooden, plastic,
or even the crown of a banana tree or a piece of
bamboo. One household uses approximately 60kg
of ghee per year. The ghee that is extracted with the
chepuwa has a good taste. Sale of the ghee takes place
only once in a year.

Processors

e. Filtering machine, and

Chiuri is mostly processed by traditional expellers

(kols). In each pocket area of each VDC there are
15 to 20 kols. There are a few modern expellers
manufactured in Butwal (brand name: Sundhara)
installed in a few locations, but the quality of ghee
from these expellers is not satisfactory. The machines
are usually owned by groups and cooperatives with
support by various projects and programmes. Two
methods are followed for expelling oil from the seeds.

f. Butter is finally packed in a vessel.

The traditional processing technique involves the

following steps:
a. Washing for cleaning;
b. Drying to remove the moisture content;

The product is bitter in taste due to high content of

impurities such as saponins, which are carried along
with the fat extracted in this process. The ghee needs
post filtration or purification to become edible. The
final product is white with a strong smell and taste.
Chiuri ghee remains solid up to 48 C and does not
deteriorate in hot weather.
Figure 9: Chiuri processing steps
STEP 1
Collection of Chiuri Fruits

c. Grinding of seeds;
d. P
 laced in a locally made vessel made by husks
and steamed at optimum level until vapour
starts;

STEP 2
Squeezing the chiuri fruits

e. Placed in an expeller to extract oil;

f. E
 xtraction of oil filtered through a white cloth
and stored until it is either sold or stored for
future use, and
g. Th
 e butter is finally packed with leaves into
pieces of 2.5 kg in weight.
There are two types of traditional kols: one which
uses circular movements by a wooden log and
another which uses two chopped wooden logs,
compressed by human force.
Modern expelling of ghee involves the following
steps:

STEP 3
Remove the Pulp

STEP 4
Cleaning Seeds

STEP 5
Drying the Seeds

a. Washing of seeds for cleaning;

b. Drying of seeds;
c. Hauling to remove outer shell;
d. Extraction of oil using modern expeller;
Figure 10: Expeller, Sundara Brand, Pyuthan, field
survey, September, 2013

STEP 6
Grading the Seeds

STEP 7
Crush and steam the Seed Flour

STEP 8
Extract oil using modern or Traditional Oil Expeller

STEP 9
Filter and purify Oil
19

Figure 11: Traditional Kol, wooden type A, Laximpur, Dang, field survey, September, 2013

Most forest products are collected from remote areas

and have to be transported a long way to Kathmandu
or other trade centres. On the way, traders have
to pass through several checkpoints set up by the
police, the Forest Department and local government.
At each point, the products or documents have
20

In Nepal, local FM radio and television have played

a key role in the promotion of products. The local
brands of herbal soaps which are promoted this
way have raised awareness of herbal, animal-fat free,
Nepalese products.

End market actors

Households: Chiuri butter has been used in rural
households for many years, and during FGDs it was
found that butter can be stored for a whole year after
processing. A large number of the rural population
living at high altitude purchase chiuri butter from

Cosmetic producers: In Nepal, there has been

limited use of chiuri in cosmetics products. The
Alternative Herbal Products Company has produced
moisturising cream with the brand name Niko
Crack targeting local markets, which has a similar
use to products such as Nivea and Ponds creams.
A few European companies have produced various
products, such as face wash, after-shave, various types
of cream, toothpaste, etc made from chiuri, which are
available for sale through online direct marketing.

4. A
 dd heated sugar syrup (1.67 kg
with 1:1 sugar water ratio and stir
well
5. Add spirit (2 litres) and stir well
6. A
 dd lemon grass oil (80 ml) and
cover with cloth for some time
7. Stain
8. Add Neem oil (50 gm)
9. Add Mentha (50 ml) and stir well

Mixing with essential oil and

fragrances

Transporters

Media (local FM radio and television)

Lighting producer: In the past, chiuri ghee was

used for lighting in all temples and monasteries,
and during rituals due to its purity. Nowadays there
are other substitute butters and oils available at
competitive prices and thus chiuri ghee is mostly not
used in such places anymore.

3. A
 dd caustic soda solution (1.5 kg)
with a caustic soda water (ratio of
1:1.75) and stir well with the stick

10. Pour in mold(4 molds)

11. U
 n mould, cutting, curing and
packaging 72 pieces of 80 gm
soaps

Cutting,
curling, &
packaging

Traders operate at local, regional, and national levels.

Chiuri seeds or processed ghee is purchased by the
local level traders, retail shops or cooperatives. The
seeds and ghee are sold to the processing companies
located mostly in the Kathmandu Valley; there are a
very few in the districts. Cooperatives and retail shops
play a vital role in collection of chiuri seeds and the
ghee from the collectors by paying them immediate
cash, which has motivated collectors and spread a
message in the community that seeds and ghee can be
easily sold in the market.

2. Stain

Mixing Lye Solution

and Oil

Traders

to be submitted for inspection. This increases

transportation time, creates hassle for entrepreneurs,
and can create situations vulnerable to corruption. In
many instances, the quality of seeds degrades due to
the long transit time.

Herbal soap companies are performing well in the

market. The Okhati brand has sales of more than
100,000 bars of soap per month. If herbal soap had
only 5% of the total soap market in the country,
it would be sufficient to sustain business. Selling
500,000 bars of soap would also not be a big task,
says Mr Shova Basyal, CEO, Jai Kali Soap. Herbal
soap is a unique product and has a niche market as it
uses chiuri as a base oil instead of animal fat. Herbal
soap making is an innovative process using a variety
of ingredients, essential oils, fragrances etc, depending
on the target markets need.

1. H
 eat a mixture of chiuri ghee,
coconut oil, and castor oil to 120
deg.

Mixing lye or Caustic

Soda (sodium hydro
oxide) solution

Soap manufacturers: There are a small number of

herbal soap manufacturers all over Nepal, including
the three study districts, who produce soap using
chiuri ghee. There are some soap manufacturers
in Kathmandu who cater to the specific niche
requirements of buyers. There are now more than
40 brands of herbal soaps, sold in large quantities
and available all over Nepal. Among them, Okhati
and Asmi herbal soaps are the most popular. These
two brands have done aggressive marketing through
local media and television. There are also local level
soap manufacturers supported by MEDEP that cater
to local demand and some have links with national
marketing companies, such as Mahaguthi and other
exporters.

Figure 12: Flow chart of chiuri herbal soap

making process
Mixing the
oil base

neighbouring districts for daily consumption,

especially for cracked skin and as a moisturiser. There
are some retail shops located in urban areas of the
three selected districts that purchase chiuri butter
from the local community and sell it to neighbouring
district traders. For example, traders from Rukum and
Jumla District purchase chiuri butter when they come
to Surkhet to purchase other commodities for resale.

Dealers: They are the marketing agents selected by

the soap manufacturers for regular distribution and
marketing of products.
Wholesale/Retail: Herbal soaps are sold to the
consumers through medical and Ayurvedic shops and
other retail shops located all over the country. There
are specialised herbal soaps which are manufactured
as per the clients need or targeted to tourists and
also sold in bookstores and gift shops such as
Pilgrims, Wisdom Books etc. Raw ghee is sold in the
21

Table 8: Import of palm oil, animal or vegetable fats and oil seeds in Nepal
S.
No.

Product Name

Crude palm oil

Year 2012

Year 2013 (October)

Quantity (kg)

Value ( NRs)

Quantity (kg) Value (NRs)

36,245,949

3,334,518,602

24,508,294

1,886,095,955

3,273,307

331,879,218

2,989,311

249,589,847

Palm oil

Oil seeds and oleaginous fruits:

miscellaneous grains~ seeds and
fruit: industrial or medicinal
plants: straw and fodder

195,098,881

8,137,324,310

129,756,191

4,217,892,152

Vegetable fats and oil~ partly or

wholly hydrogenated

2,005,349

282,441,526

484,950

47,066,649

Animal or vegetable fats and

oils and their cleavage products:
prepared edible fats: animal or
vegetable waxes

189,408,179

20,076,028,554

94,247,621

8,739,456,241

426,031,665

32,162,192,210

251,986,367

15,140,100,844

Grand Total

local market centres by retail shops for household

consumption and medical uses.
Exporters: There are few exporters of herbal soaps
who export mostly to Europe, USA and other Asian
countries. There are no export figures available to date
thus it is very difficult to estimate the exact quantity
exported from Nepal.
The export of herbal soap is difficult due to quality
standards and regulations. Some specialised herbal
soap producers, such as Bounty Himalaya, Natures
Essence, Mero Herbal, Wild Earth, and a few fair
trade shops, such as Mahaguthi, have been exporting
herbal soaps to other countries. There are a few herbal
companies who have been exporting chiuri ghee to
cosmetic companies in Europe in small quantities.
According to interaction with export companies,
Himalayan Bio Trade Pvt Ltd (HBTL) has exported
1.6 tons of chiuri ghee, Alternative Herbal Products
(AHP) has exported 12 tons, and few other
companies such as Bounty Himalaya and Mahaguthi
have exported small quantities. AHP, HBT and
Bounty Himalaya are active in Surket, Pyuthan
and Dang Districts. In order to secure orders from
overseas buyers, they send samples through courier.
Those cosmetic companies are refining and further
processing chiuri ghee into other forms for use in the
manufacture of cosmetic products. Those products
are sold through network marketing, websites, and
personal contacts.
According to the data of the Trade and Export
Promotion Centre (TEPC), Nepal currently imports
huge quantity of palm oil and animal fat and oil for
22

industrial use. The import value of these products in

2012 and 2013 was about NRs 32 billion and NRs
15 billion, respectively. (Table 8) This import value
can be reduced if proper support is provided to make
soaps, shampoos and other products using chiuri
ghee as one of the basic raw materials.

4.2.2. Supporting organisations (NGOs,

associations, development partners)
In the districts there is a lack of service providers
for skills training on cultivation and processing
technology, social mobilisation and capacity
building which could be used in the chiuri value
chain. The NGO Sundar Nepal Sanstha supported
the piloting of the chiuri value chain programme
through the High Value Agriculture Programme
(HVAP) in Surkhet District. HVAP, Micro Enterprise
Development Programme (MEDEP) and MSFP are
actively involved in the working districts.
Federation of Nepalese Chamber of Commerce and
Industries (FNCCI) is the federation of all district
chambers of commerce and trade associations. It
is the apex body of larger enterprises and provides
support to industries and traders. It works for the
interest and promotion of investors and is currently
launching a number of projects with the support of
many donor agencies.
Federation of Nepal Cottage and Small Scale
Industries (FNCSI) is an apex body of micro, small
and cottage industries. It represents their interests
and takes initiatives for policy and other changes.
However, the FNCSI mainly represents industrial
and service enterprises.

Federation of Community Forest Users, Nepal

(FECOFUN) is a formal network of Forest User
Groups (FUGs) from all over Nepal. FECOFUN
is a representative umbrella organisation of the
Community Forest User Groups for the sustainable
management of forest resources and the formulation
of necessary processes, structures and monitoring
mechanisms. There are more than 17,800 CFUGs
and other Community Based Forest Management
Groups (such as leasehold forestry groups, religious
forestry groups, buffer zone and traditional forest
management groups) in Nepal.
Jadibuti Association of Nepal (JABAN) was
established in 1995. The main objective of JABAN,
which is mainly based in Nepalgunj, is to make
sustainable use of the countrys natural resources
and provide necessary support to rural communities
for producing and marketing quality Non-Timber
Forest Products (NTFP). JABAN is also committed
to be attentive for making maximum use of raw
materials to produce consumer goods and support
entrepreneurs in this field. It has tried to introduce
its herbal resources to the national and international
market. JABAN is particularly attentive to
environmental conservation, quality herbal products,
buyers interest etc.
Asia Network for Sustainable Agriculture and
Bioresources (ANSAB) is working in the field of
biodiversity conservation in the mountain districts.
It is doing so through its various programmes, such
as, enterprise-based biodiversity conservation by
promoting community based forest enterprises;
market information system for NTFP, and
certification and sustainable marketing of NTFPs.
In its programme, there are elements of NTFPs
promotion through enabling the Forest User
Groups to include NTFPs in forest management
plans. The NGO helps identify NTFP promotion
interventions. ANSAB has tied-up with an US based
cosmetic company (AVEDA, http://www.aveda.
com), and research work (testing in the market) has
been carried out for commercialisation of various
cosmetic products.
In the past, development partners in the chiuri
sector, have supported in the collection of seeds,
capacity building of collectors and designing new
improved technology to process chiuri into ghee. At
present, there is no other development programme
actively engaged in the study districts.

MEDEP has been engaged in the chiuri value

chain since 1998 and created 192 entrepreneurs
(MEDEP report) in processing and herbal soap
making. MEDEP has conducted a resource survey,
several entrepreneurship skill trainings, soap making
trainings, upgraded processing technology for oil
extraction, and has provided marketing support
through the District Micro-Entrepreneur Group
Associations (DMEGA) and Saugat Grihas. Similarly,
the Livelihoods and Forestry Programme (LFP)
through SDC support has supported local groups
and cooperatives in establishing upgraded processing
technology.
SNV Nepal piloted (2010) the value chain
development of chiuri in 18 VDCs of Surkhet
District to test and learn how the Inclusive Business
approach developed by SNV could make a difference
in linking remote farmers to markets in Nepal. Eight
cooperatives signed contracts to supply 35 tons of
chiuri beans (collected by 1,040 households) with
a trading company. The company provided 25%
payment in advance to the cooperatives and the
National Co-operative Bank provided another 25%
as a loan for the required working capital. The pilot
project supported in many areas: temporary drying
houses for cooperatives; harvesting training to seed
collector of eight cooperatives; facilitated in seed
transportation from Surkhet to Nawalparasi, and
laboratory analysis as well as chemical composition
from Tokyo, Japan. A major challenge was to
organise the paper work related to permits and taxes
(royalties) to export from one district to another. An
Initial Environmental Examination (IEE) is required
to establish harvestable amounts, which could not be
carried out on time.
INCLUDE Programme is supporting community
based cooperatives for the promotion of medicinal
and aromatic plants (MAPs) including species like
chamomile, mentha, lemongrass, ginger and chiuri
through its interventions at different levels of the
value chain. In this regard, it has followed the strategy
of building the institutional and business capacity of
cooperatives and linking them with market players.
The INCLUDE Programme has provided training for
the sustainable harvesting of chiuri seeds and for seed
quality maintenance. It has supported seed dying in
plastic greenhouses using locally available resources.
The programme is now supporting 10 community
based cooperatives for their investment in Deuti
Herbal Company for processing and marketing of
chiuri ghee using a modern expeller machine.

23

4.2.3. Enabling organisations

(government entities)
These organisations provide services to the value
chain actors in terms of promotion and conservation
of the sector.
Ministry of Forest and Soil Conservation (MoFSC)
has been formulating rules, regulations and making
other policy decisions in order to enhance the income
and employment status of rural people who are
dependent on NTFPs for their basic requirements.
It also coordinates among various departments
and projects within the Ministry. The Foreign Aid
Coordination Division (FACD) of the Ministry is

regulation. The Department of Forest evaluates the

Environmental Impact Assessment (EIA) reports of
the proposed projects. Nepals environmental policies,
legal provisions and government guidelines have set
stringent provisions, such as the requirement for an
EIA and an Initial Environmental Examination (IEE)
to be carried out before establishing forest-based
enterprises. Small and medium forest enterprises that
operate with modest environmental effects have to
go through a detailed EIA and cumbersome approval
process. In many instances, these requirements are a
deterrent to their development.

responsible for the overall coordination with donors

and the recipients, among the government agencies
and I/NGOS working in the field of NTFPs and
MAPs. Policy formulation, conflict resolution,
and information dissemination is being provided
by the Ministry and its departments. Biodiversity
conservation, research, monitoring and evaluation,
cultivation management and establishment of
marketing channels are the major focus of the
MoFSC. Recently the Nepal Government has
established a high level NTFP Promotion Board for
the development and promotion of the NTFP sector.

Department of Plant Resources (DoPR) is

providing special services in the field of research and
development of plant resources in Nepal. Under
the trade promotion programme, the Department
is providing laboratory services for exports. To
promote chiuri, the Department has been providing,
at a nominal cost identification and certification
to individuals or companies for exporting to other
countries. This has helped exporters clear their goods
through Custom Offices in Nepal. Recently, the
Department has standardised chiuri with certain
specifications (gravity point, melting point, iodine
value, acid value, etc) from samples collected from
four districts, namely Salyan, Jajarkot, Baitadi and
Surkhet. The data has not yet been disseminated.
However, the results show that the quality of
chiuri is best from Salyan and Jajarkot Districts.
The Department is involved in the management
and improvement of NTFP resources. It has many
farms, botanical gardens and herbariums established
to undertake active research activities and piloting
of extension activities. Ex-situ conservation of
endangered as well as high value NTFPs is the
major activity of these farms. Data and information
collection on MAPs, integrated research activities,
publication of documents and extension materials on
NTFPs are the major focus area of the Department.
It has also established a distillation unit at Jumla
for high value aromatic oils. It is also undertaking
demonstration of cultivation management of high
value MAPs and information dissemination through
trainings.

Department of Forests (DoF is the main government

entity for the conservation and promotion of forest
resources. DoF has an enterprise development fund
to support the creation and promotion of enterprises
mostly to community groups. DoF collects a
royalty from national and community forests
according to the rates specified (NRs3 per kg) in the

District Development Committee (DDC) and

Village Development Committee (VDC): The DDC
has extensive power, functions and responsibilities
and takes full responsibility for all development
related work in its district. It is an apex coordinating
body, providing development programmes with a
list of functions and duties to be performed at VDC

Table 9: Legal steps for collection and export

Requirement
Issuing Agency
Collection Permit

DFO/CFUG

Royalty Payment

DFO/CFUG

Issue (transit) Permit

DFO

Local Taxes

DDC

Certificate of Origin

FNCCI/CCI

Product Certification

DPR/ DOF

Export License

Department of Industries

Export Duty

Customs office

Source: Forest Connect: http://www.fao.org/forestry/site/42297/en

24

and Municipality levels. DDCs/VDCs have, in some

cases, also imposed local taxes on different NTFPs
and/or their derivatives before they could be exported
from their respective locations.

Department of Cottage and Small Scale Industries

(DCSI) and Cottage and Small Industry
Development Board (CSIDB): The DCSI and
CSIDB register, approve and administer cottage and
small-scale industries. They provide vocational and
entrepreneurial training and also regulate the MSEs.

25

BUTTERNUT | VALUE CHAIN ANALYSIS

5. Analysis and Findings

5.1. Key Constraints and
Opportunities
As consumers are increasingly becoming
attracted to natural, herbal or organic products,
there is growing demand in Nepal and abroad.
Chiuri ghee and herbal soaps are exported to
Europe, the USA and other Asian countries.

Despite the high potential of chiuri to

contribute to poverty reduction of rural people,
there are challenges and constraints as well.
Both aspects are elaborated elaborated on the
following pages.

27

Chiuri Collection
Constraints
A
 lthough the number of collectors is high, they are
only engaged for a limited time and not on a full-time
basis. They do not see the collection of chiuri as a
business, but rather as seasonal labour.
C
 hiuri trees are mostly found in rugged terrain
and it is difficult to climb trees to collect seeds. The
collectors have to wait for the fruit to ripen and the
seeds to drop. That means sometimes the collectors
return without any seeds or resort to cutting whole
branches to access the seeds. Average collection of
seeds ranges between 10kg to 250kg each season per
household. This is mainly used for personal household
consumption.
C
 ollectors are not attracted to chiuri collection when
they can earn money more easily from vegetables and
NTFPs.
D
 ue to the high risk involved in harvesting the chiuri
fruit, normally male harvesters climb the tree and
women gather the fallen fruit. Children also help in
fruit collection.
L
 ack of knowledge results is overharvesting and
premature collection.
Fruiting occurs every alternate year.
A
 basket (doko) is used for harvesting, no other
equipment is available.
Transporting the fruit by tractor from the collection
centre to the nearest market centre is difficult during
the rainy season, as the streams become impassable
during that period.
C
 hiuri seeds need to be properly dried before selling.
However, due to difficulty in drying during the
monsoon, seeds may be sold without being properly
dried.

Processing of Chiuri Ghee

Opportunities
If traders can guarantee regular markets then there is a
possibility of regular fruit collection by the collectors.
Not all chiuri seeds or ghee are sold in the markets,
almost 50% (as per FGDs) is saved for household
use. At household level the butter is used in daily
consumption and for relatives and neighbours.
Collectors are aware of the multiple benefits of the
chiuri tree, and if there were markets, they would be
more willing to work in this sector.
Community Forest User Groups (CFUG) and
cooperatives could be the right institutions for the
collection, collective marketing and further processing
for cash incomes.

Constraints
I n the past, a few donors (LFP, MEDEP, WWF, etc)
distributed expeller machines in many parts of Nepal,
without piloting this technology up to receiving
effective results. These expeller machines were not
custom designed for chiuri, and are perceived of being
unsuitable for processing.
Improved expeller machines (Sundhara) installed by
projects in many locations have also not shown good
results and are mostly not in use. One reason is that
the machine gets jammed within a short time when
the temperature of the seeds is below 35 C.

The chiuri seed collection process could be improved

by implementing proper sustainable harvesting
practices.

D
 ue to the moisture content in the raw seeds, the
processed ghee is of inferior quality and not accepted
by buyers. Exporters have reported that the ghee to be
exported was rejected due to presence of fungus. The
raw seeds are not properly dried and processed into
ghee.

If collectors were organised in a group and affiliated

with cooperatives or users groups then there would
be possibilities for collective marketing and increased
efficiency in the regular supply chain.

The traditional processing technique is labour intensive

and requires the involvement of many people to
produce ghee. Up to four people are involved in ghee
processing.

Opportunities
G
 hee processing through traditional kols is labour
intensive and involves many steps, but the quality of
ghee is good and mostly available in each pocket area
where chiuri trees are available.
C
 ustom designed expeller machines for chiuri
processing will result in better efficiency and reduce
the cost of ghee production.
Q
 uality improvements in the processing of ghee
will result in better overall performance of cosmetic
products.

Th
 e processing of the product requires a substantial
quantity of fuel-wood, which is not accounted in
costing, as it is freely available in the forest.
Th
 e efficiency of the traditional expeller (kol) is low.
It extracts only around 25%, whereas in an improved
expeller (Sundhara brand) extracts as much as 30 to
35%.
Th
 e oil content of chiuri seeds gradually reduces
during the cold season due to the lower temperature.
Th
 e ghee produced has a smoky smell, when it is dried
in smoke.

C
 FUGs have not included chiuri in their operational
plans, as they have not realised its importance and
income potential.

28

29

Trading of Chiuri Seeds and Ghee

Constraints

Manufacturing of Soap and Other Cosmetic Products

Opportunities

Th
 ere are a limited number of traders (individuals or
cooperatives) involved in purchasing seeds and ghee
both in the study districts and Kathmandu. Due to
this reason, collectors are less motivated and it is more
difficult for them to sell seeds or ghee.

Constraints

Few cooperatives (approximately ten in Surkhet and

two in Pyuthan Districts) are purchasing seeds from
collectors by cash, through utilising savings from their
members.

M
 icro and small enterprises are not able to supply
soap regularly in the market due to lack of proper
planning and purchasing of raw materials. They lack
entrepreneurship and marketing skills.

N
 ot all cooperatives have the capacity to purchase
seeds for cash.

In the future, these cooperatives could upgrade into

value addition activity by processing ghee using
improved expellers.

Th
 e per unit cost of soap manufactured by smallscale entrepreneurs is high due to the small quantity
produced and the high cost of raw materials.

T
 raders have to bear unseen expenses and informal
taxes during the transportation from rural areas to the
processing units.

There are retailers who have long experience in

this business and therefore could be interested in
purchasing seeds from collectors.

P
 roper packaging materials are not available for local
transportation and exports.

Constraints
H
 erbal products using chiuri as a base material are
unique in Nepal. Some companies have initially
invested in R&D for new product designs on their
own and thus the market price is relatively high
compared to the other available products.
Th
 e quality of ghee is not standard as it contains
impurities. For example, fungus exists due to
premature harvesting and high moisture content.
Th
 ere is no regular supply of quality ghee for a variety
of reasons, and there is no guarantee of the quality of
ghee. Soap manufacturing companies need a regular
supply to meet market demand and thus need to store
ghee in large quantities (Bounty Himalaya needs up
to 30 tons and Alternative Herbal needs 10 to 20 tons
per annum). Manufacturers might face difficulties in
storing large quantities of butter, as well as making
cash payment to district traders.
Th
 ere is strong competition in the market. New
companies copy brands with similar products without
proper R&D.

Consumption and Industrialisation

Constraints

Manufacturing of Soap and Other Cosmetic Products

Opportunities
There is scope for marketing herbal products in Nepal
and abroad.
The market for herbal products is huge and even a
small percentage of this market can sustain many
herbal enterprises.
Intensive marketing through Ayurvedic centres/shops,
dermatologists and beauty parlours can increase the
market of herbal soaps.

Opportunities

D
 ue to the lack of lab reports to prove that chiuri
ghee is edible and free from harmful toxic chemicals,
many industries hesitate to use it as a raw material.

L
 ocal community households are consuming chiuri
ghee daily. Most traditional sweets are prepared by
using chiuri ghee.

Th
 ere are very few activities for demand creation.
Even though chiuri has been used in rural
communities for a long time, in urban areas
consumers have lost the knowledge of the benefits and
the habit of using chiuri butter, mainly because of the
high price.

C
 onsumers demand beauty care products with
scientific evidence that the product can solve their
specific problems. There might be an opportunity
for chiuri to enter into the high-price segment of the
cosmetic product market.

D
 ue to the cost factor, monasteries in Nepal do not
use chiuri ghee for lighting lamps as they did in the
past. Currently they are using a cheaper and more
readily available butter.
C
 hiuri ghee is adulterated through being mixed with
other dairy butter.

B
 uyers demand quality certification and other details
of products. Organic certification may be an added
advantage.
A
 few experts say that chiuri ghee can be used as an
alternative to Shea Butter in the cosmetics industry
for skin and hair related products.

Th
 ere are no proper packing materials available for
transportation.

Integration (forward and backward)

Constraints
D
 ue to the irregular supply of ghee and price issues,
many traders are not optimistic about this business.
D
 ue to the seasonal nature of the business (hardly two
to three months per annum) primary actors (collectors
and traders) are not in regular contact with each other.

30

Opportunities

Opportunities
Th
 ere are soap manufacturing companies who already
have business relationships with the district traders for
a regular supply of chiuri ghee.

31

Table 10: Access and power of chiuri value chain actors

Governance
Constraints
C
 ollectors are scattered in specific chiuri pocket areas
and due to this reason, the bargaining power of the
collectors is less. The final price of seeds or ghee is
determined either by the trader or soap factory owner.

Opportunities
Cooperatives, who purchase seeds or ghee from
individual farmers, exist in all programme districts.
This has increased the bargaining power of the
collectors.

P
 rofit margins can be high in the processing and
collection of seeds, but as the quantity produced is
low, processing profits are also low.
D
 uring interactions with the stakeholders, the
majority expressed that marketing actors will play an
important role in the development of this sector.

Market actors

Access status

Mechanism for exercising access

Local collectors

Access to forests; direct access to CFUG

resources

DFO approval of operational plans or collection

permits; CFUG membership; traditional member
of communities; social groups; traditional collection
practices

Traders

Access to seed and technology; relationship

with local village traders for cash on direct
sales

Farmer need verification of his land, indicating the total

area of chiuri cultivation, from the DFO office

Processors

Access to urban traders who can supply

in bulk

Soap
manufacturing
companies

Market contacts beyond Nepal; have

developed secret product formulas that
use chiuri

Quality

5.2. Government Policies

The government has imposed taxes at different levels
for collection and transportation. These include a
system of permission for the collection of chiuri
(among others) products and a permission for the
transportation of the same.
This tax system applies only for national and
community owned forestland. Urban traders usually
prepare a request for permission to transport the
required quantity from certain forestlands ahead of
the harvesting period and obtain their permission
to collect during harvesting time. For cultivation on
private land there is a provision of registration of trees
at the District Forest Office (DFO), but the process
is not easy. Due to this cumbersome government
procedure, there is a need of simplifying processes
and educating farmers. Additional local taxes imposed
by DDC, VDC, check-posts, political parties, etc.
have to be paid at various points. Traders are harassed
during transportation. The Environmental Protection
Rules requires that an IEE be conducted in order to
collect five to 50 tons of NTFP per year. Similarly,
an EIA needs to be conducted to collect forest related
products, except for more than 50 tons of wood. It
takes a huge amount of time to complete the whole
process. At the time of export, there is difficulty in
quarantine due to the absence of harmonised codes
and identification details. To motivate value chain
actors, there should be lobbying for levy taxes and
simplification of the export procedure.

32

5.3. Linkages Among Actors

and Potentials for Market
Improvements
In the three study districts, due to interventions
by MEDEP, INCLUDE and SNV, cooperatives
are slowly building up trust with the collectors.
Collectors can easily sell seeds by physically carrying
them to the cooperative counter. Spot market
transactions exist in urban market centres between
collectors and retail shops as per the prevailing
market rates. Market rates depend on the end market
demand. Urban retail shops also act as collection
centres to manage the desired quantity of seeds and
butter as ordered by buyers in Kathmandu.

Identifying competitive and comparative

advantages
There is an international demand for natural products
and hence the demand for Nepalese herbal products
is increasing. For marketing of herbal products, new
products need to be introduced to satisfy consumer
needs. In Nepal, chiuri ghee has been known for
curing chapped skin and rheumatism, and as a long
lasting and smokeless fuel for lamps, so it should be
marketed by introducing new products.

Research and Development

Research and development (R&D) is an integral part
of any sector development. To date, little R&D has
been done for chiuri. Research should be done for
new product design and appropriate technology, as
well as for marketing products and services.

The competitiveness of chiuri and other NTFPs from

Nepal depends on the quality requirements from
the end users. There is no common understanding
of quality requirements among the different actors
engaged in the chiuri business in Nepal. However,
there are some minimum quality parameters that
buyers from abroad have sought in the past. The
quality parameters below were collected from
interactions with key stakeholders:
a. Free from harmful chemicals, fungus, etc.;
b. Properly dried seeds with low moisture content;
c. Seeds of large size and fresh in colour;
d. Quality consistency;
e. Cleanliness;
f. White in colour, and
g. Free from smoke.

Potential for value addition and product

diversification
Even though the chiuri tree has multiple uses, it is
currently only being used in making ghee, herbal
soap and few other cosmetic products in Nepal.
In the past, a development organisation piloted
producing chiuri juice made from its nectar, but due
to lack of proper technical knowledge and proper
supervision, it did not succeed. Ghee exported from
Nepal is used for making various cosmetic products
such as a variety of soap, detergent, face wash,
cream (moisturising, anti-aging, night), toothpaste,
chocolates, etc. These unique products are marketed
through marketing networks and websites. At the

Has to go through a tender process where the lowest

bidder with the specified quality will qualify

local level chiuri has been used for juice production,

leaf plates, compost, the resin of the chiuri tree is
used as glue to catch bats and houseflies, and the
timber is used for construction and firewood.

5.4. Economics of the Value

Chain
An economic analysis of the value chain is important
for making decisions. In this process, cost details are
calculated for all levels, from collection to marketing.
The overall objective is to assess the competitiveness
of each business unit and to design future strategies
for upgrading. This includes overall value addition
generated by each chain actor, production and
marketing costs and performance of operators (in
terms of production, productivity, value addition and
margins).
Chiuri trees starts fruiting from seven to 10 years
after plantation and continue to yield up to 50 to 60
years on an alternative year basis. The average yield is
estimated to be about 100 to 800kg per hectare. The
average market price of chiuri seeds is about NRs. 30
to 40 per kg.

5.4.1. Resource availability

As per the study findings conducted by MEDEP,
there is a potential resource of 94,651 tons of seeds
and 37,245 tons of ghee available in Nepal (Table
9). The IEE report in 2011 from Surkhet District
shows resource availability of 200 tons of seeds in
the district. The MEDEP study conducted separately
in Dang District shows 2,000 tons of seed resources
available in that district.

33

Table 11: Resource availability of chiuri products in tons

District

Number of fruit
bearing trees

Quantity of
fruit in tons

Quantity of
seeds in tons

Quantity of
butter in tons

Dang

269,990

18,178

4,545

1,788

Quantity of
chiuri honey in
tons
856

Pyuthan

276,026

18,585

4,646

1,828

875

Surkhet

199,764

13,450

3,363

1,323

633

Total of
MWDR
Grand Total

2,013,248

135,552

33,888

13,335

6,382

5,623,130

378,605

94,651

37,245

17,825

Source: MEDEP

Table 12: Basic assumptions made for costing

Indicator
Result
Total number of chiuri trees in the 10.8 million
country, MEDEP
Total number of fruit bearing trees
in the country, MEDEP
Annual production of chiuri butter
per household, MEDEP
% of sales by each farmer, own
finding
Seed production per tree,
NEHHPA, NTFP Manual, 2012
Number of tree per hectare, DFO,
Rolpa, WUPAP, 2009
Oil yielding percentage Efficiency
(traditional Kols), DFO, Rolpa,
WUPAP, 2009 [Daily output = 90
kg, own finding]
Oil yielding percentage (modern
expellers), DFO, Rolpa, WUPAP,
2009 [100 kg in 1 hour,
Consultants finding]
Number of seeds per kg, MEDEP

5.6 million

Production of nectar per tree,

MEDEP
Fruit yield per hectare, DFO,
Rolpa, WUPAP, 2009

13 litre

Source: Compiled from various reports

34

60-500 kg
50 60%
30 -35 kg
37-90
25 30 %

40 45 %

1,035 No./kg

100-800 kg

Table 13: Profit margin for collection of chiuri

seeds
S.
No.
a
b
c

Description

Chiuri seed market rates

Labour rate per day
On average, per day collection
7.5 kg
d
CoP for 1 kg of seeds
Market sales price per kg
Profit margin in NRs.
Profit margin in %

Amount in
NRs.
25
250
187.5
33
25
-8
-25%

Note: If per day collection of chiuri seed is more than 7.5kg then
collectors will be motivated as labour rates is more than NRs.
250 per day. As the chiuri trees are scattered and grow in difficult
terrain, the collection is cumbersome.

Table 14: Profit margin for trader (cooperative or

Individual)
SN Description
Amount
in NRs.
a
Royalty fee - national or
3
community forest per kg
b
Drying - weight loss at 5%
1.5
c
Other losses at 5%
1.5
d

Sack: 50 kg capacity at NRs. 20

per piece
e
Transportation
f
Labour
Total Costs
Total Costs of Production
Sales price per kg
Profit margin in NRs.
Profit margin in %

0.8
1
1
8.8
33.8
40
6.2
18%

Table 15: Profit margin for processing into ghee

(modern expeller, 1 kg)
SN Description
Amount
in NRs.
a
Seeds required for 1 kg ghee is
100
2.5 times at NRs.40/kg.
b
Labour (NRs. 2,000 per month)
5
c
Depreciation of m/c (investment 3
of 500,000)
d
Transportation
3
e
Packaging and labelling
3
f
Promotion
2
Total Costs
116
Sales price in NRs.
160
Profit margin in NRs.
44
Profit margin in %
38%

Table 16: Profit margin for processing into ghee

(traditional expeller, 1 kg):
SN Description
Amount
in NRs.
a
Seeds required for 1 kg butter is 120
3 times
b
Labour
18
c
Maintenance of Kols
2
d
Transportation
e
Packaging and labelling
f
Promotion
Total Costs
Sales price in NRs.
Profit margin in NRs.
Profit margin in %

3
3
2
148
160
12
8%

Table 17: Profit margin for soap manufacturing (1

batch of soap, 100 kg)
SN

Description

Per kg raw materials expenses:

a
Chiuri (22 kg of chiuri ghee is
required at NRs. 160 per kg) (22 kg x
NRs. 160 per kg / 100 kg)
b
Coconut oil (10 kg oil at 150 per
kg )
c
Caustic soda (6 kg at NRs. 100
per kg)
d
Essential oil (1.5 kg at NRs. 3000
per kg)
e
Glycerine (4 kg at NRs. 90 per kg)
f
Castrol oil (8kg at NRs. 450 per
kg)
g
Spirit (22 litre at NRs. 100 per kg)
Total costs of production
Per piece 80 gm soap expenses
Depreciation expenses of machines
Packaging expenses (cartons)
Label
Transportation
Labour expenses
Admin expenses
Marketing and promotion
Sub-total
Grand Total
Per piece 80 gm soap expenses
Sales for 1 kg of soap (NRs.30 for
80 gm soap)
Profit margin
Profit margin in %
Wholesale and retail margin
Sales for 1 kg of soap (NRs.50 for
80 gm soap)
Profit margin
Profit margin in %

Amt in
NRs.
35

20
25
45
4
36
22.
187
15
6
1.67
2
3
2
3
5
23
209
17
375
166
79%
50%
625
250
67%

Note: In the above calculations, only direct costs incurred are

taken into account, and thus for total costs, it is estimated that
additional 20% may be added.

35

Another survey carried out by MEDEP in Dang

District indicates the number of trees at over 200,000
from which 2,211 tons of chiuri pulp and 455 tons
of ghee can be produced. (Chiuri Resource Analysis
Report, Enterprise Development Consultancy
Centre, Dang, 2007). In comparison, Kakada VDC
of Makwanpur is exporting 300 tons of chiuri honey
from Lothar Bazaar of Piple, Chitwan through cooperatives (MEDEP).

Costs, Sales, and Margins

Cost estimates for targeted sales and their margins
are tabulated below for various levels of value chain
actors. Profit margins are calculated based on total
expenditure made for raw materials, depreciation of
equipment, packaging, promotion, etc, whereas other
opportunity costs and non-cash transactions are not
taken into consideration.
Seed collection is a cumbersome process and
collectors look at this task as a wage earning process.
They compare this work with the daily wage earned
by working in the construction sector, which is NRs.
270 per day. As per interactions with collectors in
three districts, the average daily collection is not more
than 7.5 kg, giving them NRs. 188 per day.

Figure 13: Margins calculated for various levels of actors

Wealth mapping
The table below describes the profit margins of the
value chain actors at all levels, extracted from the cost
benefit analysis. It can be found that the farmers/
harvesters benefit least when their costs are compared
with the prevailing labour rate (-25%), soap
manufacturers (79%), wholesaler (64%), processors
(8to 38%) and traders (18%).
There is a low transaction volume in terms of few
kilograms. Farmers/harvesters are scattered and
deal in very low quantity. Hence, traders take the
opportunity to work as collectors by collecting
chiuri from the nearby farmers/harvesters. Similarly,
processors and soap manufacturers exist even with
low margin due to its volume of business and value
addition activities. As per the USAID Performance
Management Guideline for estimating gross margins,
only cash costs that represent at least 5% of total cash
costs are taken into account. Capital investments
and depreciation do not need to be included in cash
costs. Unpaid, family labour also does not have to be
included in costs.

5.4.2. Cost reduction, increasing revenue and barriers of entry and exit
Functions

Cost Reducing and Revenue Increasing Strategies

Collection

Commercial cultivation will lead to better income and easy harvesting which will in
turn improve the supply chain of chiuri.
Similarly, harvesting tools and equipment will reduce risks in collection and thus
motivate collectors. In addition, insurance schemes for collectors will give support.

Table 18: Industry profits/margins are determinants of price among various actors in the chain
Actor
Purchase cost Value
Cost of
Selling Profit
only raw
production price
(NRs.)
added
materials
cost
(NRs.)
(NRs.)
(NRs.)
(NRs.)

Processing

The overall processing efficiency should be improved and the response time made
quicker, as well as a reduction in production cost. Cost reduction in the processing
process is possible through technical innovation to improve the traditional Kol and
through introducing efficient machines. The introduction of solar dryers will improve
the drying technology.

Soap manufacturing

Due to low demand, the cost of soap manufacturing is high. There are wastages, which
can be reduced when there is higher efficiency through mass production.

Profit
margin
in %

Collector-farmer ( for 1 kg of seeds)

33

25

-8

-25%

Trader - individual or cooperative (for 1

kg of seeds)

25

8.8

33.8

40

6.2

18%

Barriers of entry and exit

Processor - ghee (modern) for 1 kg of

ghee

100

16

116

160

44

38%

Th
 e major barrier for entry in this business is lack of proper knowledge about the sector and the availability of research
materials.

Processor - ghee (traditional) for 1 kg of

ghee

120

28

148

160

12

8%

Soap manufacturer for 1 kg of soap

187

22

209

375

166

79%

Wholesale/retail for 1 kg of soap

375

380

625

245

64%

Source: Field information

There are a limited number of traders who dominate the whole business.
Due to lack of proper market demand, many NTFP traders are not engaged with chiuri.
T
 raditional knowledge possessed by communities about the inherent qualities of chiuri should be protected by means
of Intellectual Property Rights (IPR). There is a need for trademarks or collective mark to distinguish chiuri produced
in Nepal. It is said that herbs produced in Nepal are organic by default and are of high quality.

Source: Field Information

36

37

5.5. SWOT Analysis

Strengths, Weaknesses, Opportunities and Threats (SWOT) of the chiuri value chain are summarised based on
the data gathered from interviews with different levels of stakeholders.

Strengths

Weaknesses

1. C
 hiuri seeds are abundantly available (47,000
tons, MEDEP) in the forests of the mid mountain region.

1. The quality of extracted ghee is not of good

quality.

3. Th
 ere are a few well-established herbal soap
companies in Nepal and abroad.

Internal factors

4. C
 hiuri ghee is well known by the rural
communities and used for daily consumption,
curing skin problems and exchanging as gifts.
5. Chiuri has many applications.
6. I t is labour intensive and thus has the potential
for local employment generation.
7. L
 ocal communities process chiuri into ghee
for daily consumption, demonstrating the
importance of chiuri in their culture.
8. C
 ooperatives, groups, CFUGs, etc exist in the
district and their structure could be used for the
regular supply chain.
9. Th
 e tree is self-sustaining: little or no manure
necessary.

3. Chiuri collectors are not motivated to collect

seeds due to difficulty in climbing the high trees
and only few traders are present at district level.
4. Local people are not aware of the importance of
chiuri in terms of its economic benefits.
5. Marketing and promotion of chiuri products are
limited.
6. Appropriate technology for processing of chiuri
seeds is not available.
7. Harvesting in the monsoon is difficult and
dangerous.
8. W
 hile chiuri is mainly used for cooking in the
rural areas, when it reaches urban processing
areas there are a lot of potential uses. However,
currently, it is mainly used in soaps.

Threats

1. I ncreasing demand of herbal products in the

global markets due to consumers interest in
natural products.

1. Th
 ere is a lack of quality and purity testing
facilities in the country.

2. N
 epalese companies have already started
marketing herbal products such as soap, cream,
etc. in the domestic and export markets.
3. C
 ommunity forest groups can generate cash
income through income generation activities
such as bulking of chiuri and collective
marketing.

External factors

2. T
 raditional processing technology for extracting
butter from chiuri seeds has been used for many
years.

2. Research and Development is completely missing

in this sector. Many are not aware of the product
characteristics, chemical composition and its
uses. There are no technical research documents
publicly available.

Opportunities

4. Th
 ere is potential for chiuri based enterprise due
to availability of resources.
5. O
 rganic and other international certification will
promote chiuri in the international market.
6. I t is said that chiuri has similar characteristics
to Shea butter, which is available in Africa. Shea
butter is mainly used in the cosmetics industry
for skin and hair related products and has high
market value.

2. O
 verharvesting will deplete resources in the
future.
3. Th
 ere are substitute vegetable ghee products
such as palm oil, which are cheaper. Most of the
vegetable oils are imported.
4. Th
 ere are export requirements for quality
assurance for which there is a need of wellequipped laboratory infrastructure, which is not
available in the country.
5. M
 any herbal soap industries are reluctant to use
chiuri butter as one of the base oils, due to lack
of confidence in quality and negative perception
that it is toxic or not edible.
6. C
 ost of herbal soap made from other ingredient
is cheaper compared to chiuri-based soaps.
7. N
 epal lacks proper marketing and new product
development skills.
8. C
 hiuri products have a limited local market so
there is a low possibility for business expansion.
9. Th
 ere are very few incentives from the
government to entrepreneurs who are willed to
invest in this sector.
10. C
 hiuri ghee is not a common product in the
average Nepal household.

10. Chiuri seeds can be stored for three years.

38

39

BUTTERNUT | VALUE CHAIN ANALYSIS

6. Intervention Strategies
The chiuri tree has multiple uses from its
fruits, seeds, leaves, stem, etc. It needs to be
integrated into other value chains as per its
finished products. For example, its fruits could
be used for making juice, thus falling under
the fruit juice value chain. Similarly, seeds
are used for making butter in bulk for usage
as raw material for making soap and other
cosmetics. The ghee is edible and can be used
in household consumption. Its by-product
(oil-cake) is used for organic fertilizer. Chiuri
honey is another product. Utilizing fodder for
goat rearing is another area, which falls under
the goat value chain. There is much technical
and marketing research work that needs to be
carried out in various areas.
The following interventions, as a strategy to
upgrade the chiuri value chain, are proposed to
address five major areas: collection, processing,
marketing, policy, and other cross cutting
issues. The interventions proposed are based
on the feedback received from the value chain

actors and other key stakeholders.

Intervention strategy 1: research

and development
a. R
 &D in the chiuri sector seems very
critical to break through other levels
of interventions. There are many
research areas, which are critical for its
commercialisation and utilisation in
various industrial uses. Human resource
development and setting up optimum
laboratory infrastructure is crucial for
long-term development of the sector. In the
following, a few research areas are proposed
for the future:
I nternational accreditation;
Laboratory testing of seeds and butter
(chemical compositions, presence of toxic
chemicals, detoxification for removal of
saponin from chiuri ghee, allergy tests,
etc.), and
41

 U
 se of chiuri ghee in personal care products
(soaps, shampoo, creams, etc).
b. Small-scale piloting of appropriate technology,
especially for chiuri processing. Appropriate
technology suitable for processing may be readily
available in neighbouring countries (India and
China), but needs to be customised as per
traditional processing. A Build Operate and
Transfer (BOT) system will be appropriate for
guaranteed results. In this approach a private sector
entity will design and build machines and will
operate and maintain facilities for a certain period.
The facility will then be transferred to the owner of
the company at the end of the agreement.
c. T
 esting low cost drying technology and other
associated infrastructures. Upon successful
results, it should be marketed through private
manufacturers, thus making it available to
entrepreneurs. Research is needed to establish its
potential uses in different fields.
d. Action research in collaboration with national and
international cosmetic and herbal manufacturing
companies will result in new product development,
other than herbal soaps, and gradually will lead to
its commercialisation. Cosmetic companies require
new products for marketing purposes. Lokta
paper commercialisation in Nepal has a similar
experience working with international companies.
There are other chiuri research areas which could
be potential for enterprises, such as nectar and pulp
for honey production, leaf plates from leaves, etc.
e. R
 esearch findings and dissemination for marketing
of products and services. For commercialisation
of chiuri based enterprises, research findings and
technological innovations should be disseminated
to private business enterprises. In some areas, where
traditional kols are not available, improved kols
can be installed through a partnership approach.
Existing cooperatives should be engaged in the
collection of seeds and central processing for
further linkages with the buyers.
f. For laboratory services, the project should collaborate
with the Department of Plant Resources for
provision of available lab testing facilities. The
project should support capacities building of human
resources and networking with international labs.

Intervention strategy 2: policy

a. B
 y providing incentive schemes for individuals and
introducing commercial plantation practices the
42

result will be the sustainable production of chiuri

seeds. Guidelines for incentives should be prepared
and implemented. There should be a provision of
soft loans as a credit financing mechanism. There
is need to support DoF in the implementation of
incentive schemes by preparing guidelines and in
resource generation. Registration of chiuri trees on
private land can solve the royalty issue, for if the
trees are grown on private land, chiuri can be sold
without paying additional royalties.
b. Th
 ere should be an investment policy in the
NTFP sector by the government. There has been
an improvement in the agriculture sector due
to the provision of an investment policy. The
Nepal Rastra Bank, the central bank of Nepal,
has made provision in this policy for all financial
institutions, especially the class A, B and C, to
invest at least 20% of their loan portfolio in the
agriculture sector.
c. T
 o motivate collectors and traders, multiple
taxation should be completely removed by
reviewing the tax policy, relevant acts and local
governance acts, and lobbying the government for
a one-door tax system.
d. The government should be lobbied to provide
subsidy for organic certification, lab facilities,
accreditation, for the promotion of this sector.
e. The importing countries, especially the EU,
demand Material Safety Data Sheets (MSDC)
and Pest Risk and Assessment Analysis (PRAA).
Material Safety Data Sheets are commonly
reviewed upon import into the EU and products
with non-compliant or non-updated MSDS will
not be allowed to pass customs. In this regard,
support for preparing MSDCs and PRAAs is
needed.
f. F
 or capacity building and institutional
strengthening there should be periodic dialogue
between the public and private institutions, as
well as other local level stakeholders, such as CCI,
FECOFUN, etc.

Intervention strategy 3: investment in

infrastructure
a. Th
 ere is a need to upgrade and expand existing
kols to increase the production of ghee and create
more demand in the market.
b. C
 hiuri processing is in urgent need of being
improved. However, there are not any machines

available that can process chiuri seeds to the level

acceptable to soap manufacturers in Nepal. It
is thus necessary to invest in designing robust
technology that can process chiuri seeds into a
quality ghee, which is accepted by buyers.
c. I t is estimated that around 7,000 collectors are
necessary to generate 1,200 tons of ghee from the
three districts. (Annex 8.1, Estimation of chiuri
collectors and income) This target can only be
met if the existing number of kols are operated at
optimum efficiency. Many kols need maintenance
and upgrading with extra facilities such as sheds
and equipment.
d. I n addition, there is a need to assure collectors
that chiuri ghee is easily saleable in the market. To
achieve this, there should be collection and storage
facilities in major strategic locations. There should
be a formal communication with the sellers and
buyers, and a buy back guarantee put into place.
e. I nvestment is needed in new improved
technologies and infrastructure such as cleaning,
drying (plastic house/tunnel, multipurpose drying
house), storing, packaging, etc. Good Agricultural
and Collection Practices (GACP) should be
implemented by providing sustainable harvesting
tools and techniques such as safety belts, knives,
bags, climbing gear, long handle sickles, etc.

Intervention strategy 4: integration with

the chiuri honey sub-sector and other
chiuri based enterprises
a. H
 oney is another potential chiuri subsector.
Chiuri honey is a specialised wild honey, available
only in October and November. There are areas
within the three districts which are suitable for
the production of organic chiuri honey, which
fetches the highest price among other honeys and
is mainly used as a medicine. Beehives should be
distributed to target beneficiaries for this purpose.
b. N
 ectar and pulp based enterprises: Edible flower
nectar can be collected and used to produce sugar
candy, fruit juice, etc. The pulp can be used in
confectionery and in juice manufacturing. This
will provide target beneficiaries with additional
income.
c. Disposable plates can be made from chiuri leaves.

Intervention strategy 5: marketing and

promotion
a. Th
 ere is need for branding Nepal-made chiuri
ghee for specific target markets (local, regional,
national and international). To increase
consumption, there is a need to explore new
market opportunities within Nepal and abroad.
b. O
 nce new products are developed, they should be
marketed to target consumers through specialised
marketing agents who are willing to invest and
share all risks associated with the product. There
is a need to link chiuri ghee processors with
soap and other cosmetic manufacturers that will
increase the demand of chiuri all over Nepal.
Niche markets for specialised, unique products
should be explored, e.g. fair trade shops offer good
opportunities for such integration. They may
also be able to help micro-enterprises upgrade
product quality to meet the requirement of the
sophisticated export markets.
c. A
 wareness and promotion for production of
chiuri ghee and linkages with industrial buyers
is essential. The existing cooperatives, individual
retail shop owners and other groups could play a
vital role in aggregating chiuri ghee by purchasing
from individuals. These district institutions
need to be linked with the industrial buyers,
especially soap manufacturers and other cosmetics
companies.
d. A
 sub-contracting mechanism with rural small
and medium enterprises (SMEs) will be mutually
beneficial. An example of this is Ms. Durga K.C.,
a successful local entrepreneur in Pyuthan, who
has a sub-contracting agreement with Mahaguthi,
and other fair trade shops for export to Japan.
e. D
 istrict specific in-depth market research on
various areas such as traditional practices, chiuri
usage, market channel, market promotion,
understanding consumers need, etc., is necessary
to increase the market share of chiuri as a raw
material.
f. A
 t the local level there is a need for marketing
support to small-scale enterprises. There is also
a need of other support services for export
companies. For example, export companies require
proper technology for packaging, branding,
labelling, etc.
g. F
 or export, quality certification is essential and
depends on the buyers requirements. Organic

43

certification and other international accreditation

should be facilitated by working with private
companies. There are a few international certifying
agencies in Nepal such as NASA and OCEAN.
There is also a provision for group certification.

Intervention strategy 6: access to

credit/finance
a. Access

to affordable credit is another important
aspect at all levels of the value chain. Actors
working in rural areas in collection and processing
especially need working capital for purchasing
raw materials. Local cooperatives involved in
saving and credit can support to some extent,
but the better option would be the final buyers
as a direct value chain finance. There could be an
arrangement of advance payment (50%) to the
collector and the remaining 50% at the time of
actual purchase by the buyers.
b. Financial

services are available through a network
of micro-finance schemes provided by commercial
and development banks, cooperatives, as well as
community-based lenders. Financial institutions
offer credit services under the priority sector
lending provision of the Nepal Rastra Bank to
assist micro and small enterprises (MSEs). In
addition, a number of rural development banks
and micro finance organisations have emerged.
Several donor agencies are involved in providing
support services through various programmes and
projects. Networking with various financial service
providers should be facilitated to make micro
finance schemes available to the target beneficiaries.
c. Banks

like the global IME are offering loans from
NRs 50,000 to 500,000 and have a scheme to offer
these loans to 200 low income people annually,
with land or factory as collateral. The time-period
for repayment is five years but usually the bank
takes into account the borrowers situation with
regards to repayment time. The banks also require
that insurance is taken on the loan and banks
themselves will tie up with insurance companies to
ensure borrowers have the necessary insurance.

Intervention Strategy 7: natural and

human resource management
a. Th
 e major task is to facilitate the process towards
commercialisation of various products and
services, which have market demand, the available
44

technology, and where financial mechanisms

exist. It needs to be shown that there is an assured
income from this business and this will attract
many people not only for investment, but also
as wage employees. In Nepal, implementation
of projects has always been a challenging
phenomenon due to rigid protocols and weak
monitoring systems, irrespective of the good plans.
New ideas should be piloted first, and by a gradual
learning process, rolled out in other areas.
b. F
 or a regular supply of chiuri seeds, it is necessary
to conserve forests as well as to plant chiuri trees
in new areas. The District Forest Office (DFO)
and local NGOs could play a role in this aspect.
There is a need for support in educating value
chain actors on government rules and regulation
and other NTFP guidelines.
c. C
 oordination and networking with chiuri value
chain stakeholders for regular sharing of updates
and necessary support. The DFO and the District
Development Committee (DDC) could play a
major directive role in leading the stakeholders
meetings.
d. Capacity building of NGOs and cooperatives in
social mobilisation, entrepreneurship, business
literacy, etc is required for promotion of this
sector and the mobilisation of local Community
Forest Groups for its conservation. Similarly,
cooperatives play an important role to strengthen
the regular supply channel for chiuri seeds and
ghee, and investment in local infrastructure
such as storage facilities, drying beds, upgrading
existing kols, etc. Cooperatives can also provide
access to finance through credit facilities and
advance payment.

Risks and Assumptions

The following are the risks and assumptions that could, in the future, affect the proposed interventions as
stated above:
a. C
 hiuri fruit production is usually high only every alternative year. There are other limiting climatic
factors such as excessive rainfall. Therefore, if chiuri seeds are not available in sufficient quantity as
projected, the whole system will not work. Sufficient chiuri should be planted in the study areas to
address this problem.
b. M
 ost households still do not sell ghee in the market, but store it (on average 50kg) for their yearly
household consumption. This shows that chiuri ghee is consumed by community people, rather than
being sold in the market.
c. T
 o date, there are no restrictive government policies in place. However, once the production starts
increasing there is a chance that taxes and other policies will be introduced.
d. C
 hiuri based products are new to the market, and more time may be needed than expected to educate
consumers.

Drying infrastructure for chiuri seeds available at Surkhet, Babiya Chaur

e. Sensitisation and awareness on the importance of

the chiuri tree to the beneficiaries should be done
in collaboration with DFO, FECOFUN and other
local NGOs for conservation and sustainability
of the chiuri sector. Skills and knowledge on
sustainable harvesting of chiuri should be
disseminated for conservation.
f. T
 raining on entrepreneurship development and
marketing seems essential to enable producers and
processors to run their enterprise in a professional
way. Basic literacy on entrepreneurship skills is
essential to orient them on business principles,
gaining economies of scale, costing, marketing,
accounting/finance, etc.

Local transportation of Okhati brand of herbal soap, Dang

Various brands of herbal soaps available in the Nepal market

45

BUTTERNUT | VALUE CHAIN ANALYSIS

7. Conclusion and
Recommendations
Based on the proposed interventions,
conclusions and recommendations are
summarised below:
The chiuri subsector in Nepal is at a primitive
stage. Actual commercial demand for chiuri
products such as butter, oil-cakes, fruit, leaves,
etc, has been considered, but not yet explored
scientifically. A few donor programmes have
made an effort to create linkages with traders
in the past, but did not identify the demand
of consumers. In general, there is a lack of
awareness among the producers/processors of
the potential of chiuri products for increasing
their income.
The end market is the usage of ghee as a raw
material in various types of soaps and other
cosmetics products such as cream and face

wash. It is partially exported to Europe, the

USA and Asian countries by national-level
companies. In the rural areas, ghee is used for
cooking and for applying to chapped skin. In
the past, innovations in the butter producing
processing technology, by introducing the
Sundara expeller, were not satisfactory. The
ghee was not of good quality and mostly
rejected by soap manufacturers and foreign
buyers. Expeller machines installed in various
parts of Nepal are currently not in operation or
are used for other purposes. The figures show
that selling seeds gives a minimum return to
chiuri collectors as the existing oil processing
techniques are time and labour intensive, and
the expellers are not effective enough to get
quality butter. Therefore, a robust technology

47

is required to improve the processing techniques for

ghee and other finished products. Improvements in
the techniques and technology of fruit collection,
drying, storage, pounding, steaming and expelling
is needed in order to reduce drudgery and make the
chiuri processing economically worthwhile for people
who are already disadvantaged. In the long run, to
make this business commercially viable, customised
robust technology with a high efficiency needs to
be developed. Currently this technology does not
exist. There are already many companies using chiuri
ghee as a raw material and thus there is a possibility
of new processing companies willing to invest in
improved high efficient technology. Small-scale pilot
projects should be implemented in order to prove the
suitability of the technology for chiuri processing.
To increase the demand of chiuri products in both
the domestic and the international market, and for
its industrial use, there are many research areas that
need further activities. Many industries that are
using similar raw materials to produce soap, edible
oil, cosmetics, etc can be target markets. As traders
are just middlemen to facilitate the business process,
linkages with traders for purchasing seeds and chiuri
products should not be judged solely as a success.
Apart from the above demand creating activities,
supply strengthening should be implemented for
regular supply of chiuri, especially for ghee in
the market. There are 7,100 collectors, especially
disadvantaged people, from three districts. To
improve their livelihood condition and income
from chiuri, it is necessary to engage them not only
in the collection, but to support them in improved
traditional processing at the local level and show
them that the product is easily saleable in the market.
Past interventions show that by only selling chiuri
seeds, the income level of collectors increased only by
about. NRs. 1,000-2,000 yearly. This figure could be
increased by more than NRs 10,000 if more seeds are
collected.
Chiuri ghee is a unique Nepalese product, used as
a raw material at present, mostly in soap making.
If proper supply channels were established and
efficiency in production could be improved, its
overall costing could be reduced to an optimum level
that will substitute other vegetable oils and increase
its utilisation in various cosmetic products and other
high value products. However, at present the country

48

has not been able to fully tap the market despite

the increasing recognition of herbal products in the
international market.
A few specific recommendations for implementation
are as follow:
C
 hiuri honey has a pleasant taste, unique flavour
and fine granules. Thus, chiuri honey stands as a
niche product for domestic and export markets.
D
 istrict specific resource inventory of chiuri for
estimation of the actual baseline status of trees,
seeds, ghee, etc should be carried out.
E
 stablishment of collection and storage centres
at cooperatives and other existing institutions
in major centres and buyback guarantee would
improve the supply chain.
I n-depth research of traditional practices,
inventory, uses of chiuri and needs (nursery, market
channel, promotion, etc) should be carried out.
S upport in educating on government rules and
regulation and other NTFP guidelines to partners
and target beneficiaries.
I nvest in improved technology and infrastructure
such as cleaning, drying, storing, packaging,
harvesting tools and equipment, etc.
F
 acilitate in business linkages of ghee/seed
processors with large scale manufacturers.
S upport small district level enterprises with
marketing and entrepreneurial skills.
S upport national level traders in packaging and
branding or exporting to other countries.
P
 ilot R&D initiatives should be started with
cosmetic and other herbal companies for new
product development.
C
 ollaboration and networking with other
programme/projects working for the promotion of
the chiuri sector can be a win-win situation.
To conclude, there is potential to increase the income
of target beneficiaries by engaging them not only
in the collection and sales of raw seeds, but in value
addition activities through producing ghee and other
new products and by working with the private sector
at large.

49

8. Annexes

Option 2 - Intervention: increase number of collectors and kols - continue

awareness and linkages with additional buyers

8.1. Estimation of Required Demand and Supply of Chiuri

Seeds/ghee

Table 20: Estimation of chiuri collectors and their income for Option 2

To estimate the total number of collectors and income, two options are proposed in Table 17 and
18. Table 17 provides the demand of chiuri ghee by target markets.

Option 1 - Intervention: awareness and promotion for production of

chiuri ghee and linkages with industrial buyers
Table 19: Estimation of chiuri collectors and their income for Option 1
Details

Surkhet

Details

Surkhet

Dang

Pyuthan

Total

Total no. of VDCs in each district excluding

municipalities

50

39

49

138

Total no. of potential VDCs where chiuri is available

28

15

14

57

Average number of collectors in each pocket area

200

200

200

600

Estimated number of Collector (no. of pocket VDCs x

average no. of collectors in each pocket VDC)

5,600

3,000

2,800

11,400

Total no. of kols in each potential pocket area

25

20

20

65

Average no. of HH sharing each kol

10

10

Average quantity (in litres) of ghee processed by each kol

in a day

120

120

120

360

Average number of days kol is operated in each season

20

20

20

60

Dang

Pyuthan

Total

Total no. of VDCs in each district excluding municipalities 50

39

49

138

Total no. of potential VDCs where chiuri is available

28

15

14

57

Average number of collectors in each pocket area (survey

findings)

150

100

100

350

Total quantity of seeds collection in tons

5,040

2,160

2,016

9,216

Estimated number of collectors (no. of pocket VDCs x

average no. of collectors in each pocket VDC)

4,200

1,500

1,400

7,100

Total quantity of ghee processed in tons

1,680

720

672

3,072

Total no. of kols in each potential pocket area

20

20

20

60

840

360

336

1,536

Average no. of HH sharing each kol

Only 50% (in tons) of the total ghee is sold in the

market, and the rest is used by themselves
Average amount in NRs. at 160 per kg

134,400,000

57,600,000

53,760,000

245,760,000

Average quantity (in litres) of ghee processed by each kol

in a day

90

90

90

270

Average yearly income in NRs. by individual collector

24,000

19,200

19,200

20,800

Average number of days kol is operated in each season

15

10

10

35

Total quantity of seeds collection in tons

2,268

810

756

3,834

Total quantity of ghee processed in tons

756

270

252

1,278

Description of target market

Description

Only 50% is sold in the market, and the rest is used by

themselves

378

135

126

639

Quantity in Amount in
tons
NRs.

Soap companies

30 companies x 3 tons ghee x 12 months

1,080

194,400,000

Average amount in NRs. at 130 per kg

49,140,000

17,550,000

16,380,000

83,070,000

Monasteries

100 monasteries x 100 kg x 12 months

120

21,600,000

Average yearly income in NRs. by individual collectors

11,700

11,700

11,700

11,700

Export to cosmetic company buyers

10 companies x 10 tons

100

50,000,000

Export - chiuri herbal soap

10 companies x 2 ton (20,000 pieces of

100 gm soap) x 12 months

240

240,000,000

Edible oil

10 companies x 1 ton x 12 months

120

21,600,000

Cosmetic

5 companies x 2 tons x 12 months

120

21,600,000

1,660

549,200,000

Demand for chiuri in the market can be explored in major areas as shown in Table 19.
Table 21: Demand of chiuri products by various target markets

Total

51

Table 22: Quantity of seeds purchased by AHP from eight cooperatives located in Surkhet, 2010
Cooperative name
VDC name
Quantity in kg
Jurimalika Multiple Cooperative
Share-8
13,200
Chandrasurya Cooperative
Lekhpharsa-9
4,300
Amarjoyti Cooperative
Gumi-5
3,785
Ghumkola Cooperative
Bheri Cooperative
Sotkhola Cooperative
Janajagriti Cooperative
Jandeep Cooperative
Total

Ghumkhare-9
Babiyachaur-4
Kunathari- 4
Neta- 5
Pamka -9

4,055
1,245
2,185
2,062
456
31,288

The equipment required to improve chiuri butter processing is listed below. The tentative cost of the equipment
is NRs 200,000.
SN.
1
2
3

Item No.
Weighing balance (500 kg capacity) 1
Weighing balance (10 kg capacity) 1
Jute sacks 100

Price in NRs
10,000
5,000
5,000

4
5
6
Total

Oil extraction machinery with 2 hp motor 1

Automatic packaging plant for plastic pouch 1
Miscellaneous

30,000
100,000
50,000
200,000

8.2. List of Nepalese Herbal Soap Brands Available in the

Market
SN.

Brand Name

Company Name

Specification

Newa- Amala

K-Green Herbal Product

Suryamukhi Beauty Soap

Suryamukhi Herbal
Products

75 gm, Amala soap along with

nutrition herbal ingredients
50 gm, chiuri is not used

Ashmi Chiuree Neem

Mero Herbal Soap

5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

52

Available in 50 and 100 gm

Alternative Herbal Product

Chiuri Neem Soap

Alternative Herbal Product
Unique Plus Chiuree Neem Unique Herbal Udhyog
Nimomix
High Himalayan Multi
Products
Mayur
Mayur Herbal Industries
Surya Chiuri Neem
Ohm Surya Jadibuthi
Udyog
OREVA Elice
Lanark Laboratories
Denzy
Lanark Laboratories
Qutar
Lanark Laboratories
Pearl White
Zee Laboratories
Acnewin
Lanark Laboratories
Acne Bar
BCL laboratories Rampur
Majri Dhoakuan HP India
Malagedi Herbal Soap
Shikhar Sawarikot Chiuri
Processing
Progressive Face Guard
Progressive Herbal
Industries
Bluebell Ayurvedic Neem
Bluebell Herbal Product
Soap
Amol Ayurvedic Neem
Anmol Jadibuti Udhyog
Tulsi Soap
Aloe-Neem Ayurvedic Soap
Rose Face Soap
Mayur Herbal Industries
Vedic-G Herbal Soap
Tulsi
Green Apple Ayurvedic
Face soap
Okhati Face Wash
Jai Kali Jadibuti Udhyog
Okhati Body
Jai Kali Jadibuti Udhyog
Bounty Himalaya
Prisa
K Green Herbal Product
Fresh Mint
Mayur Herbal Industries

Available in 100 gm with major

ingredient being chiuri butter
with avocado, Aloe vera, neem,
coconut, and essential oils

MRP in
NRs.
20
60
50 and
100
100

Available in 100 gm

100

75 gm
100g

25
45
IRs. 66

100gm

40

80 gm

50

70 gm

40

60 gm

50

100 gm
50 gm

50
50

50 gm

t50

53

8.3. Success Stories

Success stories complied from past programmes:

Dilsari Becomes Breadwinner Thanks to Chiuri

In Surkhet District, poor women from the Dalit caste and ethnic minorities are marginalised by poor
income, gender and caste discrimination. A pilot project by Beautiful Nepal Association, in collaboration
with SNV and supported by IFAD, facilitated the formation and mobilisation of new and existing
producers groups. In total, 506 women and 534 men were organised into groups and cooperatives to
participate in the chiuri value chain. Previously womens involvement was minimal.
Forty-two year old Dilsari Pun lives with her husband and two sons. She became a member of one such
group and started collecting chiuri seeds after learning about the chiuri business. Initially, Dilsari found it
hard to believe she could make a living from the free available chiuri seeds. Although she had used chiuri
domestically she hadnt been aware of the commercial potential. As she explained to SNV, Before being
able to earn NRs. 5,000 a year, just by myself, was more than I could have imagined, but chiuri made it
possible, in fact it was possible in just two months! Previously these unnoticed chiuri bijula (seeds) had,
been wasted; they just rotted in the forest.
Her success encouraged her to spend more time on the project and collecting chiuri became a routine
during the season. It took no particular time or effort as she did it while doing her other work in the
forest. The extra income earned from collected chiuri seeds went on household expenditures as well as her
childrens education needs. Previously she had struggled with this. She has now become self-reliant and her
role has shifted to become the breadwinner in her family.
Source: HVAP, SNV Nepal

Mainstreaming Gender and Social Inclusion in Chiuri Value

Chain in Nepal
Experiences shared by Padam Lal Bhandari, Sushila Thapa Magar and Manju Thapa Tuladhar
At the macro level - in order to improve policy facilitation and create an enabling environment, SNV
collaborated with key government agencies such as the District Agriculture Development Office, District
Forest Office, and the Division Cooperative Office. At the micro level - SNV procured the services of an
NGO, Beautiful Nepal Association (BNA), for capacity-building and empowerment of the producers
groups and cooperatives. In addition, Alternative Herbal Products Private Limited functioned as an
agribusiness promoter and embedded service provider with the producers. At the meso level - SNV,
DFO (the regional forest directorate) and BNA-board members facilitated supply chain strengthening
and a buy-back agreement process. SNV also collaborated with World Visions Education for Income
Generation, Micro Enterprise Development Programme and the Italian Foundation, linking them with
local institutions and government agencies to ensure inclusion and a sustainable impact.
Source: HVAP, SNV Nepal

Chiuri A Wish Fulfilling Tree!

September 2010: About 200 entrepreneurs have received training in making herbal soap out of chiuri
through the UNDP Micro Enterprise Development Programme (MEDEP). Statistics show that there
are more than 10 million Chiuri trees in 50 districts of Nepal. As a result of the training, in 2009, the
entrepreneurs produced 84,000 pieces of chiuri herbal soap (80 gm) with a market value of approximately
NRs 1.8 million.
According to a recent survey conducted by MEDEP, there are 5.6 million chiuri trees at fruit bearing stage
with the potential of collecting nearly 90,000 metric tons of seeds from which approximately 35,000
metric ton of butter can be extracted. Chiuri butter substitutes the animal fat ingredient in the soap
production.
Herbal soap production is a profitable business with a profit margin of NRs 6-9 per 80gm soap cake. The
chiuri soap produced by the micro-entrepreneurs has increasing domestic and international demand. In
addition, import of raw materials is decreasing, saving substantial cash flow out of the country as well as
generating jobs for more people, especially for marginalised poor women. Today, almost 260 rural poor
people are able to earn cash income as collectors of chiuri seeds from community forests on a seasonal
employment scheme.
Pyuthan District is a successful example of a herbal soap enterprise, which has a contract with Mahaguthi,
a reputed fair trade organisation in Nepal. Mahaguthi procures the chiuri herbal soap from Pyuthan,
repackages the product and exports it as far as Japan.
MEDEP has been assisting the herbal soap producers by providing them with skills development training,
improved packaging, promoting market linkages and branding through Saugat Micro-Promotion
Private Limited. A sales outlet in Kathmandu popularly known as Sauga tGriha also sells the products
manufactured by micro-entrepreneurs from all over the country.
MEDEP has been contributing to the achievement of Millennium Development Goals by reducing poverty
and hunger (MDG #1), and by empowering women (MDG #3). The enterprises have resulted in increased
number of women entrepreneurs, improved school attendance of children and improved health of women
and children as the income of the women mainly go on food, clothing and education for their children and
to pay for health care (MDGs 2,4 and 5). It has also promoted environmental sustainability (MDG # 7) by
working with forest user groups to promote environmentally-friendly enterprises.
Durga KC of Maranthana Village in Pyuthan District is making almost NRs. 50,000 per month. After the
soap making training from MEDEP, she went on to expand her business along with her husband who was
not doing well as a driver. Her familys life has completely changed.
The use of Chiuri is multipurpose. It is a delicious fruit to eat. Local communities use Chiuri for ghee
(butter/oil) for daily cooking and lighting lamps. Chiuri leaves are used as fodder for domestic animals.
The timber is hard and durable and is used for furniture and the extracted seeds can be used as organic
fertilizer. The nectar from the chiuri flower is a good source for organic honey production. As a result,
many entrepreneurs are also running beekeeping enterprises. Chiuri flowers have medicinal value as the oil
extracted from its seed is also used to cure different kind of skin diseases.
This multipurpose tree has become a boon- a wish fulfilling tree for the rural people in Nepal.
Source: UNDP/MEDEP

54

55

8.4. List of People Interviewed

Banke
S. No. Name, Position

Organisation

Rajesh Jain

Trader

Organisation

Ram Prasad Bhusal

Sangita Store, Wholesale/Retail

Rabindra Nath Shukla

Satya Herbal Products, Trader

Kathmandu
S. No. Name, Position
1

Puspa Ghimre

ANSAB

Kabir Ratna Sthapit, Programme Officer

ANSAB

Madhukar Thapa Chhetri

JABAN, Nepalgunj

Gopi Poudyal

NORMS

Shanta Gyawali

JABAN, Nepalgunj

Ellen Kallinowsky, Programme Manager

GIZ, INCLUDE

Tanka Prasad Sharma, Gen Secretary

JABAN, Nepalgunj

Devendra Paudyal

Paudyal Ayurvedic Shop

Damodar Kanel

SNV

Prakash Subedi

Rupantaran

Dipesh Payakurel

Consultant

Sunil Chitrakar, Uttara Malakar

Mahaguthi

Saugat Griha

10

Seto Gumba

Monastery

11

Pharping

Monastery

12

Radha Krishna Gumba

13

Surkhet
S. No. Name, Position

Organisation

Buddhi Sapkota

Sundar Nepal Sanstha (BNA)

Buddhi Prasad Sapkota

Sundar Nepal, Surkhet

Monastery

Padam B.Shahji, President

FNCCI

Phun Chowk Gumba

Monastery

Prabal Shahi, Business Manager

14

Kimdol

Monastery

Shamboo Prasad Chaurasiya

DFO

15

Hyghlevel Lama Gumba

Monastery

Ram Bias

DFO

Himalyan Biosis

16

Sri Mahayan

Monastery

17

Krishna Rai, Manager

Saugat Micro Promotion Pvt Ltd

Dilli Pandey

Deuti Herbal Udyog

18

Rajeev Pandey

Bounty Himalaya

Parsuram Kadel

Deuti Herbal Udyog, SothKhola Cooperative

19

Sanjeev Pandey

Bounty Himalaya

10

Asha Thapa

20

Basudev Sapkota

Natures Essence Pvt Ltd

11

Mahesh Khanal

Bhat-Bhateni Dept Store

12

Binod Dev Pantha

DCSI

Saleways Dept Store

13

Jagat Bdr. Marsanghi Magar

Sothkhola Cooperative

21

Min Bahadur Gurung

22
23

Sharashowti

Himalayan Bio Trade Pvt. Ltd

14

Pradip Sunar

Ghumkhola Cooperative

24

Pankaj Kumar Das

Herbs & NTFP Coordination Committee

15

Chandra Bdr. Buda

Chandrasurya Cooperative

25

Ramila Pradhan

Department of Plant Resources

16

Tek Bdr Gharti

Amarjoyti Cooperative

26

Dr. Ing. Clemens Sanetra

Technical Cooperation, Germany

17

Gita Ram Thapa

Sir Jurimalika Jadibuti

Resham B Khadka

Trader

27

Julia Micklinghoff

PTB (Physikalisch - TechnischeBundesanstalt

18

28

Jyoti Joshi Bhatta, Senior Research Officer

Natural Products Research Laboratory, Department of

Plant Resources

19

Mr Uttam Shrestha, Manager

APSO

20

Padam Bhandari

SNV

Sanjeev Shrestha

SNV

29

Narendra Rasaili

MEDEP

21

30

Surendra Joshi

SNV

22

Bhupendra Dangi

Cooperative Jurimalika Jadibuti

AHP

23

Dilli Prasad Pandey

GharaluThata Sana Udyog

24

Upendra Thapa

Bheri Community Cooperative

25

Chandra Bahadur Buda

Chandra Surya Multipurpose Cooperative

26

Ganga Bahadur Oki

Naba Dharapani Agriculture and Livestock Cooperative

27

Prem Bahadur Dharti

Nayapani Gufa Community Forest Users Committee

28

Pancha Ratna Sharma

29

Kedar P Sharma

30

Pima Basnet

31

Chandra BBC

32

Krishna B Rai

31

56

Govinda Ghimire

57

8.5. List of Tables and Figures

Dang
S. No. Name, Position

Organisation

Madhu Sudan Vaidya

Chamber

Dhrub Raj Shrestha

Shashi Panthi

CCI

Table 2: Physico-chemical properties..................................................................................................................11

Siddhartha

Cooperative

Table 3: List of VDCs in the selected districts known to have chiuri trees..........................................................11

Airawoti

Cooperative

Rama Timelsina

MEDEP,

Table 4: Chemical composition of chiuri cake....................................................................................................12

Bhim Basnet

DMEGA

Table 5: Community forest status of the three programme districts...................................................................17

Sudakar Sapkota

FECOFUN

Table 6: Estimated area of chiuri forest and number of trees..............................................................................17

Jiv Nath Paudel

Rupantaran

10

Sri Ram

Table 7: Seed and ghee collection in tons...........................................................................................................18

11

Dipesh Paykurel

Rupantaran

12

Jhalak Paudyal

Rupantaran

13

Iswori Paudyal

14

Dharma B Pun

15

Basanta

MEDEP

16

Bishnu Prasad Paudyal

LDO

Table 12: Basic assumptions made for costing....................................................................................................34

17

Moti Kumari Bishwo Karma

Women D Office

Table 13: Profit margin for colection of chiuri seeds..........................................................................................34

18

Keshav Gurung

Trader

Table 14: Profit margin for trader (cooperative or individual)............................................................................35

Table 1: Chemical composition of chiuri...........................................................................................................10

Table 8: Import of palm oil, animal or vegetable fats and oil seeds in Nepal......................................................22
Table 9: Legal steps for collection and export.....................................................................................................24
Table 10: Access and power of chiuri value chain actors.....................................................................................33
Table 11: Resource availability of chiuri products in tons...................................................................................34

19

Bhusal Store, Dealer

20

Lal Mani Subedi, Wholesale/Retail

21

Tek Bahadur KC

Table 16: Profit margin for processing into ghee (traditional expeller, 1 kg):......................................................35

MEDEP

Table 17: Profit margin for soap manufacturing (1 batch of soap, 100 kg).........................................................36

22

Meg Raj Acharya

Table 15: Profit margin for processing into ghee (modern expeller, 1 kg)...........................................................35

Table 18: Industry profits/margins are determinants of price among various actors in the chain........................49
Table 19: Estimation of chiuri collectors and their income for option 1.............................................................50

Pyuthan

Table 20: Estimation of chiuri collectors and their income for option 2.............................................................50

S. No. Name, Position

Organisation

Madav Raj Bhandari, President

FNCCI

Table 21: Demand of Chiuri products by various target markets.......................................................................51

Basanta K MDEMA

MEDEP

Radhe Shyam, Business Counsellor

CCI

Table 22: Quantity of seeds purchased by AHP from eight cooperatives located in Surkhet, 2010....................51

Hem Raj Bista,

DFO

Ranjana Shrestha, District Project Coordinator Development Concern Society-DECOS

Madhav Neupane, Account Officer

DCSI

Figure 3: Nutritional value of chiuri seeds..........................................................................................................10

Ganesh Kumar K.C, Officer

DADO

Ishwari Acharya, Coordinator

MEDEP

Figure 4: Chiuri seeds collection, Surkhet 2013.................................................................................................12

Jhavendra Sharma ,Director

CCI

10

Durga KC

Jimruk Herbal Soap Industry

11

Chinta Bahadur Magar

12

Anup Shrestha

13

Bharat KC

Processing Company

14

Chinta B Somai

Airawti Multi-Purpose Cooperative

Figure 9: Chiuri processing steps........................................................................................................................19

15

Rewat P Khanal

Airawti Multi-Purpose Cooperative

Figure 10: Expeller, Sundara Brand, Pyuthan, field survey, September, 2013.....................................................19

Figure 1: Methodology of the Value Chain Study................................................................................................7

Figure 2: Study districts Surkhet, Dang and Pyuthan, plus Nepalgunj (Banke) and Kathmandu.........................7

Figure 5: Uses of chiuri trees, field interview, September, 2013..........................................................................12

Figure 6: Utilisation of various parts (nectar, fruit, seeds, wood, etc.) of the chiuri tree......................................13
Figure 7: Chiuri value chain map, GIZ 2013.....................................................................................................16
Figure 8: Estimated demand of chiuri products by various target markets..........................................................17

Figure 11: Traditional Kol, wooden type A, Laximpur, Dang, field survey, September, 2013.............................20
Figure 12: Flow chart of chiuri herbal soap making process...............................................................................21
Figure 13: Margins calculated for various levels of actors...................................................................................37

58

59

8.6. Reference List

Alternative Herbal Products, Pvt Ltd, Research and Development (R&D) on Chiuri Butter and Market
Promotion of Chiuri Butter-based Products.
Devkota, Hari Prasad; Watanbe, Takashi; Malla, Kuber Jung; Nishiba, Yoichi, and Yahara Shoji, Studies on
Medicinal Plant Resources of the Himalayas: GC-MS Analysis of Seed Fat of Chiuri (Diploknemabutyracea)
from Nepal.
Gurung, Khilendra, Traditional Knowledge on Chiuri (Diploknemabutvracea) and its Potentiality for
Commercialisation, Resource Research and Development Centre, Nepal.
HBAP, Report of Rapid Assessment.
ITDG, Chepangs and Chiuri the Use of Non-timber Forest Products in Nepal.
Joshi, S. J., Resource Analysis of Chiuri (Aesandrabutyracea) in Nepal, MEDEP, Nepal, June 2010.
Kureel, R.S., Cheura, A Wonder Tree Borne Oilseed National Oilseeds & Vegetable Oils Development Board,
Ministry of Agriculture, Govt. of India.
MEDEP, Herbal Soap Business Plan of Few Entrepreneurs supported by MEDEP, Nepal.
NORMS, Value Chain Analysis-Chiuri Herbal Soap, MEDEP, Nepal, December 2010.
Social Inclusion Research Fund (SIRF), Contribution of Non-Timber Forest Products in the Livelihood of
Chepang Community, Nepal, May 2008.
SNV, Inclusive Business in Nepals Agriculture Sector Lessons Learned, Nepal, 2010.
Western Uplands Poverty Alleviation Project (WUPAP), Assessment of Chiuri (DiploknemaButyracea) for its
Commercialisation in Rolpa District, District Forest Office, Rolpa, Nepal.

60

Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH

Inclusive Development of the Economy Programme (INCLUDE)
Kathmandu Office:
Narayani Complex, 4th Floor
Pulchowk, Lalitpur
P.0. Box 1457, Kathmandu, Nepal
T: +977-1-5555289
F: +977-1-5521712
E: include@giz.org.np
I: www.includenepal.org

Nepalgunj Office:
P.O. Box 69, Rambag 17
Nepalgunj, Banke
T: +977-081-527740
F: +977-081-521655
E: include.npj@giz.org.np

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