Action Research on Inclusive Model of Forest Based Enterprises Development and Documentation in Kalinchok VDC, Northern Dolakha

A Study Report Submitted To Ecology, Agriculture and Rural Development Society
(ECARDS) - Dolakha Charikot, Dolakha

Submitted By
Khilendra Gurung
November, 2007

Table of Content

CHAPTER ONE 1.1 Introduction 1.2 Objectives 1.3 Study area CHAPTER TWO 2.1 Methodology 2.1.1 Key informant survey and resource mapping 2.1.2 Identification of NTFPs 2.1.3 Data processing and analysis 2.1.4 Population distribution parameters 2.1.5 Prioritization of NTFPs 2.1.6 Rapid vulnerability assessment (RVA) 2.1.7 Focus group discussion CHAPTER THREE 3.1 Population distribution parameters of NTFPs in Kalinchok 3.2 Prioritization of NTFPs 9 9 6 6 6 6 6 7 7 8 1 2 2

3.3 Prioritization of NTFPs in Kalinchok 3.4 Threat analysis 3.5 RVA of NTFPs in Kalinchok CHAPTER FOUR 4.1 Trade and trading pattern of NTFPs in Kalinchok 4.2 Marketing status/trade value of NTFPs in Kalinchok 4.3 Trading pattern of NTFPs CHAPTER FIVE 5.1 Potentiality for enterprise development in Kalinchok 5.2 Potentiality for enterprise development in Kalinchok 5.3 Potential markets of the value added NTFP products 5.4 Value addition techniques of NTFPs 5.5 Processing technology CHAPTER SIX 6.1 Biological sustainable harvesting 6.2 Harvesting impact on population dynamics 6.3 Establishing sampling areas 6.4 Developing a raw material sourcing plan

9 10 11

12 12 13

14 14 15 16 16

18 18 19 20

CHAPTER SEVEN 7.1 Conclusion 7.2 Recommendations References Lists of Tables Table 1: Class distribution of NTFPs in different sites Table 2: Matrix preference ranking Table 3: Criteria for RVA Table 4: Class distribution of NTFPs in Kalinchok Table 5: Matrix preference ranking of NTFPs in Kalinchok Table 6: RVA analysis of NTFPs in Kalinchok Table 7: Marketing status/trade value of NTFPs in Kalinchok Table 8: Potentiality for enterprise development in Kalinchok Table 9: Potential markets for NTFPs products Table 10: Value addition techniques of NTFPs Table 11: Processing technology and application 6 7 7 9 10 11 12 14 15 16 16 22 22 24

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

Table 13: Recommended optimal harvesting practices for sustainable NTFPs product use Lists of Boxes Box 1: Checklist to assess harvesting sustainability of forest products 18 Box 2: Check list for raw materials sourcing plan List of Map Map 1: Map of study area 5 21 20

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

CHAPTER ONE

1.1 Introduction The diverse geography and climate of Nepal has rendered it a unique land of Non Timber Forest Products (NTFPs) along with other natural resources. NTFPs have been welfare, subsistence or livelihood commodity for the people residing in rural mountainous areas of Nepal since long. The high mountain NTFPs are highly praised for high potency and organic nature, hence they fetch higher prices. The importance of Medicinal and Aromatic Plants (MAPs) has increased progressively over the last two decades. Herbal remedies are increasingly becoming mainstream consumer products manufactured by multi-national companies amongst other, and sold in super market chains and in a variety of other outlets, globally. Food supplements, cosmetics, fragrances, traditional cuisine, dyeing and coloring agents are just a few of the application where NTFPs are finding increasing use by the day. As a result there is growing demand of Nepalese MAPs and other NTFPs for these purposes. In spite of all advantages, the government is still not able to harness the full potential of NTFPs for the welfare of rural communities. The major constraints for such situation are considered to be low capital investments both by the government and private sectors for the overall promotion of NTFPs including commercial cultivation, enterprise development and the perpetual marketing of quality products; government’s unclear investment policy, lack of proper documentation on species availability (or bio-prospecting) and uses and poor awareness among public on its values. Northern region of Dolakha harbors rich source of NTFPs diversity. Local communities have been using NTFPs as food supplements, medicines, dyes, fiber, clothing, construction, energy and support to farm nutrients and livestock feed. However, they are not benefited from the resources due to the lack of knowledge on the resources, their market value and their potentiality for cultivation and value addition. Conservation initiatives through sustainable use of NTFPs would uplift livelihood of local communities if: a) communities take on increased responsibility for management of forest resources; b) ecological monitoring

and biologically sustainable harvesting practices are developed; c) communities have greater access to market linkage; d) communities sustain forest based enterprise with equal benefit sharing mechanism and e) communities adopt both indigenous and scientific knowledge for appropriate management systems. To address the current needs, one way would be the initiation for the commercial cultivation of valuable NTFPs, their processing at local level and market linkage of raw or processed products via community initiatives. It is essential that women groups (WGs), underprivileged groups and community forest user groups (CFUGs) are included in such a model. The women and underprivileged groups should be transformed to skillful entrepreneur and CFUGs, a commercial entity taking the responsibility of resource conservation and management. The semi processed and processed NTFPs products produced from such enterprises should be market linked after the value addition at the local level thereby benefiting the local communities. In this aspect, the proposed study would be justifiable in terms of linking local livelihood with resource conservation and management, initiating community based forest enterprise and its linkage to market through product promotion. It would certainly assist in conserving the biodiversity of the Northern Dolakha and assist in livelihood of the local communities, which is the ultimate goal set up by Ecology, Agriculture and Rural Development Society (ECARDS)-Dolakha. 1.2 Objectives The overall objective is to perform the action research on inclusive model of forest based enterprises development and documentation in Kalinchok. The specific objectives are as follows: 1. To prioritize NTFPs on the basis of trade value and threat 2. To identify NTFPs products that can be value added locally 3. To assess the current market status of NTFPs at local level 4. To document the different inclusive model of forest based enterprises that can be set up 5. To recommend steps to be followed by community for sustainable harvesting of NTFPs

1.3 Study area Kalinchok Village Development Committees (VDC) of Northern Dolakha was chosen for the study. A great variety of vegetation types is present, ranging from sub-tropical forest to alpine meadows in the studied areas. The ecological zones of the study area encompass the following forest and vegetation types: 1. Chir Pine-Broadleaved forest The chir pine-broadleaved forest occurs between 1000-2000m. It is generally composed of Pinus roxburghii, Quercus spp, Rhododendron arboreum, Lyonia ovalifolia, Erythrina stricta and Schima wallichii. This forest type represents the hygrophilic (humid) form of the chir pine forest. 2. Schima-Castanopsis forest True representation of Schima-Castanopsis forest type in natural state is scarce. Studies on the remaining vegetation have revealed that this zone may be identified as Schima-Castanopsis zone. Schima wallichii is associated with Castanopsis indica at lower elevations (1000-1500m) and with Castanopsis tribuloides at higher elevations (1500-2000m). However, in some areas both the species of Castanopsis is found associated of Schima wallichii because their range of altitudinal distribution is not sharply differentiated. Other common associates of this forest are Rhododendron arboreum, Lyonia ovalifoila, Eurya acuminata, Quercus sp, Juglans regia, Duabanga sp etc. 3. Alder forest Alder (Alnus nepalensis) forms a dense forest in the sub-tropical region (10002700m) along moist sites such as ravines, river banks and fresh landslides with excessive moisture. Alder trees have proved to be useful for restoring fresh landslides and also for providing green cover of abandoned terraces. The role of Alnus nepalensis supported closely by Eupatorium adenophorum as a pioneer species has been significant in the restoration ecology of Nepal. 4. Himalayan Oak-Laurel forest This forest type occurs between 2000-2500m on the south of the main Himalayan range. This forest is characterized by the occurrence of oak (Quercus lanata) and a number of evergreen lauraceous trees as Litsea sp,

Dodecadenia sp, Neolitsea sp, Lindera pulcherrima, Persea sp, Symplocos sp and Lyonia ovalifolia. 5. Mixed Rhododendron-Maple forest This forest is also known as mixed broadleaved forest lying between elevations of 2600-3000m. Rhododendron arboreum and species of maple (Acer campbelli and A. pectinatum) remain prominent in this forest type. A number of laurels and other evergreen shrubs as Symplocos spp. and Ilex spp. form the second storey; in some areas, Tsuga dumosa are found in this forest type. 6. Temperate Mountain Oak forest The oak forest (Quercus semecarpifolia) occupies montane level at altitude of 2500-3000m. On humid slopes, oak is associated with hemlock (Tsuga dumosa), rhododendrons and maples. Some understorey layers of laurels (Neolitsea sp, Lindera pulcherrima and Dodecadenia grandiflora) occur in this forest. 7. Fir-Hemlock-Oak forest It occurs in lower sub-alpine and upper temperate zones at 2800-3400m, characterized by the dominance of silver fir (Abies spectabilis) mixed with hemlock (Tsuga dumosa) on the northern aspects and with oak (Quercus semecarpifolia) on southern aspects. 8. Rhododendron forest Rhododendron arboreum forest is widely found in coniferous forest zone with scattered Abies spectabilis layer above it. In some areas, Arundinaria sp. occurs as a shrub layer and herb layer is hardly developed. This forest ranged from 2900-3300m. While R. campanulatum forest is found frequently as a second layer of Abies spectabilis forest near its upper limits, but generally this formed dense thicket above the timber line. The second and shrub layers are lacking. In the herb layer, mosses dominate in most cases. This forest occurs between 3000m to 3700m. R. barbatum is localized forest to stream-side or concave slope in Abies spectabilis forest.

9. Silver Fir forest Pure fir forests are generally found at 3000-3600m. Fir forest is associated with a number of rhododendrons as Rhododendron arboreum, R. barbatum, R. hodgsonii, R. campanulatum as the second layer of the canopy. A small stature bamboos Arundinaria spp. Occur at the forest destruction sites. Herbs such as Meconopsis sp, Rosa sp, Primula sp, Anemone sp, Androsace sp, Geum sp cover the grassy floor. 10. Birch-Rhododendron forest Birch-rhododendron association is regarded as the tree line vegetation in Nepal Himalaya. Massive stands of birch (Betula utilis) are formed on north facing, shady slopes and ravines with an understorey of rhododendrons, Sorbus sp and maples (Acer sp). Birch forest is often mixed with fir trees rising above the birch canopy. The associated rhododendron species include, Rhododendron campanulatum, R. campylocarpum, R. hodgsonii. Small stature bamboos as Arundinaria maling form an important component of ground cover with herbs as Primula sp, Rheum sp, Aconitum sp and Swertia sp. 11. Dry alpine scrub This forest type occurs from elevations 4000-4500m. The forest is dominated by dwarf and prostrate junipers (Juniperus recurva and Juniperus indica) along with other xerophyllous plants as Ephedra gerardiana, Cassiope fastigiata, Potentilla fruticosa, Lonicera sp and Berberis spp (Berberis erythroclada, B. insignis and B. wallichiana). 12. Moist alpine scrub Alpine meadows are rich in species of Primula and Meconopsis. Drier sites are occupied by sedges, grasses and Ephedra sp. While, moist sites are occupied by some commercially important medicinal herbs as Nardostachys grandiflora, Neopicrorhiza scrophulariiflora, Aconitum sp, Selinum tenuifolium, Swertia sp, Potentilla sp, Fritillaria cirrhosa etc. The study area is inhabited by a variety of indigenous communities. Majority of the inhabitants of the study area are Thamis followed by Tamangs, Chhetris and Brahmins.

Map 1: Map of study area Location of study area

CHAPTER TWO

2.1 Methodology The current work was completed in four phase viz. primary data collection, secondary data collection, data analysis and report writing. Primary data was collected from the field while secondary data was compiled from various other related documents. 2.1.1 Key informant survey and resource mapping Information about the availability, current status and use of NTFPs were collected from CFUCs. Discussions were held with key informants for identification and listing of available NTFPs, their priority ranking and for suitable site selection for the study. 2.1.2 Identification of NTFPs NTFPs were identified visually on the basis of researcher's knowledge and with the help of local key informants. Unidentified species were identified consulting with the reference literatures as HMG/Department of Medicinal Plants, 1976; Stainton and Polunin, 1984; Stainton, 1988; Shrestha, 1998; Lama et al. 2001; Manandhar, 2002 and IUCN, 2004. Documentation of all available NTFPs was carried out according to Press et al., (2000). 2.1.3 Data processing and analysis Data obtained from the field were analyzed to find out population distribution parameters, matrix preference ranking (MPR), rapid vulnerability assessment (RVA), potentiality for value addition and market linkage, etc. 2.1.4 Population distribution parameters Distribution of NTFPs parameters were categorized in following ways: Table 1: Class distribution of NTFPs in different sites Frequency High >75 Medium 31-74 Low <30 High >15 Relative Frequency Medium 5-15 Low <5

Population density/ha >800 300-800 <300 >15 Source: Pyakurel (2005)

Relative density 5-15 <5

2.1.5 Prioritization of NTFPs Matrix preference ranking (MPR) was used to find out most preferred NTFPs. By using this tool, the most preferred NTFP species were identified from forests of each VDC for the detail study. The criteria of preference were made by the users, availability of the resources and potential for value addition. Moreover, the prioritization criteria of other development organizations like NSCFP, SNV, ANSAB, BDS-MaPS and matrix ranking criteria have been thoroughly examined to attain the set objectives with proper justification. Table 2: Matrix preference ranking SN Criteria Scale and value 1 Market demand High (3), moderate (2), low (1) 2 Margin/profit High (3), moderate (2), low (1) 3 Availability (in time ) Almost always (3), occasional (2), seasonal rare (1) 4 Geographical Widespread (3), moderate (2), low (1) distribution 5 Conservation status High (3), moderate (2), low (1) 6 Potential for cultivation High (3), moderate (2), low (1) 7 Regenerative potential High (3), moderate (2), low (1) 8 Contribution to income High (3), moderate (2), low (1) 9 Gender impact Only women (3), both men and women (2), only men (1) 10 Potential for value High (3), moderate (2), low (1) addition 11 Processing technology Manual/local technology (3), mechanical/expertise required (2), sophisticated/foreign technology (1) 12 Ethnobotanical value Diverse uses (3), medium use (2), single use (1) Source: Gurung and Pyakurel (2006) and Gurung (2007)

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

Ecology

Life forms Parts used Harvesting methods

Source: Watts et al., 1996; Cunningham, 1994, 1996a, 2001; Wong and Jenifer, 2001; Gurung and Pyakurel (2006) and Gurung (2007) 2.1.7 Focus group discussion Discussion program was held at Kalinchok village with members of CFUGs, ECARDS-Dolakha social mobilizers regarding the exchange of NTFPs based activities conducted so far and their prospects for the future collaboration and coordination. Also, the interaction was held with NTFPs collectors and traders to discuss about NTFPs farming, trading pattern and trade value at local level.

CHAPTER THREE 3.1 Population distribution parameters of NTFPs in Kalinchok Table 4: Class distribution of NTFPs in Kalinchok S N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Botanical Name Artemisia dubia Artemisia indica Arundinaria racemosa Berberis asiatica Daphne bholua Daphne papyracea Drepanostachyum intermedium Edgeworthia gardneri Eupatorium adenophorum Girardinia diversifolia Lycopodium clavatum Paris polyphylla Parmelia sp Persea clarkeana Potentilla fructicosa Rhododendron arboreum Rubia manjith Swertia chirayita Valeriana jatamansii Viburnum mullaha Zanthoxylum oxyphyllum Frequency R. Frequency Low Low Low High Medium Low Low Medium Medium Low Medium Medium Medium Medium High Medium Medium Medium Low Low Medium Low Low Low Low Low Low Low Low Low Low Low Low Low Low Low Low Low Low Low Low Low Densit y High High High High High High High High High High High High High High High High High High High High High R. Density Low Low Low Low Low Low Low Low Low Low Low Low Low Low Medium Low Low Low Low Low Low

3.2 Prioritization of NTFPs The species were prioritized based on 8 principal criteria viz. (i) highly demanded commercial species (ii) species having high market price (iii) having potential for domestic value addition (iv) species available over wide geographical range (v) species harvestable in short rotation period (vi) land

fertility requirement for species (vii) species importance in ethnobotany and (viii) species conservation status. 3.3 Prioritization of NTFPs in Kalinchok Prioritized NTFP species of Kalinchok for value addition and marketing linkage and further assessment are Titepati (Artemisia dubia and A. indica), Chirayito (Swertia chirayita), Allo (Girardinia diversifolia), Argeli (Edgeworthia gardneri), Lokta (Daphne bholua and D. papyracea), Timur (Zanthoxylum oxyphyllum), Satuwa (Paris polyphylla), Majitho (Rubia manjith) and Chutro (Berberis asiatica). The details are given in table below: Table 5: Matrix preference ranking of NTFPs in Kalinchok
Potential for cultivation Contribution to income Regenerative potential Processing technology SN Criteria⇒ Availability ( in time ) Conservation status Ethnobotanical value

Potential for value addition

Market demand

Margin / Profit

Gender impact

Geographical distribution

1 2 3
4

NTFP species ⇓ Artemisia dubia Artemisia indica Arundinaria racemosa Berberis asiatica Daphne bholua Daphne papyracea Drepanostachyum intermedium Edgeworthia gardneri Elaeagnus parvifolia Eupatorium adenophorum Girardinia diversifolia Lycopodium clavatum

3 3 2 3 3 3 2 3 1 1 3 3

3 3 2 3 3 3 2 2 1 2 3 3

2 2 3 3 3 3 3 3 2 3 2 2

3 3 2 3 3 3 2 2 2 3 3 2

3 3 2 3 1 1 2 2 3 3 3 3

3 3 1 1 1 1 1 3 2 3 1 1

3 3 3 3 2 3 1 2 2 2 2 3 3 3

2 2 1 2 2 2 1 2 2 2 2 2

3 3 2 2 3 3 2 3 3 2 3 2

2 2 3 3 3 3 3 3 2 2 3 3

3 3 3 3 2 2 3 2 2 2 3 2

33 33 26 29 29 29 26 30 23 27 32 27

5 6 7 8
9

3 2 2 1 3 1 3 3 2 2

10 11
12

Total

13

14
15 16 17 18

Paris polyphylla Parmelia sp Persea clarkeana Potentilla fructicosa Rhododendron arboreum Rubia manjith Swertia chirayita Valeriana jatamansii Viburnum mullaha Zanthoxylum oxyphyllum

3 3 1 1 3 2 3 3 1 3

3 3 1 1 3 2 3 3 1 3

2 3 2 3 2 3 3 3 3 3

2 3 2 3 3 3 2 2 2 2

3 3 3 3 3 3 3 3 3 3

3 1 2 3 1 3 3 2 3 3

3 2 2 3 1

2 3 1 1 3

2 2 1 2 2 2 2 2 2 2

2 1 3 2 3 2 2 2 3 3

1 1 2 1 2 1 3 1 2 2

3 3 2 2 2 3 3 3 2 3

29 28 22 25 28 29 33 30 25 32

19 20 21 22

3 2 3 3 3 3 2 1 2 3

3.4 Threat analysis Rapid vulnerability assessment (RVA) analysis was carried out for the prioritized NTFP species of Kalinchok VDC. RVA was conducted on the basis of the following criteria: 1) ecology, 2) life form, 3) parts used and 4) harvesting method. 3.5 RVA of NTFPs in Kalinchok The most vulnerable NTFP species of Kalinchok VDC are Gurans (Rhododendron arboreum, Timur (Zanthoxylum oxyphyllum), Mollo (Viburnum mullaha), Bhulna (Persea clarkeana), Jhyau (Parmelia sp), Satuwa (Paris polyphylla), Allo (Girardinia diversifolia), Malindo (Elaeagnus parvifolia), Nigalo (Drepanostachyum intermedium and Arundinaria racemosa) and Lokta (Daphne papyracea and Daphne bholua). The details are shown in table below: Table 6: RVA analysis of NTFPs in Kalinchok
Mode of reproduction Rate of reproduction Criteria⇒ Life form diversity Harvesting method 1

Abundance

Habitat

Growth

Parts used

SN NTFPs ⇓ Artemisia dubia

Habitat diversity

Life form

1

2

2

2

1

2

2

2

1

2

Score 17

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Artemisia indica Arundinaria racemosa Berberis asiatica Daphne bholua Daphne papyracea Drepanostachyum intermedium Edgeworthia gardneri Elaeagnus parvifolia Eupatorium adenophorum Girardinia diversifolia Lycopodium clavatum Paris polyphylla Parmelia sp Persea clarkeana Potentilla fructicosa Rhododendron arboreum Rubia manjith Swertia chirayita Valeriana jatamansii Viburnum mullaha Zanthoxylum oxyphyllum

2 2 2 2 1 2 2 2 2 2 2 1 2 2 2 2 2 2 1 2 1

2 1 2 1 1 1 2 1 2 2 2 2 2 1 2 1 2 2 2 1 1

2 1 2 1 2 1 2 2 2 2 2 2 2 1 2 1 2 2 2 1 2

1 2 2 2 2 2 2 2 1 1 1 2 1 2 2 1 1 1 2 2 2

2 2 2 2 2 2 2 2 2 1 2 2 1 2 2 2 2 2 2 2 2

2 2 2 2 2 2 2 2 2 2 2 1 1 2 2 2 2 2 2 2 2

2 2 2 2 2 2 2 1 2 2 2 2 2 1 2 1 2 2 2 1 1

1 1 1 1 1 1 1 1 1 1 2 2 2 1 2 1 2 2 2 1 1

2 2 2 2 2 2 2 2 2 2 2 1 1 2 1 2 1 1 1 2 2

1 1 1 1 1 1 1 1 2 1 1 1 2 1 1 1 1 1 1 1 1

17 16 18 16 16 16 18 16 18 16 18 16 16 15 18 14 17 17 17 15 15

CHAPTER FOUR 4.1 Trade and trading pattern of NTFPs in Kalinchok The local communities of the study areas depend on subsistence agriculture, animal husbandry, trade labor and foreign employment for their livelihood support. However, few villagers are engaged in the collection and trade of NTFPs as seasonal and additional source of income. The traded NTFPs/products and their trading pattern in the study areas are as follows: 4.2 Marketing status/trade value of NTFPs in Kalinchok Mostly the elder members of villages of Kalinchok VDC collect nigalo and malingo culms from the nearby community forests. They process the culms using traditional methods for making products like chitra, bhakari, dala and doko. These products are either sold or barter with rice to the villagers of other VDCs. Similarly, they collect Lichens from the nearby forests and sell them to the middleman at Charikot or Singhati. They harvest the NTFPs, process locally and sell them to the road head traders at Charikot or Singhati or sometimes sell directly to Kathmandu market. Table 7: Marketing status/trade value of NTFPs in Kalinchok SN NTFPs Products Trade value 1 Culm of Tite nigalo Chitra NRs. 150-160 per piece (Drepanostachyum or barter with rice in intermedium) other villages 2 Culm of Sano malingo Bhakari NRs. 100-110 per piece (Arundinaria racemosa) or barter with rice in other villages 3 Culm of Malingo Dala NRs. 40-50 per piece or (Thamnocalamus spathiflorus barter with rice in other and Yushania microphylla) villages 4 Culm of Sano malingo Doko NRs. 25-30 per piece or (Arundinaria racemosa) barter with rice in other villages

5

6 7 8 9

Rhizomes and roots of Sugandhawal (Valeriana jatamansii) Whole parts of Chirayito (Swertia chirayita) Argeli white skin (Edgeworthia gardneri) Lokta bark (Daphne bholua and D. papyracea) Jhyau (Parmelia sp)

Raw/Crude Rhizomes-NRs.140 per form kg Roots-NRs.105 per kg Raw/Crude NRs. 200-225 per kg form Raw NRs. 40-50 per kg Raw Raw NRs. 70-80 per kg NRs. 70-90 per kg

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

CHAPTER FIVE 5.1 Potentiality for enterprise development in Kalinchok Forest based enterprises exist in various modalities, which can be outlined in aspects of ownership structure, linkages to raw materials, target markets, seasonality of operation, technological sophistication, management structure, product types and similar other characteristics. On the ownership dimension, 5 different modalities can be set up in Kalinchok, they are as follows: a) Sole enterprise, b) Woman group enterprise, c) Consortium of CFUGs enterprise, d) Cooperatives and e) Private limited company In terms of linkages of raw materials, economic and enterprise activities are based on raw materials drawn from the community forests and government forests. On the basis of the resource availability, processing technology, communities’ willingness and market linkage, the following are the potentiality for enterprise development in the studied Kalinchok VDC: 5.2 Potentiality for enterprise development in Kalinchok Table 8: Potentiality for enterprise development in Kalinchok SN NTFPs/ Products Potentiality for enterprise development 1 Lokta bark (Daphne bholua and 1. Collective marketing centre- A coD. papyracea), Argeli white skin operative model (Edgeworthia gardneri), Allo fiber 2. Establishment of handmade paper (Girardinia diversifolia) enterprise-FUG and private entrepreneur partnership model 3. Establishment of Allo bark/fiber processing enterprise- Women group model 2 Titepati leaves (Artemisia dubia Processing of Artemisia oil from and A. indica) Titepati leaves–Establishment of

3

4

5

6

7

8

Nigalo and Malingo culms (Drepanostachyum intermedium, Arundinaria racemosa, Thamnocalamus spathiflorus and Yushania microphylla) Titepati leaves, Timur leaves and barks, Angeri leaves (Lyonia ovalifolia), Bulu leaves (Pieris formosa), Ketuke (Agave americana) Sugandhawal (Valeriana jatamansii), Chirayito (Swertia chirayita), Lek Timur (Zanthoxylum oxyphyllum), Padamchaal (Rheum australe), Zanthoxylum armatum (Timur), Satuwa (Paris polyphylla), Kurilo (Asparagus racemosus), Argeli (Edgeworthia gardneri), Mal Bans (Bambusa nutans) and Amriso (Thysanolaena maxima) Flowers of Gurans (Rhododendron arboreum), fruits of Mallo (Viburnum mullaha), Bhaki amilo (Rhus javanica), Malindo (Elaegnus parvifolia) and Bhulna (Persea clarkeana) Seeds of Kholme/ Kharane (Symplocos pyrifolia/ S. ramossissima) Ban mara (Eupatorium adenophorum) and Titepati (Artemisia spp.)

processing unit at Kalinchok village Basketry and handicraft enterprisesHousehold level enterprise

Organic insecticides/pesticides making -Household level enterprise

1. Establishment of multipurpose nursery; 2. Commercial cultivation enterprises in private lands of the respective villages; 3. Formation of collection and marketing cooperatives - Household level /FUG level enterprise

Juice and herbal drinks makingWomen group model enterprise

Edible oil expelling- Women group model enterprise Bio briquette making- Women group model enterprise

5.3 Potential markets of the value added NTFP products The enterprise models and the NTFPs products to be value added are designed with the motive of markets linkage assurance focusing basically at the local level consumption. Table 9: Potential markets for NTFPs products SN 1 2 3 4 5 Specific products Allo fiber/Allo thread Amriso broom Argeli white skin Bio briquette Crude herbs (Sugandhawal, Chirayito, Padamchaal, Satuwa, Kurilo etc.) Edible oil Essential oils (Artemisia oil and Abies oil) Handicrafts and basketry Potential markets Clothes weaving enterprises of Kathmandu Local markets/ Household level Handmade paper enterprises at Kathmandu Hotels and restaurants of Charikot or Kathmandu Roadhead traders of Singhati and Charikot or Herbs and herbal products traders of Kathmandu Local markets/ Household level Various essential oils traders/exporters and health care herbal products manufacturers at Kathmandu Basketry: Porters/ local markets/Household level Handicrafts: Souvenir shops Local markets/ Household level Hotels and restaurants in Charikot or Kathmandu market Handmade paper enterprises at Charikot or Kathmandu Farmers/ Household level Other VDCs or user groups for cultivation / Household level Singhati and Charikot markets or Kathmandu market

6 7

8

9 10 11 12 13

Herbal incense Juice (Mollo juice and Gurans Juice) Lokta bark Organic insecticide/pesticides Seedlings and saplings of multipurpose herbs and NTFPs Timur fruits

14

5.4 Value addition techniques of NTFPs Value addition techniques at local level includes; cleaning, drying, grading, packaging and improved marketing. Commonly practiced methods of value addition of NTFPs and their techniques are presented below: Table 10: Value addition techniques of NTFPs SN Type of value Techniques addition 1 Drying Sun drying: For medicinal herbs Shade drying: For aromatic plants 2 Cleaning Cleaning with water for roots/rhizomes, using clothes and brushes for other parts 3 Grading Grading on the basis of the quality 4 Packaging Packaging in polythene bags ensuring free of moisture 5 Improved trading Adopting collective bargaining 5.5 Processing technology Simple and locally available technologies are more sustainable than the imported and more sophisticated ones. Through the technological interventions there is a scope to improve the quality, reduce the loss, increase the efficiency of operation and thereby reduce the cost. Technological improvements can also be made building on the traditional and existing technologies to match the current market requirement. Few processing technology on NTFPs that can be adopted in Kalinchok are as follows: Table 11: Processing technology and application SN Technology Examples of application 1 Bio briquette Banmara, titepati 2 Compacting Chirayito 3 Debarking Lokta bark and argeli white skin 4 Drying (traditional sun drying, All medicinal and aromatic plants fire drying, shade drying and improved solar drier)

5 6 7 8 9 10 11 12

Extraction of juice Fiber extraction Grinding and mixing Oil expeller Packaging Paper making Steam distillation Weaving (Shuttle loom and pedal operated spinning)

Mollo, bhulna, bhaki amilo Allo and ketuke Herbal incense Fixed oil extraction from kholme/kharane All raw NTFPs, value added products and finished products Lokta bark and argeli white skin Essential oils from aromatic plants (Titepati, talispatra/ gobre salla etc.) Allo clothes

CHAPTER SIX

6.1 Biological sustainable harvesting Biological diversity and sustainability occur at several levels: a) genes b) population c) community and d) ecosystem Harvesting can impact all of these levels. Since the effect of harvesting are superimposed on the natural population dynamics, a comparison between natural and harvested populations will provide enough information to assess sustainability. To determine biologically sustainable harvesting levels start by collecting community knowledge on particular species. It is important to know: a) The current level of harvesting b) The area where it is harvested c) The amount traded d) The various harvesting methods e) The season, percentage and parts of plant harvested If the species is traditionally collected, indigenous knowledge provides information on sustainable harvesting levels. Less information on sustainability exists for products that are not traditionally collected. Establish sampling areas for both traditionally collected and non- traditionally collected products. Sampling areas provide biological information on the collected natural products. Box 1: Checklist to assess harvesting sustainability of forest products knowledge on the natural distribution of the species frequency of occurrence or abundance population structure (age/size/class distribution) dynamics of the species (growth and reproduction rates) variation among habitats role within the ecosystem 6.2 Harvesting impact on population dynamics Forest products harvesting can have short and long term effects on the plant, ecosystem and overall biodiversity. Harvesting impacts on one population can

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

reproductive adults 6.3 Establishing sampling areas Sampling areas provide information on the distribution and abundance of forest products and the impact of harvesting on the plant’s population dynamics. Sampling areas are also an important part of biological monitoring. To determine the long term impact of harvesting on population dynamics, permanent plots must be established. Trials that measure the effect of different harvesting levels and methods are also helpful. Sampling areas must be monitored for years twice at a minimum, to learn how harvesting effects overall biodiversity. Sampling areas help to: - establish rotational harvesting schedules - identify optimal harvesting times and methods - get community members involved in hands on biological monitoring - devise more accurate community resource management plans Table 13: Recommended optimal harvesting practices for sustainable NTFPs product use Parts Optimal Optimal Optimal % of Optimal harvested harvest rotational plants not harvesting season interval harvested methods Rhizomes with July3-5 years At least 20% Whole plants roots October plants pulled from undisturbed bushy areas and dug out carefully with the tool, kuto, from open grasslands Fruits July1-2 years At least 20% Fruits/fruits with September fruits stalks are undisturbed detached from stem using sickles or bare hands

Leaves/needles JulyOctober Flowers MayAugust MayAugust

1 year

1-2 years

Barks

3-5 years

Aerial parts

JulyOctober

2-3 years

At least 30% of leaves left on plant At least 30% of flowers left undisturbed At least 75% bark left undisturbed/For debarking Lokta bark and Argeli white skin the stem should be cut at least 1518 cm above the ground At least 40% plant left undisturbed

Leaves hand picked or cut with scissors Flowers hand picked or cut with scissors Bark pulled from plants with the help of sickles or knife/khukuri

Aerial parts cut with scissor or khukuri

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

It is important to have good relations and communication with respective suppliers. Box 2: Check list for raw materials sourcing plan resource supply areas raw material type and quality quantity by season storage facility legal obligations/ permits transportation arrangements labor supply management agreements with suppliers risk and strategies working capital requirements

CHAPTER SEVEN

7.1 Conclusion The study area harbors rich diversity of NTFP resources. However, most of the local communities of the study areas are unaware about the use and benefits of NTFPs available in the nearby forests and their farm lands except for fuel wood and fodder. Assessment of forest based enterprises development in Kalinchok VDC revealed that there are tremendous potentialities for the cultivation, harvesting, value addition and marketing of prioritized NTFPs. The local communities are more curios for the promotion and value addition of NTFPs which would support their livelihood. Enterprise development potentialities assessment in Kalinchok VDC revealed that there are immense potentialities of enterprise set up for the product lines as handmade paper, allo thread, bio-briquette, edible oil expelling, herbal drinks/juice making, handicrafts and basketry, organic insecticide/pesticide, cultivation of NTFPs, collective marketing centre for crude herbs and NTFPs and essential oils extraction (Artemisia oil and Abies oil) in different villages of Kalinchok VDC. For genesis, operation and growth of forest based enterprise in Kalinchok VDC; a biologically sustainable harvesting mechanism should be prepared for each community forest and forests within government managed teritory. Moreover, some factors that contribute to or hinder the genesis, operation and growth of enterprises should be taken into account. These include: awareness raising, technical assistance, financial support, marketing support, marketing outlets, community characteristics, natural resource base, technology, policy factors, enterprise consequences and natural resource conservation. In conclusion, the communities’ motivation towards entrepreneurship, institutionalization of user groups (CFUGs, WGs, etc.) and regulatory mechanisms for sustainable harvesting of NTFPs would definitely create the income generating opportunities and would assist in the conservation of biodiversity in Kalinchok.

7.2 Recommendations The local communities play a crucial role for the conservation and sustainable utilization of forest resources including NTFPs. Conservation and sustainable management of the forest resources are the ever raised issues, but why and how to conserve and manage are the big questions challenging ever. Therefore, the following steps are recommended for addressing conservation of forest resources and livelihood issues of local communities in Kalinchok VDC: 1. Awareness programs (workshops, exhibitions, exposure visits and demonstration of the products) on the importance of NTFPs; conservation and sustainable utilization, cultivation and harvesting at local level need to be conducted. 2. Capacity building/strengthening the concerned CFUGs / WGs on institutional development, governance/equity, fund mobilization, financial management, record keeping, benefit sharing mechanism etc. should be initiated. 3. Field based training package on NTFPs promotion; time and technique of collection, local processing technology, storage, quality control, packaging, labeling, and cultivation of major NTFPs should be conducted. 4. Development of biological sustainable harvesting system; block rotation system preferable for harvesting/ participatory monitoring system should be prepared for each user groups. 5. Detailed assessment of the potential enterprises that can be set up in Kalinchok VDC should be conducted in collaboration with various user groups. 6. Feasibility study on market linkage, technology transfer, equipments and availability of skill manpower should be conducted for each product line. 7. Micro-credit facilities should be provided for the initiation of small scale enterprises and financial and operational support should be provided for the medium scale consortium enterprise/ cooperative model. 8. Initiation for the management and conduction of pilot model enterprise preferably, handmade paper; edible oil and allo fiber processing.

9. Formation of committee/organization for providing necessary technology, seeds/seedlings to farmers. 11. Establishment of marketing information system (MIS) on NTFPs at Singhati or at Charikot. 12. Formation of collective marketing centre / cooperative for marketing NTFPs/NTFPs products in Singhati or at Charikot.

References Cunningham, A. B. 1994. Integrating Local Plant Resources and Habitat Management. Biodiversity and Conservation. 3. pp 104-115. Cunningham, A. B. 1996 a. People, Park and Plant Use: Recommendations for Multiple Use Zones and Development Alternatives around Bwindi Impenetrable National Park, Uganda. People and Plants Working Paper no 4. UNESCO, Paris. pp 58. Cunningham, A. B. 2001. Applied Ethnobotany: People, Wild Plant use and Conservation. People and Plants Conservation Manual. Earthscan. Gurung, K. 2007. Resource Assessment of Commercially Important Non Timber Forest Products (NTFPs) in Sagarmatha National Park and Buffer Zone (SNPBZ). A report submitted to Sagarmatha National Park and Buffer Zone Support Project (SNPBZSP), Namche Bazaar, Solukhumbu. Gurung, K. and Pyakurel, D. 2006. Identification and Inventory of Non Timber Forest Products (NTFPs) of Manaslu Conservation Area (MCA). A report submitted to Manaslu Conservation Area Project (MCAP)/National Trust for Nature Conservation (NTNC), Gorkha. IUCN. 2004. National Register of Medicinal and Aromatic Plants. IUCN Nepal. Lama, Y. C., Ghimire, S. K. and Aumeeruddy-Thomas, Y. 2001. Medicinal Plants of Dolpo: Amchis Knowledge and Conservation. WWF-Nepal Program, Kathmandu. Manandhar, N. P. 2002. Plants and People of Nepal. Timber Press; Portland, Oregon, USA. Polunin, O. and Stainton, A. 1984. Flowers of the Himalaya. Oxford University Press. New Delhi. Press, J. R., Shrestha, K. K. and Sutton, D. A. 2000. Annotated Checklist of the Flowering Plants of Nepal. The Natural History Museum, London. Pyakurel, D. 2005. Resource Identification and Inventory of Non Timber Forest Products (NTFPs) in Panchase Area. A Report Submitted to Machhapuchhre Development Organization (MDO), Kaski, Nepal. Shrestha, K. 1998. Dictionary of Nepalese Plant. Mandala Book Point, Nepal.

Stainton, A. 1988. Flowers of the Himalaya: A Supplement. Oxford University Press. New Delhi. Watts, J., Scott, P. and Mutebi, J. 1996. Forest Assessment and Monitoring for Conservation and Local use: Experience in three Ugandan National Parks. pp 212-243. In; Recent Approaches to Participatory Forest Resource Assessment. Rural Development Forestry Study Guide 2. Carter, J. (ed.). ODI, London. Wong, W. and Jenifer, L.G. 2001. Resources Assessments of Non- Wood Forest Products: Experience and Biometric Principles. Non-Wood Forests Products Series-13. FAO.

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