Nepal is rich in non-timber forest products (NTFPs) in terms of both variety of production and trading practices. The altitudinal and climatic variations in different pockets of Nepal have greatly contributed to this rich variety. More than 7,000 different types of herbs, including more than 700 types of medicinal herbs, are found in Nepal. About 10-15,000 tons of NTFPs of around 200 varieties are traded each year. Over the last few decades, the marketing of NTFPs has gained increasing international recognition. International demand for herbs is said to be worth some US$ 420 million.
Non-timber forest products represent an important source of income for the livelihood of the poor people living in the high mountainous region. There is ample scope for Nepal to develop this sector on a commercial basis. Systematic development of this sector would greatly help enhance off-farm employment opportunities, expanding the present dimension of trade, and above all, become a source of foreign currency earnings through their exports. However, the main constraint in the development of this sector is a lack of a systematic marketing system.
Marketing plays a very significant role in the movement of products from one place to another, from one hand to another and from one country to another. Many factors like quality, quantity, price, market information and storage govern the marketing system. At present, the movement or the marketing channel of the NTFPs is very simple. The products are first collected in the jungle, which are then reached to the villages by the collectors. From here, the products head for the nearest road or the local market where wholesale traders buy or collect the products from the initial collectors. Finally, the wholesalers take the products to India. While marketing the forest products, there is no organised market at both the retail and wholesale level. Since the product is export-oriented, the retail market could have been overlapped. But the non-existence of a wholesale market in the channel is really an absurd situation. The absence of a wholesale market in the chain means there is no transparency in the trading practices, and this imperfect channel is good for no one. The greatest sufferers are the real collectors at the grassroots level and the government, too, in terms of royalty collection.
Despite the immense potential, the supply of NTFPs is inconsistent, and the quality is also low because of its disorganised and unsustainable nature of collection. Cultivation of NTFPs could smoothen out the supply lines, stabilise market prices and reduce the market share of substitute products, thereby increasing farmers? incomes.
The NTFPs are marketed internationally, and India is the main hub for products from Nepal. While the concern for quality is high, the market is unreliable. The Indian market is speculative and is controlled by cartels, and prices tend to change over a short period of time. Companies are used to getting their raw materials at very low prices, and local collectors are not organised enough to command significant bargaining power. Their margins are less than 10 per cent of the final price obtained in India. Collective marketing and forest management as well as the availability of market information would strengthen the collectors? bargaining position that could be expected only from an organised wholesale market.
For sustainable development of this sector, market transparency is a must that could be grasped only through an efficient marketing system, and a wholesale market is an indispensable part of this system.
Mere erection of market infrastructure is not sufficient for the development of a complete marketing system. The market should be well facilitated by price and a market information system. Storage and handling should also be enhanced. The market should be well regulated by a team of market users such as collectors, traders, exporters and a management body.
The present harvesting system is unscientific. High prices and urgent requests from traders sometimes lead to unacceptable harvesting methods such as uprooting, which put at risk future production. Cultivation would reduce the threat of extinction for certain species. Increased dependency on the NTFPs and benefit for farmers from the NTFPs would encourage proper management and collection practices. Collective forest management could reduce premature collection and over-harvesting of high altitude resources.
Training to the farmers for the cultivation of NTFPs is highly recommended. With appropriate training and support, farmers will be able to cultivate NTFPs in a proper way that will support sustainable harvesting.
Finally, with the establishment of a wholesale market in the country, the real NTFP collector will benefit greatly. The most important advantage will be the bargaining power. The dominating power of the middlemen will be eliminated because the market information system available inside the market yard will bring awareness about the price to the collectors.
Similarly, storage facilities inside the wholesale market complex will help store the products during the peak harvesting season and maintain a continuous supply during the slack period. In addition, it will help maintain the quality of the products besides raising business profits.The Rising Nepal
