Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 1

1. Introducti on 2. Bamboo and Ratt an in Nepal

Bamboo and ratt an are important renewable Bamboo and ratt an are known as Bans and Bet in natural resources which can reduce poverty Nepali language. These play an important role in if grown and managed on a sustainable basis. the Nepalese economy. Bamboos are used in daily Bamboo and ratt an-based handicraft s and household acti viti es in the rural as well as urban furniture are getti ng increasingly popular as they areas from ti me immemorial. Baskets, mats and are att racti ve, lighter and cheaper than similar sieves are the most widely used products in Nepal. wood- based products. Bamboo and ratt an-based handicraft s can be made even in rural areas, and Bamboo-based economic acti viti es are an intrinsic are easy to transport as they are lighter than part of both the rural as well as the urban socio- the handicraft s or furniture made from wood. economic life of Nepal. The rural economy is The raw materials for bamboo products are highly dependent on bamboo resources (Karki locally available all over Nepal. Establishment of and Karki, 1996). Marketi ng of bamboo and bamboo and ratt an-based cott age industries are its products is important source of income for increasingly identi fi ed as one of the important household. For many people who are socially and means of improving the income level of the poor economically under-privileged, the income from people in Nepal. Bamboo-based mat boards, the sale of the bamboo craft s that they make has bamboo ply and parquets are very att racti ve, remained as the main source of income for their durable and considered as environment-friendly livelihood. products and have internati onal market In Nepal, bamboo craft -makers living in the Despite the paramount importance of bamboo rural areas are the major producers of bamboo and ratt an resources, only limited eff orts have products. Ethnic groups such as Dom, Bin, been made to promote this sector in Nepal. As Rajbanshi, Chepang and Rai are the major a result of low or no investment in improving occupati onal castes involved in bamboo bamboo and ratt an designs and market craft smanship. The woven products such as basket promoti on, arti sans/craft -makers are facing and sieve are major bamboo products produced problems. Bamboo arti cles which are widely by them which are used in the rural and urban used for household purposes are being gradually areas of the country. replaced by less environment-friendly materials such as plasti cs. Many of the traditi onally Similarly, ratt an is also very important source of dependent bamboo and ratt an craft -makers who livelihood for the economically and socially weaker are also socially and economically disadvantaged secti ons of the Nepalese community. These are are facing economic hardship. At present, very used as raw materials for a variety of products, the litt le work has been done on exploring market demand for which is increasing both in nati onal opportuniti es for bamboo and ratt an products and internati onal markets. Ratt an is used mainly made in Nepal. Realizing these facts, Market for making rope, furniture frame, walking sti ck, Development of Bamboo and Ratt an Products with polo sti ck, umbrella handle, basket, sport goods, Potenti al (MDBRPP) Project commissioned a study mat, wicker work, stuffi ng and packing. Apart from on Review of Developed Western Markets for conventi onal uses, they also have many medicinal Bamboo and Ratt an Commoditi es of Nepal. This values. publicati on is based on the fi ndings of the study which basically synthesizes the ideas, views and In Nepal, ratt an products are becoming informati on collected through various consultati ve increasingly popular among the urban middle and meeti ngs and review of literature. upper class consumers. Specially, the demand for ratt an furniture is increasing as it is light in weight, Review of Developed Western Markets 2 for Bamboo and Rattan Commodities of Nepal

easy to handle and comparati vely less expensive the craft -makers sell their products by themselves. than wood-based items. Although the current Someti mes the wholesaler provides the order of market of ratt an furniture is confi ned to urban specifi c products and collects them. When the areas only, the future of ratt an marketi ng in the wholesalers buy the products in bulk, they provide country is bright (Chaudhary and Paudel, 2008). advance to the craft -makers. Usually, the products are marketed through cash payment. In special Bamboo and ratt an industries play signifi cant occasions, they are also traded by exchanging with role in generati ng additi onal employment in the grains. In some cases, merchants hire the craft - country. In fact, bamboo-based local enterprises, makers for manufacturing bamboo products such especially in the mountain areas, have become as baskets and stools either by providing necessary important source of employment for both the materials or sharing the end products by 50%. rural and urban work-force (Karki and Karki, The bamboo products are also marketed in 1996). According to a study on bamboo and haat bazaar (open market). Bamboo furniture, ratt an growers, traders, manufactures and sellers basket, handicraft s and fl ooring material are the conducted by German Technical Cooperati on/ only traded products in industrial forms which Private Sector Promoti on (GTZ/PSP) in 2006 have potenti al for growth as substi tute wood i.e. in selected citi es and towns1 in relati on to the environment-friendly material and wide range of harvesti ng and producti on of bamboo and ratt an applicati ons. Due to soaring ti mber prices, the industries, the monthly turnover of the bamboo prospect of bamboo mat is also bright. enterprises ranges from Nepalese Rupees (NRs.) 5,000 to NRs. 10,000 in general and from NRs. In the markets of Kathmandu, the maximum 300,000 to even up to NRs. 500,000 in special numbers of bamboo products are handcraft ed cases (INCON, 2006). household items. Handcraft ed bamboo products account for about 75 % of the current market need. Most of the products do not require 3. Marketi ng of Bamboo and Ratt an extensive bamboo processing, and the costumers Products in Nepal are more interested in fi nal “fi nishing” followed by design, raw material, product design and 3.1. Marketi ng of Bamboo Products durability. Prices seem to have only moderate considerati on for the buyers (Shrestha, 2006). Most of the bamboo products such as mats, baskets, household accessories, and implements In the rural markets, traditi onal types of bamboo are manufactured by the local people and sold in products are sold which are bamboo basket (doko, the local markets. The marketi ng is strictly local/ dalo, tokari), mat (tati , chitra), stool, sieve (chalno) regional in nature. The nati onal market, although and winnow (nanglo). In additi on to traditi onal strong, does not receive products from the enti re bamboo products, modern products such as, region due to lack of transportati on and well glue-laminated handicraft s (temple, bangle-stand, established marketi ng. The size of annual bamboo tray, clock and others) are sold in the urban areas market in Nepal is esti mated at NRs. 1 billion like the Kathmandu valley, Birjung, Dhankuta, (approx. US $ 12 million) (Pokhrel, 2008). Biratnagar, Kakarbhitt a, Bhadrapur, Ghorahi/ Tulsipur, Dhangadi, Mahendranagar, Tansen and Selling of the products takes place usually in two other citi es. ways: one is self-marketi ng and another is sale to the shopkeepers or/and the wholesalers. Most of 3.2. Marketi ng of Ratt an Products

1 Birgunj, Malekhu, Dhading, Surkhet, Nepalgunj, In Nepal, ratt an is mainly used for manufacturing Pokhara, Biratnagar, Dharan and Dhankuta. furniture, weaving mats, sieves and baskets. Due Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 3 to their strength and great fl exibility, ratt ans are cott age enterprises in Nepal. The bamboo-based ideal for binding purposes. More than 90% of enterprises are generally involved in trading rather the total consumpti on of ratt an in Nepal is being than manufacturing and deal with traditi onal brought in from North-Eastern states of India, household and kitchen items such as nanglo, because the large ratt an is not available in Nepal. chalno, dalo, mandro, thunse, dhaki, tokari and Most of the ratt an fi rms are located in the urban others. Similarly, fl ourishing trade of modern citi es, and have low market in the rural area. handicraft s, rhizome-products and musical Only high-class families can aff ord to buy ratt an instruments has created bamboo fi rms in almost products like sofa-set and chair. Markets of ratt an all major citi es of Nepal. furniture are mainly concentrated in the urban area. In the Kathmandu valley, ratt an shops are In the case of ratt an, fi rms are located in major mostly located in the Kopundole area. The main citi es like Kathmandu, Dharan, Narayanghat, products sold in the markets are baby-carriage, Birtamod, Pokhara, Biratnagar and Nepalgunj. It cloth-stand, sofa-set, rack and chair. The marketi ng is diffi cult to sort out registered fi rms of bamboo system of the ratt an product is by cash payment. and ratt an.

3.3. Firms and Enterprises 4. World Trade Scenario of Bamboo and Ratt an Eight established traders or intermediaries are exclusively involved in the trade of bamboo 4.1. General Context and ratt an products in Kathmandu. Altogether, there are 277 entrepreneurs involved in the In the global scenario, bamboos are used in more manufacture and sale of bamboo and ratt an than 1500 ways (Lopez, 2003). With long history of products throughout Nepal (Pokhrel, 2008). There over thousand years in making bamboo products, are about 63 ratt an processors recorded in Nepal, such products have good local as well as nati onal out of which more than 25 are in the capital city and internati onal markets. Experts believe that the of Kathmandu (Chaudhary and Paudel, 2008). current value of the bamboo trade is in the range According to the Department of Cott age and of US$ 1.5 to 3 billion. China generates a very Small Industry, altogether 38 fi rms are registered signifi cant porti on of global exports. The European in the Kathmandu Valley as per the rules of the Union (EU) and the United States of America (USA) Government of Nepal (GoN). Altogether, 80 consume over 80% of the total bamboo imports bamboo and ratt an fi rms, craft -makers, craft - (Lobovikov, 2003). makers-cum-entrepreneurs, craft -makers-cum- designers, entrepreneurs, craft -makers-cum- According to a study conducted by Netherlands designers-cum-entrepreneurs, designers and Development Organizati on (SNV) in 2007, of the designers-cum-entrepreneurs have been identi fi ed current world bamboo market of US$ 7 billion/ (Annex 2). year, China has a stake of US$ 5.5 billion. The largest markets are handicraft s (US$ 3 billion), Majority of bamboo and ratt an enterprises are bamboo shoots (US$ 1.5 billion) and traditi onal small in scale and, therefore, work under the furniture (US$ 1.1 billion). Traditi onal markets umbrella of cott age industry. They are mostly cover handicraft s, bamboo-shoots, chopsti cks and family-based, and are mainly concentrated in the old-designed bamboo furniture which account for rural areas or small market centres with relati vely 95% of the market in the world. Emerging bamboo poor transport infrastructure. As bamboo craft markets are wood substi tutes such as fl ooring, making requires low capital investment and panels and non-traditi onal furniture. The growth skill, there are many family-based bamboo of the global market is expected to grow to US$ Review of Developed Western Markets 4 for Bamboo and Rattan Commodities of Nepal

15–20 billion in 2017. Non-traditi onal markets specifi es raw bamboo and ratt an, especially for are expected to claim 45% of the total bamboo use in plaited products. The second group of codes market. specifi es wood and other plant products including the bamboo. Practi cally, all available HS codes Because of its fast growth, good mechanical include other plant materials along with bamboo, properti es, low price and abundant availability, and therefore, only a limited number of HS codes bamboo is widely recognized as a promising are currently available for bamboo alone. For resource for sustainable development. However, instance, the product group 1401 (“bamboos or traditi onal bamboo culm products imported other material of a woody nature of a kind used from tropical countries only fi ll a small niche primarily for plaiti ng”) may also include other market in developed western countries. Since the plant materials such as ratt an, straw, willow, early 1990s, industrially manufactured bamboo rushes, reeds and strips of wood. This problem products, mainly from India and China, have hit is more complex with the codes for further world markets with moderate but steady growth. processed products, such as pulp, paper, fl ooring, Because of the relati vely high prices paid for roofi ng, panels, boards, composite materials and industrial bamboo products and their growing charcoal (INBAR, 2006). market share, more bamboo producing countries intend to develop modern bamboo industries for The new HS codes for bamboo are listed in Table products such as panels, paper, fabrics, charcoal 1. More accurate stati sti cal data on the bamboo and shoots (Van der Lugt and Lobovikov, 2008) trade will become available aft er the new customs codes are developed for bamboo products. Unti l 4.2. Coding of Bamboo and Ratt an Products then, only the existi ng primary data obtained through COMTRADE and secondary data from Although the importance of bamboo and ratt an other sources can be used to esti mate the current as valuable resource is widely acknowledged, the market share of bamboo products. exact scale of their trade is barely known. Tracking the internati onal trade is diffi cult because of the Table 1: New customs codes for bamboo (eff ecti ve lack of customs codes for bamboo and ratt an. since 2007) Similarly, informati on on nati onal markets is incomplete and controversial. Code Descripti on 2005.91 Bamboo shoot Globally, trade in all available products is recorded 4402.10 Bamboo charcoal 2 through COMTRADE, which uses internati onally 4409.30 Bamboo fl ooring parts agreed standard defi niti ons and product coding. 4412.10 Bamboo veneer The current standard coding system is the 4422.13 Bamboo fl ooring Harmonized System (HS) published by the World Customs Organizati on (2002). Unfortunately, only 4601.21 Bamboo mats a limited number of HS codes are now available 4601.92 Other vegetable materials of for bamboo. bamboo 4602.11 Basketwork of bamboo There are currently two groups of HS codes for 4706.30 Pulps, bamboo fi bers bamboo and ratt an (Wardle, 2003). The fi rst group 4823.61 Other paper, paperboard, with two codes only (HS codes 1401 and 4602) cellulose wadding etc. of bamboo 9401.51 Seats of bamboo 2 Common Format for Transient Data Exchange (COMTRADE) is managed by UN Stati sti cal Division. It records trade in all 9403.81 Furniture of bamboo and ratt an available products based on nati onal stati sti cs, and reports them internati onally. Source: INBAR, 2006 Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 5

5. Internati onal Marketi ng of Bamboo of bamboo and ratt an, and furniture of bamboo and Ratt an Products and ratt an (INBAR, 2009). Table 2 shows that the highest and the lowest quanti ty of bamboo and 5.1. Export Stati sti cs ratt an products exported are in 2005 and 2008, respecti vely. Nepal has been marketi ng the bamboo and ratt an products in the internati onal market since 2001. 5.2. Firms Involved in Export It exports bamboo and ratt an products mostly to Europe (UK, Italy, and France), Japan, USA, and In Nepal, fi ve fi rms are involved in exporti ng bamboo and ratt an products (Table 3). They export India. The products marketed are basketworks handicraft s, furniture/fl ooring and baskets.

Table 2: Trade database of bamboo and ratt an

Code Descripti on of product 2005 2006 2007 2008 QVQV Q V QV 460210 Basket works etc 122 133 57 81 41 84 13 67 460211 Basketwork etc. of Bamboo 0 0 0 0 0 0 3 18 460212 Basketworks etc. of Ratt an 0 0 0 0 0 0 0 0 Furniture of Bamboo and 940381 ratt an 0 0 0 0 0 0 0 0 940380 Furniture of cane 7 30 0 0 3 4 0 0 Total 129 163 57 81 44 88 16 85 Source: INBAR, 2009 *Q =quanti ty in tons, V =Value in US$’000

Table 3: List of the fi rms that export bamboo and ratt an products S.N Name of the fi rm Telephone Email 1 Sabita Internati onal Pvt. Ltd. 4242429 [email protected] 2 Multi Engineering Trade Concern 4279111 [email protected] 3 Dawn Dreams Pvt. Ltd. 4279111/4273128 [email protected] 4 CM Trading Enterprises 4426080 [email protected] 5 Himalayan Bamboo Pvt. Ltd. 4231513/4241182 [email protected] ; [email protected]

Source: Trade Promoti on Centre, 2007 Review of Developed Western Markets 6 for Bamboo and Rattan Commodities of Nepal

6. Bamboo and Ratt an Products in the Because of the relati vely low price and the ease Western Countries of producti on and use, the market for bamboo veneer in the EU is expected to grow in the next 6.1. Demand and Supply few years. Germany (70%) and Austria (20%) are the largest consumers of high-quality bamboo The popularity of bamboo and ratt an products boards used for the top layers of laminated has been increasing signifi cantly in the developed fl ooring, which is perceived as a separate product 2 western countries. Each year, these countries group. The total consumpti on (2.4 million m ) import thousands of bamboo and ratt an products amount to 0.9% of the total laminated fl ooring 2 from various developing countries. Of these, marketi ng in the EU, esti mated at 252 million m . two regions (USA and EU) represent the largest western markets, accounti ng for up to 80% of the For industrial bamboo products in the West, global bamboo trade. USA alone imports bamboo fl ooring market is sti ll the most important. Besides and ratt an goods worth US$ 300 million annually, fl ooring, new markets for industrial bamboo making it the world’s largest market of bamboo products such as veneer and panels in the West and ratt an products. The country imports 95% are developing vigorously, especially for interior of such goods, mainly fl ooring and baskets from decorati on and furniture. There are thousands China. It annually consumes as much as US$ 15 of products imported by western countries. The million worth bamboo poles and strips, and uses product group consisti ng of garden wood, fences, 30% of them in decorati ng gardens and parks gates and gazebos which are used for decorati ve in the form of garden-wood, fences, gates and purposes in gardens has a bigger potenti al for gazebos. the USA market than for the EU. It is because, the tropical appearance of bamboo products is In EU, bamboo is mostly consumed for fl ooring more highly appreciated in the USA than in the purpose. Generally, 95% of the bamboo fl ooring EU, where bamboo is perceived more as a niche is imported from China and the rest from product for specifi c purposes, for example in zoos Australia, Vietnam and the Philippines. Besides and theme parks (Von Reitzenstein, 2004). fl ooring, other industrial bamboo products, such as bamboo boards, play a signifi cant role in the 6.2. Quanti ty of Exported Products of Nepal western market. Apparently, the market for solid boards for furniture and interior applicati ons is The Trade Promoti on Centre (TPC) data shows growing, but it is expected that bamboo veneer that bamboo and ratt an products exported to the will have the biggest growth potenti al for these western market are 7,8,3,30,11,1,1 metric tons purposes (Von Reitzenstein, 2004). in 2000, 2001, 2003, 2004, 2006, 2007 and 2008, respecti vely. Figure 1 indicates that the highest EU is the main consumer of bamboo veneer, with export is in the year 2004 and the lowest in 2007 around half of world consumpti on. Germany and 2008. and Italy are the main consumers in Europe. Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 7

Figure 1. Export of bamboo and ratt an products

6.3. Quality Enhancement of Products to Meet product caused by the use of strips from diff erent the Requirement of Western Market parts of a culm is another weakness.

Nepali bamboo and ratt an products which could Beside product properti es, many other factors be marketed to the western countries include related with the producti on chain may negati vely bamboo baskets, lamp-shade, clock, sculptures, aff ect competi ti veness of the new bamboo handicraft s and furniture. However, the present products. If the bamboo industry can develop quality of these products is quite low as compared further into maturity, and overcome these to the ones marketed from China. To improve bott lenecks, industrial bamboo could become a the quality of these products, modern tools and true competi tor for hardwood in the twenty-fi rst technologies together with packaging should be century. improved in order to achieve the share in the western markets. In the same way, technology 7. Marketi ng Opportuniti es and transfer to upgrade industries capacity would be a Constraints pre-requisite for quality product development. 7.1. Opportuniti es Diversifi cati on of products such as furniture, fl ooring and bamboo mats increases the number There are numerous opportuniti es which can and choice of marketable products to western ensure bett er performance in development of markets. In the same way, the bamboo alone bamboo and ratt an, and their marketi ng at home could not be suffi cient to produce best quality and abroad. They are as follows: products in Nepal. High quality furniture can be made through the fusion of wood with bamboo • Bamboo and ratt an are renewable natural and ratt an (Pokhrel, 2008). Development of resources. Therefore, they can be used improved quality products needs to consider abundantly as raw material to manufacture quality of strips, product shrinkage, colour products. They have many possible applicati on diff erence in strips and effi cient packaging. and uses. Most of the rural communiti es like Variati ons in strips caused by the age of the culm Dom, Bin and Rajbhansi of the Terai region and part of the culm infl uence the quality of of Nepal depend on bamboo to sustain their bamboo products. For the same reason, bamboo livelihood. Similarly, the Pahari community mats shrink unevenly when drying resulti ng in living at Badikhel, Lalitpur also depends on irregular dimensions. Colour diff erence in each bamboo. Review of Developed Western Markets 8 for Bamboo and Rattan Commodities of Nepal

• Due to an abundance of human resources and western consumers, because of its rapid rich indigenous craft smanship, Nepal could growth and abundant availability. gain comparati ve advantage, provided the workforce could be trained in improving their • New industrial bamboo products, such as skill and if enterprises could be developed for fl ooring, veneer and solid boards have high processing and marketi ng. potenti al. The current market share of bamboo products is sti ll marginal compared to rival • Majority of bamboo-based enterprises wood products, but is steadily growing. are of small scale and can be started with smaller investment as compared to other 7.2. Constraints businesses. The products manufactured by these enterprises are traditi onal and easily There are also several constraints which have marketable in the local and nati onal markets. hindered smooth development of bamboo and Most of the craft -makers possess skill, to make ratt an products and their marketi ng in Nepal. They bamboo woven products, that is transferred are as follows: from generati on to generati on. • Market environment for bamboo and ratt an • In the recent years, bamboo applicati on is enterprises are determined by the general gradually changing towards high value product economic conditi on of the local market. like glue-laminated product (handicraft s), Enterprises have to be either content with rhizome, and furniture and fusion products. their limited local market, or transport their These products have gradually entered the products to the urban citi es. In order to urban market, and have good market price as expand markets, access to marketi ng networks compared to traditi onal products. and linkages is required.

• Due to their environment-friendly nature, • The demand for bamboo and ratt an products the demand of bamboo and ratt an product is increasing in Nepal, but market is sti ll in is growing in both the urban and semi-urban a disorganized state and ineffi cient. Lack of areas and even in the internati onal market. transportati on is one of the main reasons for such conditi ons. Other reasons for ineffi cient • The current world market for wood products marketi ng is lack of competi ti on among the can be considered as a very suitable analogous traders, and lack of marketi ng informati on. substi tute for potenti al market for the new industrial bamboo products, since industrial • Majority of bamboo craft -makers are sti ll bamboo products are very similar to various operati ng in a traditi onal way as sole traders wood products. Current consumers of wood or family businesses. They also lack treatment products may also be interested in buying technologies and skills to manufacture quality bamboo substi tutes in future provided their products to generate additi onal value. quality is improved. Because of the stable global demand for wood and the increasing • The majority of bamboo entrepreneurs are interest in sustainably produced ti mber, involved in trading rather than manufacturing. the potenti al market for industrial bamboo Thus, value additi on at the trading level is less products is expected to grow. than that at the manufacturing level.

• In contrast to wood, bamboo is perceived as • There is no specifi c marketi ng strategy applied an inherently sustainable resource by many by majority of the bamboo and ratt an product producers. Most producers sell their products Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 9

to household consumers as end users. Few 8. Recommendati ons producers sell their products to the secondary wholesalers to iti nerant traders. None of the • Bamboo and ratt an processing enterprises producers are directly involved in exporti ng have high potenti al to export bamboo and their products to the internati onal market. ratt an products, but they should be linked with group producti on system, and the products • The weaknesses that apply to bamboo and should be marketed in bulk quanti ty. Common ratt an commoditi es especially in developing facility centres could be potenti ally important countries are that the small and micro sectors processing and marketi ng places of bamboo in the developing countries are unreliable, and ratt an products. and are unable to meet western demands in terms of quanti ty, consistent quality and • Bamboo and ratt an products are facing delivery ti me. However, availability of bamboo competi ti on with plasti c and wooden resources in these countries and low labour products. Therefore, extensive awareness programs on the use and applicati on of cost is an advantage. The main things needed bamboo and ratt an products is urgently are enough faciliti es and conditi ons so that needed. Various exhibiti ons (nati onal the industrial products can gain the required and internati onal) and display of bamboo quality as demanded by the western markets. and ratt an products help potenti al Nepali consumers to become more knowledgeable • Many factories are semi-open, resulti ng in about the products. high temperature and humidity variati ons, while dusts get dispersed in the open space • Modern tools and technologies should be which might aff ect the quality of end products. introduced so as to improve the quality of Western markets demand use of machinery of bamboo and ratt an products. western-standards. • The producers of bamboo and ratt an • Very few products made by the Nepalese products are working individually. There is no fi rms have got trademarks and product codes. networking among them. Therefore, there Additi onally, quality of the glue or resin used is a need to organize them in group such as in many cases does not meet EU norms with producti on cooperati ves. respect to toxicity. There are not enough eff orts to understand technical knowhow, • Plantati on of large sized ratt an is urgently conti nuous market development and product needed to overcome regular supply of raw innovati on. ratt an.

• The main constraints regarding the trade of • Large number of fi rms working on ratt an product are supply of raw material, manufacturing of bamboo and ratt an products diversifi cati on of products, and market is not familiar with exporti ng procedure. So, linkages. There is a short supply of raw exporti ng orientati on training courses on material for ratt an products. Raw ratt ans exporti ng should be designed and conducted is brought in from North-East India such as for them. Meghalaya and Assam through black market. • The fi rms should also be familiarized with Furthermore, there is lack of skilled manpower bamboo and ratt an products exported from for producing ratt an products. other countries. For this, the insti tuti ons

working in the development of bamboo and ratt an sector should provide database using Management Informati on System. Review of Developed Western Markets 10 for Bamboo and Rattan Commodities of Nepal

• The government should urgently formulate enhancing effi cient marketi ng of bamboo and specifi c bamboo and ratt an policy that ratt an commoditi es of Nepal both at home and supports the fi rms to export bamboo and abroad. For instance, bamboo- and ratt an- based ratt an products in western market. enterprises can be established with smaller investment as compared to other businesses. 9. Conclusions There are many craft -makers in the country who possess skills to make bamboo and ratt an Bamboo and ratt an products have good nati onal products. More importantly, due to their as well as internati onal market. They are cheap, environment-friendly nature, the demand of environment-friendly and durable. The craft - bamboo and ratt an products is growing in both makers, designers and fi rms working in this the urban and semi-urban areas and even in the sector have limited fi nancial resources, limited internati onal market. There is high prospect of design, limited traditi onal tools and techniques, exporti ng bamboo and ratt an products to western low producti on capacity and there is lack of countries. Thus, bamboo and ratt an products can coordinati on among them. Bamboo and ratt an be a good source of income both for the country products are facing competi ti on with less and for all those who are involved in the related environment-friendly plasti c products. Only a business of bamboo and ratt an items producti on. limited number of fi rms have been exporti ng The government should formulate appropriate products in the western market. The quality of policy for development of bamboo and ratt an the products is also low as compared to Chinese sector in the country and develop mechanism to products. inform the producers and sellers about market demand and export procedures. In spite of these and some other constraints, there are also numerous opportuniti es for Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 11

References

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Van der Lugt, P. and Lobovikov M. 2008. Markets for Bamboo Products in the West. Delft University of Technology. Faculty of Industrial Design Engineering, Design for Sustainability Program. Landbergstraat 15, 2628 CE Delft , The Netherlands.

Von Reitzenstein, E. 2004. Market Survey on Bamboo Parquet in Germany. Procurement Strategies, Current Market Situati on and Market Potenti al for New Suppliers from Lati n America. University of Freiburg, Germany.

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Annexes

Annex 1: List of Organizati ons Consulted

S.N Name of the Insti tuti on Address 1 Himalayan Bamboo Pvt. Ltd. Teku, Kathmandu 2 L. Environmental Arts and Design Pvt. Ltd. Jhamsikhel, Lalitpur 3 Nepal Knot Craft Centre Kopundole, Lalitpur 4 Sharan Bet Furniture Udhyog Kopundole, Lalitpur 5 K.C. Bet Bans Udhyog Kathmandu Metro-Politan City- 35, Kathmandu Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 13 01-5531954 984123860 01- 4333349 01- 4600892 Fusion product Fusion product (Bamboo and wood) Fusion product Fusion product (bamboo and wood) Firm Bamboo Firm Bamboo Firm Bamboo , Kathmandu Kathmandu , Kathmandu , Firm Firm Bamboo Bamboo ti ti pur, Kathmandu pur, pur Municipality, Ward Number-11, Number-11, Ward pur Municipality, pur, Kathmandu pur, pur Municipality, Ward Number-6, Number-6, Ward pur Municipality, ti ti ti ti Jhamsikhel, LalitpurJhamsikhel, Lalitpur Firm Bamboo Jorpa Kir Kir Kir Kir KMC, Ward Number -34, KathmanduKMC, Ward Firm Bamboo Kathmandu Metro-Politan City (KMC), Ward City (KMC), Ward Metro-Politan Kathmandu Kathmandu Number-29, -makers, Designers, Entrepreneurs and Firms Entrepreneurs Designers, -makers, ft

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Bansbari, Kathmandu Firm Bamboo rhizome 01- 4372002 ft ft an based Cra tt and Design ft Gongabu, Kathmandu Gongabu, Firm Bamboo ft Wotu, Kathmandu Wotu, Firm Bamboo Industry Kathmandu Number-34, KMC, Ward Firm Bamboo ft ft Number -6, Kathmandu KMC, Ward Firm Bamboo

Centre Lalitpur Kopundole Firm Bamboo knot product ft ft ft Nepal Kathmandu Number-32, KMC, Ward Firm Bamboo ft ft rm Address Category Product Telephone fi ve Wood Root's Handicra Root's Wood ve ti Namuna Bamboo Cra Centre El dot Environmental Arts and Design El dot Environmental Pvt. Ltd. Industry World Vision Buddhist Handicra Vision Buddhist World Himalayan Bamboo and Handicra Himalayan Udhyog 9 Pioneer Handicra 67 Bamboo Pvt. Ltd. Himalayan Hastakala Monastery Green 8 Bamboo Pvt. Ltd. Miracle Kathmandu Teku, Kathmandu Buddhanagar, Firm Industry Bamboo Bamboo 01-410049 5 4 Cra Himalayan 2Crea 3 Handicra Kamal 1 A One Born Cra 20 21 Cra Nepal Knot 1617 Udhyog Kastha Kalatmak Buddhist 18 Trading Spark Himalayan Jorpa Udhyog Ganesh Hastakala 19 Kathmandu Ramkot, Sanepa, Lalitpur Firm Firm Bamboo Bamboo 15 10 Carving PK Wood 11 Handicra Rose Red 14 Vision Handicra Kathmandu Jyatha, Firm 1213 Centre Bindabasini Hastakala Shree Handicra Shuvam Kathmandu Tripureshor, Firm Bamboo S.N. Name of the Annex 2: List of Bamboo and Ra 2: List Annex Review of Developed Western Markets 14 for Bamboo and Rattan Commodities of Nepal 9804364519 an an an an an an an an an an an 5544227 01- an an an562366 023- tt tt tt tt tt tt tt tt tt tt tt tt tt tt -maker -makerBamboo -maker Bamboo Bamboo ft ft ft Firm Bamboo and ra Dharan Municipality, Ward Number-9, Dharan, Dharan, Number-9, Ward Municipality, Dharan Sunsari Purano Bhansar, Kakarbhita Bhansar, Purano Firm Bamboo and ra Hetauda, Makwanpur Hetauda, Firm Bamboo 9845028449 ft onal Pvt. Ltd. Kathmandu Number-9, KMC, Ward Firm Bamboo and ra ti s Industry Damak , Jhapa Firm Bamboo ft Balaju, Kathmandu Firm Bamboo and ra ft Jhapa Topgachhi, Firm Bamboo ft Cane & Bamboo Udhyog Kathmandu Tangal, Firm Bamboo and ra ti Bans Udhyogj Bet Sanepa, Lalitpur Firm Bamboo and ra ti Gyansur Sangeet tatha Hastakala Hastakala tatha Sangeet Gyansur Udhyog 3132 Centre Hastakala Bangalamukhi Bans Udhyog Bet K.C. Jhapa Bhadrapur, Kathmandu Number-35, KMC, Ward Firm Firm Bamboo and ra Bamboo rhizome 2425 Karyakram Bikash Laghu Udyam 26 Bamboo Handicra Makwanpur 27 Udhyog Bans Hastakala Palpali Kailali Dhangadhi, 28 Udhyog Sharma Bans Nigalo 29 Udhyog Bans Hastakala Shrestha 30 Palpa Tansen, Bans Udhyog Bet Laxmi Shuva Unique Handicra Nawalparasi Gaidakot, Bhadkhola, Syangja Dhankuta Bazar, Dhankuta Firm Firm Firm Firm Bamboo Bamboo Bamboo Bamboo Bamboo 075-520084 3334 Cra Bhandari Wood Bans Udhyog Bet Kala Ratna Kathmandu Number-16, KMC, Ward Firm Bamboo and ra 2223 Udhyog Hastakala Safal & Cra Gorkhali Wood Lalitpur Jawalakhel, Firm Bamboo 35 Bans Udhyog Ganesh Bet Shree Kathmandu Number-16, KMC, Ward Firm Bamboo and ra 36 Bans Udhyog Bet Surya Kathmandu Number-17, KMC, Ward Firm Bamboo and ra 37 Bans Udhyog Bet Suryodaya Balaju, Kathmandu Firm Bamboo and ra 38 Times Demand Interna 39 Tirupa 40 Bans Udhyog Lalit Bet Lalitpur Firm Bamboo and ra 41 Udhyog Furniture Bet Sharan Lalitpur Kopundole, Firm Bamboo and ra 42 Si 43 Bans Udhyog Bet Ma Ganga 44 45 Bans Udhyog Jhapa Bet Kakarbhita Bhansar, Purano Firm Bamboo and ra 4647 Balami Saroj 48 Shrestha Ramdev Krishna Sherpa Pasang Lalitpur Chyasal, Kathmandu Dakshinkali, Dolakha Charikot, Cra Cra Cra Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal 15 023-520020 01- 5530193 051-620182 an an an tt tt tt onal bamboo onal bamboo onal ti ti Tradi product Bamboo Tradi product Bamboo Bamboo and ra Fusion product Fusion product (bamboo and wood) Bamboo Bamboo Bamboo - - - - ft ft ft ft -maker, -maker, -maker -maker, Bamboo and ra -maker Bamboo and ra ft ft ft ft designer, designer, entrepreneur Designer Bamboo Designer Bamboo Rhizome cra Designer, maker cra Designer, maker cra Designer, cum maker entrepreneur Cra cra Designer, cum maker entrepreneur Designer cum entrepreneur Designer cum entrepreneur Designer cum entrepreneur entrepreneur Cra , Lalitpur , ti pur, Kathmandu pur, pur Municipality, Ward Number-6, Number-6, Ward pur Municipality, ti ti Bhadrapur Municipality, Ward Number-14, Number-14, Ward Municipality, Bhadrapur Jhapa Bhadrapur, Kir Kir Kathmandu Kapan, Number-8, Ward Entrepreneur Bamboo ft 5354 Raju Gole55 Badan Shrestha Shyam Ram Shrestha Shree 56 Pradhan Sanjaya 5758 Rai Rojan Kirat Vijaya 59 Kathmandu Budhanilkantha, Bas Bahadur Pahari Gundu, Bhaktapur60 Babarmahal, Kathmandu Rai Gokul 61 Designer Gopal Pahari 62 Badikhel, Lalitpur Sunsari Itahari, Bamboo Okhaldhunga Number-3, Ward Lal Pahari Santa Designer63 Designer K.C. Bharat Bamboo Kusun Bamboo Designer Kathmandu Thapathali, Badikhel, Lalitpur Bamboo 9803980246 Designer 9841432611 Kaski Pokhara, Bamboo rhizome 64 Lisu Chand65 Manandhar Kebal 66 Gan Bahadur Thapa Magar67 Golden Handicra Kakarbhita Bhansar, Purano Birgunj Matha, Alakhiya Jhamsikhel Lalitpur 50 Sigdel Prakash 51 Nhucche Bahadur Balami52 Rana Rohini Lalitpur Kopundole, Rupandehi Bhairahawa, Cra 49 Mahat Kanchan Balaju Chowk, Kathmandu Cra Review of Developed Western Markets 16 for Bamboo and Rattan Commodities of Nepal an an an an an an an 4342788 an an an an an 9858021984 9851044201 tt tt tt tt tt tt tt tt tt tt tt tt Ra -maker -maker Ra -maker, Ra ft ft ft entrepreneur Cra an Furniture Kathmandu Naxal, Firm Ra tt onal Ra onal ti 7071 Udhyog Bet Kathmandu 72 Bans Udhyog Madan Bet 73 Udhyog Milan Bet 74 Udhyog Bet Supreme 75 Furnishing Centre Kailash Kathmandu Number-35, KMC, Ward 76 Bans Udhyog Bet Krishna Balaju, Kathmandu77 Bans Udhyog Bet Resunga 78 Shahi Surendra Firm79 Singh Pyare Lalitpur Kopundole, Kathmandu Number-35, KMC, Ward Kathmandu Number-16, KMC, Ward Ranjit Das80 Rupandehi Butwal, Nepalgunj, Banke Bhanu Adhikari Ra Firm Firm Firm Kathmandu Lazimpat, Ra Ra Firm Kathmandu Shorakhute, Ra Firm Lalitpur Lalitpur Kopundole, Kopundole, Firm Ra Ra Entrepreneur Ra Ra Cra Cra 6869 League Camp Communist Young Interna Dibya Balaju, Kathmandu Entrepreneur Bamboo Review of Developed Western Markets for Bamboo and Ratt an Commoditi es of Nepal

Market Development of Bamboo and Ratt an Products with Potenti al (MDBRPP) Project Department of Forest Research and Survey Kathmandu, Nepal

December, 2010 Published by: Market Development of Bamboo and Ratt an Products with Potenti al (MDBRPP) Project Department of Forest Research and Survey Ministry of Forests and Soil Conservati on Government of Nepal

Copyright: © 2010 MDBRPP/DFRS Reproducti on of this publicati on for educati onal and other non-commercial purpose authorized, provided the source is fully acknowledged.

Cover Photo: From left : Flower vase, Flooring, Decorati ve items (London Bridge), Handicraft (Bouddha Stupa)

Citati on: MDBRPP/DFRS.2010. Review of Developed Western Markets for Bamboo and Ratt an Commoditi es of Nepal. Market Development of Bamboo and Ratt an Products with Potenti al (MDBRPP) Project, Department of Forest Research and Survey, Kathmandu, Nepal.

Department of Forest Research and Survey P. O. Box 3339, Kathmandu, Nepal Tel: 00977-1-4220482/4233510 Fax: 00977-1-4220159 E-mail: [email protected] Foreword

Bamboos and ratt ans are valuable non-ti mber forest products. They have wide and diverse use in Nepal. Their products such as furniture, handicraft s and household items are increasingly becoming popular among consumers for being cheap, durable, handy and att racti ve. In additi on, the products are considered as environment-friendly, and have good internati onal market. However, marketi ng of bamboo products are not well developed in Nepal. Enough eff orts have not been made to understand technical knowhow, conti nuous market development and product innovati on. This has hampered the development of bamboo and ratt an products in the country.

Although, potenti al of western market for Nepalese bamboo and ratt an products has been recognized, no concrete eff orts have been made to explore such market. For this reason, the Market Development of Bamboo and Ratt an Products with Potenti al Project (MRBRPP) under the Department of Forest Research and Survey (DFRS) recently commissioned a study on Review of Developed Western Markets for Bamboo and Ratt an Commoditi es of Nepal. This publicati on briefl y describes the background of bamboo and ratt an resources in Nepal, gives general accounts of the relevant policy documents, elaborates the marketi ng of bamboo and ratt an at home and abroad, and discusses world trade scenario related to bamboo and ratt an products. It further deals with status of bamboo and ratt an in the western markets, with supplements of export status of Nepal and its potenti al bamboo and ratt an products appropriate for western markets. Moreover, it identi fi es major constraints and opportuniti es related to western markets for bamboo and ratt an commoditi es of Nepal, and recommends ways to grab such markets.

I would like to thank Community Forestry Research and Training Centre, Private Limited for successfully conducti ng the study. I would also like to take the opportunity to thank Mr. Prakash Mathema, Deputy Director General of the DFRS together with Mr. Hasta Bahadur Thapa and Mr. Buddi Sagar Paudel, Research Offi cers of the DFRS and Component Leaders of the MRBRPP Project for their unti ring and enthusiasti c contributi ons. My thanks go to Mr. Dhananjaya Lamichhane, former Component Leader of the MDBRPP Project for his contributi ons to the study on which this publicati on is based. I also express my thanks to Mr. Prayag Raj Tamrakar, former MDBRPP Project Team Leader for initi ati ng and providing guidance to the study team. Thanks also go to Mr. Shashindra Lal Singh, who as an editor, contributed to bring the study report in a publishable form.

I hope that this report would help in providing useful informati on to professionals, entrepreneurs, academicians, students and others interested in bamboo and ratt an.

Sahas Man Shrestha Director General Department of Forest Research and Survey Table of Contents

Foreword

1. Introducti on 1

2. Bamboo and Ratt an in Nepal 1

3. Marketi ng of Bamboo and Ratt an Products in Nepal 2 3.1. Marketi ng of Bamboo Products 2 3.2. Marketi ng of Ratt an Products 2 3.3. Firms and Enterprises 3

4. World Trade Scenario of Bamboo and Ratt an 3 4.1. General Context 3 4.2. Coding of Bamboo and Ratt an Products 4

5. Internati onal Marketi ng of Bamboo and Ratt an Products 5 5.1. Export Stati sti cs 5 5.2. Firms Involved in Export 5

6. Bamboo and Ratt an Products in the Western Countries 6 6.1. Demand and Supply 6 6.2. Quanti ty of Exported Products of Nepal 6 6.3. Quality Enhancement of Products to Meet the Requirement of Western Market 6

7. Marketi ng Opportuniti es and Constraints 7 7.1. Opportuniti es 7 7.2. Constraints 8

8. Recommendati ons 9

9. Conclusions 10

References 11

Annexes Annex 1: List of Organizati ons Consulted 12 Annex 2: List of Bamboo and Ratt an based Craft -makers, Designers, Entrepreneurs and Firms 13

Department of Forest Research and Survey P. O. Box 3339, Kathmandu, Nepal Tel: 00977-1-4220482/4233510 Fax: 00977-1-4220159 E-mail: [email protected] Review of Developed Western Markets for Bamboo and Rattan Commodities of Nepal

December 2010

Market Development of Bamboo and Rattan Products with Potential (MDBRPP) Project Department of Forest Research and Survey Kathmandu, Nepal