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(2014). Value Chain Analysis of Forest Products in Koshi Hill Districts of Nepal: Challenges and Opportunities for Economic Growth

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(2014). Value Chain Analysis of Forest Products in Koshi Hill Districts of Nepal: Challenges and Opportunities for Economic Growth 358 Value Chain Analysis of Forest Products in Koshi Hill Districts of Nepal: Challenges and Opportunities for Economic Growth Editors Jailab Kumar Rai Suhrid Prasad Chapagain Published by ForestAction Nepal and RRN December 2014 Publication: Value Chain Analysis of Forest Products in Koshi Hill Districts of Nepal: Challenges and Opportunities for Economic Growth Published by: ForestAction Nepal and Rural Reconstruction Nepal (RRN) © ForestAction Nepal and Rural Reconstruction Nepal (RRN) Editors: Jailab Kumar Rai and Suhrid Prasad Chapagain Authors: Suhrid Prasad Chapagain, Jailab Kumar Rai, Abhinaya Pathak, Tatyana Venegas Swanson, Alexandria Cruz, Kayla Mueller, Alexandra Henkels Diemer, and Kapil Dahal Contributors: Netra Prasad Timsina, Naya Sharma Paudel, Krishna P. Paudel, Govind Paudel, Dil Bahadur Khatri and Dipesh Pyakurel Design and layout: Sanjeeb Bir Bajracharya Language Edit: Muktinath Ghimire Photos: ForestAction Nepal, Dipesh Pyakurel, Thaneshwar Bhandari Cover photo: Rudraksha (Elaeocarpus sphaericus) Tree in Dingla, Bhojpur Back Cover photo: Rhizome of Satuwa (Paris Polyphylla Smith) in Sampang, Bhojpur Published date: December 2014 ISBN: 978-9937-2-9091-3 Book Citation: Rai, J. K. and Chapagain, S. P., (2014). Value Chain Analysis of Forest Products in Koshi Hill Districts of Nepal: Challenges and Opportunities for Economic Growth. ForestAction Nepal and RRN, Kathmandu. Chapter Citation: ……………. (Contributors)……………….., (2014). …………. title of chapter……….., in Rai and Chapagain (eds), "Value Chain Analysis of Forest Products in Koshi Hill Districts of Nepal: Challenges and Opportunities for Economic Growth", ForestAction Nepal and RRN, Kathmandu. Contents List of Tables List of Figures List of Acronyms and Abbreviations Foreword Executive Summary PART ONE: INTRODUCTION Chapter 1: The Context and Significance of Value Chain Analysis of Forest Products in Nepal 2 (Jailab Kumar Rai, Suhrid Prasad Chapagain and Abhinaya Pathak) Introduction 3 Value Chain Analysis: An Introduction to the Conceptual Linkages 4 Quantitative Aspects of Forest Resources in Nepal: An Analysis of the Trend 7 Revenue of the Forest Resources in Nepal 10 Functions of Value Chain Actors: The Context of Forest Products in Nepal 13 References 15 PART TWO: VCA OF MEDICINAL AND AROMATIC PLANTS Chapter 2: Alaichi (Cardamom): Widely Cultivated and Exported but Limited Innovations in Processing and Market Expansion 18 (Suhrid Prasad Chapagain, Abhinaya Pathak, and Jailab Kumar Rai) Introduction 19 Habit (Characteristics), Habitat and Distribution of Alaichi 20 Uses, Chemical Compositions and Conservation Status of Alaichi 22 Harvesting, Trade and Product Flow of Alaichi 23 Functions of the Alaichi Value Chain Actors 26 Economic Aspects of Alaichi Value Chain 28 Value Chain Upgrading Strategy of Alaichi 30 Summary of Alaichi Value Chain Upgrading Strategy 38 References 39 Chapter 3: Bael (Aegle Marmelos): A Plant of Multiple Economic, Cultural and Medicinal Values 41 (Suhrid Prasad Chapagain, Alexandra Diemer, Tatyana Venegas, and Kapil Dahal) Introduction 41 Habit (Characteristics), Habitat and Distribution of Bael 42 Food Properties and Uses of Bael 43 Production Processes, Product Flow and Conservation Status of Bael 45 Function of Bael Value Chain Actors 49 Economic Analysis of Bael 53 Value Chain Upgrading Strategy of Bael 58 Summary of Bael Value Chain Upgrading Strategy 67 References 68 Chapter 4: Chiraito (Swertia chirayita): Widely Cultivated and Exported Medicinal Plant in Nepal 70 (Suhrid Prasad Chapagain, Abhinaya Pathak, Jailab Kumar Rai, and Kapil Dahal) Introduction 70 Habit (Characteristics), Habitat and Distribution of Chiraito 71 Uses, Chemical Composition and Conservation Status of Chiraito 71 Trade, Demand-Supply and Product Flow of Chiraito 72 Functions of Chiraito Value Chain Actors 74 Economic Aspects of Chiraito 76 Value Chain Upgrading Strategy of Chiraito 79 Summary of Chiraito Value Chain Upgrading Strategy 84 Annexes 85 References 90 Chapter 5: Rudraksha (Elaeocarpus sphaericus): A Plant with High Economic Potential Associated with Precious and Mystical Values 92 (Abhinaya Pathak, Suhrid Prasad Chapagain and Jailab Kumar Rai) Introduction 92 Habit (Characteristics), Habitat and Distribution of Rudraksha 93 Uses, Cultivation, and Product Flow of Rudraksha Tree 94 Functions of Rudraksha Value Chain Actors 96 Market Trend and Competitive Analysis of Rudraksha Beads 98 Value Chain Upgrading Strategy of Rudraksha Beads 100 Summary of Rudraksha Value Chain Upgrading Strategy 105 References 106 Chapter 6: Satuwa (Paris Polyphylla Smith): Potential for Commercial Cultivation in Nepal 107 (Suhrid Prasad Chapagain, Jailab Kumar Rai, Abhinaya Pathak, and Kapil Dahal) Introduction 107 Habit (Characteristics), Habitat and Distribution of Satuwa 108 Uses of Satuwa: Opportunities and Challenges 109 Functions of Satuwa Value Chain Actors 110 Economic Aspects of Satuwa Rhizome 113 Value Chain Upgrading Strategy of Satuwa 115 Summary of Satuwa Value Chain Upgrading Strategy 124 References 125 PART THREE: VCA OF NON TIMBER FOREST PRODUCTS Chapter 7: Allo (Girardinia diversifolia): Innovative Technology Transfer in Crossroad for Viable Business in Mountain Regions 128 (Suhrid Prasad Chapagain, Jailab Kumar Rai, and Abhinaya Pathak) Introduction 129 Habit (Characteristics), Habitat and Distribution of Allo 130 Uses, Chemical Composition and Conservation Status of Allo 131 Trade, Demand-Supply and Supply Chain of Allo 133 Functions of Allo Value Chain Actors 134 Economic Aspects of Allo Products 138 Value Chain Upgrading Strategy of Allo 142 Summary of Allo Value Chain Upgrading Strategy 149 References 151 Chapter 8 Amriso (Broom-Grass): Widespread Cultivation Demanding for Value Addition in Processing 153 (Abhinaya Pathak, Suhrid Prasad Chapagain, and Jailab Kumar Rai) Introduction 153 Habit (Characteristics), Habitat and Distribution of Amriso 154 Cultivation, Uses, Trade and Product Flow of Amriso 155 Functions of Amriso Value Chain Actors 158 Economic Analysis of Amriso 161 Value Chain Upgrading Strategy of Amriso 164 Summary of Amriso Value Chain Upgrading Strategy 171 References 172 Chapter 9: Lokta (Daphne Bholua): Widely Commercialized but Limited Investments for Sustainable Conservation and Management 173 (Suhrid Prasad Chapagain, Jailab Kumar Rai and Abhinaya Pathak) Introduction 173 Habit (Characteristics), Habitat and Distribution of Lokta 174 Uses, Chemical Composition and Conservation Status of Lokta 174 Trade, Demand-Supply and Product Flow of Lokta 176 Functions of Lokta Value Chain Actors 177 Economic Analysis of Lokta Processing 181 Lokta Value Chain Upgrading Strategy 183 Summary of Lokta Value Chain Upgrading Strategy 193 References 194 Chapter 10: Khayar (Acacia catechu): A Plant with Potential for Multiple Economic Uses 196 (Suhrid Prasad Chapagain, Alexandria Cruz, Kayla Mueller, and Kapil Dahal) Introduction 196 Habit (Characteristics), Habitat and Distribution of Khayar 197 Wood Properties, Uses and Conservation Status of Khayar 200 Functions of Khayar Value Chain Actors 205 Economic Analysis of Khayar 210 Value Chain Upgrading Strategy of Khayar Products 217 Summary of Khayar Value Chain Upgrading Strategy 226 References 228 Chapter 11: Khote Salla (Chir Pine): A Plant Highly Potential for Multiple Commercial Uses 230 (Suhrid Prasad Chapagain, Kayla Mueller, Alexandria Cruz, and Kapil Dahal) Introduction 230 Habit (Characteristics), Habitat and Distribution of Khote Salla 231 Chemical Properties, Uses and Conservation Status of Khote Salla 233 Product Yield and Resin Tapping Methods 243 Production, Market and Trade of Resin and Turpentine 248 Functions of Khote Salla Value Chain Actors 255 Value Chain Upgrading Strategy of Khote Salla 259 Summary of Khote Salla Value Chain Upgrading Strategy 269 References 272 PART FOUR: VCA OF TIMBER AND OTHER FOREST PRODUCTS Chapter 12: Uttis (Alnus Nepalesis): Fast Growing Timber Species with High Commercial Values in Nepal 276 (Suhrid Prasad Chapagain, Tatyana Venegas Swanson, Alexandra Henkels Diemer, and Kapil Dahal) Introduction 277 Habit (Characteristics), Habitat and Distribution of Uttis 278 Properties, Uses and Conservation Status of Uttis 280 Functions of Uttis Value Chain Actors 282 Economic Analysis of Uttis 291 Value Chain Upgrading Strategy for Uttis 294 Summary of Uttis Value Chain Upgrading Strategy 305 References 306 Chapter 13: Bans (Bamboo): Economically Viable Product but Requires Innovation and Transfer of Modern Technology 308 (Abhinaya Pathak, Suhrid Chapagain, and Jailab Kumar Rai Introduction 308 Habit (Characteristics), Habitats and Distribution of Bamboo 309 Uses, Trade, Product Flow and Conservation Status of Bamboo 310 Functions of Bamboo Value Chain Actors 317 Market Dynamics of Bamboo Products 320 Bamboo Value Chain Upgrading Strategies 322 Summary of Bamboo Value Chain Upgrading Strategy 330 References 332 PART FIVE: CONCLUSION Chapter 14: Lessons, Opportunities and Challenges of Value Chain Analysis of Selected Forest Products in Nepal 336 (Jailab Kumar Rai, Suhrid Prasad Chapagain and Abhinaya Pathak) Summarizing VCA Studies 337 Gaps from the Market Analysis 339 Summary of Value Chain Upgrading Strategies 341 Exploration of Embedded Dimensions in Value Chain Analysis 346 Conclusion: Lessons, Opportunities and Challenges 348 References 351 ANNEXES Annex 1: Local Implementing Partner Organizations (LIPO) and MSFP/JV Staffs who supported in this study 354 Annex 2: List of Contributors 355 List of Tables Table 2.1: Alaichi production in Bhojpur
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