Shree Binayak Pimidhanda community forest lies on the far western mountainous region of Bhajang district in Nepal. The user group members of the community forest collect bark from 912 hectares of land. The forest land is managed in sustainable harvesting system which divides the area into seven blocks. Each block contains 130 hectares of land where harvesting is done annually. Due to the restriction on country policy for community forest to establish small scale industry, the user group established an industry named Malika enterprises and registered it as company. This enterprise was established with the investment of $ 12,616.70 (Exchange rate used was $1=NRs 79.26) among which 50% of the total amount was invested by ANSAB with the commitment, the invested amount was returned after five years with no interest. Although having 50% of the share, ANSAB is not involved in the executive board. ANSAB help on technical support for the production and processing of lokta. The 10,000 sheets of paper required by Nepal paper products was fulfilled by harvesting of 9500 kgs of bark from which 1500 kgs of bast (inner bark of Daphne) was produced. The current rate for the purchase of raw lokta bark is $ 0.28 per Kg (NRs. 22). The processing of 9500 kgs of bark gives annual profit of $ 757 to Malika Enterprises. This profit is converted in share to 240 households of community forestry users. The local businessman facilitates to handover the product to Nepal paper products from Malika. Subsequently the value addition work has been done by the Nepal paper products and sells to the international market.
Keywords:Daphne, Daphne bhoula, Daphne papyracea, Shree Binayak Pimidhanda community forest, Malika Enterprises, Nepal paper products, Bhajang district, Nepal