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Medicinal plants, markets, and margins in the Nepal Himalaya: trouble in paradise
| Publication Type | Journal Article |
| Year of Publication | 1997 |
| Authors | Olsen, C, S.; Helles, F, |
| Journal Title | Mountain Research and Development |
| Volume | 17 |
| Pagination | 363-374 |
| ISBN Number | 0276-4741 |
| Key Words | medicinal plants; markets; non-wood forest products; aromatic; compounds; trade; profits; prices; wholesale prices; wholesale; marketing; mountain areas; marketing; rural development |
| Abstract | Medicinal and aromatic products (MAP) are one way of increasing rural incomes through non-timber forestry. The trade in MAPs from the rural areas of Gorkha District in central Nepal to the wholesale markets in India was investigated over a two-year period. The annual trade varies from 180000 kg to 418000 kg and is currently composed of 36 products with an average collector value of 12 million Nepali rupees (US $240000). Approximately 98% of the products are exported unprocessed to India. The main people involved in the trade are collectors, road-head traders, Terai wholesalers, and Indian wholesalers. Analysis of marketing margins and price data indicates that MAP markets are imperfect: there is limited market information and poor market integration. A small number of Terai wholesalers earn excessive profits while road-head traders have very low net margins. The implications of this for developing the trade, and thus increasing collector incomes at the national level are discussed. It is emphasized that the government should focus on provision of public goods, such as dissemination of price information and developing physical infrastructure, and not direct interventions in the market. Credit facilities should be promoted, and the royalty system should be reviewed and possibly replaced with an export tax. Bans on collection and trade need to be reviewed and justified and a restructuring of current approaches is required. |
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