M.Sc. Forestry Agriculture and Forestry university Faculty of forestry, Hetauda, Nepal

1. Role of NTFP in poverty alleviation in Nepal
Avinash Kafle
Roll no: 5/2079-2081
M.Sc. forestry
Faculty of Forestry
Agriculture and Forestry University
August 13, 2023
A term paper presentation on Advance Natural Resource
Economics NRM-602
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2. Outline of Presentation
 Introduction
 Objectives
 Methodology
 Findings and Discussions
 Conclusion
 References
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Figure: People searching for Yarshagumba in Darchula District

3. Introduction
 The products which are derived from the forests other than timbers are
called Non-timber Forest Products (NTFPs) (Ahenkan and Boon, 2011).
They are also known as minor forest products, non-wood or secondary
forest products.
 The preliminary assessment of the existing literature has revealed
that there are more than 500 species of plants which served as a
source of diverse materials such as dyestuff, tannins, essential oils,
lipids, fibers, gums/resins, etc.
 NTFPs have a significant role in sustaining rural livelihoods, poverty
alleviation, and economic growth of rural communities worldwide
(Angelsen et al., 2014).
 Collection and sale of NTFPs are a significant livelihood diversification
for the marginalized family supporting remarkably in their household
incomes (Melaku et al., 2014).
 The Government of Nepal has kept 30 species in priority list, from
which 12 are for commercial cultivation and market promotion (Subedi,
2006; DoPR, 2009).
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Fig: People cleaning lokta bark after
harvesting in kalobhir CF of Dolakaha
district

4. Contd..
 For the first time, Forest Act 1993 and the Forest Regulation 1995 which gave significant
attention to the importance of NTFPs for poverty reduction.
 In recent years, NTFPs have attracted considerable global interest due to the increasing
recognition of the fact that they can provide important community needs for improved rural
livelihood (FAO, 1999; World Bank, 2006).
 There are many local level enterprises based on NTFPs of Nepal notably those involving;
• Bamboos and canes for mat, basket, sofa, table, hanger and other decorative items.
• Daphne bark for lokta paper production, and Girardiana diversifolia fibres for allo cloth
making.
• Resin tapping from Pinus roxburghii.
• katha extraction, a dye from the heartwood of Acacia catechu.
• Paper from Sabai grass.
 Olsen (2000) estimates that from 7000 to 27,000 tons of NTFPs, with a value of US$ 7–30
million, are harvested and traded in Nepal every year. In recognizing this economic value, the
Ninth Five-Year Plan (1997–2002) recommended sustainable NTFP management for poverty
reduction.
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5. Objectives
 To identify potential NTFPs for poverty alleviation.
 To review about the role of NTFPs in poverty alleviation.
Methodology
 This review paper was prepared on the basis of information collected from
secondary data sources like relevant articles, journals, government documents,
thesis reports and internet surfing.
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6. Findings and Discussions
S.N. Geographical region Potential NTFPS for Poverty alleviation
1 Himalayan Jatamansi, Atis, Padamchal, Panchaunle, Kutki,
Yarshagumba, Silajeet, Gucchi chayau, Somlata,
Satuwa, Sunpati, Sugandhawal, Laghupatra
2 Mid-hills Timur, Tejpat/Dalchini, Chiraito, Pakhanbed, Loth
salla, Sugandha Kokila, Bojho, Rudraksha, Jhyau,
Allo, Lokta, Alaichi, Ritha
3 Terai and Bhavar Harro, Barro, Amala, Tendu, Satawari, Sikakai,
sarpagandha, Tetepati, Asuro, Gurjo, Ghodtapre,
Neem, Bet, Kurilo, Bel,
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Table 1: Major NTFPs for poverty alleviation
(Source: Jayasawal, 2020)

7.  In Nepal, about 80% of the rural population depends on the NTFPs to sustain their livelihood
as the NTFPs sub-sector contributes 5% of the national GDP out of the 15% contribution from
the forestry sector (Pyakurel and Baniya, 2011).
 ANSAB (Asia Network for Sustainable Agriculture and Bioresources) has reported that around
189,000 are employed in this sub-sector drawing between 15 to 50% of their household income
(Karki and Bhattarai, 2012; MSFP, 2014).
 Department of Forest (2016) stated that 6.56% of the royalty from the forest sector was
contributed from NTFPs.
 NTFPs sub-sector can create an opportunity for job employment and income-raising
opportunities for those local people; reducing poverty and youth migration for jobs (Karki and
Bhattarai, 2012).
 According to Government of Nepal records, indicates the growing trend in export trade of
NTFPs, increased from 3,350 tons in 1990 to 13,000 metric tons (mt) in 2010 (NPC, 2011) and
to more than 33,000 mt in 2012 (Karki, 2012; MoFSC, 2009).
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Contd..

8. Contd..
 In Nepal, there are about 150 types of NTFPs significant in international trade which are
being acknowledged for their role in sustainable development and conservation of
biological diversity (WWF, 2007).
 The export earnings from the NTFPs were estimated at between US$13 million and US$
26 million in 2010 (Karki, 2012).
 Pandit et al. (2009) found that almost a half of the household income of low income and
marginalized groups in hilly and mountain regions of Nepal came from NTFP-based
enterprises.
 A study conducted by Maharjan and Dangal (2020) in the Dolakha district reported that
99% of the people in the community were involved in NTFPs collection either for
subsistence or income; also, the people with less non-farm activities were involved more
in utilization NTFPs.
 A study done by Lamichhane et al., 2021 in Jajarkot district found that NTFPs worth of
NRs. 38,19,271.6, MAPs of NRs. 22,46,719.4, Resins of NRs. 15,72,552.2 were
collected to the national economy through royalty in the year between 2015 to 2020.
 If this districts could produce all commonly available NTFPs in large scale, then there
would be a high possibility of transforming current economy into a practical and vibrant
economy.
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9. Major Issues
 The existing methods of harvesting are extensively unscientific leading to total
devastation of NTFPs and deterioration of the habitat in many cases.
 According to Epanda et al., (2020), those who were trained have earned more income
from the commercialization of NTFPs compared to those who did not. This suggests
training should be provided to rural people on NTFPs.
 Due to inaccessible terrain, most of the NTFPs enterprises in rural areas are only involved
in raw material collection and primary processing and have to depend on improper
marketing channels.
 Provision of appropriate technical support to manage wild collection of NTFPs and
domestication where feasible is must.
 Different laws, regulations, plans, and policies were formulated but the implementation of
those policies have not been effective.
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10. Conclusion
 NTFPs play an important role in increasing rural income and poverty alleviation.
It is considered as safety net during off-farm season.
 More recently, there has been a growing interest in the economic potential of
NTFPs as their prospects in poverty reduction, raising their livelihood status and
sustainable development have been recognized.
 The promotion, domestication, effective policy on harvesting and better
processing techniques is required to ensure poverty reduction, and livelihood
improvement.
 Awareness of the value of NTFPs should be created among the rural people so that
they can utilize those resources at an optimum level being conscious of their
conservation.
 Creating a proper inventory and developing their sustainable harvesting protocol
are the current need for conserving and sustaining these highly valuable NTFP
species.
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11. References
 Ahenkan, A. and Boon, E. (2011). Commercialization of non-timber forest products in Ghana: processing,
packaging and marketing. Food Agri. and Environ, 8: 962-969.
 Angelsen, A., Jagger, P., Babigumira, R., Belcher, B., Hogarth, N.J. and Bauch, S. (2014). Environmental
income and rural livelihoods: a global comparative analysis. World Development, 64: 12-28.
 DoF (2016). Hamro Ban. Annual Report of Department of Forest. Government of Nepal, Ministry of
Forests and Soil Conservation (MoFSC), Kathmandu. Available online:
https://www.dofsc.gov.np//public/uploads/files/1593881065Hamro%20ban%20Report-20751.
 E. Melaku, Z. Ewnetu, and D. Teketay, “Non-timber forest products and household incomes in Bonga forest
area, southwestern Ethiopia,” Journal of Forestry Research, vol. 25, no. 1, pp. 215–223, 2014.
 Epanda, M. A., Tsafack Donkeng, R., Ngo Nonga, F., Frynta, D., Adi, N. N., Willie, J., & Speelman, S.
(2020). Contribution of Non-Timber Forest Product Valorisation to the Livelihood Assets of Local People
in the Northern Periphery of the Dja Faunal Reserve, East Cameroon. Forests, 11(9), 1019
 FAO(1991). Forest industry: Crucial for overall socio-economic development. Unsylva, 42, 16-24.
 Jayaswal, M.L. (2020). Experiences of the non-timber forest products (NTFP) based enterprise
development in Nepal. http://www.fao.org/3/y4496e/Y4496E10.htm
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12.  Karki, M. B., & Bhattarai, N. (2012). Enhancing the contribution of nontimber forest products in
supporting green economy and sustainable development in mountain countries. In 2012 IUFRO
Conference Division 5 Forest Products, Estoril, Lisbon, Portugal, 8-13 July 2012. Final program,
proceedings and abstracts book (pp. 35-40). IUFRO (International Union of Forestry Research
Organizations). https://www.cabdirect.org/cabdirect/abstract/20123419625.
 Lamichhane, R., Gautam, D., Miya, M.S., Chhetri, H.B. and Timilsina, S. (2021). Role of Non-Timber
Forest Products in National Economy: A Case of Jajarkot District, Nepal. Grassroots Journal of Natural
Resources, 4(1): 94-105. Doi: https://doi.org/10.33002/nr2581.6853.040107
 MoFSC (Ministry of Forest and Soil Conservation). (2009). Nepal fourth national report to the
convention on biological diversity.
 MSFP (Multi Stakeholder Forestry Programme). (2014).Services support unit (SSU), Forestry complex,
Babarmahal, Nepal. www.msfp.org.np
 Maharjan, S., & Dangal, M. R. (2020). Economic Contribution of Non-Timber Forest Products in Rural
Livelihood of Dolakha, Nepal. Open Journal for Research in Economics, 3(2).
 NPC (National Planning Commission). (2011). Three year plan approach paper (2010/11– 2012/13).
Government of Nepal, National Planning Commission.
 Olsen, C.S. and Larsen, H.O. (2000). Alpine medicinal plant trade and Himalaya and Mountain livelihood
strategies.The Geographical Journal, 169(3): 243-254. Available online:
https://www.jstor.org/stable/3451450.
 Pyakurel, D., & Baniya, A. (2011). NTFPs, impetus for conservation and livelihood support in Nepal.
WWF Nepal. Available online: https://www.researchgate.net/publication/266402744.
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