B

National Strategy for the Development of Non-wood Forest Products in Bhutan

December 2008 20 08-2 018

Social Forestry Division, Ministry of Agriculture, Agriculture, Royal Government of Bhutan

December 2008

Foreword From the Honorable Minister The Royal Government of Bhutan has identified the development of NWFPs as a major activity for reducing poverty and as a means of achieving economic growth for the country. The NWFP resource of Bhutan is rich and NWFPs are an important element in the daily household activity in Bhutan. The development and marketing of NWFPs has the potential to make a significant contribution to the livelihoods of local communities. The process of Bhutans accession to World Trade Organization (WTO) and the recent opening up of the country to foreign direct investment (FDI) have led to initiatives for the exploration of high value, low-volume commodities in which the country has a comparative advantage. To meet the targets set out in the Millennium Development Goals (MDG) and to meet the economic hopes of the people will need every resource available. One of the important resources is the NWFPs which have an intricate link with rural economics. I am proud that the Social Forestry Division has come up with such an effort to develop the National Strategy for NWFP development in Bhutan which gives direction to all stakeholders for promoting NWFP use in the country, and also targets poverty reduction, while ensuring the sustainable management of the resource base. The Ministry of Agriculture would like to thank the different organizations for contributing to the development of the National Strategy for NWFP development in Bhutan and also the supporting organization (SNV/WWF) for the technical and financial support in developing the National Strategy document.

Tashi Delek!

(Dr. Pema Gyamtsho) Honorable Minister Ministry of Agriculture

Acknowledgements Non-wood Forest Product (NWFP) development is a crosscutting issue of different fields, including policy and legal frameworks, NWFP resource management, marketing and trade, research and capacity building/training. Therefore this National Strategy for the Development of NWFPs in Bhutan draws on the contributions of many stakeholders from different backgrounds. Foremostly, our sincere thanks and gratitude go to His Excellency, Lyonpo Dr. Pema Gyamtsho, who strongly encouraged the development of this strategy. Our thanks also go to Mr. Karma Dukpa, Director of the Department of Forests and the NWFP working group (consisting of: Prabhat Kumar Mukhia, SFD; Sonam Peldon, SFD; Pema Wangda, RNR-RC Yusipang; Galey Tenzin, AMS; Ashit Chhetri, NRDCL; Phurba Wangchuk, ITMS; Hans Beukeboom, Helvetas; and Marianne Meijboom, SNV) and chaired first by Dr. D. B. Dhital, CFO Forest Resources Development Division and later by Chado Tshering, CFO Social Forestry Division, for the overall coordination and guidance in drafting the strategy. The preparation of this strategy started at the end of 2007 when the national mandate for NWFP development was still under the Forest Resources Development Division; this mandate shifted in July 2008 to the Social Forestry Division. A first draft of the strategy was developed by Mr. Sonam Tobgay, a national consultant with financial support from SNV, the Netherlands Development Organization. This draft was presented and discussed in a workshop in which about thirty-one people participated. The draft was further developed and discussed in several smaller meetings with major contributions from Dr. Sangay Wangchuk, Director-SAARC Forestry Centre; Mr. Sangay Chewang, Chief Marketing Officer, Agricultural Marketing Section; Dr.D.B Dhital, Chief Forestry Officer, Forest Resources Development Division; Gopal Mahat, Chief Forestry Officer, Forest Protection and Utilization Division; Dr. Sonam Wangyal Wang, Chief Forestry Officer, Nature Conseration Division; Lobzang Dorji, Chief Forestry Officer, Thimphu Division and K.B.Samal, Chief Forestry Officer, Trashigang Division. The report was finalized by Marianne Meijboom, Non-wood Forest Specialist, SNV. Finally our special thanks go to SNV for funding the advisory services to develop this strategy and to WWF for the publication of this document. Also our thanks go to Ms. Philippa Franks for editing this strategy document.

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TABLE OF CONTENTS ABBREVIATIONS INTRODUCTION I BACKGROUND 1.1 1.2 1.3 II 2.1 2.2. 2.3 2.4 2.5 III 3.1 3.2 3.3 3.4 3.5 3.6 What are Non-wood Forest Products (NWFPs)? NWFP development in the 10
th

IV 1 1 2 3 4 4 4 7 12 16 21 24 24 25 27 28 30 32 34 36 45 46 Five Year Plan

Vision and goals for NWFP development CURRENT STATUS OF NWFP DEVELOPMENT IN BHUTAN Legal framework Organizations & institutions working in the field of NWFPs NWFP Resource Management in Bhutan Marketing and trade Research and development STRATEGIC PLAN FOR 2008-2018 Strategic plan: Legal framework Strategic plan: Organizations & institutions Strategic plan: Capacity building Strategic plan: Management of NWFP Resources Strategic plan: Marketing and Trade of NWFPs Strategic plan: Research of NWFPs

REFERENCES APPENDIX 1: PRIORITY SPECIES AND THEIR DISTRIBUTION APPENDIX 2: LIST OF MEDICINAL PLANT SPECIES CULTIVATED BY THE INSTITUTE OF TRADIONAL MEDICINE AND SERVICES APPENDIX 3: LIST OF NWFPS WITH EXPORT POTENTIAL

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Abbreviations AMS ANSAB BAFRA BCCI CBNRM CITES CFs CFMG CNR CORRB CPR DFO DoF EODP EPC EU FAO FCB FDCL FIMS FMU FNPP FPUD FRDD FYP GEF ICIMOD IDRC IFAD INDOCERT IPR ITMS MAP MEA MTI NBC NFRP NCD NGO NPPC NRDCL NMC NWFP PM PPD PRU REDP RECOFTC RGoB RNR SFD SNV UNDP UWEFI WWF Agriculture Marketing Services Asian Network for Sustainable Agriculture and Bioresources Bhutan Agriculture Food and Regulatory Authority Bhutan Chamber of Commerce and Industry Community Based Natural Resource Management Convention for International Trade of Endangered Species Community Forests Community Forest Management Group College of Natural Resources Council for Renewable Natural Resources Research in Bhutan Common Property Resources Divisional Forest Officer Department of Forest Essential Oils Development Program Entrepreneurship Promotion Center European Union Food and Agriculture Organization Food Corporation of Bhutan Forest Development Corporation Limited Forest Information Management Systems Forest Management Units Food and Agriculture Organization and Netherlands Partnership Program Forest Protection and Utilization Division Forest Resource Development Division Five Year Plan Global Environment Facility International Centre for Integrated Mountain Development International Development Research Center International Food and Agriculture Development Indian Organic Certification Agency Intellectual Property Rights Institute of Traditional Medicine and Services Medicinal and Aromatic Plants Ministry of Economic Affairs Ministry of Trade and Industry National Biodiversity Centre National Forestry Research Program Nature Conservation Division Non-Governmental Organization National Plant Protection Centre Natural Resource Development Corporation Limited National Mushroom Center Non-wood forest products Park Manager Policy and Planning Division Pharmaceutical Research Unit Rural Enterprise Development Program Regional Community Forestry Training Center for Asia and Pacific Royal Government of Bhutan Renewable Natural Resources Social Forestry Division Netherlands Development Organization United Nations Development Program Ugyen Wangchuk Environmental & Forestry Institute World Wildlife Fund for nature

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Introduction Non-wood forest products (NWFPs) play an important role in the daily lives and overall well-being of the Bhutanese people especially among the rural farming community; for instance they are a major source of off-farm income, food, medicinal and aromatic products, fodder, fiber, and also used for local construction materials. NWFPs often are a safety net for poor people in the off-farm season and/or whenever needed as a food security measure. NWFPs offer a lifeline for many rural Bhutanese households. Poorest of the poor and landless turn to the Common Property Resources (CPR) in forests and elsewhere for the materials and produce with which to make a living and often it is NWFPs. Women have been doing this since time began, using a host of forest products for handicrafts, dyes, waxes, tools, clothing, medicines, food and fodder. Of the countrys total land area, 72.7% (Energy and Resource Institute, 2008) is under forest cover. Only 8% of the land area is suitable for agricultural production and with 69%1 of the population living in rural areas, NWFPs have a great potential for income generation for the poor living in remote areas in Bhutan. At present several case studies have demonstrated that NWFPs can contribute to income generation while managing the resources in a sustainable manner. However, the potential needs further consolidation and realization to provide local people with a stepping stone out of poverty. Recognizing the present situation, this strategy has been developed with the aim of contributing to poverty reduction through NWFP development while ensuring that the NWFP resources are managed on a sustainable basis. This document is divided into three parts: Part 1 provides background information and describes the vision and goals, Part 2 provides information about the current status of NWFP development, and lastly Part 3 deals with NWFP development strategies.

Background

Bhutan has a population of 635,000 of which 69.1% is living in rural areas (Office of the Census Commission, 2005). According to the poverty analysis report of 2007, on average 23.2% of the Bhutanese live under the poverty line2 with a higher incidence in rural areas (between 29.0% to 32.9%). Poverty is most prevalent in Samtse, Zhemgang, Mongar, Lhuentse and Samdrup-Jongkhar Dzongkhags. The poor typically rely on subsistence farming with limited income and employment opportunities (National Statistics Bureau, 2007). Bhutans mountainous topography severely limits the amount of land suitable for agricultural production. With almost 70% of its population living in rural areas, forest resources, including NWFPs, form a major source of peoples livelihoods. This is also reflected in the private sector. Employment in the private sector is mainly generated in the manufacturing sectors. In 2003, 17% of registered enterprises were

See www.moa.gov.bt 2 Households consuming in real terms less than the total poverty line of Nu. 1,096.94 per person per month are considered poor.

based on agricultural products, whereas some 46% were forest-based (Tashi Wangyal, 2005). Bhutan is rich in biodiversity including NWFPs. The country has proven a haven for a wide array of NWFPs and to date more than 600 medicinal plants3, 97 mushrooms, 97 fruits and nuts, 34 bamboos, 14 canes, 25 oil/resin species, 20 spices, 38 fibres, 70 ornamental plants, 181 fodder species, 36 dyes, 12 food crops (yams) and 77 forest vegetables have been identified and described (Forest Resources Development Division, 2006). The scientific names of many more NWFP species are still unknown. At the household level NWFPs are used mainly for subsistence purposes as well as for the local market. Numerous case studies have shown the potential of NWFPs for income generation. According to Renewable Natural Resource (RNR) Statistics 2000, about 42% of households in the country use bamboo resources for a variety of purposes, while about 21% of households are engaged in harvesting mushrooms from the wild, and 38.6% of households are involved in fern top harvesting during summer months (Ministry of Agriculture, 2000). Farmers from Mongar, Lhuentse, Trashigang, and Trashiyangtse earned an income worth Nu. 51,247,045 over a period of 10 years (1994-2004) from the sale of lemon grass oil according to reports from Essential Oil Industry of Bhutan (Dorji Wangdi and Galey Tenzin, 2006). In Bjoka, Zhemgang Dzongkhag a study revealed that 66% of the monetary income was derived from bamboo and cane products (Moktan, et al., 2004). The Laya communities located at 3,700 meters above sea level are semi-nomadic pastoralists with income from a variety of activities, including: 12% of income from yak husbandry, 8% from agriculture, 14% from incense making, and 50% of their income is derived from the collection and sale of Cordyceps sinensis (Namgay, et al, 2007). Also case studies have shown the economic importance of NWFPs in the past: on average Chirata (Swertia chirayita) contributed to 42% of the household cash income of Shingkhar Lauri farmers in 1996-97 (Pradhan et al, 1998) and star anise (Illicium griffithii) provided a good cash income for farmers in Yabrang in Trashigang Dzongkhag and Aja Nye in Mongar Dzongkhag (Mukhia et al., 2006). Furthermore, the community of Wamanang (97 households) in Trashiyangtse Dzongkhag could potentially generate more than Nu. 500,000 from Borinda grossa products (Dorji and Tenzin, 2007). 1.1 What are Non-wood Forest Products (NWFPs)?

Internationally the FAO definition (1999) is generally used to describe NWFPs: "NWFP consist of goods of biological origin other than wood derived from forests, other wooded land and trees outside the forest". In Bhutan NWFPs are defined in the Forest and Nature Conservation Rules (2006) as: that constituting resin, varnish, katha, kutch, plants, flowers, seeds, bamboo, bulbs, roots, fruits, leaves, barks, grasses, creepers, reeds, orchids, cane, fungi, moss, medicinal plants, herbs, leaf-mould, or other vegetative growth, whether alive or dead; wild animals (including fish) and parts or products of wild animals, including the skin, hide, feather, fur, horn, antler, tusk, bone, bile, musk, honey, wax and lac, insect; and boulders, stone, sand, gravel, rocks, peat and soil. (RGoB, 2006)

Of which 267 or 85% of the species are collected for ingredients in traditional medicine by ITMS.

1.2

NWFP development in the 10th Five Year Plan

NWFP development figures prominently in the 10th Five Year Plan (FYP). In line with the Royal Governments theme of Poverty Alleviation, the strategic framework states in the main document of the 10th Five Year Plan (Gross National Happiness Commission, 2nd draft 2008): Establishment of Community Forests and expansion of commercial harvesting of NWFPs. Within this strategic framework under the policy objectives for the RNR sector, the strategic initiative related to NWFP development is: Strengthening agriculture marketing mechanisms to expand local markets for primary products and enhance exports of NWFPs and other low-volume and high degree of specialization, standardization and certification. One of the major RNR targets is: At least 70 farmer groups established for NWFP production and commercialization. NWFP development is further described in sub-program 2.3 of the draft Forest Sector Plan. This sub-program is expected to make a significant contribution in the sustainable utilization of NWFP resources and greater peoples participation in their management (see Box 1). Box 1: NWFP sector plan The NWFP sub-program will be implemented in Forest Management Units (FMUs), Protected Areas, Community Forests and other areas outside FMUs. According to this sub-program, the following activities will be undertaken in order to sustain the resource base and income from NWFPs (Forestry Sector 10th FYP; second draft 2008): Development of methodologies for assessing the NWFP resources that best suit our local conditions and are also implementable, Development of management guidelines for prioritized NWFPs and the training of field staff and local communities in managing these NWFPs. Problems and opportunity analysis for harvesting NWFPs. This will include issues such as ecology, distribution, production level, community use rights and resource management and marketing practices. Development of a national strategy for sustainable management of NWFPs Piloting of locally adapted NWFP management regimes; Marketing support for NWFP enterprises; Capacity building of extension agents to support management of NWFPs; Review of the Forest and Nature Conservation Rules to ensure that they support sustainable utilization of NWFPs. The program will be implemented in a number of different agro-ecological zones and by a number of agencies, including FRDD, RNR-RCs and AMS. However, NWFP management will be community-based within the framework of community forestry programs with proper technical guidelines and management prescriptions. The NWFP program will be implementated and coordinated by the Social Forestry Division, Department of Forests.

1.3

Vision and goals for NWFP development

The vision statement reads as follows: Enhanced rural livelihoods and economies through optimal utilization of NWFP resources at community, local and national level through sustainable management and commercialization of NWFPs. The overall objectives are geared towards the development and safeguard of NWFPs in the country by empowering grass root communities by optimizing the flow of local and national benefits from commercialization, management and sustainable utilization of NWFP resources. Goals for NWFP development include the following: 1. Sustainable NWFP development to improve rural livelihoods and income generation. 2. Strengthening linkages and coordination between/among major NWFP stakeholders, including the improvement of collaboration between institutions. 3. To develop and promote prioritized NWFPs along the entire value chain from the collection in the wild to the final sale, with emphasis on rural livelihood and income security.

II

Current status of NWFP development in Bhutan

NWFP development is related to and depends on many aspects from different disciplines. Therefore Part II is divided into a number of chapters dealing with the current status of NWFP development related to the legal framework (2.1), the organizations and institutions working in the field of NWFPs (2.2), NWFP resource management (2.3), Marketing & Trade (2.4), and Research (2.5). Each chapter first describes the situation followed by a paragraph on the challenges currently faced. 2.1 Legal framework

Bhutans forest policies strongly favour the conservation and sustainable management of natural resources. For instance, the Constitution of Bhutan under Article 5 Section III has explicit provisions to maintain a minimum of 60% forest cover at all times and is dedicated to the conservation and sustainable utilization of the countrys natural resources. The Ministry of Agriculture is the main agency involved with the formulation of rules and regulations, policies and administration of the forestry sector. The Department of Forests (DoF) sets policies and guidelines for forestry management (including NWFPs).

2.1.1 Policies supporting NWFP development There are a number of policies relevant to NWFP development, including the National Forestry Policy (1974), the Forest and Nature Conservation Act (1995), the Biodiversity Act of Bhutan (2003) and the Forest and Nature Conservation Rules of Bhutan (2006). The National Forest Policy 1974 pays particularly attention to conservation and made it mandatory to maintain 60% of the land area under forest cover. This policy outlines the protection of land, including forest soil, water resources and biodiversity. The policy emphasizes the elimination of shifting cultivation to prevent forest degradation and to maintain soil fertility. Watershed management and the restoration of denuded and barren hills are accorded high priority. The policy contains objectives related to forest conservation, afforestation, resource survey, forest utilization programs, wildlife and recreation, forest administration and training, investment, forest revenue, research and publicity and forest law. This policy of 1974 is under review at present. Under the Forest and Nature Conservation Act of 1995, the Ministry of Agriculture stipulates the requirement of a management plan prior to any commercial forestry activity, and provides rules for Social Forestry and Community Forestry. Section 2 of the Act outlines NWFPs under definition of the forest produce (trees or part of trees, wild plants or produce including bamboos, and canes, and medicinal plants fungi and herbs). Accordingly, the commercial harvesting of edible forest produce is to be permitted based upon resource availability and an approved management plan. The management plan according to Section 5 should provide information such as, description of areas, their resources, uses, role of biological diversity of Bhutan, management regimes required for protection and sustainable utilization of the resources, and an assessment of the environmental and socio-economic impact of the proposed regime. The Biodiversity Act of Bhutan, 2003 mentions safeguards on the genetic resources of the country especially in terms of bio-prospecting and export of genetic resources. One of its main objectives is to ensure national sovereignty over genetic resources in accordance with relevant national and international laws. It focuses on the protection of traditional knowledge, Access Benefit Sharing and bio-prospecting. The Forest and Nature Conservation Rules, 2006 provide the legal framework for the sustainable management of timber and NWFP resources. The rules reiterate that an approved management plan, including a resource availability assessment, is required before commercial utilization of forest products can take place. With regard to Community Forestry, the rules state that a group of at least ten households willing to establish, control, and manage a forest area (for wood or NWFPs) as a Community Forest, in accordance with a number of requirements, can form a Community Forest Management Group (CFMG). The size of the Community Forestry area depends on the area available in and around the villages of the group with a maximum of 2.5 ha per household. This size can be exceeded for the management of NWFPs, according to the availability of land. The CFMG is authorized to manage the community forest in accordance with a management plan approved by the Department of Forests. Under Chapter V Rule 54 (1), trade and transit of NWFPs are allowed provided valid permits are secured from the Divisional Forest Officer (DFO) or the Park Manager

(PM) if they are within protected areas. Royalty rates for NWFPs are waived for domestic purposes (other than items covered in Schedule I of the Act), however, for commercial purposes a nominal royalty is levied (Rule 112 Section 1 and 2). The collection of medicinal and aromatic plant species is limited to a requisition from the Institute of Traditional Medicine and Services (ITMS), only upon receipt of which the registered collectors are sanctioned approval. Harvest of NWFPs has to be accompanied by written permits and approval from either the DFO or PM. Import and export of NWFPs are regulated by centralized control requiring approval from the head of the Forest Department. The Forest and Nature Conservation Rules, 2006 will be refined in the coming year and will better accommodate the implementation of Community Forestry and the development of NWFPs. In the case of commercial purposes (imports and exports), permit approvals must be obtained from the DFO with final approval from the Department of Forest or the Ministry of Agriculture. Such a requirement applies to non-Community Forests areas, while members belonging to a Community Forest, are guided by the management plan and its bylaws. Import of NWFPs is also guided by these Rules whereby an importer must obtain official approval in the form of a written import permit from the Department of Forest through either the DFO or the PM. Similarly, in the case of exports, only the Ministry of Agriculture decides on the export of any items of NWFP from government reserved forests. For instance, in 1998, the government banned the export of all medicinal plants and it was only ten years later (until 2008), when export of chirata, pipla, and Rubia cordifolia was allowed. NWFPs which are from private land/private forest/nursery are also allowed to be exported but must be accompanied by proper transit permits and must satisfy export regulation requirements of both Ministry of Agriculture and Ministry of Economic Affairs. For example, no exports are permitted without the export certification issued by Bhutan Agriculture and Food Regulatory Authority (BAFRA) and an export license issued by the Department of Trade, Ministry of Economic Affairs.

2.1.2 Challenges faced in the legal framework Policies and plans in the forestry sector including NWFPs have evolved from the start of the development process in the country in 1961. Regulations pertaining to NWFPs are still based on conservative policy outlook. The strict and sometimes cumbersome regulations and procedures for harvesting forest products for commercial purposes have discouraged people from harvesting these products. The manufacturing of incense provides a valid example. The incense industry uses more than 40 herbs and aromatic plants as ingredients for manufacturing incense sticks. Although 90% of these species grow and are available in Bhutan, the industry obtains 80% of these species from India because of the cumbersome, time-consuming process for getting the permits and products in time and in the desired quantities, if at all, in Bhutan (Chimmi Pelmo, 2006; Tideman, 2006). Furthermore, the current system of determining royalty rates is arbitrary and the rates remain fixed until the rules are changed. For example the high royalty rate for Matsutake mushrooms leads to illegal harvest and many collected mushrooms remain unrecorded. Also the royalty rate of e.g. Rubia cordifolia needs revision as it is currently more than 50% of the market value.

Public participation is vital for sustainable NWFP management and marketing. Yet womens involvement in the formulation, planning, and execution of policies regarding forestry (and NWFPs) remains low at all levels.

2.2.

Organizations & institutions working in the field of NWFPs

Recognizing the utilization potential of NWFPs for food and income security and sustainable forest management, a wide range of institutions and organizations (including Government institutions, Non-Government Organizations (NGOs), donors, foundations, and the private sector) have taken responsibility and are involved in NWFP development in the country. 2.2.1 Government agencies Government agencies that are involved in NWFP development include: Department of Forests, including: o Forest Protection and Resource Utilization Division (FPUD) Co-ordination of all territorial division activities on behalf of the Forest Directorate including NWFP management Assistance of the Head of the Department in all matters related to the Divisions and Parks o Forest Resource and Development Division (FRDD) Incorporation of NWFP management in FMU plans GIS mapping of forest areas Implementation of the National Forest Inventory Social Forestry Division (SFD) Provision of technical support and implementation of (i) private forestry; and (ii) community forestry program National mandate for NWFP development and coordination among organizations for strengthening NWFP development4 Spearheading the NWFP Working Group Development of NWFPs resource assessment and management guidelines of priority NWFPs for sustainable and meaningful utilization Promotion of NWFP development activities in Community Forests (CF) in collaboration with the Dzongkhag Forestry Officers (DzFO), Divisional Forest Officers (DFO), and Park Managers Nature Conservation Division (NCD) Species conservation and research monitoring Biodiversity inventory and management Management of national parks and wildlife sanctuaries Incorporation of NWFP management in Protected Area plans

Council for Renewable Natural Resources (RNR) Research in Bhutan (CORRB) Overseeing research programming and technology generation at the RNR- Research Centres

This mandate was held by FRDD until July 2008

Packaging of technological options for implementation by the RNR sector programmes The various research centers under CoRRB have the mandate to conduct forestry research, including NWFPs National Biodiversity Centre (NBC) Provision of framework for organizing Bhutan's biodiversity related activities Offering of mechanisms for national decision making on biodiversity concerns, cutting across sectors, divisions and institutions Provision of mechanisms to guarantee a better national balance between conservation and utilization of biological resources in general, and between in-situ and ex-situ conservation in particular Presentation of institutional and policy mechanisms to assure continuity of biodiversity related activities over time National Mushroom Centre (NMC) Increase in income, living standards and nutritional status especially of the rural population through mushroom cultivation Provision of training in mushroom cultivation and in harvesting techniques of wild mushrooms in order to sustain wild mushroom resources Agriculture Marketing Services (AMS) Development and dissemination of market information Development of marketing infrastructure and communication network Exploration, development and promotion of intra-regional and niche export markets for RNR products (fresh and processed) Promotion of value addition and agribusiness enterprises Development of market institutions and linkages between buyers and suppliers Natural Resources Development Corporation Limited (NRDCL) Identification of commercial bamboo species Plantation of bamboo estates Identification of local bamboo products for marketing Non-wood value addition through local and improved craftsmanship Institute of Traditional Medicine and Services (ITMS) Promotion of the traditional system of medicine in the country Preservation of the unique culture and traditions related to medical practice Provision of alternative medicine as complementary to the allopathic system Producion of medicines required by the traditional medical system Conduct research and quality control of medicines Provision of traditional medical services in Bhutan Ministry of Economic Affairs (formerly Ministry of Trade and Industry) (MEA)

Training in the development of knowledge and craftsmanship employing natural resources like bamboo and cane, orchids, mushroom cultivation Essential Oils Development Program (EODP) and formation of related farmer groups and cooperatives Presentation of trade policy guidelines and the promotion of bilateral and regional trade through bilateral and multilateral trade agreements (Department of Trade) Issuance of export licenses (Department of Trade) Entrepreneurship Promotion Centre (EPC) Serving as a focal point for all entrepreneurship and small business promotion activities in the small and medium enterprise (SME) sector Design and conduct of short courses to assist potential entrepreneurs to start small businesses Intellectual Property Division Facilitation of registration of intellectual property rights including company trademarks, brand names and labels

Bhutan Agriculture Food and Regulatory Authority (BAFRA) Quality control and ensuring safety standards in order to safeguard the image of products originating from Bhutan Issuance of export certification. Forestry Training Institute in Langmegonpa, Bumthang Development of NWFP curriculum Training of Forestry Officers in Bhutan College of Natural Resources (CNR) Training of RNR extension agents (including forestry) National mandate for in-service training

2.2.2 NWFP working group In April 2007, the National NWFP working group was established. The objectives of the working group are to share information and to strengthen cooperation in NWFP management, use and development. The NWFP Working Group comprises members from the following organizations: Forest Resource Development Division, Institute of Traditional Medicines and Services, National Resource and Development Corporation Ltd., RNR-RCs (Bajo, Yusipang), Social Forestry Division and Agriculture Marketing Services. The NWFP Working Group is housed in the Social Forestry Division, with the Chief Forestry Officer SFD as the Coordinator. The broad Terms of Reference of the Working Group include: o Problem and opportunity analysis for NWFPs o Review and recommendation on adoption of appropriate methodology for NWFP surveys o Review and recommendations on national strategy for sustainable management of NWFPs o Recommendations on piloting of locally adapted NWFP regimes o Exploration of market and enterprise development opportunities for NWFPs

2.2.3 Private Sector Currently there are only a few established private sector institutions involved in NWFP marketing, including 17 licensed incense entrepreneurs (Tideman, 2006), BioBhutan, mushroom exporters and a few traditional paper-making enterprises. For incense about 25 species are used as major ingredients; however 80% is sourced from India. The mushroom exporters generally export Matsutake to Japan. Traditional paper is mainly made of Daphne spp. and Edgeworthia gardneri. Bio-Bhutan is a pioneering enterprise that produces and markets natural and organic certified products from Bhutan for Bhutanese and international markets. In 2006, the enterprise obtained organic certificates for lemon grass oil and pipla from the Indian Organic Certification Agency (INDOCERT) an Indian certification agency based in Kerala. Bio Bhutan further markets Cordyceps and is exploring opportunities to promote a range of other potential food and health products including the following NWFPs: Illicium griffithii, Ruta (Saussurea lappa), Sweetflag (Acorus calamus), Chirata (Swertia chirayita), Sechuan pepper (Zanthoxylum armatum), Amla (Phyllantus emblica), and Wintergreen oil (Gaultheria sp.) (Bio-Bhutan, 2008). Other private players include those resulting from recent government initiatives towards the formation of farmers groups such as the lemon grass association in the east and the bamboo and cane growers in central Bhutan operating through community forestry initiatives. NRDCL and ITMS have forthcoming plans to further privatize and become feasible enterprises. ITMS has developed a number of commercial products including Tsheringma tea and Cordyplus. 2.2.4 NGOs, donors and foundations There are a number of NGOs, donors and foundations supporting Bhutan in NWFP development. Bilateral and multilateral development partners continue to provide both financial and technical support through projects and technical assistance. For example, the Netherlands Development Organization (SNV) provides Technical Assistance in NWFP development along the entire value chain. The Food and Agriculture Organization (FAO) supported the commodity chain analysis of high value mushrooms in Bhutan. Helvetas/SDC provides technical and financial assistance through the participatory forest management project. The International Development Research Centre (IDRC) in collaboration with SNV is supporting CBNRM activities, including action research on community-based management of a number of priority NWFPs. The Rural Enterprise Development Project (REDP) of the United Nations Development Program (UNDP) has amongst others supported the establishment of the lemon grass association, and the bamboo and cane product development. The European Union (EU) supported the Medicinal and Aromatic Plant project (MAP).

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The Tarayana foundation recently started utilizing nettle plants (Girardinia diversifolia) for the production of authentic hand woven fabric fetching attractive prices for the local producers. Candle making is another activity using local materials like natural dyes to colour the candles. Apart from the above mentioned there are other donors and NGOs such as: the Worldwide Fund for Nature (WWF), the Global Environment Facility (GEFs small grants program) and the International Food and Agriculture Development (IFAD), which are involved in promoting and developing NWFPs in Bhutan through programs and projects. In the wider region, the Asian Network for Sustainable Agriculture and Bioresources (ANSAB) and the International Centre for Integrated Mountain Development (ICIMOD) both based in Nepal, and the Regional Community Forestry Training Center for Asia and Pacific (RECOFTC) based in Thailand are other regional NGOs which have expertise in NWFP development and could provide support in further NWFP development through e.g. technical backstopping, short-term training programs, workshops and study tours.

2.2.5 Challenges faced in the organizational and institutional set-up One of the major institutional and organizational challenges for the development of NWFPs is the lack of effective cooperation and coordination among and between different organizations in terms of duties and mandates. There are many organizations involved in NWFP management and utilization. The mandates and roles of these organizations need to be clearly defined. Coordination between collectors, traders/exporters, governmental and non-governmental organizations continues to be weak. Cross-departmental and cross-ministerial coordination is crucial in order to share information, to avoid duplication of efforts and to witness a well-developed NWFP sub-sector in the country. The establishment of the NWFP Working Group has been a first step in improving information sharing and coordination but necessitates further strengthening and institutionalizing. The group currently consists of DoF, AMS, NRDCL, RNR-RC and ITMS but could be widened and further include exporters and businesses to ensure that all relevant stakeholders in NWFP management, marketing, processing and trading are engaged. Another major challenge is the need for building human resource capacity for NWFP development and management. Training of foresters should be expanded to provide greater emphasis on NWFPs and their management, production, utilization and marketing. Currently the Langmegonpa Forestry Institute works on the inclusion of NWFPs in its curriculum. Practical training should be provided for local growers, collectors and processors of NWFPs to ensure sustainable and efficient use of the resources and to increase local income levels. If NWFPs are to be managed sustainably among farmers as an effort towards income security, it is important that over time adequate human resources are available to oversee these initiatives. It is therefore necessary to start training people and building a team composed of well-qualified professionals. Training may be required at all professional levels, right from management to technical expertise to extension

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staff at the geog and community levels. The training curriculum should not only include technical aspects related to NWFP development but also include simple modules on gender concepts and tools for gender analysis to help teams work more gender sensitively, as well as including rural participatory methods such as participatory technology development. Furthermore, the private sector needs strengthening and further development in order to enhance the management, marketing, trade and product development of NWFPs.

2.3

NWFP Resource Management in Bhutan

2.3.1 Priority NWFP species In order to focus NWFP development activities, a priority NWFP list was prepared during a stakeholder meeting (held on November 16, 2007). This list is based on a number of criteria: 1. Economic criteria: export market value and local demand, income generation, bio-prospecting 2. Social criteria: job creation, poverty alleviation especially for people living in rural areas, income and food security 3. Environment criteria: positive impact on biodiversity conservation and protection of natural forest, risks of over exploitation, geographical abundance 4. Technological criteria: Difficulties or easiness in terms of technology and techniques for propagation, cultivation, processing, marketing and investment Based on the above criteria, the prioritized NWFPs have been identified as follows: (1) Wild Mushrooms Auricularia sp. (Jili namcho) Cantharellus cibarius (Sisi shamu) Lyophyllum shimeji (Ngala shamu) Rozites caperata (Dungshi shamu) Tricholoma matsutake (Sangay shamu) (2) Bamboos and Canes Bambusa sp. Borinda grossa Dendrocalamus sp. Neomicrocalamus andropogonifolius (Yula) Yushania sp. (Daew yanka) Calamus acanthospathus Calamus latifolius Plectocomia himalayana (3) Medicinal plants Aconitum heterophyllum/lacinatum (Tsendhug)

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Acorus calamus (Chudala) Cordyceps sinensis (Yartsa guenbup) Illicium griffithi Phyllanthus emblica (Umla) Picrorhiza scrophulariifolia (Hong-len) Swertia chirayita (4) Aromatic plants (in order of importance to the incense industry) Juniperus squamata/pseudosabina (shup) Ephedra gerardiana (Tshe) Rhododendron anthopogon (Balu) Rhododendron ciliatum (hairy leaf) Rhododendron setosum (Sulu) Selenium vaginatum (Tang-kuen) Nardostachys grandiflora (jatamansi, pangpoi) Inula racemosa (Manu) Cinnamomum tamala (Shintsa, Teespata) Tanacetum nubigenum (Sanse kaju) Terminalia chebula (Aru) Terminalia bellirica (Baru) (5) Natural Dyes Rhus spp. (sey-wood varnish) Rubia cordifolia (6) Vegetables and food crops Asparagus racemosus (Wild asparagus) Dioscorea belophylla (Tubers) Dioscorea pentaphylla (Tubers) Diplazium esculentum (Nakey) Elatostema sp. (Damroo) (7) Spices Piper longum (Pipla long) Piper pedicellatum or peepuloides (Pipla round) Zanthoxylum armatum (Sichuan pepper) (8) Other plants Traditional paper species Daphne spp. Edgeworthia gardneri Cymbopogon spp. (Lemon grass) Elaeocarpus varuna (Gaasha Thungsee in Sharchop) Girardinia diversifolia (Nettle plant) Lycopodium clavatum (Zala-gadang) Sarcococca hookeriana Thysanolaena sp. (broom grass) This list is based on current information and should be considered as a dynamic list. New species can be added and/or species can be removed. For the distribution of the priority species please refer to Appendix 1; for a list of species cultivated by ITMS see Appendix 2 and for a list of species with export potential see Appendix 3. All lists are based on available data as of May 2008.

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2.3.2 Management of wild NWFP Resources In Bhutan there are two legal systems in place for the management of NWFP resources in the wild: a system of permits that requires obtaining written approval from authorities to collect NWFPs, and one through the establishment of CFs focused on the management of NWFPs. Both systems are described in detail in the Forest and Nature Conservation Rules (2006). The Social Forestry Division (SFD) has established more than 100 approved CFs with the 100th CF celebrated on 6 October 2008. Thirteen CFs focus on NWFP management including the following species: lemon grass, Illicium griffithii, Chirata (Swertia chirayita), Pipla (Piper pedicellatum), Cane (Calamus acanthospathus, C. latifolius), Daphne spp., Yula (Neomicrocalamus andropogonifolius), Borinda grossa (an endemic bamboo species to Bhutan) and some other bamboo species. A number of other CFs for NWFP management is still in the pipeline. The number of Community Forests focused on NWFP management is expected to increase rapidly over the coming years. A resource assessment is needed to gauge the availability of the NWFP concerned and is a mandatory part of the CF management plan. Forest (timber) inventories are not suitable for the assessment of NWFP resources because of the nature of NWFPs (different life forms, different parts of plants, sometimes difficult to detect, seasonality, and different distribution patterns). Therefore inventory methodologies for NWFP resource assessments have to be developed per NWFP species, separately in most cases (Wong, Thornber and Baker, 2001). For these reasons SFD is working on the development of guidelines for resource assessment and management of NWFPs. To date, guidelines for 6 species5 have been published while guidelines for a number of other priority species are in the pipeline which outline step by step the way to carry out a resource assessment. Furthermore, the guidelines give management and harvesting prescriptions. The guidelines are developed in collaboration with local people based on field experiences and are discussed in detail in the NWFP Working Group meetings. Apart from SFD, all other interested stakeholders can develop guidelines and present them in the NWFP Working Group for consensus and finalization.

2.3.3 Cultivation of NWFPs Several agencies are engaged in NWFP cultivation. For instance, the Natural Resource Development Corporation Ltd. (NRDCL), formerly Forest Development Corporation Limited (FDCL), concentrates on large scale bamboo plantations. In 1996-1997 a total of 86 acres (35 hectares) of bamboo plantations were established mainly in the Dzongkhags of Samtse6, Zhemgang, and Samdrupjongkar (Interview with G.S Chhetri, NRDCL, 2008).

Borinda grossa, Illicium griffithii, lemon grass, Chirata, Pipla and Yula Includes 10 acres of plantation that has been carried out in Phuentsoling clubbed under the Samtse activity of NRDCL.
6

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Other ongoing cultivation schemes have been undertaken by ITMS and RNR-RC Yusipang and include domestication of amongst others: Dracocephalum tanguiticum, Carum carvi, Inula sp. Aconitum orochryseum, Dactylorhiza hatagirea, Podophyllum hexandrum, Angelica glauca, Valeriana jatamansi, Lycium barbarum, Carthamus tinctorius, and Saussurea lappa7. The two institutions are cooperating in the cultivation of medicinal plants and the training of farmers on proper collection practices to ensure sustainable production of medicinal plants and resources. The Institute has also started developing information management systems with a database on medicinal and aromatic plants and plant products. In addition, RNR-RC Yusipang has developed cultivation sites for medicinal and aromatic plants spread over ten Dzongkhags. In 2007 alone, six metric tons of ruta (Saussurea lappa) was cultivated in three Dzongkhags constituting Bumthang, Haa and Gasa, while three metric tons of Curcuma longa been successfully cultivated in Zhemgang. Furthermore, some Agarwood (Aquilaria malaccensis) plantations were established in order to try out artificial agarwood inducement techniques. There seems to be scope to promote plantations of agarwood and to artificially induce agarwood production (Chhetri, Dhendup and Gyeltshen, 2004). NMC provides technical assistance through establishment and training of mushroom nurseries for farmers and the supplying of mushroom billets and related equipment. Mushrooms that are cultivated include Oyster mushroom (Pleurotus spp.) and Shiitake (Lentinus edodes). Cultivation can help to strengthen the production of a certain commodity and ensure its sustainable supply while reducing the pressure on the wild NWFP resources. However some farmed products may also be qualitatively inferior when compared to wild gathered products as is the case with some medicinal plant products (Russo et al, 2001). A general overview of cultivation versus wild collection is given by Schipmann et al (2002).

2.3.4 Challenges faced in the management of wild NWFP resources Successful and sustainable management and optimal utilization of NWFP resources require adequate resources and efficient and effective management. The major issues regarding resource use and management are presented as follows:
7

Assessment of NWFP resource base and annual harvesting limits Studies on harvesting regimes and their effect on regeneration Guidelines for resource assessment and management Clear regulations which differentiate between NWFPs derived from the wild and cultivated NWFPs Research on ecological characteristics starting with the prioritized NWFPs Research on domestication and propagation; DoF should be clearly informed about results of Research Centres on NWFP cultivation Cultivation of NWFPs with greater socio-economic benefits Development of NWFP management plans Mainstreaming NWFP development in forest planning and management

Full lists of cultivated plants are provided in the Appendix 2.

15

Standardization and classification of NWFPs Training in resource assessments, cultivation, harvesting and management of NWFPs Need to develop a good database system which provides adequate information about NWFP species Coordination amongst agencies involved in NWFP management, trade, etc. Lack of a gender perspective and a limited understanding about roles, responsibilities, knowledge, aspirations and contributions women make to NWFP management

2.4

Marketing and trade

NWFP marketing is an important source of income for rural households. A variety of NWFPs are sold in the weekend markets in different Dzongkhags. Over 100 different NWFPs are sold in the weekend market in Thimphu, e.g. cane shoots, fern heads, wild walnut, seeds of Zanthoxylum sp., wild garlic, bamboo products, wild tea, several species of mushrooms, incense and many others (Chandrasekharan, 2006). The market and trade channels for most of the NWFPs follow a general pattern of forest and meadow to village to road-head8, then on to larger trade centres. Middlemen buy the product and then move it to the next stage in the marketing channel. Although there are a number of examples where middlemen lure farmers into exploitive debt-bondage relationships, in general middlemen play a crucial role in the income generation of rural farmers. Middlemen or village traders throughout the country provide important services to the collector, such as: advancing money during periods of food shortage, arranging for transportation, providing post-harvest services, packaging and temporary storage. It is through providing these services that the village trader is able to attract collectors and to obtain (if he speculates accurately) a fairly high return on his expenditure. Four different types of trade are prevalent in the country: a) among community members and in the local markets for onward trade, b) among middle men and exporters, traders and national institutions, c) informal trade across the political boundaries of Tibet to China and d) formal exports to other countries, which include both raw materials and finished products.

2.4.1 Export of NWFPs The most commercially important NWFPs exported are high value mushrooms, lemon grass9 extract, Cordyceps sinensis and incense. Attractive markets for Matsutake mushrooms are in Japan, Singapore, Thailand and United Kingdom. Bhutanese essential oils have been well received in the European markets with growing demands from United Kingdom and Canada. Incense sticks are exported to Singapore, Taiwan, United States of America, United Kingdom and Hong Kong. Cordyceps is in huge demand from Hong Kong, Singapore, China and in the state of

Refers to nearest road accessible by a vehicle. Eastern Bhutan has the capacity to sustainably produce 50 MT lemongrass oil a year. If this could be realized it would capture about 10 per cent of the world market (Dhungyel, D 2002)
9

16

California in the USA (please refer to Table 1 for the quantities and values of exported NWFPs). Table 1: NWFP export in quantity and value Commodity of export Mushroom Bamboo works Lemon grass extract Incense Natural honey Katha (gum) Chirata Natural dye Handmade paper Cordyceps Quantity (Kg) 2004 2005 2006 1,286 3,006 1,480.3 2,600 3 15,130 4,860 490 4,610 2,000 100 12,140 1,200 99 896 158 Value (Nu.) 2005 5,636,706 550 126,000

2004 5,125,282 42,050 2,470,217

2006 3,145,926 11,400 1,449,000

644 132.5 109,000 124,769 49,092 45 16 10,970 6,600 7,426 2,080 NA 3,614,500 520,000 NA NA NA 76,100 NA NA NA NA 16,208 NA NA NA NA 76,000 NA NA 196 506 10,680,000 13,000,000 42,915,586 Source: Bhutan Trade Statistics, 2004, 2005, 2006.

In 1988 the export of medicinal plants was banned (Subba, undated). However, the government has recently approved the export of Swertia chirayita, Pipla (Piper spp.) and Rubia cordifolia or tsoe (Kuensel, January 13, 2008). 2.4.2 Farmer groups and associations In order to reach economies of scales, the formation of groups and/or associations can help to access markets and to bargain for better prices. For example, with the recent formation of a CF management group, CF members in Bjoka have united to sell cane and yula products through the group. This is currently pressing buyers to accept prices as determined by the farmers. The total annual average income of the group is Nu 3,475,000, which means an average annual income earning of Nu 26,320 for each household (Meijboom, Rai, and aus der Beek, 2008). Towards the latter half of 2007, a lemon grass cooperative has also been formed comprising farmers in the eastern region.

2.4.3 Marketing Information Services The Agriculture Marketing Services (AMS) is responsible for providing market information on RNR products through collection, compilation, analysis and dissemination of information on a regular basis. AMS also identifies, promotes and facilitates intra-regional trade through price and demand broadcasts over the national radio. Market information on inputs and markets is collected from relevant agencies, such as: Food Corporation of Bhutan (FCB), Dzongkhags, Department of Revenue and Customs, BAFRA, National Plant Protection Centre (NPPC), Druk Seed Corporation, NRDCL, and extension agents. In recent years, AMS has started compiling requests for NWFP auction data and market prices. FCB compiles auction data in terms of the total exports going through the auctions. Bhutan Trade Statistics Reports are also compiled by the government on the

17

countrys total imports and exports. Likewise, BAFRA closely monitors the quantity of all exports through export certification including NWFPs. Forest Information Management Systems (FIMS) is another unit within the Forest Resource Development Division (FRDD) that attempts to manage information related to forestry products including NWFPs. 2.4.4 Processing and value addition A small percentage of NWFPs collected are processed in Bhutan by a few enterprises such as ITMS, incense producers, traditional hand-made paper factories, the natural dyes and weaving centres in Khaling, the Essential Oils Development Program (EODP) and the weaving of nettle plant (Girardinia diversifolia) cloth and other fibres. The weaving of bamboo baskets, mats and other goods for daily, seasonal, and ceremonial use is also common. Other small-scale cottage industries include herbal dye making, honey production, incense making and lemon grass oil production. Bio-Bhutan has launched the first ever air spray made in Bhutan with organic certified lemon grass. It can be used as an air freshener and even as an insect repellent. Tarayana Foundation started candle making as an activity using local materials such as natural dyes to colour the candles. Similarly, licensed incense manufacturers have undertaken small and cottage scale processing activities using high land aromatic plants as their main ingredients. There are also other licensed incense processing units producing incense of various qualities for both the domestic and export markets. ITMS has developed Tseringma herbal teas using most of its ingredients (saffron, cinnamom, and Himalayan gooseberry) from India, Cordyplus capsules are another product being launched in recent years using Cordyceps sinensis as the major ingredient. Other products include a range of bath elixirs including salts that cure joint aches and rheumatism. Small scale basic processing equipment has also been developed by ITMS, with drying units in Lingshi for the higher altitude plants and one in Langthel, Trongsa for the lower altitude medicinal and aromatic plants. The EODP under the Department of Industries continues to promote lemon grass distilleries in Dungsum, Yalang and Toetso in Trashiyantse. The canning of matsutake (Tricholoma matsutake), Ngala shamong (Lyophyllum shimeji), and Golay shamong (Catathelasma sp.) has been carried out in Ura (Bumthang Dzongkhag) by NMC in 2006 and 2007 in collaboration with a farmers group and a mushroom exporter. However the basic processing, production and packaging technology currently in use need further upgrading to enhance product quality, presentation and other attributes. 2.4.5 Transport Bhutan is landlocked with huge mountains and deep gorges and therefore faces unique transport challenges. While the creation and maintenance of physical infrastructure is critical in pursuing poverty reduction goals through NWFP utilization, the countrys small and dispersed population and rough topography make it difficult to achieve economies of scale in service delivery, and it is costly to build and maintain vital infrastructure, including motor roads and transport networks.

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The country continues to face poor access in rural areas with 21% of the Bhutanese rural households located within one to four hours from the nearest all-season road, and another 21% have to spend more than half a day getting to a roadhead according to the Population and Housing Census (RGOB, 2005). To improve rural accessibility, the RGOB plans to make roads accessible within half a days walk for 75% of the rural population by 2012. Roads in Bhutan are the only means of surface transport for goods and passengers. Road corridors follow the rivers, which serve as an axis for population settlements and transport and provide access to the most fertile wetlands, found in valley floors especially in Paro Dzongkhag. Certain roads become difficult to drive on during winter months on mountain passes and during the rainy season (June, July, August and early September). Landslides are common during the monsoons, further hindering access. For example, the PhuentsholingThimphu highway, the main lifeline for supplies coming from India, often gets blocked for several days during monsoons. Similarly, the highways connecting Wangdue, Trongsa, Mongar and Trashigang are often closed due to snowfall and landslides. Druk Air the national flight carrier is the only means of air transport to the outside world markets and is rather expensive, but this situation should not undermine marketing potential, assuming Bhutanese entrepreneurs tap the right market with the right product.

2.4.6 Intellectual Property Rights (IPR) Intellectual property protection is a new area in Bhutan and the fundamental laws, including the Copy Right Act and the Industrial Property Act (including designs, patents and trademarks), were only enacted in 2001. However, with the growing interest in research, market value and commercialization in NWFPs, policy-makers like the Intellectual Property Division within the Ministry of Economic Affairs and other stakeholders are beginning to recognize the need for intellectual property rights regarding the appropriation and use of indigenous/traditional knowledge especially on craftsmanship, ethno-botanical knowledge, geographical indicators, copyrights and bio-security. However, a greater understanding and documentation of indigenous knowledge and access benefit sharing is imperative if any system of rights (based upon that knowledge) is to protect and compensate the rural population. For example, the nga dosem10 is a traditional right of communities in Ada geog in Wangdue. This perhaps is one of the most interesting cases for investigating the interface between property rights and conservation in the context of food security and poverty alleviation. Traditional communities must be able not only to manage their resources optimally but also to improve their production systems and technologies, offering products at competitive prices and deriving comparative advantages.

10

Fish baked between two hot stone plates is traditional practice by the people in Ada geog for generations and is an important source of livelihood to households.

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2.4.7 Entrepreneurship and Business Skills One of the main agencies promoting small and medium enterprises is the Entrepreneurship Promotion Centre (EPC) attached to the Ministry of Economic Affairs. Such initiatives have supported micro, small and medium-scale enterprise development through training, development of business plans and in some cases conducting feasibility studies. For instance, the Nado incense, formerly a cottage industry has now made good business progress with products being exported to Europe, USA, and to the Chinese markets of Southeast Asia. There are various agencies involved in training entrepreneurs with respect to different commodities. Some of the main ones are provided below in table 2. Table 2: Government agencies involved in enterprise development and business skills training Ministry Economic Affairs Government Agencies supporting enterprise development and business skils Entrepreneurship Promotion Centre Essential Oil Division Trade Division Regional Trade and Industry Office Social Forestry Division National Mushroom Centre Agriculture Marketing Services Medicinal and Aromatic Plants Project and the Integrated Horticulture Development Project. Institute of Traditional Medicine and Services Natural Resource Development Corporation Ltd. Bhutan Chamber of Commerce and Industries

Agriculture

Health Corporation

2.4.8 Challenges faced in the marketing & trade of NWFPs Marketing and trade of NWFPs is beset with major impediments including: the irregularity of supply and the large number of low volume products involved; cumbersome export regulations and procedures; inadequate quality control and product information to consumers; inadequate market information services to collectors and poor infrastructure for rapid transportation of products between production zones and the nearest markets. Due to the small amounts of forest products available to the individual collector, very few forest products are sold directly from the collector to the wholesaler or processor. The small quantity from each collector depresses the price received from the middleman or the final buyer and prevents the collector from receiving a larger portion of the total income generated from NWFPs. This is caused by the small and scattered supply of NWFPs in different pocket areas in the country. Group formation and the formation of associations are needed to reach the economies of scale. Rural communities have inadequate access to sufficient information regarding market demand and price. As a result, farmers cannot respond adequately to current market trends. The lack of market information keeps local collectors of NWFPs in weaker

20

positions as compared to traders and other middlemen. A more transparent marketing chain in the form of readily available prices and demand for the product, numbers of intermediaries in the industry, transport companies and their addresses and export market destinations would all enable the local collectors to be aware of market information and price structure. This would give local producers a stronger bargaining power with traders. For export markets, bottlenecks are the lack of regulations on the export and import of these products or when they exist, cumbersome administrative customs procedures and lack of harmonization of NWFP export regulations. These regulations need to be simplified and facilitative for the marketing of NWFPs, and particularly relevant to encourage women to be more active in the commercial aspects. Low levels of literacy among women discourage them to participate effectively, especially coupled with the complex bureaucratic procedures in marketing. The competitiveness of Bhutans marketing system is further reduced by the high transportation costs within the country and unbalanced trade flows. This is reflected by a shortage of truck loads for the return journey because of lack of business in that direction. Bhutans international trade is solely reliant on the Kolkata port in India, using the transit corridor on the Indo-Bhutan border at Phuentsholing. The development of the soft side of trade-related transport logistics, such as harmonization of documents and procedures, needs greater attention. Furthermore, the present marketing system exhibits a general lack of market information, incomplete market studies, and inadequate transportation and storage facilities. Currently, there are no systematic national level comprehensive studies on trade related issues of NWFPs in Bhutan except for few isolated case studies (Interview with Chief Marketing Officer, AMS). There are no comprehensive data about the volume of trade in the country except for the country trade statistics. Therefore it is needed to develop a mechanism wherein trade in NWFPs for domestic and export markets is properly documented. Information on domestic and export markets, including: price, minimum quantities, quality specifications, etc. must be regularly updated. This information would help sellers, buyers and exporters. Lastly there is a need to work on bio-prospecting and IPR in order to ensure that the knowledge of companies and communities is safeguarded.

2.5

Research and development

Forest research programs have been taken up as national programs under the management leadership of CORRB. Research programs on forest products (timber and NWFPs) are coordinated nationally by RNR-RC Yusipang and implemented in regions through RNR-RCs located at Bajo, Wengkhar and Jakar. One important program is the National Forestry Research Program (NFRP) engaged in conducting research and providing a foundation and springboard for achieving the overarching goals of sustainable NWFP conservation and utilization. The program has eight subprograms, out of which NWFPs form an important component. 2.5.1 Biological research

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RNR-RC Yusipang has the national mandate on forestry research, including NWFPs. Some of the past research activities carried out includes bamboo and cane studies in Bjoka geog in Zhemgang, sustainable agarwood production through artificial inducement, and studying the impact of matsutake collection on local economies. Some of the ongoing research initiatives include studying the life cycle and biology of Cordyceps sinensis, sustainable propagation and harvesting methods of important bamboo species (Borinda grossa) and the development of a fern arboretum. Similarly, RNR-RC Bajo focuses on CBNRM action research in collaboration with DoF and the Dzongkhag Forestry Sector. RNR-RC Bajo through CBNRM supports action research activities in Bjoka geog in Zhemgang on bamboo and cane management, lemon grass extraction in Dremitse (Mongar Dzongkhag), sustainable harvesting of pipla (Piper pedicellatum) in Nanglam, (Pemagatshel Dzongkhag), pasture management in Dhur, (Bumthang Dzongkhag), Swertia chirayita management in Singkhar lauri, (Samdrupjongkar Dzongkhag), Borinda grossa in Bomdeling, (Trashiyantse Dzongkhag) and matsutake in Genekha, and Cordyceps sinensis in Soe under Lingshi (both in Thimphu Dzongkhag). The effect of controlled forest fire on the production of lemon grass oil is currently underway in RNR-RC Wengkhar. ITMS is focusing on medicinal and aromatic plants using them as active ingredients for manufacturing herbal remedies and cures. Under the MAP project, research has been carried out on a number of medicinal plants. Research priorities of these institutions vary and encompass (a) important NWFPs, (b) selected crops of high economic importance (cordyceps, matsutake, lemon grass oil,) or (c) specific groups of products (e.g. medicinal and aromatic plants). Private sector involvement in NWFP research is almost non-existent in Bhutan unlike in China, India, Nepal and other countries where indigenous knowledge of traditional medicine is a core competence and harnessed by entrepreneurs.

2.5.2 Marketing research Marketing research is conducted by AMS, ITMS, NRDCL and the MEA. The office of the AMS continues to conduct market research studies for pipla (Piper spp.), Swertia chirayita, Rubia cordifolia and Illicium griffithii in the Indian markets of Delhi and Kolkata. Market research in Singapore and Thailand has been explored for Sassurea lappa, Aconitum sp., Shilajit, Picrorhiza kurroa, and pipla. Recently the supply order opportunities for Aconitum sp. from Singapore could not be fulfilled due to inadequate inventory data as a result of not being able to estimate the required supply of quantities and quality (interview with Chief Marketing Officer, AMS, 2008). Market research has been conducted for matsutake mushrooms in Japan, Cordyceps sinensis in Singapore and Hong Kong, turmeric and Carum carvi in the world markets and a compendium of medicinal herbs. In addition, the marketing section within the Pharmaceutical Research Unit (PRU) of ITMS performs related market surveys, audits and selling of products from the sale counter located within the establishment complex. Market research for product development has also been carried out in Singapore and Hong Kong. Past records showed PRU sales recording Nu. 4 million in 2005 with top of the line products including Tseringma herbal tea, cordyplus capsules, incense sticks and powder, and herbal bath elixirs. SFD has plans to establish market linkages to support community-based groups to market their NWFPs. Similarly, MEA in partnership with

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the private sector continues to develop markets for lemon grass extracts, incense, mushrooms, handicrafts and traditional textiles. Furthermore, RNR-RC Wengkhar has developed a number of herbal home-remedy products based on Aryuvedic principles. Further research is needed for the marketing of these products. 2.5.3 Challenges faced in NWFP related research At present the Research Centres have limited capacity in both technical and human resources to cover all research topics on NWFP-forest related concerns. Research activities are currently thinly spread over a variety of products. Due to the lack of focused research in the NWFP sector, institutions are unable to address the issue of technology related to different aspects, from sustainable production/ collection to the final sale. At the operational level, the traditional separation between research, training and extension hampers regular interaction between researchers and local communities. Furthermore, NWFP-related research at present does not recognize local knowledge and technical know-how sufficiently and needs better to address practical research questions from the field.

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Part III

Strategic plan for 2008-2018

SFD has the national mandate for NWFP development in the country and therefore SFD will be the lead agency and driving force in coordinating the implementation of this strategy. The strategic plan follows the three guiding principles as agreed during the National NWFP workshop held in 2006 (DoF, 2006): 1. Policy, legal and regulatory frameworks should form the basis for further development of NWFP program. 2. NWFP harvesting should be based on the principle of sustainability (resource availability and sustainable management principles). 3. Resource utilization should be community-based. The last principle means that local communities are given the priority in collection and management of NWFP resources. However, this principle should not hamper private sector development and individual entrepreneurs if local communities are not interested in NWFP collection and management. The strategic plan for NWFP development describes the overall short-term and longterm objectives followed by a more in-depth description of the strategic plan per theme, including: Legal framework (3.1), Organizations and institutions (3.2) Capacity building (3.3) NWFP resource management (3.4), Marketing and trade (3.5), and Research (3.6). 3.1 Strategic plan: legal framework

Objectives: a) To develop policies and legal frameworks supportive of NWFP development Strategic plan: 3.1.1) Creation of an enabling legal and policy environment to support the sustainable utilization and management of NWFPs. There is a need to review the National Forest Policy of 1974, the Forest and Nature Conservation Act of 1995 and the Forest and Nature Conservation Rules of 2006. New sections or a separate chapter on NWFP should be incorporated in the Policy, Act and Rules that support NWFP development. The definition of NWFPs should be revised. Also the royalty rates should be revised based on market prices. The existing royalty rates on many NWFPs are extremely high. Also there is a need for further harmonization with international regulations and conventions such as CITES. SFD/NWFP program in collaboration with DoF and PPD will take the lead in the creation of enabling policy and legal environment for NWFP development. 3.1.2) Promotion of domestic and international trade in NWFPs through simplication of trade procedures. SFD/NWFP program will coordinate with MEA and PPD to ensure that trade and export procedures for NWFPs are looked into and will be simplified. 3.1.3) Clear policy arrangements should be established at the geog, Dzongkhag and national levels for the sustainable management and commercial development of NWFPs. SFD/NWFP program in collaboration with PPD will coordinate with the GNH commission to support decentralization of NWFP management in line with the overall

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decentralization policies. Management and development of NWFP species included in Schedule I will remain under the jurisdiction of DoF at the national level. Milestones relating to the legal framework Importance of NWFP emphasized in the revised National Forest Policy (by 2009) A separate chapter on NWFP management and development written in the Revised Forest and Nature Conservation Rules; including a revision of the definition of NWFPs, revision of Royalty Rates, harmonization with international regulations, simplified trade and export procedures, and modalities for collection and management of NWFPs by community-based groups (by 2010) Decentralization of NWFP management and development to the Dzongkhags (by 2018); apart from the species as mentioned in Schedule I

3.2

Strategic plan: Organizations and institutions

Objectives: a) To streamline responsibilities, strengthen collaboration and information sharing among NWFP related organizations, institutions and stakeholders involved in NWFP use, management and trade. b) To enhance the institutional set-up and increase the efficiency and effectiveness in NWFP development c) To enhance the agenda and priority given to NWFP development among the different organizations Strategic plan: 3.2.1) NWFP development is a cross-cutting issue and involves many different organizations and stakeholders particularly as users. SFD/NWFP program will liase and closely collaborate with all the relevant stakeholders including agencies involved in marketing, research, product development, private sector, educational institutions and community collection groups. A clear mandate and terms of reference for the NWFP program will be developed. NWFP Program/ SFD will draft clear mandates and functions for approval from DoF. See figure 1 for the proposed organizational arrangements. 3.2.2) In order to strengthen the national agenda for NWFP development, a National NWFP Coordination Committee will be established to be chaired by the Secretary of the Ministry of Agriculture. This committee will ensure that NWFP development gets the attention it deserves and will make decisions regarding proposed changes to the legal framework. The members of this NWFP Coordination Committee will be decided based on a stakeholder analysis. A specific ToR will be developed for the members of the NWFP Coordination Committee by the NWFP Program /SFD (see figure 1). 3.2.3) The functions of the various government agencies currently engaged in NWFP management, use, development and trade will be reviewed in order to streamline agency functions and responsibilities and improve linkages. This will help to further increase the effectiveness and efficiency of organizations to develop NWFPs in all its aspects. A leadership and change of management program can further enhance the

25

quality of institutional development. The National NWFP Coordination Committee will lead this process.

National NWFP Coordination Committee (MoEA, NEC, BAFRA, PPD, DoF, SFD, AMS, CoRRB; Headed by Secretary of MoA) Main tasks: o Steering NWFP development in the country o NWFP policy issues MoA Ensure that NWFP development is incorporated into Dzongkhag and Geog development plans in an integrated manner

DoF

CoRRB

AMS SFD Dzongkhags

UWEFI/ CNR

Private Sector

NWFP Program

DFO National NWFP working group (SFD, FRDD, NCD, AMS, RNR-RC, NRDCL, ITMS, EODP; headed by SFD)

PM

DzFS

FMU

PA

CF

PF

Other areas

Main tasks: o Coordination and information sharing o Looking at technical issues

NWFP activities according to CF management plan or NWFP collection framework

Figure 1 Proposed organizational structure for the NWFP Program

26

3.2.4) The existing NWFP working group will act under the guidance of the National NWFP Coordination Committee. The Working Group will focus on the technical issues related to NWFP management and use. The existing Terms of Reference will be revisited and will include communicating needs from the private sector to the relevant government institutions. The formation of the National NWFP Coordination Committee and the NWFP Working Group will enhance coordination and information sharing among the stakeholders. NWFP Program /SFD will review the ToR for the NWFP working group (see figure 1). 3.2.5) NWFP development needs to be incorporated in the 5-year Dzongkhag and Geog plans as well as in PA plans and FMU plans to the extent possible. NWFP Program / SFD will coordinate and provide technical backstopping to Territorial divisions, Dzongkhag Forestry Officers, and PMs to ensure that NWFP development is well integrated into these plans (see figure 1). Furthermore special consultations will be held with women to ensure that their concerns and needs in NWFP development are reflected in the plans. 3.2.6) Strengthening regional and international collaboration and networking for NWFP development. Donor funding support will be pursued to support the implementation of this strategy, including technical assistance. NWFP Program/ SFD in collaboration with DoF and PPD will look into the possibilities of attracting donor support. Milestones relating to the organizational structure Prepare a clear mandate and functions for the NWFP Program by 2009 Set up the National NWFP Steering Committee by 2009 Set up the NWFP Program according to the organizational structure as presented in Figure 1 by 2009

3.3

Strategic plan: Capacity building

Objectives: a) To establish NWFP training and extension programs for different management levels within the government as well as for local communities in order to enhance the capacity in NWFP development, including resource management, marketing, processing, enterprise and business skills development 3.3.1) A curriculum for NWFPs including policies, management, marketing etc. has been developed and will be implemented at CNR or at the Ugyen Wangchuck Environment and Forestry Institute (UWEFI) in Bumthang. The NWFP Curriculum will help to train the Forest Officers and Rangers from Bhutan in relevant issues related to NWFP (including gender issues). The curriculum is dynamic and will expand when new information (for example through research) becomes available. The curriculum will include the guidelines for NWFP resource assessment and management as described under 3.4.1. The CNR or UWEFI will take the lead in developing and teaching the NWFP curriculum.

27

3.3.2) Workshops, meetings, forums, study tours, etc. on NWFP-related issues will be organized for relevant stakeholders in order to update their knowledge with the latest developments. Knowledge of NWFPs is further enhanced through providing opportunities of long-term training with relevant institutions and universities, and participation in international conferences and seminars. All NWFP-related organizations are responsible for sharing their information and looking for relevant opportunities to attend NWFP-related events. 3.3.3) NWFP materials will be developed for training and extension purposes for different aspects of NWFP development, species, etc. Training materials will be developed for different target groups, such as Forest Officers, Extension Officers and Farmers. Furthermore lessons learnt from NWFP development will be documented and distributed among relevant organizations. NWFP Program/ SFD will take the lead in developing materials related to NWFP resource management. Also the NWFP Program will coordinate and collaborate with other organizations to develop NWFP materials related to e.g. NWFP business and enterprise development. In general all relevant organizations are responsible for documenting and sharing their lessons learnt related to NWFP development. 3.3.4) Region-wise, a number of sites where NWFPs are collected, processed and marketed, based on an approved management plan, will be selected and used as demonstration sites for proper NWFP development. One such site could be where women and/or womens groups play the key role. These sites will be utilized as Centres of excellence for further learning and can be used as such by interested agencies such as CoRRB, Forestry Institute in Bumthang, CNR and DoF. 3.3.5) All the Forestry Officers at national, district and geog level will be trained in general issues related to NWFP management, marketing, enterprise development and policies. Most of this training will be conducted by UWEFI and/or CNR. The NWFP Program will backstop the provision of NWFP-related training. 3.3.6) The capacity of farmers in managing, marketing and enterprise developments will be built by relevant stakeholders e.g. Forestry Officers, Marketing Officers in collaboration with the Entreprenuership Promotion Centre (MoEA). Milestones relating to capacity building NWFP Curriculum taught at CNR/ UWEFI by 2009 All forest officers have a good understanding of NWFP management, marketing, enterprise development and policies by 2018

3.4

Strategic plan: management of NWFP Resources

Objectives: a) To ensure the sustainable management of NWFP resources b) To establish a database with relevant information on the NWFP resources Strategic plan: 3.4.1) The development of guidelines for resource assessment and NWFP management will be continued for priority species. These guidelines (if properly applied) will help local communities in preparing CF management plans and can

28

ensure that the resource base is managed in a sustainable manner. The guidelines will combine local and technical knowledge and will be practical and easy for application in the field. Guidelines will be developed by the NWFP Program but can also be prepared by different agencies. Drafts of the guidelines will be presented and discussed at the NWFP working group, which acts as a clearing house. After the consent of the working group the guidelines will be submitted to DoF for further approval and dissemination. 3.4.2) Continue to develop NWFP management plans based on the Community Forest Management Framework. Areas for NWFP management can also be located in FMUs, Protected Areas and other Reserved Forests. NWFP Program/ SFD will continue supporting Dzongkhag Forestry Officers and Geog Extension Officers in the preparation and implementation of Community Forest Management Plans focused on NWFPs in close participation with local communities, including women. 3.4.3) Preparation of a framework for community-based NWFP collection and management of NWFPs. The NWFP framework should describe the conditions for collection and marketing of NWFPs and will be a simplified version of a management plan. The framework should outline the procedures for the collection/harvesting of NWFPs from Government Reserved Forests and from Private Registered Land and should describe the clear roles and responsibilities of NWFP collectors / harvesters, traders and exporters, DoF, field forestry offices, and AMS. The framework for collection of NWFPs is an interim measure and a CF Management Plan for the collection/harvesting of NWFPs will be prepared simultaneously, wherever feasible. NWFP Program /SFD will prepare a draft of this framework and submit it to DoF for further approval and dissemination. 3.4.4) NWFP species that have high potential for cultivation on private lands will be identified for domestication. Cultivation will be encouraged if the demand is high and cultivation has no adverse impacts on the wild population. Cultivation of NWFPs will further be enhanced by the Research Centres in collaboration with the Horticulture Division and in collaboration with interested agencies such as ITMS in the case of medicinal and aromatic plants. Also other parties can take up cultivation of NWFPs if interested. 3.4.5) NWFP specimens need to be included in the National Herbarium. The National Herbarium is quite incomplete and should be upgraded and include at least all the prioritized species as included in Appendix 1. The NBC is responsible to update the Herbarium with NWFP species. 3.4.6) The classification of NWFPs needs to be standardized. At present several NWFPs are known by different names and there are different ways of categorization. Standardization would help in the set up of a uniform database. NWFP Program /SFD will coordinate with both national and international botanists and agencies in order to develop a comprehensive classification system. 3.4.7) A data base will be established which contains information about the NWFP resource base, including information about the uses, the parts of the plants that are used, the distribution area, ecological characteristics, information about the regeneration, traditional management etc. The data base is of importance to ensure that information about NWFP resources falls under the property rights of Bhutan. Therefore the existing information management unit will be upgraded with adequate resources including both hardware and software components providing a

29

computerized database for effective decision-making. NWFP Program/ SFD will coordinate with FIMS to develop a database and with relevant organizations to obtain the needed information. FIMS will be responsible for the data entry and regular updates of the database. 3.4.8) NWFP development needs to be mainstreamed in forest planning and management. Forest planning and management still focuses on timber management without giving proper attention to NWFPs. NWFP Program /SFD will bring this issue for further follow-up to the NWFP Coordination Committee and work with relevant stakeholders to include NWFPs in FMU and Protected Area plans. 3.4.9) Adequate monitoring and evaluation methods need to be developed and put in place in order to monitor the impacts of NWFP utilization on the resource base. Monitoring and evaluation systems will be established in close participation with local people who collect NWFPs and extension agents. NWFP Program /SFD will develop adequate monitoring and evaluation systems in collaboration with DoF. Monitoring in the field will be coordinated through Dzongkhag Forestry Officers, Park Managers and Territorial Divisions depending on the location of the NWFP collection sites. The actual monitoring will be carried out by local communities, supported by Geog Extension Officers. Milestones relating to NWFP resource management Interim framework for the collection and management prepared and operational by the end of 2008 Guidelines for resource assessment and management of priority NWFPs developed and published (describing 30 species by 2013) CFs focused on the management of NWFPs established (30 by 2013; 50 by 2018) Community-based groups formed for the collection and marketing of NWFPs (70 groups by 2013; 100 by 2018) 20 prioritized NWFP successfully cultivated by 2013; 30 NWFP species by 2018 NWFP management and development is incorporated in all land use plans (FMU, PA, Dzongkhag and Geog 5 year plans) by 2018 Database established for NWFPs providing information relevant to sustainable management, marketing & trade (database established by 2012; updating of information will be continuously) Standardization of classification of NWFPs by end 2012 Herbarium inclusive of priority NWFP species by 2018

3.5

Strategic plan: Marketing and Trade of NWFPs

Objectives: a) Increase NWFP contribution to the national economy: I. Identify NWFPs that have export potential II. Carry out value chain analysis of these species and identify activities for the further development of the marketing chain III. Encourage processing and product development of selected NWFPs for value addition

30

IV. Promote the private sector and support small and medium enterprises in rural areas with well established markets and trade linkages V. Support the establishment of associations and cooperatives. VI. Certify selected NWFPs with adequate brands and trademarks (including organic certification) b) Develop market information services on NWFPs c) Limit illegal trade of NWFPs across the northern borders Strategic plan: 3.5.1) Identification of NWFPs with export potential. AMS will be in constant search and contact with the international markets in order to get the latest information about the export marketing potential for NWFPs (including data about quantity, quality, parts of plant needed, etc.). Based on the acquired information, species will be prioritized according to their export potential as well as for potential revenue for farmers; preference will be given to species for which value can be added in Bhutan. Selected species should be those in which Bhutan has a comparative advantage. 3.5.2) Value Chain Analysis (VCA) consists of studying the entire value chain of NWFPs from their resource base to their final sale. This approach is helpful to identify the major bottlenecks and opportunities which can occur in the legal framework, resource base, marketing and trade and can also help to identify major research needs of certain species. Based on the outcomes, value chain development programs can effectively target and overcome the main shortcomings and build on the opportunities in the value chain. In general activities that are foreseen are: providing marketing information and services, increasing market access, establishment of processing and storage facilities, training of entrepreneurs, formation of cooperatives, etc. The NWFP program/ SFD will coordinate value chain analysis activities for prioritized species with relevant actors in the chain. 3.5.3) If the value chain is non-existent at the moment and concerns a new product or opportunity, a feasibility study will be carried out prior to starting the development and launching the product. This will help to avoid major failures. NWFP program /SFD and AMS will coordinate and provide feedback for such feasibility studies. 3.5.4.) Through processing, value can be added to the raw materials which can increase the benefits for the farmers substantially. Possibilities for processing, developing appropriate processing technologies and further product development and design will be sought, ensuring benefits to women and poorest groups. Possibilities to improve packaging will also be looked into to attract consumers. NWFP Program/ SFD will coordinate with AMS, MEA and BAFRA in order to add value to raw products and enhance income for local producers. 3.5.5) Strengthening the private sector through supporting the establishment of small and medium enterprises. This support will be in the form of training on e.g. record keeping, developing of business plans as well as support in accessing credit facilities. NWFP Program/ SFD will coordinate with AMS, BCCI and MEA (RTIOs) and support the private sector in developing NWFP commodities, with a focus on helping womens enterprises that can get special support financial and technical. 3.5.6) Formation of associations and cooperatives that are officially recognized. Because of the general scattered distribution of NWFPs in different pockets of the

31

country, quantities are often low. In order to get the economies of scale marketing groups, associations and/or cooperatives will be set up to ensure market access and increase economic returns to both farmers and traders. Furthermore established associations and cooperatives need to be legally recognized. NWFP Program/ SFD will coordinate with AMS and MEA to support the organization of farmers into official associations in order to reduce costs and reach these economies of scale. 3.5.7) Product branding: NWFPs originating from the wild are organic products and can be certified as such. Established certification schemes are very expensive and might not provide the required added value. Therefore branding possibilities will be explored to provide selected NWFPs with a unique Bhutan brand name. NWFP Program/ SFD will coordinate with MoA and BAFRA to explore possibilities and establish brand names for natural NWFP commodities. 3.5.8) Provision of marketing information services to farmer groups, including information about the specific requirements for marketing quality, minimum market quantities, prices, demands, market channels etc. Other services provided will be the establishment of marketing linkages, organization of fairs, access to credits and organization of relevant training. Each Dzongkhag should have its own Market Information Service Centre. AMS will take the lead in providing marketing information services to the public. 3.5.9) For some species the illegal trade over the borders is of special concern (as for example the illegal trade of Cordyceps over the northern borders into Tibet). Policy measures will be prepared by the NWFP Coordination Committee for specific species to deal with these problems in order to limit and control illegal trade in NWFPs. 3.5.10) Institutions such as ITMS and NRDCL will further be stimulated to diversify their business lines. ITMS will develop its own line of herbal home remedies for the national and export market. NRDCL will also develop and market products and raw materials mainly from their plantations, such as for example bamboo products. Milestones relating to marketing and trade of NWFPs 10% increase in export value of NWFPs by 2013; 25% increase by 2018 Increase in income from NWFPs for 2,000 households by 2013; and increase in income from NWFPs for 5,000 households by 2018 Associations or cooperatives formed to enhance the marketing of NWFP products (3 associations formed by 2013 and 10 associations formed by 2018) Branding of NWFP commodities that are collected and managed in a sustainable manner with a Bhutan trade name (by 2015) Provision of marketing information services to all Dzongkhags (6 Dzongkhags by 2013; all Dzongkhags by 2018) 3.6 Strategic plan: Research of NWFPs

Objectives: a) Improve technical capacity for NWFP research and establish research networks with international research institutions

32

b) Implement research to backstop local communities and government institutions as well as the private sector in resource management, marketing, product development, etc.; and respond to immediate research questions related to resource assessments, ecological characteristics of NWFPs, product development, marketing and other requests c) Ensure the timely dissemination of research information to interested stakeholders Strategic plan: 3.6.1) At present the technical capacity of the research institutions needs further improvement to study all aspects relating to NWFP development. This will be achieved by establishing linkages with renowned international research institutes, while present collaboration, as for example with IDRC and the Darwin Institute, will be further enhanced. CoRRB will coordinate with DoF and MoA to set up an international research network. 3.6.2) Focus research better on requests from stakeholders. At the moment there is a number of research questions related to the ecological characteristics of NWFPs, resource management and marketing which need immediate action, such as ecological questions (regeneration & seed production), harvesting regimes and questions related to market values. Gender issues or roles of women in NWFP management could be another topic for research. Research questions from the private sector (for example related to bio prospecting and IPR) as well as from other stakeholders will be communicated to the Research Centres through the NWFP Working Group during the annual RNR workshop. Research in the field will take place in close cooperation with local stakeholders (communities, including both women and men) by using Participatory Technology Development methods. 3.6.3) The timely dissemination of research results to relevant stakeholders will be enhanced by the NWFP working group of which the research centres are part. The research centres should ensure that the research results are widely disseminated to stakeholders and extension agents. 3.6.4) In order to better address research needs and disseminate research results, the separation between research, training and extension should disappear in the long run in order to facilitate regular interaction between researchers and local communities. CoRRB and RNR-RC Yusipang in collaboration with the NWFP Coordination Committee will lead this process (see also point 3.2.3). 3.6.5) The research centres will carry out research on domestication and cultivation of selected NWFPs. Only those NWFPs will be cultivated for which there is a high demand and of which the cultivation does not harm the wild population. Milestones relating to NWFP research Collaboration with at least 5 renowned international research institutions/universities on NWFPs by 2018 Research focused and better streamlined with needs from the field Research carried out in participation with local people in trials and through participatory technology development Research on domestication, cultivation and propagation of at least 20 prioritized NWFPs by 2018 Research on ecology, threats and resource assessments of at least 20 prioritized species by 2013 and 30 by 2018 Research results documented and distributed; at least 10 publications on 33 NWFP research results by 2013 and 25 by 2018.

References Bio-Bhutan, 2008. Bio-Bhutan Annual Report 2007. Bio-Bhutan, Thimphu, Bhutan Chandrasekharan, C., 2006. A Strategy Analysis for Development of Non-wood Forest Products in Bhutan. World Wide Fund for nature (WWF). Thimphu, Bhutan. Chhetri, D.B., Kunzang Dhendup and Dorji Gyeltshen, 2004. Sustainable agarwood production through artificial inducement. Working Document. Agarwood Research 2004/1. RNR-RC Yusipang. Chimmi Pelmo, 2006. NWFPs Nado Incense Factory. In: Proceedings of the National Workshop on Development of Non-wood Forest Products in Bhutan. Department of Forest, Ministry of Agriculture, Royal Government of Bhutan Energy and Resource Institute, 2008. Land cover and land use assessment for Bhutan using remote sensing & GIS based approach. Integrated Energy Management Master Plan project. Department of Energy, Ministry of Economic Affairs, Royal Government of Bhutan. Dhungyel, D., 2002. Lemon Grass Harvesting and Distillation in Eastern Bhutan. In: The Community Based Natural Resource Management Case Studies 2002, Department of Research and Development Services, Ministry of Agriculture. Dorji, K. and Tenzin, 2007. Bamboo: A golden opportunity for Wamanang. In: A series of case studies on Community-based Forest and Natural Resource Management in Bhutan, Ministry of Agriculture, Bhutan. Dorji Wangdi and Galey Tenzin, 2006. NWFP workshop presentation Ministry of Trade and Industry. In: Proceedings of the National Workshop on Development of Non-wood Forest Products in Bhutan, Department of Forest, Ministry of Agriculture, Royal Government of Bhutan FRDD, 2006. Proceedings of the National Workshop on Development of Non-wood Forest Products in Bhutan, December 5-6, Thimphu, Bhutan. Meijboom M., Rai D.M., Beek R. aus der, 2008. Sustaining Non-Timber Forest Products in Bhutan: A Case Study on Community-based Management of Cane and Bamboo. In: Insight: Notes from the field. Innovative Approaches with NonTimber Forest Products. RECOFTC/SNV Issue 3. P.16-24. Ministry of Agriculture, 2000. Renewal Natural Resources Statistics 2000, Volume I. Ministry of Agriculture, Bhutan Moktan, M.R., Norbu, L., Dukpa K., Rai, T.B., Dhendup, K., and Gyeltshen, N., 2004. Bamboo and Cane: Potential for poor mans timber for poverty alleviation and forest conservation: A case study from Bjoka in Zhemgang. YREP/2004/2. RNRRC Yusipang, Royal Government of Bhutan. Mukhia, P.K., Tangbi, S.D., and K.D. Tshering, 2006. Will the sale of Illicium griffithii reduce poverty in Aja Nye and Yabrang communities? In: A series of case

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studies on Community-based Forest and Natural Resource Management in Bhutan, Ministry of Agriculture, Bhutan. Namgay, K., Thinley, S. and S. Tenzin, 2007. Beyond This, What? Can the Sustainale Harvesting and Marketing of Incense Plants Contribute to the Livelihood of the Laya People? In: A Series of Case Studies on Community-based Forest and Natural Resource Management in Bhutan. Ministry of Agriculture, Bhutan. National Statistics Bureau, 2007. Poverty Analysis Report 2007. Norbu, K & Gyletshen, J., 2007. Chirata: A Medicinal Plant Rescued by Community Forestry in A Series of Case Studies on Community-based Forest and Natural Resource Management in Bhutan, 2007. Pradhan, P., Moktan, M. and P.K. Legha, 1998. Perspective on conservation and sustainable use of Chirata (Swertia chirata) in eastern Bhutan. RNR-RC Khangma, Bhutan. RGOB, 2005. Results of the Population and Housing Census of Bhutan 2005. Office of the Census Commissioner, Royal Government of Bhutan, Thimphu. RGOB, 2006. Forest and Nature Conservation Rules of Bhutan 2006. Department of Forest, Ministry of Agriculture, Thimphu, Bhutan. Russo, L, Vantomme, P. and S. Walter, 2001. Policy guidelines for the promotion of a sustainable utilization of non-wood forest products. In: IUCN/SSC Conservation Impacts of Commercial Captive Breeding Workshop. Selected Briefing Notes. Schipmann, U., Danna J. Leaman and A. B. Cunningham, 2002. Impact of Cultivation and Gathering of Medicinal Plants on Biodiversity: Global Trends and Issues. In: Biodiversity and the Ecosystem Approach in Agriculture, Forestry and Fisheries. FAO Inter-Departmental Working Group on Biological Diversity for Food and Agriculture. Rome, Italy Subba, K.J., undated. Overview of Non-wood Forest Products in Bhutan, Forest Resources Development Section, Department of Forest, Royal Government of Bhutan Tashi Wangyal, 2005. Cottage and small enterprise development in Bhutan: Prospects, Status and Recommendations. Ministry of Agriculture, Royal Government of Bhutan Tideman, K. 2006. Bhutanese incense, feasibility study for raw materials procurement, processing, and marketing in bulk in one central unit for all licensed incense manufacturers in Bhutan. SNV/Department of Industry, Ministry of Trade and Industry, Royal Government of Bhutan Wong, J.L.G., Thornber, K. and N. Baker, 2001. Resource assessment of non wood forest products: Experiences and biometric principles. NWFP Series 13. FAO. Rome

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Appendix 1: Priority species and their distribution11

Species Bamboo & canes Neomicrocalamus andropogonifolius (Yula) Borinda grossa Dzongkhag Mongar Sarpang Zhemgang Bumthang Chhukha Lhuentse Mongar Paro Samtse Trashigang Trashiyangtse Trongsa Dagana Chhukha Lhuentse Mongar P/gatshel Punakha S/Jongkar Samtse Sarpang Trashigang Trongsa Tsirang Wangdue Zhemgang Chhukha Mongar Samtse Sarpang Trongsa Zhemgang Chhukha Mongar Sarpang Trongsa Zhemgang Dagana Chhukha Lhuentse Mongar S-Jongkhar Samtse Sarpang Tsirang Trashigang
11

Geog Silambi, Gongdue Sershong, Dekeling Nanglam, Bjoka, Goshing Chomey, Chokhor, Tang Geling, Chapcha Jarey, Metsho Saling, Tsamang Doteng, Naja and probably other areas within Paro Chengmari, Nainital, Samtse, Dorokha, Sipsoo Radhi, Phongmey, Bidung, Merak, Sakteng, Shongphu Bumdeling Langthel, Drakten, Nubi, Tangsibji D/gang, Tsangkha, Khibisa, Kana, T/gang Metakha, Getena, Bjabchho, Bongo, Bhalujhora, Drala, Phuentsholing, Lokchina Jarey, Metsho, Khoma, Ganzur, Mingi, Manbee, Tshenkhar, Dungkhar Saling, Tsamang, Silambi, Gongdue Shumar Kabji, Guma, Talo, Shenga, Dzome, Chhubu Louri, Serthi, Orong, Wangphu, Gomdar, Martshala, Dewathang, Phuntshothang, Pemathang Bara, Tendu, Chengmari, Nainital, Samtse, Pagli, Denchukha, Bucca, Tading (all geogs) All geogs Radhi, Phongmey, Bidung, and Shongphu Langthel, Korphu All geogs Phangyul, Ruepisa, Gatseshoom, Gatseshogom, Nahi, Daga, Dangchhu, Sephu Nanglam, Bjoka, Goshing, Trong, Nangkhor, Shingkhar, Bardho Getena, Metakha, Geling, Bongo, Phuentsholing, Lokchina Saling, Tsamang, Silambi Chengmari, Samtse, Dorokha, Sipsoo, Nainital Gelephu, Bhur, Umling, Sershong, Hilley, Jigmecholing, Dekeling, Singi Langthel Nanglam, Bjoka, Goshing, Nangkhor, Bardho, Trong, Singkhar Bongo Saling, Tsakalig, Tsamang, Thangrong Nichula Langthel Nanglam, Bjoka, Goshing, Nangkhor, Bardho, Trong, Singkhar Lajab, Tseza Bongo, Bhalujhora, Phuentsholing, Lokchina Khoma Saling, Tsakaling, Tsamang, Thangrong, Ngatshang, Mongar, Chaskar Langchenphu Samtse, Chengmari, Dorokha, Sipsoo, Bara, Tendu, Nainital, Pagli, Denchukha Gelephu, Bhur, Jigmecholing, Hilley, Singi, Dekeling, Deorali Betini Kangpara, Yangneer, Samkha

Dendrocalamus sp.

Calamus acanthospathus

Calamus latifolius

Calamus sp.

This list is prepared by FRDD based on inputs from forestry officers from all Dzongkhags and former reports from Prabhat Mukhia.

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Plectocomia himalayana

Trashiyangtse Trongsa Chhukha

Dagana Lhuentse Mongar Punakha S/Jongkhar Samtse Sarpang Trongsa Wangdue Zhemgang Medicinal & aromatic plants Gasa Aconitum heterophyllum/ Trashigang lacinatum (Tsendhug) Aconitum sp. Bumthang Chhukha Dagana Haa Paro Samtse Thimphu Trashiyangtse Wangdue Gasa Mongar Paro Punakha Samtse Sarpang Trashigang Trongsa Lhuentse Mongar Trashigang Wangdue Bumthang Gasa Lhuentse Paro Thimphu Trashiyangtse Wangdue Lhuentse Mongar P/gathsel Punakha Trashigang, Tsirang Wangdue Chhukha Mongar S/Jongkhar Trashigang Bumthang Dagana

Yangtse Langthel, Drakten, Nubi, Tangsibji Metakha, Geling, Getena, Bjabchho, Bongo, Phuentsholing, Lokchina D/gang, Tseza, Lajab, Dorona Jarey, Metsho, Gangzur Shermung, Saling, Tsamang, Silambi, Gongdue Kabji Serthi, Lanchenphu, Orong, Wangphu, Gomdar, Martshala Throughout the Dzongkhag Lhamoyzingkha, Nichula, Dovan, Jigmecholing Langthel, Korphu Daga, Athang Trong, Nangkhar, Shingkhar, Bardho Lunana, Chamsa, Nawgang. Laya Sakteng

Acorus calamus (Chudala)

Adhatoda vasica (Tro Bashaka) flower as vegetables Cordyceps sinensis (Yartsa guenbup)

Cymbopogon spp. (Lemon grass)

Illicium griffithii

Picrorhiza scrophulariifolia

Chag, Chokor, Chomey Chapcha, Geling, Bjabchho Tseza Samar, Essu Wangchang, Shaba, Dopshari, Lamgong, Lungyni, Dogar, Tsentog, Doteng Tendu Soe, Lingzi, Naro Bumdeling Kazhi, Phobjika, Gangte Khatoe, Khamoe Saling, Silambi, Ngatshang, Mongar, Chaskhar Wangchang, Shaba, Dopshari, Doteng, Lamgong, Lungyni, Hungrel, Dogar, Tsentog Kabji, Lingmukha, Talo, Shenga, Tewang Dorokha, Denchukha, Bara, Sipsu, Dumtoe, Dorokha Dovan, Jigmecholing Radhi, Shongphu, Yangneer, Khaling Langthel Jarey, Metsho Saling, Tsamang Kanglung Daga Tang, Chokor Lunana, Laya Khoma Wangchang Soe, Naro, Lingzi Bumdeling, Yangtse Kazhi, Sephu, Dangchhu Tsengkhar Balam, Chali, Chaskar, Dramitse, Drepong, Kengkhar, Mongar, Narang, Ngarshang, Saling, Tsakaling, Tsamang, Jumey Shummar, Zobel Talo Uzorong, Bartsham, Yangneer, Khaling Patala Nahi Bongo Shermung, Mongar, Ngatshang, Chaskhar Louri, Serthi Yabrang Chomey, Tang, Chokor Tseza

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(Hong-len) Neopicrorhiza kurrooa?

Swertia chirayita

Gasa S/Jongkhar Thimphu Trashigang Trashiyangtse Wangdue Chhukha Mongar Pemagathsel S/Jongkhar Samtse Sarpang Trashigang Trashiyangtse Tsirang Bumthang Chhukha Gasa Mongar Paro S/Jongkhar Samtse Thimphu Trashigang Trashiyangtse Trongsa Wangdue Punakha Wangdue Bumthang Chhukha Gasa Lhuentse Mongar Paro Punakha Samtse Thimphu Trashigang Trashiyangtse Wangdue Bumthang Chhukha Gasa Paro Samtse Trashigang Trashiyangtse Wangdue Zhemgang Chhukha Dagana Gasa Mongar Pemagatshel

Lunana, Khatoe Louri Dagala, Soe, Naro , Lingzi Sakteng, Merak Bumdeling Phobjika, Gangte, Sephu Bongo, Drala, Lokchina Silambi Nganglam, Zobel Louri Bara, Tendu Hilley, Dovan Khaling Yangtse Betini Chomey, Tang, Chokor Geling, Bongo, Bjabchho, Getena Laya, Khatoe Shermung, Saling, Mongar, Chali, Tsakaling, Drepong, Chaskar, Thangrong, Dremitse, Balam, Narang, Ngatshang Tsentog, Wangchang, Shaba, Dopshari, Lamgong, Lungyni, Doteng, Luni, Naja Louri Denchukha, Dorokha Naro, Linzi, Soe, Toep Khaling (upper part), Merak, Sakteng, Shongphu Bumdeling, Yangtse Nubi, Tangsibji Sephu, Dangchhu, Nahi, Nabesa, Phobjika, Gangte

Incense Juniperus squamata/ J. pseudosabina (shup)

Ephedra gerardiana (Tsey)12 Rhododendron anthopogon/ Rhododendron ciliatum / Rhododendron setosum

Nardostachys grandiflora (Jatamansi, pangpoi)

Cinnamomum tamala (Shintsa, Teespata, Dalchini)

Tang, Chokhor, Chomey, Ura Chapcha, Getena, Bjachho, Lunana, Laya, Khatoe Khoma Shermung, Mongar, Ngatshang, Chaskhar Wangchang, Shaba, Dopshari, Lamgong, Lungyni, Tsentog, Naja Lingmukha, Tewang, Talo Tendu Soe, Naro, Lingzi, Toep Sakteng, Merak, Khaling Bumdeling Kazhi, Gangte, Phobjika Tang, Chomey, Chokhor Bjabchho Lunana, Laya Wangchang, Lamgong Denchukha Merak Bumdeling Sephu Ngangla, Bjoka, Goshing Bongo, Metakha, Getena, Lokchina Dorona, Tsangkha Khamoe, Khatoe Shermung, Saling, Ngatshang, Silambi, Gongdue, Khenkhar, Jumey, Mongar, Chaskhar Dungmin, Nganglam, Shummar

12

This species is regarded as one of the most important incense species by Nado incense. They source this species from Wangdue and Punakha Dzongkhags (FRDD, 2006).

38

Punakha S/Jongkhar Samtse Sarpang Trashigang Trashiyangtse Tsirang Wangdue Zhemgang Chhukha Gasa Thimphu Chhukha Dagana Gasa Lhuentse Mongar Paro P/gathsel Punakha S/Jongkhar Samtse Sarpang Thimphu Trashigang Trongsa Tsirang Wangdue Zhemgang Natural dyes Rubia cordifolia Chhukha Dagana Gasa Lhuentse Mongar Paro P/Gathsel Punakha S/Jongkhar Samtse Sarpang Thimphu Trashigang Trashiyangtse Trongsa Tsirang Wangdue Zhemgang Chhukha Gasa Lhuentse Mongar Paro Punakha

Tanacetum nubigenum (Sanse kaju) Terminalia chebula (Aru), Terminalia bellirica (Baru)

Kabji, Lingmukha, Talo, Chhubu, Tewang Langchenphu, Serthi, Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang Pagli, Sipsu Gelephu, Jigmecholing, Bhur, Sershong, Chhuzagang, Hilley, Shompangkha, Singye, Dekiling Khaling Yangtse Betini Sephu, Nahi Nangkhor, Nangla, Bjoka, Goshing Chapcha, Bjabchho Laya Wang Bama, Genekha Bongo, Bhalujhora T/kha, T/ding, Khatoe,Khamoe Jarey, Metsho, Khoma Saling, Tsamang Tsentog, Naja Nganglam, Shumar Kabji, Talo, Goenshari Langchenphu, Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang Pagli, Sipsu, Biru, Samtse, Chengmari, Nainital all geogs except Dovan & Jigmecholing Soe, Naro, Lingzi Khanglung Langthel Patala Athang, Daga Ngangla, Bjoka, Goshing, Trong, Nangkhor Metakha, Geling, Getena, Chapcha, Bjabchho, Bongo, Drala, Lokchina Tseza, Layab Khatoe Khoma, Jarey, Metsho All geogs Wangchang, Shaba, Dopshari, Doteng, Lamgong, Lungyni, Hungrel, Tsentog, Naja Nanong, Shummar Kabji, Talo, Tewang, Lingmukha, Guma, Shenga, Liimbu, Goenshari Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang Pagli, Tendu, Bara, Biru, Sipsu, Dumtoe, Dorokha, Tading, Samtse, Chengmari, Nainital Jigmecholing, Dovan, Hiley Chang, Mewang, Toep Radhi, Phongmey, Shongphu, Yangneer Bumdeling, Yangtse Nubi, Langthel All geogs Gatseshoom, Gatseshogom, Nahi, Ruepisa, Kazhi, Nyisho Ngangla, Bjoka, Goshing, Trong, Ngangkhor Chapcha, Bjabchho, Bongo, Drala, Lokchina Khatoe,Khamoe Khoma, Jarey, Metsho, Manji, Manbee Shermung, Mongar, Ngatshang, Chaskhar Wangchang, Shaba, Dopshari, Doteng, Lamgong, Lungyni, Dogar, Tsentog Kabji, Talo, Tewang, Lingmukha, Chhubu, Guma,Shenga

Rhus spp. (seywood varnish)

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Phyllanthus emblica

S/Jongkhar Samtse Sarpang Thimphu Trashigang Trashiyangtse Trongsa Tsirang Wangdue Zhemgang Dagana Chhukha Lhuentse Mongar P/gathsel Punakha S/Jongkhar Samtse Sarpang Trashigang T/Yangtse Trongsa Tsirang Wangdue

Zhemgang Vegetables and food crops Asparagus sp. Dagana (Wild asparagus) Lhuentse Mongar Punakha Samtse Sarpang Trashigang Trashiyangtse Tsirang Wangdue Zhemgang Chhukha Dagana Gasa Lhuentse Mongar P/gathsel Punakha Samtse S-Jongkhar Sarpang Trashigang Trashiyangtse Trongsa Tsirang Wangdue Zhemgang Dagana

Langchenphu Chengmari, Chargharey Gelephu, Bhur, Jigmecholing, Hilley, Shompangkha Chang Shongphu, Yangneer, Khaling Bumdeling Langthel, Drakten, Nubi, Tangsibji, Korphu All geogs Gatseshogom Ngangla, Bjoka, Goshing All geogs Bongo, Bhalujhora, Darla, Phuentsholing, Lokchina Khoma, Jarey, Metsho, Manji, Manbee Saling, Tsamang, Dremitse, Chali, Saling, Tsamang, Gongdue, Khenkhar, Jumey, Mongar, Chaskhar, Ngatshang Shummar, Khar, Chemong Guma, Talo, Kabji, Dzome, Shenga, Tewang, Chubu, Limbu, Goenshari Langchenphu, Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang Pagli, Tendu, Denchukha, Biru, Sipsu, Dorokha, Tading, Samtse, Chengmari, Nainital, Ghumauney, Chargharey all geogs except Dovan & Jigmecholing Shongphu, Yangneer, Bartsham, Radhi Yangtse Langthel, Drakten All geogs Kazhi, Nyisho, Dangchhu, Phangyul, Thedtsho, Ruepisa, Uma, Daga, Gatseshoom, Gatseshogom, Nahi Tong, Nangkhor Kana, D/gang Khoma, Manji, Manbee, Gangzur Shermung, Chali Chaskar, Dremitse, Drepung, Kengkhar, Mongar, Narang, Ngatshang, Saling, Tsamang, Jumey Kabji, Lingmukha, Talo, Shenga, Tewang, Lingmukha, Zome Dorokha, Denchukha, Barra Lhamoyzingkha, Nichula Khaling, Yangneer, Bartsham Bumdeling, Yangtshe L. T/Lingkhar, Patala, B/shong Phangyul, Ruepisa, Gatseshoom, Gatseshogom, Nahi Trong, Nangkhor, Ngangla Metakha, Geling, Getena, Bjabchho, Bongo, Bhalujhora, Drala, Phuentsholing, Lokchina all geogs Khatoe,Khamoe Khoma, Jarey, Metsho Saling, Silambi, Gongdue, Khenkhar, Jumey, Mongar, Chaskhar, Ngatshang, Tsamang Mikuri Kabji, Chhubu, Tewang, Talo Chengmari, Nainital, Pagli, Tendu, Sipsu, Bara Langchenphu, Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang All geogs Khaling Yangtse Langthel all geogs Nahi Nangkhor all geogs

Dioscorea bellophylla / Dioscorea hamiltonii (Tubers)

Diplazium

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esculentum (Nakey)

Chhukha Gasa Haa Lhuentse Mongar P/gathsel Punakha S-Jongkhar Samtse Sarpang Thimphu Trashigang Trashiyangtse Trongsa Tsirang Wangdue Zhemgang Chhukha Dagana Gasa Haa Lhuentse Mongar

Elatostema spp. (Damroo)

P/gathsel Punakha S-Jongkhar Samtse Sarpang Thimphu Trashigang Trashiyangtse Trongsa Tsirang Wangdue Zhemgang Spices Piper betleoides/ peepuloides. (Pipla) Lhuentse Mongar Samtse Trongsa Wangdue Samtse Chhukha Samtse Sarpang Lhuentse Sarpang Mongar P/gathsel Sarpang

Metakha, Geling, Bjabchho, Chapcha, Getena, Bongo, Bhalujhora, Drala, Phuentsholing, Lokchina Khatoe, Khamoe Samar, Sombaykha Jarey, Metsho, Minji, Tsengkhar, Gangzur, Dungkhar all geogs all geogs Kabji, Shenga, Tewang, Lingmukha, Dzome, Talo, Guma, Limbu, Goenshari Lauri, Serthi, Langchenphu, Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang Bara, Tendu, Chengmari, Nainital Samtse, Pagli, Denchukha, Sipsu, Biru Gelephu, Jigmecholing, Bhur, Sershong, Chhuzagang, Darachu (Hilley), Lhamoyzingkha, Nichula, Karmaling Toep, Mewang Shongphu, Yangneer, Uzorong, Bartsham, Khaling, Sakteng, Merak Bumdeling, Yangtse Langthel, Nubi all geogs Dangchhu, Ruepisa, Gatseshoom, Gatseshogom, Nahi, Athang, Daga Trong, Nangkhor, Nangla, Bjoka, Goshing Metakha, Geling, Getena, Bjabchho, Bongo, Bhalujhora, Drala, Phuentsholing Kana, Lajab Khamoe, Khatoe Samar Jarey, Metsho Shermung, Silambi, Gongdue, Khenkhar, Jumey, Saling, Tsamang, Drepong, Tsakaling, Thangrong, Mongar, Chaskhar, Ngatshang all geogs Tewang, Kabji, Lingmukha, Goenshari, Shangana, Talo Serthi, Lauri, Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang Bara, Tendu, Chengmari, Nainital Samtse, Pagli, Denchukha, Sipsu Jigmecholing, Dekiling, Dovan Toep Radhi, Phongmey, Bidung, Yangneer, Uzorong, Shongphu, Sakteng, Merak Bumdeling, Yangtse Langthel, Drakten, Nubi, Tangsibji all geogs Gatseshoom, Gatseshogom, Nahi, Daga Nangkhor Jarey, Metsho Saling, Tsamang Pagli Langthel, Korphu Nahi Bara, Chengmeri, Nainital, Samtse, Pagli, Denchukha Bongo, Bhalujhora Tendu, Chengmeri, Nainital, Denchukha, Pagli Dovan, Jigmecholing, Hilley Khoma Dehiling, Hilley, Bhur, Chhuzagang, Umling Shermung, Saling Nanong Singye, Dekiling, Lhamoyzingkha, Karmaling

Piper hamiltonii Piper longum

Piper pedicellatum Piper sp. (long)

41

Piper sp. (round)

Piper sp.

Trashiyangtse Tsirang Wangdue Zhemgang Mongar Punakha Wangdue Zhemgang Samtse Chhukha Gasa Lhuentse Mongar S-Jongkhar Sarpang Trashigang Bumthang Chhukha Gasa Haa Lhuentse Mongar Paro P/gathsel Punakha S-Jongkhar Thimphu Trashigang Trashiyangtse Trongsa Tsirang Wangdue

Zanthoxylum armatum (Sichuan pepper)

Bumdeling Betini Nahi Ngangla, Bjoka, Goshing Shermung, Saling Kabji, Tewang, Lingmukha Nahi Tong, Nangkhor, Ngangla, Bjoka, Goshing Pagli, Bara, Tendu, Denchukha Geling, Bongo, Bhalujhora, Phuentsholing Khamoe, Khatoe Minji, Tsengkhar Gongdue, Mongar, Chaskar, Chali, Tsakaling, Silambi, Gongdue, Khenkhar, Jumey Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang all geogs except Dovan & Jigmecholing Yangneer, Khaling Chokor Geling, Bjabchho, Chapcha Khamoe,, Khatoe Samar, Essu Jarey, Metsho, Khoma Saling, Tsamang, Silambi, Gongdue, Khenkhar, Jumey Doteng, Shaba, Lungyni, Dogar, Tsentog, Wangchang, Lamgong All geogs Guma, Kabji, Dzome, Shenga, Tewang, Lingmukha, Talo, Chhubu Gomdar, Orong, Wangphu Baap, Toep Khaling Yangtse Langthel, Drakten, Nubi, Tangsibji, Korphu All geogs Ruepisa, Thedtsho, Sephu, Gatseshogom, Phangyul Metakha, Geling, Getena, Bjabchho, Bongo, Drala, Lokchina Tseza Khatoe, Khamoe Dungkhar, Manji, Gangzur Shermung, Ngatshang, Mongar, Saling, Tsamang Luni, Doteng, Lamgong, Tsentog, Naja Louri Bara, Denchhukha, Dumtoe, Tading, Chengmari, Chargharey Dozam, Jigmecholing Toep Bartsham, Khaling Bumdeling, Yangtse Langthel, Drakten, Nubi, Tangsibji Athang, Daga, Ruepisa, Dangchhu Metakha, Geling, Getena, Bjabchho, Bongo, Drala, Phuentsholing Gangzur, Dungkhar Silambi, Gongdue, Khenkhar, Jumey, Chaskhar, Mongar, Ngatshang Dopshari, Lungyni, Naja, Wangchang, Shaba, Lamgong Zobel Bara, Biru, Denchhukha, Dumtoe, Dorokha, Pagli, Chengmari, Chargharey Jigmecholing, Dovan Shongphu Trong, Nangkhor Saling Langchenphu all geogs

Other plant species Daphne spp. Chhukha Dagana Gasa Lhuentse Mongar Paro S-Jongkhar Samtse Sarpang Thimphu Trashigang Trashiyangtse Trongsa Wangdue Edgeworthia sp. Chhukha Lhuentse Mongar Paro P/gathsel Samtse Sarpang Trashigang Zhemgang Mongar S-Jongkhar Tsirang

Lycopodium sp. (Zala-gadang)

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Elaeocarpus sp.

Sarcococca hookeriana

Wangdue Chhukha Mongar S-Jongkhar Sarpang Trashigang Trashiyangtse Chhukha Paro Punakha Thimphu Chhukha Lhuentse Mongar Samtse Trongsa Chhukha Dagana Lhuentse Mongar

Girardinia diversifolia (Nettle plant)

Thysanolaena sp. (broom grass)

P/gathsel Punakha S-Jongkhar Samtse Sarpang Trashigang Trashiyangtse Trongsa Tsirang Wangdue Zhemgang Mushrooms Tricholoma matsutake (Sangay shamu) Bumthang Chhukha Gasa Haa Mongar Paro Thimphu Trongsa Bumthang Chhukha Gasa Mongar Paro Punakha Samtse Sarpang Thimphu Trashigang Trongsa Wangdue Bumthang Chhukha

Phobjikha, Sephu, Dangchhu Bhalujhora, Drala, Lokchina Saling, Mongar, Chaskhar, Ngatshang Louri Nichula, Dovan, Jigmecholing Yangneer Yangtse Chapcha, Getena, Bjabchho, Bongo Doteng, Wangchang, Lamgong, Tsentog, Luni, Shaba, Dopshari, Lungyni, Hungrel, Dogar Talo, Changchena Genekha, Begana, Chamena, Drala, Phuentsholing, Metakha, Bjabchho Jarey, Metsho Saling, Tsamang Tendu, Chengmari Nainital Langthel Metakha, Geling, Getana, Bjachho, Bongo, Bhalujhora, Drala, Phuentsholing, Lokchina T/kha, Kana Jarey, Metsho, Khoma (Shermung) Balam, Tsakaling, Saling, Tsamang, Chaskar, Thangrong, Dremitse, Silambi, Gongdue, Khenkhar, Jumey, Mongar, Ngatshang Zobel, Shummar Kabji, Talo, Tewang, Lingmukha, Chhubu, Guma Langchenphu, Orong, Wangphu, Gomdar, Martshalla, Pemathang, Phuntshothang, Dewathang Tendu, Chengmari Nainital, Sipsu, Biru (and further throughout the Dzongkhag) Gelephu, Jigmecholing, Bhur, Sershong, Chhuzagang, Hilley Dekiling, Lhamoyzingkha, Nichula, Karmaling Yangneer, Uzorong, Bartsham, Khaling, Radhi Yangtse Langthel, Drakten, Nubi, Tangsibji all geogs Nahi Trong, Nangkhor, Ngangla, Bjoka, Goshing Ura Geling, Chapcha. Lunana, Laya Bjee, Isu Saling Wangchang, Shaba, Lamgong, Lungyni Geney, Mewang Nubi Chokor, Chomey, Tang Metakha, Geling, Bjabchho, Chapcha, Getena, Bongo, Bhalujhora, Drala, Phuentsholing, Lokchina Laya Kengkhar, Jurmey All geogs Talo, Kabji, Shenga, Lingmukha, Toewang, Dzome, Chhubu, Guma, Limbu Throughout the Dzongkhag Gelephu, Jigmecholing, Dekeling, Shompangkha, Lhamoyzingkha Chang, Mewang Yangneer Nubi Keyla, Gasellu, Nahi Chokor, Chomey, Tang, Ura Bjabchho

Cantharellus cibarius (Sisi shamu)

Rozites caperata (Dungshi shamu)

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Lyophullum shimeji (Ngala shamu) Auricularia sp. (Jili namcho)

Gasa Haa Paro Trashigang Wangdue Bumthang Chhukha Gasa Paro Punakha Samtse Sarpang Thimphu Trongsa Wangdue

Lunana, Laya, Khatoe Kalay-la Doteng, Lungyni, Dogar, Dopshari, Shaba Khaling Khotokha, Selela Ura Getena, Bongo, Drala, Phuentsholing Laya, Khatoe Dopshari Talo Bara, Biru, Sipsu, Laharemi, Tading, Samtse, Chengmari, Nainital, Chargharey Hilley, Dovan, Jigmecholing, Chuzagang, Sershong, Phigsoo, Shompangkha, Deorali, Lhamoyzingkha Dechencholing, Yushipang Nubi Gasellu area, Khotokha

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Appendix 2: List of medicinal plant species cultivated by the Institute of Tradional Medicine and Services
Botanical name Aconitum orochryseum Aconitum sp. Angelica sp. Aquilaria agallocha Asparagus racemosus Carthamus tinctorius Carum carvi Carum copticum Chesneya nubigena Choenomeles lagenaria Chrysosplenium forestii Cinnamomum tamala Codonopsis convolvulaceae Corydalis gerdae Crocos sativus Cuminum cyminum Dactylorhiza hatagirea Delphinium brunonianum Dracocephalum tanguiticum Elettaria cardamom Gentiana urnula Geranium sp. Glycyrrhiza glabra Herpetospermum pendunculosum Hypecoum leptocarpum Inula sp. Lancea tibetica Malva verticillata Marabilis himalaica Meconopsis horridula Meconopsis simplicifolia Mucuna imbricata Myristica fragans Onosma hookeri Piper nigrum (black) Piper nigrum (white) Polyalthia simiarum Pterocarpus santalinum Punica granatum Roscoa purpurea Santalum album Selinum vaginatum Strychnos nux-vomica Syzygium aromticum Terminalia chebula Trbulus terrestris Triplostegia glandulifera Vitis vinifera Local name Bong-dkar Bong-dmar Ca-ba A-ga-ru Ni-shing Gur-gum Go-snod-dru La-la-phud sTsa-stag-sha Se-yab Gya-kyi-ma Shing-tsha Sin-ba sTong-ri-zil-pa De-zang Ze-ra-dkar-po Dbang-lag Bya-rgod-spos Pri-yang-ku Sug-smul Gang-ga-chung Gla-sgang Shing-mnar gSer-gyi-me-tog Par-pa-ta Ru-rta Pa-yag So-ma-ra-zha Ba-spru Tsher-snon Aut-pal Jam-bras Za-ti Bri-smug Pho-ba-ri-nag-po Pho-ba-ri-dhar-po sNing-zho-sha Tsan-den-dmar-po Se-bru Yung-ba Tsan-den-dkar-po Tang-kun-dkar-po Ko-byi-la Li-shi A-ru gZe-ma Sga-tig-nag-po Grun-drum-dkar-po

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Appendix 3: List of NWFPs with export potential Botanical name Aconitum sp. Auricularia auricula Cantharellus cibarius Cordyceps sinensis Cymbopogon sp Diplazium esculentum Diplazium polypodiodes Elatostema lineolatum Illicium griffithii Lycopodium sp. Nardostachys jatamansi Picrorhiza sp. Pinus roxburghii Piper longum Piper nigra Plectocomia himalayana Rhododendron anthopogon Rubia cordifolia Saussurea lappa Shilajit Swertia chirayita Thysanolaena sp. Tricholoma matsutake Zanthoxylum armatum Trade name Aconite Jews ear Chanterelle Chinese caterpillar Lemon grass Fiddle head (Species of star anise) Lycopodium Kutki Resin Pipla long Pipla round (Species of cane) Rubia Ruta Shilajit Chirata Broom grass Matsutake Sichuan pepper Local name Tsendhoog Jili namchu Sisi shamu Yartsa guenboob Sorbang Pangkey (fern) Nakey (fern) Damroo Dhomleeshee Zalagadang Pangpoi Putishing Thangcchu Pipiling Pipiling Patsha Baloo Tsoy Dragzhuen Latij Tsakusha Sangay shamu Thingay

This list was prepared by AMS (November 2007)

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Supported by:

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