Forest Resources Development Division

Department of Forest Ministry of Agriculture Royal Government of Bhutan Walking the Extra Mile

Proceedings
of the National Workshop on Development of Non-wood Forest Products in Bhutan
held on 5 & 6 December 2006 in Thimphu, Bhutan

Prepared and compiled by: Marianne Meijboom NWFP Specialist SNV/FRDD & Sonam Peldon Forestry Officer NWFP Section, FRDD

Table of contents
Executive summary........................................................................................................... 5 1 2 Introduction............................................................................................................... 7 1.1 2.1 2.2 3 3.1 3.2 3.3 Objectives of the workshop ................................................................................ 8 Welcome address ................................................................................................ 8 Keynote address ................................................................................................ 11 NWFP development in a wider perspective...................................................... 16 Presentations by MoA, MTI and private sector ................................................ 18 Action plans ...................................................................................................... 31 Opening session ......................................................................................................... 8

Technical session ....................................................................................................... 16

Conclusions...................................................................................................................... 35 Appendix 1: Papers presented by participants ............................................................ 37 A strategy analysis for development of NWFPs in Bhutan - FAO............................... 38 Development of NWFPs in Bhutan - Forest Resources Development Division .......... 45 NWFP programme taken up within the Community Forests of the country - Social Forestry Division .......................................................................................................... 51 Nature Conservation Division related to NWFPs......................................................... 56 NWFPs - FDCL perspectives........................................................................................ 60 NWFPs - Agricultural Marketing Services................................................................... 62 NWFP Workshop presentation - Ministry of Trade and Industry ................................ 64 Forest Research Program, in development of NWFP Sector in Bhutan - RNR-RC Yusipang & RNR-RC Wengkhar.................................................................................. 70 Research activities on NWFPs - RNR-RC Jakar .......................................................... 76 Wild Mushroom- An important NWFP in Bhutan - RNR-RC Jakar............................ 78 Community Based Natural Resource Management of NWFPs - RNR-RC Bajo ......... 80 Wild mushroom management - National Mushroom Center........................................ 88 Processing and utilization of NWFPs by Menjong Sorig Pharmaceuticals - Institute of Traditional Medicine Services (ITMS)......................................................................... 90 NWFPs - Nado Incense Factory ................................................................................... 96 Bio Bhutan: Its role in marketing NWFPs................................................................... 99 NWFPs in the Forest Diploma Program - College of Natural Resources, Lobesa ..... 105 NWFPs - Ugyen Wangchuk Environmental and Forestry Institute, Lamegonpa, Bumthang.................................................................................................................... 109 Appendix 2: List of participants.................................................................................. 115 Appendix 3: Workshop agenda ................................................................................... 117 Appendix 4: Evaluation results ................................................................................... 119

Acknowledgements
The need for a workshop on NWFP development in which the main stakeholders would share their experiences has been recognized as essential for further work on this sector for a long time. That such a workshop finally saw the light has been made possible through the successful cooperation of the Forest Resources Development Division, SNV, WWF and FAO. Apart from the above organizations, we also would like to thank a number of individuals who contributed significantly to the success of the workshop. First of all, we would like to thank Dasho Sangay Thinley, Secretary for Ministry of Agriculture, who presided over the official opening ceremony and delivered the keynote address. At the same time our sincere thanks go to Dasho Dawa Tshering, who chaired the workshop for the full two days despite his busy schedule, which clearly shows the commitments of the Department of Forests to further develop the NWFP sector. We also would like to thank C. Chandrasekharan for his report on a strategy analysis for development of NWFPs in Bhutan. This report formed an essential input for the workshop. Furthermore, we would like to thank Hikojiro Katsuhisa, Chief Forest Product Services, who came all the way from FAO Rome in order to attend this workshop. Last, but not least we are thankful to all the participants who prepared and presented papers, shared their experiences and participated actively in the discussions.

Abbreviations
AMEPP Agriculture Marketing and Enterprise Promotion Program AMS Agriculture Marketing Services BAFRA Bhutan Agriculture Food Regulatory Authority CBNRM Community Based Natural Resource Management CF Community Forest CNR College for Natural Resources DoF Department of Forestry DRA Drug Regulatory Authority DzFO Dzongkhag Forestry Officer EODP Essential Oil Development Program FAO Food and Agriculture Organization of the United Nations FDCL Forest Development Corporation Limited FRDD Forest Resources and Development Division HRD Human Resources Development ICS Information and Communication Services ITMS Institute for Traditional Medicine Services JDNP Jigme Dorji National Park MAP Medicinal and Aromatic Plants MIS Marketing Information Systems MTI Ministry of Trade and Industry MoA Ministry of Agriculture NBC National Biodiversity Center NCD Nature Conservation Division NGO Non Governmental Organization NMC National Mushroom Center NITM National Institute for Traditional Medicines NWFP Non-wood Forest Products R&D Research & Development RCSC Royal Civil Service Commission RGoB Royal Government of Bhutan RNR-RC Renewable Natural Resources-Research Center RSPN Royal Society for the Protection of Nature SFD Social Forestry Division SNV Netherlands Development Organization TD Territorial Division UWIE & FS Ugyen Wangchuk Institute of Environment & Forestry Services WWF World Wildlife Fund for nature

Executive summary
The Government of Bhutan has identified Non-wood Forest Products (NWFPs) development for poverty reduction as one of the main priorities for the tenth Five Year Plan. The Forest Resources Development Division (FRDD) of the Department of Forest has the mandate to further develop the NWFP program and coordinate NWFP activities in Bhutan. In order to get a shared understanding about the current NWFP situation in Bhutan, a workshop on NWFP development was organized in Thimphu on 5 and 6 December, 2006. Government officials from the Ministry of Agriculture, the Ministry of Trade and Industry from the national and district level, as well as donors, NGOs and the private sector participated in the workshop. The objectives of the workshop were: 1. to get an overview of the functions/roles, past, ongoing and planned NWFP activities, and future needs related to the NWFP sector in Bhutan 2. to establish a framework for the further cooperation and coordination among stakeholders in the NWFP sector in Bhutan 3. to identify starting points for the elaboration of a national NWFP action plan The opening session of the workshop started with a Marchang ceremony and was followed by a welcome address given by the Director General of the Department of Forests and a keynote address provided by the Secretary of the Ministry of Agriculture. (Marchang). The opening session concluded with the introduction to the workshop given by the Joint-director of the Forest Resources Development Division in which the objectives and expected outputs of the two-day workshop were presented. The technical session was divided in three parts. The first part was an overview of the general issues in the world and in Bhutan related to NWFP development. The second part were presentations by different governmental institutions, NGOs, and the private sector about the role/mandate related to NWFPs, the past, ongoing and planned NWFP activities and the issues that need to be addressed in Bhutan. The third part was focused on the development of action plans to address the mentioned issues. A total of 15 organizations provided presentations. Based on the presentations of the organizations and further contributions of the participants, a matrix was developed related to the experiences of the organizations per NWFP species/commodity. This matrix helped to get an overview of the organizations working on different NWFP species and commodities, and shows the potential for collaboration on species work. The issues/needs of each organization were further divided in three main categories: i) policies & institutions, ii) resource management and iii) marketing, and cross-cutting issues. Action plans were developed based on the issues that were identified within these three themes. The developed action plans were presented in the forum and endorsed after thorough discussions.

Concerning to policy and institutional enabling environment three guiding principles were identified that will form the basis for the development of the NWFP program: 1. Existing policy, legal and regulatory frameworks should form the basis for further development of NWFP program. 2. NWFP harvesting should be based on resource availability and sustainable management principles and should not be market driven. 3. Resource utilization should be community based and not be individual-based. In order to safeguard the natural resources of the country it is important that the existing policy framework forms the basis for the further NWFP development. Harvesting permits will thus only be issued if exploitation is sustainable, depending on the available resources and NOT based on market demands. In order to ensure that poor communities can equally benefit from the potential of NWFPs, it was decided that resource utilization should be community based and not based on individual efforts. Related to the resources, the action plan emphasizes the importance of inventories, resource assessments and harvesting guidelines to ensure the sustainable utilization of NWFPs. A number of organizations/projects have already developed inventory methodologies. Strong collaboration is thus needed to make best use of these efforts for the further endorsement of the developed methodologies by the Department of Forests, in order to guarantee a wider use. The action plan developed on marketing stressed the need to look at comparative advantages. Bhutan is unable to compete with neighboring countries such as India and China and should therefore focus on niche markets and niche products in order to make the best use of its resources. The selection of NWFP species and commodities should thus be analyzed carefully in order to avoid situations where people have a product but cannot sell it for a desirable price or cannot sell it at all. It was concluded that the developed action plans should be considered as a starting point for the further development of the national NWFP strategy. For the further elaboration of the NWFP strategy more meetings related to certain themes with focal people are required. However the outcomes of the discussions form a very good basis for a comprehensive NWFP strategy which relates to multiple sectors. The workshop was closed with a brief evaluation. The workshop was highly appreciated by all participants and many participants stressed that such a collaborative NWFP workshop should be regularly organized.

Introduction

On the 5th-6th December, 2006, a national workshop was organized in Thimphu for the further development of the Non-wood Forest Products (NWFP) sector in Bhutan by the Forest Resources Development Division (FRDD) in collaboration with SNV and with support from FAO and WWF Bhutan. Over the last decade, the importance of NWFPs for income generation, food security and biodiversity conservation has been widely acknowledged in Bhutan. Several studies on NWFPs in general and on some specific NWFP species have been conducted by a number of organizations. One of the major studies on the NWFP sector in Bhutan has just been concluded by Mr. Chandrasekharan on behalf on FAO/WWF. This study gives an overview of the strengths, weaknesses and challenges and proposes 9 strategies for the further development of the NWFP sector in Bhutan. Until today the results of NWFP surveys and studies are mostly scattered and an overview is lacking. In order to further develop the NWFP sector, it is therefore essential to bring together the major NWFP stakeholders and share existing experiences, results & impacts and information needs and coordinate further activities. NWFP development for poverty reduction is one of the priorities within the 10th 5-year plan of the Royal Government of Bhutan. This can only be achieved if there is cooperation among the different organizations on all themes related to NWFP development such as NWFP resource management, marketing, research and institutional & policy development. People from the Ministry of Agriculture (MoA), the Ministry of Trade and Industry (MTI) of the national level as well as the district level (including the Territorial Divisions, Dzongkhag Forest Officers and Park managers) as well as NGOs and the private sector participated in the workshop and discussed about relevant NWFP issues. The workshop consisted of two days. The first day included the opening ceremony and was further focused on getting an overview of where we are. During this first day, organizations gave presentations about their function/role in NWFP development, past, on-going and planned activities and information needs. The second day was focused on where will we go from here. It included agreeing on the priority themes and issues which need to be addressed for the further development of the NWFP sector and the development of draft action plans and the identification of lead agencies. These developed action plans formed the basis for the further elaboration of the national NWFP development strategy. (Please refer to appendix 1 for the list of presented papers, appendix 2 for the list of participants and appendix 3 for the workshop agenda).

1.1

Objectives of the workshop

The objectives of the workshop were: 1. to get an overview of the functions/roles, past, ongoing and planned NWFP activities, and future needs related to the NWFP sector in Bhutan 2. to establish a framework for the further cooperation and coordination among stakeholders in the NWFP sector in Bhutan 3. to identify starting points for the elaboration of a national NWFP action plan

Opening session

The national workshop on the development of NWFPs in Bhutan was opened through a formal opening ceremony (Marchang) attended by Dasho Sangay Thinley, Secretary for Ministry of Agriculture, Dasho Dawa Tshering, Director- General, Department of Forest, Mrs. Christine McMahon, Country Director SNV, Mr. Hikojiro Katsuhisa, Chief Forest Product Services FAO Rome, Mr. Phuntsho Dorji, Assistant Resident Representative FAO Thimphu, Mr. Kinzang Namgay, WWF Country representative, Heads of Department and Non Department Organizations under the Ministry of Agriculture and officials from other Ministries and other supporting organizations (donors, foundations and the private sector).

2.1

Welcome address
by Dasho Dawa Tshering, Director General of the Department of Forests

Honorable Secretary, Ministry of Agriculture, Dasho Sangay Thinley, Mr. Hikojiro Katsuhisa, Chief Forest Products Services, FAO Rome, Mrs. Christine McMahon, Country Director SNV, Mr. Kinzang Namgay, Country representative of WWF Bhutan Program, Mr. Phuntsho Dorji, Assistant Resident Representative FAO,, Heads of the Department and Non Department Organizations under the Ministry of Agriculture, Surveyor General, Department of Survey and Land Records, heads of the Policy and Planning Division and Administration and Finance Division, Managing Director of FDCL, Colleagues from the Ministry of Agriculture and Departments, ladies and gentlemen. At the outset, I would like to take this opportunity to extend a very warm welcome to the Honorable chief guest, Dasho Sangay Thinley, Secretary, Ministry of Agriculture who in spite of his extremely busy schedule has kindly agreed to preside over this opening session. His presence amply demonstrates the importance attached by him for the cause

of sustainable management of forests and in particular the non-wood forest products in Bhutan. I would like to convey, on my behalf of the Department, and on my own behalf, the honor and deep joy we feel to have our Honorable Secretary with us, as Chief Guest, today. We are grateful to you Sir. I would also like to take this opportunity to extend my warm welcome to all other distinguished guests and participants to this important workshop on the development of Non-wood forest products in Bhutan. Some of our invitees have traveled very long distance and made it possible to attend this workshop. Now with this kind permission of the chairman, I would like to take this opportunity to talk few words on Non-wood forest products, its importance and sustainable management for the benefit of the workshop participants. We are all aware that in the earlier days the importance of Non-wood forest products was relegated to a lower level in comparison to the wood products. It used to be called as minor forest products. However over the years its importance has been recognized by the resource managers and policy makers throughout the world because of the dependence of large section of the rural population. Unlike the timber resources, management of non wood forest resources is very complex, therefore it has become all the more important that all the stakeholders should come together and draw most appropriate recommendations that would be suitable for future management and utilization, by our local people. The department of forest has the National mandate for the overall management of the non-wood forest resources in the country. However we would like to fulfill this mandate in close collaboration with all relevant government and non government agencies and in line with provisions enshrined in the forest and nature conservation act, 1995 and forest and nature conservation rules, 2006. The forest and nature conservation act of 1995 stipulates the requirement of a written scientific forest management plan prior to any commercial forestry activity in the forestry areas. Forest and nature conservation rules, 2006 also reiterates the same, and provides the legal framework for sustainable management of forest resources both timber and non timber. Therefore the sustainable management of the forest resources has been the key concept of our Department. Any new scientific understanding or technology in forestry is being incorporated for better management of our forest resources, be it in forest management from the old tree-centered forest management of sustained yield of timber to the new holistic and people centered approach with detailed forest function planning and mapping putting greater emphasis on the enlarged vision of sustained ecological system. It is a well known fact that preparation of management plan for managing the non wood resources is a tedious work requiring collection of many different types of data,

application of sound scientific knowledge, reference to relevant legislation, and a long process of making and effectuating decisions. The Forest Resources Development Division (FRDD) under the Department of Forests has been developing, over the years, various tools and guidelines to streamline the process of planning and implementation of sustainable forest management in Bhutan. Amidst all these new tools and guidelines, the necessity of having a standardized national strategy for the management of non wood forest resources that embraces all the elements of best practices of forest management planning and implementation is felt necessary. This workshop where many experts, specialists, from outside and within the country, in now wood forest products and all stakeholders of the NWFPs, who are participating in this workshop, is expected to come up with the most relevant and appropriate recommendations which will pave way for developing national strategies for sustainable management of non wood forest resources in Bhutan. The Government of Bhutan has identified Non-wood Forest Product Development as the major activity for Poverty Reduction and also as a means to achieve Economic Growth. Hence, Poverty Reduction will be the main development priority for the Tenth Five Year Plan. The focus on Poverty Reduction is also in consistent with the Royal Governments international commitments such as Millennium Development Goal # 1: Eradicating Extreme Poverty and Hunger by 2015; and the declaration of 2006-2015 as the SAARC Decade of Poverty Alleviation. Over the last decade, the importance of NWFPs for income generation, food security and biodiversity conservation had been widely acknowledged in Bhutan. Bhutan is rich in NWFP resources, which cover a wide range of products: medicines, dyes, oil seeds and nuts, incense, bamboo & cane, food crops, fodder, spices, gums & resins, organic tea, cosmetics, ornamental plants and high value mushrooms. Various studies have also shown that poorer communities exhibit a higher dependence on NWFPs, particularly during the lean agricultural season for generating monetary income and supplementing their general dietary requirements. There are many opportunities to manage forests for multiple benefits and thereby increase the value of forest ecosystems in the country. The existing reports on NWFPs as of now are based on qualitative assessment in most cases. An adequate quantitative information such as extent, density of occurrence, annual allowable cut, harvesting cycles, yields, costs etc are not available. It is necessary that quantitative analysis of the NWFP resources should be enhanced for development planning. There has been overuse and degradation of resources locally. Depletion of the stock in the case of Rattan and some mushrooms & medicinal plants has been reported and this might even lead to extinction of the species if there are no measures for check and balance. The vulnerability of these species calls for the need of domestication and cultivation of NWFPs particularly medicinal and aromatic plants to supplement efforts for biodiversity conservation and also for economic returns. Therefore, the participation and leadership of local people are essential as innovations must be built within the community rather being imposed from outside.

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Neither technology nor policy reforms nor institutional changes alone are sufficient to address poverty and food security. It is a challenge for us to develop a vision for the future and work as a team and implement actions to ensure that there is a balance between socio-economic development and sustainable management of the natural resources. Realizing the importance of NWFPs contribution to improve the quality of life of the Bhutanese people, the Forum here today should fulfill the objectives of the two days workshop on NWFP development. All the stakeholders should work closely and the approach will have to be participatory and multidisciplinary. The objectives of this workshop should contribute towards strengthening the Four Pillars of gross National Happiness: i) Promotion of sustainable and equitable socioeconomic development ii) Preservation and promotion of cultural values iii) Conservation of natural Environment and iv) Good Governance Now I would not like to take any more of your valuable time and discuss further on this topic because the issues on this subject would be deliberated in various sessions of the workshop by different speakers. Last but not the least, I would like once again welcome the Honorable Chief Guest and all other distinguish guests for gracing this occasion with their presence. I would also like to, once again, welcome all the participants who have responded to our invitation for taking part in this workshop with the valuable inputs and experience you all bring in. I hope this workshop will have a fruitful result, which we would recommend for approval by the Ministry. Thank you and Tashi Delek!

2.2

Keynote address
by Dasho Sangay Thinley, Secretary of the Ministry of Agriculture

SNV Country Director, Mrs Christine McMahan, Mr Hikojiro Katsuhisa, Service Chief, FAO Rome, Mr Phintsho Dorji, FAO, Assistant Resident Representative Thimphu Bhutan, Mr Kinzang Namgay WWF Country Representative, Heads of Department and Non Department Organizations under the Ministry of Agriculture, colleagues, ladies and gentlemen;

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I am very pleased to be here with you all this morning, and be able to deliver this opening remark to this very important Workshop on the development of Non Wood Forest Products in Bhutan. Many of us are aware, that in the past, we had devoted much of our resources and time for the development of methodologies and practices for managing our timber resources in the country. However, in the recent years there has been immense growing pressure on our forests to produce non wood resources for local uses by the communities as well as for export. And this trend is continuing. Meeting these growing demands without degrading our non wood forest resource-base is the most difficult challenge we are facing. Therefore, this Workshop couldnt have come at a more opportune moment. Non Wood Forest Products contribute significantly to the livelihoods and sustenance of many rural communities in our country. Such a variety of products from the forest can range from medicines to dyes, bamboos and canes, fodders and grasses, ornamental plants, resins and oils and also the high value mushrooms. Various studies have also shown that poorer communities exhibit a higher dependence on Non Wood Forest Products, particularly during the lean agricultural season for generating monetary income and supplementing their general dietary requirements. There are many opportunities to manage forests for multiple benefits and thereby increase the value of forest ecosystems in the country. About 72.5% of our countrys geographical area is covered by the forest while only 8% of the land is suitable for agricultural production. And around 79% of the Bhutanese populations are engaged in agricultural farming. The farmers of Bhutan therefore practice mix farming where they are directly involved in the use of NWFPs in all aspects of their household chores. Therefore, we need to look much beyond the timber obtained from the forests. It is needless to say that some of the non wood forest products are very important to the local population for subsistence use while other have very high commercial importance such as cordyceps. Some earn substantial foreign exchange, while others give employment opportunity to the persons engaged in cottage industries utilizing them for example Bamboo handicraft and incense factory. The goal to keep 60% of the land area under forest cover for all times to come may prove harder as time goes on. The reason being the increased consumption rates for wood, non wood forest products and fuel wood, conversion of forest land to other landuse have become constant growing challenges. To cite few examples, about 2,737 acres of forest land are lost annually to development infrastructures such as electric transmission and distribution lines, schools, hospitals and others. In addition, 975 acres are converted for mining.

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There is a need to assess our forests resources on a periodic basis, quantify the benefits, both tangible and intangible, from it and calculate sustainable rates of utilization of timber as well as non timber forest resources and ultimately develop much more effective management practices which is sustainable and relevant to our local conditions. Institutional support is very important in designing and executing NWFP Development. It can be in the form of Government Policies and Regulations, Research & Development, Human Resource Development (Training & Extension), Information Services and also Infrastructures. The existing National Forest Policy of Bhutan, 1974 contains objectives related to the following: (i) Forest Conservation, (ii) Afforestation, (iii) forest resources survey, (iv) Utilization Programme, (v) Wild life and Recreation, (vi) Forest administration and (vii) Training, (viii) Investment, (ix) Revenue, (x) Research and Policy, and (xi) Forest Law. Development of NWFPs does not figure prominently in Forest and Nature Conservation Act of Bhutan, 1995 also. Therefore legal regulations and technical specifications relating to Management, Harvesting, and Marketing also do not feature prominently. Therefore there is strong requirement that we give high priority in developing methodologies for assessing our NWFP resources and develop management plans for managing and sustainable utilization of this resource for the benefit of our people. I would strongly urge that NWFP Development should be included as a crucial component of all future development planning: to make a commitment to promote and develop NWFP resources as means of employment generation and also a source of income. The revenue generated through royalties of NWFPs for three years 2003 to 2006 for rural supply of Bamboo, Mushroom, Canes amounted to Nu. 115 thousand while the revenue generated through royalties at commercial rate amounted to Nu. 900 thousand (from Bamboo, Lemongrass, Mushroom billet, Resin, Daphne etc.). The Royalties collected from Cordyceps during 2004 to 2005 and 2005-2006 (2 years) amounted to Nu. 5.26 million. NWFPs have contributed huge chunk of revenue to the Government and also generates income to the farmers. The Bhutan 2020 document strongly expresses a need and desire to balance economic development with cultural and environmental conservation. It implies that biological values are not only to be preserved, but also contribute to the process of sustainable social and economic development. Since NWFP development for poverty reduction being one of the top priorities during the 10th FYP of The Royal Government of Bhutan, therefore NWFP development and management should benefit the poorest of the poor. The Triple Gem approach of the Ministry of Agriculture PAM- the enhancement of Productivity, Accessibility and Marketability for Development and poverty eradication should have adequate impact on NWFPs.

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Lastly, I would like to thank the Director General Department of Forests for having invited me as a Chief Guest and to address the inaugural session of the workshop. I am really honored to be here this morning with you all. I would like to thank all our development partners especially working in the Non Wood Forest product Sector for their valuable contribution and assistance. I would also like to thank all the participants who have come from different parts of the country to attend this Workshop. Mr Hikojiro Katsuhisa, Chief of the Service, NWFP, FAO has taken trouble to travel all the way from Rome to attend this Workshop. We are very glad to have you here. Finally I would like to urge all the participants to be extra attentive and take active part in the discussion and come up with the recommendations that would the beneficial and relevant to our situation for development of non wood forest products in Bhutan. Thank you and Tashi Delek!

2.3

Introduction to the workshop

by Dr. D.B. Dhital, Chief Forest Officer, FRDD

NWFPs cover a wide range of products such as forest vegetables, fruits & nuts, forest food crops, fodder, bamboo & cane, medicinal plants, dyes, spices, ornamental plants, resins & oils, honey, etc. These NWFPs confirm the important components/ ingredients for paper, furniture, incense sticks, medicines, cosmetics, teas etc. Until now 216 medicinal plant species, 97 mushroom species, 97 fruits & nuts, 50 bamboo species, 14 cane species, 25 oil/resin species, 20 spices, 38 fibers, 70 ornamental plant species, 181 fodders, 36 dyes, 12 food crops (yams) and 77 forest vegetables have been identified in Bhutan. The nature of NWFPs thus greatly varies and includes different life forms as for example trees (star anis and agarwood), herbs (many medicinal plants), climbers (yula etc.), shrubs, fungi/ caterpillars (cordyceps), orchids as ornamental plants, leaves, stem roots, plant exudates. Due to the diverse nature of NWFPs, its management differs to a large extent from forest management for timber products and needs therefore to be product/ species specific. Although everyone realizes the importance of NWFPs, NWFPs have not been studied to the extent that it should have been. As of now, the available information on NWFPs is limited to a few species and is applicable only in few pockets of the country. In order to further develop the NWFP sector, it is therefore essential to bring together the major

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NWFP stakeholders and share existing experiences, results & impacts and information needs and coordinate further activities. Several studies on NWFPs in general and on some specific NWFP species have been conducted by a number of organizations. One of the major studies that provide an overview of the NWFP sector in Bhutan is just concluded by Mr. Chandrasekharan on behalf on FAO/WWF. This study gives an overview of the strengths, weaknesses and challenges and proposes 10 strategies for the further development of the NWFP sector in Bhutan. NWFP development for poverty reduction is one of the priorities within the 10th 5-year plan of the Royal Government of Bhutan. This can only be achieved if there is cooperation among the different organizations on all themes related to NWFP development such as NWFP resource management, marketing, research and institutional & policy development. During this first day, organizations will give presentations about their function/role in NWFP development, past, on-going and planned activities and information needs. The second day is focused on where will we go from here. This day will include agreeing on the priority themes and issues which need to be addressed for the further development of the NWFP sector, the development of action plans and the identification of lead agencies to ensure the follow-up on the action plans. The action plans will clarify future collaboration mechanisms and spell out who will work on which priority issues. The expected outputs of the workshop are: Overview of past, ongoing and planned activities, functions & roles and future information needs related to NWFPs of different organizations A matrix of affiliation showing the areas of work and potential to contribute of each organization related to certain NWFP species and issues Development of action plans in order to work on the implementation of the strategies as identified by Dr. Chandrasekharan and based on the developed matrix of affiliation, for example on the following themes: NWFP resource management (inventories, harvesting guidelines, management plans, domestication & cultivation, etc.) NWFP marketing (supply and value chain analysis, certification, demands, prices, overall competitiveness, private sector development, processing, product branding, etc.) Institutional & policy development (drafting policies and frameworks, intellectual property rights, preparation of NWFP master-plan, etc.) Identification of lead agencies to ensure the follow-up on the developed action plans and possibly the establishment of a NWFP taskforce (mandate: ensuring the implementation of action plans, bringing forward results to the relevant ministries, organizing workshops & seminars, etc.)

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Technical session

The technical session was divided in three parts. The first part was a presentation of Mr. Hikojiro Katsuhisa, chief Forest Product Services, FAO Rome who gave an overview of the general issues in the world and in Bhutan related to NWFP development. The second part were presentations by different governmental institutions, NGOs, and the private sector about the role/mandate related to NWFPs, the past, ongoing and planned NWFP activities and the issues that need to be addressed in Bhutan. The third part was focused on the development of action plans, which forms the foundation for the further development of the NWFP national strategy.

3.1

NWFP development in a wider perspective

Mr. Hikojiro Katsuhisa gave an excellent presentation about worldwide issues related to NWFP development. He provided an overview of the widely acknowledged issues that hamper the further development of NWFP development, which may or may not be of importance to Bhutan, including: Lack of quantitative information on production, consumption and trade Lack of awareness, policy and regulatory instruments Lack of resources inventory to support proper planning Lack of appropriate management prescriptions for most NWFPs, integrated with wood products or otherwise Concern for forest degradation and biodiversity Unclear rights and privileges on NWFPs by local communities Insufficient benefit shared by local producers Effectiveness of NWFP certification Weak institutional capacity in most developing countries Related to Bhutan, Mr. Hikojiro Katsuhisa presented Mr. Chandraksekharans findings1 on the strengths and weaknesses of Bhutan for the further development of the NWFP sector:

Chandrasekharan, C., 2006. A strategy analysis for development of NWFPs in Bhutan. FAO/ WWF/ FRDD. Thimphu, Bhutan (available at FRDD)

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Table 1: Strengths and weaknesses for NWFP development in Bhutan Strengths Forest resources comparatively in good condition Rich diversity in NWFP Potential for NWFP based economic growth Governments eagerness to develop the NWFP sector Huge markets at its door step Image of Bhutan Weaknesses Resource related Management related Products and production related Market related Technology related Information related Infrastructure related Institutions related

In order to make best use of Bhutans strengths and to overcome the weaknesses, Mr. Chandrasekharan proposes 9 strategies in his report. These broad strategies are: 1. Know what you have 2. Know the economic merits and other attributes of selected products 3. Promote domestication and cultivation for improved economics and consistency of supply 4. Go for value addition to the extent possible/feasible 5. Adopt market orientation 6. Ensure research and development backup 7. Undertake institutional reforms for providing enabling environment for NWFP development 8. Promote/support participatory enterprise institution, learning from experiences form other countries 9. A perspective master plan for NWFP development, with component action plans Further, the presentation included some rational steps for the promotion of NWFPs based on the proposed strategies: Screen the potential NWFPs for their suitability to be grown under the specific local conditions and for their desired uses. Identify and decide on priority NWFPs based on their comparative advantages and merits. Species yielding high value produces which can be easily processed or pre-processed, with potential for higher income should normally be preferred. Adopt appropriate system of resource management, based on proper land use planning and cropping technology, ensuring market-orientation and competitiveness. Improve harvesting, including pre-harvest treatments and related systems. Enhance technological capability, equipment and skills; identify and bridge knowledge gaps. Emphasis here should be on productivity gains. Promote facilities for post-harvest treatments including storage and transportation. Undertake product development, value chain investment and value-added processing. Encourage local entrepreneurship and participatory enterprises. Ensure access to market information.

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Diversity production (producing a reasonable number of different NWFPs) and market (as well as end-uses), to hedge against price and market fluctuations. Reform NWFP related institutions and legal instruments.

These proposed strategies and rational steps were further taken into account in the further discussion on the further development of the NWFP sector in Bhutan during the workshop days, including during the formulation of the action plans.

3.2

Presentations by MoA, MTI and private sector

A total of 15 organizations provided presentations on their role/function related to NWFP development, past, ongoing and planned activities, and the issues, challenges faced by their organization in the further development of NWFPs. (Please refer to the papers of these presentations in Appendix 1.) Based on the presentations of the organizations and further contributions of the participants, a matrix was developed during the workshop related to the experiences of the organizations per NWFP species/commodity. This matrix helped to get an overview of understanding which organizations are working on which NWFP species and NWFP commodities and shows the potential for collaboration on species work (see table 2). The issues/needs of each organization were further divided in three main categories: i) policies & institutions, ii) resource management and iii) marketing, and cross-cutting issues (see table 3).

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Table 2: Overview of past, on-going and planned activities of organizations, institutions and agencies in Bhutan per NWFP

NWFPs in general
Past Forest Resources Development Division Surveys in 11 dzongkhags on presence and uses of NWFPs Prioritization of 20 important NWFPs On-going Literature review of existing documents on NWFPs Review and analysis of existing NWFP experience related to inventory methods and harvesting guidelines Social Forestry Division Planned Establishment of a national database for NWFPs Research on domestication of NWFPs in collaboration with RNR-RCs Assesing the current legal framework for NWFP and providing recommendations for further improvement Establish a NWFP working group and conduct consultative meetings Identification of priority NWFPs for inventories and quantitative assessment Review existing CBNRM framework and adapt for NWFPs Conducting training on inventory methodologies and sustainable management of NWFPs Development of inventory methodologies and testing them in the field Development of management guidelines and management plans focusing on sustainable management and utilization of NWFPs Identification of priority NWFPs for CFs in cooperation FRDD Training on NWFP management in CF sites Development of manuals and guidelines of high value NWFPs in CFs Establishment of market linkages for CFs in collaboration with AMS, MTI, FDCL, Bio-Bhutan and other stakeholders

UWIE&FS College for Natural Resources

Development of NWFP class/module Module on sustainable forest utilization including NWFPs Students carry out projects on NWFPs

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Department of Agriculture-Organic Program

Production and marketing facilitation of organic products Collection and cultivation of medicinal, aromatic and dye plants To venture in fair trade labeling in addition to organic certification Product development and marketing of potential products

BIO-Bhutan

Tarayana Foundation

Non profit organization working to uplift and enhance lives of vulnerable communities in rural Bhutan

Agarwood
Past RNR-RC, Yusipang Agarwood production through induction of stimulants RNR-RC, Jakar Testing Agarwood inducement methods Experiments of agarwood inducement with improved agents Information collection on existing agar trees in farmers fields in Sarpang On-going Planned Collection, utilization and domestication of Agarwood Application of improved inducement techniques at Panbang plantation (200 trees) and trees owned by farmers Promotion of Agar wood plantations Evaluation of Agar inducement experiment in Gelephu Set up of Agarwood plantation in Gelephu

Nado-Incense

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Bamboo and Cane

Past FRDD Developed draft management guidelines of bamboo Survey on cane in Chukha SFD Establishment of bamboo & cane CF site in Khoma gewog (Lhuntse) FDCL Identification of commercial bamboo species Large scale bamboo plantation Bamboo inventory to find out potential for commercialization Identification of local bamboo products and marketing Large scale bamboo seedling production Organized a bamboo exhibition cum sale in Oct. 2006 On-going Development of inventory methodology for bamboo- Borinda grossa Planned

Development of planting and harvesting guidelines for commercial canes and bamboo Establishment of CFs for bamboo management Purchasing and marketing of local bamboo products (flag post, jatham, etc.) Training on bamboo management for field officials Distribution of bamboo hand tools to remote communities. Creation of nurseries and raising of bamboo seedlings for distribution and plantations. Plantation of 16 ha of bamboo.

Identification of key bamboo species suitable for bamboo based enterprises Introduction of scientific bamboo treatment plant. Large scale bamboo plantations in degraded areas in the south. Adoption and promotion of technologies for bamboo processing. Explore processing and marketing of bamboo products (Furniture, construction materials) as alternative for timber. Enhance knowledge and skills in bamboo management aspects. Development of sustainable propagation harvesting methods for important bamboos (Borinda grossa)

RNR-RC; Yusipang Bamboo and cane study in Bjokha (Zhemgang)

Trial on sustainable propagation methods for bamboo (Borinda grossa)

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RNR-RC; Bajo Formation of bamboo and cane management group in Bjokha (Zhemgang) Weaving centers/stalls for joint ventures established Inventory for Yula and cane in Bjokha (Zhemgang) Training on product (Bamboo and cane) diversification in cooperation with MTI Resource inventory of bamboo in Wamanang (Trashiyangtse) RNR-RC; Jakar DzFO, Trongsa Cane nursery established at Jangbi Cane plantation in 3 sites ( Jangbi, Wangling and Phrumzur) MTI AMS Tarayana Foundation

Development of bamboo management plan (Wamanang, Trashiyangtse)

Continue resource inventory and preparation of management plan for cane and bamboo Establishment of cane and Yula nurseries. Link with AMEPP for MIF and bamboo marketing (Wamanang)

Development of sustainable management techiniques for Borinda grossa Resource inventory and management plan preparation of cane and bamboo Training on cane and bamboo handicraft making Formation of cooperatives among bamboo/cane artisans Marketing of bamboo and cane

Development of propagation methods and promotion of plantations of economically viable bamboos.

Plantation of cane and bamboo in Nangor, Silambi and Mongar Planned

Cordyceps
Past RNR-RC, Bajo Development of strategy and action plan for Cordyceps management in Soe (Lingshi) RNR-RC,Yusipang Explore methods for Cordyceps cultivation Study on the life cycle and biology of Cordyceps and its sustainable management Marketing of Cordyceps Product development and marketing of Cordyceps On-going

AMS BIO-Bhutan

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ITMS JDNP

Plan to export Cordy-plus Establishment of a reserve area for Cordyceps Planned

Daphne & Edgeworthia

Past FRDD Development of draft management guidelines for Daphne RNR-RC ,Yusipang Study on demand and supply of traditional paper (including inventory methodology for Daphne) Nado Incense Tarayana Foundation On-going

Use of Daphne paper for wrapping incense Supply of Daphne paper products in local market from Lotokuchu. Samtse Paper making (Lotokuschu, Samtse)

Illicium griffithii
Past FRDD Development of draft guidelines for Illicium SFD Case study on Illicium Developed management guidelines for Illicium in CFs Established Illicium nursery RNR-RC, Whenkhar Harvested 3 kg of Illicium RNR-RC, Yushipang BIO Bhutan Looking for marketing potential of Illicium (samples sent to potential buyers) On-going Planned

Collection, utilization and domestication of star anis

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Incense
Past MTI Study on incense industry in Bhutan Nado Incense JDNP Marketing of incense sticks and powder (17 incense factories in Bhutan) Plantation trial on Tongue and Manu Production increase Limited export Set up of white sandelwood plantation in Gelephu On-going Planned

Formation of farmer groups Impart skills on harvesting and packaging of raw materials Plan to export incense sticks Planned Reduction of firewood use by alternative testing for lemon grass distillation Value addition on lemon grass Training and study tour

ITMS

Lemon grass
Past MTI Distribution of 172 distillation units (EODP) RNR-RC, Bajo Sensitization of Dremitse geog and lemon grass distillers on CBNRM for lemon grass areas Formation of lemon grass group (by-laws) in Dremitse, Mongar RNR-RC, Wengkhar Bio Bhutan On-going Essential oil development program -support to lemon grass - distillation industries Formation of lemon grass cooperatives Development of lemon grass management plan in Dremitse geog, Mongar (draft management plan ready) Resource mapping of lemon grass Research on impact of fire and harvesting techniques on lemon grass resources Long term observation trial for fire impact study Marketing of lemon grass oil (organic certified in Jan, 2006) Looking for market potential of Cympopogan distans (samples sent to potential buyers) Linkage with Dozam CF for lemon grass oil production and providing technical and marketing

Initiate cultivation of lemon grass

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 AMS Past FRDD Documentation of guidelines for Acorus and Picrorhiza MTI (EODP) Lab research on Artemisia oil ITMS About 600 medicinal plants identified in Bhutan Market survey completed in Thailand, Singapore, Hongkong, Germany and UK BIO Bhutan RNR-RC, Yusipang

support to the CF Product development and marketing of lemon grass oil spray Marketing of lemon grass

Medicinal plants
On-going Planned

Using 267 med. plants (85% of plant material collected in Bhutan) Standardization of raw materials + finished products (expiry date fixation) MoH is the sole customer (no export at the moment) Scientific validation of traditional medicine; botanical nomenclature and pharmacological analysis Pharmacognostical and phytochemical analysis; including extraction, isolation and identification of bio-active phytochemicals Product development: OTC, fragrance, cosmetics and toiletries, health promoting and nutraceuticals Monitoring quality of finished products and raw materials Operational research: survey and documentation of medicinal plants, local healers practices and hot springs in Bhutan Looking for market potential of Ruta and Acorus (samples sent to potential buyers)

Enhance development of products for domestic and export market Extraction of medicinal plants Identified Bhumthang as an alternative collection site for high altitude MAP Contract manufacturing of products (outside) Management information system and data base on medicinal plants and products

Collection, utilization and domestication of Emblica officinalis

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JDNP MAP Cultivation of many medicinal plant species

Establishment of herbarium of all medicinal plats collected from the park Resource inventory document of high altitude medicinal plants Planned Establishment of regional branches of NMC Appointments of mushroom inspectors in the market Opening of field offices in the districts

Mushrooms
Past National Mushroom Centre AMS Marketing of mushroom RNR-RC, Wengkhar RNR-RC, Bajo On-going Breeding mushrooms from wild collection Processing and product development Domestication of wild mushrooms Production of spawn Development of cultivation packages for mushroom growers Training on sustainable harvesting of wild mushrooms, life cycle and ecology Surveys on mushrooms sold in the market Awareness creation about poisonous mushroomstraining for farmers and extension agents Training on mushroom cultivation for growers Maintenance of mother stock Studies on mushrooms (about 200 species identified sofar)

Tissue culture of wild mushroom mycelium Formation of groups for matsutake management at Genekha Training on sustainable harvesting of matsutake at Genekha Collection , utilization and domestication of Musutake

RNR-RC, Yusipang Study on impact of Musutake collection on resources and economy

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RNR-RC, Jakar

Collection, identification and preservation of wild mushrooms Study of ecology of endangered mushrooms Documentation of wild mushrooms in Bhutan Forest management to enhance mushroom production Study on adverse impacts of wild mushroom collection Development of strategies to protect symbiotic mushroom

Tissue culture and select wild mushroom mycelium for commercial use continue on going activities

Pipla
Past FRDD Development of draft management guidelines SFD Establishment of CF site for pipla management. RNR-RC, Jakar Develop guidelines for sustainable harvesting and management Socio-economic study on pipla production in Zhemgang RNR-RC Bajo Awareness raising on conservation and sustainable management of Pipla in Nanglam (S/J) Assessment on Pipla resource availability in Nanglam (S/J) RNR-RC, Wengkhar In-situ management of Pipla at S/J Bio Bhutan Organic certification for Pipla (stopped because there is no market) MTI Development of pipla management plan Finalization of Pipla Management plan Trial on drying and packaging equipments for Pipla On-going Planned

Revive marketing efforts for Pipla from Nangkhor Development of health products from Pipla Oil extraction of Pipla

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Swertia chiryata
Past RNR-RC, Wengkhar Document on ecology and management of Chiraita RNR-RC, Bajo On-going Planned

Resource inventory for preparation of management plan for Chirata (in Samdrupjongkhar)

Development of marketing strategies for Chiraita in cooperation with AMEPP Research trial on in-situ management, domestication and processing of Chiraita Community group formation for Chiraita management in S.Lauri, Samdrupjongkhar Development of Chirata management plan

AMS Bio Bhutan

Marketing of Chirata Looking for marketing potential for Chirata (samples sent to potential buyers)

Other NWFPs
Past MTI (EODP) Lab research on silver fir oil, blue pine oil and on juniper oil AMS RNR-RC, Yusipang RNR-RC, Wengkhar BIO Bhutan DzFo, Trongsa Tarayana Foundation ITMS Looking for marketing potential of ginger and red rice (samples sent to potential buyers) Establishment of orchid garden Use of vegetable dyes On-going Planned

Marketing of resin Development of fern arboretum (20 species) Collection, utilization and domestication of Boehmeria Domestication of important NWFPs such as Boehmeria and Emblica spp

Nettle plant management Establishment of vegetable dye plantation Plan to export herbal teas and herbal elixirs

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Table 3: Identified issues, needs and challenges for the further development of NWFPs (not listed in priority order)
Institutional environment and Policy Clear institutional arrangement needed. Clear comprehensive policy framework for the use of NWFPs is required Need for intellectual property rights to prevent bio-piracy and intellectual piracy. Need for developing framework for NWFP management and preparation of NWFP management plans. Development of NWFP master plan required Development of NWFP strategy for poverty reduction Need for strong co-operation and collaboration within division, institutions, agencies, NGOs and other stakeholders. Strong collaboration required to be built with NITM. ITMS needs collaboration at all levels including sustainable collection, production, R&D and IPR Identification of lead agencies to follow up and execute NWFP plans. Collaboration /linkages with international institutes, organizations and projects on NWFPs. Improve collaboration with international organizations on artificial agarwood inducement program. Create awareness on government policies and regulations on NWFPS. Lack of trained personnel in NWFP management and development. Build capacity in mushroom management with specific position titles. Provide legal support to utilize and market NWFPs. Encourage private entrepreneurs. Create NWFP knowledge bank. Access to information on NWFPs NWFP management should to be decentralized Resource Management Inventory for monitoring NWFP resource base required. Studies on applied harvesting techniques and effect on regeneration. Need biometric formula for the quantification of available NWFPs. Need for more harvesting and management guidelines of NWFPs No complete silvicultural data available for sustainable harvesting of NWFPs. Appropriate management plans are needed for potential NWFPs, including guidelines for harvesting, marketing, domestication etc.., Need for fire prevention in lemon grass areas. Need for sustainable management of lemon grass resources. Develop harvesting and management guidelines for commercial NWFPs. Need for studies on requirements, ecology and utilization practices of NWFPs. Develop and adopt inventory methodologies for important NWFPs and mainstream NWFP in forest planning and management process. Quantitative data on areas and volumes of potential products. Many potential NWFPs remain unexplored Creation of herbarium. Collection of germplasm.

Marketing Study of value chain analysis required. Need for studies on market linkages and outlets for forests products. Formation of groups of CFs/associations to market NWFPs in required volumes. Government should support marketing of products. Encourage private entrepreneurs to grow NWFPs. Inventory/identification of potential NWFPs for commercial or cottage business is needed. Identification of NWFP value added products in order to develop NWFP viable enterprises. Develop marketing opportunities for commercial NWFPs. Explore opportunities for marketing commercial NWFPs. Facilitate certification of products Analysis of potential and constraints of value addition is needed. Marketing strategy should be developed. Incense product development and export marketing. Competition for raw materials growth of plant based industries. High production costs due to high labor and transportation costs. Storage facilities required for off season price benefits.

29

Posting of mushroom experts/trained personals in the districts or geogs. Establishment of regional mushroom units in other regions. NWFP yet to be mainstreamed in forest planning and management process Inspection of wild mushroom sold in the local markets. Health policy to extend traditional medical care to all geogs in Bhutan. Material transfer act of Bhutan should be dynamic (not rigid). Review and simplifying of procedures for getting harvesting permits is required. Permits seeking process should be easy and fast. Clarification of permits process (approach who and where). Need for more flexible rule to juniper and increase permit allotment. Availing of raw materials for the incense factory should be streamlined and made similar to that of ITMS. Need legal support for marketing domesticated or cultivated NWFPs. Need FRDDs legal support to collect, identify and manage wild mushroom. Need facilities and expertise for carrying out analytical test of NWFPs for key chemical components. Need for institutional and capacity development at all levels. Need for R&D for medicinal products because of regulation of BAFRA and DRA to ensure safety of the public Bio prospecting and collaborative research high risk of bio intellectual piracy. Classify responsibility-need coherent policy. Clear policy frameworks in the use of NWFPs. Special grant schemes for purchase of equipment for incense industry.

Documentation of mushrooms in the regions and districts. Need for proper categorization and classification of NWFPs. Train collectors in sustainable harvesting of mushrooms. Culturing to produce improved seed and spawn. Domestication of wild mushrooms. Need database and proper management of database for NWFPs. Develop sustainable collection methods. Need for distribution maps of NWFPs. Little understanding of distribution, abundance and state of NWFP. Need for proper monitoring system to avoid over harvesting. Inventory of wild mushrooms in Bhutan. Using existing knowledge in inventories High supply of raw materials needed for NITMS to meet requirement and up scaling. Training on cultivation and domestication of agarwood , sandalwood and other NWFPs. Cultivation of NWFPs with high potential. Support needed for domestication of medicinal plants. Promote domestication of economically important NWFPs. Cultivation of mycorhizal mushrooms. HRD-Trainings to TDs, Parks, DzFOs on inventory methodology and harvesting guidelines

Lack of expertise and facilities for carrying out analytical tests of products. Post harvesting management and processing of mushrooms required. Need to link products to markets. Group sales to traders at standard prices. Better export prices of raw materials may have adverse implications to production costs. Little known about market access of NWFPs. Lack of information on available volumes and quantities of products. Studies on market linkages and outlets for forest products. Lack of processing expertise and facilities for value addition (including packaging materials). Processing of existing raw data for market information. Lack of business experience among Bhutanese farmers. Entrepreneurship development skills Process and develop commercial NWFP products (value added products). Assessment of impacts of NWFPs on rural economy

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The cross-cutting issues that were identified include: capacity building, research, collaboration and coordination. Furthermore, it was recognized that there is a need to make a proper identification list of the NWFPs in Bhutan. This list should include both local and scientific names. At the moment there seems to be a number of mistakes in the lists that circulated. A proper identification is the basis for research but also for marketing as scientific names are indispensable in the international correspondence.

3.3

Action plans

During this session, action plans were developed based on the issues that were identified within the three themes of policy & institutions, resource management and marketing. First the issues were categorized and then the activities to address the main issues were identified. The cross cutting issues were considered within each theme. For the development of the action plans, participants were asked to consider the issues and identify interventions, lead agencies, collaborating agencies and the time frame. The group work was presented in the forum and was endorsed after thorough discussions. i) Action plan related to policy & institutional enabling environment Related to the policy and institutional enabling environment a number of key guiding principles were identified that form the basis for the development of the NWFP program. The issues were put together in categories and the following activities came out to address them after the guiding principles were identified. Guiding principles 4. Existing policy, legal and regulatory frameworks should form the basis for further development of NWFP program. 5. NWFP harvesting should be based on resource availability and sustainable management principles and should not be market driven. 6. Resource utilization should be community based and not be individual-based. The group working on the policy issues stressed the importance of the guiding principles. Bhutan is a unique country still rich in biodiversity. In order to safeguard the natural resources of the country it is important that the existing policy framework forms the basis for the further NWFP development. Harvesting permits will thus only be issued if exploitation is sustainable, depending on the available resources and NOT based on market demands. In order to ensure that poor communities can equally benefit from the potential of NWFPs, it was recommended that resource utilization should be community based and not based on individual efforts.

31

Main activities 1. Creation of awareness of government policies

Lead agency DoF/FRDD

2. Creation of NWFP information and FRDD database 3. Creation of NWFP division within the DoF 4. Institutional collaboration and networking 5. Development of a national NWFP management strategy 6. Incorporation of NWFPs in forest management planning and process 7. Establishment of linkages with international institutes and projects on NWFPs 8. Development of HRD plan for NWFPs DoF FRDD/ MTI for licensing FRDD FRDD DoF DoF

Collaborating agency ICS/ stakeholders/ media, implementers All agencies National and international MoA and RCSC All stakeholders All Stakeholders Stakeholders Institutions and projects HRD/MoA

Time frame Continuous Continuous Proposal to be put up immediately Continuous One year Continuous Continuous One year

ii) Action plan related to resource management

Main activities 1. Listing of priority NWFPs per districts based on a set of criteria Lead Agency FRDD Collaborating agency All stakeholders, incl. RNR-RCs, DoF, TD, Parks, DzFOs, ITMS, MTI, NGOs, NMC, Private sector, local communities, AMS Stakeholders (incl see above and RSPN, NBC) TDs, DzFOs, Parks, ITMS, RNR-RCs, MAP Time frame By Feb. 2007

2. Preparation of a distribution map showing the key areas of prioritized NWFPs based on existing knowledge 3. Inventory development of inventory methodologies and harvesting guidelines field inventories and resource assessments analysis of sustained harvests 4. Development of management plans for priority species in

FRDD

By Dec. 2007

FRDD, SFD, RNR-RC Bajo (CBNRM)

FRDD

TDs, DzFOs, Parks, ITMS, RNR-RCs, MAP

Drafts for inventory methodologies and harvesting guidelines for 6 species by Dec. 2007 Continuous

32

key areas 5. M&E, including monitoring the impacts of utilization on the resource base 6. Research on regeneration and domestication of selected NWFPs 7. Training on NWFP management

FRDD RNR-RCs/ NMC/others RGoB/ Projects/ NGOs

TDs, DzFOs, Parks, ITMS, RNR-RCs, MAP FRDD

Continuous continuous

continuous

The group on resource management developed furthermore a very tentative list of priority NWFPs including: Cordyceps, Bamboos, Canes, Lemon grass, Mushrooms, Juniper, Swertia chiryata, Agarwood, Daphne, Edgeworthia, Curcuma aromaticum, Terminalia chebula & T. bellerica, Rubia cordifolia, Aconitium spp., Orchids, Viscum spp., Piper (pani), Illicium, Aesandra diploknema, Rhus spp., Xanthoxylum (thignay), Juglans regia, and 2 species of Rododendron. It was further decided that FRDD will finalize the list in collaboration with stakeholders (or consultations) and prioritize species based on a set of criteria per district. Criteria should reflect the marketing opportunities, comparative advantages, own consumption & food security as well as conservation issues. In the discussions that followed on resource management issues, many concerns were expressed about the timeframe for the development of inventory methodologies, sustainable harvesting guidelines and the overall framework for sustainable management. It was felt that a lot of time would be lost in this way and therefore marketing opportunities might be lost as well. It was stressed that resource assessments are needed in order to ensure the sustainable utilization of NWFPs, to safeguard Bhutans rich biodiversity and to keep a forest cover of 60% for all times to come as is said in the constitution. Therefore the development of inventory methodologies, which to a large extent need to be developed for individual species separately, is essential because of the nature of NWFPs (different life forms, different parts of plants, sometimes difficult to detect, seasonality, and scattered/and or clumped distribution). A number of organizations/projects have already developed inventory methodologies (for example MAP program for a number of medicinal plants, CBNRM project for some cane and bamboo species and Swertia chiryata, and RNR-RC Yusipang for Daphne and Edgeworthia). Strong collaboration is thus needed to make best use of these efforts for the further endorsement of the developed methodologies by the Department of Forests.

33

iii) Action plan related to marketing

Activities Lead Agency Collaborating agencies FRDD, DOA & other stakeholders; (ICS would be the partner to launch MIS on the website) Time frame Database finalized by July 2007; MIS on the website by December 2007; Establishment of regional centers as soon as the infrastructure is in place; Establishment of district MIS/service centers within the 10 FYP On-going On-going

AMS 1. Development of NWFP marketing information system & services Identify NWFP that should be in MIS Development of database (icl. how to gather, how to use and how to access) Information gathering about prices & cost, quantities, buyers, source, channels Market information on the website Establishment of regional marketing services/information centre Establishment of district market information/ service centre 2. Identification of products through value chain analysis 3. Inventory/identification of potential NWFP for commercial or cottage business 4. Studies on market linkages & outlet for forest products 5. Development of marketing strategy 6. Development of enterprises AMS AMS

Stakeholders/FRDD Stakeholders/FRDD

AMS, MTI

7. Development of standard AMS/ DRA for protocols in order to set med. products standards 8. IPR & contract Private sector manufacturing & stakeholders 9. Facilitation of certification AMS & MoA, MTI, DRA/FRDD of products stakeholders 10. Product development Concerned AMS/FRDD through further processing stakeholders 11. Facilitation in marketing/ AMS Stakeholders/FRDD training Note: ITMS marketing/ product development of medicinal plants/products; standards set by DRA

Stakeholders, Govt. agencies/FRDD Stakeholder/FRDD, Govt. Agencies, (BAFRA implements) AMS, MTI/FRDD

34

Related to marketing, it was emphasized that Bhutan should focus on those NWFP species and commodities, which have a comparative advantage and address a niche market. Because of the relatively high production costs (mainly due to the high labor and transport costs), Bhutan will be unable to compete with countries such as India and China where production costs are low. The selection of NWFP species and commodities should thus be analyzed carefully in order to avoid situations where people have a product but cannot sell it for a desirable price or cannot sell it at all.

Conclusions
This workshop was the first in its kind on NWFP development. People from all levels and sides of the country came together to share their experiences, past, on-going and planned activities and the challenges/issues they face related to NWFP development. The evaluation at the end of the workshop showed that all participants highly appreciated the workshop and it was felt that such a workshop should be regularly organized. The workshop provided a good forum to share where we are at the moment. Based on the presentations of the organizations and further contributions of the participants, a matrix was developed showing the experiences of the organizations per NWFP species/commodity. This matrix helps to get an overview and understanding which organizations are working on which NWFP species and commodities. The matrix shows that a lot of work is currently undertaken related to certain NWFP species, at the same time it also shows gaps and potentials for collaboration on species work. The challenges and issues faced by the organizations were divided in three main themes: policy & enabling institutional environment, resources management and marketing. Furthermore a number of cross-cutting issues were identified, related to capacity building, research, cooperation and coordination. Action plans were developed for these three themes based on the identified issues. Related to the policy & enabling institutional environment, three guiding principles were identified that should guide the further elaboration of the NWFP program: 1. Existing policy, legal and regulatory frameworks should form the basis for further development of NWFP program. 2. NWFP harvesting should be based on resource availability and sustainable management principles and should not be market driven. 3. Resource utilization should be community based and not be individual-based. In order to safeguard the natural resources of the country it is important that the existing policy framework forms the basis for the further NWFP development. Harvesting permits will thus only be issued if exploitation is sustainable, depending on the available resources and NOT based on market demands. In order to ensure that poor communities can equally benefit from the potential of NWFPs, it was decided that resource utilization should be community based and not based on individual efforts. 35

Related to the resources, the action plan emphasizes the importance of inventories, resource assessments and harvesting guidelines to ensure the sustainable utilization of NWFPs. A number of organizations/projects have already developed inventory methodologies. Strong collaboration is thus needed to make best use of these efforts for the further endorsement of the developed methodologies by the Department of Forests, in order to guarantee a wider use. The action plan developed on marketing stressed the need to look at comparative advantages as Bhutan is unable to compete with neighboring countries such as India. Bhutan should focus looking at niche markets and niche products in order to make the best use of its resources. The developed action plans should be considered as a starting point for the further development of the national NWFP strategy. It was realized that for the further elaboration of the NWFP strategy more meetings related to a certain theme with the focal people would be required. However the outcomes of the discussions form a very good basis for a comprehensive NWFP strategy which relates to multiple sectors.

36

Appendix 1: Papers presented by participants

1. Hikojiro Katsuhisa, 2006. A strategy analysis for the development of NWFPs in Bhutan - based on the report prepared by C. Chandrasekharan, Forest Products Service FAO 2. Sonam Peldon, 2006. Development of NWFPs in Bhutan. FRDD, DoF, MoA 3. Prabhat Kumar Mukhia, 2006. NWFP programme taken up within the community forests of the country. SFD, DoF, MoA 4. Raling, Ngawang Drukdra, 2006. Nature Conservation Division (NCD) related to NWFPs. NCD, DoF, MoA 5. Gyem Tshering, 2006. NWFPs-Forest Development Corporation Limiteds (FDCL) perspectives. FDCL, MoA 6. Sangay Chewang, 2006. NWFPs - Agriculture Marketing Services. AMS, MoA. 7. Dorji Wangdi and Galey Tenzin, 2006. NWFP workshop presentation. MTI. 8. Kunzang Choden, 2006. Forest Research Program, in development of NWFP Sector in Bhutan. RNR-RC Yusipang & RNR-RC Wengkhar. MoA 9. D.B. Chettri, 2006. Research activities on NWFPs. RNR-RC Jakar, MoA 10. Dorji Wangchuk, 2006. Wild mushroom, an important NWFP in Bhutan. RNRRC Jakar, MoA 11. Sangay Duba, Dil Maya Rai and Purna B. Gurung, 2006. Community Based Natural Resource Management of NWFPs. RNR-RC Bajo, MoA 12. Dawa Penjor, 2006. Wild mushroom management. National Mushroom Center, MoA 13. Phurba Wangchuk, 2006. Processing and utilization of NWFPs by Menjong Sorig Pharmaceuticals, ITMS 14. Chimmi Pelmo, 2006. NWFPs. Nado Incense Factory 15. Karma Yangzom, 2006. Bio-Bhutan: Itss Role in Marketing NWFPs. Bio-Bhutan 16. Ugyen Dorji, 2006. NWFPs in the Forest Diploma Program. College of Natural Resources, Lobesa 17. Dechen Dorji, 2006. NWFPs. Ugyen Wangchuk Institute of Environment & Forestry Service, Lamegonpa, Bumthang All above papers were prepared for the workshop on NWFP development in Bhutan on 5 & 6 December in Thimphu based on an outline provided by FRDD.

37

A strategy analysis for development of NWFPs in Bhutan - FAO

Based on the report prepared by C. Chandrasekharan, presented by Hikojiro Katsuhisa What are non-wood forest products? NWFP consist of goods of biological origin other than wood, derived from forests, other wooded land and trees outside forests. NWFP issues widely acknowledged Lack of quantitative information on production, consumption and trade Lack of awareness, policy and regulatory instruments Lack of resources inventory to support proper planning Lack of appropriate management prescriptions for most NWFPs, integrated with wood products or otherwise Concern for forest degradation and biodiversity Unclear rights and privileges on NWFPs by local communities Insufficient benefit shared by local producers Effectiveness of NWFP certification Weak institutional capacity in most developing countries

NWFP in Bhutan Weakness & Constrains: Resource related Management related Products and production related Market related Technology related Information related Infrastructure related Institutions related Strengths: Forest resources comparatively in good condition Rich diversity in NWFP Potential for NWFP based economic growth Governments eagerness to develop the NWFP sector Huge markets at its door step Image of Bhutan

38

Information compiled on removal of NWFPs in Bhutan

Source: FRA 2005, Bhutan country report

39

32 most priority NWFP (Mukhia, 2006): 1. bamboos and canes; 2. fruits of Illicium griffithii; 3. fruits/spikes, roots and stems of Piper longum; 4. fruits/spikes, roots and stems of Piper peepuloides; 5. fruits/spikes of Piper pedicellatum; 6. leaves and roots of Piper hamiltonii; 7. roots/entire parts of Rubia cordifolia; 8. soft broom from Thysanolaena maxima (broom grass); 9. wild edible mushroom e.g. Tricholoma matsutake, Morchella esculenta, Cantharellus cibarius, etc.; 10. entire parts of Swertia chirata; 11. entire parts of Cordyceps sinensis; 12. roots/root stocks of Nardostachys jatamansi; 13. wild vegetable like Diplazium spp. Elatostema spp. Cybidium hookerianum; 14. young shoots and roots of Asparagus spp.; 15. wild fruits/nuts of Juglans regia; 16. root of Innula helenium; 17. root of Saussurea lappa; 18. bark and root bark of Cinnamomum zeylanicum; 19. bark/fibre of Daphne and Edgeworthia spp.; 20. bark of Persea spp.; 21. roots of Pouzolzia spp.; 22. bark and leaves of Taxus baccata; 23. entire parts of Viscum nepalense; 24. root of Rauwolfia serpentina; 25. tubers of Dioscorea belophylla; 26. leaves and twigs of Juniperus squamata; 27. roots of Acorus calamus; 28. leaves and twigs of Rhododendron anthopogun; 29. leaves and twigs of Rhododendron setosum; 30. roots of Aconitum spp.; 31. fruits of Emblica officinalis; 32. roots of Neopicrorhiza kurrooa 20 priority NWFPs for increasing management attention (FRDD/DoF, 2003)

40

High-value low-bulk NWFP Cordiceps sinensis Matsutake mushroom Agarwood -------------------------

Cordycep Cordyceps products

Matsutake

Agarwood products

41

Japans imports of matsutake Quantity (kg)

Bhutan Q 2002 424 China V V Q 3 996,789

Value (1,000,000 yen)

Korea Q V DPRK Q V Morocco Q Canada V Q 66 208,130 V USA Q V 413

4,909 229,058

2,851 502,430

1,894 12,498

1,084 72,952

2003 1,927 7

1,118,832

5,576 146,841

2,073 283,655

971

20,194

85 370,840

1,355 182,020

752

2004 153

1,271,476

6,582 107,467

1,547 282,712

991

6,550

27 426,731

1,385 195,443

698

2005 1,663 7

1,655,252

6,680 128,369

1,678 783,158

1,659 8,433

49 120,589

587

108,310

566

Diagrammatic Illustration of a System for NWFP Development

Subsistence consumption

Resource Assessment

Resource creation / enhancement

Harvest

NWFP resource

Commercial use

Post harvest treatment (refrigeration) and transportation

Primary processing

Further processing

Final consumption (Market)

Consumption (Market) NWFP resource managers/ producers

Consumption (Market)

Information flow

Information flow

42

Promotion of NWFPs: rational steps Screen the potential NWFPs for their suitability to be grown under the specific local conditions and for their desired uses. Identify and decide on priority NWFPs based on their comparative advantages and merits. Species yielding high value produces which can be easily processed or pre-processed, with potential for higher income should normally be preferred. Adopt appropriate system of resource management, based on proper land use planning and cropping technology, ensuring market-orientation and competitiveness. Improve harvesting, including pre-harvest treatments and related systems. Enhance technological capability, equipment and skills; identify and bridge knowledge gaps. Emphasis here should be on productivity gains. Promote facilities for post-harvest treatments including storage and transportation. Undertake product development, value chain investment and value-added processing. Encourage local entrepreneurship and participatory enterprises. Ensure access to market information. Diversity production (producing a reasonable number of different NWFPs) and market (as well as end-uses), to hedge against price and market fluctuations. Reform NWFP related institutions and legal instruments. NWFP-related field projects implemented by FAO: Laos Marketing system development for NWFP PNG Eaglewood management project Cameroon Appui institutionnel et gestion durable des produits forestiers non-ligneux Central Africa Enhancing food security through NWFP in Central Africa Central Africa Mobilisation et renforcement des capacits des petites et moyennes entreprises impliques dans des produits forestiers non-ligneux en Afrique Centrale Gambia Community-based enterprise development Market Analysis and Development (MA&D) The Market Analysis and Development Methodology (MA&D) is a comprehensive framework that builds the capacity of users of natural resources and local institutions to identify and develop viable enterprises based on natural resources products Strengths of MA&D: Flexible, participatory and gender sensitive approach Supports capacity building on different levels to develop commercially viable and environmentally sound enterprises Systematically includes market, environmental, social/institutional and technical aspects in identification and planning of enterprises Promotes increased access of small-scale entrepreneurs to business development services at all levels

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Builds up strategic alliances between local enterprises and markets, micro-finance providers, private sector, supporting governmental institutions, etc.

Understanding the value chain Phase 1: Assess the Existing Situation. List existing resources and products and identify local people interested in developing enterprises Phase 2: Identify Products, Markets and Means of Marketing. Identify potential markets and resources by local people. Organise stakeholder meetings. Identify opportunities and constraints to select promising NWFP products. Phase 3: Plan Enterprises for Sustainable Development. Prepare enterprise strategy and business plans. Entrepreneurs are guided through a pilot phase and training, learn to monitor progress and to adapt when change is needed. FAOs assistance to the NWFP sector in Bhutan FNPP project National Forest Programme Facility TCP

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Development of NWFPs in Bhutan - Forest Resources Development Division

Prepared and presented by Sonam Peldon Introduction NWFPs cover a wide range of products such as Forest vegetables, Fruits& nuts, Forest food crops, fodder, bamboo& cane, medicinal plants, dyes, spices, ornamental plants, resins& oils, honey, etc. These NWFPs confirm the important components/ ingredients for paper, furniture, incense sticks, medicines, cosmetics, teas etc. Until now 216 Medicinal plant species, 97 Mushroom species, 97 Fruits& nuts, 50 Bamboo Species, 14 cane species, 25 oil/resin species, 20 spices, 38 fibers, 70 ornamental plant species, 181 fodders, 36 dyes, 12 food crops(yams) and 77 Forest vegetables have been identified in Bhutan. The nature of NWFPs thus greatly vary and includes different life forms as for example trees (star anis and agarwood), herbs (many medicinal plants), climbers (yula etc.) ,shrubs, fungi/ caterpillars (cordyceps), orchids as ornamental plants, leaves, stem roots, plant exudates. Due to the diverse nature of NWFPs, its management differs to a large extent from Forest Management for Timber products and needs to be product/ species specific. Although everyone realizes the importance of NWFPs, NWFPs have not been studied to the extent that it should have been. As of now, the available information on NWFPs is limited to a few species and is applicable only in few pockets of the country. In order to further develop the NWFP sector, it is therefore essential to bring together the major NWFP stakeholders and share existing experiences, results & impacts and information needs and coordinate further activities. Therefore, one needs to look beyond the timber from the forests. It is needless to say that, the forest products are very important to the local population for subsistence use some NWFPs have, while other are of a high commercial importance such as Cordyceps.. Some earn substantial foreign exchange, while others give employment opportunity to the persons engaged in cottage industries utilizing them as for example in Bamboo handicraft and Incense factory. Several studies on NWFPs in general and on some specific NWFP species have been conducted by a number of organizations. One of the major studies that provide an overview of the NWFP sector in Bhutan is just concluded by Mr. Chandrasekharan on behalf on FAO/WWF. This study gives an overview of the strengths, weaknesses and challenges and proposes 10 strategies for the further development of the NWFP sector in Bhutan.

45

Role of FRDD in relation to NWFP development I. In co-ordination with relevant agencies, develop a National Non-wood Forest Products Management Strategy II. Carry out NWFP Resource Inventory III. Developing appropriate methodologies for conducting inventories of important NWFPs in the country, including collaborative actions. IV. To establish a framework for the further cooperation and coordination among stakeholders in the NWFP sector in Bhutan Establishing a linkage with the various stakeholders and share information and to ensure that there is no duplication of the activities carried on by various stakeholders. V. Understanding of existing experience in NWFP management and development As of now, there has been no detailed inventory carried out for all the major NWFPs in the country. FRDD, on its part, has so far compiled a list and current uses of almost all the NWFPs used in 11 Dzongkhags. Given the extent of information presented in the report, it will form a good starting point to prioritize the list of NWFPs in various Dzongkhags and eventually come out with a final list of NWFPs that will be selected for detailed inventory and subsequent preparation of management guidelines. VI. Understanding of the challenges in NWFP management Due to heterogeneity of products and differences in the distribution pattern, inventory/assessment methods for NWFPs are very different. VII. Provide technical backstopping in issues related to NWFP VIII. Identifying the existing potential threats and opportunities of NWFPs in Bhutan and the recommendations and strategies for sustainable management IX. Developing Management Guidelines for priority NWFPs in the country focusing on sustainable management. Based upon the inventory information and consultations with various stakeholders, FRDD will develop management guidelines for the targeted NWFPs. Therefore, the guidelines will need to be discussed thoroughly and various trainings should be conducted at the community and national level to ensure that the guidelines are well transmitted and understood by various stakeholders. Past NWFP Activities Till date the national NWFPs survey (availability and uses of different NWFPs) for 11 Dzongkhags (Thimphu, Paro, Haa,Punakha, Wangduephodrang, Gasa, Dagana, Tsirang, Chukha, Samtse, Sarpang) has been finished by the NWFP Section of Forest Resources Development Division (FRDD). Management guidelines on Bamboo,Pipla, Daphne, Acorus& Neopicrorhiza, and Illicium has been developed based on literature review but are not yet tested in the field. Preliminary survey on Cane has been conducted in Chukha Dzongkhag. 46

Prioritization of 20 important NWFP species (Lemongrass, Daphne, Bamboo & Cane, Illicium spp., Masutake, Pipla, Viscum spp., Swertia chirayita, Artemisia, Juniper, Rhododendron spp., Orchids, Phyllanthus emblica, Neopicrorhiza scrophulariflora, Symplocos paniculata, Terminalia spp, Canarium sikkimensis, wintergreen, Cordyceps sinensis) based on the review of the feedbacks from various stakeholders. Prioritization was also based on the species for which inventories need to be made: Species that are used in large quantities for own use or market and are prone to become depleted - Species that have a high potential for further development and export - Species for which harvesting permits have been requested Low priority was given to the species that are used domestically and are found abundant in the locality.
-

Ongoing NWFP Activities The ongoing activities are the literature review of existing NWFP document that had been published by different agencies. Review and analysis of existing NWFP experience of inventory methodology and harvesting guidelines. FRDD and NWFP advisor is in the process of developing inventory methodology for bamboo. Challenges There is no linkage among the various stakeholders and thus, the lack of cooperation and exchange of information and experiences. A network of information system has to be developed among the Government agencies and also with the various stakeholders. With most NWFPs, the resource base is unknown and as a reason harvesting permits are limited. The existing Management Plans for FMUs, Parks and Community Forest have not incorporated the importance of NWFPs with management prescriptions. The control of NWFP is based on permits and there is no scientifically derived Annual Allowable Cut (AAC) to support harvesting regulations. There is no quantitative analysis of most NWFPs and the study carried on so far has been based on qualitative assessments. Inventories and quantitative assessment will be difficult especially for those NWFPs which cannot be detected easily in the field e.g. Cordyceps and Masutake. NWFPs unlike Timber vary in their Management requirements, what is applied for wood cannot be applied for NWFPs. Moreover, what is applicable to one NWFP may not be suitable for another. Because of its nature, different life forms, different parts of plants, sometimes difficult to detect, seasonality and different distribution pattern (scattered/clumped etc) inventory methodologies need to be species specific. So the inventory methodologies need to be developed for each NWFP species. The stringent conservation laws are not always suitable/ practically e.g. collection time for Cordyceps, the season suitable in one Dzongkhag may not be suitable to other

47

Dzongkhag. The development of NWFPs does not figure prominently in National Forest Policy, 1974 and even in Forest and Nature Conservation Act, 1995. Therefore, there is a need to revise the Government policies and regulations and also high priority should be given in developing methodologies to assess an NWFP resource that is suitable for our condition. Due to high royalty rates, local people declare only part of what has been collected and this leads to false information and records. Thus, a need arises to look into the royalty rates. There is a need to bring the NWFP resources in our country under adequate management. There is a need to study the value chain analysis of NWFPs, from resource based to processing to marketing. Market for NWFP is not assured as compared to other commodities. There is a lack of access to NWFP market and market information. There is a need to study the market channels and outlets. In the current situation, too many middlemen are involved and the fair share of resources and benefits to the stakeholders are not always ensured. Market development can transform a number of subsistence products into traded goods, with substantial investment on improved technologies for production, processing and marketing. There are reports on overuse and degradation of resources locally. Over harvesting and absence of adequate management may even lead to the extinction of the NWFP species in the locality. Planned Activities (during 10th FYP) Developing appropriate methodologies for conducting inventories of the prioritized NWFP based on our conditions Developing Management Guidelines and Management Plans for priority NWFPs focusing on sustainable management and utilization Start the development and testing of NWFP inventory methodologies in the field Conducting training for FRDD staff, territorial divisions ,DzFO and Parks on inventory methodology Conducting training for farmers in identifying important NWFPs and their conservation and management techniques. Identification of NWFPs for inventories and quantitative assessments. Conduct awareness workshop to farmers Identification of Dzongkhag wise Priority NWFPs Establish a working group and conduct consultative meetings Review existing CBNRM framework and adapt for NWFPs Assessing the current legal framework for NWFP and providing recommendations for further improvement Technical backstopping in NWFP management to field staffs and also to local communities Research on domestication of NWFP sp. in collaboration with RNR-RCs Conduct NWFP case studies in different agro- ecological zones Select priority and promising NWFP sp. for pilot studies

48

Promote cultivation of over-exploited NWFP sp. Establish a national level database for all NWFPs in the country

Future Needs Information management and development Network of information system should be established within the Department and also with RNR-RC to facilitate planner, decision maker and researcher, so that there is no overlap/duplication of studies on any NWFPs. Information on NWFPs are limited, particularly in terms of its biology, use patterns and potential for marketing both domestically and internationally are currently limited in Bhutan. Appropriate methodologies for conducting inventories for the prioritized NWFP needs to be developed based on our conditions. Inventory methodologies needs to be developed for each NWFP species because of its nature, different life forms, use of different parts of plants, seasonality and different distribution pattern and moreover inventory methodologies needs to be species specific. Capacity building

The need for capacity building is central to the success of sustainable management of NWFPs in the country. Right from taxonomy to cultivation or collection from the wild are important topics that need to be addressed as part of the overall capacity building strategy. The technical staff, particularly in the Department requires both on the job training and also further specialized training in NWFP management and development. Since NWFPs are mostly community (rural) based activity, capacity building programs should also include rural communities in the overall management and marketing of NWFPs, Human Resource Development on the community level (e.g. Local Enterprise Development, participatory monitoring of resources etc.) Trainings and skill development programs for communities will ensure that the resources are managed sustainable and the benefits are accrued equitably within the communities. Simple but effective management guidelines and monitoring programs will be key essentials in enhancing the management of NWFPs on a sustainable basis. The skills need to be strengthened in the Management of NWFP among the stakeholders to build up a community capacity so that they will be able to recognize and prioritize the commodity that will contribute to their income. Study on Value Chain Analysis

Need for a proper market channel so that there are no middle men involved and also to ensure that the stakeholders have their fair share of resources and benefits. Market development can transform a number of subsistence products into traded goods, with substantial investment on improved technologies for production, processing and marketing.

49

Study on the market channels must be done so that there are no middle men involved and also to ensure that the stakeholders have their fair share of resources and benefits. Thus, the markets for NWFPs are assured. Effective management guidelines and monitoring programs needed

Effective management guidelines and monitoring programs will be key essentials in enhancing the management of NWFPs on a sustainable basis. In the absence of adequate management, over harvesting of selected species may result to depletion of stock and even extinction of such species. Need for developing a framework for NWFP management and develop guidelines for NWFP management so that getting harvesting permits will be simplified and provides guidelines to the planner about writing a management plan for NWFPs. List of Publications:

Non Wood Forest Products, a Report on Thimphu and Paro Dzongkhags, October 1998 Preliminary Survey Report on Cane of Chukha Dzongkhag, December 2000 Non Wood Forest Products, a Report on Haa Dzongkhag, May 2001 Non Wood Forest Products in Gasa, Punakha and Wangduephodrang Dzongkhags a Report, August 2001 Twenty Important Non Wood Forest Products of Bhutan, January 2003 Prioritization of 20 important NWFP Species Report on Non Wood Forest Products of Dagana and Tsirang Dzongkhags, April 2003 Management Guide for Acorus and Neopicrorhiza, December 2004 Report on Non Wood Forest Products of Chhukha, Samtse and Sarpang Dzongkhags, March 2005 General Guidelines for Management of Bamboo in Bhutan, July 2005. Notes on the Management and Export of Aconitum, July 2005. Management guidelines for Illicium griffithii and Piper longum of Bhutan, 2005

50

NWFP programme taken up within the Community Forests of the country - Social Forestry Division
Prepared and presented by Prabhat Kumar Mukhia Introduction There are 37 Community Forests (CF) established till date in the country. Within CF(s) the most prominent Non Wood Forest Products (NWFP) available are Bamboos, Canes, Daphne, Piper, Chiraita, Illicium, Mushrooms and other wild vegetables, tubers, medicinal plants, edible fruits, etc. which are of economical importance for income generation. The NWFP, either from outside or inside of CF contribute considerable support to the livelihoods and sustenance of many rural communities in Bhutan. The availability of such products indicates the reliance on NWFP by poorer communities is indispensable, particularly during the lean agricultural season for generating monetary income and supplementing their general dietary requirements. Even though of its importance, NWFP have not been studied to the extent that it should have been within the CF, so there is no comprehensive database for CF NWFP in the country. The wide range of CF NWFP data is necessary to formulate a national level policy and operational strategy for sustainable management and marketing of a different kind of CF NWFP (as cited above) in the country. Existence of such inclusive information can enable individuals, communities and decision makers to realize the full potential of NWFP in generating employment, enhancing rural income and to some extent, contribute to food security of rural households for poverty reduction. Role of Social Forestry Division related to NWFP The role of Social Forestry Division (SFD) is to promote NWFP development activities throughout the country CF(s) in cooperation with Dzongkhag Forest Officer (DzFO), Divisional Forest Officer (DFO), Park Manager (PM), Geog Forest Extension Agent (GFEA) and Community Forest Management Group (CFMG). Though SFD has limited capacity, it provides technical supports as far as possible to all the NWFP stakeholders including DzFO(s) and GFEA(s). SFD in collaboration with different agencies (like FRDD, RNR Research Centres) prepares management guidelines for the NWFP species that are available within the CF and disseminates to all stakeholders. The management guidelines are needed for the sustainable management of the species. It also encourages the reviving of the degraded stock of any NWFP species within the CF through plantation. SFD also organizes in-country or ex-country study tour on NWFP development activities

51

for the CF user group and implementers if fund is available from the existing project (Participatory Forest Management Project, i.e. PFMP). Past NWFP activities that have been carried out and that are finalized As of date there are two community forest solely established for the management of Non Wood Forest Products. They are: 1) Lekcha Community Forest for the sustainable management of Bamboo and Cane in Khoma geog under Lhuentse Dzongkhag and 2) Community Forest for the sustainable management of Pipla in Nangkhor geog under Zhemgang Dzongkhag. The study tour on NWFP marketing and community based enterprises was conducted in Thailand for the staffs of the Dzongkhag Forestry Sector from 28th May to 4th June 2006 and the feedback from the staffs involved was very positive. The resolution of 8th Annual RNR Conference (Feb.2006) stated that the NWFP development in Community Forests be stepped up through the development of management guidelines. Therefore, just to start with, SFD had developed the Management Guidelines for Illicium griffithii for the Community Forests of Bhutan and conducted Case Study on the same species. SFD also helped technically to Thimphu Dzongkhag Forestry Sector to create nursery for Illicium griffithii at Dechencholing and also planted some seedlings of the same species within that area. It is, yet to see the germination result of this species. Ongoing NWFP Activities SFD is in the process of preparing management guidelines (Planting and Harvesting Guidelines) for the particular commercial bamboo and cane species. They are Bambusa spp. and Plectocomia spp. Womannang (Trashiyangtse) CF for the management of bamboo is under the process of finalization. Future / Planned Activities In collaboration with DzFO, PM, GFEA, SFD will be initiating communities to establish Community Forest for sustainable management of Illicium griffithii since Honourable Minister, Ministry of Agriculture have emphasized for the marketing of Illicium griffithii fruits for communitys income generation. Further, SFD is planning to conduct informative survey to identify the available and priority NWFP species within the Community Forests of the country in collaboration

52

with Forest Resources Development Division (FRDD). It is for the NWFP product development and finally marketing. Therefore, SFD would like to promote and access market for the CF NWFP. Thus, the office is planning to establish marketing linkages to support CFMG(s) for commercialization of marketable forest products (including NWFP) of the Community Forests in collaboration with MTI, AMS and with other relevant stakeholders like Bio Bhutan, Forestry Development Corporation Limited (FDCL), etc. In collaboration with FRDD, RNR-RC and FDCL; SFD will be developing manuals and guidelines for planting and harvesting of high value NWFP species that are available within the CF(s) of the country (Focusing especially on such NWFP like Bamboo, Cane, Piper, Mushroom, Daphne, Chiraita and Cordyceps). Having with limited capacity, SFD will be providing technical supports to DzFO, GFES and CFMG(s) in regard to the field implementation of manuals and guidelines for planting and harvesting of priority NWFP species. The office is also planning to impart training in collaboration with FRDD and other relevant agencies on CF NWFP management to the CF implementers as well as to the CF user groups as and when required. The office is planning to provide in-country / ex-country training or study tour to all stakeholders of CF on NWFP product design and development if fund or resource person from the existing project (PFMP) is available. Needs to further NWFP development It is important to know or understand what types of valuable NWFP are available inside or outside the Community Forest. Appropriate mechanism must be developed to classify NWFP into different category for easy understanding of their management, since NWFP are the different parts or products of the tree, climber or plant. The national strategy has to be developed in this field for poverty reduction since some of the NWFP have potential to provide employment opportunity and to generate off-farm based household income. It is also required to encourage regional grouping of CFMG to create mass scale or quantities of any marketable NWFP products since single CF cannot produce required volume of NWFP production for the market. Therefore national master plan on sustainable NWFP management, product development and marketing accessibility is the primary necessity to develop. Contrary rules and regulations for NWFP has to be well defined so that the grass root communities will benefits from the community based natural resources to its optimum.

53

Challenges in NWFP development NWFP itself is a vast subject unlike tree or timber management. For instance only different parts of the tree or climber or sometime entire plants are used as Non Wood Forest Products. Therefore it is a challenging task to derive biometric formula for the quantification of mass of different NWFP products. Thus for managing and developing, one has to have diverse skills and knowledge on multi-NWFP related subject matter. At present we do not have such type of expertise in our Department, because of which NWFP development in our country is lacking behind comparing to other parts of the world. Other most important factor is that we do not have proper collaboration or have some communication gaps among different stakeholders within Divisions, Institutions, and Agencies or with some NGOs who have already taken up or developed some of the activities related to NWFP. In addition to this, the Department does not have or establish proper linkage with the different NWFP institutions or with any other international organizations even though such organizations already existed. Conclusion and recommendation The NWFP either from outside or inside CF(s) have the great potential in providing employment opportunity and thus generating income for the communities. However, the existing natural resources have to be managed sustainably. Hence, NWFP is one of the alternatives natural resources that can definitely aid for poverty reduction by certain percentages of our rural communities. At present, we have weak database management system especially for the export and even self consumption of the NWFP. Also there are not much guidelines for collection or harvesting of any NWFP. Contrary, it is crucial to have reliable data or information on the supply or production of NWFP. Such data will help the concerned individuals for sustainable management and for policy making in future. Thus to have such upto-date information, the existing Forest Management Information Section (FMIS) has to be strengthened. The concerned ministries or departments have to set NWFP development as national programme objective to achieve the defined goal of NWFP programme activities of the country. Therefore, the concerned institution like Research Centres, College of Natural Resources and etc. should undertake more research activities in the field of NWFP. Thereby, the research results will certainly help to the managers and policy makers in promoting NWFP activities in the country. However, to redress NWFP sector development in our country we must have mutual understanding in sharing experiences, knowledges and expertise among different organization, corporation or NGOs. There should be some provision always to amend rules, regulations and guidelines pertaining to Non Wood Forest Products so that all section of the communities will have

54

maximum utilization and benefits of community based natural resources in sustainable way. Finally, the concerned Department should have well trained professional for the sustainable management of Non Wood Forest Products of the country. Publications 1. Case Study: Will the Sale of Illicium griffithii Reduce Poverty in Aja Nye and Yabrang Communities? June 2006. 2. Management Guidelines for Illicium griffithii for Community Forests of Bhutan July 2006.

55

Nature Conservation Division related to NWFPs

Prepared and presented by Raling Ngawang Drukdra 1. Introduction Forestry record reveals of possessing 72.5 percent forest cover out of which 26 percent been designated under protected area system (PAS) as National parks, Wild Life Sanctuaries, Nature Reserves etc and 9 percent under Biological Corridors (linking corridors between different protected areas systems). Existence of high percentage of forest coverage for the state has highly been attributed by the leadership of monarchs who revered far sighted conservation ethical view. Above all the Buddhist religion has played a central role in peoples lives and culture, and nature which in this sense is essentially biodiversity is so central to Buddhism, the basic principle are to give back to nature what has been taken away and to respect all forms of life. 2. Non-wood Forest Produce Non-wood forest product (NWFP), or Minor Forest Produce (MFP) includes aromatic and medicinal plants, touch nearly every aspect of the lives of Bhutanese. The country's forests provide food, fodder, medicine, oils, resins, fibers, dyes, and raw materials for baskets, traditional paper, houses, brooms, mats and numerous other items. NWFP has a tremendous potential as cash crops, and it can often be grown alongside numerous tree species and other marginal land. 3. Some of the existing Policy, legislatives, Regulatory and administrative measures those take care to respect enforcement of the Conservation in Bhutan. 3.1. Forest policy Bhutan's forest policy places conservation above all other considerations. Harvesting or commercial use of the forest is only permitted after conservation goals have been met and only if management policies ensure sustainable use. 3.2. Forest Vision and strategy Under the vision and strategy of NCD, DoF, is to maintain ecological integrity embedded in social, economic and cultural environment mainly through management of coherent and viable nature conservation areas. Conservation and management of natural biodiversity, primarily in the protected areas and biological corridors, and in harmony with peoples value and aspirations needs to be addressed as well.

56

Bhutan has designated 26 percent of its national territory as protected areas, distributed over different eco-zones. These are strictly controlled for the conservation of flora, fauna and biodiversity. Further 9 percent of the geographical area has been designated as Biological Corridor those links all designated Protected Areas. All remaining forests are designated as production forests only to cater timber requirement for public and no exports allowed in raw material from. Their management is also guided by conservation principles. Bhutan places strong emphasis on people's participation in forest management and on the development of forestry extension services. 3.3. Forest legislation rules and regulations Rules and regulations are regularly updated to improve and better enforce forest conservation policies (the Royal Government of Bhutan's Master Plan for Forestry Development 1991, Annex Report No. X). These rules, however, still allow the Bhutanese people to practice their traditional use of forest products. 4. Medicinal Plants/NWFP as resource The 1974 National Forest Policy categorizes medicinal plants and herbs as resources yet to be fully explored. Hence the Policy specifies that these resources be surveyed for efficient management and use. May 25, 1988 - The Director of Forests approved a proposal to ban exports of medicinal plants. 5. Role of Nature Conservation Division (NCD) on NWFP NCD is one of the four Divisions under the Department of Forests (DoF). By respecting time to time directives of the Department of Forests and the existing Policy, legislatives, Regulatory and administrative measures as accounted in the above lines NCD is to conserve and maintain 26 percent of the countries Forest area through the Protected area systems declared as National Parks, Wild Life Sanctuaries, Nature Reserves. On receipt of directives from DOF, NCD issue directives for issue of NWFP permits in case by case basis to the Park Managers for instance for collection of medicinal plants by National Institute of Traditional Medicine. NCD to protect the biodiversity very rigidly within the PAS networks in all eco-regions of the country, which many NWFP like mushroom and herbal plants do not thrive without Natural overhead forest coverage.

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5.1 Map of Protected area system (PAS) with Biological corridors.

6. Threats to Bhutans Biodiversity and risk associated in conservation in relation to medicinal and aromatic plants including NWFP In Bhutan, biodiversity is a matter of everyday necessity. All Bhutanese people especially in the rural areas depend on biological resources in one way or other on a daily basis. Threat to the ecological integrity of habitats and the species within them including NWFP and medicinal plants stem from several sources. -Land conversion causing habitat destruction and fragmentation resulting in the loss of biomes, ecosystems in all habitat zones. -Economic development projects such as road and transmission line construction, Expansion of agro-farm land etc. -Poaching of Medicinal plants (NWFP) across the borders. 7. Constraints: -No complete silviculture data available for sustainable harvesting of Medicinal plants and for many of NWFP.

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-Lack of technical capacity and professionals in the field of aromatic and medicinal plants includes NWFP, information and data base, Taxonomic literature etc. 8. Suggestions/recommendations: Technical capacities required to be enhanced. Strong collaboration required to be build with NITM Encourage private entrepreneurs to grow NWFP NWFP to be mandatory for Community/Private Forestry system. Government to support the marketing of products is crucial.

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NWFPs - FDCL perspectives

Prepared and presented by Gyem Tshering

Mandates and functions of FDCL: To undertake harvesting and extraction of timber & timber products as per the approved Forest Management Plans To market timber and timber products within and outside the country as per the Revised Timber Marketing and Pricing Policy of RGOB To engage in processing of timber & timber products To engage in the Business of other Forest Produce within approved Forest Management Units as specified by the Government To carry out construction of forest roads to facilitate the implementation of the approved Forest Management Plans To carry out Reforestation Programmes within the approved Forest Management Units To carry out Research & Development Works in the area of harvesting, processing, marketing and utilization of timber and timber products To provide timber to the rural consumers (at subsidized rates) as per the prevailing Government Policy To carry out social functions/conservation/forest protection activities like pest control, timber salvage, sanitation operations etc. as per the directives of the Royal Government from time to time. If such operation is not commercially viable, the difference in costs (i.e. expenses incurred less recovery, if any) will be reimbursed by the Government Past NWFP activities: FDCL has not ventured into any NWFP activities till 2005, as no priority has been set for harvesting & marketing of NWFP in the Forest Management Plans, although NWFP has been highlighted in the Plans Major focus of FDCL activities till date was confined to the following: road construction, timber harvesting, timber extraction, timber marketing, sanitation/forest protection activities supply of timber at subsidized rates to rural communities FDCL Management had decided to venture into NWFP business as a diversification activities only from 2004. Bamboo was decided as the first NWFP priority by the FDCL Board during 2004. Bamboo business plan initiated during 2005 as given below: undertook bamboo inventory to find out the potential for commercial business identification of suitable bamboo species for commercial business large scale bamboo seedling production through expansion of existing nurseries 60

undertake large scale bamboo plantation in areas identified by DoF identification of local bamboo products & marketing

Ongoing NWFP activities- Bamboo Creation of nurseries & raising of large scale bamboo seedlings (in the 3 Field Divisions) for future plantation & for supply to general public Created 16 Ha of plantation at Chengmari, Pasakha, G/phu, Tingtibi & S/Jongkhar Purchase & marketing of local bamboo products like balep, jatham, rezi, lechu, flag posts (with & without redi & khorlo) Training on bamboo management for the Field & HQ. officials during 2006/2007 Conducted Bamboo Exhibition Cum Sale during 2006 in collaboration with CBTC funded by FDCL & Government of India to create awareness on use of bamboo Distribution of bamboo hand tools to remote communities to promote technology Future NWFP activities - Bamboo Undertake large scale bamboo plantation in degraded/barren areas in southern Dzongkhags planning already in process Enhance knowledge & skills in bamboo management aspects Explore the processing & marketing of industrial bamboo products as substitute/alternative for timber (furniture, construction materials etc.) Identify key bamboo species suitable for bamboo base enterprise Introduce scientific bamboo treatment plant Adoption & promotion of technologies for bamboo processing Undertake other NWFP business as per the directives of Government Future needs - NWFP development Clear policy frameworks in the use of NWFP Inventory/identification of potential NWFP for commercial or cottage business Appropriate management plans for potential NWFP including guidelines for harvesting, marketing, domestication etc. Identification of lead agencies to follow up or execute the plans to promote NWFP activities Identification of NWFP products/value added products in order to make NWFP as a viable enterprise

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NWFPs - Agricultural Marketing Services

Prepared and presented by Sangay Chewang Limitations to NWFP marketing: Lack of proper knowledge on NWFPs Forestry policies Availability Volumes Prices Markets Important NWFPs: Cordyceps, Bamboo & cane, Mushrooms, Resins, Lemon grass, Chirata, Pipla??? Cordyceps 2004 auctioned 178 kgs export 158.35 kgs 2005 export 195.83 kgs (Lingshi & Naro gewogs 50 lakhs) 2006 Area Paro Wangdi Bumthang Naro Lingshi Total Quantity auctioned (kg) 4.565 370.285 60.130 46.615 25.07 506.665 Average price per kg (Nu.) 78,318 85,642 71,833 90,400 92,250 83,689 Total value (Nu.) 357,522 31,711,948 4,319,318 4,213,996 2,312,708 42,915,491

Source: DFO Offices/Parks Main markets for Cordyceps: Hongkong, Singapore, USA, China, Thailand, Malaysia, India Star anis Enquiries for start anis received from: USA, Singapore, Thailand, India Medicinal plants for which enquiries are received from Singapore: Aconitum heterphyllum (10,000 kg/month) 62

Picrorzhiza kurroa Nardostachys jatamansi Valeriana jatamansi Dactylhorhiza hatagirea Asparagus racemosus

- (5,000 kg/month)

(Singapore importer: Haresh Shah (H/P: 65-94529078), Vardan International Pte.Ltd., 61 Robinson Road, #11-03 Robinson Centre, Singapore 068893, Tel:65-62200078, Fax:65-62200079, Email:vardan@vardan.com.sg, Website:www.vardansg.com) Also general enquiries received for other medicinal plants: Common oak nuts, Tamarind, Acorus calamus, Hypercum perfocatum, Yellow gentian, Artemesia absinthum, Eucalyptus, Artemesia dracunulus, Juniper berry, Magnolia and Wild garlic. Other products with good demand Silajit, Fiddlehead ferns, Lemon grass average quality (70 % citral), Bamboo products Bangchungs & others, Mushrooms, Sofea high content of pipertone, Juniper leaf oil high content of sabinine Exploring markets 1. Local Markets 2. International Markets Vossenbio Vardhan International Woodlandfoods Improving market operations Improve quality Processing o Adding value for better returns o Reduce Post harvest losses o More shelf life o Can reach distant markets Set Standards Group Sales to Traders at Standard prices Store for off-season price benefits Obtain credit for members Community based enterprises

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NWFP Workshop presentation - Ministry of Trade and Industry

Prepared and presented by Dorji Wangdi & Galey Tenzin Brief report on lemon grass oil industry in Bhutan 1. Two species of lemon grass a) East Indian Cymbopogon flexuosus b) West Indian- Citratus Naturally grown in Bhutan is Cymbopogon flexuosus 2. The quality of lemon grass oil : The main constituent of lemon grass oil is citral. The quality of oil is judged by its citral content and its solubility in alcohol. 3. Lemon grass oil production in Bhutan. : 1981- Bhutan Aromatic & Phytochemical (BAPC) section of Tashi Commercial Corporation (TCC) in collaboration with DV DEO Company started its first centralized production at Kurizampa, Mongar. 1982-1992 BAPC distributed large numbers of 200 liters capacity distillation units to Mongar, Trashigang and Lhuntse villagers. 1993- MTI established Essentail Oil Development Programme (EODP) at Mongar to provide consolidated government support to the Lemon Grass distillation industry through research, extension, processing, quality control and marketing 1995-1999 EODP with financial assistance from the UNDP distributed 170 numbers (small 600 liter capacity and cottage type 200 liter capacity) of improved stainless steel units to distillers in Mongar, Lhuntse, Trashigang and Tashi Yangtse. Table 1: Dzongkhag-wise distribution of distillation units Dzongkhag Lhuntse Mongar Trasigang Trashi Yangtse Total Number 26 98 27 21 172 % of the Total 15.1 57.0 15.7 12.2 100.0

2003 - TCC has stopped distillation units due to stiff market competition in India.

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Advantages of lemon grass industry: a) It provides employment opportunities to farmers especially to women. It provides good income to the farmers. Distillers make net profit ranging from Nu.20, 000 to 120,000 annually. b) Has potential to develop value added products in Fragrance and Aroma Industries? c) Due to high quality standard of oil it fetches good price in UK in hard currency. Current price per kg is US$ 12.50 d) Hard currency income for the RGoB. e) Living standards of people who engage in lemon grass oil industry have drastically improved compared to non doers. f) Strong and consistent support from the EODP in terms of technical assistance, logistics, quality control and marketing and advisory services. Table 2: Income by sources among villagers involved in lemon grass oil production. Activity Agriculture Livestock Timber Lemon grass Weaving Wage labor Hiring of pack pony Type of Income Subsistence Cash 59% 55% 100% 0% 100% 0% 0% 41% 45% 0% 100% % 100% 100% Work share 34.9% 33.5% 10.0% 12.3% 3.7% 4.8% 0.7% Income Share 40.0% 20.0% 10.0% 30.0% 1.0% 8.0% 1.0%

On-farm Off- farm

Source: Reproduced from Lemon Grass Oil Distillation, A Scenario Analysis, 2005.

Lemon grass oil distillation industry provides 900 to 1300 jobs for 72 days per year or 64,800 to 93,600 person days in a year in four Eastern Dzongkhags. Table 3: Dzongkhag-wise lemon grass oil production and sales income (1995- 2004) Dzongkhag Mongar Lhuntse Trashigang Trashi Yangtse Production kg 61,086.64 8,642.48 23,818.03 12,035.16 % Share 57.8 8.2 22.6 11.4 Sales Income Nu 29,667,680.74 4,320,696.19 11,249,127.22 6,009,542.66 % Share 57.9 8.4 22.0 11.7

Source: synthesized from Essential Oils Industry of Bhutan: A Perspective by EODP, 2004

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Lemon grass co-operative formation: Govt. policy to privatize/ manage the industry according to cooperative by- laws by the elected members in 2007. Several rounds of meetings have been held with the distillers to educate them on the roles, responsibilities and functions of the cooperative once they become fully independent Cooperative Body. Co-operative by laws and distillation hand manual developed by EODP will be distributed to the distillers by January 2007. The elected members of the lemon grass co-operative also made extensive field visits to the milk co-operative society at Dewathang, bee keeping society at Bumthang to understand how the co-operative society functions.

Sustainability of the lemon grass oil industry is a big question mark (?) due to the following reasons: a) High consumption of fuel wood b) Increased incidents of forest fires c) Decline of lemon grass resources To tackle this first problem, the UNDP Project wing which provides small grants to NGOs have expressed interest to help carry out some research work on different systems of boilers that needs to be studied to reduce the consumption of fuel wood. As of date we have in principle agreed with the UNDP to simultaneously carry out four different types of boilers to operate: 1st with electricity; 2nd with solar preheated boiler; 3rd with improved mild steel stove; and 4th with the existing boiler of distillation units to compare which systems would be most economically adaptable. We have already carried out some cost estimates of all four installations and have submitted report to the UNDP recently for financing. If funded, we will be carrying out the trial run in the next season 2007 to be jointly monitored by UNPD, lemon grass cooperative and EODP. Prevention of forest fire and sustainable management of lemon grass may be best dealt by Agriculture Ministry. Development of other essential oils EODP has carried out laboratory research on the following oils: . Artimisia oil . Silver fir oil . Juniper oil . Blue pine oil It is not encouraging sign to develop the above essentials oils, owing to scarcity of resources and plunging market price globally accordingly to some experts. However, we are still interested to do carry out more study on Pipla, Chirata and Vertiver plants (a kind of grass generally grown for soil conservation and river protection works) in the

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immediate future which is seemingly to fetch good market price according to marketing expert report from Australia. Issues to be addressed 1. Sourcing of above resource materials need to be supported by NWFP division, Department of Forestry. Rural Enterprise Models (REM): The REDP is funded by UNDP. Amongst other projects implemented by MTI, the department of Industry has three programs to implement: 1. Intervention on Cane and Bamboo sector 2. Small Enterprise Grant Scheme 3. Promotion of Bhutanese incense sector 1. Cane & bamboo sector: Though our rural artisans have age old tradition and skill in the field of cane and bamboo handicrafts, there still remains improvement to be made in the use of modern tools; processing; treatment technology and outside exposure. Our artisans are habituated in using just one knife only through out the production process, in cutting, splitting, slicing, trimming, and sizing and finishing etc. which is very found cumbersome and time consuming process. To overcome this tedious process of production, the department of Industry, MTI, outsourced a tool kit from Cane and Bamboo Technology (CBTC) originally developed by Mumbai Technology Institute. The tool kit consists of 21 different tools used at different stages of production and finishing. First batch of 25 artisans selected from five different regions were trained at CBTC, Guwahati in December 2005, in the tool kit usage and treatment technology for duration of 13 days. All the Artisans were provided a tool kit each during the training. The second batch of training was focused at two areas- Kheng Bjoka in Zhemgang and Monpa community under Langthel Gewog, Trongsa as Forestry Department have developed cane and Bamboo regeneration plan in the areas. In last May / June, 2006, 150 artisans were trained in Kheng Bjoka and 50 Artisans at Langthel in Trongsa with trainer expert from CBTC. All the Artisans were trained in tool kit usages and treatment technology for duration of 9 days and were distributed a tool kit each.

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Objectives of the cane & bamboo intervention: 1. 2. 3. 4. 5. 6. Upgrade the skills of artisans Time reduction in production process Better finishing of products by using improved tools Enhancement of income and employment opportunities Improvement of living standards in rural areas Formation of co-operatives among artisans to gain marketing edge for sale of handicrafts. 7. To stop rural urban migration and poverty reduction in the rural areas 1. Small enterprise grant schemes : To create economic activities and generate employment opportunity in the rural areas, Industry department has the program to give small grant to small business enterprises in purchasing machineries and equipment to set up the industry. So far we have considered eight small projects under REGS with total grant amounting to Nu.13, 28,923.00. To promote more rural industry, the department has reviewed and revised some stringent criteria on the advice of UNDP. The new batch of industrial projects will be studied from 2007 onwards only. 2. Promotion of Bhutanese incense industry : Bhutanese incense industry has big potential for both domestic and export market. As of today, there are only 17 licensed holders in record and more than 50 numbers operating without licenses operating at cottage level. Though incense industry is also very old blend of traditional crafts and skills, lot of improvement is needed in securing resource materials, processing, technology, product development and record keeping etc. The Department of Industry has carried out extensive interviews with current license holders to understand the ground realities of the incense industry. Though small in operation, it is found one of the most varieties (as many as 41 species) of resource materials ingredients needed for the industry. Of these, about 50% can be sourced in Bhutan and 50% are generally imported from India. During the personal interviews by our expert recently, all incense manufacturers have expressed consistently that they are not able to get the available resource materials from Bhutan easily themselves from the Forest department. In the process they land up buying from illegal harvesters of similar prices if they could harvest themselves legally. Objective of the promotion of the Bhutanese incense industry program: 1. To promote the Bhutanese incense industry

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2. 3. 4. 5. 6. 7. 8.

To create employment opportunities To promote environmental friendly industry To promote export market and earn hard currency To create broad based economy Promote tradition and culture Promote peace and harmony among sentient beings. To appease the invisible living forces and hungry ghosts.

Issues to be addressed: 1. Permits for collection of raw material may be considered by the Department of Forest in the same way as for ITMS. 2. Special grant schemes for purchase of essential equipment and machinery for the industry 3. Product development and export marketing

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Forest Research Program, in development of NWFP Sector in Bhutan - RNR-RC Yusipang & RNR-RC Wengkhar
Prepared and presented by Kunzang Choden The Forest Research Program is one of the four national research programs that make up Renewable Natural Resource (RNR) research programs, under Council for RNR Research of Bhutan (CoRRB) in the Ministry of Agriculture (MoA). Forest Research Program is cocoordinated nationally from the Renewable Natural Resource Research Centre (RNR-RC). Yusipang and implemented in the regions through RNR-RCs at Bajo, Wengkhar, Jakar and Yusipang. The National Forestry Research Program (FRP) conducts research that provides foundation and springboard for achieving the overarching goal of sustainable conservation and utilization of Bhutans forest resources. In the 10th FYP (2008-2013), the emphasis will be given on research strategies and activities that contribute in the achievement of national goal of poverty reduction through enhancement of rural cash income in line with priorities of Department of Forest. Forest Research Program has 8 major sub-programs, out of which Non-wood Forest Products also forms an important sub-program. Sub Program-Non Wood Forest Products: Rural people largely depend on NWFPs for subsistence and income but until recently NWFPs have not been recognized as important products of forest. Recent studies show that NWFPs are indispensable at the household level for medicine, food, cash, and employment and utility. DRC Bhutan Trade Statistics (1991-1999) indicates that the export value ranges from Nu.14.29 million and Nu.44.04 million. The most important NWFPs that are exported are bamboos, cane, chirata, pipla, rosin and turpentine oil, agar wood, lemon grass oil, mushrooms as well as plants used for incense sticks and handmade papers. A number of individual studies on NWFPs are limited to documenting resource distribution and uses. So far no attempt has been made to quantify resources that have implications on conservation and sustainable use of NWFPs.The requirements of many NWFPs and their ecology is still unknown for many species. NWFPs are vast resources that are central in providing livelihoods and income to rural population. Mandate/function/role of research in NWFP development: 1. To coordinate, monitor and implement NWFP related research activities nation wide. 2. To undertake research (in the region) for improving scientific base for sustainable utilization of NWFPs to enhance rural income generation. 70

3. Taking the national objective of poverty reduction as the guiding principle, forest research focuses on providing support to the development of NWFP resources, which have direct bearing on increasing the economy of rural poor. 4. To increase sustainable production, conservation and domestication of Non Wood Forest Products to enhance rural income. 5. To focus on high value; low volume market oriented commercially important NWFPs. 6. To conduct research on sustainable methods of harvesting important NWFPs to ensure both marketability and sustainability. 7. Develop appropriate research methodologies and strategies for conservation of NWFPs for achieving national goal of poverty alleviation. 8. Conduct Action Research on community management of important NWFPs. (CBNRM Research) Past NWFP activities carried out by RNR-RC Yusipang: 1. Bamboo and Cane-Potential of Poor Mans Timber for Poverty Alleviation and Forest Conservation. A Case Study from Bjokha, Zhemgang, Bhutan. This report presents the findings of the study on bamboo and cane from Bjokha geog under Zhemgang Dzongkhag in Central Bhutan. The study assessed the accessible potential commercial growing stocks of Yula (Neomicicrocalamus andropogonifolius) and cane (Calamus acanthospathus), their role in the household subsistence economy and impacts on commercial enterprise, the traditional uses, indigenous knowledge and local resource management system, post harvest practices constraints and opportunities, and vulnerability status to commercialization of these two NWFP. 2. Sustainable Agar wood production through artificial inducement: It was seen that by inducing stimulant into the agar trees, agar oil was formed and hence Agarwood. The preliminary findings of the improved technology tested for the artificially inducing agar wood production in plantation was proven successful. 3. Traditional paper making in Bhutan: Demand and supply Traditional papermaking is an important source of income for a large number of rural households mainly from eastern districts of Bhutan. In Central and Western Bhutan there are less factories but they are bigger and semi mechanized. While the small factories mainly rely on the production of the two traditional paper types tshar shoo and ray shoo. The most important plant species serving as raw material belong to family Thymeleceae. Of the five Daphne spp occurring in Bhutan, only large growing species of D. bholua, D. suriel and to a certain degree D. involucrate are harvested, representing about 70% of the total demand. The remaining 30% are covered by Edgeworthia gardneri.

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4. Impact of Masutake collection on resources and economy. A study carried out by a PHD student from University of California. He studied finding the middle path for conservation and development, a preliminary result, comment and future directions with an emphasis on the Matsutake harvest in Genekha. Objectives of Matsutake study: 1. To determine the characteristics of individuals that is associated with higher levels of conservation behavior. 2. To determine the role of personal environmental values and attitudes towards resource use. 3. Examine the role of social capital and market integration in developing and maintaining community institutions for managing Matsutake harvest. Conclusion of the Matsutake study: 1. No effective community institution established to regulate the resource. 2. To maintain a sustainable harvest of NTFPs, regulations need to be enforced. Ongoing NWFP Activities by RNR-RC Yusipang: Study of life cycle and biology of Cordyceps sinensis and its sustainable management: 1. Introduction Cordyceps sinensis, commonly known as Yar-tsa Guen-bub in Bhutanese transliteration and Chinese name dong chong Xia cao translated into English as winter- worm, summer- grass. This very term caused perplexity as non biologists and even some biologists queried whether organism is a plant or animal. Cordyceps sinensis is referred to the final form, which is the fruiting bodies of the fungus arising from the head of the dead caterpillar, signifying the parasitic relationship existing between two organisms-a caterpillars and a fungus. Research objectives: To study the biology of Cordyceps sinensis (Fungus and insect host) To determine suitable harvesting methods and habitat preservation to ensure both its marketability and sustainability. To explore methods for cultivation. Results and discussion The data analysis indicates the following trends:

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Total number of Cordyceps recorded in transects (640 m2) is 49 from May-August 2006 which works out to 306 Cordyceps per acre. First flush of Cordyceps appeared in May and takes about 45 days to reach maturity. The data shows that the first flush of Cordyceps measured about 10 mm (the shortest) and it grew to about 65 mm (the tallest) on reaching the maturity. By August, the infected caterpillar attached to the base of Cordyceps got completely got degraded; spores from stroma are fully dispersed. No new flush of Cordyceps was seen by then. The harvesting date was preponed by 1 month this year, Cordyceps collected this year proved to be of best quality for the market and as a result there was an increase in price by 30% this year.

Field Observations: 1. April/May 2. May/June 3. June/July - Immature Cordyceps (high market value) - Maturing Cordyceps - Mature Cordyceps (ecologically important

2. Sustainable propagation and harvesting methods of important bamboo (Borinda grossa). Sustainable propagation methods from rhizome cuttings and seeds are being tried out in our nursery for Borinda grossa. 3. Development of fern arboretum: More than 20 species of fern have been collected from in and around the locality and works are underway to document them. Future/planned NWFP activities of RNR-RC Yusipang: 1. Study the insitu and exsitu collection and management methods of important NWFPs. 2. Study the lifecycle and biology of Cordyceps sinensis and sustainable management. 3. Collection, Utilization and Domestication of selected NWFPs (Star Anise, Boehemeria, Emblica officinalis, Agarwood, Masutake) 4. Sustainable propagation and harvesting methods for important bamboos (Borinda grossa) Past and on-going activities of RNR-RC Wengkhar: Propagation technique for Cane (Plectocomia himalyensis) and plantation trial established. Few aspects of ecology and management of Chirata documented - Case study at Shingkhar Lauri

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Socio economic impact information available for Lemon grass. Long term observation trial established for fire impact study on lemon grass oil yield. (carried out in collaboration with DoF).

Planned activities of RNR-RC- Wengkhar Insitu management of Pipla resources at Samdrupjongkhar dzongkhag. Domestication of important NWFPs such as Boehemeria and Emblica officinalis (Mongar and Tashigang)

Challenges: 1. 2. 3. 4. 5. 6. No clear strategy on NWFP conservation and utilization. Little understanding on distribution, abundance and status of NWFP. Lack of cultivation techniques for domestication of NWFP. Socio-economic impact and marketing access of NWFP little known. Studies on NWFPs are limited to documenting resource distribution and uses. No attempt has been made to quantify resources that have implications on conservation and sustainable uses of NWFPs. 7. Requirement of many NWFP species and their ecology and utilization practices are unknown. 8. Lack of trained personnel in NWFP management and development. 9. Many potential NWFPs remain unexplored. 10. NWFP yet to be mainstreamed in the forest planning and management process (inventory and survey methods to be developed) Future Needs for NWFP Development: 1. Need to set legal, policy and institutional framework to create an enabling environment for NWFP development. 2. Assessment of impacts of NWFPs on rural economy. 3. Develop and adapt inventory methods for important NWFPs and mainstream NWFP in forest planning and management process. 4. Domestication of some important NWFPs for commercial use. 5. Develop sustainable collection methods for important NWFPs. 6. For NWFPs of commercial importance marketing avenues and opportunities to be explored. 7. Need to set legal, policy and institutional framework to create an enabling environment for NWFP development. 8. Capacity building on NWFP management and development. 9. Process and develop NWFP of commercial importance. (Value added products) Publications: 1. Bamboo and Cane: Potential of Poor mans timber for poverty alleviation and forest conservation, A Case study from Bjokha geog, Zhemgang Dzongkhag, Central Bhutan. 2. Sustainable Agar wood production through artificial inducement, Dec 2004. 74

3. Beyond Timber-A Rapid Rural Appraisal Study on NTFP in Nahi geog, Wangdiphodrang. 4. The story of Buddha mushroom, Tricholoma masutake, Aug 2006 5. Traditional paper making in Bhutan-Demand and Supply. 6. Importance of Non Timber Forest Products in Bhutan. 7. Finding the middle path for conservation and development: Preliminary results, comments and future directions with an emphasis on the Masutake harvest in Genekha, Sept 2006. 8. Bamboo and Cane of Zhemgang Dzongkhag.

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Research activities on NWFPs - RNR-RC Jakar

Prepared and presented by D.B. Chettri Mandate/function/role related to NWFPs RNR Research Centre, Jakar is mandated to carry out research to generate information on availability of non-wood forest products and to develop technology for its sustainable harvest and management, maintaining its ecosystem and to generate technology for domestication of economically important NWFPs to enhance rural livelihood. Past activities Socio-economic study of Pipla production Socio-economics of pipla production in Bardoh and Nangkhor geopg in Zhemgang was done during 1998. The constraints face by the farmers in harvesting, marketing and post harvest management were documented. Development of marketing channel, guidelines for sustainable collection and community organization were recommended to promote sustainable harvest and management and to reduce conflicts between pipla collectors. Artificial method of Agarwood production by inoculating agar inducement agents The improved technology (drilling holes in spiral manner, filling with agarwood inducement compounds and fixing aeration pipe)) tested for artificially inducing agarwood production in plantation. It is proven successful technology for Bhutan. The technology could be successfully applied to produce agarwood from all agar trees irrespective of their locations from 10 cm and above diameter. Ongoing NWFP activities Identification of economically important bamboo species Information collection through questionnaire on various bamboo species from three different climatic zones of Sarpang, Zhemgang and Bumthang is ongoing. The main objective of the exercise is to identify economically important bamboo species that need research focus for generating management and propagation technology. Development of sustainable harvesting and management technique for Borinda grossa Borinda grossa is a high altitude bamboo. Due to its multiple and diversified uses, this species is identified as a priority species for sustainable management. The centre has given particular attention for developing sustainable harvesting and management guidelines for this bamboo. Research trial has already been established in Bumthang region. Experimentation on artificial method of Agarwood production by inoculating improved agar inducement agents

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The experiment has already been set up at Gelephu and it is due to evaluate. It is expected that the experimented improved inducement agents will result more agarwood production in the experimented trees. Future/ planned activities

Monitor the status of NWFPs in the country & ensure their sustainable harvest and management Development of propagation technology for economically important bamboo species in three agro-ecological zone (Bumthang, Zhemgang and Sarpang) Apply improved method of artificially inducing agarwood formation in agar trees at Panbang plantation as well as in the trees which are owned by the farmers in the southern foot hills. Promote plantation of economically important non wood products like agar, bamboo and other wild fruit trees.

Needs for further NWFP development

Improve collaboration with international institutions and projects to implement artificial agarwood inducement program in the country. Promote domestication and utilization of economically important NWFPs Develop marketing opportunity for commercially important NWFPs.

Challenges in NWFP development

Lack of appropriate technology in sustainable harvesting of NTFP Limited information on indigenous NWFP Lack of reference books on NTFP

Conclusions and recommendations

Develop capacity to carry out research on diverse NWFPs Legal support and awareness for utilization and marketing of NWFPs Develop harvesting and management guidelines for commercially important NWFPs Legal support for marketing domesticated NWFPs

List of references Chhetri, D.B., Pelden, K, Dhendup. K. and Gyeltshen D. 2004, Sustainable agarwood production through artificial inducement, RNR RC, Yusipang, CoRRB, MoA working document 2004/01.

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Wild Mushroom- An important NWFP in Bhutan - RNR-RC Jakar

Prepared and presented by Dorji Wangchuk Introduction Rural Bhutanese populace depends substantially on harvesting wild mushrooms during season. About 149 wild mushrooms are found edible and 38 species are sold by Bhutanese in local vegetable market on Sundays. Excess harvests are dried and served during off-season and are considered delicious with varying tastes depending on species used. Tricholoma matsutake (Sangey Shamu) was exported to Japan since 1990 generating good income to farmers and the exporters. Today, Sangey Shamu, Cordyceps sinensis (Yartsa Guenbu) and Cantharellus cibarius (Sisi Shamu) are exported and yet many delicious species of ceps (Boletus species) of commercial interests still remain unknown to Bhutanese. With increasing demands and over harvesting, important mushrooms habitats are annually deteriorating and threatening to its extinction. On the contrary, there had been several poisoning cases of Bhutanese eating unknown mushrooms. Identification of wild mushrooms had become important. Mandates: 1. Strengthen bylaws for sustainable harvest of symbiotic and parasitic mushrooms; 2. Management of host trees and insects to assure long term harvest of endangered important wild mushrooms; 3. Domesticate mushrooms using identified hosts 4. Identify wild mushrooms in Bhutan to reduce poisoning and increase new edible species for Bhutanese Past, present and future activities:

Collecting, identifying and preserving of wild mushrooms in Bhutan; Studying ecology of endangered mushrooms; Domestication trials of Sangey Shamu, Ngala Shamu and truffles; Studying adverse impact in collecting wild mushrooms; Developing strategies to protect the important ecology of symbiotic mushrooms; Management of forest to enhance mushroom production; Document wild mushrooms in Bhutan

Needs for further NWFP development 1. FRDD's legal support in collecting and identifying wild mushrooms and management of its important ecology; 2. Cooperation from Forestry in implementing identified solutions on harvesting and related problems;

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3. Collaboration from the Social Forestry Program in mycorrhizing host seedlings with symbiotic mushrooms; Challenges in (NWFP) mushroom development

Wild mushroom activities are conducted by mushroom researchers while law and fund lies with Forestry; Mushroom collectors know the techniques of harvesting mushrooms but actually not practiced in reality; Sangey Shamu and Cordycep production not mapped or documented location wise; Lack proper monitoring system to reduce haphazard harvesting; No legal collaborative support from DoF and stakeholders; Duplication of resources on mushrooms by both FRDD and mushroom researchers; Lack of reference books and chemicals to identify wild mushrooms;

Conclusion The ecology of Sangey Shamu, Sisi Shamu, Rhozites caperatus (Dungshi Shamu) and Ngala Shamu are badly deteriorated over the years. The adverse impact studies revealed litters, mosses and mycorrhizal zones badly disturbed by collectors. A Participatory Rapid Appraisal in close collaboration with DzFO, JDNP staff would be conducted in November ~ December 2006 with funds from NWFP. The existing constraints would be reviewed and strategies developed to strengthen monitoring and enforcement of by laws amongst different stack holders. In June 2007, the revised strategies will be fully functional. There had been promising results on mycorrhization technique that was also well received by participants during the last annual Forestry meeting at Gedu. Mycorrhization in Thrumshingla National Park had also shown good mycelium rum of inoculated Sangey Shamu. It had not only enhanced growth of seedlings by 125% but very soon the inoculated symbiotic mushrooms like Sangey Shamu and truffles (successfully harvested earlier in Bhutan) could be harvested in the country. Excluding over 547 mushroom species identified, researchers collected over 250 more species during season from regions covering Mongar to Bumthang and displayed in shelves in RC, Jakar. Other districts will be covered and create awareness through different media to reduce wild mushroom poisoning cases in Bhutan. Concurrently edible species are categorized and new species included in Bhutanese diet. A book on mushrooms in Bhutan would be published. Recommendation A collaborative effort on wild mushrooms research with FRDD could greatly avoid duplication of research and ministry's valuable resources. Law is with FRDD and field activities carried out by research program for mushrooms.

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Community Based Natural Resource Management of NWFPs RNR-RC Bajo

Prepared by Sangay Dubai, Dil Maya Rai and Purna B. Gurung and presented by Sangay Duba Background RNR, RC, Bajo is actively involved in the research activities, one aspect of which is the NWFPs under the Community Based Natural Resource Management (CBNRM) Project. This project (funded by IDRC, Canada) is an operationalization of the National CBNRM framework of the Ministry of Agriculture in 2002 mandated under the Council of RNR Research of Bhutan (CoRRB). Ten pilot sites under the project are distributed across the country. Field works are conducted with administrative assistance from focal persons like the DzFOs in the Dzongkhags. Executed by the CoRRB Director as the head of the Research Council, a team consisting of National Project Coordinator and technical assistance from SNV-Bhutan carries out the mandates of the Project in collaboration with other Research Centers and relevant agencies. Forestry Extension Agents play a vital role at the grass root level. Role of Research Center, Bajo/CBNRM Project to the development of NWFPs in Bhutan A. To enable local communities to utilize the NWFPs through sustainable harvesting habits by finding alternative management techniques of the resources. B. Involve the local people to understand the threats of depletion of resources and be able to manage them by taking ownership and responsibility of their community resources. C. Develop a management approach through participatory action research. List of NWFPs that CBNRM is currently working on A. B. C. D. E. F. Community Based Management of Cane and Bamboo in Bjoka, Zhemgang Community Based Bamboo Management in Wamanang, Trashi Yangtse Community Based Management of Chirata in Shingkhar Louri, Samdrup Jongkhar Community Based Management of Pipla in Nganglam, Pema Gatshel Community Based Management of Lemon Grass in Dremitse, Monggar Community Based Management Grazing/Pasture land (tsamdro) development in Dhur, Bumthang G. Community Based Management of Cordyceps in Soe, Lingshi in Thimphu H. Community Based Management of Mushroom (Matsutake) in Genekha, Thimphu CBNRM approach in managing NWFPs With the assistance of Forestry Extension agents in the field offices, the management approach to the cited resources firstly involves holding community meetings for 80

consultation and boundary definition for resource mapping. Inventory of the resources is then done based on the map. After evaluating the resource condition, meetings with the communities are held again to form management groups in which group by laws are determined with the help of the representatives of the group members. Management Prescriptions/Plans are then written for the future reference of the users. These management plans further have to be endorsed by the Department of Forests for legal purposes. A. Lemongrass in Dremitse, Mongar

Dremitse consists of 555 households, of which 85% of the population is entirely dependent on agriculture economy (CBNRM, Annual Report March 2005-June 2006:17). The Geog has the largest area covered by Lemongrass in Mongar Dzongkhag and has been distilling lemongrass oil since 1980s. Currently there are about 45 lemon grass distillation units. Thus, Lemongrass oil production is one of the most important income generating activities for farmers. Lemongrass is considered a common pool resource; therefore none of the stakeholders took ownership for proper management of the resource. Distillers and harvesters independently decide on harvesting location. Hardly any restrictions existed in terms of quantity that each distiller can harvest. With the financial support from the national CBNRM project and the technical assistance from the relevant stakeholders, a two days lemongrass distillers workshop was organized at the RNR centre in Dremitse, to analyze the potential to form a Lemongrass Distillers Group and to develop a community based management plan for the sustainable management of lemongrass. 1. Achievement 2005-2006 a. Sensitization for Geog administration (GYT awareness on CBNRM) and lemon grass distillers b. Formation of lemon grass group (By laws) c. Discussion with CFMG group for specific lemon grass management 2. Plan for 2006-2007 a. Resource mapping of lemon grass b. Research trials on impact of fire and harvesting techniques c. Finalize and translate management plan d. Monitoring & Evaluation e. Training and study tour B. Community Based Cane and Bamboo Management in Bjoka, Zhemgang

Bjoka is one of the most remote Geogs in Zhemgang. It is composed of 147 households out of which 135 households are permanent residences. Cane (Calamus acenthospathus and Calamun altifolius) and bamboo (Neomicrocalamus andropogonifolius) are 90% of the communitys income source. Each of these households earns about 66% of the annual income from Cane and Bamboo. Although the geog has potential for the development of

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other income sources, the remoteness from the market limits the selling opportunities. The skill of cane and bamboo crafting is the legacy passed down through generations. With the increase of population in the geog, more people were involved for the production of same products. The people collected resources without any management system as they had open access. The resource collection was done on first come first served basis. Indiscriminate harvesting practices led to fast reduction of the resource. Even the young plants were cut down. Free grazing system was an additional factor contributing to the degradation. Distance to the nearest resource area has increased many folds unlike before. In order to improve management practices and the commercialization of the products, communities are in the process of forming cane and bamboo management group. 1. Activities achieved (2005-2006) in Dremitse a. Several meetings with communities, including PRA exercises to assess current situation, challenges and define the way forward b. Management Group formed c. Inventory for Yula (participatory mapping, boundary survey, inventory) d. Training on product diversification (with MTI) e. Weaving centers/stalls for joint venture established f. Solar lamps/electrification provided for the weaving centers 2. Plan for 2006-2007 a. Resource inventory to be continued in some parts and management plan preparation b. Establishment of Cane and Yula nursery in different villages. c. Training and study tour d. Participatory monitoring and evaluation C. Sustainable harvesting of Pipla (Piper pedicentilitum) in Nganglam, Samdrupjongkhar

Pipla species found in Norbugang geog are either climber or shrub, distributed widely in the wild habitat. The climber type grows at lower altitude and it is rarely distributed. The species bearing round berries are found both on government and private land. Farmers around the area of Pipla had equal and free access to the resource. There was no consultation among members of the community, regarding the date and time of collection. Similarly, no rule or village boundaries existed to delineate the collection areas. Harvesting of Pipla was done mainly by households having limited sources of income. Two current issues have been raised by the community with regard to Pipla. One refers to the lack of market access (besides Pipla being a high value plant, generating a lot of income).The second issue is to promote and put sound community based conservation and management strategies in place, which can help to address over-exploitation and degradation of the resource. 82

1. Achieved activities (2005-2006) a. Training to create awareness on conservation and sustainable management of Pipla and explore potential for CBNRM b. Assessment of resource availability c. Selection of 5 villages for community based approach d. Rapid Rural Appraisal (incl. market assessment) 2. Plan for 2006-2007 a. Record sample data from each growing site b. Trial on drying and packaging equipment c. Finalize and translate the draft management plan d. Monitoring & Evaluation e. Training There are five villages identified as key area to focus and concentrate on. These villages, namely Menchu, Gashari, Dezama, Nganglam, and Yargi-wong, have been selected based on the records of extraction in the past and present. D. Community Based Grassland/Pasture land (tsamdro) development in Dhur, Bumthang

Natural grasslands ( tsamdro) is a major source of fodder for the livestock of Dhur, Bumthang as the village is largely dependent on cattle raising.(CBNRM, Annual report: March 05- June,06). Located at an altitude of 2800 a.s.l, the village comprises of 80 households. Conflict due to shared grazing rights and depleting availability of the grass is a prevalent situation in the locality. In order to help the farmers come to peaceful ways of sharing the community property, a legal guideline in the form of a management plan was expressed a necessity by the community. 1. Activities achieved (2005-2006) a. Social analysis through PRA exercises b. Participatory resource mapping c. Trend analysis of pasture and farming system d. Identification of problem areas and agreement on group formation e. Community based management plan and by-laws completed 2. Plan for 2006-2007 a. Share experience from Dhur for policy changes in Land Act b. Finalize and get approval for the Tsamdro management group c. Conduct research trials to improve pasture productivity d. M&E e. Training and study tour E. Community management of Chirata at Singkhar Louri, Samdrup Jongkhar Among the different species of Swertia reported in Bhutan, Swertia Chirata (Roxb) Karsten; S.tonglueensis; Burkill Gentiana chirayita Roxb. (Grierson, A.J.C and long D.G. 83

1999) is one of the most important medicinal plants biodiversity in Bhutan. Locally, it is known by several names such as khalu (Singkhar Louri) chiraito (Nepali), It is reported that many herbal medicines such as Ayush-64, Diabecon, Mensturylsyrup, Melicon V (Joshi, P. and Dhawan V, 2005) contains chirata extract in varying amounts. It is reported that people of Singkhar Louri use this plant for treating several human ailments such as common colds, cough, fever, combating malaria, de-worming, gout, headache and body pain (Pradhan, P.M et al., 1998). A comprehensive study on its impact on the rural economy was done by RNRRC Khangma in 1998. The study shows that about 40% of the household income of some households of Louri gewog comes from its sale (Pradhan, P.M., et al, 1998). The same study indicated that other sources of livelihoods and income generation were limited. The trend did not change much even today (consultative workshop, 2006). The same authors reported the decline in production and cited the reasons for the decline being restriction on tseri cultivation, increase in number of collectors, harvesting before the seeds are matured which reduced natural regeneration. After this study not much attention was given to Chirata largely because of security concerns in the area. 1. Achievement 2005-2006 a. Field visit to explore potential for CBNRM for the management of Chiraita b. Ongoing Resource Inventory and preparation of Management Plan 2. Plan for 2006-2007 a. Inception with community b. Community Group formation (development of By laws) c. Research trial on in-situ management, domestication and processing d. Development of marketing strategy (in collaboration with AMEPP) F. Community Based Bamboo Management in Wamanang (Trashi Yangtse) The Wamanang pilot site is located in the buffer zone of the Bumdelling Wildlife Sanctuary. The Forest type consists of broadleaf forest in lower part of the settlement and coniferous forest in the upper region. The valley in general has very good natural resources; there is no problem of serious degradation of natural resources. Some NTFPs such as Damroo (leafy vegetable), Nakey (fern), Shamu (Mushroom), Baa (bamboo), Desho (Daphne) are collected. Tree species are also used for making Phop and Dapa (wooden handicrafts) for home consumption as well as for sale in the vegetable market. The community comprises of nearly seventy five households along the Wamanang chu area. Bamboo is considered as an important resource and poor mans timber for most of the villages and was given highest priority by the community after a resource ranking exercise. Traditionally, the management of bamboo is already carried out by the villages mainly by limiting access to the bamboo areas for village cattle during the shoot formation period. Once Bamboo is properly managed by the communities, they would

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like to include other resources in CBNRM such as timber, firewood and Daphne depending on priorities. The communities fear that a new farm road to Wamanang will increase the pressure on the resources by outsiders; therefore they are keen to form a group with approved management plan of their valley for present and future generations. 1. Achievement 2005-2006 a. Several meetings with communities, including PRA exercises, to assess current situation, product prioritization, and create awareness on CBNRM (in collaboration with SEZAP/AMEPP) b. Group formation in collaboration with DzFO and Park management c. Resource inventory d. Draft management plan and By-laws completed 2. Plan for 2006-2007 a. Finalize management plan and get approval for group registration b. Link with AMEPP for MIF and marketing c. Participatory monitoring and evaluation d. Trainings/study tours G. Community management of Cordyceps in Soe, Lingshi in Thimphu Workshop on the research on biology and life cycle of Cordyceps sinensis which is being studied by RC Yusipang in collaboration with Darwin University, UK and the other by CBNRM Project on the CBNRM Concepts, processes, and the steps in implementing sustainable harvesting and management techniques in the community. The workshop gave insight into the problems and constraints faced by the community members surrounding the Cordyceps area. Like many others, here too, the problems faced were mainly in the boundary demarcation, absence of legal rights of the collectors, invasion of poachers, just to name a few. To help the communities, it was found that forming a legal management group and having a blue print of Management Plan was found inevitable. Therefore, CBNRM project has committed to take up this venture in collaboration with RC, Yusipang. 1. Achievement 2005-2006 a. Discussion with RC Yusipang and brainstorming on possible pilot sites b. Stakeholder workshop to identify potential of CBNRM for managing this resource c. Developed strategy and action plan 2. Plan for 2006-2007 d. Conduct activities based on the output of the stakeholder workshop e. Prepare management plan H. Mushroom (Matsutake) at Genekha, Thimphu CBNRM project is working in close collaboration with the National Mushroom Center to facilitate the sustainable management techniques

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1. Achievement 2005-2006 a. National stakeholder workshop with more than 60 participants, including Hon able Sectretary of MoA, Director General of DoF and DoA, Executive Director of BAFRA b. Potential for CBNRM and commercialization of Matsutake identified 2. Plan for 2006-2007 a. Develop and implement appropriate strategy for CBNRM by forming groups b. Training for sustainable harvesting c. Prepare a management plan Needs for further NWFP development A. B. C. D. E. F. Institutional and capacity development at all levels Networking with relevant agencies (DoF, AMEPP, MTI). Formal recognition/registration of community groups Clear legal rights for communities to manage the resources Technical Expertise and Support Entrepreneurship Development Skills

Challenges in NWFP development A. B. C. D. E. F. G. H. No clear policy on use and management of NWFPs Increasing pressure on limited resources Lack of competitive markets Lack of financial/ technical support Lack of relevant management guidelines at he grass root level Inadequate capacity to guide and support the farmers Quality Control of the products Research approach still pending as it is outside the Department of Forests Act

Conclusion CBNRM approach found very promising by the communities Project will support the targeted CBNRM activities until 2008 Capacity development trainings required for extension agents as well as farmers Timely intervention of the Project for NWFP activities; people are willing and eager to practice the sustainable management techniques for their community resources Potential for high income generation through product development Need to establish a mechanized/ legal body for CBNRM

Recommendations Support from relevant agencies like DoF, AMEPP, FDCL

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Quality Management trainings/awareness Linking products to market ( market assurance) Formal recognition of rights for use and management of resources by the user groups Training and study tours Clear Institutional arrangement Clear policy and legal support Capacity building at all levels

References Beek, Robin aus der and Tshewang Dorji. (2006) Bridging the Knowledge: A journey into Local Experience for Community- Based Management of Cane and Yula . URL: http://www.moa.gov.bt/downloads CBNRM, Mainstreaming Community participation in NRM (Annual Work Plan, July 2006-June 2007) CBNRM, Mainstreaming community participation in NRM (Annual Report, March 2005-June 2006) CBNRM, (2004). Next Phase Implementation Plan and Project Proposal, MoA, RGOB Handerson, Doug. (2003). Operational plan for Community-Based Natural Resource Management

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Wild mushroom management - National Mushroom Center

Prepared and presented by: Dawa Penjor

Introduction Since time immemorial, mushrooms had been consumed in Bhutan as part of the Bhutanese culinary. Many mushrooms are collected for their commercial value as well as for their culinary properties. Among the edible mushrooms the most popular are Tricholoma matsutake for its commercial value and Cantharellus cibarius as the favorite of the Bhutanese. The mushrooms in Bhutan have not been completely documented but we are all aware of the large numbers of mushrooms available in Bhutan. The National Mushroom Centre carries out regular study and identification of wild mushroom. We have identified some 200 species but a large number remains to be studied. Among these many are edible and are harvested for self-consumption or for sale. Among the edible mushrooms Tricholoma matsutake is exported and Cantharellus cibarius is the favorite of the Bhutanese. Lack of adequate qualified staff has hindered identifying and making inventory of others. A study has shown that about 20% of our population is involved in wild mushroom collection which indicates the importance of this NTFP for Bhutanese and the generation of income through its sale. In the recent years there has been a decline in the export of matsutake for which mostly external factors like large production of this mushroom in other countries and their relative distance from the market were indicated as the cause. Our survey has shown a reduction in production of this and in other mushrooms like sese shamu, Bjichu kangru, dungshi shamu etc. The reduction has been partly blamed on climatic changes in the last few years but over harvesting and improper harvesting methods cannot be ruled out. More children and urban dwellers are increasingly involved in mushroom collection and its sale. NMC has been training the mushroom collectors in sustainable harvest of mushrooms and their life cycle. The beginning of the season for the harvest of matsutake mushroom is being set every year and harvest of small size mushroom is disallowed. This is being done in the hope that some mushrooms would get the opportunity to mature and shed their spore. Collector group formation is being encouraged to prevent over-picking and mismanagement of mushroom forest. Most wild mushrooms depend on living trees for their living and growth. In order to be able to compete in the international market, improvement in the quality of packaging and handling needs to be looked into. The National Mushroom Centre has been co-operating and seeking support from all stakeholders involved; harvesters, exporters, village community, other government agencies, in the sustainable management of this mushroom.

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The NMC has also been observing wild mushrooms sold in the weekend vegetable market and along the road sides. The following mushrooms were being sold in the market: Cantharellus cibarius(Sese shamong), Rozites caperata(Dungshing shamong), Ramaria spp (Bjichu kangru), Tricholoma matsutake(Sangay shamong), Pleurotus spp.(Naki shamong), P. cornucopiae(Sili shamong), Lentinus edodes(Phochu shamong), Auricularia auricula(Bjili namcho), Amanita caesarea(Gongse shamong), Spararasis crispa(Meto shamong), Lyophyllum fumosum(Bjishi ruru), Suilus pictus(Keshalosha), Hygrophorus russula(Eto shamong), Hydnum repandum(Che shamong), Bondarzewea sp.(Kou shamong), Polyporus sulphureus(Taa shamong), Cathathelasma imperiale(Chhagoey shamong), Albatrellus spp. (Chhempu shamong), Boletus spp.(Phap shamong), Hericium ramosum (rapoe jau), Gomphus floccosus(Ting shamong) etc. A few standards have been set for Matsutake mushroom: Matsutake which are being exported are graded into Graded A & B. While packing the boxes have to be clearly labeled as Grade A or B. Grade A: The minimum size for A grade matsutake has to be 7.5 cm in height. A maximum of 5% to 10% open veil mushrooms are allowed. Grade B: They should not be over matured, which could result in deformed shape and dark gills Grade B matsutake should not be mixed with A to avoid adulteration. Collection method: Collection of matsutake mushroom below 7.5 cm in height is liable for fining. Carrying of plastic bag will not be allowed during collection of mushrooms and sale. Some common unsustainable methods practiced during mushroom harvesting and which need to be discouraged are: 1. 2. 3. 4. Looking for mushroom before the harvesting season Harvesting of very young mushrooms Disturbance of substratum (soil) and damage to the host plant Carrying polythene bags instead of baskets which prevents spores from being released in the forest and damage to the mushroom (both physical and physiological).

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Processing and utilization of NWFPs by Menjong Sorig Pharmaceuticals - Institute of Traditional Medicine Services (ITMS)
Prepared and presented by Phurba Wangchuk Abstract The traditional medical system in Bhutan is one of the most sustainable health care delivery system since all its components including human resource development, manufacturing of traditional medicine and provision of health care services are done within the country. The Institute of Traditional Medicine Services (ITMS) is the guardian of this traditional medical system in Bhutan. The ITMS comprises of three units: National Institute of Traditional Medicine, National Traditional Medicine Hospital and the Pharmaceutical and Research Unit. The Traditional Medicine Service in Bhutan is fully integrated with modern health care delivery system and is available in all 20 district hospitals. There is a plan to establish Traditional Medicine Units in all the Basic Health Units in the country. The commercialization plan including an enhancement of product development activities have been started at PRU. These changes of policy and strategy would require heavy investment in the traditional medicine services for the development of human resources and for the production of traditional medicines. In 2005, PRU have procured 12.5 metric tons of raw materials mainly medicinal plants and manufactured approximately 13.3 tons of products including commercial products. Sustainability of medicinal plants and traditional medicines has been always an issue of concern for PRU and the biggest challenge is securing its rich IPR. For PRU to have its place in modern era, R&D is the only way forward. But again advanced R&D cannot pick up at PRU simply because there is lack of expertise and equipments which involves huge investments. Therefore, limited collaborative research both within and outside the country should spear head the R&D of PRU despite minimal risk for bio-intellectual piracy. Key words: NWFP, medicinal plants, traditional medicines, research and development and production Introduction The Institute of Traditional Medicine Services (ITMS) comprises of three units: National Traditional Medicine Hospital, National Institute of Traditional Medicine and

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Pharmaceutical & Research Unit. The National Traditional Medicine Hospital is responsible for the development and provision of quality traditional medical care range from behavioral modification, prescription of herbal medicines, herbal therapies including acupressure and herbo-aqua therapy, minor surgery and spiritual healing. Currently, there are 25 Traditional Medicine Units at the districts and BHU level, attached to the district hospitals. There is plan to establish Traditional Medicine Unit in all Basic Health Units in the country. National Institute of Traditional Medicine is responsible for the development of human resources required for the traditional medicine services. Pharmaceutical and Research Unit is responsible for manufacturing and production of medicines, conducting quality control for both raw materials and finished products, carrying out research activities and marketing of the products. The objectives of ITMS are to: Preserve and promote the unique culture and tradition related medical practices Provide the quality traditional medical health care in the country Conduct research and quality control of drugs Develop human resources required for the traditional medical system Achieve excellence in traditional medical services in Bhutan.

Pharmaceutical and Research Unit In the past, the quantity of medicines required were low and all these medicines were produced manually. Small scale mechanized production started only in 1982 with support from World Health Organization and in 1998, the manufacturing unit was upgraded to the Pharmaceutical and Research Unit (PRU). The mandates of PRU are: 1.Manufacturing and production of traditional medicines 2.Carrying out research and quality control for both raw materials and finished products 3.Marketing of the products Therefore, to carry out these mandates, the PRU has established three main sections:Procurement and Production, Research and Quality Control, and Marketing. Procurement and Production Section This section is responsible for manufacturing of traditional medicines based on the traditional formula using latest production technology. The medicines are manufactured based on Good Manufacturing Practices (GMP) guidelines and Standard Manufacturing

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Instruction (SMI). In the formulations of traditional medicine, mainly three categories of raw materials are used. They are: sMen-zhing - Medicinal plants Sa-sMen - Minerals Sog-cha-sMen - Animal origins sMen-zhing (Medicinal Plants) is further classified as sNgo-sMen -High altitude medicinal plants and Throg-sMen- Low altitude medicinal plants. In Bhutan, high altitude medicinal plants are sourced from an altitude ranging from 2500 to 5000 meters above sea level and low altitude from 95 to 2500 meter above sea level. According to gSo-ba Rig-pa texts, more than 2990 different types of medicinal plants are reported for their uses in traditional medicine formularies. Out of which about 600 medicinal plants have been identified in Bhutan. However, at present only 265 different types of raw materials including 4 plants used for their woods are used to produce 98 essential traditional medicines and 14 commercial products. About 85% of raw materials are available within the country and remaining 15% are imported from India. The PRU procures or collects around 12.5 metric tons of raw materials on the average but this quantity is expected to double within 2 to 3 three years. This would ultimately exert pressure on the natural resources if conservation issues are not addressed and strategic utilization and sources not identified. For this reason, PRU in collaboration with Medicinal and Aromatic Plant Section under Ministry of Agriculture have trained farmers in good collection practices and cultivation of medicinal herbs. Beside Lingzhi, PRU have recently identified Bumthang as an alternative for collection of high altitude medicinal plants. The collection season for high altitude medicinal plants is from July to September and for the low altitude medicinal plants, it is December to February. While collecting the wild medicinal plants; first the annual requirements are calculated, geographical and population density of the target medicinal plants species are determined, collection permits are obtained. Second, collection teams conversant in ethnographical information, identification and drying processes are organized. The quality control staffs accompany the collection teams to monitor quality at source. The collection permits are obtained from Department of Forest, Nature Conservation Division and Park Management. After post harvest care, the dried medicinal plants are transported to PRU. Once again on reaching PRU, the dried medicinal plants are subjected to quality control tests and the quality passed materials are stored in the store. The raw materials are then issued for formulation of different types of products. In the year 2005, of the 13.3 metric tons of total production, about 8 tons were produced as core traditional medicines. When three years productions out puts are compared, it was found that there is an increase of 5 tons (Chart 1). This increase is mainly attributed to the fact

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that PRU has scale up commercial production especially Tsheringma herbal tea to generate income in a view to achieve self sufficiency and sustainability.
Chart 1: Production Outputs

14000.00 12000.00 10000.00 8000.00 6000.00 4000.00 2000.00 0.00

Quantity in Kg

2003

2004 Year

2005

TM+Commercial

TM Core

For better patient compliance and management, products manufacutured at PRU are made into different dosage forms such as pill, tablet, capsule, syrup, drop, ointment, medicated oil, fermented mixture, powder, balm and tea. Research & Quality Control Section This section is responsible for assuring quality, safety and efficacy of the traditional medicines manufactured by PRU. Researches are being carried out in the following areas: Standardizations of raw materials and finished products including botanical nomenclature, formulations and extracts Scientific validation of traditional medicine including pharmacological analysis, which consists of clinical trials, claim validations and the fixation of expiry dates for the raw materials and the finished products. Pharmacognostical and phytochemical analysis including morphological, cellular, extraction, isolation and identification of bioactive phytochemicals. These sections have produced one monograph on twenty medicinal plants. Product development activities under six product categories such as pharmaceutics, over the counter products, fragrance and essence, cosmetics and toiletries, health promoting and nutraceuticals. Many products are under development. Building quality control test parameters and standards and monitoring the quality of the finished products and raw materials Operational research including the survey and documentation of medicinal plants, local healers practices and hot springs in Bhutan. Marketing Section The marketing section is responsible for market surveys, audits and selling the products of PRU to the customers both within and outside the country. Essential traditional

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medicines are sold to Drug Vaccine and Equipment Division (DVED), Ministry of Health and about 14 commercial products are sold directly from the PRU sale counter. There are also sales agents especially for Tsheringma herbal tea which is the popular product of PRU at the moment. Cordyplus, which is a new product, is also gaining popularity. There are also few new products lined up for launching and marketing. In 2005, PRU have spent Nu.3.9 million for the procurement of raw materials and the total sales amounted to almost Nu.4 million including both ETM and commercial products. Main customer of PRU is the Ministry of Health. Although, officially there is no export business, unofficially many tourist and Bhutanese who go outside have taken with them the herbal tea and incense powder as souvenir. Immediate plan is to launch few products such as herbal teas (2), cordyplus (2), incense sticks (2) and herbal bath elixirs in the international markets. Therefore, market surveys and audits are completed in Thailand, Singapore, Hongkong, Germany and UK. Future plan, needs and challenges The Traditional Medicine Services in Bhutan is fully integrated with modern health care delivery system and is available attached to 20 district hospitals and 5 basic health units. There is a plan to establish Traditional Medicine Units in all Basic Health Units in the country. This change of Government policy would require heavy investment in the traditional medicine services for the development of human resources and for the scale up production of traditional medicines. PRU will also enhance development of commercial products both for domestic and export markets. This will need huge supply of raw materials especially NWFP and that is where PRU will need full support and effort from the MAP section under MoA in sustainable utilization of medicinal plants through domestications. In future, PRU need capacity development and will focus on the following: (a) Up-gradation of existing facilities (b) Human resource development (c) Collaboration/institutional linkages with other organizations both within and outside the country. (d) Research and Development (R & D) activities. R & D is essential as Drug Regulatory Authority (DRA) and Bhutan Agriculture and Food Regulatory Authority (BAFRA) is imposing their stringent regulations to ensure public safety. The biggest challenge is how to develop an appropriate research design and methodology to test the safety and efficacy of traditional medicines. This is further complicated by the fact that the herbal medicines are multi-ingredient compounds, which makes analysis more sophisticated. For developing an appropriate research design and methodologies and also for carrying out meaningful and fruitful researches, PRU will require institutional linkages and collaborative partners. To facilitate this collaborative research especially outside the country, it requires transfer of materials and thus the Material Transfer Act of Bhutan should be dynamic not rigid.

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Intellectual Property Rights (IPR) is another issue of concerns for PRU. This is because bio-prospecting and collaborative research nurses high risk of bio-intellectual piracy. Patenting of new innovations is hardly possible simply because Bhutan cannot afford to pay for it. Therefore, registering trademark is the only way to secure and protect the products and other innovations of PRU. As there is many plant based industries cropping up in Bhutan, within few years time PRU will have to compete for the raw materials and this would mean jeopardizing the sustainability of the traditional medicines. Better export prices of raw materials may also have adverse implications to the cost of production for PRU in particular and other plant based industries in general. The way forward Having understood the opportunities as well as the challenges for PRU as described above, it is felt that capacity building in terms of HRD, infrastructure development inclusive of equipments, securing raw materials supply and research and development is the way forward. The capacity building can be achieved through allocation of adequate resources, R & D collaboration within and outside the country with the technical support of the collaborating partners. Transfer of knowledge and technology would not only promote more research work and help to ensure sustainability of resources and traditional medical system in the long run. However, in line with the Government policy on conservation and biodiversity, every measure must be put in place to protect the traditional knowledge and prevent risk of bioprospecting. Knowing the constraints and limitations of R & D at PRU, its collaborative work should, therefore, continue to move forward considering its immense benefits to the quality and the production capacities. References: 1. RGOB (2005). An Introduction to Traditional Medicine Services in Bhutan, ITMS, Thimphu 2. WHO (2005). Review of Traditional Medicine in the South-East Asia Region, WHO SEARO, New Delhi 3. Bhutan-Japan Symposium (2006). Proceedings, ITMS and HMR, Thimphu.

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NWFPs - Nado Incense Factory

Prepared and presented by Chimmi Pelmo Introduction Nado Poizokhang is one of the oldest Bhutanese incense sticks manufacturers in the country. It was a government owned unit until the early 1990s when the Royal Government started privatizing most of the government owned organization. The unit started to commercialese in the year 1991 We produce incense sticks and incense powder using natural herbs and medicinal plants, most of which are available in Bhutan. We use more than 40 herbs and aromatic plants like juniper, red and white sandal wood, cinnamon, cardamom, clove, nutmeg, and many other medicinal plants. Role of our organization related to NWFPS: 90% of an incense stick is made using Non-wood forest products like the fruits, leaves and barks of some of the plants and trees in Bhutan. Some of the important roles that our organization plays in relation to NWFPS are: a. Value addition to NWFP like herbal plants and Juniper: Most of the raw materials used are products from plants and trees grown in southern tropical forest to the northern temperate to the high altitude regions. 90% of theses herbs and medicinal plants are found in Bhutan. Juniper is the major ingredient used in incense making. At the moment 100% of the Juniper supply is from Bhutan. Despite the fact that 90% of herbs and medicinal plants used are found in Bhutan, almost 80% of these are imported from India due to insufficient supply from local suppliers. b. Generate additional income to local rural people: Most of the raw materials to this unit are supplied by people from the local community who live in very remote and far away places. We have people supplying Sanzey, Rhododendron sp and other herbs from as far as Lunana, laya and Linshi. Herbs used in incense are the only source of income for some of them. Annually, we buy about 100,000 worth Ngultrum of raw materials from these people thus increasing their standard of living. This in a small way, will help achieve the millennium development goal of poverty reduction and National objective of Gross national Happiness. b. Other roles:

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Our incense unit has also been using other NWF Products like Daphne paper and bamboo rolls for wrapping our incense sticks. Around 2000 sheets of Daphne paper are used annually. Also Bamboo rolls are used for the same purpose. Past activities/on going activities: Our past activity involves converting of herbal and aromatic plants into incense sticks and incense powder. Value addition of theses herbs is still our ongoing activities in relation to NWFPS. Beside the production of the incense sticks and the incense powder, we are also carrying out a trail project of growing and cultivating some of these plants (such as Ton gue, and Manu plants) in our garden at a very small scale. Future activities: Our future activities would still be the production of incense sticks and incense powder. Beside this, we would also be taking up other activities like plantation of agar wood and white sandal wood in Gelephu. We are in the processing of studying its possibilities. We are also finding out the possibilities for other plants like Jagodpoi and Musk root. We are also planning to make wooden incense burner with carvings on it and incense holder in the future. Challenges in NWFP development Some of the challenges that we face are: 1. Lack of information on most aspects of NWFPs: Being a very small unit, we do not have access to much needed information related to NWFPS. For example we still do not know the common name/scientific name of most of the herbs and medicinal plants used. We are also not aware of Government rules and regulation concerning NWFPs. 2. The stringent permit procedure for acquiring juniper resources: Juniper constitutes the major bulk of the incense and a very important ingredient for the production of incense. Difficult access to Juniper wood has been a major concern to most of the incense unit in Bhutan. Needs of our unit for NWFP development 1. Access to information and knowledge on aspects of NWFPs: There is a need of more information and knowledge on the characteristics of NWFPs. There is also a need of proper translation of the NWFPS to its Latin/Botanical Name. 2. Awareness of Government policies and regulations on NWFPs:

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Most of the incense units need to be made aware of rational and effective policy supported by laws, rules and regulations concerning NWFPs. 3. More flexible rule related to Juniper supply /Increase in permit allotment for Juniper wood: With increase production and increasing number of incense units in Bhutan, the permit allotment to Juniper wood is inadequate. Therefore, increase in permit allotment from 300cft to 2000 cft is required in a year. 4. Other needs: There should be a proper coordination to get the permit for NWFPs. In the past, there has been a lot of confusion who and where to approach. Awareness of NWFPs should be made in the international market. The process of seeking permit for the NWFP should be made easy and fast. Training for cultivation and domestication of Agar wood, sandal wood, jagodpoi, muskroot and other NWFPs like for example cardamom, tongue and Manu. List of NWFPs used for incense:
Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Local Name Aru Baru Agarwood Chugang Churu Dezang Gurgum Pangpoi Shingar Sugmyel Poikar Shintsha Manu Kakola Tonggue Sang( Balu, sulu) Sangzey Kachu Red sandal wood White Sandal Wood Tshe Ruta Gugul Lishi Shugpo shing Zati Scientific Name Myrabloen/Terminalia chebula Myrabloen/Terminalia bellirica Aquillaria agallocha Bambusta textilelles Goose berry Saffron Carthamus tinctorius Nardostachys grandiflora Ligourice Ellettaria cardamom Shorea robusta Cinnamomum tamala Inula helenium Elanchi/Cardamom Selenium vaginatum Rhododendron sp. Sandalum sp. Sandalum sp. Ephedra heradiana Saussarea lappa Comiphora mukul Clove Juniperus squamata Myristica fragans Derived from Sarpang, India Sarpang, India India Trongsa, India India India India India India, Zhemgang India, punakha Bumthang Gelephu, India Thimphu Thimphu Bumthang Thimphu India India Wangdi, punakha India India India Trongsa India

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Bio Bhutan: Its role in marketing NWFPs

Prepared and presented by Karma Yangzom 1. 1.1 Introduction Background

Bio Bhutan is a pioneer enterprise that specializes in product development and marketing of natural and organic certified products from Bhutan in local, regional and international markets. Main goals of the enterprise are: To contribute to the sustainable use of natural resources; Improve income and employment opportunities of rural communities and private entrepreneurs; Create surplus value for final consumers through healthy and tasteful organic produces; and Promote the image of Bhutan as a supplier of pure, natural and organic products. Bio Bhutan is the outcome of a feasibility study entitled How to create added value for farmers, consumers and the nature in Bhutan: Feasibility study and definition of a pilot project for establishing a Label on Organic Farming. The study was carried out in 2003 over a period of 5 months by three consultants Patrick Vogel, Irmela Krug and Karma Yangzom. Bio Bhutan was established as an independent private enterprise in 2005 and operates with funds provided in the form of an interest free loan by Helvetas/SDC Bhutan. A long list of agricultural, horticultural and forestry products with potential for development and marketing as organic were identified in the feasibility study. A key strategy adopted in starting production and marketing activities under Bio Bhutan was to focus on quick wins. Hence priority was given to products that could be easily certified organic and developed as a marketable product. Preference was also given to products with a ready market. Non Wood Forest Products (NWFPs) automatically topped the list of such products, the main reason being that it requires only one year to certify a wild collected product as opposed to three years for horticultural and agricultural products. In line with the objective of benefiting rural farmer groups, preference was also given to products for which rural producer groups already existed. It was found that farmer groups existed for a few products most of which were NWFPs such as pipla, lemon grass oil, chirayata and others. 1.2 Organizational structure

Bio Bhutan is guided by an Advisory Board comprising of representatives from the Funding Agency Helvetas/SDC Bhutan, the Swiss Bhutan Society and its, sister organization: the Swiss Bhutan Friendship Association, the Non-Governmental and the Private Sector in Bhutan. Day to day activities of the organization is implemented by a

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team of four employees: Managing Director (Mrs. Karma Yangzom), Product Manager (Mr. Bhola Nath Sharma), Accounts Officer (Mr. Sonam Tobgay, and Logistics Officer (Mr. Yanka Dawa). Two more employees: a Financial Advisor and a Field Representative for lemon grass oil work for Bio Bhutan on a part time basis. 1.3 Our partners

All Bio Bhutan activities are carried out in close collaboration with partners from the Royal Government of Bhutan. It is extremely important for us to work in accordance with the development programs of the government and share resources and efforts. Our key partners are: i) the National Organic Program, Rural Enterprise Development Programme, Ministry of Agriculture; ii) the Social Forestry Division under the Department of Forests, Ministry of Agriculture; iii) the Renewable Natural Resource Research Center, Wengkhar, Ministry of Agriculture, iv) the Zhemgang Dzongkhag Forestry Section, Ministry of Home Affairs; v) the Department of Livestock, Ministry of Agriculture; vi) the Wangdue Phodrang Dzongkhag Livestock Section, Ministry of Home Affairs; and vii) the Essential Oils Development Programme under the Department of Industry, Ministry of Trade and Industry. 1.4 How we function

We source all our raw materials from farmer groups living in well defined areas scattered across the country. Processing of the products is carried out by the farmer groups under the supervision of Bio Bhutan. Final value addition and packaging is carried out by Bio Bhutan and sold at appropriate local, regional and international markets. In order to ensure quality and efficient production Bio Bhutan provides relevant training to farmer groups, carries out regular meetings with farmers groups and also provides technical assistance where necessary. 1.5 Marketing and promotion

We have established marketing links with customers in India, USA, Singapore, Switzerland, UK and Luxury Hotels and Shops in Bhutan. Promotion of Bio Bhutan and our products are carried out through our website www.biobhutan.com, advertisements in the local television, newspaper, Druk Air in-flight magazine and the only business travel directory of Bhutan. 2. Bio Bhutan products 2.1 Initially planned products (Past NWFP activities carried out)

The first groups of products identified for production and marketing as part of the feasibility study carried out in 2003 were: pipla (Piper pedicellatum) capsules made from dried powdered pipla fruits, lemon grass oil (Cymbopogon flexuosus), processed yak meat and herbal bath.

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A trial production of the pipla capsules was carried out in collaboration with the Institute of Traditional Medicine Services (ITMS) in 2004. However, it was found that the capsules were too strong (because of the spicy taste of the pipla fruits) and it could lead to stomach problems such as ulcers. Hence, the idea of pipla capsules was dropped. In order to help increase the marketing potential of pipla organic certification of the Nankor pipla collection area in accordance with EU standards was initiated by INDOCERT2 in 2005 and an organic certificate was obtained for the Nangkor pipla collection area in January 2006. A sample of the pipla fruits was sent to Padma3 in 2005 in order to find out the chemical components of the fruits and accordingly explore markets. As a result it was found that there was no piperin in this pipla species unlike other species such as Piper longum. Upon exploring export markets for the pipla it was found that most ayurvedic and Tibet medicine companies used Piper longum instead of Piper pedicellatum. Hence, Bio Bhutan has not been able to find a market for the pipla fruits. A trial production of a Bhutanese herbal bath was also carried out in collaboration with ITMS in 2004. The herbal bath was made from 5 traditional herbs: Ephedra gerardia, Rhododendron anthopogon, Tanacetum nubigenum, Myricarea rosea, and Juniperus squamata. The aroma and appearance of the product was not found appealing by many people in Bhutan and abroad. Hence, this product was not pursued further. 2.2 Current products (ongoing NWFP activities)

Today Bio Bhutan is involved in product development and marketing of four products: Lemon grass oil (Cymbopogon flexuosus), Lemon grass air spray, Cordyceps sinensis and Gogona cheese. As can be seen three of the four products are NWFPs. Steps are also being taken to revive efforts for marketing of the Nangkor pipla. In addition efforts are underway for product development and marketing a number of other NWFPs such as chirayata, ruta, star anise and Acorus calamus. These products were introduced to Bio Bhutan by interested farmers and traders who approached the enterprise for marketing support. 1) Lemon grass oil: The lemon grass oil is sourced from distillers of the Dozam Community Forestry Group in Dramitse, Mongar. The concept of producing organic certified lemon grass oil was introduced to the Dozam farmers by Bio Bhutan in 2004. Upon interest reciprocated by the farmers by the first inspection of the Dozam lemon grass oil production area was carried out in October 2005 and an organic

INDOCERT is a certification agency based in Kerala, India. This certification agency was developed by Bioinspecta, certification agency in Switzerland. 3 A company producing Tibetan medicine in Switzerland

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certificate was obtained in January 2006. The second inspection visit to continue the certification program was carried out in November 20064. Payment of a premium price of Nu. 600 per kg oil to the Dozam farmers were started in the distillation season of 20065. In the past eight years an average of Nu.490/kg was paid to the lemon grass oil distillers. The maximum price they received was Nu.529/kg in 2002. A total order for 1 ton of lemon grass oil from Dozam was received by Bio Bhutan from a Belgian company. However, the Dozam distillers were able to produce only 308 kg of oil in the 2006 season. This was due to lack of rains and hence lack of adequate moisture in the lemon grass. 2) Lemon grass air spray: Over 7000 bottles of lemon grass air spray made from the Dozam lemon grass oil have been sold from February to October 20066. Target markets were the local market in Thimphu, Paro, Wangdue, Bumthang, Mongar and Tashigang. Export of the air spray to the Delhi Embassy markets was initiated in October, 2006. The first lot of air spray has also been shipped to Switzerland in October, 2006 and a first lot order has been received from an outlet in New York. Efforts are currently underway to also have outlets for the air spray in Dhaka, UK and California. 3) Cordyceps sinensis: 18 kgs of Cordyceps was purchased through auctions at an average rate of Nu. 97,600.00 by Bio Bhutan. The entire lot was exported to Singapore in 2006. 4) Pipla honey drops: Since there is no demand for Piper pedicellatum, Bio Bhutan has decided to develop a product from the pipla at Nangkor. The product will be a health sweet formed by mixing pipla powder and honey. Since the Bumthang honey is unable to meet market demands honey for making this product will need to be imported from India. The Bio Bhutan product manager will make a trip to Calcutta in December, 2006 to look for processing facilities/companies for making this product. 5) Other NWFPs: Samples of chirayta, star anise, ruta and Acorus calamus have been sent to Singapore, California, Belgium and France. Follow up activities and negotiations are still ongoing for these products. 3. Future plans 1) Product diversification: This is required in order to make the enterprises activities more economically sustainable. Hence product diversification or

An organic certificate is valid only for one year. In order to renew the certificate inspection visits have to be carried out every year to ensure that organic standards are being followed. 5 Payment is carried out through EODP (Essential Oils Development Project) under MTI. EODP is the main marketing facilitator of lemon grass oil distillers of Eastern Bhutan for over ten years now. It was agreed that Bio Bhutan would purchase the Dozam oil through EODP as this would allow for the Dozam farmers to continue receiving benefits from EODP and the newly formed Lemon Grass Cooperative. 6 250 kg of the Dozam lemon grass oil was purchased from EODP in 2005. This oil was used to launch air spray production in 2006.

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development of new products will be given high priority for the immediate future. The first product targeted to be developed under this is the pipla honey drops. 2) Market diversification: Since local demand for Bio Bhutan products is limited, there is a need to diversify markets and target niche export markets in order to receive adequate volume of demand to make the enterprise economically sustainable. A niche export market is ideal for Bhutans products, as it is usually not possible to target the mass international market due to lack of voluminous production in the country. 3) Venture into Fair Trade Labeling: In addition to organic certification, Bio Bhutan plans to also include relevant products under the Fair Trade Labelling system. These certification and labeling systems help to fetch premium prices and in turn help to raise income levels of rural producers. Most important is that these systems help to ensure sustainability of the natural resources (under organic certification) and ensure humane working conditions and fair benefits to rural producers (under Fair Trade Labelling). 4) Initiate cultivation of relevant NWFPs: One of the major drawbacks of Bhutanese products is the high labor and transportation costs. The costs become even higher when the product is a wild collected product. Hence, cultivation of NWFPs is a viable option to reduce production costs increase competitiveness of Bhutanese products in the international market. Lemon grass (Cymbopogon flexuosus) is the first product that is planned for cultivation by Bio Bhutan. 4. Challenges and Need for support Key challenges experienced by Bio Bhutan in product development and marketing of NWFPs are: High cost of production due to high labor and transportation costs. Hence, it is difficult for Bhutanese products to compete in the international market, particularly for raw material products. The option is then to add value to the raw material products and market processed products. However, there is a lack of processing expertise and facilities for value addition including packaging material. Hence, many raw materials with great potential for product development and revenue generation for the country remain as raw materials only. Due to limited business experience amongst Bhutanese farmers issues of quality and prices exist. In most cases Bhutanese farmers expect to get unrealistically high farm gate prices for their products. Prices are usually not based on sound cost analysis and do not correspond to international market prices. Because of this there is a need to spend more time and expenses on education, awareness and discussions with farmers. Cost incurred in all these activities cannot be charged to

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the relevant product being developed in collaboration with the farmer group. Hence, Bio Bhutan has to look for other means of covering such costs. There is an overall need to educate farmers on basic rules and modalities of carrying out business. Providing basic information on available volumes and quantities of a product is a must for making any kind of business deal. In the absence of such kind of information it is difficult to establish firm links with international traders for new products. Lack of expertise and facilities for carrying out analytical tests of products. At the moment Bio Bhutan sends its product to labs abroad for testing. This incurs courier and testing costs. It would be highly beneficial for many farmers and entrepreneurs of Bhutan if testing expertise and facilities could be established in the country. Cultivation of NWFPs is an available option to help reduce cost of production and increase the competitiveness of Bhutanese NWFPs in the international market. Conduction of cultivation trials of potential NWFPs by the relevant agency under the government would be highly beneficial for farmers and private entrepreneurs of Bhutan.

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NWFPs in the Forest Diploma Program - College of Natural Resources, Lobesa

Prepared and presented by Ugyen Dorji 1. Introduction

College of Natural Resources which was formerly NRTI was established and started its first batch Diploma training in animal husbandry, Agriculture and Forestry from July 1992. Since then a good number of extension agents were trained and they are in the field with the Ministry of Agriculture. So far no major changes and amendments were made to the syllabus of the Forest Diploma Program particularly the non-wood forest products. This would mean the entire forest diplomat past out and the ones who will pass out in future will have similar level of grounding in non-wood forest products. As required by the Forest Resources Development Division, the Institute does not have a separate or special mandate as such to do the research and development work regarding the NWFP. In-fact we are touching upon all the important forestry subjects within the period of two years for the diploma program. Therefore, this paper is not able to follow the structure given by the FRDD. Instead it will show module covering NWFP elements, NWFP related modules, module details and some challenges envisaged for the development and sustainability of NWFP usage as follows: 2. 2.1. Sustainable Forest Utilization (a module) General information:

This is a module regarding the general utilization of forest products. It deals with both non wood and wood forest products utilization. The module code is FU21 which means Forest utilization taught in 2nd year 1st semester. The size of the module is 12 credit points which is 120 credit hours of teaching and learning period. Out of 120 hours, 30 hours (3 credit points) are engaged with the learning on non wood forest products. Therefore, the proportion of time for non wood forest products within this module is 25%. But on the whole diploma program the proportion of time for non wood forest product is 1.25% only. 2.2. Purpose and focus of the module:

To name and explain the provenance, processing, and use of all current major and minor forest products. It aims at providing with adequate knowledge and skills on harvesting, processing and use of the different forest products. Products mean both non wood and wood forest products. The theoretical input is supplemented by study tours and block week programs, where the trainees are exposed to real situation for observation, participation and practical exercises. 105

2.3.

The elements of non wood forest products coverage in this module:

2.3.1. Minor Forestry Products Fiber, flosses, grasses, bamboos, and canes Essential oil and oil seeds Medicinal plants Gums and resin, lac, tan and dyes Animal products etc Resin tapping

2.3.2

Species producing resin Equipment needed for resin tapping Site selection for resin tapping and crop preparation Method of resin tapping Manufacture of rosin and turpentine with their uses Rules of resin tapping

2.3.3 Manufacture of charcoal Spp. for charcoal making Methods of charcoal making Uses of charcoal Harvesting of lemon grass oil

2.3.4

Spp. of grass used for lemon grass oil extraction Manufacturing process Use of lemon grass oil

2.3.5. Manufacturing of traditional paper (desho) Plant spp. used for desho making Manufacturing process Uses

2.3.6 Incense making a. Ingredient and raw material used b. Manufacturing process c. Uses 3. Other modules related to NWFP

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The following are the modules having some relations with NWFP in terms of measurement and culture: 3.1 Forest mensuration modules

There are two mensuration modules for the diploma program. The module FM21 of 12 credit points is taught in 2nd year 1st semester and the second module FM22 of 12 credit point is taught in 2nd year 2nd semester. Theses two modules are meant for general forest Inventory and measurements. The non wood forest products other than annual and seasonal products could be measured and inventoried by the methods and procedures covered by these two modules. The inventory and measurements of annual and seasonal forest products such as mushrooms should be explored for more ways and means. 3.2. Silviculture modules

There are four modules regarding silviculture. They are FB11, SC11, SC12 and NP12. All are of 12 credit points. These modules cover Taxonomy, Botany, Locality factors, silvicultural systems, nursery and plantation. These modules are important for the sustainable management and domestication of forest products. 4. Some activities on NWFP at CNR

The students are required to do project works in their final year. Some students carry out project on NWFP topics such as wild fodder, medicinal plants, ethno medicine, cactus in Wangdue Valley, Lantana camera and Parthenium hysterophorus in Wangdue Valley. Basically they try to explore and document the ecological impacts, Identification, uses, distribution, indigenous knowledge and abundance of the species. Such activities are carried out by the Institute in a small way. 5. Challenges in NWFP development

Non wood forest products were called as minor forest products in the earlier times. Now people address it by different names and yet it has not gained the full consideration of its importance and potentiality. Due to this perception not much has been explored and studied regarding NWFP. The basic challenging question is How to make the use and harvesting of NWFP sustainable? To put the mechanism in place for sustainability we need to have the following basic information on NWFP: Distribution Abundance (including the quantity of parts used) Regeneration Quantification of NWFP harvested Gathering of above information will be much challenging and costly as compared to Inventory and assessment involved for trees. For trees the distribution is quite clear and we can assess other information quite easily through statistical assessment methods. NWFP are usually distributed irregularly in space and time. Some are distributed

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sporadically and some in patches. NWFP such as mushrooms and other seasonal products will be far more challenging to assess its distribution and other subsequent information. So we have to really explore and make break through how to collect this information for sustainability at a cheaper cost in terms of resource and time. 6. Curriculum Structure of Forestry Diploma Programme Year 1 Semester 1 Module Common Modules Communication Extension I Module Credit Code Point & CE11 SS11 6 12 Year 1 Semester 2 Module Common Modules Communication & Extension II CE12 Farm Household Attachment FA12 Research & Statistics RS12 Specific Modules Applied Silviculture Forest Survey Nursery & Plantation Module Credit Code Point

12 6 6

Soil Science Specific Modules Geographic Information System Foresty Botany Foresty Law & Policy Fundamentals of Silviculture

SV11 FB11 LP11 SC11

12 12 6 12 60

SC12 SV12 NP12

12 12 12 60

Year 2 Semester 1 Module Common Modules Environmental Science Farm Economics Project Work Specific Modules Forest Protection Forest Mensuration I Forest Road Sustainable Forest Resource Utilization Module Credit Code Point

Year 2 Semester 2 Module Common Modules Farming System Marketing Geog Attachment Project Work Specific Modules Forest Mensuration II Social Forestry Wildlife Science Module Credit Code Point & FS22 FA22 PW22 FM22 SF22 WL22 6 12 6 12 12 12 60

ES21 FE21 PW21 FP21 FM21 FR21 FU21

6 6 6 12 12 6 12 60

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NWFPs - Ugyen Wangchuk Environmental and Forestry Institute, Lamegonpa, Bumthang

Prepared and presented by Dechen Dorji Academic Goal: Achieve a holistic understanding of the entire NTFP system, as conveyed in the diagram below. Overarching theme: The importance of NTFP to Bhutanese Lifestyle, livelihood and legacy Biology harvesting processing marketing policy and management

Practical Goal: Teach professional management of NTFP. Professional management has two components: 1. Science based management techniques (both social and management techniques), and 2. respect and working knowledge of the importance of NTFP to Bhutanese culture The use of NTFP intensity of use, variety of products, social and economic importance of use- varies immensely with the variation of Bhutans ecological zones. The module will equip students with the general idea of the NTFP that are most important in the different regions of the country. More, importantly, however the module will provide students with tools to allow them to deal with the all-encompassing reality of NTFP management in the field; students will learn how to critically approach the myriad aspects of the NTFP value chain. The module will address biological value, economic value and cultural value. The central thread will thus be a holistic and interrelated understanding of the entire NTFP system availability, extraction, processing, marketing, policy and management. After taking this course, students should recognize NTFP as an integral element of management consideration for any forest area- be it a Protected Area, a Forest Management Unit, a Community Forest, or otherwise. Perhaps most importantly, this course will integrate the relationship that NTFP have with Bhutanese culture into all elements of the curriculum, thus combining natural science and social science in order to realistically portray the complex and critical importance of the relationship of the Bhutanese people to their forests.

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NWFP curriculum
Wk Subject Readings Assignment / Field Work Web browsing activity key players and definitions

Overview 1 NTFP definition, terms, worldwide history and overview.

NTFP in Bhutan

Local Knowledge and Ethnobotany

1. JEM Arnold 2. Thadani, Rajesh 2001 3. Ruiz Prez 4. Peters 1989 5. Amaruekachoke 5 6.Online readings (see Assignment 1.FRDD 20 Priority NTFP Report 2.Dorji 1995, Tables 10 and 11 3.FAO Bhutan NWFP Report 4.Dr. Chadras report 5.Namgyel 2003. 6.Amaruekachoke 7 - Love and Jones 2001 - Alexiades selection - King et al 1996 - Wagner, J. 1994 - Namgyel, P. 1996 - Tsering page 75 (combining IK and SK) 1.Qualitative survey of Bumthang Dzongkhag by FRDD 2.Peters 1996, selected section on Inventory 3.Baker, N., ed. 2001 4.FRDD guidelines (if not, Dehradun manual) - Putz et al. 2000, Schwartzman et al. 2000 - Terborgh, 2000(or another pair conveying opposite sides) - Leakey 2003 - Aston 1994 - Chandrasekharans Strategy on domestication (currently Strategy #3) - Short article/report on Chinese cultivated Cordyceps and why Chinese pay more for Bhutanese Cordyceps 1. RNRRC work on Bamboo harvesting methods (most current document) 2. Messerschmidt, D.et al.2001 3. Case study- maybe Daphne -Harvesting guidelines for mushrooms in

One-page intro profile of one of Bhutans priority NTFP

Local Knowledge in Bumthang Exercise (divide into teams, investigate a particular product such as bamboo). Inventory of NTFP in Lamegompa forest (mushrooms and bamboo). Collection of specimens and subsequent identification. Paper: take one side of sustainability debate and refute the opposing view (to prepare for in-class debate).

Biology 4&5 Inventory Methods overview and specifics (2 weeks)

Issues in NTFP: Sustainability, conservation, marketing, communal and corporate benefit ?, TK and IPR

Harvesting Methods- plant Guest speaker Norbu Gyeltshen ( or current NTFP specialist at RNRRC) Harvesting Methods- Fungi

Visit Bamboo site above Institute. Visit RNRRC research site in Tang Field visit to Ura

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and resin Guest speaker: ex. National Mushroom Center, DoF

Bhutan -Dr. Jones (RNRRC Yusipang) most recent work on Cordyceps -Hosford et al. 1997 -Pilz and Molina. -Amaruekachoke 9-12 -Community Forestry Manual selection on Resin harvest. -handout on different resin harvesting methods. 1.Introduction to Value Chain 2.Prasad et al 1999 3.De Silva, T. & Atal 4.Chandrasekharans Strategy on value addition 1.Wijesekera, R. O. B., 1997 2. Prommegger et al, 2005. 3. Article on drying methods (?) 4.DOF (or RNRRC) Cordyceps training methods 4.Amarakachoke 19-21 (description of lemongrass)

matsutake harvest; report on evaluation of current harvesting techniques (from local knowledge interviews and from biological observation).

Processing 9 Processing Overview: the importance of value-addition

Begin work on final group project

10

Processing details training, special equipment

Field trip to see lemongrass distillation and Daphne factory? OR drying trial (drying in full sun vs. shade vs. over fire) Potential Field Trip to incense-processing plant.

Economics and Marketing 10.5 Cooperative Group Formation 11 Economics domestic vs. cash, bioprospecting, ethics. Enterprise formation

1.Varughese, 1999 2.Chandrasekharans Strategy on cooperatives (currently Strategy #9) 1.Commercial Use of Biodiversity (FAO) 2. Sullivan et al 2003. 3. Salafsky et al 2001. 4. Report from BioBhutan? 5. Report from Tashi Commercial? 6.Taylor 1999 7.Chandrasekharans Strategies on economics and marketing (currently Strategies #2 and 5) 8.Amaruekachoke 36-7 1.Enterprise Development for Natural Products Manual (ANSAB) 2.Walter 2002 -Wood et al -Aumeeruddy-Thomas 2001 -Pahlen et al 2002 Winners and losers debate, incorporating analysis of Local and International companies

12

Economics example #1: Marketing overview and example Economics example #2: Medicinal Plants and a value chain example (NITM

Literature review, Marketing analysis etc. Final project

12.5

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Pharmaceutical unit) Policy 13 Law and Policy

-Sharma (Cordyceps Current Science) -Amaruekachoke 12-13 -Current policy for NTFP in Bhutan (Do we have One ??) -NTFP in Forest and Nature Conservation Act - Prasad 1999 - Mukhia- management of Illicium(focus on royalty discussion) - Amaruekachoke 6,37,45 1. Community Forestry Manual selections 2. FRDD publication 3. Dorji 1995. pg 36 (lemongrass paragraph), revisit tables 10 and 11. 4. Example of Management Plan that addresses NTFP (possibly Lemongrass MP from Mongar; Community Forest or FMU) Molina et al 1997 Sheil et al 2002 Final Project

Management 14 NTFP Management in Bhutan

Project Work (group or Individual)

Conclusion 15 Conclusion : Course Synthesis Exam period 16-17 Final Project presentations

Finish final project

Additional elements Make teaching dynamic, captivating, and practical case studies short field exercises and visits guest speakers NTPF nursery demonstration and experimentation Healthy, inspiring campus environment Forestry museum voucher specimen collection Documentation of historical, cultural and spiritual aspects of NTFP in Bhutan Embrace principles emerging from national curriculum workshops deep learning, exploratory learning 112

importance of field work active research, easily applied passion for nature Institutional linkages

A well-stocked, well-organized library Organize the many dispersed natural resources reports, articles, newsletters, academic theses relating to Bhutan. This will streamline information dissemination for the entire country.

A center for visiting scholars and scientists Create Educational centres of excellence that provide opportunities for reflection, catering to the needs of academics, scholars, and writers drawn from the world community who would choose to spend time at institutions in an environment that nurtures creativity. (Bhutan 2020). A symbiotic interaction: they are inspired to reflection and creativity; the Institute benefits from their new ideas, their interaction with students.

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List of publications in the library Aagesne, D. 1998. Indigenous resource rights and conservation of the monkey-puzzle tree (Araucaria araucana,Araucauriaceae): a case study from southern Chile. Econ. Bot. , 52(2): 146. Abrecht, J. 1993. Tropical forest conservation and development: a bibliography. St Paul, Minnesota, University of Minnesota Forestry Library. Acharya, B., Bhattarai, G., de Gier, A. & Stein, A. 2000. Systematic adaptive cluster sampling for the assessment of rare tree species in Nepal. Forest Ecology and Management, 137(1-3): 65-73. Adger, W. N., Brown, K., Cervigni, R. & Moran, D. 1995. Total economic value of forests in Mexico. Ambio, 24(5): 286-296. Ahmed, A. K. & Johnson, K. A. 2000. Horticultural development of Australian native edible plants. Australian Journal of Botany, 48(4): 417-426. Ahmed, S. 1995. The multiple uses of the pesticide tree. CERES, 27(5): 4-6. Al-Douri, N. A. 2000. A survey of medicinal plants and their traditional uses in Iraq. Pharmaceutical Biology, 38(1): 74-79. Alexiades, M. N. & Wood Sheldon J. 1996. Selected guidelines for ethnobotanical research: a field manual. Advances in Economic Botany vol 10. The New York Botanical Garden, New York. 306 pp. Alfarhan, A. & Ghazanafar, S. 1997. Conservation of medicinal plants on the Arabian Peninsula: two case studies (Salvadora persicaandGlycyrrhiza glabravar. glandulifera). Medicinal Plant Conservation, 3: 15-16. Altan, Y. 2001. Some interesting endemic plants collected from the east and northeast of Turkey and their threatened categories. Pakistan J. Bot., 33(2): 157-166. Alvarez Torres, M. 1999. Sistema tradicional de alimentacin de patos y gallinas en una comunidad negra del Pacfico colombiano. Programa Bosque Hmedo. Medelln, Colombia, Fundacin Espav, 55. Amadi, R. M. 1993. Harmony and conflict between NTFP use and conservation inKorupNational Park. Overseas Development Institute. Amaranthus, M. P. Commercially important edible mushroom across spatial temporal scales: a case study of the American Matsutake. Portland, OR, USA, USDA Forest Service, Pacific Northwest Research Station. (in press) Amatya, Swoyambhu Man, ed. 2000. Proceedings of the Third Regional Workshop on "Community-Based NTFP Management". (For more information, contact: Dr Swoyambhu Man Amatya, Director-General, Department of Forest Research and Survey, PO Box 339, Babar Mahal, Kathmandu, Nepal; fax: +977 1 220159; e-mail: foresc@wlink.com.np ) Anon. 1995a. Bamboo/rattan worldwide. INBAR Newsletter, 3(1): 8-13. Anon. 1995b. Marketing of multipurpose tree products inAsia. Proceedings of an international workshop, Baguio City, the Philippines, 6-9 December 1993. APAN Publication. Anon. 1996. German trade in medicinal plants revealed. Plant Talk 4: 11. (largest importer of plant drugs in Europe: 1560 different species).

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Appendix 2: List of participants

Ministry of Agriculture 1. Mr. Sangay Tsewang, Chief Marketing Officer, AMS 2. Mr. Dorji Rinchen, AMS 3. Mr. Karma Gyeltshen, AMS 4. Mr. M.B.Chhetri, AMS 5. Mr. Dawa Penjor, Program Director, National Mushroom Center, MoA 6. Mr. Yeshey Dorji, Policy & Planning Division, MoA Council of Renewable Natural Resources Research in Bhutan 7. Dr. Lungten Norbu, Program Director, RNR-RC (Yusipang) 8. Ms. Kunzang Choden, Research Officer, RNR-RC (Yusipang) 9. Dr. Tashi Dorji, Program Director, RNR-RC (Jakar) 10. Mr. D.B. Chettri, Sr. Research Officer, RNR-RC (Jakar) 11. Mr. Dorji Wangchuk, Chief Research Officer (Mushroom), RNR-RC (Jakar) 12. Mr. Sangay Duba, Program Director, RNR-RC (Bajo) 13. Ms. Dil Maya, CBNRM Junior Advisor, CoRRB (RNR-RC Bajo)/SNV 14. Mr. Tayan Gurung, Program Director, RNR-RC (Wengkhar) 15. Mr. Purna B.Chetri, RNR-RC (Wengkhar) Department of Forestry 16. Dasho Dawa Tshering, Honorable Director General 17. Dr. Sangay Wangchuk, Nature Conservation Specialist, NCD 18. Mr. Raling Ngawang, Project Director, Royal Botanical Park 19. Mr. Dechen Dorji, Project Director, UWIE&FS, Bumthang 20. Mr. Hans Beukeboom, Participatory Forest Management Project Advisor, SFD/ Helvetas 21. Ms. Marianne Meijboom, NWFP Specialist, FRDD/SNV 22. Dr. D.B.Dhital, Chief Forestry Officer, FRDD 23. Mr. Gopal Mahat, Chief Forestry Officer, Forest Protection and Utilization Division 24. Mr. Chado Tshering, Chief Forestry Officer, SFD 25. Mr. K.B.Samal, Chief Forestry Officer, Trashigang 26. Mr. Passang W.Norbu, Chief Forestry Officer, Samtse 27. Mr. Sonam Wangyal Wang, Park Manager, Jigme Singye Wangchuk National Park 28. Mr. Karma Tenzing, Park Manager, Bomdeling Wildlife Sanctuary 29. Mr. Karma Thinley, Park Manager, Jigme Dorji National Park 30. Mr. Wangdi Gyeltshen, DzFO, Samdrupjongkhar 31. Mt. Karma Tempa, DzFO, Trongsa 32. Mr. Prabhat Mukhia, Sr. Forest Ranger, SFD 33. Mr. Kaka Tshering, Forestry Officer, FRDD 34. Mr. Arun Rai, Forestry Officer, FRDD 35. Ms. Sonam Peldon, Forestry Officer, FRDD

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Department of Horticulture 36. Ms. Kesang Tshomo, Program Officer, Organic Farming 37. Ms. Irene Christiansen, Agriculture Enterprise Specialist, SNV/Horticulture College for Natural Resources 38. Mr. Ugyen Dorji, Forestry Faculty Head Forest Development Corporation Limited 39. Mr. Gyem Tshering, Deputy Managing Director Ministry of Trade and Industry 40. Mr. Dorji Wangdi, Joint Director, EODP & REM, Dep. of Industry Institute of Traditional Medicine Services 41. Mr. Phurba Wangchuk. Sr. Research Officer, ITMS Private sector 42. Ms. Karma Yangzom, Managing Director, Bio-Bhutan 43. Mr. B.N. Sharma, Program Officer, Bio-Bhutan 44. Ms. Chimmi Pelmo, Manager, Nado Incense Factory Other Agencies 45. Dr. Hikojiro Katsuhisa, Chief Forest Product Services, FAO Rome 46. Mr. ChadoTenzin, FAO-Netherlands Partnership Programme 47. Mr. Mencha Wangdi, Program Officer, WWF 48. Mr. Karma Tenzin, WWF 49. Dr. Irmela Krug, Medicinal Plant Specialist, Medicinal & Aromatic Plants program 50. Ms. Srijana Rana, Marketing & Enterprise Development specialist, SNV, Khangma 51. Mr. Galey Tenzin, SNV, Trongsa 52. Mr. Namgay, Field Officer, Tarayana Foundation 53. Ms. Sonam Pem, Program Officer, Tarayana Foundation 54. Mr. Dawa Tshering, Field Officer, Tarayana Foundation 55. Mr. Sonam Jamtsho, Field Officer ( Mongar), Tarayana Foundation 56. Ms. Karma Choden, Program Officer, BCCI

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Appendix 3: Workshop agenda

Day 1 Time 8:30 - 9:00 9:00 9:00 - 9:20 9:20 9:25 9:25 9:40 9:40 9:50 9:50 10:20 10:20 10:30 10:30 10:40 10:40 11:15 Opening Session Registration of the Participants Arrival of chief guest Marchang ceremony Welcome and opening Keynote address by the chief guest Vote of thanks Tea/Coffee Break Technical Session Introduction to the workshop Introduction of participants Presentation of Dr. Chandrasekharans report on Bhutans NWFP sector Presentations on the existing experience, results & impacts, plans and information needs; Block 1: Forestry institutions Presentations continued; Block 2: NWFP marketing Presentations continued; Block 3: RNR-RCs Lunch Presentations continued; RNR-RCs Presentations continued; Block 4: NWFP products Tea break Presentations continued; Block 5: Training & extension Finalization of matrix of affiliation and wrap-up of day 1 Presenter

Director General-DoF Secretary, MoA Dr. D.B. Dhital, FRDD

11:15 - 12:15 12:15 12:45 12:45 13:00 13:00 14:00 14:00 14:45 14:45 15:45 15:45 16:00 16:00 16:30 16:30 17:00

Dr. D.B. Dhital, FRDD All Participants Dr. Hikojiro Katsuhisa, Chief Forest Product Services, FAO Rome FAO FRDD, SFD, NCD, FDCL AMS, MTI 4 RNR-RCs and CoRRB

RNR-RCs Mushroom center, ITMS, Nado Incense factory, BioBhutan CNR, UWIE&FS Marianne Meijboom, NWFP Advisor SNV/FRDD

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Day 2 Time 9:00 9:30 9:30 10:30 10:30-10:45 10:45 13:00 13:00 14:00 14:00 15:30 15:30 16:00 16:00 16:30 Topic Introduction to day 2 of the workshop Proposal and agreement on priority themes, issues and major activities Coffee break Development of 6 months action plans Lunch Presentations of the action plans and plenary discussion Tea break Identification of lead agencies to followup on the implementation of action plans; Discussion on the need for the establishment of a NWFP task-force Summary and closure of the workshop Presenter

Group work; facilitators

Plenary discussion

16:30 17:00

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Appendix 4: Evaluation results

At the end of the workshop a brief evaluation was held to get feed back of the participants. When asked for their overall expression of the workshop, 36% of the participants responded that the workshop was excellent, while 64% considered the workshop as good to very good. When asked if the workshop met the expectations, 46% responded fully, 51% responded satisfactory and only 3% admitted that the workshop had not met their expectations. The following recommendations, suggestions and comments were provided by the participants: Organize a workshop in 6 months time Such kind of workshop should be organized regularly More of such collaborative workshop. Monitoring and evaluation of action plans as committed by different stakeholders Distribute the summary of the workshop to all participants There should be a draft follow- up plan with a time table. Follow up needs to be done seriously. Need for more discussions on issues related to presentations and field issues of NWFP use and access. Make the guidelines/ outcomes of group work clearer. NWFP division should be created so that the program may have a better concentration Need to clarify the roles - support by DFO Clear stand on NWFP development by DoF Relation between DoF and other agencies Organization of the workshop is good There should be discussion and group work after few presentations. Duration of workshop should be extended to at least one week to get comprehensive information and thrash out the issue Should follow the recommendations of the workshop & continue co-ordination among stakeholders. List of products could have been assessed in terms of work being done so far as to enable us to get an idea Well organized and co-coordinated workshop Committed follow up actions to translate the decisions into action.

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