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Agriculture & environment

NTFPs & Medicinal Herbs (Jadibuti) of Nepal: A Directory

Nepal's non-timber forest products (NTFPs) and medicinal and aromatic plants, known locally as jadibuti, are a major mountain livelihood and export earner. This directory profiles the country's most commercially traded species, including Yarsagumba, Lokta, Argeli, Chiraito, Jatamansi, Timur, Sugandhawal, Kutki, Satuwa and Panch Aunle, with local and scientific names, growing regions and elevations, uses, and trade, export and regulation notes.

Common termJadibuti (medicinal and aromatic plants / NTFPs)
Estimated species~2,000 potential MAP/NTFP species; ~100-165 commercially traded
Lead agencyDepartment of Plant Resources (est. 1960 AD), Ministry of Forests and Environment
Key policyHerbs and NTFP Development Policy, 2004 (BS 2061); 30 priority species
Top-value speciesYarsagumba (Ophiocordyceps sinensis), ~3,000-5,000 m alpine meadows
Lokta paper sourceDaphne bholua & Daphne papyracea bark, ~1,600-4,000 m
Argeli export useEdgeworthia gardneri bark exported to Japan for banknote (yen) paper
Main export marketsIndia (herbs, oils) and China (Yarsagumba, Satuwa)
Industry bodyJadibuti Association of Nepal (JABAN)
In depth

What are NTFPs and jadibuti in Nepal?

Non-timber forest products (NTFPs) are all the useful materials that forests yield other than timber: medicinal and aromatic plants (MAPs), fungi, lichens, resins, bark, seeds, essential oils, wild foods and fibres. In Nepal these are popularly grouped under the Nepali word jadibuti (herb or medicinal plant), and they underpin traditional Ayurvedic, Amchi (Sowa-Rigpa) and Unani medicine as well as a fast-growing export sector.

Nepal's biological range, from the subtropical Tarai up to the trans-Himalayan alpine zone, gives it exceptional plant diversity. Estimates suggest the country holds the potential for roughly 2,000 MAP and NTFP species; more than 800 have been documented with recorded uses, and figures commonly cited by researchers and the Jadibuti Association of Nepal (JABAN) put the number of commercially traded species at around 100 to 165. In practice, about 20 species account for roughly 80 percent of the trade by volume and value.

The lead government body is the Department of Plant Resources (DPR), formerly the Department of Medicinal Plants, established in 1960 AD, under the Ministry of Forests and Environment. Collection, transport and trade are also overseen by the Department of Forests and Soil Conservation (DoFSC), while the Herbs Production and Processing Company Limited (HPPCL) and JABAN support processing and marketing. Nepal's Herbs and NTFP Development Policy, 2004 (Bikram Sambat 2061) prioritised 30 species for development and selected a smaller subset for focused research and commercial cultivation.

  • NTFP = everything a forest provides except timber: herbs, fungi, resins, bark, oils, wild foods and fibres.
  • Jadibuti is the common Nepali umbrella term for medicinal and aromatic plants.
  • Estimated potential of ~2,000 MAP/NTFP species; ~100-165 commercially traded.
  • Lead agency: Department of Plant Resources (est. 1960 AD), Ministry of Forests and Environment.

Yarsagumba: the caterpillar fungus of the high Himalaya

Yarsagumba (Ophiocordyceps sinensis, formerly Cordyceps sinensis), literally the summer-plant winter-insect, is Nepal's most famous and most valuable jadibuti. It is not a plant but a fungus that infects and mummifies the underground larvae of ghost moths (Thitarodes), producing a slender fruiting body that pushes above the soil. It grows only in alpine meadows roughly between 3,000 and 5,000 metres.

The main harvesting districts lie in the far-western and mid-western high mountains, especially Dolpa, along with Jumla, Mugu, Kalikot, Darchula, Bajhang and, in the east, Sankhuwasabha. The picking season runs from about April to June, just before and into the early monsoon, when tens of thousands of collectors camp in the high pastures. Government estimates of the legal annual harvest are commonly in the range of a few hundred kilograms, though real volumes are hard to measure.

Prized in Chinese and Tibetan medicine as a tonic, Yarsagumba commands extraordinary prices, frequently quoted in the millions of Nepali rupees per kilogram, making it, weight for weight, more valuable than gold. Most is exported, largely to China and via Hong Kong. Collection was effectively legalised in 2001, and it is now managed through royalties and permits, but over-harvesting, resource conflicts and the effects of a warming climate are serious sustainability concerns; the IUCN assessed the species as Vulnerable in 2020.

Paper plants: Lokta and Argeli

Lokta is the fibrous inner bark of high-elevation Daphne shrubs, mainly Daphne bholua and Daphne papyracea, which grow on Himalayan slopes roughly between 1,600 and 4,000 metres across many districts. Its long, strong fibres are cooked, beaten to pulp and hand-cast on frames to make lokta paper, Nepal's celebrated handmade paper, traditionally used for government records, religious texts, certificates and, today, premium stationery, gift wrap and craft products. Because the bark regenerates in a few years after careful cutting, harvesting can be sustainable when the plant is not uprooted.

Argeli (Edgeworthia gardneri), a related shrub of the mid-hills at roughly 1,500 to 3,000 metres, has become a notable cash crop in districts such as Sindhupalchok, Dolakha, Ilam, Taplejung, Baglung and Myagdi. Its bark yields exceptionally strong, flexible, long-fibred paper stock.

Argeli's most striking market is Japan, where its fibre substitutes for domestically scarce mitsumata (Edgeworthia chrysantha) in the manufacture of banknote paper. Nepali farmers now cultivate and process argeli bark for export, and it has been reported as a raw material used in Japanese yen production for years. This has turned a once-overlooked hedge shrub into a valuable export-linked rural industry, although most of the high-value processing profit remains in Japan.

Directory of major traded medicinal and aromatic herbs

Beyond Yarsagumba and the paper plants, a cluster of bitter tonics, aromatic roots and orchids make up the backbone of Nepal's jadibuti trade. Most are wild-harvested in the mid-hills and high mountains and sold, often only lightly processed, to buyers who move them to India and China. The list below gives local name, scientific name, typical growing elevation, and main uses and trade notes.

Several of these species are threatened by unsustainable collection, and their names recur in Nepal's conservation and export-control lists (see the regulation section below). Cultivation is being promoted for some, such as Chiraito, Timur and Sugandhawal, to relieve pressure on wild stocks.

  • Chiraito (Swertia chirayita), ~1,200-3,000 m: whole bitter plant used for fever, malaria, digestion and as a blood purifier; one of the largest-volume herb exports, chiefly to India.
  • Jatamansi / Spikenard (Nardostachys jatamansi, syn. N. grandiflora), ~3,200-5,000 m: aromatic rhizome distilled for essential oil (perfumery, sedative, hair oil); CITES Appendix II and banned from raw (unprocessed) export.
  • Sugandhawal / Indian valerian (Valeriana jatamansi), ~1,500-3,600 m: aromatic rhizome for essential oil and calmative medicine; widely cultivated and banned from raw export.
  • Kutki (Neopicrorhiza scrophulariiflora, formerly Picrorhiza), ~3,000-5,000 m: bitter rhizome used for liver disorders, fever and digestion; a highly restricted alpine species.
  • Satuwa / Love apple (Paris polyphylla), ~1,800-3,500 m: high-value rhizome used as anthelmintic, antidote and in cancer research; heavily traded to China.
  • Panch Aunle (Dactylorhiza hatagirea), ~2,800-4,200 m: a subalpine orchid whose finger-like tubers are used as a tonic and aphrodisiac; CITES Appendix II and subject to a collection and export ban.
  • Timur / Nepal pepper (Zanthoxylum armatum), below ~2,500 m: fruit used as a numbing spice (marketed abroad as timut pepper) and distilled for essential oil; strong culinary and medicinal export to India and Europe.

Resins, essential oils and other forest products

Not all NTFPs are alpine herbs. In the Tarai and lower hills, resin tapping from chir pine (Pinus roxburghii) is an important source of rural employment; the crude oleoresin is distilled into turpentine and rosin used in paints, adhesives and industry. Sal (Shorea robusta) forests yield sal seed (for oil and fat), leaves for making plates (tapari) and bowls (duna), and other by-products, while the fragrant resin known as sal dhoop is used as incense.

Aromatic species feed a distinct essential-oil industry. Wintergreen (Gaultheria fragrantissima), lemongrass, palmarosa, citronella, French basil, Sugandhawal, Jatamansi and Timur are among the plants distilled into essential oils for export, supported by cooperatives and enterprises listed in directories from bodies such as ANSAB (Asia Network for Sustainable Agriculture and Bioresources).

Other frequently traded NTFPs include Sugandhakokila (Cinnamomum glaucescens) berries, Chiuri (Diploknema butyracea) butter, Rittha (soapnut), Bojho (Acorus calamus), Majitho (Rubia manjith), lichens (jhyau) used as spice and dye, and Silajit. Together these diversify mountain incomes beyond the headline species.

Trade, export markets and value chains

Nepal's NTFP economy is overwhelmingly export-oriented, but it trades mostly in raw or semi-processed material, so much of the final value is captured abroad. India is the dominant destination for herbs such as Chiraito, Timur, Jatamansi oil and Sugandhawal, while China is the main market for high-value alpine products such as Yarsagumba and Satuwa. Onward re-export from India and China reaches global Ayurvedic, herbal-supplement and cosmetics industries.

The scale is significant if hard to pin down precisely. Studies have estimated total NTFP trade at the order of tens of millions of US dollars a year, and formal MAP exports have been reported rising from roughly USD 27 million in the mid-2000s to over USD 40 million by the mid-2010s. Actual flows are larger because much trade with India is informal and unrecorded. These figures should be treated as indicative rather than exact.

The typical value chain runs from local collectors and farmers, through village traders and district wholesalers, to exporters and processing enterprises. Collectors, often among the poorest mountain households, usually receive the smallest share. Policy efforts, industry groups such as JABAN, and cultivation and enterprise programmes aim to shift more processing and value addition, such as essential-oil distillation and finished herbal products, inside Nepal.

Regulation, CITES and conservation

NTFP collection and trade in Nepal are governed by the Forests Act, 2019 (BS 2076) and earlier forest rules, plus species-specific notices published in the Nepal Gazette. To move raw material out of its district of origin, collectors and traders need release permits, certificates of origin, royalty payments and, for export, licences and phytosanitary certificates. International trade in listed species is additionally controlled through CITES (the Convention on International Trade in Endangered Species), to which Nepal is a party.

Nepal maintains graded restrictions. A small group of species carries a total ban on collection, use and export, including the orchid Panch Aunle (Dactylorhiza hatagirea), Kutki (Neopicrorhiza scrophulariiflora) and the bark of Okhar (Juglans regia, walnut) under Nepal Gazette notices from 2001. A separate group of around nine species, including Jatamansi (Nardostachys), Sugandhawal (Valeriana), Sarpagandha (Rauvolfia serpentina) and Sugandhakokila (Cinnamomum glaucescens), may not be exported in raw, unprocessed form, a rule meant to push domestic processing and value addition.

CITES-listed Himalayan species traded from Nepal include Nardostachys jatamansi, Dactylorhiza hatagirea, the Himalayan yew (Taxus wallichiana) and all wild orchids. Conservationists warn that over-harvesting, habitat loss and climate change threaten many high-value species, and initiatives such as the Jadibuti Declaration have called for a roadmap toward sustainable, community-based management. For collectors and traders, the practical takeaway is to confirm a species' current legal status with the DPR or DoFSC before harvesting or exporting, because lists are periodically updated.

Questions

NTFPs & Medicinal Herbs (Jadibuti) of Nepal: A Directory — FAQ

What is jadibuti and how many medicinal plants does Nepal have?+

Jadibuti is the common Nepali word for medicinal and aromatic plants and, more broadly, forest herbs. Nepal is thought to have the potential for around 2,000 medicinal and aromatic plant and NTFP species, with over 800 documented for their uses. Of these, roughly 100 to 165 are commercially traded, and about 20 species make up most of the trade by value.

Why is Yarsagumba from Nepal so expensive?+

Yarsagumba (Ophiocordyceps sinensis) is a rare caterpillar fungus that grows only in Himalayan alpine meadows between about 3,000 and 5,000 metres, mainly in districts like Dolpa, Jumla and Mugu. It is highly prized in Chinese and Tibetan medicine as a tonic, and strong demand against a limited, declining wild supply pushes prices into the millions of rupees per kilogram, more valuable than gold by weight.

What is lokta paper made from?+

Lokta paper is Nepal's traditional handmade paper, made from the fibrous inner bark of high-elevation Daphne shrubs, chiefly Daphne bholua and Daphne papyracea, which grow between roughly 1,600 and 4,000 metres. The bark is cooked, beaten into pulp and hand-cast on frames. Because the shrubs regrow their bark within a few years, careful harvesting can be sustainable.

Is it true that a Nepali plant is used to make Japanese money?+

Yes. Argeli (Edgeworthia gardneri), a mid-hill shrub grown in districts such as Sindhupalchok and Ilam, produces a very strong, flexible bark fibre. It is exported to Japan as a substitute for scarce local mitsumata and used in making banknote paper, including for the Japanese yen. This has made argeli a valuable export-linked cash crop for many Nepali farmers.

Which medicinal plants are banned or restricted for export in Nepal?+

Nepal bans collection, use and export of a few species outright, including the orchid Panch Aunle (Dactylorhiza hatagirea), Kutki (Neopicrorhiza scrophulariiflora) and Okhar (walnut) bark under 2001 Gazette notices. Another group, including Jatamansi, Sugandhawal, Sarpagandha and Sugandhakokila, may not be exported in raw, unprocessed form. CITES-listed species also need permits, so always check current rules with the DPR or DoFSC.

What are the most traded NTFPs of Nepal and where do they go?+

By value, Yarsagumba dominates, followed by herbs such as Chiraito, Jatamansi, Satuwa, Kutki, Timur and Sugandhawal, plus lokta and argeli bark, resins and essential oils. India is the main market for herbs and oils, while China buys most of the high-value alpine products. Total NTFP trade has been estimated at tens of millions of US dollars a year, though much India trade is informal.

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