Social Science Baha

Public–private Partnerships in Resource Commercialization Focused to NTFPs

Dipesh Pyakurel and Bhesh Raj Oli

The value of Non-Timber Forest Products (NTFPs) has been recognized widely with its increasing contribution to the Nepalese economy. Collection and trade of NTFPs is a major source of rural income and contributes from 10% to 100% of the total annual income in some hilly areas. The major categories within the NTFPs trade/export comprise of crude herbs, essential oils, fibers & handmade papers, ayurvedic products, cosmetics and vegetable oils.

Commercialization of resources, specially the enterprise and business promotion of NTFPs through Public–private partnership (PPP) model has been sought as essential by the recent study carried out for Federation of Nepalese Chamber of Commerce and Industry (FNCCI) and Nepal Herbs and Herbal Products Association (NEHHPA) in process of developing a NTFPs business promotion strategy.

The strategy paper has focused 20 NTFPs species to be promoted on 12 bio-geographic regions. At least two to maximum of six species falls under each bio-geographic zones. Species are selected based on their availability, trade aspects, market value and demand, and prospects of value addition/extraction. The paper recommends that promotion should be primarily done in the identified bio-geographic regions with replication in ecologically similar areas after successful intervention. The list of 20 species includes 13 prioritized species by GoN and some exotic species like Mentha, Chamomile, Lemongrass, etc. 

Disaggregated, unorganized and isolated way of promotion and support by GOs/NGOs/INGOs and private companies in NTFPs sector fails to deliver good return and have been collapsed at the later stage. A PPP and joint model of investment has been suggested for long term sustainability of the enterprises through one door system focused to specific NTFPs in particular zones. Irregular support and insufficient investment by government agencies in NTFPs sector has discouraged the PPP model of investment, for which the GoN should take into consideration.