Bio Trade in Nepal

Himalayan Bio Trade Pvt. Ltd- Sustainable Sourcing and Marketing of Natural Products: A

Success Story

Agriculture and Forestry Sector

Saraswoti Rai Gurung

Where we work?

Our success story: Production to Export

• Himalayan Bio Trade Limited (HBTL), a natural products processing and marketing company with a focus on community enterprise, was established in 2000

• With focus on domestic market initially we started production of Wintergreen oil and Handmade paper in 1996 in Dolakha

• Our goal is to create income and employment in the rural parts of Nepal and linking these value added communities produce to international market

What are our products?

Our success story: Production to Export

• We partnered with Aveda Corporation to achieve the common goal of producing sustainable, social and environmental plant-based products in 2003

• This partnership helped us secure world’s first FSC certified handmade paper; Nepali Lokta paper

• As of 2016, Aveda Corporation has purchased a total of 2.5 million sheets and props

Our success story: Production to Export• HBTL and its community enterprises have received Forest

Stewardship Council (FSC) Organic and Wildlife Friendly Certifications

• HBTL offers a range of certified organic natural products, including essential oils, Nepali handmade paper products, Himalayan nettle products, Vegetable oils and herbs

• HBTL started exporting essential oil in 2003 and now expanded to over 20 countries with more than 50 companies valued (approx. NPR 85 millions in 2015/16)

• HBTL is now working in 30 districts in Nepal and has 100 distilleries and 10 expellers

Our success story: Production to Export• Our annual production is about 15 tons of essential

oils, 500,000 sheets of handmade paper, 25 tons of vegetable oils and over 15 tons of raw herbs

• HBTL has created income and employment opportunities to over 15,000 people of whom about 90% are woman

• A total of 550 households benefitted from Corporate Social Responsibility (CSR) program, the majority belonging to indigenous communities are involved in Lokta collection and Nepali paper making

Whom we work with?

Challenges of Non Timber Forest Product (NTFP)

• Lack of stock inventory of NTFP

• Many potential herbs are not yet in the Government Royalty list, thus have no clear policy/mechanism of their collection and processing, though revision is underway.

• No clear policy and mechanism to encourage exports of NTFP.

• Lack of skilled manpower and poor industrial relations are some of the key issues.

• Lack of efficient processing technology.

Whom we work with?

Prospects of FDI in Non Timber Forest Product (NTFP)

• It is important that government should prioritize Natural Products in high priority due to its huge demand in global market

• However, lack of appropriate technology for processing has added cost to the products. We can lower cost if we could value add it in Nepal

• FDI through a joint-venture partnership model can be helpful in enhancing technology in producing and marketing natural products

Prospects of FDI in Non Timber Forest Product (NTFP)

• In addition, FDI can be instrumental in producing skilled manpower to produce natural products with higher value addition

• However, need of clear government policies and programs to FDI in the areas like subsidy to farmers and SMEs, technological innovation, value addition and incentives for exporters

Socio-economic Prospects of NTFP Sector

• Income and employment creation at local level

• Remote rural woman, basically in high mountains dependent on collection and trade of NTFP for livelihood

• Approx. 350,000 people are involved in the NTFP value chain

HBTL and social responsibility

Thank you!!!