Fes Report

8/13/2019 Fes Report

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CHAPTER- ONE1.1 Background

Federation of Community Forestry Users, Nepal (FECOFUN) was established in 1995 .It is a

leading organization for community forest user groups networking aimed to bring them together

under one umbrella in order to secure their rights towards forestry and guiding them towards betterlivelihood by facilitating to help themselves. By now, it has established itself as the largest civilsociety organization working on the field natural resource management. The concept of communitybased forest management emerged in the late 70s following massive deforestation and natural

resource degradation in Nepal but the concept of community forestry was materialized only in the90s guided by Forest Act 1993 and Forest Regulations 1995, with the advent of multi-partydemocracy in the country.

In recent years, Nepal has become renowned through the example of community forestry.Community Forest User Group (CFUG) and Community Forest (CF) processes have been

remarkably successful in terms of resource conservation and management. Community Forest UserGroup (CFUG) has established itself as a successful model to regenerate and restore natural resource

base which could be replicated effectively. There are more than 17685 CFUGs in the countryreaching out to over 2.17 million households to which 16.5 million ha of forest land was handed over(DoF, CF Database report 2011). This network has been conducting various user-friendly programs

and activities particularly targeted to support the rural poor and forest dependent users. However, CF

development is yet to scale up and build on the lessons learned in many areas such as enterprisedevelopment, promotion, value addition and local level employment creation through sustainablemanagement of forest resources particularly NTFPs, for the better livelihood of the forestmanagers/users. There is still room for improvement in many areas related to generation of positive

social, economical and environmental impacts what'll benefit the local users as well as the nationitself.Nepal has bounty of renewable forest resources which can be used to generate employment in rural

areas, create green jobs, and develop community enterprises along with bio-diversity conservationand governance improvement. Sustainable management of forest (SMF) and FSC certification could

help manage resource in a sustainable way as well as help to establish a link with various nationaland international markets for the trade of high values forest products. In this context, TwinningSupport To The Development of Smallholders Forestry Organization project has proposed to

address the above scenario of the natural resources and provide opportunities to create green jobs inthe rural area. The overall goal of the project is to promote participatory sustainable forest

management through the community based forest enterprises and green jobs in order to improve thelivelihood of forest dependent people The project will also contribute towards fulfilling the vision of

poverty reduction incorporated in Nepal governments three-year interim plan.Under this project, FECOFUN intends to take CFUGs and their community based enterprises in

vertical and horizontal integration through the supply of information and responsible resources and

resources regarding business practices in Nepal. The project will develop and strengthen the capacityof facilitating organizations (which will be involved in project implementation in districts and locallevel), service providers and CFUGs in the project areas in order to commercially manage their forestresources, facilitate the establishment of enterprises, and mobilize community fund and other

resources through community development activities. Despite such facilitations, sustainable supply

of forest products for subsistence use will not be compromised. Also, the project will give specialconsideration to marginalized people and women in the project area so that the issue of equity andsocial injustice is properly addressed.


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FECOFUN has been implementing the project in 20 CFUGs of four districts in the mid-westerncluster. The project has been implemented basically to improve the livelihood of forest dependent

poor people by establishment of community forest-based enterprises and creation of green jobs

through establishment of community forest resources based enterprise. In this regard, Federation ofCommunity Forestry Users Nepal(FRCOFUN) carried out a feasibility study of potential communityforestry based enterprises in the eight CFUGs of the Tulsipur municipality area of the Dang districts

based on the given Terms of Reference (ToR) and within specified time frame.

1.2 Objectives

The main objective of the study was to identify the potential community forest and Agriculture basedenterprises in selected eight CFUGs of Dang district.

1.3 Scope of the Work

The feasibility study was conducted in eight selected CFUGs of Dang within the framework of theAshwara and other seven CFUGs. The scope of the work was to develop community based forest

based enterprise and to create green jobs in the rural portions of the project area.

1.4 Methodology

1.4.1 Study areaThe study was carried out in 8 CFUFs of the Dang districts under the mid -western cluster of the

project.1.4.2 Study Approach

1.4.2.1 Participatory and Consultative (P&C):The study was carried out through participatory approach. Using the participatory methods and

approaches, the study team tried to understand the opinions of various interest groups andstakeholders as well as the potential forest based enterprises in the study districts. Therefore the study

focused on analysis of potential community forestry based enterprises, forest resources, socio-economic condition, potential market, constraints, opportunities along with roles and responsibilities

of the concerned stakeholders.

1.4.2.2 Multi-Perspective (Poly-vocal) Approach: This approach aims to reflect the external andinternal views along with the concerns of stakeholders who are involved in community forestry based

enterprises and its products. Under this approach, the external view such as stakeholders' attitudes

and ideas about the services provided by the facilitative organizations in the natural products waselicited through communication. Similarly, in the internal view internal system, procedures andprocesses in the community and cluster level as well as marginalized and poor people, market and

services was assessed.

1.4.2.3. Combination of qualitative and quantitative data collection methods: The studycombined both quantitative and qualitative techniques for conducting sub-sector analysis of thenatural and other products. The quantitative data was collected from the secondary source whereas

the qualitative data was based on primary data which was collected by using both person specific andgroup focused surveys. (Like PRA and focus survey, key informant survey).

1.4.2.4. Disclosure and Verification Approach: The study followed the disclosure and verification

approach in order to ensure the transparency of findings of the study as well as to develop an

ownership and ensure accountability. This approach not only helped to provide explanations for theabove processes but also facilitated to develop a dialogue with the concerned stakeholders on theissues raised. For this, briefing, debriefing and field level consultative discussions were organized to

discuss the findings of the study.

1.4.3 Sources of Data

A multi-method data collection approach was used in the study. The consultants utilized bothsecondary and primary data related to the project and objectives of the study. The study used a rapid

analysis of district's natural resources and prioritized the products based on their natural resources


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potentiality. Primary data were collected from the study sites (project districts) with the help ofchecklists prepared in advance for the fieldwork

1.4.3.1 Secondary Data

Secondary data collection is also one of the important and relevant methods for the study. Secondarydata were obtained from a wide array of qualitative and quantitative resources such as case studies,literature reviews and desk research which provided information on geographical and biological

aspects, socio-economical aspects, governance and policies along with technological and marketingaspects of natural and other high value products. Project documents, books, and publications required

for literature review and desk research were accumulated from various existing facilities with anemphasis on cost-efficiency.

1.4.3.2 Review of relevant documents from secondary source

The team members reviewed the documents which were collected from different sources includingboth FECOFUN central level and district level organizations. It included review of literature,

published and unpublished documents of concerned stakeholders including websites, annual progressreports, district forest sector plan, five years forest management plan and enterprise related reportsand plans etc.

1.4.3.3 Meeting with Ashwara and other eight concerned CFUGs

The team members met the Ashwara and other eight concerned CFUGsin the field level in groupsor individually ,held preliminary discussions on different aspects and also shared their previousexperiences on enterprise potentiality. An interaction programme was organized among theconsultants and the Ashwara and other eight concerned CFUGs representative which included

discussions regarding the given ToR before field mobilizations. At the meantime, any confusion andquery related to ToR were clarified in the forum.

1.4.3.4 Preparation of checklist/ questionnaire

A set of detailed checklists/ questionnaire were prepared in order to extract information, organize

discussions during interview, and gather primary data. The checklists covered important aspects offorestry based enterprises resources potentiality, value chain and business plan related information inthe target groups in this area.

1.4.3.5 Primary Data Collection

The field visits were carried out in the project's study districts on clusters basis. The primaryinformation were drawn through consulting meeting, focus group discussion, key informantinterview and field observation by the concerned stakeholders, entrepreneurs, marketing centers,

traders etc . The study team members visited different parts of the districts and interviewed directly

to the respondents such as collectors, community leaders, village traders, district level traders andother stakeholders involved in enterprise and marketing. It included the following sources of datacollection.

1.4.3.6 Consultative meeting with district Stakeholders

A separate consultative meeting was held with different stakeholders including DFO, DADO, DDC,

DLSO,traders along with the representatives of networks, federation, non-governmental

organizations and other related stakeholders. This meeting gave the overview of the enterprises

products, its actors and functions status in the district. The study was complemented with interactivediscussion sessions among producer networks, business chambers, and government officials atdistrict and national level in order to deliberate on how sub-sector could serve the people better and

how specific end market studies could be used for demand and consumer trend analysis.

1.4.3.7 Field observation

The study team visited districts of mid-western cluster and directly observed the field level activitiesand their potentialities. During the field visit, potential sites for the enterprises and markets were

observed and relevant information was collected.

1.4.3.8 Focus Group Discussions


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A Focus Group Discussions was organized in each CFUGs and discussions with different focusgroups as like market centers and target groups in different locations were conducted in order to

assess the forest resource based potential enterprises and to collect potential market related

information.

1.4.3.9 Key Informants Interview

Key persons' interviews and discussions were conducted with the officials of DFO, owners of

enterprises, businessmen, concerned district line agencies and other relevant stakeholders in the studydistrict in order to find out the potentiality of forest based enterprises, their function, relation and

stakeholders perception on different enterprises. The information was collected by utilizing aprepared checklist for key informants including CFUG leader, local businessmen, VDC personnel,

MEDEP partner, local farmers leaders, farmers associations, co-operatives etc. A separate openended but structured questionnaire was prepared to cover all the selected topics consistently. Visitswere made to the officials of the concerned district level line agencies to solicit information.

1.4.3.10. Debriefing meeting with stakeholders

The study team presented the preliminary findings of the study prepared by the consultants anddebriefed the information with the concerned stakeholders in the districts in order to get feedbacksand comments on the analysis of natural resource potential product, market and target groups in the

district for future interventions. The meeting identified the market centers and potential enterprises inthe districts.

1.5 Limitations of the study

The study team efforts were made to cover entire topic of TOR and visit all target group and

enterprises in the districts basis. The season had busy of local farmers and rainy season difficult tomanage their time during interaction. But due to a busy schedule of the farmers coupled with the

rainy season, it was difficult to manage time for interaction.

1.6 Report Organization

This report is organized into 6 chapters. The first chapter includes background, objectives, scope,methodologies and limitations of the study. The second chapter presents the general demographicand socio-economic information along with information regarding the infrastructures and

institutional development of the district. The third chapter deals with study findings. The fourth

chapter deals with conclusion and recommendation, the fifth chapter includes references and annexin six chapter.

CHAPTER- 2

2.1 General Introduction of the Study Districts

2.1.1 Location

The feasibility study was carried out in Dang, Salayan, Pyuthan and Rolpa districts in the

Midwestern cluster of the project within the framework, keeping in view of the FECOFUN targetgroups, potential community forestry based enterprises, resources and its market scenario. The studydistricts are located in the mid western development of Nepal. Topographically, the study districtsincorporate the High Mountain, Mid Mountain, Siwalik and Terai regions.. The geographical

location of the study districts are briefly represented in the following table.

Table no: 1Location of the study districts

SN Name of district Latitude Longitude

4 Dang between 27 37 and28 29 North latitude

between 82 2 and 8254 East longitude

(Sources: District profile 2001

Gorahi, Khalang and Libang are headquarters of Dang, Pyuthan, Salayan and Rolpa districtsrespectively. All headquarters have good access to road which connects these headquarters to


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different markets of the Nepal. Rolpa is one of the last established districts of the Nepal. Rolpa islocated in the high mountains whereas Salayan and Pyuthan are situated in the middle part while

Dang is located in the southern parts up to terai region.

Administratively, study districts have 10 electoral constituencies , 46 Illaka and 186 VDCs and 2municipalities. In the study districts of the Midwestern cluster, municipalities are developed innominal scale . Most of the districts headquarters have moved into semi-urban areas. Brief

administrative information is given in the following table.Table no: 2General administrative information

S.N. Particular Dang Pyuthan Rolpa Salyan Total/Avg

1 Total

VDC/Municipality(39+2)

41 49 51 47 188

2 Ilaka 13 11 11 11 46

3 Electoral constituencies 4 2 2 2 10(Sources: District profile 2001)

According to the second national living standard survey conducted by CBS, GoN, per capita food

requirement of Nepal is 2144 Kilo-Calorie. But the calorie consumption of the majority of people

within the study area were found to be low and in direct contrast with the national standard.2.1.2 Physical FeaturePhysiographically, the study district is divided into four ecological regions: high hills, mid hills,

siwalik/churia and terai range. The altitude varies from 213 m (Sisiniaya VDC of Dang) to 3639 m inRolpa district. This variation in altitude within the district is responsible for diverse climatic zonesand richness in biodiversity. Similarly, the microclimatic condition varies from sub-tropical zoneincluding the terai regions of Dang to sub-alpine zone including the upper parts of mountain in Rolpa

district.Rapti is one of the largest rivers of the study districts which flows in the upper part of Pyuthandistrict and passes through Dang district. Madikhola, Lungrekhola, Tribhani, Jhimruk, Mandapi are

few associated rivers flowing in Rolpa and Pyuthan districts. Along with these rivers there are manyTars and Besi which serve as main paddy growing pockets in the mountain region of the districts.

Besides that, the valley and terai region of the Dang district consists of high fertile productive landfavorable for agricultural production. . However, major cultivated areas lie on the steep terraces inthe hilly areas and most of them are rain fed.

2.1.3 Climate

In the study districts of the Midwestern cluster, there is a dominance of temperate climate but there

are few areas fostering sub-tropical humid climate mainly at river basin areas. Furthermore, in thenorthern parts of the study area sub-alpine climate can be found. Difference in altitude is an

important factor influencing the temperature of the districts. The average maximum annualtemperature is 33 C in Dang and minimum annual temperature is 3/6 C in the upper parts of Ropladistrict. The average annual rainfall is 2043.5 mm. Most of the district has rain fed agriculture but

there is a substantial area under irrigation as well.. Four types of climates are observed in thedistricts, which are as follows:

-Alpine climate

2.1.4 Land Resources and Land use pattern


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Based on district profiles, total area of the study districts is 814328.5 ha. Out of them, total 487150hector (60%) is covered by forest. Similarly, out of the total land area, 245965 hectors of area (30.33

%) and 81213.5 hectors of area is occupied by agriculture and others (Rivers, Rocks etc)

respectively. The agricultural land comprises of cultivated and non-cultivated land. The followingtable briefly shows the land use pattern of the districts.

Table No.3 land use pattern of Study districts

Particular Dang Pyuthan Rolpa Salyan Total/Average

1 Total Areaha.

295,500 136500 187150 195178.5 814328.5

2 Total forest

area ha.

192,155 72694 94097 128204 487150

2.a Forest Area

inpercentage

65.% 53% 50.% 66% 60%

4 Agricultureland

90,395 43041 59855 52674 245,965

5 Others 12950 20765 33198 14300.5 81213.5(Sources: FECOFUN Cluster report 2011)

2.2 Socio-economic Characteristics2.2.1 Demographic Characteristics

The total population of the study districts is 1098368 where male and female are 48% and 52%respectively (CBS, 2001). The proportion of male and female is 0.99. The population density of the

districts is estimated to be 73.14 people per sq. km. The total number of households is 216545 with

household size being 5.51 per family. The general demographic information is briefly presented inthe table below.

Table no.4General Demographic Information:

S.N. Particular Dang Pyuthan Rolpa Salyan Total/Avg

1 Population: 462,380 212484 210004 213500 1,098,368Male 49.05% 46.30% 48.38% 50.04% 48%

Female 50.95% 53.70% 51.62% 49.96% 52%

2 Households 82495 40263 38512 55275 216545(Source: LFP Dang Cluster report 2011)

2.2.2 Education /Literacy condition

In the study districts, the average literacy rate was found to be 50.27% which is comparatively lowerthan the national standards. The status of the literacy is shown in figure -1. According to figure 1, the

average literacy rate was found to be 58%, 48%, 53% and 45% in Dang, Pyuthan, Ropla and Salayan

districts respectively. Dang had the highest literacy rate than other districts while Salyan had the

lowest.As per figure no 1, average male literacy rate was 67%, 62%,50% and 59% in Dang, Pyuthan, Rolpaand Salayan districts respectively. Similarly, female literacy rate was 33%, 38%, 47% and 41% inDang, Pyuthan, Rolpa and Salayan districts respectively. On average, female literacy rate was found

to be lower than the male literacy rate. The female literacy rate of the Dang was found to be 33%

which is comparatively lower than other districts.


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Figure 1: Literacy rate in study districts

2.2.3 Caste/Ethnicity composition:The study districts were found to be more heterogeneous in terms of ethnic/caste composition. In the

context of cast composition within the study districts, 45.98% of the people were Brahmins andChhetris, 36.57% were Janajatis and 16.95% were Dalits. In case of Janajatis, 48% were found in

Dang, 39% were found in Pyuthan, 44% were found in and 16% were found in Salayan. In case of

Brahmins and Chhetris, 39% were found in Dang, Pyuthan and Rolpawhile66% were found in

Salayan district. Similarly, in case of Dalits, 12% were found in Dang, 22% were found in Pyuthan,

17% were found in Rolpa and 17% were found in Salayan district., , and . The status of the castecomposition is shown in the figure no.2.According to the figure, 22 % Dalit community were found in Pyuthan district which is the highest

among the study districts. Similarly, 48% Janjati community were found mainly composed of tharucaste in Dang whereas in Rolpa district ,44% Janajati community were found especially containing

Magar caste. A total of 66% Brahmin and Chhetri community were found in Salayan district which isthe highest among the study districts. Dang and Rolpa districts had the highest population of the

Janajati community as compared to other study districts.


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Figure 2: Caste HHs composition in study districts

2.2.4 Language

In the study area, 16 different languages were spoken on an average. Out of the total population,

more than 85.05% people spoke Nepali language, 7.52 % spoke Tharu and 5.61% spoke Magar .InDang, 30.1% people spoke tharu language only. Magar language ranks as the third most frequentlyspoken language in the study districts with 18% of total population in the Rolpa district speaking the

language which is highest among the study districts. The status of languages spoken in the study area

are presented in the table below:

Table No. 5 Population distribution by language in percentage.

S.N. Particular Dang Pyuthan Rolpa Salyan Total

1 Nepali in % 64.5 94.70 81.8 99.21 85.052 Tharu in % 30.1 0 0 0 7.52

3 Magar in % 1.7 2.68 18 0 5.61

4 Newar in % 0.2 1.06 0 0 0.31

5 Other in % 3.5 1.56 0.2 0.79 1.51

Total 100 100 100 100 100

(Source: District Profile, 2001)

2.2.5 Religion status

In the study areas, over 90.70% of the total population followed Hindu religion on an average.

Similarly 8.25% followed Buddhism, 0.75 % followed Islam and 0.30 % followed other religion. The

status of the population distribution based on religion is shown in table no-6. Based on the table

below, percentage of people following Hindu religion was highest in Pyuthan district whereaspercentage of people following Buddhism was highest in Rolpa district.

Table No.6percent of population distribution by religion


1 Hindu in % 96.48 96.70 75.49 94.43 90.70

2 Budha in % 1 2.96 24.25 4.83 8.25


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3 Islam in % 2.32 0.30 0.05 0.36 0.75

4 Other in % 0.2 0.4 0.21 0.38 0.30

100 100 100 100 100(Source: District Profile, 2058)

2.3 Economic characteristics

2.3.1 Economically Active and inactive population

In the study area, the population was categorized into economically active and inactive population.

Based on census 2001, population lying within the age group between 10 years to 59 years are

known as economic active population. The total population of the study area was found to be

774144. Out of this population, 516478 were economically active and 257043 were economically

inactive. Among the four districts, Pyuthan had the highest economically active (147379 or 79.20%)

population and Dang had the highest economically inactive population (129505 or 38.69%). Most of

the district's economy was found to be highly influenced by agriculture and livestock sector. The

districts wise economically active and inactive population distribution is presented in the figure

below:

Figure 4: Economically active &inactive population

The above figure no 4 has described the employment status of the study districts. Out of the total

population, 71.76% are engaged in agriculture, 3.68% in service sector, 6.04% in Business, 13.1% inIndustry and 5.42% are engaged in the others sector.

2.3.2 Population of employment statusThe mid western region was found to be rich in agriculture and forest resources therefore most of

the people were involved in agriculture and forestry sector which helped to generate employment.

Out of the total population, 454389 people were found to be employed in different sectors within

the study districts. Out of them, 71.76 % were involved in agriculture, livestock and forest sector,

3.68% in different services, 6.04% in business, 13.10% in the industries, and 5.45% in others sectors.

In Rolpa district, 84% of people were employed in agriculture, livestock and forest sector which was

highest among the study area. Only 2.48% of the total population were employed in the services


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sectors in Salayan district.

Figure 3: Employment status in study districts

As the figure above suggests, agriculture, livestock and forestry sector contributed 71.76% to

generate green employment at local level. The study cluster was found to be rich in forest resourcesbut proper utilization of the forest resources based enterprises development for creation of green jobshas been lacking.

2.3.3 Farm land Size and land tenure

In the study districts, approximately 40% of land was occupied by the agricultural activities. The

farm size and land tenure pattern are important factors for improving the economic status of the

people. In this region, the farm land size was categorized into 10 groups from the land less to the

population holding more than 5 hectors of land. The farm land was categorized as: below 0.1 ha

(landless), 0.1 to 0.2 ha. of land, 0.2 to 0.5 ha of land, 0.5 to 1 ha of land, 1 to 2 ha of land, 2 to 3 ha

of land, 3 to 4 ha of land, 4 to 5 ha of land and above the 5 ha of land. In case of farm land size and

land holding households, 0.4% of the household were land less, 2.80% had below 0.1 ha of Land,

9.20% had 0.1 to 0.2 ha. of land, 22.92% had 0.2 to 0.5 ha of Land, 25.87% had 0.5 to 1 ha of Land,

22.51% had 1 to 2 ha of Land, 9.86% had 2 to 3 ha of Land, 3.27% had 3 to 4 ha of Land, 2.03% had 4

to 5 ha of Land and 1.14% had above 5 ha of Land. Based on the table 7, 0.5 to 1 ha of land was held

by 25.87% of households which was the highest and 1.14% of household held 5 ha or more

farmland which was the lowest. The farm land size and land tenure status in each district is given in

table no 7.

Table no 7:farm land size and land tenure status


1 Landless 410 118 229 41 798 (0.4%)

2 Below 0.1ha, of Land

2243 2069 584 690 5586(2.80%)


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3 0.1 to 0.2ha. of land

7819 5797 2555 2166 18337(9.20%)

4 0.2 to 0.5 haof Land

8966 13651 11670 11400 45687(22.92%)

5 0.5 to 1 haof Land

14506 10275 13352 13406 51539(25.87%)

6 1 to 2 ha ofLand

22447 6372 7582 8427 44828(22.51%)

7 2 to 3 ha of

Land

15375 1073 1750 1465 19663

(9.86%)

8 3 to 4 ha ofLand

5079 638 484 326 6527(3.27%)

9 4 to 5 ha ofLand

3466 142 306 122 4036(2.03%)

10 Above the 5ha of Land

2184 48 0 41 2273 (1.14%)

Total 82495 40183 38512 38084 199274

(Source: District Profile, 2001

The above table reveals that total land fragmentation in the district has increased significantly

during the last 10 years period. In case of land tenure, over 96% of the total households had their

own land and few households were hired for farming the agricultural land.

2.4 Forest Resources status in study districts

The project coverage area of Dang, Pyuthan, Salayan and Rolpa districts under the Midwestern

Cluster has rich forest resources. The forest resources covered 471,140 (58.32%) hector within thefour study districts. The forest type, forest coverage, existing forest management practices andcommunity forest management status are briefly described below.

2.4.1 Forest Type

The Midwestern cluster spreads from terai areas of Dang district to high mountain regions of Rolpa

district with different climatic zones. Due to the high geographical and climatic zone variationvarious types of the forests are found ranging from Sal dominant forest to Bhaj, Katus, and Dupi

forests. Sal forests are found mainly in the low lands or terai/Churia areas of the Dang and Pyuthan

districts whereas Pine, Chilaune, Katus, Bhaj, Gurans, Dupi forests are found in the middle and highmountain regions of the Pyuthan, Salayan and Rolpa districts.

Table no.8forest type in the study districts

S.N Districts Name Forest Type Remarks

1 Dang Sal, Pine and mixed broad leave

2 Pyuthan Sal, Chilaune katus, Bhaj, Gurans, Dupi etc

3 Rolpa Pine, mixed and Broad leaf forest

4 Salyan Pine, mixed and Broad leaf forest

(Source: DFO report 2010)

The Sal dominant forest is productive as well as of high economic value. The other types of forestsuch as Pine and mixed broad leave which are found in the hilly regions are less productive than Salforest. The hilly region forests consist of medicine and aromatic plants which have high market

value. Thus, these forests have high potential for creating green jobs through development of

medicinal and aromatic resources based enterprises.


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2.4.2 Forest Coverage/Area

The Midwestern cluster (Dang, Pyuthan, Salayan and Rolpa) of the project was found to be rich in

forest resources. Total 487150 hectors or 60% area on an average is covered by the forests within the

study area. Out of the four districts, Dang had the highest forest resources and Rolpa had the lowest.The forest coverage status of the each district is briefly summarized in the following table.

Table no.9forest coverage status in the study districts

SN Particular Dang Pyuthan Rolpa Salyan Total/Average

1 Total forestarea ha.

192,155 72684 94097 128204 487150

2 Forest area

inpercentage

65% 53% 50% 66% 60%

3 Handed

over C ha.

98902.79 44337.23 36525 45988 225753.02

(Source: FECOFUN Cluster report 2011)

2.4.3 Forest Management Practices

Different types of forest management practices such as community forest, leaseholds forest; religious

forest, private forest and government managed forest are practiced in the study areas. Out of theseforests management practices, community forest management practice is one of the successfulcommunity based forest management in Nepal which is recognized all over the world. In the studycluster, total 225753.02 hectors of forest area was handed over to 1810 Community Forest User

Groups (CFUG) as community forests. Out of them, 118 were only managed by women. Similarly,

six forests were managed as religious forests covering 128.68 hectors of forest area and 160.87hector areas of the private forests were managed by 297 private land owners. The existing forestmanagement practices and its coverage area along with number of groups are briefly presented in thetable no 10.

Table no.10existing forest management practices in the study districts


1 CF coverage in ha. 98902.79 44337.23 36525 45988 225753.022 Religious forest 3(64.35 ha) NA 3(64.33) NA 6(128.68)

3 Private forest ha. 264(137.35) 2 (4.7 ) 4(4.98) 27 (10.72 ) 297(160.87 )

4 Women's managedCFUG

59 16 38 5 118

(Source: FECOFUN Cluster report 2011)

2.4.4 Community Forest Status

Community forest has been managed through participatory community based forest management

approach. It is one of the successful forest management approaches in Nepal. In the study districts,

community forest program was found to be running successfully. The brief description of the

community forest status regarding the potential community forest, handed over community forest,

numbers of CFUGs, benefited households and wellbeing ranking information etc are presented in

table 11.

Table no.11community forest status in the study districts


1 Potential CFarea ha

81713 50500 80470 35513 248,196

2 Handed over

CF ha.

98902.79 44337.23 36525 45988 225753.02


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3 Total CFUGs 481 373 485 471 1810

4 CF users'

Households

92899 38500 43559 45452 220410

5 CF Area/HHha.

1.06 1.15 0.83 1.01 1.02

6 Avg.HH/CFUG 193 103 89 96 121.777 poor HH 62% 57% 57% 62% 59.50%(Source: LFP Dang Cluster report 2011)

Based on the above table, a total of 248,196 hector forest area was allocated for potential community

forest in the four study districts. Out of them, 225753.02 hector or on an average 90% of potential

community forest was handed over to 1810 CFUGS as community forest and 220410 householdsbenefited from it. A total of 481, 373, 485, 471 numbers of CFUGs have been managed ascommunity forest in Dang, Pyuthan, Rolpa and Salayan districts respectively. Similarly, on an

average 1.02 hector area per households and average 122 households per CFUG were found. In thewellbeing ranking information, on an average 59.50% of total population belonged to very poor and

poor households in the study districts. In Dang and Salyan district the proportions of very poor andpoor were found to be higher as compared to other two study districts.

2.5 Infrastructure development2.5.1 Road

The headquarters of the four study districts have good access to concrete motor able road which

has made linkage to Kathmandu and other major cities easier. The east- west National high way also

passes through Dang district. Dang has well constructed road networks as compared to other three

study districts. The regular vehicular services have facilitated the transport from the major markets

such as Gorahi, Tulsipur, Lamahi and Bhalubang of the Dang district to the headquarters of other

three districts. In each of the districts, green road networks were constructed which linked different

parts of the district with the headquarter. The most of the road were seasonal roads. Due to lack of

resources regarding the road and vehicular services, agricultural, forest based products and home

productions of the rural areas have not found a good market.

2.5.2 CommunicationThe popular modes of communication in the district were mobile, tele-communication and postal

services. Each district was facilitated by Ilaka and VDC level postal services. The telephone lines were

distributed throughout the head-quarters and surrounding areas. The Fax and internet services

were found to be available mainly in the headquarters of the districts. The mobile communication

was found to be very popular communication tool both in rural and urban areas. Most of the

households had mobile facilities. In addition, UTL phone were established for communication in the

VDCs of hilly region of the study districts. In Rolpa district, 18 VDCs were found to be facilitated by

telephone service.

Table no.12status of communication :

SN Particular Dang Pyuthan Rolpa Salyan

1 Postal Office District office-1 Ilaka post-13

District office-1 Ilaka post-18,

District office-1 Ilaka post-9

District office-1 Ilaka post-9

2 Telephone reachedVDCs

VDCs-36,Muncipality-2

VDCs-22, VDCs-18 VDCs-11

3 Mobile facility Most of theVDCS

Most of theVDCS

Most of theVDCS

Most of theVDCS

4 Email internets 3 1 1 1


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school

3 Secondary

school

83 31 24 31 169

4 Higher sec.school

10 3 2 3 18

5 Campus/colleges 2 1 1 1 56 Technical

institute

5 0 0 0 5

Total 440 304 302 366 1412

(Source: District Profile, 2001)

CHAPTER-THREE3.1 Study Finding( glthf)Federation of Community Forestry Users, Nepal (FECOFUN) selected four districts comprising

Dang, Pyuthan, Salayan and Rolpa for community forestry based enterprise development in the

mid-western cluster. The main reasons for selection of the districts were availability of raw materialfor operating an enterprise, target beneficiaries groups (poor, dalits, women and ethnic groups etc),

physical infrastructure (road linkage) and communication and remoteness, possibilities of availabletechnology, market demand, investment probability, interest of people to start the business etc. Basedon the above selection criteria, numbers of potential CFUGs were selected for enterprisedevelopment.

The consultant team discussed with the FECOFUN district branch, District Forest Office, Plantoffice, Enterprises development supporting NGO, CFUGs, other line agencies, key informants and

target beneficiaries in order to identify potential forest based enterprise, raw materials required,availability of skilled manpower, financial resources and market linkage etc. Then they finalized theforest resources based enterprises. The major findings of the feasibility study in the mid-western

region are described below.

3.1.1: Selected CFUGs for forest based enterprises

In the study area of the mid western cluster, there were 1810 CFUGs managing 225753.02 hector of

community forest and 220410 households were benefited. Out of 1810 CFUGs, 20 CFUGs wereselected for community forestry based enterprises based on the developed criteria in the four districts.The names of CFUGs according to their respective district are presented in the following table.

Table no.16:selected CFUGs for forest based enterprises

S.N. District Selected CFUGs for forest based enterprises

1. Dang

(Source: field survey 2011)3.1.2: Potential forest based enterprises and its prioritization

The western cluster of the project was found to be rich in forest resources including the non-timberforest products. Various consultations and meetings, key informant interview and interactionworkshop with various concerned stakeholders were conducted during the study period to identify

the potential community forestry based enterprises. On the other hand, marketability, availability ofraw materials/resources, possibility of value addition, availability of technology etc were considered

in order to select the potential enterprises. Based on the above criteria, the potential forest based


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enterprises were identified and prioritized through discussions with focus groups, key informants,community forest user group, DFO and regional level CFUG interaction workshop. The potential

forest based enterprises and its prioritization in each of the districts are summarized in the following

table.

Table no.17: potential and prioritization of forest based enterprises

S.N. District Potential Enterprises Prioritization

1. Dang

-forest nurseries

I

II

IIIIVV

VI

2. Pyuthan

Herbal Soap (Chiuri, Ritha)

like Timur, Churi ghee etc

IIIIII

IVV

VIVII

3. Rolpa

Timber saw mill

Timber saw mill

III

IIIIV

(Source: field survey 2011)

According to the table, enterprises are ranked from I to X based on prioritization. The top rankedenterprises in each district were selected as final enterprise. The selected final enterprises are goingto be operated in the first phase of the project period and other low ranking enterprises will be carriedout in the next phase of the project on the basis of their rankings.

3.1.3: Selected forest based enterprises

The identified potential forest based enterprises were prioritized through series of variousdiscussions, community and regional level consultations and interaction workshops following thecriteria of marketability, availability of raw materials/resources, financial availability, accessibility,


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possibility of value addition, availability of technology and commitments of community. Based onprioritization of potential forest based enterprises as per table no 17, the top ranked enterprises in

each district were selected as final enterprise. The selected final enterprises are going to be operated

in the first phase of the project period and other low ranking enterprises will be carried out in the nextphase of the project on the basis of their rankings The selected enterprises of each district is listed inthe table no-18.

Table no.18: selected enterprises in the study area

S.N. District Selected Enterprises Remarks1 Dang Timber Saw mill

(Source: IDS Nepal field survey 2011)

According to the above table, timber saw mill as an enterprise was selected for Dang, Salayan and

Rolpa districts and herbal soap production enterprise was selected for Pyuthan district. The selected

enterprises are described under the following headings.

3.1.3.1: Timber Saw Mill:

The community based timber saw mill enterprise was selected for Dang, Salayan and Ropla districts

through series of discussions with community and concerned stakeholders. It is considered as one ofthe higher potential enterprises because of the availability of rich productive forest resources in the

respective districts. In Dang district, five CFUGs have jointly made plan for establishing the timber

saw mill enterprise. Most of the forests of CFUGs are situated in the Terai and Churia regions having

accessible Sal dominant forests. On the other hand, CFUGs also have rich financial resources as well

as good linkage with local financial institutions for managing funds. Similarly, in Salayan district,

collaborations were made among the five CFUGs for establishing the timber saw mill enterprise. The

CFUGs are located in the mid hill area and are easily accessible from different markets of the district.

The majority of forest were found to be Pines and mixed broad leaf with productive condition. In

Rolpa district, five CFUGs have jointly made plans for establishment of timber saw mill.. Most of the

forest areas are accessible from different markets of the district. The forest operation plans have

indicated that, there are enough raw materials available for the saw mill. But, these informationwere not found in the detailed forest survey and hence re inventory for detail forest resources

survey to identify the actual stock of the forest is necessary.

3.1.3.2: Herbal Soap :Herbal soap is one of the enterprises having higher potential in Pyuthan district due to abundance of

required raw materials such as Chiuri and Ritha species in the community forests of Rajakharka,Dobilke, Raniban, Sukabangkholi and Baddanda area. The soap manufacturing enterprises have beenrunning in the Rajkharka and Dobilke CFUGs but not for commercial purposes. The performance of

herbal soap production in Rajakharka, Maranthan VDC-1 was found to be good where two farmingfamilies have been leading herbal soap production along with involvement of pro-poor people at

local level, but there is a need to convert such production into commercial production. Soap weighing80 grams had been sold locally at Rs 25.. The demand for herbal soap is very high within the district

as well as outside of the district. As the soap production technology and skills which has beenemployed currently were not appropriate for commercial soap production, the technology needs to beimproved by incorporating required technology, skills and knowledge.

3.1.4: Coverage beneficiaries

A total of 4483 households of 20 CFUGs were involved in the potential community forest basedenterprises as beneficiaries in the mid-western cluster of the project. It covers 27000 people within 9

VDCs. Among the beneficiaries, 2433 (9.16%) were Dalits, 13727(50.84%) were Janajatis and


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10800 (40%) were of other castes. The brief information regarding involved households and theircaste composition is presented in the following table.

Table no: 19coverage beneficiaries of enterprises

N. Name of The CFUGs Coverage

HH

Population Coverage

VDCDalit Janajati Others Total

1 Ashwara 1650 806 6817 1962 9585 12 Mahalaxmi 933 534 503 4653 5730 4

3 Triveni 970 909 2269 2370 5548 1(Source: Field survey 2011)

3.1.5 Status of Forest Resources

The selected community forests covered 4162.38 hectors of forest area. Most of the forests areproductive. Most of the CFUGs have mentioned the forest resources stock in their own operation

plans. But it is not sufficient, therefore a detailed survey of the forest resources for sustainability ofenterprises is needed. The brief information regarding the selected enterprise, name of involvedCFUGs and respective forest covered area is presented in the following table.

Table no: 20 Status of forest resources

S.N Involved CFUGs SelectedEnterprise

Area in ha Stock/ha

Increment%

1 Ashwara CFUG

Saw MillEnterprise

2 Maha Laxmi CFUG

3 Phulbari CFUG

4 Mayalu CFUG

5 Triveni CFUG

6 Nava Durga CFUG

7 Samjhana CFUG

8 Mahila Namuna CFUG(Source: field survey 2011), Note: NA Means Not Available

3.1.6: Status of human resources and technologiesProfessional human resources and efficient technologies are major parts required for enterprise

development and its successful running. Most of CFUGs of the districts had few professional and

experienced human resources in the fields related to enterprise management and business sector atcommunity level. Traditional skills and technologies such as bamboo based crafts making, furnitureetc were found at the local level. Most of the local level people were engaged in making furniture ascarpenters and labors. Major ethnic groups such as Tharu, Magar, Dalit and pro-poor people are still

working as labors and only a few numbers of people are involved as skilled manpower at local level.The selected enterprises and information regarding related human resources and technologies in thiscluster are presented in table below.

Table no .21 status of human resources and technologies

S.N. CFUGs Selectedenterprise

Human resources Technologies Remarks

1 Ashwara CFUG Timbersaw mill

Few skill &knowledge peopleexist at community

level, easily

available ofrequire manpower.

No newtechnologies atcommunity level,

traditional

technologyavailable.

CFUG has noexperience onsaw mill

operation


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2 Maha Laxmi CFUG Timbersaw mill

Few skill &knowledge people

exist at communitylevel, easily

available ofrequire manpower.

No newtechnologies at

community level,traditional

technologyavailable.

CFUG has noexperience on

saw milloperation

3 Phulbari CFUG

4 Mayalu CFUG

5 Triveni CFUG

6 Nava Durga CFUG

7 Samjhana CFUG

8 Mahila Namuna

CFUG(Source: field survey 2011)

3.1.7: Status of financial resources

The district branches of FECOFUNs have completed the preliminary meeting and interaction with

concerned stakeholders along with involvement of selected CFUGs. During this period, a common

understanding was developed as well as financial commitments were acquired in terms of shares,donations and other forms of financial support from the potential financial support agencies. The

required fund sources were identified and a tentative financial resources management plan was

prepared among the CFUGs. Basically, the fund sources comprised of share distributions, loans anddonations from the support agencies. The fund investment from share is divided into three criteria:i)CFUGs, ii)Individual/private and iii)pro-poor level. Based on the table, Dang prepared a tentativebudget of 2500000/- for timber mill. Similarly, a tentative budget of 100000/-, 1000000/- and

1100000/- was purposed by Pyuthan, Salyan and Rolpa respectively for establishment of enterpriseand its operation. District wise enterprises, their tentative budgets and information regarding supportagencies is presented in the following table.

Table no .22status of financial resources

S.N. Districts Selectedenterprise Tentativebudget in Rs Support agencies Fund collection by

1. Dang Timber saw

mill

2500000/- CFUGS, DFO,

DDC/ VDC, privatesectors, FECOFUN-

AFPNet etc

Investment Share

distribution, Loanand donation

(Source: IDS Nepal field survey 2011)

3.1.8: Market centers

Market is one of the major parts for successful enterprise development. In the study areas, major

market centers were identified through the interactions with concerned stakeholders, key informants,forest based market agents and entrepreneurs along with field observations. Basically, the

community based enterprises were found to be more focused on the local markets. The potential

identified market centers are listed in the following table.Table no .23Name of potential market centers

S.N. CFUGs Name of potential markets

1. Local level market, district headquarter-Gorahi, Lamahi

bazar, Bhalubang bazar, Chanautta bazar and Butwal etc.

(Source: Field survey 2011)


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3.1.9: Modality of enterprises operatingThe model of community based forest resources enterprises operation was finalized through

interactions with concerned stakeholders, communities along with interactions with experienced

community based timber saw mill owners. The model should be managed by remaining within theprinciples of cooperative. Basically, the enterprise should follow the principles of P4 (public, private,poor and partnership approach). Most of the CFUGs have made plans to form managerial executive

body with staffs who will work on daily basis with some authority for effective and efficientoperation of enterprises. In this modality, the financial share will be distributed to involved CFUGs

and interested private sectors as well as to the pro-poor groups. The share of the pro-poor groups willbe provided from the CFUGs itself or from other support agencies. The modality of the enterprises

operating in the project area is presented in the following table.Table no .24. modality of enterprises operating

S.N. CFUGs Operational modality of enterprises

1. Dang Cooperative modality and share distribution to surrounding CFUGs,formation of separate enterprise operational body with authorized

(Source: Field survey 2011)

3.1.10: Benefits sharing mechanismThe cooperative based enterprises should be operated by encompassing the involvement of key

members of CFUGs. The surrounding CFUGs who are interested could also be the potentialmembers of the enterprise. The investment fund has been managed through share distribution, loan,donation from projects and other support agencies. Basically, the share has been distributed to the

members of CFUGs and interested private sectors. The loan will be refunded as per rules of financial

institutions. The benefits will be distributed to respective shareholders based on the invested amountof the share value. The guidelines related to fund management and benefit sharing will be preparedand operated accordingly.

3.1.11: Major stakeholder and major role for enterprises development

The major stakeholders, their roles and responsibilities regarding forest based enterprisesestablishment, implementation, monitoring and evaluation were identified through series of various

level interaction workshops. The roles and responsibilities depicted in this section are consistent withpresent authorities, mandates of any organizations or institutions as per the law of the country,relevant policies, government approved procedures as well as procedures approved by othercompeting agencies or organizations.. The major stakeholders, their roles and responsibilities is

presented in the table below.

Table no .25.Major stakeholder and its roles and responsibilities

S.N. Name of stakeholders Major roles

1. District forest office

Technical support on sustainable forest management,

Coordination & linkage development for commercial enterprisesdevelopment.

Financial supporting as donation and coordinating role forcollecting fund from other agencies.

Capacity building of enterprise owner as per requirement

Technical support on management plan preparation and approvaland legal supporting.

2. DFCC

Planning ,Coordinating, monitoring of the enterprises


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3. DDC/VDC

Coordination & linkage development for fund collection andenterprise establishment,

Financial support on enterprises development.

4. MEDEP

Technical, financial, marketing, quality control and capacity

development of entrepreneurs as per requirement

5 Small & cottageindustry development

Office Support on enterprises registration process & monitoring

Technical skill and knowledge transfer to entrepreneurs as per

requirement.

6 Private forest based

enterprises Support on financial, market linkage and development Market survey and market competitive productions

7 FNCCI

Support on market linkage and market development, advocacy on therights of entrepreneurs etc

8 Agro-forest based

Cooperative upport on financial and marketing of products

9 FECOFUN (centre &district branch) Support on coordination and linkage development with different

concerned agencies, good governance practices

Financial support on pro-poor based enterprises establish,

awareness development and advocacy, capacity building

10 Forest based projects

Support on skill and knowledge development, enterprises

registration process, financial support etc

(Source:Field survey 2011)

3.1.12: Constraints

The constraints and challenges of forest resources based enterprises were identified through series of

consultations and meetings, interactions, key informants interview and focus groups discussionduring the study period. The major constraints which were identified are briefly listed below.

Lack of knowledge and technologies related to forest resources based enterprise development atcommunity level.

Lack of the awareness among CFUGs regarding forest resources based enterprises establishment.


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The policies are still not clear among the community forest users groups for establishingenterprises e.g. distance delineation for enterprises established within CF etc.

Higher competition with private entrepreneurs in the marketing sector.

Issue of quality regarding community level products.

Inadequate availability of raw materials from the forest at one time from one area.

Poor access of communities in the financial institutions for commercial enterprise development. Less accessibility in the areas with rich forest resources due to difficult geographical topography.

Lack of the knowledge and skill regarding the market and marketing process as well as marketlinkage development.

Unstable market and lack of establishment of proper market networks for flowing the marketinformation to producers.

The good governance practices have not been practiced on a regular basis in CFUGs.

Lack of the knowledge and skill regarding sustainable forest management in the CFUGs.

3.1.13: Opportunities

The opportunities related to forest resources based enterprises were identified through variousconsultations and meetings, interactions, key informant interviews and focus group discussions

during the study period. The major opportunities are briefly listed below.

Forest resources based enterprises establishment at local level such as timber and non-timberbased enterprises.

Proper utilization of the timber and non-timber forest resources at local level.

Proper utilization of unused (byproducts of timber) products of timber for making small furnitureand agro-forest related tools etc.

Development of cooperatives and easy fund mobilization facilities at local level.

Employment opportunities via pro-poor based green jobs at local level.

To create investment opportunities on diversified enterprise establishment at local level for theinterested private and community level investors.

Sustainable forest management through proper use of forest resources.

To establish cooperatives at local level in order to have an easy access to the fund at community level.

CHAPTER 44.1 Conclusion and recommendation

4.1.1 Conclusions

The study of the potential community forestry based enterprise in the mid-western cluster of the

project was carried out by a team of consultants on behalf of IDS Nepal based on the TOR providedby FECOFUN center. The conclusion was reached on the basis of findings of study conducted by

consultants using participatory tools and techniques as well as published and unpublished secondaryinformation. The conclusions of the study are presented below.

The potential forest based enterprises were identified and prioritized in each district by using variousparticipatory tools. In this cluster, over fifteen community forestry based potential enterprises were

identified with required resources. Out of them, timber saw mill was selected by Dang, Salayan andRolpa districts. Similarly, herbal soap production was selected by Pyuthan district. The enterpriseswill operate within cooperative modality by following the poor, public, private and partnership (p4principles) approaches.

In the 20 CFUGs, a total of 4162.38 hectors forest were allocated as resources for the enterprises.


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Most of the forests were found to be productive and also rich in non-timber forest resources. As per

the availability of the forest resources, selected timber saw mill and herbal soap enterprises were

found to be more appropriate in this cluster among others identified enterprises. CFUGs have little

skill, knowledge and experiences regarding the timber saw mill operation, herbal soap production

and business sector. But, traditional skill and knowledge especially on bamboo hand craft making

and furniture are still in existence. However, these professional experiences and skilled humanresources are not enough for commercial enterprise establishment. Therefore, there is a need to

develop capacities regarding enterprise establishment and skilled human resources at community

level for establishment of sustainable enterprises.

Potential challenges and opportunities were identified during the operating period of enterprises.

The major challenges were unclear policies in case of CFUGs for establishing enterprises, higher

competition with private timber entrepreneurs, issues of quality of locally produced goods,

inadequate awareness, unstable marketing, less awareness on value addition of the product, lack of

coordination with district forest office and other relevant stakeholders, difficulty in renewing

constitution and forest operational plans, lack of clear policies to market the products especially

NTFPs. On the other hand, there are lots of the opportunities to establish forest resource based

enterprises and to create green jobs through maximum utilization of the forest resources. Lack ofknowledge, skill and experience on the selected enterprises operations were found. Therefore,

there is a need to simultaneously carry out capacity building, technology transfer and sustainable

forest management.

4.1.2: Recommendation

The study identified over fifteen various types of potential enterprises and prioritized them in each

district. Based on the primary level study findings, review of secondary information and fieldobservations, following recommendations are made regarding the feasibility study of potential forestbased enterprises in the cluster of Midwestern region.

The marketable community forest resources based enterprises were identified and prioritized. The

timber saw mill was selected by Dang, Salayan and Rolpa districts and herbal soap enterprise wasselected by Pyuthan district. Regarding these enterprises, communities lack operation level skills andproper business plan. Therefore, preparation of business plan in a proper way and capacity buildingof local communities for successful running of enterprises is recommended.

The timber saw mill will require more forest resources to operate commercially for a long term.

But most of the CFUGs dont have detailed forest resources inventory which includes informationregarding the NTFP in the forest operation plan. Therefore, an in-depth survey and analysis of forestresources is required for sustainable business of the timber saw mill.

In most of the CFUGs, provisions regarding enterprise establishment are not incorporated in theirForest Operational Plan (FOP), therefore it is recommended to include enterprise establishmentprovision in forest operational plan through review operation plan.

The enterprises of timber saw mill and herbal soap requires skillful human resources for

commercial production but most of the CFUGs lack skilled manpower, therefore capacity building oflocal community is recommended.

Most of the enterprises will be operated using cooperative concept with the involvement of

surrounding CFUGs and private sectors. In this management system, clear operational policies andstrategies are required for the successful operation of enterprises. Therefore preparation of clearoperational strategies separately for each district is recommended.


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In most of the CFUGs, cooperatives were not found to be established during the study periodtherefore establishment of cooperatives at local level as per the requirements of the community isrecommended.

Most of the CFUGs lack awareness regarding market and marketing proceedings, linkagedevelopment and flow of market information. Therefore, establishment of proper market channel andlinkage for regular flow of the market information is recommended.

Most of the CFUGs don't have enough skills and knowledge on managerial sector especially onbusiness management required for long term running of enterprises. Therefore capacity building

regarding managerial sector is recommended.

In the western cluster (Dang, Pyuthan, Salayan and Rolpa districts) 16.95% of Dalits, 36.57% ofJanajatis and 59.50% of very poor and poor households were found to be involved in the community

forest user groups as beneficiaries. Therefore, development of the pro-poor and socially inclusivecommercial enterprises in the target areas is recommended.

The three districts have selected the timber saw mill enterprise where huge quantities of trees will

be required for long term running of enterprise. Therefore analysis of forest stocks of involvedCFUGs and provisions for agreement regarding the supply of raw materials with them isrecommended.

The enterprises will require large quantities of raw materials in order to operate commercial

business sustainably by utilizing the forests. Therefore sustainable forest management with capacitybuilding of the local forest user groups is strongly recommended.

All enterprises are related to forest resources which can have negative implications onenvironment at the local level. Therefore, interventions by utilizing IEE or environment protection

measures are recommended.

THANKs

TO ALL CONCERNs

Documents

Fes Report