Agro
and Forest Based Industries
i) Medicinal and
Aromatic Plants
Due to the varied agro-climatic
environment, Nepal is very rich in medicinal and aromatic
plants with over 700 plant species. The collection
of such plants from wild sources has been practiced
since ancient times. With the establishment of the
Royal Drugs Research Laboratory in 1962, the commercial
utilization of medicinal plants has been encouraged.
More than 300 species have been screened and studied
and extraction of diosgenin, reserpine, alkaloids
of belladonna, glycosides of digitalis, lemon grass
oil, rosin, turpentine and menthol has commenced.
Nepal, a traditional exporter of crude herbs, is now
gradually emerging as an exporter of processed herbs
and aromatic plants. In recent times, commercial cultivation
of medicinal plants such as atropa belladonna and
aromatic plants such as palmarosa, lemon grass, citronella
and mentha arvensis have assumed importance. Recent
studies also indicate good prospects for the cultivation
and processing of chrysanthemum cinerariaefolium (pyrethrum),
claviceps purpurea (Ergot), digitalis lanata, eucalyptus
camaldulensis, glycyrrhiza flabra, mucuna pruriens,
piper longum and valeriana wallichi.
The medicinal and aromatic plants can be exploited
for the production of the following: essential oils
from lemon grass, citronella, palmarosa and mint,
oleoresin from ginger, large cardamoms, timur and
tejpat, turpentine oil and rosin from chirpine, medicines
from valeriana wallichi, calamus acrous and nardostachye
jatamashi. In addition to traditional medicines and
essential oils, herbs and essences also have a potential
as a raw material for the production of cosmetics
and perfumes, herbal teas and natural health products.
ii) Vegetable
Seed Production
A wide variation in
agro-climatic regions from tropical to temperate and
alpine climates provides opportunities to produce
seeds of a wide range of varieties. More importantly,
the pockets of micro-climates separated by high mountains
provide ideal environment where the risk of loosing
parental lines of high value seeds is minimal. Vegetable
seed production is undertaken in 15 different areas
with the following 4 special areas highly successful
in the production of a variety of seeds : Thak Khola
Marpha in the Western Development Region (elevation
2516 m.) - cabbage, carrot, cress, peas, turnip, broad
leaf mustard; Musikot in the Mid-Western Development
Region (elevation 1460 m.) - onion, radish, cauliflower,
peas, turnip, spinach, capsicum, knoll-kohl; Kathmandu
Valley in the Central Development Region (elevation
1350 m.) - cauliflower, cress, spinach, turnip, radish,
broad leaf mustard; Sarlahi in the Central Development
Region (elevation 60 m.) - tomato, egg plant, cucurbits,
capsicum, spinach, peas and okra. Nepal has well qualified
vegetable seed agronomists and vegetable seed breeders.
The vegetable development division in the Department
of Agriculture has many regional farms located in
different agro-climatic regions with well equipped
production, cleaning and storage facilities. The division
is providing technical supervision and quality control
services through well equipped seed testing laboratories.
Very good potential
exists in Nepal for the establishment of vegetable
seed farms catering to both domestic and foreign markets.
Potential markets in India, Bangladesh, Sri Lanka,
Pakistan and Thailand could be developed successfully.
The seed quality standards in these countries are
close to Nepalese seed standards. Export markets in
American and European countries too could be tapped
with the participation of investors from these countries.
iii) Flower
Seeds
Due to varying agro-climatic conditions, Nepal is
in an unique position to produce a wide variety of
flowering seeds which could be sold in international
markets. In the summer season, zinnia, marigold, gladiolus,
salvia, dahlia, canna are grown extensively. In winter
and spring, most of the annual flowers such as bellies,
dianthus, pansy, antirrhinum, helichrysum, aapaver,
verbena, sun flower and so on are grown. The potential
for seed production of the following varieties, in
particular, has been identified as being very high:
anemone sp., aster, chrysanthemum morifolium, elsholtzia
Californica (California poppies), lathyrus odoratus
(sweet pea).
The availability of
varied climatic conditions and easily trainable labour
provide Nepal comparative advantage to produce flower
seeds at low cost. Commercial production and export
of flower seed require maintenance of high technical
standards and good supervision. Technology and expertise
of foreign companies could be effectively employed
to develop this profitable agro-business in Nepal.
iv) Vegetable
Production for Export
A variety of agro-climatic
regions and fertile soils permits the production of
a wide variety of vegetables of good quality in Nepal.
The major items of vegetables grown on a commercial
scale are cabbage, carrot, turnip, radish, cauliflower,
peas, capsicum,. egg plant, tomato, okra, beans and
cucumber. The major centres of vegetable production
are in Kathmandu Valley and in the Dhanusha, Sarlahi,
Bara, Makawanpur and Chitwan district. Almost the
entire production of vegetables is consumed within
the country, though some exports to India and Tibet
are taking place. Recently, the production of snow
peas for export to Japan has got off to satisfactory
start and other items like French beans are to be
produced for export. This has clearly demonstrated
the potential which exists for the production of a
few special varieties of vegetables on a commercial
scale for export. Foreign investment for the scientific
cultivation of vegetables for export would be a profitable
business.
v) Fruit Processing
Nepal is endowed with
good ecological conditions for the cultivation of
a variety of fruits. At present, citrus fruits, apple,
banana, pineapple, mango, pear, litchi, guava, peach,
plum and apricot are available in sufficiently large
quantities. Plans are also underway to increase the
area under cultivation through commercial fruit development
programmes. The total quantity of fruits produced
is estimated around 500,000 mt. Fruit processing industries
consume a fair proportion of total production. Some
small fruit processing industries are engaged in the
production of fruit squash, fruit juice, jams, jellies,
marmalades and fruit salad. Some of these products
are exported from Nepal.
Opportunities exist for the setting up of industries
to process fruits for sale in export markets as fruit
juices and squash, jams and jellies and fruit based
special liquors.
vi) Tea Development
Nepal has commenced
commercial production of tea only in comparatively
recent times. The Nepal Tea Development Corporation,
a government agency, owns seven tea gardens with a
total area of around 880 hectares. In addition, the
private sector owns tea gardens with a total area
of around 1250 hectares. These tea growing areas are
in the Eastern districts of Ilam, Jhapa, Panchthar,
Terhathum and Dhankuta, almost adjacent to the world
renowned tea gardens of Darjeeling in India.
The government has given
high priority to increase tea production in the Eastern
Districts with a view to achieving self-sufficiency
in tea and to export high quality tea to overseas
markets. In order to encourage tea cultivation, an
exemption from the land ceiling has been provided
together with attractive incentives. Good prospects
exist for the production of quality orthodox tea in
Nepal similar to the Darjeeling tea produced in India.
Improved cultural practices, latest technical know-how
and efficient management systems are required to bring
the tea industry in line with other tea producing
countries in the region.
vii) Sericulture
The development of sericulture
has been identified as offering very good prospects
for development in the mid-hills and Terai belt of
Nepal by experts from Japan, Korea, China and India.
Agro-climatic conditions in these areas favour the
cultivation of mulberry and the rearing of cocoons.
The Government has set up a nucleus center at Khopasi
(Kabhrepalanchwok) about 35 km. east of Kathmandu
since 1975. The center initially served as a demonstration
center and later expanded its activities to provide
training, extension and research functions. Since
1991/92, it also functions as a major silkworm egg
breeding station. Nepal has developed six bivoltine
lines and these will be used to produce hybrid silkworm
eggs in the country. The preferred production technology
in Nepal is the temperate bivoltine technology which
is simple and easily adaptable by small farmers.
On a very preliminary
assessment, mulberry cultivation could be extended
over an extent of 6,000 hectares which could yield
around 350 tonnes of raw silk and 85 tonnes of waste
silk. The value of silk fabric from this level of
production could exceed Rs. 1800 mln. Private investment
to encourage mulberry cultivation and cocoon rearing
by small farmers could be developed successfully in
Nepal. Post cocoon activities involving reeling, twisting,
weaving and production of items out of silk fabric
could be developed as medium-scale industries.
viii) Integrated
Dairy Industry
Nepal has a long tradition
in dairy farming. In fact, Nepal has in the past exported
milk products to India and Tibet in the form of ghee
and butter. She could develop the dairy industry to
meet domestic demand as well as renew exports to India
and other markets. Good prospects exist to produce
yak cheese in high altitude for export to overseas
markets. The topographical and climatic conditions
are well suited to dairy development. An integrated
dairy industry incorporating related activities such
as improved livestock breeding, cattle feed production
and processing of milk products would offer promising
prospects for profitable investment. Such a project
could be built up on existing small dairy units spread
around the country through a well organized program
of extension services to improve livestock breeds
and an efficient collection system for processing
in a central unit.
ix) Floriculture
Due to the variations
in climate, topography and vegetation, Nepal has a
diversity of ornamental plants and flowering plants
which could be scientifically cultivated to promote
export oriented business. The flower and orchid industries
are increasing in the country. The commercial development
of floriculture is still in a very early stage of
development. The development of tissue culture initiated
by the National Herbarium and Plant Laboratory at
Godavari is opening up opportunities for mass production
of flowers which could be exported from Nepal. Already
tissue culture method of propagation has been successfully
developed in the production of orchids and other cut
flowers. Some of the orchid genera which have been
successfully developed are coelogyne, cymbidium, dendrobium,
epidedron and vanda. Among the other cut flower species
carnations and chrysanthemums have also been similarly
developed. Prospects for the development of floriculture
business are excellent especially for the following
species of orchids: cymbidiums, dendrobiums, calanthe,
coelogyne. Similarly in other cut flowers carnations,
gerbera, rose, gladiolus primulinus, iris polyanthes,
chrysanthemum, narcissus tazella offer very good prospects.
The varieties of exotic orchids-paphiopedilun, cattelya,
cattelya hybrids, arachris, epidendron, mokara, oncidium
and odontoglossums; exotic cut flowers - tulipa, anthurium,
alstroemeria, freesia and gysophila have good prospects
for commercial production.
Foreign collaboration
for the development of floriculture to provide technical
know-how for cultivation of flowers is required to
meet the standards demanded in international markets
and to provide guidance in market identification and
development. The availability of direct flight connections
to Frankfurt, London, Dubai, New Delhi, Singapore,
Osaka, Hong Kong and Paris offer good prospects for
the development of a profitable export oriented floriculture
business in Nepal.
x) Processing
of Spices
Nepal produces a large
variety of species such as ginger, timur, large cardamom,
turmeric, medicinal spicy herbs, himali cummin, cinnamon,
garlic and a variety of chillies. Most of the spices
cater to domestic demand and some items like chilli,
turmeric, garlic, ginger and cardamom are exported
to India and other markets in a raw form.
Good prospects exist
for the setting up of spice processing industries
using automatic, dehydration, cleaning and packing
technology to export increased value added products.
Foreign collaboration is required to provide technical
know-how for processing and packaging and to secure
marketing outlets.
xi) Mushroom
Cultivation
Many varieties of edible
mushrooms are found in a wild state in the Terai lowlands,
the hills and mountains of Nepal. Two rare varieties
similar to European types known as "Guchchi"
and Cordyceps (Yarsha Gumba) are found in the hills
and mountains under natural conditions. Among the
cultivated varieties, agaricus bisporus, pleorotus
spp. and volvariella are important. The temperature
and humidity conditions necessary for growing agaricus
bisporus (bottom mushroom) are very satisfactory in
the hilly regions during some seasons. The pleorotus
spp. (oyster mushroom) and volvariella (paddystraw
mushroom) grow easily during most seasons. Kathmandu
Valley has temperature, humidity and other biological
factors suitable for the cultivation of these two
varieties of mushrooms throughout the year. The Plant
Pathology Section of the Department of Agriculture's
Research Station at Khumaltar (Kathmandu Valley) is
producing mushroom spawn. This unit has well qualified
staff to undertake research, spawn production and
for extension work.
The potential for mushroom production on a commercial
scale is good especially with a view to marketing
overseas as fresh mushroom, dried mushroom and canned
mushroom.
Xii) Coffee
Processing
Coffee beans are produced
in Western Development Region of the country. Though
the international coffee price has increased sharply,
the coffee farmers in Nepal are getting not more than
50 cents. a kg. Establishment of small scale coffee
processing plant would encourage the farmers to grow
more coffee beans. This industry can substitute the
import and also export high quality chemical free
coffee.
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