Small and Medium Enterprise / Livelihoods and Forestry Programme

Small and Medium Enterprise

LFP working districts extend from the lowland Terai to the high Himalayan region. A range of Non Timber Forest Products (NTFPs) ranging from high altitude, high value species to low value species are found in its working areas. Although a detailed study of all NTFPs of the areas has not been carried out yet, preliminary observations and secondary sources have shown that about 155 NTFPs are found in LFP working areas. Among them, Lokta, Chiraita, Argeli, Jhyau, Jatamasi, Allo, Louth salla, Nagbeli, Bikhma, Resin, Kurilo, Sugandhawal and Nigalo/Bans/Bet are the most prominent and frequently exported NTFPs from LFP areas. (See table of Common and Scientific names of NTFPs) Sankhuwasabha, Bhojpur, Baglung, Myagdi, Rolpa, Salyan and Rukum are districts with the most NTFP potential among LFP working districts.

LFP is supporting the sustainable management and utilization of NTFPs in LFP districts by enhancing the capacities of service providers and community forest users and by developing district level NTFP strategies and/or identifying key interventions. Generally, LFP supports Forest User Groups (FUGs)/local communities through District Forest Offices (DFOs), NTFP networks and in some districts through local Non-Governmental Organisations (NGOs) where they are pioneers and have reach and expertise. LFP has also been working with some other programmes and organisations to promote NTFPs and forest based enterprises.

Many Community Forests (CFs) in LFP areas are involved in cultivating and/or protecting/promoting naturally occurring NTFPs species in their CF area as an income generating activity. It is estimated that about 1500 FUGs (about 40% of the total) are involved in NTFPs cultivation/promotion in their forests in LFP districts and the number of FUGs becoming involved in NTFP management is increasing. The main species cultivated by FUGs in CFs are Bans/nigalo, Amriso, Lapsi, Chiraito, Kurilo, and Tejpatta. Naturally regenerated Allo, lokta, Argeli, Nigalo, is found abundantly in some CF areas. Users are both fulfilling their subsistence needs from NTFPs and also generating income by selling them.

Most LFP districts have identified domestication of NTFPs and commercialisation as a major activity and are making it P&E centred through integrating it with the CF land allocation and public land management programme. As poorer people receive allocated CF and public land, LFP partners help FUGs and Public Land Management Groups (PLMG) to access resources and services from support agencies and from their own group for NTFP cultivation.

LFP is also supporting local communities and FUGs to establish NTFP-based small, medium and micro enterprises (SMME) in different districts through its partners. Extracting essential oils, Allo cloth weaving, leaf plate making, handmade paper manufacturing, bamboo craft and furniture, resin tapping and candy manufacturing are examples. Some small-scale forest/NTFP based enterprises established by local communities/FUGs with LFP support are as follows:

Bans/Nigalo furniture and crafts
Lokta processing and handmade paper production
Allo processing and weaving
Medicinal and aromatic plants (MAPs) processing – citronella, lemon grass etc
Furniture making
Leaf plate making
Agave processing and rope making
Agriculture tools and musical instruments

LFP has developed an NTFPs and forest based enterprises support strategy to promote making the best use of the resources in this sector. The strategy provides strategic direction and framework for future LFP interventions, including:

Support to develop a district level strategy/plan on NTFPs
Participatory resource assessment of NTFPs and piloting/action research
Support FUGs to prepare operational plans (OPs) with special consideration of NTFPs and forest based enterprises and their implementation.
Develop technical ‘know-how’ among key partners/stakeholders in the districts
Improve capacity of local people/FUGs for sustainable harvesting and processing
Increase access to marketing and market Information
Local institutional development, coordination at different levels and working with other organisations.
Continue to engage in policy support and debate and share experiences at the central level

LFP will use and mobilise in-house and local expertise and skills to support in delivering these priorities areas. Existing mechanisms and structures will be strengthened and mobilised for this rather than creating new ones. Since LFP does not have sufficient in-house expertise and skills required to deliver the key priority areas identified, LFP will seek to work with and draw upon inputs of external services from a national level organisation having appropriate expertise and experience in the NTFP. This could provide opportunities for need-based or follow-up support as and when required. Concurrently, LFP will develop institutional/functional links with the national level organisations working on NTFPs.