28 February 2013: The UN Environment Programme (UNEP), in collaboration with the Government of Nepal and financed by German Agency for International Cooperation (GIZ), has released a report titled “BioTrade: Harnessing the potential for transitioning to a green economy – The Case of Medicinal and Aromatic Plants in Nepal.” The report suggests that the growing global demand for medicinal and aromatic plants could help drive Nepal’s green economy, as well as improve livelihoods in its poorest communities.

The 31-page report analyzes Nepal’s BioTrade sector, focusing on trade in medicinal and aromatic plants (MAPs), which are often grown in the country’s poorest regions. According to the report, there are approximately 700 species of medicinal plants in Nepal, approximately 250 of which are endemic, resulting in significant BioTrade opportunities. The report highlights opportunities: in commodity trade in essential oils and plants extracts, natural ingredients for cosmetics and pharmaceutical products, native fruits for juice, wine and jam; trade in goods, including bamboo products, gums and resins, spices and flavors, dyes and tans, natural pesticides, wild mushrooms and health foods; and services such as ecotourism.

The publication also addresses the key challenges in developing sustainable trade in MAPs, among which are the lack of value-added activity and quality control mechanisms. Currently MAPs are sold through long marketing channels with high transaction costs, and most of the value-added processes in the production chain occur outside of Nepal. In addition, inadequate infrastructure, such as limited access to electricity, transportation facilities, water and technology, results in a lack of productive capacity, hampering trade development.

The report recommends assisting policymakers, development agencies and entrepreneurs in developing the country’s BioTrade in MAPs in a responsible and sustainable manner. It also underscores the need for: an inventory system on the stock of available resources and how much can be sustainably harvested; technologies for transforming the country’s raw materials into value-added products; and laboratories to test plants and products in order to meet sanitary and phytosanitary measures (SPS) requirements. [UNEP Press Release] [Publication: BioTrade: Harnessing the potential for transitioning to a green economy – The Case of Medicinal and Aromatic Plants in Nepal]