(Source: http://www.ansab.org/research_reports/report13041909.pdf) Pp: 15-20 Ban, high royalty, and conservation; a case of yarshagumba (Dolpa) Yarshagumba (Cordyceps sinensis) is a rare and unique product (half-caterpillar-halfmushroom) that grows in meadows between 3200 to 4500 meters above sea level in the Himalayan region of Nepal. Yarshagumba literally means summer plant (Yarsa) and winter insect (Gumbu) in Tibetan language. It is also known as Kiraghans (grass insect), Jeebanbuti or yarchagumba and a Himalayan Herbal Viagra. Yarshaguma is very popular for its uses for multipurpose, and contributes to the mountain people for their livelihood. Majority of the rural poor and marginalized people from High Mountain of Mid and Far Western Development Region depend on these herbs for partial incomes and health care. It generates seasonal employment and hence improving economic condition of the mountainous rural communities. For the last couple of years, the trade of yarshagumba is increasing and it has been regarded as an expensive life saving tonic and aphrodisiac (sex stimulant). According to Nepalese herbalists and herbal healers, yarshagumba is an effective treatment for impotence in men and lack of sex drive in women and has been used extensively as a traditional medicine in China and other countries in East Asia. It is also believed that this unique herb is used for the treatment of headache, toothache and cardiac diseases. Traditionally, this species is helpful for curing liver dysfunctions, kidney disorders, pulmonary diseases, immune imbalance, fatigue, weakness and many more other diseases including cancer. It has a potential for preparing anti-impotence drug which is highly demanded around the world that could bring millions of dollars of revenue into the Himalayan kingdom of Nepal. Yarshagumba is a renewable bio-resource that has high value in terms of the economic and medicinal uses. But, this precious and invaluable unique species is threatened due to irrational policies and poverty leading to habitat destruction and unmanaged harvesting. The Department of Forests, under the Ministry of Forests and Soil Conservation, is the legal authority that oversees the harvesting of naturally occurring medicinal and aromatic plants. Its activities and responsibilities include the collection of royalties on harvested items and regular monitoring of the indigenous flora. Illegal collection/harvesting or export of timber or non-timber forest products is punishable according to existing laws. As a result of indiscriminate collection for swift monetary gains, such valuable species of yarshagumba is facing the threat of extinction. The main legislation to protect medicinal plants including yarshagumba in Nepal is the Forest Act 1993 and forest regulations 1995. The notification published under the Forest Act 1993 regulates the protection and trade activities of certain medicinal plants. All the medicinal plants including yarshagumba fall under the definition as “forest products” in the Forest Act 1993. The District Forest Officer may grant license as prescribed for the collection, utilization, removal or state and distribution, export or transportation of the forest products. It has been over a decade or two that the community people of Nepal recognized the commercial importance of such high value product, yarshagumba. Since then, yarshagumba used to be sold in the high prices, community people of the mountainous districts like Darchula, Dolpa, Jumla, Humla and others started voluminous harvesting of yarshagumba. While the much collection mounted up, the government imposed many series of provisions for ban and restrictions over the decade (see Table 1). Time frame and government policy decisions in relation to yarshagumba Time Decisions Before 1980s:- No specific policy recognition and legal provision of taxes and royalties for collecting and trading yarshagumba in Nepal 1986:- The royalty rate of yarshagumba was fixed at NRs. 180 per kg (through amending Forest Products Sales and Distribution Rules and Regulations 1971) Between 1990-1993:- Penalty NRs. 500 per piece imposed for illegal collection and trade 1993:- The royalty rate of yarshagumba was revised and fixed at NRs. 500 per piece (through provision of Forest Act 1993) 1996:- Complete banned for collection, transportation and trade 2001:- Ban lifted for collection; ban on export without processing only; royalty remain NRs. 500 per piece; after a few months royalty revised and fixed at NRs. 20,000 per kg, and processing defined as steaming 2004:- Requirement of processing (steaming) for export released Before 1980s, there was no more specific policy recognition and legal provision of taxes and royalties for collecting and/or trading yarshagumba in Nepal. Anyone could collect, transport, use and sale. Traditionally, local people residing near by Tibetan boarders collect the product for their local use and bartering goods from Tibetan traders. Realizing potential commercial value of yarshagumba, His Majesty’s Government of Nepal has, first time, introduced a provision of royalty for collection and sale through amendment of Forest Products Sales and Distribution Rules and Regulations 1971 in 1986. The royalty rate of the yarshagumba was fixed at Rs.180 per kg, which was the highest among all the medicinal and aromatic plants. The royalty was fixed intending to collect more revenue as well as executing a control mechanism. However, the objective was made without any prior research, consultations with stakeholders, and reasoning. The implication of this policy provision remained ineffective and no more revenue was collected as expected even though the people continued collecting and trading of yarshagumba as before or even higher quantity. As reflected by local communities and district level stakeholders in Dolpa, the provision promoted illegal collection and trade of yarshagumba. Some negligible efforts were made to avert such policy provision but remained futile. On the other hand, as the increasing rumor for its multipurpose use as medicinal tonic and aphrodisiac, the demand of yarshagumba in international markets (especially in China) was on rise. As stated by local forestry officials, collection of yarshagumba was accelerated and people have been involved for the collection without considering any scientific harvesting measure. Then again, there have been no such effective technical input and monitoring mechanism for the sustainable harvesting of this product from the concerned authorities. This was a question for sustainability as indicated by local forestry staff at Dolpa. Local people believe that a small group of people and some conservationists raised the issue of sustainability of yarshagumba collection to the His Majesty’s late King Birendra during his Surkhet visit in 1989/90 and demanded to enforce high penalties for illegal collectors. According to the royal directives, the ministry of forest and soil conservation fixed NRs. 500 per piece as a penalty for illegal collection and trading. Later, under the provision of Forest Act 1993, royalty of yarshagumba was drastically raised at Rs 500 per piece from NRs.180 per Kg (2,800-3,300 pieces per Kg) in forest regulation 1995 with an ad-hoc decision. There is no any specific reason other than a basis of the royal directives for strict controlling measure against the over exploitation of yarshagumba. It is said that a single piece of yarshagumba cost around NRs 30 to 35 in the local market whereas the royalty tax for the same stand for NRs. 500 per piece. This decision of royalty again did not work as desired by the Government. Much to the chagrin, the illegal trade and collection continued unabated that a large amount of yarshagumba was illegally exported to China or Tibet and India and no significant revenue was realized. As reflected by the MFSC officials, HMG of Nepal realized that yarshagumba become threatened species with over exploitation and must be taken immediate protective measures for sustainable use of the species. The Constitution of the Kingdom of Nepal 1991 formally recognized the need to preserve the environment and to use natural resources wisely. Through interpretation of this constitutional provision, the earlier provision of yarshagumba collection was turned to complete ban by the government decision in 1996. With this decision, there was no any provision for collection, and national and international trades of the product. This decision was again made without consulting other stakeholders except some senior MFSC officials. Contrary to their expectations, this decision further led to boost illegal collection and smuggling. The ban on yarshagumba has been a double loss for both parties: the government was loosing revenue; and local poor people were loosing opportunity for earning cash income. As reflected in the stakeholders’ perspectives, the government’s ineffective tax policy, enforcement mechanism and capacity were responsible factor for such unchecked smuggling of yarshagumba. There was no sufficient basis and research/study to make such decision for banning this product and it was not found effective in real sense of conservation. Some NGOs, INGOs and relevant stakeholders expressed concern towards this decision of the government and suggested to lift its ban. Suggestions by experts who said if yarshagumba is not collected after it sprouts, it decays and goes to waste. They also suggested that a managed collection does not effect its propagation. Yarshagumba is collected during the spring and early summer when the snow melts and fungus sprouts out. Thousands of people are involved for yarshagumba harvesting or collection for short period. Unlike the experts’ view, as reflected by government forestry staff, trampling around in the alpine meadows every season by the ever increasing number of collectors must have significant effect on habitat and annual yields, since the germination period of yarshagumba coincides with the collection period. Moreover, not leaving a significant percentage of yarshagumba undisturbed as “mother plants” for regeneration may likely threaten its sustainability. However, according to local communities, it was noted that reproduction of the product is affected more by weather conditions than by the level of collection. Following its popularity for livelihood for poor people living in remote areas and unfair decision of the government, strong voices were raised from the relevant NGOs and INGOs like ANSAB, networks such as FECOFUN and NNN, collectors and other concerned bodies. While ANSAB was organizing a workshop in 2001 to discuss NTFPs promotion opportunities and constraints in Nepal, a new policy advocacy forum named Himali Jadibuti Sarokar Samuha (HJSS) was evolved at the workshop, which strongly put forward its concern to the government with regard to lifting ban on yarshagumba. Participants of ANSAB annual progress review and planning workshop in Nepaljung each year raised concerned and put pressure in writing to address the yarshagumba issue. After a series of recommendations and such pressures, the government lifted the ban for collection with conditions in 2001. According to the new decision, only the processed product was allowed to export with prior permission from Department of Forests, but the royalty remained NRs. 500 per piece. After few months time, the royalty rate was again changed to NRs. 20,000 (US$ 280) per kg (2.2lbs). However, the processing technology was not known, and the royalty was too high. This decision was again proven to be impractical, and it was neither able to gather significant revenue nor to check collection and trade. The official record has shown that the amount of NRs. 89,000 for 4.5 kg of yarshagumba was collected during fiscal year 2003/04. However, several quintals of yarshagumba were being exported illegally to Tibet/China and some in India. Again, various organizations and networks such as ANSAB, HJSS, FECOFUN and NNN put much pressure to the government to reduce royalty and to withdraw processing requirement for its export. In 2004, the restriction for requirement of processing of the product was released, but the royalty rate of NRs. 20,000 per kg was still imposed. The official record has shown that the amount of NRs. 1,372,000 for 76.05 kg of yarshagumba was collected during fiscal year 2004/05 after the lifting of export restriction. Still, the large amount continued to be exported illegally. After this decision also, there has been a continuous pressure and recommendations made to the government from above organizations and networks to curtail the royalty rate to around NRs. 5000 per kg so as to keep down illegal trade and to promote conservation of yarshagumba and local livelihoods of the mountainous communities. It was also reported from concerned DFOs in the mountainous districts that people are not prepared to go through the legal deal on the business due to too high royalty rate. DFOs said nobody approached them to obtain a license for yarshagumba collection, although the ban on its collection and sales was lifted. Thus, one of the main reasons for insignificant revenue collection from yarshagumba as reflected by the forestry officers was also due to the high rate of royalty on its trade. From the above analysis, a key lesson is that only ban and increasing the royalty rate does not help conserve the valuable resources like yarshagumba. The government has imposed different policy provisions for royalty, tax, ban and restrictions without any prior consultations, research and studies. The communities during over a decade of tradition did not seem to practice the legal provision decided by the government. Imposition of high tax in one hand promoted the illegal trade of yarshagumba and, on the other hand led to low incentive to the collectors and more economic benefit to the outside traders. The provision has neither helped community people to increase economic incentives nor the government to collect revenue. The government should conduct research and incorporate the result along with the perspectives of multiple stakeholders before making the decision that creates direct implication to the poor community people’s livelihood.