SUDURPASCHIM, Sept. 13: Sudurpaschim is considered one of Nepal's richest regions for medicinal herbs, with the potential to collect around 6,271 metric tonnes annually.
Nepal exported 5,526 tonnes of herbs nationwide last fiscal year, according to a 2021 report by the Trade and Export Promotion Centre. Based on the average export value, the province could potentially earn around Rs 1.24 billion annually from herb exports.
Yet nearly nine years into federalism, Sudurpaschim still has neither an Ayurvedic medicine manufacturing industry nor a herb processing centre. No comprehensive feasibility study has even been conducted on processing herbs and producing medicines in the province.
Experts say political leaders frequently highlight the sector's potential in speeches and policy documents but show little interest in implementation. Suggestions from Ayurvedic professionals on developing the sector have largely gone unheeded.
Government estimates show the potential to collect around 1.76 million kg of herbs in Bajhang, 865,500 kg in Doti, 774,054 kg in Darchula, 687,300 kg in Achham, 606,198 kg in Bajura, 584,000 kg each in Dadeldhura and Kailali, 347,770 kg in Baitadi and 70,000 kg in Kanchanpur. These figures, however, are not regularly updated.
Herbs including yarsagumba, panchaule, kutki, chiraito, sugandhawal and jatamasi from the mountains, and asparagus, sarpagandha, chamomile, mentha, tejpat and lemongrass from the plains, are shipped out of the province. After processing, medicines made from the same herbs are brought back at much higher prices.
Dr Om Prakash Kalauni, acting chief of the Sudurpaschim Provincial Ayurvedic Hospital in Dhangadhi, said even medicines that could be produced locally are being purchased from outside the province. He estimated that more than Rs 250 million leaves the province annually for such purchases.
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The province has one provincial Ayurvedic hospital, seven district Ayurvedic health centres, one Ayurvedic dispensary, 33 municipal Ayurvedic dispensaries and 55 citizen health centres. These facilities import an estimated Rs 70 million worth of Ayurvedic medicines each year.
The provincial hospital itself has shown that local production is viable. In fiscal year 2082/83, it purchased 31 types of herbal raw materials worth about Rs 3.2 million and produced medicines with a market value exceeding Rs 10 million. It also purchased around Rs 116 million worth of medicines for free distribution and sold medicines worth about Rs 10 million through its paid pharmacy.
Experts say processing herbs locally could generate substantial value. Chiraito can increase in value by 3.5 to 4.5 times through processing, timur by four to six times, tejpat and cinnamon by five to eight times, and amla by more than ten times. Chamomile and mentha can generate 10 to 20 times their raw value, while guduchi can generate eight to 12 times.
Ayurvedic medicine entrepreneur Thakkar Bogati said fresh amla sold by farmers for Rs 40 to Rs 65 per kg can be turned into chyawanprash, triphala powder and capsules. Guduchi, sold raw for Rs 25 to Rs 40 per kg, can produce guduchi extract worth up to Rs 4,000 per kg.
Despite this potential, the province has failed to build a complete value chain linking cultivation, collection, processing, medicine production, quality certification and marketing.
Bogati said the government must create policies that make herb cultivation, processing and trade easier. “We have herbs everywhere, but we treat them as mere grass,” he said, calling for coordinated action by provincial and local governments.
Businessman Jayaraj Bhatta said private investors face legal hurdles and limited capital, making government support necessary to establish processing industries.
Demand for Ayurvedic medicines has also increased by around 25 percent since the Covid 19 pandemic, he said, yet the province continues to import medicines while exporting cheap raw herbs.
The challenge is no longer identifying the potential. Sudurpaschim needs investment, processing facilities and policies that can turn its abundant herbs into medicines and higher value products within the province.
Dr Vijay Puri, chief of the District Ayurvedic Health Centre in Bajhang, said the lack of processing facilities and medicine manufacturing industries near herb producing areas has prevented the province from fully using its herbal resources.
“Bajhang has valuable herbs from Saipal Himal to Chainpur, including high value yarsagumba and chiraito, as well as timur, pashanbheda, guduchi, dhaturo, nirgundi, titepati and chutro,” he said. “But there are no clear policies or guidelines for their utilisation. As a result, raw herbs are being sent cheaply through Nepalgunj to India and other markets. We need a plan to process and use them within the province.”
Sudurpaschim’s second five year plan has already identified herb, fruit and vegetable processing industries, local resource based industrial clusters, quality testing laboratories, branding and packaging of local products, and export promotion as priorities.
Dr Surya Upadhyay, chief of the Mahakali Ayurvedic Dispensary, said the focus should now shift from policies and discussions to implementation. He said companies are already interested in medicinal herbs found in areas such as Badimalika, Khaptad, Api Nampa, Saipal and Ramaroshan.
“Sudurpaschim is a major source of medicinal herbs. The province needs its own processing centre and medicine industry. We have been asking the government to establish a structure similar to the Singha Durbar Vaidyakhana,” he said.
Provincial Ayurvedic Hospital Management Committee Chair Karna Bahadur Balayar said the province should establish its own production centre and that the provincial hospital has the required human resources.
Experts estimate that a medium sized standard Ayurvedic medicine plant could cost Rs 400 million to Rs 600 million, covering infrastructure, machinery, phytochemistry and heavy metal testing laboratories, certification and raw herb purchases.
Dr Om Prakash Kalauni, acting chief of the provincial hospital, said work could begin with Rs 40 million to Rs 50 million for essential infrastructure and expand gradually. He said a detailed investment proposal has already been prepared.
Dhirga Narayan Koirala, secretary at the Ministry of Industry, Tourism, Forest and Environment, said the government plans to establish at least one processing industry, preferably a multipurpose herbal processing centre. The province is considering funding a feasibility study this fiscal year and could build the centre itself or through a public private partnership.
Dr Neeraj Aryal, acting secretary at the Ministry of Social Development, said discussions are under way to upgrade the Mahakali Ayurvedic Dispensary, establish a herb processing centre nearby, and produce and brand medicines at the provincial hospital in Dhangadhi. He said funds could be allocated in this fiscal year’s budget if political and administrative support continues.
