Construction of a herb collection and processing centre began at Kakrebihar in ward 9 of Birendranagar Municipality of Surkhet in 2011. The Surkhet Chamber of Commerce and Industry initiated the project under a public-private partnership, investing nearly Rs40 million in infrastructure including buildings. Despite the significant investment, the facility remains unused and is falling into disrepair.

"This large structure is turning into ruins even before it comes into operation. While herbs worth millions go to waste, government investments are being squandered,” said Balmukunda Manandhar, a resident of Birendranagar.

The centre was built on approximately seven kattha (2370 sq metres) of land within the Kakrebihar Community Forest. According to Laxman Kandel, president of the Surkhet Chamber of Commerce and Industry, the facility was designed to store up to 1,500 metric tons of herbs. However, with internal infrastructure incomplete and a lack of funds, operations have stalled. "Eighty percent of the work is done. An additional Rs100-150 million is required to complete the construction and bring the centre into operation," said Kandel.

The Karnali Province Forest Directorate reports that Karnali, the country’s largest province in area, is home to around 145 species of medicinal herbs, with 75 of them exported to India and China. Due to the absence of local processing facilities, herbs from Karnali are transported through Nepalgunj to Bahraich, New Delhi, Kolkata and to the world market through the Chinese markets.

According to the provincial Ministry of Industry, Tourism, Forests and Environment, a total of 11,700 metric tons of herbs were exported in the last fiscal year of 2023-24, generating Rs30 million in revenue.

Herb traders like Danda Bahadur Budha from Dolpa, a mountain district of Karnali, lament that farmers are forced to sell their harvests at rock-bottom prices due to the lack of storage and processing centres. "Indian traders buy herbs from us at minimal prices and later sell them back to us at double the cost after processing," said Budha.

For instance, farmers sell Chiraito at Rs500 per kg, while traders resell it for Rs950 in Nepalgunj. Similarly, Katuki bought at Rs1,400 per kg is resold at Rs1,650, and Jatamansi bought at Rs600 is sold for Rs900. Transport, processing, and storage costs contribute to these price differences, highlighting the disadvantages faced by local collectors in Dolpa, Mugu, Humla, Jumla and Kalikot districts.

Another herb collection centre at Khatijyula in ward 1 of Tripurasundari Municipality in Dolpa, built in 1998 with Rs1.9 million financial support from the World Wildlife Fund, New Era and the then Tripurakot VDC, also remains defunct. "Processing is costly, and with no financial relief for collectors, the center has been non-operational for years," said Mun Bahadur Rawat, chief of the Division Forest Office in Dolpa.

The facility once stored and processed herbs like Jatamansi and Satuwa, but it is defunct with machinery rusting and the building in ruins. The lack of electricity further hindered operations, forcing locals to rely on a micro-hydropower plant for a few years. "Now, if herbs aren’t sold within 15-20 days, they rot," said local Kamal Budha. "If we could process them locally, we’d get much better prices."

Dolpa alone produces 60,000 tons of Jatamansi annually. "Jatamansi oil fetches Rs25,000 per litre," said Rawat, underscoring the missed economic opportunities due to inadequate infrastructure.

Similarly, a herb collection centre established in 2021 at Budhabada in ward 8 of Tila Rural Municipality in Jumla, remains unused. Built with Rs1.02 million in funding from the Climate Adaptation Fund, the Ministry of Forests and Environment, and the World Food Programme, it was meant to serve as a storage and processing hub. "Without a functioning centre, traders are forced to store herbs in marketplaces or even at Jumla airport grounds, leading to spoilage," complained Pushkar Neupane.

Mugu’s Mugam Karmarong Rural Municipality chairperson Chhiring Kyapne Lama underscores the need for at least one herb collection centre per district. "Such centres would prevent spoilage and ensure fair prices for collectors. Right now, without proper storage, traders dictate prices, and we have no bargaining power,” he said.

Another herb processing centre in ward 1 of Chankheli Rural Municipality in Humla district, has a similar situation. It has been inoperative for 11 years. Established in 2013 with Rs2.2 million, the facility closed after three out of its six processing machines broke down. "We sought funding from local and provincial governments, but without support, the centre has fallen into disrepair," said the centre’s chairman Sarjan Bahadur Budha.

Herb collectors complain that they have to risk their lives collecting herbs but such herbs do not find competitive prices. "We scale steep cliffs, risking our lives, but traders exploit us. If we had proper storage, we could negotiate better prices instead of selling at throwaway rates," said Beda Prasad Neupane of Jumla.

The Karnali Province Forest Directorate admits that around 20 percent of locally collected herbs are wasted annually due to lack of storage and processing. "Many centres were built without feasibility studies, leading to mismanagement," said Surya Prasad Sharma, spokesperson at the directorate.

Unless urgent action is taken, Karnali’s valuable herbs will continue to be sold cheaply while neighboring countries reap the benefits of their processing and trade. Suresh Adhikari, Karnali Province’s Minister for Industry, Tourism, Forests and Environment, acknowledges the issue. "Despite being a herbal hub, we lack the budget to support marketing, processing, and storage infrastructure," he admits. "To strengthen our economy and drive regional prosperity, we must commercialise Karnali’s herbal industry," said Adhikari, adding that the ministry aims to pass laws promoting herbs trade, establish new processing centres and offer subsidies to herb farmers.

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The herbs collection and processing centre at Kakrebihar in Birendranagar is still a work in progress since 2011 due to lack of funds. The picture was taken recently. There are several such collection centres that remain inoperational in the province.

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