Sudurpaschim’s Herbal Wealth Remains Untapped as Processing and Pharmaceutical Industries Stay Absent
Sudurpaschim: “Sudurpaschim is a veritable treasure trove of medicinal herbs. The province has the potential to harvest approximately 6,271 metric tons of herbs—a figure that exceeds Nepal’s total herb exports of 5,526 metric tons from the last fiscal year,” states a 2081 BS report by the Government of Nepal’s Trade and Export Promotion Center. “Based on the average export value of herbs, Sudurpaschim Province holds the potential to export herbs worth Rs 1.24 billion annually.”
These figures regarding the province’s potential are nothing new to its policymakers and political leadership. Yet, nearly nine years into the implementation of federalism, neither an Ayurvedic medicine manufacturing plant nor a herb processing center has been established in the region. There has not even been a comprehensive feasibility study conducted for herb processing and pharmaceutical production.
Experts in the field of Ayurveda have long criticized most local leaders and elected representatives, alleging that while they frequently speak of this potential in speeches, documents and policy debates, they show no interest in actual implementation when the opportunity arises. They express frustration that, despite their repeated suggestions on how to harness this potential, their recommendations have gone unheeded.
Government data indicates the potential for collecting significant quantities of medicinal herbs across Sudurpaschim Province: approximately 1,755,315 kg from Bajhang district; 865,500 kg from Doti; 774,054 kg from Darchula; 687,300 kg from Achham; 606,198 kg from Bajura; 584,000 kg each from Dadeldhura and Kailali; 347,770 kg from Baitadi; and 70,000 kg from Kanchanpur. However, these figures are not regularly updated.
“We are all aware that the province’s forests abound with medicinal herbs, there is market demand, and there is significant local consumption of medicines. Yet, establishing industries to transform these herbs into finished medicinal products has not become a priority for the province,” local entrepreneurs have long maintained.
Herbs ranging from Yarsagumba, Panchaule, Kutki, Chiraito, Sugandhawal and Jatamasi—collected in the province’s mountainous districts—to Kurilo, Sarpagandha, Chamomile, Mentha, Tejpat and Lemongrass from the Terai region are exported out of the area. Once processed into medicines, however, they are imported back into the province at high prices.
Dr. Omprakash Kalauni, Acting Chief of the Sudurpaschim Provincial Ayurveda Hospital in Dhangadhi, notes that the province remains unable to overcome the situation of having to purchase even small quantities of necessary Ayurvedic medicines from elsewhere. He emphasizes that, similar to other provinces, pharmaceutical manufacturing industries must be established in Sudurpaschim to resolve this issue.
Given the estimated annual consumption of Ayurvedic medicines worth tens of millions of rupees across the nine districts of Sudurpaschim—spanning provincial Ayurvedic hospitals, the Mahakali Ayurvedic Dispensary, district Ayurvedic health centers, local Nagarik Arogya Kendras (Citizen Wellness Centers), private clinics and pharmacies—establishing a manufacturing industry within the province itself is essential to meet this internal demand.
“We are forced to import medicines from outside that could actually be produced within our own province, resulting in an outflow of over Rs 250 million. A cycle has persisted for years where we export raw medicinal herbs only to import back the powders, tablets and other medicines processed from those very herbs. This situation can be reversed with a modest investment; what is required is the political will to make it happen,” stated Acting Chief Dr. Kalauni.
Raw Materials, Market and Production Potential
According to a report by the Trade and Export Promotion Center, medicinal herbs worth Rs 1.44 billion were imported in 2018. While Nepal has the opportunity to tap into this market, there is also significant potential to diversify products and markets for Nepali herbs through value addition.
The Center concludes that by harvesting herbs available in Sudurpaschim through sustainable management practices, the region could be developed into a major hub for income generation in Nepal.
Currently, the province’s network—comprising one provincial Ayurvedic hospital, seven district Ayurvedic health centers, one Ayurvedic dispensary (Mahakali), 33 municipal-level Ayurvedic dispensaries, and 55 Nagarik Arogya Sewa Kendras—has to source Ayurvedic medicines worth approximately Rs 70 million from outside the region, according to the provincial hospital.
The potential for medicinal herbs has translated into successful production practices. The Provincial Ayurveda Hospital reported that in the fiscal year 2082/83, it procured 31 types of herbal raw materials worth approximately Rs 3.2 million and manufactured medicines from them with a market value exceeding Rs 10 million.
According to Acting Chief Dr. Kalauni, the hospital purchased medicines worth approximately Rs 11.6 million—including 35 types of essential medicines for free distribution—and sold medicines worth around Rs 10 million through its paid pharmacy.
“A single provincial hospital consumes medicines worth Rs 22.5 million annually. There is similar demand across other institutions as well. We have demonstrated that with an initial modest investment from the state, medicines can be produced to meet domestic consumption needs,” he said.
Experts state that significant value addition can be achieved by processing the locally available medicinal herbs into medicines and herbal products, rather than selling them merely as raw materials. Processing Chiraito can increase its value by 3.5 to 4.5 times; Timur by four to six times; Tejpat (bay leaf) and cinnamon by five to eight times; and Amla (Indian gooseberry) by more than ten times. Similarly, value increases of six to nine times for Pashanbhed, five to eight times for Rittha (soapnut), and ten to twenty times for chamomile and mentha are possible.
There is potential to increase the value of Amla (Indian gooseberry) and Gurjo (Tinospora cordifolia) by eight to twelve times.
Fresh Amla, sold by farmers at Rs 40–65 per kilogram, can be processed into products like Chyawanprash, Triphala powder and capsules. Similarly, according to Ayurvedic medicine entrepreneur Thakkar Bogati, the extract derived from raw Gurjo—which sells for Rs 25–40 per kilogram—can fetch up to Rs 4,000 per kilogram.
Plans Exist, but Investment is Now Needed
While Sudurpaschim holds great potential for medicinal herbs, a unified value chain integrating production, collection, processing, medicine manufacturing, quality certification and market management has yet to be established.
“Medicinal herbs are found all along the roadsides in Sudurpaschim, yet we—the citizens—dismiss them as mere fodder. The government, too, has not paid sufficient attention to raising awareness about their importance,” said entrepreneur Bogati. “We used to blame the central government, but now we have provincial and local governments. We need to work together; simply chanting about ‘potential’ is not enough.”
Entrepreneurs emphasize the need for the government to formulate policies that facilitate the cultivation, export and import of these herbs. Entrepreneur Jayaraj Bhatta suggests that since the private sector has been unable to operate herb-processing industries due to legal hurdles and investment constraints, provincial and local authorities must step in to create a conducive environment.
“Public interest in Ayurvedic medicines has grown since the COVID-19 pandemic, with demand rising by approximately 25 percent compared to the past; however, we still rely on imports to meet this demand,” he said. “The government needs to take action to end the current situation where raw materials leave our province cheaply only to return as expensive, packaged medicines. The private sector is ready to collaborate on this.”
Dr. Bijay Puri, Chief of the District Ayurveda Health Center in Bajhang, also notes that medicinal herbs remain underutilized due to the lack of local processing facilities and medicine manufacturing plants.
“Speaking of Bajhang, the region is home to valuable herbs ranging from the Saipal Himal area down to Chainpur. We have high-value species like Yarsagumba (caterpillar fungus) and Chiraito (Swertia), as well as Timur (Sichuan pepper), Pashanbhed and Gurjo (Tinospora), alongside easily accessible plants like Dhaturo (Datura), Nirguni (Vitex), Titepati (Mugwort) and Chutro (Berberis),” he said. “However, there are no policy provisions or guidelines to facilitate their utilization. Consequently, raw materials are being exported at low prices to India and other regions via Nepalgunj. We now need to devise strategies to utilize these resources within the province itself.”
Nevertheless, Sudurpaschim Province’s second five-year plan incorporates policies for establishing processing industries for herbs, fruits and vegetables; creating industry clusters based on local resources; setting up quality testing laboratories; branding and packaging local products; and promoting exports.
Dr. Surya Upadhyay, Chief of the Mahakali Ayurveda Dispensary, emphasizes the need to focus on implementing these policies, plans and the discussions held so far. He emphasized the need to capitalize on the fact that manufacturing companies value the highly medicinal herbs found in areas such as Badimalika, Khaptad, Apinappa, Saipal and Ramaroshan.
“Sudurpaschim is a prime hub for medicinal herbs. Therefore, establishing processing centers and manufacturing industries within the province is essential. We have been urging the government to set up a facility here similar to the Singhadurbar Vaidyakhana, which operates under the central government,” said Chief Dr. Upadhyay. “Everyone is receptive to the idea; we must not delay in getting started.”
Karna Bahadur Balayar, Chairperson of the Provincial Ayurveda Hospital Management Committee, stated that the province needs to establish its own production center and affirmed that the provincial hospital is ready for this initiative.
“If we fail to set up processing and production centers now, Sudurpaschim’s valuable herbs will continue to be exported; external industries will manufacture medicines from them, and the province’s citizens will end up paying high prices for medicines made from herbs sourced from their own forests,” he said. “The time has come to invest in medicine production. The potential and foundation exist, and the provincial hospital—along with local Ayurveda health institutions—possesses the necessary manpower.”
According to experts, establishing a standard, mid-sized Ayurveda medicine production center could cost between NPR 400 million and NPR 600 million. However, this entire amount would not be required upfront; the funds would be allocated for infrastructure, specialized machinery, laboratories for phytochemistry and heavy metal testing, certification processes and the procurement of local herbs.
“Work on essential infrastructure can begin with an initial investment of just four to five crore rupees, with further investment added incrementally. We have already prepared a proposal that includes an investment roadmap. The provincial government should not hesitate to invest. There is no need to worry about the return on investment; we guarantee that,” said Dr. Kalauni, Acting Chief of the Provincial Hospital.
Dirgha Narayan Koirala, Secretary of the Ministry of Industry, Tourism, Forest, and Environment, stated that the province holds immense potential regarding medicinal herbs, and the government is planning to establish at least a primary-level processing plant to derive appropriate benefits from them.
He said, “The government envisions establishing a multi-purpose medicinal herb processing center. We are currently discussing the allocation of funds in this year’s budget for a feasibility study and related aspects. Proposals have been made to establish the processing center either directly by the government or through a public-private partnership. The matter will certainly be addressed in the budget.”
Dr. Niraj Aryal, Acting Secretary of the Ministry of Social Development, also expressed that they are serious about medicinal herbs and their application in Ayurvedic medicine. He noted that since discussions and consultations regarding the establishment of processing centers and medicine production in the province have taken place at various stages, tangible results will soon be visible.
“There is immense potential, but if concrete work is not done...”
