Introduction

1.1 Overview of Non-Timber Forest Products in Bhutan

Nestled between the Himalayan Range in the north and the Indian plains in the south, the Kingdom of Bhutan harbors tremendous biodiversity in ecosystems ranging from glacial to subtropical. Forest, which covers 72% of the country's area, is home to many endangered and endemic species. Moreover, the forest is a vital resource for rural communities, providing food, medicines and other household necessities. Beyond subsistence, products extracted from forests are also an important source of cash income for many rural households.

Due to its complex geography and topography, only 7.8% of Bhutan's land area is arable. As a result, non-agricultural activities are a significant source of livelihood for rural people, who form 75% of the population. Of the non-agricultural activities collection of non-timber forest products (NTFPs) are amongst the most important livelihood activities in rural communities of Bhutan. This is evident from the array of NTFP based items (cooking utensils, containers, food products, medicine) that exist in Bhutanese farmhouses. Quantities and number of sellers of NTFP based food and non-food products in the vegetable markets in urban areas show that NTFPs are an important source of income for farmers. However, due to the lack of adequate quantitative data on the benefits of NTFPs, it is difficult to determine statistically how important NTFPs are for the lives of rural farmers. Among the few quantitative studies, a study conducted in western Bhutan found that NTFPs account for 21% of the household diet and 19% of household income (Namgyel P, 1996).

Bhutan's forests contain a wealth of NTFPs. In a single gewog¹ in southern Bhutan, 120 species were identified, including 22 edible mushrooms, 4 tea plants, 13 medicinal plants, 15 vegetables, as well as edible oil plants, dyes, cane, bamboo, fruits, incense, yeast and gum (Namgyel P, 2005). Of the large variety of products used by local people, only a few are traded on a commercial basis. Examples of NTFPs traded are listed in Table 1 [ PDF 13.5KB | 1 page ].

The export of these products demonstrates the great potential of NTFPs to generate income for rural communities in Bhutan. For example, exports of Cordyceps generate an annual income of US$4 million and exports of matsutake mushrooms generate over US$45,000 in income in one community in western Bhutan.

Though there are many forest policies and regulations, very few address specific NTFP issues. Currently, local trade in NTFPs is carried out on an informal basis, with only limited monitoring of the resource base and volumes harvested. The Forest Department has carried out a few studies on specific NTFPs and developed management guidelines to promote sustainable harvesting. However, the lack of quantitative data on potential areas and volumes of NTFP growth is a major obstacle to promoting sustainable trade and export in NTFPs. It is anticipated that the recent drafting of the National Strategy for NWFP Development in Bhutan will pave the way for the further promotion of sustainable and informed NTFP trade in Bhutan.

In light of the current situation of high potential for income generation and need for sustainable harvesting of NTFPs, organic certification is one tool which can contribute to the conservation and management of forest resources and at the same time offer incentives to rural households through premium prices and increased market access. With similar goals, Bio Bhutan, a private enterprise based in Bhutan, initiated organic certification of two NTFPs in 2005 and is currently successfully trading organic certified lemongrass oil (LGO), one of the main sources of non-farm income for farmers in eastern Bhutan.

1.2 Study Objectives and Content

This case study is a contribution from Bhutan to a regional study on the impact of organic production concepts on the Millennium Development Goals (MDGs) in five Asian countries: the People's Republic of China, Sri Lanka, Thailand, Philippines, and Bhutan, initiated by the Asian Development Bank Institute (ADBI) in Tokyo, Japan in 2005.

In collaboration with ADBI, the authors aim to document the innovative undertaking of introducing certification schemes to improve the resource management and processing of lemongrass, encouraging income generation of poor households in Dozam, Drametse gewog in eastern Bhutan. The results directly relate to MDG 1 (eradicate extreme poverty and hunger) and MDG 7 (ensure environmental sustainability). The high employment rate of women as grass collectors is related to MDG 3 (contribute to the promotion of gender equality and empowerment of women) and indirectly fosters MDG 2 (achievement of universal primary education), MDG 4 (reduce child mortality), MDG 5 (improve maternal health) and MDG 6 (combat HIV/AIDS, malaria and other diseases). The establishment of partnerships with internationally accredited certification agencies contributes to achieving global partnerships for a small landlocked country and thus contributes to MDG 8.

The study provides relevant background information on the present situation of the lemongrass oil industry in Bhutan in relation to the country's economy, the main parties involved in the development of non-wood forest products (NWFPs) and the introduction of certification schemes for wild collected lemongrass. This is followed by an explanation of the study methodology and a presentation of study results. We conclude with an analysis of the results with regard to the achievement of the MDGs and recommendations for policymakers and researchers in Bhutan and the region.

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