Unveiling the study report entitled 'Study on Impact of Yarsagumba on Nepali Economy', the central bank concluded that the increased economic activities following the rise in collection and trade of the unique caterpillar fungus in recent years has also contributed in the national economy.According to the central bank, Rs 4.92 billion worth of yarshagumba was collected in 11 hilly districts in 2014/15. The figure is higher than Rs 4.26 billion that cardamom farming fetched in eastern Nepal in the same period.
The study concluded that yarshagumba trade has created employment opportunities and increased the income of people, mainly from the indigenous community, in the Himalayan districts. According to the study, 87 percent of the respondents of the survey carried out by the study team said that employment opportunities have increased due to collection and trading of yarshagumba. Most of the employment opportunities, however, are of short-term nature. Similarly, 90 percent of the respondents said yarshagumba trade has given a boost to hotel business, while 48 percent said the trade has supported tourism business. Likeiwse, 82 percent respondents said that they have seen expansion of bank and financial institutions (BFIs) due to yarshagumba business.
A total of 93 respondents participated in the survey, according to the study report.
The report has concluded that rise in economic activities has helped in monetary expansion in these areas.
“With the rise in savings, there is a positive impact in human resource development due to investment in schools, roads, bridges and new houses, among other infrastructures, contributing to economic productivity of the country,” reads the report.
However, the central bank has also pointed out impacts of this largely informal business. According to the report, the government is losing huge revenue due to unmanaged collection and informal trading of yarshagumba. Informal trade accounts for 25 to 30 percent of total yarshagumba trade, according to the report.
Lack of management of garbage emanating from the temporary shelters of collectors, deforestation during the collection, and lack of use of appropriate equipment for collection are some of the environmental challenges underlined in the report. The report also warned that the medicinal herb can become extinct in the near future due to environmental hazards.
The report has also suggested limiting the number of collectors, enforcing measures to maintain environment, discouraging use of children in collection of yarshagumba, simplifying the process of acquiring permit and royalty collection, and providing orientation to the collectors.
Similarly, it has suggested introducing a provision to register firms for trading of yarshagumba, setting up temporary security check posts in strategic areas like Bajhang to check smuggling toward Tibet, and floating loans to collectors to discourage informal lending at exorbitant interest rates.
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