Exports of herbs from Rukum in mid-western Nepal increased by around 12 percent in the first half of this fiscal year due to a hike in demand in the international market.

Around 67,000 kg of herbs were shipped from the district between mid-July and mid-January of 2016-17. According to the data of the District Forest Office (DFO), the herbs were sent to various parts of the country. 

Bhim Prasad Kadel, officiating head at the DFO, said exports totalled around 60,000 kg in the first six months of the last fiscal year. “There is an increment in the volume of exports this year,” Kadel said. He added that the government collected around Rs1.7 million in taxes from the herb trade.

The DFO expects revenues to swell to Rs3 million this year. The District Development Committee gets to keep 10 percent of the total amount and the rest goes to the government coffers.

According to a DFO official Dharani Dahar KC, herbs from Rukum district are exported to several countries including India besides being sent to various places in Nepal.

Herbs like yarsagumba, also known as caterpillar fungus, and cinnamon, among others, top the list of exports. The highest priced herb yarsagumba costs Rs25,000 per kg, according to the DFO.

Exports of herbs from Nepal are increasing on an annual basis following a sharp rise in demand in the international market. According to government agencies, a rise in demand for medicinal oils and high-value yarsagumba is the main reason behind the surge in exports.

Following a brisk rise in demand, smuggling of herbs to southern neighbour India and northern neighbour China too has risen in recent days.