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Microsoft word - market_survey_and ranking_of_six_ nepalse_maps_vers3.docx

Bad Homburg • Berlin • Frankfurt/Main Market survey
Medicinal and Aromatic Products (MAP)
Klaus Dürbeck / Torsten Picha Management Consultants Bad Homburg, Deutschland Victoor-Achard-Str. 15 • 61350 Bad Homburg • Germany Abbreviations

EU European
Food and Agriculture Organization Food and Drug Administration Good Agricultural and Collection Practice Good Manufacturing Practice Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Hazard Analysis and Critical Control Points Material Safety Data Sheets parts per million South Asian Association for Regional Cooperation Technical Data Sheet United Nations Conference on Trade and Development United Nations Development Program United Nations Industrial Development Organization United States of America World Trade Organization Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Content
Abbreviations
Executive Summary Proposed Ranking based mainly on Market Survey . 6 #1 Essential Oils . 7 #2 Ammomum subulatum Roxb. (Cardamom) . 7 #3 Asparagus racemosus Wild (Satavari) . 7 #4 Sapindus mukorossi Gaertn (Soap nut) . 7 #5 Cinnamomum tamala (Bay leaf) . 8 #6 Zanthoxylum armatum DC (Timur) . 8 Background information (evaluation of secondary information) . 9 1.2) Traditional 1.4) Traditional Gaertn.(Soap nut) . 15 Background information (evaluation of secondary information) . 15 1.2) Traditional 1.4) Traditional Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Background information (evaluation of secondary information) . 18 1.2) Traditional 1.4) Traditional Cinnamomum tamala (Buch.-Ham.) T. Nees & Eberm. (Bay leaf) . 21 Background information (evaluation of secondary information) . 21 1.2) Traditional 1.4) Traditional Asparagus racemosus Willd. (Satavari) . 25 Background information (evaluation of secondary information) . 25 1.2) Traditional 1.4) Traditional Background information (evaluation of secondary information) . 29 1.2) Traditional 1.4) Traditional Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Executive Summary
1) General
In general, the market for plant raw material is challenging. Many of the products are practically not known in Europe. Nevertheless most interviewed companies were very interested to learn more about these products and their potential use with the potential to attain a competitive advantage in the near future by importing the products. The same products may be very well known in the South Asian Association for Regional Cooperation (SAARC) region, but do face large domestic supply from India or elsewhere in Asia. Nepal is considered as a major supplier for some product (ginger, cardamom) for the SAARC region. However, the fact that export of raw material will not be the best strategy was to be expected. Regardless which products from Nepal will be promoted, value addition in Nepal will be crucial and requires serious consideration. One possible way of value addition is via certificates (e.g. organic, FairWild or the different fair-trade certification schemes according to buyers requirements), but is by now mainly important regarding the export to western countries. During the discussions with potential buyers in Europe it became clear that the reputation of Nepalese companies is weak or not known. Therefore it will be important to build trust in terms of e.g. quality, quantity, and service abilities. Seeing this as a challenge rather than a problem may also create good business opportunities. Especially regarding essential oils most of the interviewed companies in Europe showed high interest in establishing direct access to producers in Nepal. It should be considered to create trustworthy direct relationships from the very beginning of the project. During Biofach trade fair companies from India and Sri Lanka showed immediate interest in organic certified and conventional raw materials (for example: large cardamom) from Nepal. At present no offers in terms of quality, quantity and price are known from Nepalese companies to facilitate the market entry in SAARC countries and in Europe. Proposed Ranking based mainly on Market Survey
The ranking based on the market survey as basis for this study clearly indicates that for dried raw material little interest is available from Europe. Nepal as an origin for plant raw material available in Europe is known only for ginger. Future trade development needs to include value addition and product development in Nepal and through Nepalese companies. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) #1 Essential Oils

Since the late 1980ies the essential oils from Nepal are introduced in Europe through the
earlier work of Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
Protrade. Interested essential oil and aromatherapy companies from Europe have
established their supply among others, Primavera Life, Germany, Vossen, Belgium, or S&D
Aroma from United Kingdom (UK). The mentioned companies in Europe offer up to 9
Nepalese essential oils have a niche market as (organic certified) speciality products until
today.
The priority ranking essential oil includes:
1. Juniper (needles and berries)
2. Himalayan Fir
3. Wintergreen
4. Rhododendron anthopogon
At present the new market entry is hindered because no company and product information is
available of producers and exporters of essential oils from Nepal.
#2 Ammomum subulatum Roxb. (Cardamom)

There is need to increase export to Pakistan, Bangladesh, United Arab Emirates, Singapore,
Hong Kong and Afghanistan as well as develop markets in other potential countries for which
little efforts have been known to structure and promote direct exports to the different national
markets in the SAARC region. Even in India, efforts have not been made to export to major
markets, like Delhi and Mumbai and Amritsar directly by approaching the buyers there.
In Europe there is currently no demand visible.
#3 Asparagus racemosus Wild (Satavari)

Even though the regional exports for Asparagus racemosus is constantly on the rise; the
supply seems to be inadequate and the species is considered to be highly endangered.
Little demand in Europe as Ayurvedic medicine is just a niche.
#4 Sapindus mukorossi Gaertn (Soap nut)

There is established for the raw material in Europe on the basis on the recent market
developments as detergent (laundry detergent). Demand in Europe is decreasing. Regarding
the export to SAARC countries there is strong competition from producers in India.
Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) #5 Cinnamomum tamala (Bay leaf)

Leaves of Cinnamomum tamala (tejpat) are widely used in northern India as a spice. The
demand in India is visible as a whole, but the origin of supply are not well documented. It is
not documented how much of this product origin actually in Nepal. There is no or very little
demand in Europe.
There is also a market for the essential oil, though cheap supplies from other sources exist
and make it unlikely to find wider international use.
#6 Zanthoxylum armatum DC (Timur)

Currently there seems to be no demand for Zanthoxylum armatum in Europe. Not enough
consolidated research on the raw material and the essential oil of this plant was organised
during recent year. The essential oil was introduced to Europe with little success. Today
consumer safety considerations are in the forefront of the few discussions about timur in
Europe. Little is known about the demand in SAARC countries. The question whether
increased production of timur fruit would be endangering the survival of this species should
be carefully investigated.
Resume

For all raw materials the ranking above it is important to note that demand for raw material
was not visible as part of the discussions and interviews with companies in Europe.
The value addition through extraction of the respective active principles will open market
opportunities for Europe, e.g. soap nut.
Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Amomum subulatum Roxb.
Background information (evaluation of secondary information)
1.1) Species
Description

Large Cardamom / Amomum subulatum Roxb. / Alaichi
Amomum subulatum is only grown in India, Nepal and Bhutan. Cardamom produced in
Burma, Thailand, Vietnam, Cambodia, Laos, Indonesia, Ethiopia Guatemala, Honduras and
South India are of different species within the same genera or of another genera.1
Alainchi is farmed in the Eastern Himalayas in Nepal, Sikkim and Bhutan at an altitude of
500-2000 meter (m), from subtropical to the cool temperate zones (Sharma, 2000). This
species inhabits cool forest areas near mountain streams and damp forest floors.
From China and Vietnam under the synonym: Amomum costatum (most probably different
species).

Black cardamom (also known as brown cardamom, elaichi, thảo quả and tsao-ko) is a
plant in the family Zingiberaceae. Its seed pods have a strong camphor-like flavor, with a
smoky character derived from the method of drying.2
1.2) Traditional Uses

Large cardamom is used in food preparations mainly in North India, Pakistan and
Bangladesh. Large volume of crude Alainchi is traded to the Indian market in Siliguri, which
is ultimately sold as a spice. The oil extracted after processing can be used in Ayurvedic
medicine.

Locally it is used as a food spice and as a mouth freshener after a meal.3
1.3) Production

It is well established fact that Large Cardamom is a lucrative cash commodity of Nepal.
The produce is grown in the marginal and semi marginal types of land in the mid hill regions
of Nepal. It is cultivated in nearly 37 districts of mid hill regions however the leading
producers are the mid hills of Eastern Region.
As per the production statistics, more than 97% of the total production is concentrated in
seven districts of the Eastern Development Region viz Taplejung, Panchthar, Ilam,
Dhankura, Bhojpur, Terhathum and Sankhuwasabha.
1 Source: International Trade Centre (UNCTAD/ WTO): Sector study on large cardamom 2007 2 Source: http://www.uni-graz.at/ katzer/engl/Amom_sub.html 3 Source: http://www.ansab.org/UserFiles/alainchi.pdf Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Nepal is the leading producer of large cardamom. In the year 2007-08, the total production of
large cardamom was recorded as 7087 metric tons (MT).
The numbers of farmer families involved in large cardamom cultivation in Nepal are around
33 thousand.
There is very little value addition on the farmers' level; the plantations are affected by severe
diseases like chhirkey, foorkey, kaalo tusaro, and fal napakne. The market promotional
activities such as the basic infrastructures like road, collection centers, gowdowns, packaging
and branding, exploration of new markets and extension services are lacking. But still, the
crop is getting popularity among the mid hill farmers and gaining expansion in other districts
too.4
Production of large cardamom in India, Bhutan and Nepal from 2000-01 to 2005-065

Year
India Bhutan
Nepal Total
5983 13,337
Production in MT

1.4) Traditional

More than 90% of all Nepalese Cardamom is exported.
Nepal's export of large cardamom is very much dependent on India and especially Siliguri
market. It is estimated that normally more than 80% of the production goes to Siliguri market.
Large cardamom is used in food preparations mainly in North India, Pakistan and
Bangladesh and in a small way by the ethnic population in countries like, UAE, UK, United
States of America (USA), Canada, Singapore, Hong Kong, etc.
Large cardamom has at present little demand from Western countries and nor from Japan,
Australia or New Zealand.6
4 Source: Price Trend Analysis of Large Cardamom in Nepal 5 Source: India-Spices Board, Govt. of India, Cochin, India; Bhutan-R N R Statistics 2004, Ministry of Agriculture, Royal Government of Bhutan and * Estimates by the Spices Board; Nepal- Statistical Information of Nepalese Agriculture, HMG/MOAC, Agri-business Promotion and Statistics Division 6 Source: International Trade Centre (UNCTAD/WTO): Sector study on large cardamom (2007) Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) According to trades' information, a total of 6,014 tons of Cardamom was traded in 2003/04. In monetary terms it was worth of NRs 1.26 billions.
Fluctuating prices and uncertainty of market (final) of Cardamom are the major problems facing the farmers. In 1999/00 the price at farmers' level was about NRs. 300 per kilogram (kg), whereas in 2003/04, it became about NRs. 150 per kg. While looking at the average annual price trend of large cardamom in two major markets, Dharan and Birtamod of Nepal, the trend during last five years shows an annual increment by 13%. The increase in price compared to previous year was the highest in the year 2006 when the price was higher by 42% than the previous year and in 2008 the average price was not observed higher than previous year. This price trend during last five years indicates that the price of large cardamom seems to be stable since 2007 and there has not been significant rise in its price. 7 Source: ANSAB homepage: http://www.ansab.org/mis/loadpage.php?type=nrbp&id=2 8 Source: Price Trend Analysis of Large Cardamom in Nepal Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Quality of Nepal large cardamom is reported to be better than from the other two countries,
India and Bhutan due to large sized capsules. The high priced grade ‘Thodey' constitutes
capsules of big size. Attention should be drawn to Nepal's larger sized capsules to help
marketing with a better price.
The pink large cardamom produced through improved Bhatti should be launched as a special
quality product.9
Major markets of large cardamom in India10
Major Distribution / Exporting centre
Estimated arrival in MT
Percentage share
Siliguri and markets in East India
Calcutta and nearby markets
Mumbai and nearby markets
Amritsar and other markets in Punjab
Delhi and other markets in North India
To verify the internal market environment of the cardamom sector in Nepal a national stakeholder workshop is proposed representing the farmers, traders and processing companies in Nepal. The inputs from the Government are required for the formulation of a national and export strategies. 2) Survey
2.1) Market
India has been the sole export destination for Nepal large cardamom until recently. But diversification of markets began with the new millennium. In 2001-02 Pakistan, Singapore and UAE bought some quantity. Another two markets, Hong Kong and Afghanistan were added to this list in 2002-03. Bangladesh and USA became buyers of Nepal large cardamom in 2003-04. Export to Pakistan which stands next to India in consumption, stood at a sizeable quantity of 823 MT in this year as against usual orders of about 200 MT. The year 2003-04 is important in another way as Nepal could export to a total of seven countries, besides, India. Though Bangladesh, Hong Kong and Afghanistan withdrew from import subsequently their quantities are small, Bangladesh being an exception. It is highly encouraging that export volumes to countries other than India increased steadily. However, export performance in 2005-06 has been poor and the reason for it should be studied. In general the trend is very positive indicating the capability of Nepal to export large cardamom to various other countries earning US-Dollar (USD). For many years the entire production was sold in Siliguri market in India. It is more or less a monopoly market and buyers there tend to dictate price. Recently some quantity is being shipped directly to Pakistan, Bangladesh, UAE, Singapore, Hong Kong and Afghanistan. But total export to these countries is not even 20% of the production. 9 Source: International Trade Centre (UNCTAD/WTO): Sector study on large cardamom (2007) http://www.intracen.org/atf/nepal/Docs/cardamom-final.pdf 10 Source: Large cardamom and its significance-Perspective of North East India and its assessment Analysis for the benefit of Nepali small holders, Oct-Dec 2004, Lotus Intel ect, Katmandu Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) There is need to increase export to these countries as well as develop markets in other potential countries for which nothing has been done. Even in India, efforts have not been made to export to major markets, like Delhi and Mumbai and Amritsar directly by approaching the buyers there.11 Large Cardamom is little known in Europe. Company and product profile are required to identify new marketing opportunities. India

Interviewed companies were not interested in large cardamom. There is a high demand,
though also large domestic supply.
Sri Lanka

The interviewed company showed high interest in large cardamom. Samples as wel as
further information on application, use, processing, potential, quantity and quality (organic)
are requested.
Europe

There is in general little interest in raw material. Main use is as incense. However, the smell
of large cardamom is considered to be unattractive.
Opportunities are based on individual sourcing and processing data. The implementation of
the international quality requirements (Good Agricultural and Collection Practice - GACP,
Hazard Analysis and Critical Control Points - HACCP and Good Manufacturing Practice -
GMP) needs to focus on impact and sustainability of raw material production and value
addition.
In the context of value chain management the opportunities for certificate of origin, organic
and fair trade certification and ABS mechanisms offer additional forms of branding.
Conclusion and Ranking
Based on the fact, that Nepalese cardamom represents the best quality on the market, there shall be opportunity to sell additional quantities in the traditional markets. There is need to increase export to Pakistan, Bangladesh, UAE, Singapore, Hong Kong and Afghanistan as well as develop markets in other potential countries for which nothing has been done. Even in India, efforts have not been made to export to major markets, like Delhi and Mumbai and Amritsar directly by approaching the buyers there. 11 Source: International Trade Centre (UNCTAD/WTO): Sector study on large cardamom (2007) Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) The pink large cardamom produced through improved Bhatti should be launched as a special quality product. In Europe there is currently no demand. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Sapindus mukorossi Gaertn.
Background information (evaluation of secondary information)
1.1) Species
description
Family: Sapindaceae Common names: English: Soap-nut Hindi: Ritha, Reetha, Aritha, Dodan, Kanmar Sanskrit: Phenila, Urista Distribution: Himalaya, North East India, Myanmar, Indo-China, China, Taiwan, Korea, Japan. Climate/vegetation zone: TR-ST (600 - 1200 m) Habit: Medium-sized tree Habitat: Tropical - sub-tropical broad-leaved forests. Trade name: Ritha Part used: Fruits Substitution: Substituted by/with fruits of Acacia sinuata (Lour.) Merrill Methods of harvest: Fruits are usually hand-picked, rarely fruiting branches are cut to harvest. Primary processing: Freshly picked fruits are sun-dried. Principal constituents: Pericarp is rich in saponins, Seeds yield a fatty acid. Principal threats: Destruction of trees for other purposes like construction works, preparation of furniture, agricultural implements, etc.12 1.2) Traditional
Food: The seed kernel cake of S. mukorossi contains 32% crude protein and 7.9% total N. The protein is mainly of the globulin type. Aspartic acid, glutamic acid, lysine, serine, glycine, arginine, alanine, valine, leucine/isoleucine, proline and tryptophan have been identified. However, the kennels lack about 44% of essential amino acids and are thus inadequate for human nutrition but industrial protein could be prepared from the globulin fraction. Essential oil: Seeds contain 23% oil of which 92% is triglycerides; the triglyceride fraction contained 30% oleo-palmito-arachidin glyceride, 13.3% oleo-diarachidin glyceride and 56.7% di-olein type glycerides such as di-oleo-palmitin, dioleo-stearin and di-oleo-arachidin. 12 Source: http://mappa.icimod.org/mappa_overview.php?p=cfc Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Poison: The fruit pulp is used in northern India and China to control head lice and as fish poison. Powdered seeds are insecticidal. Medicine: The fruit and seeds are regarded as a cure for epilepsy in northern India. A decoction of the fruit is used as an expectorant. Seeds are used in China to stop dental caries. The fruit is considered to be haemolytic. Other products: The chief product of the tree is its fruit, the pulp of which is used as a substitute for soap. The active ingredients are saponins which are extracted by boiling the powdered fruits. Soapnuts are used as detergent for polishing jewellery, and for washing and bleaching cardamoms. The saponins are used as a textile auxiliary and as an emulsifier in insecticides.13 1.3) Production

About the production of soapnut little is published except by Das (2004) p.64 and
documented in:
http://www.uscollege.edu.np/Lecture/Bhawashwor%20Das/DAS%20Narural%20Prodct%20C
hemLecture%201-30-1.pdf
This publication shows as well that considerable research and teaching has been in Nepal
since long. The question is why this has not triggered down into the industry and community
levels.
Soapnut in Nepal is procured through wild collection.

1.4) Traditional
Traditional markets are India and China. Europe and here especially Germany started to import in 2003/2004. 2) Survey
2.1) Market
There are different qualities of Sapindus mukorossi available. The bigger nuts are from India and Nepal and provide the best available quality of the product In 2004 until 2008 there was a boom in trading soap nuts as a washing powder. In Europe especial y in Germany a big quantity of the "organic Food shops" offered soap nuts mainly from India. The market in India is broader (as explained above), however sufficient production in the country is able to satisfy the demand easily. Meanwhile the nuts are completely processed, packed and sometimes even labelled in the country of origin. 13 Source: AgroForestryTree Database Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) During the last two years the demand in Europe is decreasing. There are already too much soap nuts on the market. One of the reasons is that the washing abilities are at last not as intensive as the "modern European" is used to, German traders say. An interviewed company from Sri Lanka was interested in receiving samples, further information on application, use, processing, as well as potential, quantity and quality (organic). Conclusion and Ranking
It seems that organic soap nuts have been nothing more than a trend in the western community. Another point is that even if the demand would unexpectedly rise again the Indian producers are able to offer the same quality as the Nepalese but are already much better organized in terms of packing, labelling and exporting. Developing a new project with a partner of substantial capacity might be a possible option to further develop the Nepalese soap nut export. Another possibility would be to find additional uses of the product and thereby create new demand. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Zanthoxylum armatum DC.
Background information (evaluation of secondary information)
1.1) Species
description
Family: Rutaceae Synonyms: Zanthoxylum alatum Roxb. Zanthoxylum hostile Wall. Zanthoxylum violaceum Wall. English: Toothache tree, Prickly ash, Nepal pepper Nepali: Timur Hindi: Tumra, Tejbal Sanskrit: Tumburu Distribution: Kashmir to Bhutan, N. India, China, Taiwan, Philippines. Climate/vegetation zone: ST-TM (1000 - 2500 m) Habit: Spiny shrub or small tree Habitat: Shrubberies, open forests, cultivated areas. Trade name: Timur, Tomar Parts used: Bark, leaves, flowers fruit, and seeds14 Adulteration/substitution/: Often substituted by Z. acanthopodium DC., Z. hamiltonianum Wall., etc. Methods of harvest: Fruits are handpicked. Often branches are cut to harvest fruits. Primary processing: Fruits are shade-dried, occasionally sun-dried. Principal constituents: Bark contains dictamnine, volatile oil and resin; fruits contain essential oil. Principal threats: Depleting resources in the wild, commercial collection, household uses, increasing commercial demand, often destructive harvesting, etc.15 The production, chemistry and pharmacology of timur is described including picture on page 59 ff in: http://www.uscollege.edu.np/Lecture/Bhawashwor%20Das/DAS%20Narural%20Prodct%20ChemLecture%201-30-1.pdf 14 Source: ICIMOD MAPs net 15 Source: http://mappa.icimod.org/mappa_overview.php?p=cfc Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) 1.2) Traditional
Timur is used in curing various common ailments such as toothache, common cold, cough, and fever, as it is believed to give warmth to the body. The pharmaceutical companies generally use timur fruit for making different types of toothpaste.16 Ayurveda: Plant is considered as digestive, stomachic and used in asthma, bronchitis, and toothache. Unani: Plant is considered to be useful in diarrhoea, brain disorder, stomachache, liver disorder, foul smel of mouth. Ethnomedicine: Bark and seeds are considered as a tonic and useful in fever, dyspepsia, cholera, toothache, cough, roundworms and stomach troubles. It is used for constipation, headache and nose block. Seeds are used in helminthiasis, paralysis, gout, leucoderma, convulsions, diabetes, ulcers, cardiao-tonic and debility. Fruit is considered as carminative and useful in toothache, paste of immature fruits is applied to cuts and wounds and also taken in cases of cough, fever and dyspepsia and cholera. Fruit and seeds are useful in colic, asthma, indigestion, diarrhoea, tumours, skin diseases, leprosy, for scabies and as insect repellent, stomach disorders, cut and wounds. Root is anthelmintic, and branches are used for brushing teeth in cases of toothache. Stem is used as tooth brush and mouth purifiers. Leaf juice is taken to treat abdominal pains and paste is applied for leucoderma, and leaves and fruits are chewed in teeth enamel disease. Ayurvedic products: S. V. Dantamanjan; Tejovatyadya Ghrita; Tumbarvadi Churna17 1.3) Production

Timur is not a fast-growing species and has low population sizes. The proliferation of woody
weeds such as Lantana in timur-growing areas is creating problems for the survival of this
native species. Some of the mechanisms of collection adopted by the local people are
harmful to existing populations. However, the main question is whether timur shrubs can be
conserved when the race for commercial tapping of its fruit is escalating, and when
maximising income is the chief concern of local harvesters. Recognising the current demand,
timur plantations can be developed as a viable source of income for resource-poor villagers.
Timur can be grown on marginal and unproductive land, and also in forested land as an
understorey shrub.18
16 Source: Kala Chandra Prakash, Farooquee Nehal A, Dhar Uppeandra; Conservaion & Society. 2005; 3:224-230) 17 Source: ICIMOD MAPs net 18 Source: (Kala Chandra Prakash, Farooquee Nehal A, Dhar Uppeandra; Conservaion & Society. 2005; 3:224-230) Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) In contrary a GTZ study comes to the conclusion that Timur can be purchased in any quantity.19 1.4) Traditional
Products of this medicinal plant are regularly traded with India.20 With the entry of pharmaceutical companies in the timur business, it has become a profitable non-timber forest product (NTFP). The pharmaceutical companies generally use timur fruit for making different types of toothpaste. Prior to commercial tapping, timur was sold at Rs12 to 15 per kg in villages and in local markets. In the year 2000, the price in the local market was Rs 45 per kg, whereas the prices of timur in the plains during the same year increased to Rs150 - Rs 200 per kg.21 Form: Crude fruit, essential oil22 Export quantity: 506,452.77 kg Annual industrial demand in Kathmandu: 5,500 kg of fruits p.a.23 Annual demand in Kathmandu Valley is 4,000 kg fruit and 1,500 kg essential oil.24 2) Survey
2.1) Market
None of the interviewed companies in Europe is currently trading Zanthoxylum armatum. However, in the SAARC area pharmaceutical companies generally use timur fruit for making different types of toothpaste. Nepalese timur is facing strong competition from other major herb exporting countries like India and China. Conclusion and Ranking
Currently there seems to be no demand for Zanthoxylum armatum in Europe. Many of the interviewed companies showed a general interest in learning more about MAPs from Nepal and possible uses. About the demand from SAARC countries little information could be made available in the company interviews at Biofach and In-Cosmetics trade fairs in Europe. 19 Source: GTZ: Medicinal and aromatic plants in Nepal, 2005 20 Source: W. H. den Hertog and K. F. Wiersum. Mountain Research and Development, Vol. 20, No. 2 (May, 2000), pp. 136-145 21 Source: Kala Chandra Prakash, Farooquee Nehal A, Dhar Uppeandra; Conservaion & Society. 2005; 3:224-230 22 Source: ICIMOD MAPs net 23 Source: GTZ: Medicinal and aromatic plants in Nepal, 2005 24 Source: ANSAB: Study on Domestic Market of Medicinal and Aromatic Plants (MAPs) in Kathmandu Valley, 2004 Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Cinnamomum tamala (Buch.-Ham.) T. Nees & Eberm.
Background information (evaluation of secondary information)
1.1) Species
Description
Family: Lauraceae Synonym: Cinnamomum tejpata Common names: English: Indian Bay-leaf Tej-patta,Tejpat Origin: South slopes of the Himalayas. Mid hills of Nepal and India Used plant part: Leaves (Tejpatta) and bark (Dalchini) are widely used as spice and essential oils for flavouring food and formulating traditional medicines. The bark may be used as an inferior sub-stitute of cinna-mon or cassia. Main constituents: In the essential oil from the leaves, mostly mono-terpenoides were found: Linalool (50%) is the major compound, whereas α-pinene, p-cymene, β-pinene and limonene range around 5 to 10% each. Phenylpropanoids appear only in traces: Newer work reports 1% cinnamic aldehyde and no eugenol, whereas older literature speaks of traces of both compounds. Sensory quality: Strongly aromatic, somewhat reminiscent to cinnamon or cloves. Gernot Katzer's Spice Pages: http://www.uni-graz.at/ katzer/engl/index.html ICIMOD: http://www.icimod.org/?page=144 1.2) Traditional
The tough, three-veined leaves are very popular in Northern India, but are little known else-where — at least, today. They were well known to the Romans under the name malo-bathrum (also spelt mala-bathrum) and used both for perfumery and in cooking; later they fell victim to the multitude of new spices available, and were forgotten. Today, Indian bay-leaves are a spice used almost exclusively in the kitchens of Northern India, especially in the famous Moghul cuisine that was developed at the Imperial courts in Delhi and Agra. Since Indian bay leaves are hardly available in the West, most cooking books encourage the use of laurel (the Mediterranean bay leaf) instead.25 25 Source: Gernot Katzer's Spice Pages: http://www.uni-graz.at/ katzer/engl/index.html Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Food: The leaves are used extensively in northern India as a spice - Tejpat. In Kashmir they are used as a substitute for paan (betel leaves). Essential oil: Leaves yield an essential oil with a specific gravity of 1.025, it is soluble in 1.2 volume of 70% alcohol. The oil resembles cinnamon leaf oil and contains phellandrene and 78% eugenol. The essential oil from the bark is pale yellow, and contains 70 - 85% cinnamic aldehyde. The oil is used in perfuming soap and in medicine. However, trade in cassia oil has declined appreciably with the advent of synthetic cinnamic aldehyde. Poison: Four essential oils of Cinnamomum tamala screened for fungicidal activity against F. moniliforme [Gibberella fujikuroi], a postharvest fungal pathogen of cereal crops were effective in inhibiting fungal growth. Activity of the four oils increased with concentration. Cinnamomum tamala essential oil exhibited fungitoxicity against A. flavus and A. parasiticus at 3000 parts per million (ppm) and 1000 ppm, respectively. The fungitoxic property of the oil was not affected by temperature, autoclaving or storage. Medicine: Leaves of Cinnamomum tamala are used in colic and diarrhoeal preparations. Cinnamomum tamala leaf extracts produce a hypoglycaemic effect in experimental rats. Hydrodistilled essential oils of Cinnamomum tamala screened for their anti-fungal activity against Trichophyton mentagrophytes and Microsporum microsporum audounil causing ring worm diseases in animals and humans exhibited fungicidal or fungi-static toxicity and were more effective than the synthetic antifungal agents, clotrimazole, griseofulvin or nystatin. Plant parts are used in many ayurvedic preparations e.g. sudarshan, choorna and chanderprabhavati. Other products: The leaf extracts are used as clarifiers in dyeing procedures with myrobalans or kamala.26 1.3) Production

Since the early 1960s, farmers of different middle hills districts of Nepal have been planting,
protecting and harvesting Cinnamomum tamala. In areas with marketing facilities, local
people sell raw or processed cinnamon products including leaf and bark for cash income to
fulfil their household needs in several mountainous districts including Palpa. Exports of these
products to India and other neighbouring countries has continued to increase for the last two
decades, indicating that the species has great potential for income generation for poor and
disadvantaged people.27
1.4) Traditional
Traditional markets for Cinnamomum tamala are India and other neighbouring countries. Annual demand in Kathmandu Valley is 16,000 kg of leaves and 600 kg essential oil.28 26 Source: AgroForestryTree Database 27 Source: Parajuli, 1998; Maharjan, 2002 28 Source: ANSAB: Study on Domestic Market of Medicinal and Aromatic Plants (MAPs) in Kathmandu Valley, 2004 Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Selling in crude from
Collectors have three choices of selling crude cinnamon leaf (Tejpat). They can sell either to
road-head traders or to wholesalers and or to Indian traders.
Selling in processed (essential oil) form
The existing trade situation shows that Nepal can hardly compete with international markets
for marketing of essential oil of different species.29
2) Survey
2.1) Market
The bay leaf products trade and marketing systems, as with other MAPs, are disorganised and secretive, and collectors receive a meagre share of the final value of products.30 Daichini (Cinnamomum tamala bark) have been traded from Palpa district since decades. The product is mostly traded in the Butwal market. The rate quoted by the Butwal trader on July 24th was NRs 90/- per dharni (approximately 2.5 kg). On July 23rd the price for Dalchini in Indore (India) was IRs. 82/-(NRs. 131.2) per kg. When inquired, the Nepalese trader was convinced that the Dalchini of Indian origin was of higher quality evidenced by comparatively sweeter and stronger taste and flavor, and hence the price was higher. The trader also attributed quality to harvesting and post harvest techniques. The trader added that in India, the product is harvested from plants of definite age, in definite season, dry it properly and store at better condition. Therefore the product has better quality. The demand for raw materials from Cinnamomum tamala is global in character. The price trend for both leaf and bark is favourable.31 Leaves of Cinnamomum tamala (tejpat) are widely used in northern India as a spice but also furnish an essential oil on distillation and this finds some local use. Several chemo-types exist, producing oils rich in cinnamaldehyde or eugenol, but the existence of cheap supplies of these chemicals from other sources (eugenol-rich clove leaf oil from Indonesia, for example) means that Cinnamomum tamala oil is unlikely to find wider international use.32 Two interviewed companies from India were interested in Cinnamomum tamala from Nepal, one in leaves, the other in essential oil. 29 Source: PROMOTING MARKETING OF CINNAMON TREE PRODUCTS IN PALPADISTRICT OF NEPAL. By Bishnu Hari Pandit, Gopal B. Thapa and Michael Zoebisch) 30 Source: (ICIMOD: http://www.icimod.org/?page=144) 31 Source: Local Experience-based National Strategy for Organic Production and Management of MAPS/N TFPs in Nepal 32 Source: (FAO: Flavours and fragrances of plant origin. 1995) Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Conclusion and Ranking
Leaves of Cinnamomum tamala (tejpat) are widely used in northern India as a spice. There is no or very little demand in Europe. No additional information was generated through company interviews at Biofach and In-Cosmetic trade fairs in Europe. There is also a market for the essential oil, though cheap supplies from other sources exist and make it unlikely to find wider international use. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Asparagus racemosus Willd.
Background information (evaluation of secondary information)
1.1) Species
Description
Family: Liliaceae Synonym: Asparagus volubilis Buch.-Ham. Common names: English: Wild asparagus Nepali: Satawari, Kurilo Hindi: Satawar Sanskrit: Shatamuli Distribution: Himalaya, India, Malaysia, Australia, Africa Climate/vegetation zone: TR-TM (100 – 2100 m) Habit: A tal , much branched climbing shrub with spiny stem Habitat: Open shrubberies, forest Trade name: Satawari, Satawar, Kuril, Kurilo Part used: Tubers Primary processing: Tubers are washed, boiled in water, peeled the skin and sun-dried. Principal constituents: Tubers contain sarsapogenin and glycoside. Principal threats: Commercial harvesting, increasing demand, destructive harvesting, reducing resource base, habitat destruction, etc.33 1.2) Traditional
Shatavari is considered to be the main Ayurvedic rejuvenating female tonic for overall health and vitality.34 It is widely used for multiple purposes and its medicinal importance has been recognized by Ayurveda for centuries. Although almost all parts of this plant have some medicinal properties, roots and young shoots are of higher significance. Young spears are consumed as vegetable or salad and are considered as a balanced health food with many essential nutrients. Traditionally the roots are used mainly to promote milk secretion and as a demulcent, diuretic, aphrodisiac, tonic, alterative, antiseptic, antidiarrheal, glalctogogue and antispasmodic. It is also used to treat debility, especially in women and infertility, impotence, menopause, stomach ulcers, hyperacidity, dehydration, lung abscess, haematemesis, cough, 33 Source: http://mappa.icimod.org/mappa_overview.php?p=cfc 34 Source: Goyal RK, Singh J, Lal H. Asparagus racemosus--an update. Indian J Med Sci 2003;57:408 Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) herpes, leucorrhoea and chronic fevers, delay ageing process and form health food ingredients in several Ayurvedic formulations. Using the modern scientific tools many active compounds like several steroidal saponins, aglycones, alkaloids like asparagin-an anticancer agent and many other active pharmacologically important compounds have already been isolated from the roots of this species. Leaves contain rutin, diosgenin and a flavonoid glycoside identified as quercetin-3-glucuronide. Flowers contain quercetin hyperoside and rutin. Fruits contain glycosides of quercetin, rutin and hyperoside and steroidal saponins while fully ripe fruits contain cyanidin-3-galactoside and cyanidin-3-glucorhamnoside. These studies have further strengthened the traditional medical knowledge with scientific bases.35 1.3) Production

Kurilo is cultivated on private and community forest land and also collected from the wild.36
Asparagus racemosus is considered to be endangered because it has a high demand at
markets, but is mostly (and often excessively) gathered from its natural habitat.37
Due to its multiple uses, the demand for Asparagus racemosus is constantly on the rise;
however, the supply is rather erratic and inadequate. Destructive harvesting, combined with
habitat destruction in the form of deforestation has aggravated the problem. The plant is now
considered ‘endangered' in its natural habitat. Therefore, the need for conservation of this
plant is crucial.38

Production quantity: 34,168 kg39
Export quantity: 92,460 kg (average from the fiscal year 2001/2 to 2003/04 as shown by the
annual reports of DoF)
1.4) Traditional
Export quantity: 127,683.67 kg40 India is the traditional market. Annual industrial demand in Kathmandu: 1,200 kg p.a. Price: 170 nepal rupie (NPR)/kg41 35 Source: Krishna Kumar Pant; Sanu Devi Joshi. Botany Research International 2 (2): 88-93, 2009 36 Source: GTZ: Medicinal and aromatic plants in Nepal, 2005 37 Source: N Joshia, K Kehlenbeckb, BL Maass. Traditional, neglected vegetables of Nepal: Their sustainable utilization for meeting human needs. Tropentag 2007 38 Source: N Bopana, S Saxena: Asparagus racemosus—Ethnopharmacological evaluation and conservation needs. Journal of Ethnopharmacology 110 (2007) 1–15 39 Source: GTZ: Medicinal and aromatic plants in Nepal, 2005 40 Source: GTZ: Medicinal and aromatic plants in Nepal, 2005 41 Source: GTZ: Medicinal and aromatic plants in Nepal, 2005 Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) There is limited market and constant price for Asparagus hybrid while the price for the wild from is increasing. Annual demand in Kathmandu Valley is 1,200 kg42 2) Survey
2.1) Market
The World Health Organization (2003) has estimated that 80% of the population of developing countries being unable to afford pharmaceutical drugs rely on traditional medicines, mainly plant based, to sustain their primary health care needs. The increasing global acceptance of complementary and alternative medicine has been the major reason for the steep rise in the demand for medicinal plants. Projections of global trade in medicinal plants indicate a steep upward trend for the future. According to the World Bank report of 1998, world trade in medicinal plants and related products is expected to touch USD 5 trillion by 2050. In Asparagus racemosus, there is an almost 100% mark up in price from the collector level to the user. The demand for Asparagus racemosus in 2001 - 2002 was 10,924.7 tonnes which rose to 16,658.5 tonnes in 2004 - 2005 suggesting an annual growth rate of 15%.43 Herbal medicines continue to be a major market in U.S. pharmaceuticals and constitute a multi-billion dollar business. Approximately 1500 botanicals are sold as dietary supplements; formulations are not subject to Food and Drug Administration (FDA) clinical toxicity testing to assure their safety and efficacy. The Indian herbal drug market size is about USD 1 billion and the export of plant based crude drug is around USD 100 million. The current market potential of herbal medicine is estimated about USD 80 - 250 billion in Europe and USA. The current market size of the herbs and natural health products in China is about USD 650 million, of which imported herbal medicines account for USD 15 million. In response to the expected improvement in modern herbal medicine and reflective of their growing demand for natural medicines, 73% of the respondents to a consumer survey indicated they would depend more on herbal medicine in the future. Imports of herbs into Hong Kong in 2003 amounted to USD 166.4 million, a 6.8% decrease over the 2002's imports. This reflects less imports of liquorice roots of USD 0.2 (-23.8%) and ginseng root of USD 123.2 (-8.8%).44 42 Source: ANSAB: Study on Domestic Market of Medicinal and Aromatic Plants (MAPs) in Kathmandu Valley, 2004) 43 Source: National Medicinal Plants Board, 2003; N Bopana, S Saxena: Asparagus racemosus—Ethnopharmacological evaluation and conservation needs. Journal of Ethnopharmacology 110 (2007) 1–15 44 Source: RP Samy, PN Pushparaj, P Gopalakrishnakone: A compilation of Bioactive Compounds from Ayurveda. Bioinformation. 2008; 3(3): 100–110. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Interviewed Indian companies reported a high demand, though also a large domestic supply. Conclusion and Ranking
There is high commercial demand for Asparagus racemosus due to its use in ayurvedic medicine. A steep upward trend for herbal medicines is expected. Even though the demand for Asparagus racemosus is constantly on the rise; the supply seems to be inadequate and the species is considered to be highly endangered. Little qualified information is available on page 76 ff of: ‘http://www.uscollege.edu.np/Lecture/Bhawashwor%20Das/DAS%20Narural%20Prodct%20ChemLecture%201-30-1.pdf' showing the little scientific information available. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) Essential oils
Background information (evaluation of secondary information)
1.1) Species
description
In an recent account on essential oils from Nepal the essential oil plants and the essential oil industry is described under: Essential Oils in Nepal : A Practical Guide to Essential Oils and Aromatherapy, Khilendra Gurung, Himalayan Bio Trade Private Limited (HBTL), 2009, x, 148 p, illus, ISBN : 9937-2-1872-6. To describe the different species and essential oils goes beyond the scope of this studies, but is expected as specific focus in the course of the forthcoming project. 1.2) Traditional
In Nepal the industrial production of essential oils started through United Nations Development Program (UNDP)/ Food and Agriculture Organization (FAO)/ United Nations Industrial Development Organization (UNIDO) projects in the 80ies. There was no traditional use of essential oils in Nepal before 1.3) Production

A recent insider account on the production of essential oils is given on page 53 ff in a lecture
of Prof Das:
http://www.uscollege.edu.np/Lecture/Bhawashwor%20Das/DAS%20Narural%20Prodct%20C
hemLecture%201-30-1.pdf
The account of individual essential oils with quality description and background of the
essential oil production in Nepal is explained in detail for example through the following sites:
http://www.essencenepal.com/products.html; http://www.biosysnepal.com.np/product/
Listings of producer and trading companies of essential oils in Nepal are for example
available at:
http://nepal.yoolk.com/industry-agricultural-and-garment/essential-oil/;
http://www.eson.org.np/Processor.pdf
1.4) Traditional
Traditional markets for Nepalese essential oils are in India, a country which depends on the MAPs from Nepal as strategic raw materials after own resources in the Himalayas had been depleted. Normally the production of essential oils was done with companies in India. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) 2) Survey
2.1) Market
The market survey started with selected companies of India at Biofach to explore the actual importance of Nepalese essential oil raw materials and essential oils in today's world. In general the company representatives from India at Biofach had little knowledge about the origins of the mentioned raw materials. Some of them thought the mentioned 5 plant species of this survey are coming from production in northern India. India

Interviewed companies spoke from high demand, but also large domestic supplies.
Interesting oils would be Rose, Palmarosa, Rosmary, Sandalwood. Essential oils are mainly
used in cosmetics and Ayurveda. Market is growing.
Sri Lanka

The interview company had a high demand for essential oils, preferably in organic quality.
Europe

The cosmetics industry is interested in many different, often very specific, essential oils,
many of them of tropical origin. A number of raw materials is not produced in the European
Union (EU) as they require considerable (expensive) labour input or require a tropical
climate. Therefore, the EU is highly dependent on supplies from developing countries for the
majority of these raw materials. Taking the competition from EU production into account,
developing country exporters may find the best opportunities in the supply of exotic oils, or
their (semi-processed) raw materials, for which the production conditions are not favourable
in the EU. Furthermore, a potential opportunity for developing country producers of essential
oils lies in supplying the EU market with organically certified essential oils. Opportunities
exist especially for ingredients with properties which allow cosmetic products to be made fully
organic.
The demand for organic essential oils is increasing.
There is high interest in having direct access to producers and exporters of essential oils
from Nepal throughout all interviewed companies in Europe.
Some few companies from Europe offer up to nine essential oils from production in Nepal.
The most prominent offers of Nepalese essential oils are coming from direct project
community projects and their decentralized distillation. Interesting to note that the essential
oils offered from Nepal do not include ginger and large cardamom the two most important
essential oil plants and raw material exports to regional and international markets (ginger).
The most important export item for international market (ginger) is not included in the present
survey.
Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP) The top four essential oils for sales in Europe are from: 1. Juniper (needles and berries) 2. Himalayan Fir 3. Wintergreen 4. Rhododendron anthopogon. The marketing partner companies in Europe have a long standing working experience with their partners in Nepal. At present they report of no obstacles of trade in Nepal. The technical information available to them they consider as very solid. Conclusion and Ranking
Just a few of the interviewed companies, especially those in Europe, are already trading essential oils from Nepal. Most of the products are relatively easy available from other countries where business relations have already been developed. However speciality oils, organic certified oils etc. would doubtlessly have there chances to enter the market. Almost every interviewed company was interested to establish direct contacts to Nepalese producers and exporters. Potential buyers expect to get a complete offer in terms of product documentation (Material Safety Data Sheets (MSDS), Technical Data Sheet (TDS), certificates, available quantities) followed by samples and prices. Concerning speciality products it is useful to provide ideas which kind of end product could be developed (e.g. basic material for a new cosmetic line). If possible it would be helpful to create the whole story behind it (e.g. social impact of the product). A priority list for essential oils from Nepal could include: 1. Juniper (needles and berries) 2. Himalayan Fir 3. Wintergreen 4. Rhododendron anthopogon. As future challenges they identify: 1. Registration as Chemicals (REACH), cosmetics, food, pharmaceuticals in Europe. 2. Support in Public Relation and consumer education in Europe about the variety of natural ingredients from Nepal and their opportunities of use. 3. Publication of scientific information to support application of Nepalese ingredients 4. Support of development of final consumer products with Nepalese ingredients for applications in food, cosmetics and pharmaceuticals for European consumers. Market survey and ranking of six Nepalse Medicinal and Aromatic Products (MAP)

Source: http://www.includenepal.org/pdf/MAPs%20Market%20Survey,%20ECCOS%202010.pdf