Role of Network marketing in Non Timber Forest

Role of Network Marketing In Non Timber Forest
Products (NTFPs) Promotion
(A Case Study of Easy Multitrade International (P) Ltd, Nepal)
A Project Paper Submitted for Partial Fulfillment of the Requirements
of Bachelor of Science in Forestry
Researcher
Naina Bahadur Tamang
TU Reg. No 2-1-17-18-2001
Awarded By
Tribhuvan University
Institute of Forestry, Hetauda Campus
Hetauda, Nepal
September, 2008
1
Role of Network Marketing In Non Timber Forest
Products (NTFPs) Promotion
(A Case Study of Easy Multitrade International (P) Ltd, Nepal)
A Project Paper Submitted for Partial Fulfillment of the Requirements of
Bachelor of Science in Forestry
Researcher
Naina Bahadur Tamang
T.U. Reg. No 2-1-17-18-2001
B.Sc. Final Year (2061/065)
Research Advisor
Shukhdeo Chowdhury.
Associate Professor
IOF, Hetauda
Campus, Hetauda
Co-advisor
Arjun Pandey
EMI HU, Nepal
Financial Support
EMI Nepal
Submitted to
Tribhuvan University
Institute of Forestry, Hetauda Campus
Hetauda, Nepal
September, 2008
2
ABSTRACT
The research entitled “Role of Network Marketing in Non Timber Forest Products
(NTFPs) Promotion” was conducted in selected company Easy Multitrade International (EMI)
Nepal and in its working area in 7 major cities viz. Surkhet, Nepalgunj, Butwal, Pokhara,
Kathmandu, Chitwan and Hetauda from where the raw and extracts of Non Timber Forest Products
(hereafter NTFPs) purchased bye EMI Herbal Udhyog (Industry), with an endeavor to assess the
role of Network Marketing in the promotion of NTFPs. Both primary and secondary data were
collected from questionnaire survey, Key informants interview, Group discussion, Direct field visit
and observation, Publication of EMI, records of EMI HU, and other relevant literatures were
processed, analyzed and tabulated by using simple statistical tools and presented with the help of
Pie Charts, Bar-diagrams etc. The result of the study shows that the NTFPs demand of EMI HU is
increasing by 337.98% annually and the selling trends of herbal product of EMI is 248.21%.
85% of cultivators were motivated for MAPs cultivation due to the market assurance by EMI HU,
and gained an average income of NRs 6888.88. So it can be concluded that Network Marketing is
taking lead in the promotion of NTFPs by exploring markets, cultivation, and quality upgrade by
processing.
It is recommended that existing policy should be revised and Network marketing policy should be
brought, provide trainings, awareness program, technical and financial assistance for the proper
management and cultivation of potential NTFPs. Network of concerned stakeholder (public, private
and GoN) is needed for promotion of NTFPs in local, national and international level.
Keywords: Network Marketing, Non Timber Forest Products (NTFPs), Promotion.
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TRIBHUVAN UNIVERSITY
INSTITUTE OF FORESTRY
HETAUDA CAMPUS
Hetauda
Date: … September, 2008
LETTER OF ACCEPTANCE
The project paper entitled "Role of Network Marketing in Non Timber Forest
Products (NTFPs) Promotion" carried out in selected Company Easy Multitrade
International (p) Ltd. and in its working area in seven major cities of Surkhet,
Banke ,Rupendehi, Kaski ,Kathmandu, Chitwan and Makawanpur District was
studied and compiled by Mr. Naina Bahadur Tamang under my supervision.
I am pleased to accept this project paper, submitted as a partial fulfillment of the
requirements for the degree of Bachelor of Science in Forestry.
(………………………………)
Shukhdeo Chowdhury
Associate Professor.
IOF, Hetauda
4
LETTER OF DECLARATION
I hereby declare that this project paper entitled "Role of Network Marketing in Non
Timber Forests Products (NTFPs) Promotion" (A Case study of Easy Multitrade
International (p) Ltd) in seven major cities of Surkhet, Banke, Rupandehi, Kaski,
Kathmandu, Chitwan and Makawanpur District in Nepal is my own work except
where acknowledged. I have not submitted it or any part of it to any other academic
institution for any educational degree.
....................................................
Tamang, Naina Bahadur
B.Sc., Final Year (2061/065)
Institute of Forestry
Hetauda Campus, Hetauda
5
ACKNOWLEDGEMENT
I would like to acknowledge gratefully to my advisor Mr. Shukhdeo Chowdhury for his valuable
advice, encouragement, timely suggestions and guidance throughout the study period without which
it would be very difficult for me to complete this study.
I am indebted to EMI Nepal, for granting financial support to conduct this study. I am deeply
thankful to Mr. Dipak Thapa, M.D. of EMI and all directors of EMI; Mr. Balaram Subedi; Mr.
Yubraj Shrish, Mr. and Mr. Arjun Pandey M.D. of EMI HU for their kind cooperation, support and
valuable suggestions during the study.
My sincere gratitude goes to the all EBOs members and Leaders of EMI ; traders of NTFPs;
cultivators of NTFPs, all members of EMI Jadibuti Production Cooperative of Birendranagar
Shurkhet; for their kind hospitality and for sharing their knowledge and information despite their
busy schedule.
I am thankful to Mr. Rudra Gaha, Surendra Shahi, Mrs. Rama Vandari, Miss Sanju Kauchha, Miss
Gita Neupane, Mr. Tara Gaha, Mr. Pravat Acharya, Mr. Jayaram Subedi, Mr. Basu Neupane; Mrs.
Laxmi Giri, Mrs. Narayani Subedi; Mr. Mohan B.K, Mr. Chandara Kanta Subedi; Mr. Kashi Ram
adhikari, Pabitra Subedi, Mr. Nama Regmi. Miss Chandrakala Chhetri, Mrs. Kamala Chhetri, Mr.
Aman Shrestha, Mr. Sunil Shrestha, Mr. Tulashi Sedhain, Mr. Jivan Tamang, Mr. Bhakta Bastola,
Mr. Bishowraj Pandit, Mr. Arbind Chaudhary, Miss Shusila Malla, Miss Nisha Rana, and Miss Jyoti
Gurung for their untiring help and encouragement during my research work.
My sincere thanks goes to Mr. Milan Dhungana, Mr. Puspa Raj Shrestha, Mr Laba Guragain, Mr.
Bishnu Pd.Dhakal, Mr. Shri Ram Sharma, Miss Shrota Shrestha and all my colleagues of IOF,
Hetauda for their encouragement and help during study period and report writing.
Last but not the least, I am grateful to my mother Mrs. Laxmi Maya Tamang whose love and
inspiration is responsible for my present status.
Mr. Naina Bahadur Tamang
Institute of Forestry
Hetauda Campus
6
TABLE OF CONTENTS
ABSTRACT.......................................................................................................................I
CERTIFICATE OF ACCEPTANCE............................................................................II
DECLERATION............................................................................................................III
ACKNOWLEDGEMENT.............................................................................................IV
TABLE OF CONTENTS................................................................................................V
ACRONYMS..................................................................................................................VI
TABLES……………………………………….………………………………………VII
LIST OF FIGURES.....................................................................................................VIII
LISTOF MAPS................................................................................................................IX
CHAPTER I: INTRODUCTION....................................................................................1
1.1 BACKGROUND............................................................................................................ 1
1.2 RATIONALE................................................................................................................ 3
1.3 OBJECTIVES................................................................................................................ 5
1.4 LIMITATIONS OF THE RESEARCH..................................................................................6
1.5 SIGNIFICANCE OF THE STUDY...................................................................................... 6
1.6 ASSUMPTIONS..............................................................................................................6
1.7 ORGANIZATION OF THIS REPORT………...................................................................... 7
CHAPTER II:LITERATURE REVIEW....................................................................... 8
2.1 CONCEPT OF NETWORK MARKETING........................................................................... 8
2.2 PREVIOUS RESEARCH FINDINGS................................................................................... 9
2.3 NTFPs POLICY IN NEPAL……………………………………………………… 11
2.3.1 Master Plan for Forestry Sector………………………………………........…11
2.3.2 Tenth Five Year Plan…………………………………………………………11
2.3.3 National Conservation Strategy………………………………………………12
2.3.4 Nepal Environmental Policy and Action Plan………………………………..12
2.3.5 National Bio-diversity Strategy………………………………………………13
2.3.6 Forest Act 1993 and Forest Regulation 1995………………………………...13
2.4 INTERNATIONAL POLICIES AND LAWS……………………………………..14
2.4.1 Convention on Biological Diversity, 1993…………………………………...14
2.4.2 Trade Related Intellectual Property…………………………………………..14
2.4.3 Convention on International Trade in Endangered Species of Wild Fauna and Flora
(CITES), 1973…………………………………………………………………………...15
2.5 POLICY RELATED TO NETWORK MARKETING……………………………..15
2.5.1 THE DIRECTIVE FOR NETWORK MARKETING -2064……………………..15
CHAPTER III: DESCRIPTION OF THE STUDY AREAS AND COMPANY.......16
3.1 COUNTRY BACKGROUNDAND DESCRIPTION OF STUDY AREAS ………16
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3.1.1 Banke………………………………..................................................................19
3.1.2 Surkhet…………………………………….......................................................20
3.1.3 Rupandehi………………..................................................................................20
3.1.4 Kaski..................................................................................................................22
3.1.5 Kathmandu ……………………………………………....................................22
3.1.6 Chitwan……………………………………………………………………… .24
3.1.7 Makawanpur………………………………………………………………… 25
3.2 DESCRIPTION OF THE STUDY COMPANY..................................................... 27
CHAPTER IV: METHODOLOGY...............................................................................28
4 .1 INTRODUCTION………………………………………………………..............28
4.2 Broad outline of the research……………………………………………...............28
4.3 Study area and company selection ………………..…………………….............. .29
4.3.1 Study area selection criteria…………………………………………….......29
4.3.2 Company selection criteria………………………………………………....29
4.4 Nature and sources of the data……………….........................................................29
4.5 DATA COLLECTION ………………………………...........................................30
4. 5. 1 Primary data collection……………………………………...................30
4. 5. 2 Secondary data collection………………………………………...........30
4.6 Sampling design…………………………………………………………………...30
4.7 DATA ANALYSIS…………………………………………………………….. ...31
CHAPTER V : RESULTS AND DISCUSSIONS 32
5.1 Characteristics of the respondents……………………………………...............32
5.1.1 Ethnicity…………………………………………………………………....32
5.1.2 Types of the respondents…………………………………..……................32
5.1.3 Gender of the respondents…………………………………………………32
5.1.4 Occupation…………………………………………………………………33
5.1.5 Education…………………………………………………………………...33
5.2 Contribution of EMI Nepal in the promotion of NTFPs………………............33
5.2.1 Contribution of EMI in value addition of Potential NTFPs………………..33
5.2.2 Research and development………………………………………………. ..34
5.2.3 Role of EMI in Market Exploration………………………………………..35
5.2.3.1 Demand of NTFPs……………………………………………….35
5.2.3.2 Supply of Herbal products……………………………………….36
5.2.4 Resource conservation and Promotion……………………………………. 38
5.2.5 Cultivation Status of MAPs through EMI……………………………........38
5.3 List of NTFPs used by EMI HU…………………………………………......... 40
6. CONCLUSIONS AND RECOMMENDATIONS…………………………………41
6.1 CONCLUSIONS.............................................................................................. 41
6.2 RECOMMENDATIONS...................................................................................41
REFERENCES................................................................................................................43
ANNEX I QUESTIONNAIRE
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ANNEX II PHOTO PLATES
ANNEX III Purchasing quantities of NTFPs of EMI HU of Last Three Year
ANNEX IV Selling trends of EMI
ACRONYMS
CF
Community Forest
DFO
District Forest Officer/Office
DOF
Department of Forest
EBOs
EMI Business Owners
EMI
Easy Multitrade International
EMI HU
EMI Herbal Udhyog (Industry)
FAO
Food and Agriculture Organization
GDP
Gross Domestic Product
GoN
Government of Nepal
Ha
Hectare
HMGN
His Majesty's Government of Nepal
HHs
Households
ICIMOD
International Centre for Integrated Mountain Development
IGAs
Income Generating Activities
INGO
International Governmental Organization
Kg
Kilogram
MAPs
Medicinal and Aromatic Plants
MFSC
Ministry of Forest and Soil Conservation
MPFS
Master Plan for Forestry Sector
msl
mean sea level
NGO
Non-Governmental Organization
No
Number
NRs
Nepalese Rupees
NTFPs
Non-Timber Forest Products
SAFTA
South Asia Free Trade Agreement
WHO
World Health Organization
9
WTO
World Trade Organization
VDC
Village Development Committee
LIST OF TABLES
Table-1 Major features of the five physiographic regions
Table 2: Land Utility of the Banke District
Table 3: Land use of the Surkhet district
Table 4: Land use types found in Rupandehi district
Table5: Land use of Kathmandu Valley
Table 6: Land use type in Chitwan district
Table 7: Land Utility of the Makawanpur District
Table 8: Frequency and percentage of types respondents
Table 9: Gender Percent age of the respondent
Table 10: Main occupation of the respondents
Table 11: Educational status of the respondents
Table 12: Quantities of NTFPs purchased by EMI HU Table
Table13: Increments of income of EMI through selling of Herbal Products
Table 14: Cultivation status of Tulasi in 2064/065
Table 15: List of NTFPs used by EMI Herbal Udhyog
LIST OF FIGURES
Fig 1: Difference between Traditional Marketing model and Direct selling model
Fig 2: Bar diagram for purchasing trend of EMI HU.
Fig 3: Income of EMI by selling Herbal products (In 00,000 NRs)
Fig 4: Reason behind cultivation of MAPs.
LIST OF MAPS
Map1: Map of Nepal
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CHAPTER-1
INTRODUCTION
1.1 BACKGROUND
Network Marketing is a form of direct sales. Network Marketing, also known as Multi-Level
Marketing (MLM), is a legitimate business model that uses direct selling and relationship referrals as
a method of selling a company’s products or services. In typical networking model, individual
associates (often referred to as distributors) essentially contract or act like a franchisee to the parent
company and are paid a commission based on the volume of product or services that are sold as a
result of their own organization's efforts. In summary it is simply an alternative distribution model of
delivering goods and service out into the market place. (www.networkmarketing.com ;
history+business+school.com)
Although the history of network marketing dates back to the 1940’s it is only now that the industry
has come of age. Network marketing has now grown to the point where it is creating more
millionaires today than the dot com boom industry did before the bubble burst.
Instead of using the traditional method of manufacturing and delivering their products, network
marketing companies choose to bypass the middleman, selling direct to the customer. They use
referrals and a word-of-mouth approach to develop their customer base as opposed to a large
advertising budget and as such the money that would normally go to the middleman and advertising
can now be used to reward business operators (distributors) a commission for helping the company
to make a sale.( See following diagram.)
Fig 1. Difference between Traditional Marketing model and Direct selling model
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In Nepal there are more than 35 network marketing companies (foreign and Nepali) selling different
kinds of products and services: such as daily used goods to travel package. Easy Multi-trade
International, Herbo International, Cristal Vision, Grace etc are selling the Herbal products to its
consumer by network marketing. The herbal products are prepared by the extract of Non Timber
Forest Products (hereafter NTFPs) and raw materials of its.
NTFPs can be defined as all goods for commercial, industrial or subsistence use derived from the
forest other than the wood i.e. everything except timber and fuel wood. NTFPs include medicinal
and aromatic plants, spices and condiments, best fibers, wild edibles, rattans, canes, bamboo and
lianas.
According to Edward 1996, NTFP is defined as “All the products other than timber, fuel-wood and
fodder are classified as Non-timber forest products. These products could be obtained from trees,
shrubs, herbs, climbers etc. They are further classified into two categories and they are high value
products, from high altitude and low value products from lower altitude.
NTFPs have the great potentiality for contributing to income and employment generation to the
people. People may be employed for the collection, processing as well as marketing and cultivation
of NTFPs.
The role and contribution of NTFPs are crucial and more amongst the rural communities of
developing countries. Some 80% of the population of developing countries depends on NTFP for
their primary health, nutritional needs and income generation. (FAO, 1995). This is particularly true
to a country like Nepal, where alternative economic opportunities are limited. The increasing
commercial demand for the NTFPs found in Nepal presents an economically, environmentally and
socially viable means of assisting rural communities in controlling the transition from subsistence to
cash economy (ICIMOD, 1998).
Non Timber Forests Products (NTFPs) are same of vast range of forest majority of which avail not
only to rural Nepalese but also to the urban elites. Medicinal and Aromatic Plants (MAPs) of
Himalaya are invaluable resource not only for local communities and nation but also for global
community at large.
The last decade witnessed an increase interest and activities concerning Non Timber Forests
Products (NTFPs) in conservationists, foresters, development workers, and group of indigenous
people and they promoted numerous activities aimed at promoting NTFPs' use and conservation as a
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means of improving the well being of rural population and at the same time conserving existing
forests (Dutta I.C.; 2007; NTFPs of Nepal.)
The promotion of the NTFPs means upgrading the qualities of its extracts by processing; the value
addition of the products; exploration of new market opportunities, encouragement in cultivation and
resource conservation of the non- timber forests products.
1.2 RATIONALE
NTFPs have a great role to enhance the economic condition of the people living in the rural area of
Nepal as a good source of income generating medium but due to the lack of knowledge about its
importance and uses, the rural people are facing many problems. The growing population,
unemployment and overuse of the resources without scientific management and marketing are the
major problems. Lack of domestication and scientific cultivation, most of the valuable medicinal
plants and other NTFPs are threatening for extinction. Fragmentation of natural forest patches,
uncontrolled grazing, grass cutting and forest fire to some extent are leading elements of NTFPs
extinction.
Nepal gets a huge amount of revenue each year from the trade of medicinal and aromatic plants
(Kanel, 1999). However, it is found in many studies that the rural people are not getting major
portion of benefit, instead the middlemen are enjoying most of the benefits at the cost of the local
people (Olsen, 1997; CECI, 1999 cited in Karki, 2000).
There is the lack of the incentives for the primary producer. Primary producers get only 32% of the
final price of the NTFPs (Edwards, 1996). There are many barriers both formal and informal in trade
of forest products. The present marketing system does not provide a fairshare of profits to all
stakeholders and to local harvester in particular. The current distribution of benefits is uneven with a
high return for foreign stakeholders and a low return for national stakeholders.
The marketing infrastructure in rural areas is poorly developed, local harvester and traders do not
have access to reliable market information.
Poor market intelligence, distorted regulatory
environment and imperfect markets are jeopardizing local livelihood and biodiversity. This makes it
difficult for collectors and local traders in Nepal to increase their revenue and reduces the total
output generated by the sector. Improved market intelligence can enhance the local community's
bargaining power for their products (ANSAB, 2003; cited in Sapkota 2007).
13
Nepal has not been able to adequately utilize NTFPs.
The regulatory policies are related to
harvesting collection, transport and processing of NTFPs in Nepal. Unsustainable harvesting and
collection of NTFPs from wild is a serious issue (Kanel, 2000).
It has been observed that rural people look upon forest for getting short term profit rather than
waiting for long time timber /wood products. This attitude of people address promotion of NTFPs
not only for obtaining immediate needs, but also providing gainful employment, revenue and new
opportunities for entrepreneurship.(Subedi; Thakur 2007).
The rapid expansion of the commercial use of NTFPs at national, regional and international levels
tends to subsume the local socio-cultural importance of these resource, which have clear socioeconomic impacts; leaving seemingly little solution to their sustainable use than to engage in
unsustainable commercial harvesting in response to in creasing
market and commercial
forces.(Dutta I.C. 2007)
Today some network marketing companies also promoting the NTFPs especially Medicinal and
Aromatic Plants (hereafter MAPs). There is the emerging scope of NTFPs in Network marketing
business, because the history of network marketing has stood the test of time and over the past 50
years has proven itself to be a successful distribution model and home-based business opportunity.
So the network marketing is another kind of option for promoting NTFPs. In traditional marketing
system the primary producer and primary consumer not so benefited as in network marketing.
Where referral based marketing; mouth to mouth advertisement is done and the herbal products are
distributed directly from company to end consumer. The distributors get commission, when products
are referred by him.
Government of Nepal (GoN) has just been convinced over the importance of network marketing
business so a “Directive for Network Marketing Business-2064” has recently come in effect for
managing network business in Nepal.
The network marketing business is globally accepted just from 2000A.D. More than 60 million
people going to build career in network marketing, and more than 115 Billions U$ is total turn over.
Nepal also delayed in the management of Network Marketing as in development; Economy and
Industrialization. This business will be the opportunity for Nepal if it is managed according to
uniqueness of the country, potentiality, needs of customer and national economy. Not only for
millions of Nepalese who work foreign country by saying there are no opportunity in Nepal, other
numerous unemployed and semi employed citizens will get employment opportunity.
14
Financially self-dependent youths and civil society will contribute in nation development and
industrialization. By developing the industries which based on national unique resource and
properties such as in NTFPs can develop self-dependency of the people. We can export our products
globally by Nepalese who are staying and working there, and will make our economy strong and
progressive. To raise living standard of Nepali people and for economic growth/progress of the
country the network marketing business will support certainly. (Subedi, Balaram; FOUR YEAR OF
EMI 2064)
Nepal has been the member of World Trade Organization (WTO) and South Asia Free Trade
Agreement (SAFTA) and the NTFPs of Nepal are potential products for the purpose of the
Marketing in the national and international markets. Then Network Marketing is the way to grab the
opportunities; because it addresses directly to the consumer. Thus it was essential to study about the
role of Network Marketing in NTFPs promotion to draw the attention of concerned authority in
order to plan implement manage the favorable market condition; policy for the promotion of
potential NTFPs through Network Marketing.
The output of the study will probably provide a feedback to the Network companies; the officials
and the general public. The recommendations will work as guidance for the Network marketing
companies for better promotion of NTFPs and using those as a source of making fortune by boosting
the business. Besides this, it will also help the planners to worker of the concerned sector on
promotion of non timber forest products.
1.3 OBJECTIVE
General objective: To analyze the role of network marketing in NTFPs promotion especially in the
sector of cultivation, market exploration, value addition through processing and branding;
Specific objective:

To find out the quantities of NTFPs purchasing by EMIHU.

To explore annual increment rate of selling of herbal products of EMI.

To asses the status of cultivation of MAPs through EMI HU.

To identify the role of EMI in value addition of potential NTFPs.

To recommend better option for promotion of NTFPs through network marketing business
15
1.4 LIMITATIONS OF THE RESEARCH
The research entitled "Role of Network Marketing in NTFPs Promotion" were conducted within
Nepal, so that the findings of the study reflected the context of Nepal. The topic seemed so broad
and it must be carried out into international level. The NTFPs covers different products of the
forests, but here it means MAPs or extracts that are used by EMI HU for production of Herbal
products.
It is a case study so it has limited scope.
Other limitations were the funds, time and limited man-power in my research work and there are no
sufficient documents of NTFPs markets prospects/marketing/promotion and no documentation of
Network Marketing related to NTFP promotion.
1.5 SIGNIFICANCE OF THE STUDY
The research study on the topic of "Role of Network marketing in NTFP Promotion" will contribute
to the different stakeholders and such as policy makers, network marketing company, NTFP
promoter and upcoming researchers for further investigation about Networking marketing, NTFPs
market potentialities.
This study was carried out first time in Nepal; so it has its own importance and it will be a milestone
in the documentation of Network Marketing which is promoting the Herbal products: by a
recognized Institute (IOF, Hetauda, Nepal) and it will guide also the EMI Nepal, Nepal's other
Network Marketing companies and policy maker and upcoming researcher in the field of Network
Marketing and NTFPs' market prospects and challenges.
This study explored the topics for discussion among academician, scholars, traders, policy makers.
The finding of the research is believed to provide a new direction of thinking for planners, policy
makers, resource manager and general public to promotion of the NTFPs through network marketing
which possesses strong contribution to national economy.
1.6 ASSUMPTIONS
Descriptive hypothesis
The annual sales of Herbal products of EMI HU are increasing.
16
Purchase rate of extract and raw materials of NTFPs by EMIHU is increasing.
The farmers/cultivators are cultivating MAPs for EMIHU.
The traders of NTFPs are supplying the NTFPs in increasing rate to EMIHU.
Relational hypothesis
There is a relation between the increase in the sales of EMI Nepal and promotion of NTFPs.
There is a relation between the cultivation of MAPs and demands of the EMIHU.
1.7 ORGANIZATION OF THIS REPORT
This research investigates the role of Network Marketing in promotion of NTFPs. This research
report is divided in to six chapters. The next chapter sets up the context of Network Marketing and
review of literature related to NTFPs. Chapter three presents a general overview of the study areas.
Chapter four outlines and focuses on research methodology. The fifth chapter presents results and
discussion. Finally chapter six summarizes conclusion and recommendations.
17
CHAPTER- 2
LITERATURE REVIEW
2.1 CONCEPT OF NETWORK MARKETING
Network marketing (or multi-level marketing) continues to be one of the fastest-growing forms of
business in the world. It currently accounts for over $80 billion in annual sales. There are over 25
million people actively involved in an estimated 1,500 network marketing companies worldwide.
(www.Neoquest.com; 2006)
Network marketing is not a "get-rich-quick" scheme and should not be confused with illegal pyramid
schemes. Rather, it is a legitimate and legal business system for the marketing and distribution of
products and services. It is simply a network of independent sales representatives that sell products
and services from the supplier (or manufacturer) directly to the end-user (or consumer). This trend in
direct-selling has grown in popularity since the 1950's and shows no signs of slowing.
(Neoquest.com)
Network Marketing/MLM has been recognized as a legitimate form of business for over 40 years by
the U.S. Government and most other countries around the world.
According to the Direct Selling Association (DSA) over 13 million people in the U.S. are working in
the network marketing / direct selling industry. Traditional sales method companies such as ColgatePalmolive and the Gillette Company have Network Marketing subsidiaries. Rexall Drug is now
using Network Marketing .Network marketing companies such as Melaleuca outperformed Liz
Claiborne, Mary Kay is bigger than Johnson & Johnson, Amway is bigger than Revlon, and Avon is
bigger than Estee Lauder. (2007 Globalnetworker.com BwDec2007 Theme)
The history of network marketing has stood the test of time and over the past 50 years has proven
itself to be a successful distribution model and home-based business opportunity. The industry itself
is now currently being endorsed by many business leaders as a proven system for anyone who
wishes to achieve financial success. It is not surprising that network marketing is now one of the
fastest growing industries of all time with an estimated 150 000 people joining the industry every
single week.
Usually the products are conversationally marketed to friends and/or family members and used
personally. And because of computer and delivery technologies most network marketing will drop
18
ship orders any where. Network Marketing is dramatically different from traditional business even
direct sales. (Randy 2004)
The Network Marketing business has evolved virtually overnight without fanfare or advertising and
could eventually become the largest business system of them all. Its success relies on the referral
based distribution system and is driven almost entirely by the enthusiasm of its member. It is one of
the most dynamic opportunities ever created by the mind of man. (Allan Peace, 2001)
2. 2 PREVIOUS RESEARCH FINDINGS
Nepal is a home for 7,000 species of plants of immense values which comprises of tall trees, small
shrubs, herbs, climbers, flowers, orchids, grasses, mushrooms and scores of other species
composition (MFSC, 1988). Out of them, 1,624 species are of ethno-botanical importance (Shrestha
et al., 2001). It is reported that the flora of Nepal contains about 1,000 economic plant species. These
include 71 species of fiber yielding plants, 440 species of wild food plants, 30 species of fodder trees
and 50 species used as fish poison (Malla and Shakya, 1984).
The Master Plan for Forestry Sector (MPFS), 1988 provides policy direction to forestry sector. The
plan allocates 47% of poverty budget on community forestry. The Forest Board Industrial
Development Plan of MPFS emphasizes creation of jobs and processing facilities as well as
cultivation of wildly collected medicinal plants (Subedi, 2003).
Master Plan for Forestry Sector (MPFS, 1988) defined minor forest product as all forest products
other than wood, i.e. every thing except timber and fuel wood.
In line with MPFS 1988, Forest Act 1993, Forest Regulation 1995 and their amendments recognize
forest user group (FUG) as self governing and autonomous entities and entrust them with the
management, control, utilization and sale of community forest resources including NTFPs (Subedi,
2003).
While recognizing the role of NTFPs in poverty alleviation and sustainable community
development, especially in High mountain where other opportunities are severely lacking, Five Year
National Plans especially the Tenth Five Year Plan have gradually been putting more emphasis on
the management of NTFPs for generating income and employment at the local level (Subedi, 2003).
Value addition changes the outlook of the products. It is very important to add value to NTFPs for
the sustainable livelihood of the rural country like Nepal. Value addition provides an added benefit
to the local economy and help reduce the over exploitation and degradation of the natural resource
19
for the want of more money during festivals. If small quantity after value addition fetches good
amount of money, the collectors understand the value of their resource base and want to conserve the
resource as well. Thus the value addition helps in sustaining the resource base NTFPs as well as the
local economy. The enterprise oriented community forestry management should be promoted not
only for poverty reduction but also for conservation of forest and bio diversity (Karna, 2004).
NTFPs are receiving increasing importance for their role in sustaining rural livelihood and needs for
promoting sustainable management of the resources. NTFPs sub sector has great potential for
improving the socio economic status of local people as well as increasing national income and
employment (Sharma and Das, 2004).
The forestry sector contributes about 15% of the GDP to the national economy while revenue from
NTFPs including medicinal herbs and aromatic plants is estimated over 4% of that GDP (Edwards,
1996). In certain rural areas, these NTFPs alone provide up to 50% of the family income (HMGN,
1999).
Shrestha (2002) presents a data that 250,000 species of flowering plants already documented in the
world. Out of these, 21,000 are listed in the World Health Organization (WHO) literature as
medicinal and aromatic plants. Among them, only 5,000 species have been scientifically
investigated.
NTFPs can contribute to improving livelihoods, household food security & nutrition, through the
generation of additional employment and income, NTFP based enterprise development, and foreign
currency earnings. They can also support biodiversity and other conservation objectives. (FAO, 1995
cited in Subedi & Ojha, 2002).
Human's dependence on plants for its existence dates back to the beginning of the human race. In
Nepal also a large segment of population relies upon traditional systems of medicine whose main
source is NTFP. For many rural people in Nepal the collection and selling of NTFPs represents one
of very few source of cash income (Edward, 1996). Edward (1996) categories NTFP in Nepal into 3
major groups; those used for subsistence, those used for industries inside the country and those that
are exported. The role and contribution of NTFP are crucial and more so amongst the rural
communities of developing countries. This is particularly true to a country like Nepal, where
alternative economic opportunities are limited.
The present day trading practices in Nepal have recognized about 100 species of NTFP as
commercially important (Rawal, 1995). The commercial value of remaining ones i.e. 600 species is
20
yet to be known. Out of 75 districts, 58 districts have been gathering revenue from NTFP (DOF,
1999).
In Nepal about 10,000-15,000 tons of NTFPs are harvested & traded (about 90% as raw material) to
India & overseas markets comprising of more than 100 species that has great contribution to national
economy. There is an income of About US $ 8.6 millions per year by the nation from NTFPs which
is about six times higher than the official value of Nepal’s timber exports to India (Edward, 1996).
The Tenth Five-Year plan (2003-2007) has emphasized on the research and development of NTFPs
to create employment by promoting IGAs.
2.3 NTFPs POLICY IN NEPAL
2.3.1 Master Plan for Forestry Sector (1988)
Recognizing the need for a comprehensive long term plan to meet the basic needs of the people,
Master Plan for Forestry Sector (MPFS) was prepared in 1988 which presents a comprehensive
strategy for 21 years for management of forestry sector in Nepal.
It has mainly four development imperatives: (a) Satisfaction of basic needs including medicinal
herbs (b) Sustainable utilization of forest resources (c) People's participation in decision making and
benefit sharing, and (d) Socio-economic growth. Translating this policy into action, it has
emphasized on increasing production of forest products including NTFPs through the promotion of
agro forestry, community and leasehold forestry and research in NTFPs. Medicinal and aromatic
plants and other non-timber forest products are among six primary programs formulated in the plan
(MPFS, 1988).
2.3.2 Tenth Five Year Plan (2003-2007)
The sole objective of the Tenth Plan is to achieve a remarkable and sustainable reduction in the
poverty level in Nepal from 38% of the population at the beginning of the period to 30% by the end
of the Tenth Plan, and to further reduce the poverty ratio to 10% in about fifteen years' time. Taking
the sustainable development of forest and watershed component into account, main objective of
Tenth Plan is to support the national goal of poverty reduction through management of forest and
watershed area and conservation of medicinal plants and biodiversity as well as creating
21
employment opportunities based on forest entrepreneurship by adopting people's participatory
system.
Major policy statements related to NTFPs/NTFPs in the Tenth Five Year Plan are;
•
Research and development of plant resources shall be carried out keeping in view the
development of non-timber forest products.
•
NGOs, CBOs and private sector shall be inspired for extensive development of NTFPs.
•
NTFPs development program will be incorporated with community forestry, leasehold forestry
and integrated soil and watershed conservation and management and will be implemented.
•
Forest Product Certification shall be carried out for making forest product based business
competitive.
•
For sustainable development of medicinal plants, long term planning will be prepared and
national development program will be conducted.
•
National Medicinal Plants Development Committee (NMPDC) will be formulated at central
level for planning, implementation and co-ordination.
2.3.3 National Conservation Strategy (1987)
The National Conservation Strategy highlighted the necessity to establish appropriate policies,
regulation and management approaches to ensure the sustainable extraction of medicinal plants. The
NCS, prepared in 1987 in collaboration with IUCN, has been in the implementation phase since
1988.
The basic objectives of NCS are:
•
To satisfy the basic material, spiritual and cultural needs of the Nepalese people.
•
To ensure the sustainable use of land and renewable resources, to preserve biological diversity,
and
•
To maintain ecological and life support systems.
2.3.4 Nepal Environmental Policy and Action Plan (NEPAP)
NEPAP I (1993) is one of the major NG's environmental policies to manage efficiently and
sustainably natural and physical resources including forest and rangeland resources. It recommended
that forestry researchers that address the utilization of lesser-known forest species could include their
22
use as a resource for NTFP. NEPAP II (1998) is the first policy document to recognize as a source of
income in rural communities; it recommended that community owned land that is suitable for
purposes other than forestry is utilized under community management for the production of NTFP
resources. It has three main components that includes :
•
Immediate follow-up to solve problems pertaining to collection, marketing and related
concern.
•
Cultivation of MAP
•
Development of industries based on NTFPs and other NTFPs.
2.3.5 National Bio-diversity Strategy (NBS), 2002
NBS states that Nepal has a wealth of non timber forest products because of its diverse ecosystems.
The main components of NTFPs programs, in accordance with NBS, include:
•
Immediate measures to solve problems regarding collection, marketing and related concerns
•
Cultivation of medicinal and aromatic plants and other selected NTFPs; and
•
Development of industries based on medicinal and aromatic plants and other NTFPs.
2.3.6 Forest Act 1993 and Forest Regulation 1995
Prior to the Forest Act 1993, Collectors could harvest all medicinal and aromatic plants, except for
Yarsagumba, from the areas north of the Mahabharat range without permit or license. The Forest
Regulation of 1995, enforced in accordance with the Forest Act 1993, categorized a number of
NTFPs requiring license for their collection.
Collection permits have to be obtained from the DFO for the collection of NTFPs from the
government forests or in pastureland. Transport/export permits of unprocessed NTFPs have to be
obtained from the DFO. The Department of Plant Resources issue export permit for the processed
products of those plant species that are banned to export in unprocessed form. The cottage industry
department issues license to establish a micro-enterprise.
There is a ban on:
•
Collection, use, sale, distribution and export of the following species:
1. Panchaule (Dactylorhiza hatagirea)
2. Bark of Okhar (Juglans regia)
23
3. Kutki (Picorhiza scrophulariiflora)
•
Export to foreign countries and without processing in native country (Nepal)
1. Jatamansi (Nardostachys grandiflora)
2. Sarpagandha (Rawolfia serpentina)
3. Sugandhakokila (Cinnamomum glaucescens)
4. Sugandhawal (Valeriana wallichii)
5. Jhyau (Parmelia spps.)
6. Silajit (Organic exudate)
7. Talis Patra (Abies sepctabilis)
8. Yarsa Gumba (Cordyceps sinensis)
9. Lauth Salla (Taxus baccata)
2.4 INTERNATIONAL POLICIES AND LAWS
2.4.1 Convention on Biological Diversity, 1993
CBD, 1993 has influenced on the aspects of environmental policy, objectives and legislation in
Nepal. Nepal ratified Convention on Biological diversity in 1994. The major objectives of the
convention are:
•
The conservation of biodiversity
•
The sustainable use of its components
•
The fair and equitable sharing to the benefits arising from the use of genetic resources.
2.4.2 Trade Related Intellectual Property (TRIP)
The TRIP agreement adopted in 1994 in the GATT Uruguay Round set a milestone on the system
towards the privatization of living matter.
It puts developing countries that are members of the World Trade Organization (WTO) under
pressure to protect plant varieties.
24
2.4.3 Convention on International Trade in Endangered Species of Wild Fauna and Flora
(CITES), 1973
Nepal ratified CITES in 1975. The main objective of the convention was to control and regulate
illegal trade in international markets. Plants listed in the CITES are cited in Appendix I, II and III.
2.5 NETWORK MARKETING POLICY
2.5.1 NETWORKMARKETING BUSINESS DIRECTIVE, 2064
Based on Consumer Protection Act 2054 and Consumer Protection Regulation 2056 the
Directive for Network Marketing Business-2064 came into effect by Government of Nepal in
2064 B.S. for managing, regulating and controlling the Network marketing Business.
It clearly defined the network marketing business and illegal pyramid scheming.
It enforced company to be more responsible to customer.
It focused on preparation of Central Monitor Committee under, D.G. of Commerce department, and
District level Monitor Committee, under chairman of elected authority by Industry, Trade and
Supply Ministry. There are provisions of that, the network marketing company should be registered,
should have permission for business, Bank Guarantee paper of amount 2.5millions NRs should be
submitted, the Terms of reference which should be followed by business promoter.
25
CHAPTER- 3
DESCRIPTION OF THE STUDY AREA AND COMPANY
3.1 COUNTRY BACKGROUND AND DESCRIPTION OF STUDY AREAS
The kingdom of Nepal, a landlocked country, lies between China on the north and India on the
south, east and west. The country covers an area of 147,181 sq. km. and its shape is roughly
rectangular. It is located between the latitude of 26022’ to 30027’ N and the longitude 80004’ to
88012’ E. The average east-west length of the country is 870 km. parallel to the Himalayan axis and
the average north-south width is 145 sq km. The altitude ranges from 70 m. above mean sea level in
the southern Terai to 8848 m. at the summit of Mount Everest, the highest point on the earth surface.
Nepal, a country of amazing extremes, is the home of the world’s highest mountains, historic cities
and forested plains where the lordly tigers and the greatest one horned rhinoceros trundle at ease
(Dhital, 2002 cited in Humagain, 2003). Legally recognized people centered community forestry
and conservation of bio-diversity by establishing a good network of protected areas covering 18% of
the total area of the country are the main highlights of Nepal’s nature conservation (Humagain,
2003).
Nepal is divided into five broad physiographic regions viz Terai, Siwalik, Mid-hills, High Mountains
and High Himalaya which accommodate six different bio climatic zones. As a result, it represents
dense tropical forest of the Terai in the south to Sub tropical and lower temperate, upper temperate,
broad leaved and coniferous forest in the middle region to sub alpine and alpine in Himalayas.
26
Table-1 Major features of the five physiographic regions of Nepal
Main Items
Terai
Siwaliks
Middle
Mountains
Phyllite,
Quarzite,
Mica schists
Geology
Quaternary
alluvium
Elevation
60-300 m.
Tertiary
sandstone,
Silt stone,
shale,
conglomerates
200-1500m.
800-2400 m.
Climate
Subtropical
Vegetation
Sal +
mixed
hardwoods
Crops
Rice,
Maize,
Wheat,
Mustard,
Sugarcane,
Jute,
Tobacco,
Cotton, Tea
Horticulture
Mango,
Litchi,
Jackfruit,
Imli, Palm
Sub-tropical
(warm
temperate at
higher zones)
Warm
temperate
(subtropical
at lower
zones)
Sal + mixed
Pine forest +
hardwoods +
mixed
pine forest
hardwood &
oak forest
Rice, Maize,
Rice, Maize,
Wheat, Millet, Wheat,
Radish,
Millet,
Potato,
Barley,
Ginger, Tea
Pulses,
Sugarcane,
Radish,
Potato,
Cardamom,
Ginger
Mango,
Mango,
Papaya,
Papaya,
Banana,
Banana,
Moringa
Orange,
Lime,
Lemon,
Peach, Plum,
Aegal,
Pommegrana
te
27
High
mountains
Gneiss,
Quartzite,
Mica schists
High
Himalaya
Gneiss,
Schists, Lime
stone, Tethys,
Sediments
22004000m
Warm to
cool
temperate
4000m. +
Fir, Pine,
Birch,
rhododendr
on
Oat, Barley,
Wheat,
Potato,
Buckwheat,
Yams,
Medicinal
herbs
Open meadows
+
Tundra
vegetation
Chestnut,
Walnut,
Apple,
Peach,
Plum,
Apricot
Alpine
or
arctic (snow 6
to 12
months)
Grazing
(June-Sep.)
Map 1: Map of study areas
28
3.1.1 Banke district
Geographical Information
Banke district lies in mid western development region of Bheri zone with an area of 2337 sq km. and
its headquarter is at Nepalgunj.
It is divided into 46 VDCs and 1 Municipality .The political boundary of the districts is Dang and
India's Baharaich districts in east, Bardia in the west, Salyan, Bardia and Dang in the north and India
in the south. It lies in between 270 51’ to 280 20’ N latitude and 810 29’ to 820 8’E longitude. Its
elevation ranges from 127m to 1236 m. Banke District consists of two major types of physiography,
viz; a Terai and Curia hills.
Land Utility of Banke district
Table 2: Land Utility of the Banke District
SN
Types
Area (Ha)
%
1
Forest Lands
113295
50.17
2
Agricultural Lands
92068
40.76
3
Other( Rocks, River, Lake)
20473
9.07
4
Total
225836
100
Source: Banke district Profile NPC/CBS (2061)
From table 1, it is cleared that the forest area of the district is 50.17% of total land. Similarly
Agricultural land is 40.76% ,Others (River, Lake, Rocks) is 9.07%.
Socio economic information of the district
According to Census 2001, there are living 385840 people in Banke district. Among them 198231
are male and 187609 are female. Most of the people are living in rural area about
The literacy rate is 57.8% and average life span rate is 61.41 Year.
Major crops produced in the agrilands are paddy, JAU, wheat maize, Oil seed and tobacco.
Similarly important business area of the districts are Nepalgunj, Kohalpur, Khajura,
Narainpur,Kusum and Chisapani.
29
Climate
Two types of climate tropical and sub tropical are found.The minimum temperature is 4.2 C and
Maximum temperature is 46 C. the relative humidity of the district is 71.4% and average air speed is
3 Km/Hr.
3.1.2 Surkhet district
Surkhet district lies in mid western development region. Its total area is 2451 Sq Km. Its head
quarter is in Birendranagar. Surkhet is home of 135929 Female and 133941 Male.
Table: 3 Land use of the Surkhet district.
S.N Land Use type
Area (Ha)
1
Forest
157687
2
Shrub land
33269
3
Agricultural land 48653
4
Water bodies
1899
5
Bare lands
7556
Total
249064
Source: NPC/CBS/DoF; Environment Statistics of Nepal 2006
3.1.3 Rupandehi district
Climate:
The district experiences tropical to sub-tropical type of climate according to the altitudinal variation.
Climatically, the year can be divided mainly into three seasons such as winter, summer and rainy
season. The maximum temperature recorded here is 42.4 degree Celsius and the minimum
temperature is 8.75 degree Celsius and average rainfall is 1391 mm (DDC, 2000).
30
Land Use:
Six major land use types have been found in Rupandehi district. Dominant land use type is
cultivation (60.21%) followed by forest (21.56%). A small portion is covered by Churia hills and
cliffs i.e. (0.29%) and river, river banks and grazing land covers around (8.02%)
Table: 4 Land use types found in Rupandehi district:
S.N. Land use Types
Area in (ha)
Percentage
1.
Cultivation
85122
60.21
2.
Forest
30484
21.56
3.
Grassing Land (Grassland)
8882
6.28
4.
River
2460
1.74
5.
Hills and Rocky cliff
414
0.29
6.
Settlements
5953
4.21
7.
Others
8052
5.71
141367
100
Total
Source: District Profile DDC Rupandehi.
Cultivation:
In Rupandehi district, area under cultivation comprises the highest compared to other land use types.
After the eradication of Malaria from Terai in 1960s, large scale migration from the hills and other
areas contributed to high settlements in the Terai.
The farmers chiefly grow paddy crops during the monsoon season. Sugar Cane also forms an
important cash crop in some parts of Rupandehi district.
Forest:
Rupandehi landscapes consists generally two types of forest one is natural forest and another is
plantation forest.
Sal Forest (Shorea robusta); Acacia catechu- Dalbergia sissoo forest and Other riverine forest are
major natural forests.
Plantation forest is situated inside the Lumbini Garden, private land and some community forest area
which is chiefly composed of Sissoo (Dalbergia sissoo).
31
Population & Community
According to National population census 2001, the total population of the Rupandehi district is
543302, of which 263680 Female and 279622 are male. Most of the people (90.09%) follow Hindu
religion, followed by Islam (Muslim) (8.21%), and Buddhist (1.54%).
3.1.4 Kaski district
Kaski District lies in the western development region of Nepal. The District is centrally located in
the country. Head Quarter of this district is Pokhara. The district covers an area of 2,017 sq. km
between 270 6’ to 28036’ northern latitude and 83 040’ to 84012’ eastern longitude. The elevation of
the district varies from 450 m to 7939m. The district is surrounded by Lamjung and Tanahun in the
east, Parbat in the west, Manang and Lamjung in the north and Tanahun and Syangja in the South. It
has 43 VDCs and Two municipalities.
3.1.5 Kathmandu Valley.
Land Use:
Land use changes between 1984 and 1996 have shown that the quality of forests has declined
gradually with a significant depletion in biomass. Agricultural land occupies 52% of the total area.
Forest and shrubs occupy 32.7%, while urban and industrial areas occupy 13.1% of the valley.
Table: 5 Land use of Kathmandu Valley
S.
Land use
N.
1
Agricultural land
1984 (LRMP)
1996 (DOT)
ha
%
ha
%
40950.
64
33308
52.1
30.4
20945
32.7
11.8
2070
3.2
7.7
7510
11.7
3
2
Forest and grassland
19438.
7
2.1.
Forests with crown cover greater than 7561.8
50% crown cover
2.2.
Forests with crown cover less than 50% 4908
crown cover
32
2.3.
Scrubland
5682.8
8.9
7125
11.1
2.4.
Planted forest
1164.6
1.8
2729
4.3
2.5.
Grassland
121.5
0.2
731
1.2
2.6.
Others
780
1.2
(Quarries/
landslides/gullies/
landslips)
3
Urban and industrial areas
3095.5
4.8
8377.6
13.1
3.1.
Residential areas
3095.5
4.8
3510.1
5.5
3.2.
Residential and commercial areas
4770.5
7.3
3.3
Industrial areas
197
0.3
4
Others
(abandoned
land/
riverine 479.2
0.8
1333
2.3
63964
100
63964
100
features/ airport/ ponds)
Total
Source: LRMP- Land Resource Mapping Project (1984) and DOT-Department of Topography
(1996)
Forest Resources in the Kathmandu Valley:
The forests on the valley floor and around the valley rim provide basic needs to rural communities,
clean water for valley residents and recreational sites for tourism and in-situ conservation of
biological diversity. However, rapid, haphazard urbanization, high demand for forest products and
unregulated and illegal quarrying have depleted much of the forest vegetation except in protected
forests. The major ecological implications are loss of vegetation, declining recreational sites and
decreasing water sources.
Main vegetation types prevalent in the valley:
Alnus nepalensis
Pinus roxburghii
Calamus species
Quercus lanata
Castanopsis species
Dendrocalamus species
Quercus lamellose
Bambusa species
Quercus semecarpifolia
Schima wallichii
Rhododendron arboretum
Pinus excelsa
33
3.1.6 Chitwan district
Location and boundaries
Chitwan district lies in the Narayani Zone of Central Development region of Nepal. This district falls
within 270 21' to 270 52' N latitude and 83054' to 840 48' E longitude. Its area is 2, 18,000 hectare.
Makawanpur and Parsa on East, Nawalparasi and Tanahun district encloses the district on west,
Gorkha and Dhading on North and UP and Bihar of India on South.
Land use
The total geographical area of the district is 2, 18,000ha, of which the biggest landform is forest
which covers 58.94% of the district.
Table 6: Land use type in Chitwan district.
S.N.
Land use
Area (ha)
Area (%)
1.
Agriculture and urban
90,566
41.54
2.
Total Forest
1,28,500
58.94
Total land use area
2,18,000
100
Out of the total forest area 53.70% is occupied by Royal Chitwan National Park, 10.50% of the total
forest is occupied by Buffer zone area, other type of forest by 34.96 % of the total forest area.
Topography
Topographically, the district can be divided into three regions as Mahabharat hills, Churia hills and
plain land of the valley.
Churia hills-Simaworti Churia, Inner Churia, Girpad Churia.
Plain land- Madi & Rapti valley
Mahabharata hills – Mahabharat, River.
Climate
Climate- Sub-tropical and Tropical
34
Maximum Annual temperature-37.9 degree Celsius
Minimum Annual temperature-7 degree Celsius
Soil type- Loamy Sand, Sandy Loam, Silty Loam, Clay Loam etc.
Population
The population of the district is 4, 70,713 of which 2, 33,044 are male and 2, 37,669 are female.
Total household size is 94,319 and the population density is 210 people per square kilometer.
Population Status of the district is 50.53% are female and 49.46% are male. And ethnic composition
comprises of Brahmin, Chhetri, Gurung, Newar, Tamang, Tharu, Magar, Darai, Praja etc.
Vegetation
Chitwan district comprises of different types of spps. like Sal, Simal, Sissoo, Khayer, Tuni, Asna,
Karma, Satisal etc. and open grassland which consists of different grass spps like Khar, Babiyo,
Kans etc.
3.1.7 Makawanpur district
Geographical Information
Makawanpur district lies in central development region of Narayani zone with an area of 2426 sq
km. and its headquarter is at Hetauda. The political boundary of the districts is Lalitpur, Kabre and
Sindhuli districts is east, Chitwan in the west, Dhading, Kathmandu in the north and Bara, Parsa,
Rautahat districts in the south. It lies in between 270 21’ to 270 40’ N latitude and 840 41’ it 850 31’E
longitude. Its elevation ranges from 166 m. (Hathindhunga, Raigaun) to 2584 m. (Simbhanjyang,
Daman). Makawanpur District consists of two major types of physiography, viz; a Mahabharat hill
that is in the Northern side with steep slopes and Churia hills, which is rugged in all aspects. The
Siwaliks are dissected by many shallow rivers and streams, which change course from time to time.
Main rivers are Rapti and Bagmati and others are Lother, Manhari, Chauda, Karra, Bakaiya, etc. It
has a artificial lake or pond i.e., Indrasarobar.
35
Land Utility of Makawanpur district
Table 7: Land Utility of the Makawanpur District
SN
Types
Area (Ha)
%
1
Forest Lands
144558
59.13
2
Agricultural Lands
61489
25.15
3
River, Lake
16711
6.84
4
National Parks
15125
6.18
5
Industrial Area
1607
0.66
6
Pasture land
4968
2.03
Total
244458
100
Source: D.F.O., Makawanpur (2064)
From table 1, it is cleared that the forest area of the district is 59.13% of total land. Similarly
Agricultural land is 25.115%, River is 6.84%, National Park is 6.18%, Industrial area is 0.66%, and
Pasture land is 2.03%.
Socio economic information of the district
It is known that the Makawanpur district is situated in central region of Nepal. It has 1.7%
population of Nepal. Out of which, 1991144 (50.72%) are male and 193460 (49.28%) are female.
Most of the people are living in rural area about 81.56% are rural habitant but only 17.44% are urban
habitant. Similarly large populations are dependent on agriculture that is 53% but 47% are dependent
on non-agriculture occupation. Most of the people are under the Tamang caste. It is about 47.34%.
Similarly 14.98% are Brahman, 10.56% are Kshetri, 6.81% are Newar, 4.56% are Magar, 3.915%
are Chepang/Praja and 11.84% are other caste. Incase of education status, 63.2% are literate among
them 72.4% are male and 53.7% are female.
Source: District Profile DDC, Makawanpur
36
3.2 DESCRIPTION OF THE STUDY COMPANY
EMI Nepal.
Easy Multitrade International [P] Ltd. is a company founded by a team of visionary, enthusiastic and
sincere group of people with a view to bring happiness to all Nepalese citizens by providing them
with the job opportunity, preserving the rights of the customers through the system of direct selling
in 2060 B.S. .The mechanism is the words of mouth advertisement for what we call Network
Marketing. The main rationale behind the establishment of this company is no more than to
strengthen the economic backbone of the nation and stand as a prominent Nepalese direct selling
business Company in the world. It is registered under the existing rule and regulation of Nepal. Its
headquarters is at Dhobhidhara, Kathmandu, Nepal. In 2062 B.S.the company started the own EMI
Herbal Udhyog to produce herbal products. Now EMI HU is promoting the cultivation of MAPs
through farmers. EMI has its own training institute Diksha (P) Ltd.
Mission
We believe, every responsible citizen is supposed to add a brick for the auspicious work of building
the nation rather than to ask the nation to grant something to them. It is a bare truth that the citizen
should be self-sufficient before thinking of others and the nation. Our opportunity plan will ensure
our customers' well being and thrive for the nation's progress. Our mission statement guides us as"Raise yourself to help mankind and motherland" RYTHMM.
Vision
The vision of EMI is to stand as a leading direct selling company and defend customers through the
systems of direct selling, creating job opportunity for the new generation of the nation. Our main
endeavor is to be positioned as a recognized network marketing company in the world of business.
37
CHAPTER: 4
METHODOLOGY
4.1 INTRODUCTION
This thoroughly focuses on the methods employed in this research work. This chapter consists five
sections. Broad outline of the research, study area selection, nature and sources of the data and data
analysis methods are described in successive sections.
4.2 Broad outline of the research
Topic Selection
Literature Review
Problem Statement and Justification
Objective Setting
Site Selection
Data Collection
Secondary Data Sources
Primary Data
-Direct Field Observation
- Key Informants Survey
- Focus Group Discussion
-Face to face Questionnaire survey
EMI and EHIHU
Published and unpublished reports.
News letter. NDSA. WDSA.
- Thesis, Journals, Publications etc.
Data Gathering, Analysis and Interpretation
Report Drafting
Topical Seminar at IOF and Feed Back Incorporation
Final Report Preparation and Submission
38
4.3 Study area and company selection
4.3.1 Study area selection criteria
Makawanpur, Surkhet, Rupendehi, Banke, Kaski, Kathmandu, Chitwan district are selected on the
basis of following criteria
1.
The city areas of the above districts are business booming area of EMI.
2.
From the Major cities i.e. Surkhet, Nepalgunj, Butwal, Pokhara, Kathmandu. Chitwan and
Hetauda the traders of NTFPs supplying to EMI HU.
3.
Farmers of above districts are involved in NTFPs cultivation.
Such type of research had not been conducted in this area in the past.
4.3.2 Company selection Criteria:
1.
Best representation of Socio-economic status,
2.
Totally promoting herbal products.
3.
Nepali managed Network marketing company.
4.
Global visionary and strong leadership
5.
At least five-year-old network marketing company.
6.
Presence of different social groups like Janajati in management of the company.
7.
Should be registered as the network marketing company in the company resister office of
GoN.
8.
Should have own factory to produce the herbal products at least two year old.
On the basis of above criteria Easy Multitrade International (P).Ltd (EMI Nepal) was selected for the
study purpose; which has owned EMI HU to produce herbal products.
4.4 Nature and sources of data
Most of the data collected during this research were of qualitative in nature depending on perception,
skills and indigenous knowledge of collectors, traders, networkers and cultivators on NTFPs. Some
39
quantitative data were also collected during field visit and collected by records of EMI HU and EMI
Nepal. The data were collected also from different depot centre of EMI.
4.5 DATA COLLECTION
Both primary and secondary information sources were used for data collection.
4.5.1 Primary data collection
Face to face questionnaire: 50 respondents were selected for the questionnaire. Since the majority
of the respondents were illiterate, face to face questionnaire was easy to administer by explaining the
questions directly to them.
Focus Group discussion: It was carried out with member of EMI Farmer co-operative
Key informants Interview: 100 Key informants (comprising of the local collectors, traders,
middlemen, networkers and forest officials, etc), with whom informal discussion was done. They
gave information about availability and condition of NTFPs, constraints in development of NTFPs,
marketing channel and marketing potentiality of different NTFPs. They also provided information
about the roles of EMI in the promotion of NTFPs.
Direct observation: It was done around the field where the cultivation of MAPs done and the EMI
Herbal Udhyog; Network Marketing approach of EMI-Nepal in study area.
4.5.2 Secondary data collection
Secondary data were collected to supplement the primary data. The sources of secondary data
collection were; Records EMI Herbal Udhyog, Published and Unpublished reports of EMI, DOF,
Internet, DSA, NDSA and Other relevant published and unpublished literatures
4.6 Sampling design
Purposive sampling was applied to carry out the research on the basis of requirement. Judgment
sampling and quota sampling done for networkers and traders. This is done because the no of
networkers is large population. 33% sampling intensity were used for cultivators' household survey.
40
4.7 DATA ANALYSIS
 The quantitative data were analyzed by using simple statistical tools and presented in tabular and
graphical forms like bar-diagram and pie chart.
 The qualitative data were presented in descriptive ways so that the basic findings of the research
could be well interpreted and justified.
The analyzed data proved the assumptions in logical way.
41
CHAPTER: 5
RESULTS AND DISCUSSIONS
5.1 Characteristics of the respondents.
5.1.1 Ethnicity
There are heterogenous in ethnic composition. Brahman, Kshetri, Newar, Tamang, Magar, Kami,
Gurung and there are different castes of Terai in these study area.
5.1.2 Types of the respondents.
For this study following types of respondent were selected for gathering required information.
Table 8: Frequency and percentage of types of respondents
Type of the Respondent
Frequency
Percent %
Cultivators of NTFPs
50
33.34
Collectors/Traders of NTFPs
10
6.66
Networkers (Customers of EMI)
80
53.34
Forest officials
10
6.66
Total
150
100
Source: Field Survey 2008
5.1.3 Gender of the respondent
Females were found involved in NTFPs Cultivation, Collection and Network marketing business but
not in trading the NTFPs. In total 46.66% female were selected for study.
Table 9: Gender Percent age of the respondent
Gender Frequency Percent
Male
80
53.34
Female
70
46.66
Total
150
100
Source: Field Survey 2008
42
5.1.4 Occupation
According to field survey the major occupation of the selected respondents are as follows.
Table10: Main occupation of the respondents
S.N.
Particular
Frequency
Percentage
1
Agriculture
50
33.34
2
Business NTFPs only
10
6.66
3
Service
10
6.66
4
Network Marketing
80
53.34
5
Total
150
100
Source: Field Survey 2008
5.1.5 Education
The education status of the respondents is shown in following table.
Table 11: Educational status of the respondents
S.N.
Particular
Frequency
Percentage
1
Illiterate( Unable to read and write)
15
10
2
Below 8 Class
40
26.67
3
Between 8-12 Class
60
40
4
More than 12Class
35
23.33
150
100
Total
Source: Field Survey 2008
5.2 Contribution of EMI Nepal in the promotion of NTFPs
5.2.1 Contribution of EMI in Value addition of Potential NTFPs
The term value added refers to the value created in a product in the course of manufacturing or
processing, exclusive of such cost as those of raw materials packaging or over head (MS
Encarta2006). Value added by any productive unit is the difference between the value of goods it
produces and the value of its purchase from the other productive unit. From direct observation of
factory it is found that for value addition of the NTFPs EMI HU performing following activities.
43
Storage
Storage is done in air conditioned room, by packing in Jute bag and other bags for later use.
Grading
Grading is done for Quality classification. Different grades of NTFPs are separated in different class
according to its quality based on shape, size.colour, scent, taste, condition and chemical
composition.
Cleaning
Removing all unwanted parts and dusts by cleaning manually.
Processing/manufacturing
Well conditioned and good qualities' parts/ extracts of the NTFPs are processed in following ways to
prepare the Herbal products of different Brand of EMI.
Semi processing is done at first by cutting, grinding manually and mechanically.
Then final processing is done by mixing different types of extracts to prepare the final product. The
processing technology is semi-manual in the factory.
Packaging is done with labeling done by brand Ratna, Brand Herb Tea; Prajna and Ratna Madhulep.
EMI HU also monitors the cultivation techniques land status for pre harvesting value addition.
5.2.2 Research and Development
The EMI HU is doing Lab research for production of Herbal products. It has own expert team of
medicines Aayurved Acharya. Lab test is done in every lot of production.
If the lab test is satisfied then only herbal products are launched in the markets. EMI HU also doing
Field level research in the cultivation techniques and suitability of MAPs in that place as in Hetauda,
Chitwan, Surkhet, and Butwal in trial basis.
44
5.2.3 Role of EMI in Markets Exploration.
5.2.3.1 Demand of NTFPs
The traders reported that EMI Herbal Udhyog's demand is increasing since last tree year. And
Records of EMI HU shown that purchasing trend is ever increasing in last three fiscal Year.
The EMI HU of EMI is demanding more in types and quantity of the NTFPs as shown in following
bar diagram and table.(See also annex III for detail.)
Fig 2: Bar diagram for purchasing trend of EMI HU.
Quantity (Ton)
Purchasing Trend of NTFPs by EMIHU
100
80
60
40
NTFPs
20
0
062/063
063/64
064/065
FY
Source: Records of EMI HU
Table 12: Quantities of NTFPs purchased by EMI HU
Fiscal Year Types of NTFPs Species. Quantity Kg Increment Increment %
2062/063
13
6,194
2063/064
14
14,921
8,727
140.89
2064/065
25
94,759
79,838
535.07
Average
337.98
Source: Records of EMIHU
According to records of EMI HU in fiscal year 2062/063 EMI HU purchased only 13 types of
NTFPs and only 6,194 Kg in quantity. But in fiscal year 2063/064 EMI HU purchased 14 types of
NTFPs and 14,921Kg in quantity. The increment in the demand of NTFPs in fiscal year 2063/064
45
was 140.89% than the fiscal year 2062/063.The total quantity of NTFPs purchased by EMI HU was
94,759 kg and used 25 types of NTFPs in the fiscal year 2064/2065. The increment in demand of
NTFPs in fiscal year 2064/065 was 535.07% than the fiscal year 2063/064. The average increment
in the purchase of NTFPs was 337.98% of last three fiscal year.
5.2.3.2 Supply of Herbal products
It is found that EMI created its Market niche for Herbal products. It sales in Market the tested and
branded products only. It has seven varieties of herbal products in Nepal's domestic market. The
selling trend of herbal products is ever increasing. The following data supports this statement.
Fig 3: Income of EMI by selling Herbal products (In 00,000 NRs)
NRs (In 00,000)
Income from selling Herbal Products
772.5
800
600
400
200
193.545
Income
65.1
0
062/063
063/064
064/065
FY
Source: Records of EMI
According to the records of EMI in fiscal year 2062/063 only amount of NRs 65.1 Lakh's herbal
products were sold in the market. Then in 2063/064 the herbal products were sold of amount
193.545 lakhs. The growth percent of income than fiscal year 2062/063 was 197.30%. The income
obtained by selling herbal products in fiscal year2064/065 was amount of NRs 772.5 lakhs. The
increment in the income was 299.13%.than the fiscal year2063/064. (See following table and annex
IV for detail).
46
Table 13: Increments of income of EMI through selling of Herbal Products
Fiscal year
Total income
NRs Increment
(00000)
Increment %
NRs(00,000)
2062/063
65.1
2063/2064
193.545
128.445
197.30
2064/2065
772.5
578.955
299.13
Average
248.21
Source: Records of EMI Nepal.
The average annual increment of herbal products is increased by 248.21%per annum. It’s an
excellent growth.
The marketing strategy of EMI is seen very well. The products range is increasing from last three
year. Initially there were three products in 2062/063. Then EMI launched Heina hair conditioner in
the market.2063/64. Then another three products namely Madhulep, Prajna Herb tea and Ratna
Tooth pest were brought to market in last fiscal year 2064/065.
EMI is taking part in different trade exhibition i.e. Butwal, Chitwan Mahotsav., Bhrikuti Market
Utsab.
Now EMI using the e-commerce, so customer can purchase the product in online whenever they
need, where ever they are; at any time. www.emi.com.np is official website of Easy Multitrade
International. (p) Ltd. In every district in Nepal
there are the distributors of EMI. At the end of
fiscal year 2064/065 there were Twenty Five thousands customers of EMI. Every day more than
1500 distributors talk about herbal products, health consciousness, and Network marketing
Opportunities as follows;
1. Financial Freedom
2. High Income Business Opportunities
3. Be Your Own Boss
4. Success Driven Industry
5. Significant Tax Advantages
6. Low Financial Risk
7. Time Freedom
8. Gaining Business Experience.
47
5.2.4 Resource conservation and Promotion.
It found that the collectors are directly collected NTFPs through Community Forestry. National
Forestry and Private Home garden/land. If unsustainable harvesting is continue the resource will be
depleted and remain for no one. That’s why EMI HU started a campaign in 2064 B.S. Baishakh at 26
Districts of Nepal. The Workshop on "The potentiality of NTFPs and challenges" were held in that
period. The out put of that workshop is under implementation in sector wise.
The EMI HU referred for cultivation following NTFPs.
1. Tulasi (Ocimum bacilicum)
2. Tejpat
(Cinnamomum tamala)
3. Titepati (Artemisia vulgaris)
4. Ghyukumari (Aloe vera)
5. Aduwa (Zingiber officinale)
6. Alaichi (Amomum sabulatum)
7. Lemon grass (Cymbopogan citratus)
8. Pipla (Piper longium)
9. Chiuri (Brassia butereceae)
10. Amala (Emblica officianalis)
11. Nim (Melia azadirac)
2.2.5 Cultivation Status of MAPs through EMI.
EMI Farmer co-operatives are formed to cultivate required NTFPs. It also encourages the farmer to
cultivate by agreement of Market Guarantee. Initially it started cultivation from Surkhet, Chitwan,
Hetauda surroundings.
At the starting of the fiscal year 2064/065 there was only 18 house holds of farmers and only one cooperative "EMI Jadibuti Production Co-operative Birendranagar, Surkhet" started cultivation on a
trial basis. High demand of Tulasi encouraged farmers to cultivate.
48
Table 14: Cultivation status of Tulasi in 2064/065
Fiscal
No.
Land area Quantity
year
HHs
Bigha
of Income
produce.(Kg)
Average
(NRs)
Remarks
income
NRs/HHs
2064/065
18
1.125.
2500
1,12,000/
Tulasi
3
12,000/
Tulasi
seed
Total
1,24,000/
6888/88
Source: Field Survey, 2008
For the production of Fiscal year 2065/66, Tulasi is planted in 35 Bigha, and in 5 Bigha Lemon grass
are planted by 150 Farmers House Holds in Surkhet, Nepalgunj, Butwal, Nawalparasi, Chitwan, and
Hetauda surroundings within fiscal year 2064/065.
Fig 4: Reason behind cultivation of MAPs.
Reason Behind NTFP Cultivation
15%
Due to EMI
Local market
85%
Source: Field Data 2008
It is found that 85% of farmers are motivated for cultivation of MAPs by assurance of market.
It is found that the farmers are doing in their way cultivation. For production of organic herbal
products the company should take care in time. The training about organic production should be
provided as soon as possible.
49
5.3 List of NTFPs used by EMI HU
Many NTFPs are used by EMI Herbal Udhyog; list of some important NTFPs which used in
significant amount is tabulated below.
Table 15: List of NTFPs used by EMI Herbal Udhyog.
S.N
Local name
1
Tejpat
Cinnamomum tamala
2
Tulasi
Ocimum bacilicum
Labiatae
3
Shutho
Zingiber officinale
Zingiberaceae
4
Lemon grass
Cymbopogan citratus
Gramineae
5
Dalchini
Cinnamomum tamala
6
Jhethi madhu
St elaria monosperma
Caryophyllaceae
7
Bael
Agle marmelos
Rutaceae
8
Alaichi
Amomum sabulatum
Zingiberaceae
9
Marich
10
Shop
11
Pipla
Piper longium
12
Chyuri Ghee
Brassia butereceae
13
Titepati Extract
Artemisia vulgaris
Compositae
14
Honey
-
-
15
Arandi
16
Ghodtapre
Centela asitica
Umbeliferae
17
Bhringiraj
Eolipta prostrata
-
18
Badamtel
Arachis hypogaea
Leguminosae
19
Nimtel
Melia azadirac
Meliaceae
20
Ghyukumari
Aloe vera
Liliaceae
21
Shikakai
Acacia concinna
Leguminosae
22
Amala
Emblica officianalis
Eupherbicaceae
23
Arjun bokra (bark)
Terminalia arjuna
Combretaceae
24
Rittha
Sapindus mukorossi
25
Bahramase flower
Scientific name
50
Family
CHAPTER: 6
CONCLUSIONS AND RECOMMEDATIONS
6.1 CONCLUSIONS
•
Two species of MAPs, Tulasi and Lemon grass were found cultivated in immense in the
study area due to the market assurance.
•
The cultivators made additional income of NRs 6888.88 in average
•
The study shows that NTFPs’ demand of EMI HU is increasing by 337.98% annually, the
selling trends of Herbal products is increasing by 248.21%.
•
The numbers of NTFP cultivators has increased from 18 to 150.
•
85% of cultivators were found motivated for the cultivation of MAP due to market assurance
by EMI HU.
•
In the sector of research and development the investment is very low.
•
The company is not taking so much concentration on the resource promotion and
conservation.
•
So that the company is taking a leading role in the promotion of NTFPs.
6.2 RECOMMEDATIONS
 Technical and financial assistance should be given to those farmers who want to cultivate
NTFPs in their private land.
 Professional competency of the Farmer should be developed and enhanced.
 EMI HU should invest more in resource conservation and promotion programme according
to ecological basis, to get progressive large sum of NTFPs for emerging market.
 Existing policy related to Marketing should be reviewed and the Policy about Network
marketing should be brought in effect.
 Resource conservation and Promotion programme should be launched by EMIHU, by
Coordinating with DOF, CFUG.
 Cultivation and domestication of valuable NTFPs should be encouraged on CF and Private
land establishing NTFPs Nursery and Demonstration plantation.
51
 Medium and Micro enterprises should be established for semi or full processing raw
materials through EMI Cooperatives in different pocket areas of NTFPs, in different parts of
the country.
 Network of concerned stakeholder (public, private and GoN) is needed for promotion of
NTFPs local, national and international level so it should be formed.
 The awareness programme about Network marketing, NTFPs Promotion should be started in
effective way by Rally, Media, Publication, Workshop, Seminar and In/Formal discussion.
 Further research should be done in detail about Network marketing; its impacts in economy,
business, promotion of NTFPs, future prospects and challenges.
52
REFERENCES
Allan Peace, (2001) Questions are the Answers, Manjul Publication Pvt. Ltd.
ANSAB,(2003) Commercially Important Non-timber Forest Products of Nepal :Asia Network for
Sustainable Agriculture& Bioresources.
Chandrashekharan, D. (1998) NTFPs, institution and income generation in Nepal, ICIMOD,
Kathmandu, Nepal.
CECI, 1999. Sub sector analysis of high altitude NTFPs in the Karnali Zone. Draft
Version
Community Based Economic Development Project, Canadian Centre for International studies and
Co-operation, Kathmandu. 26pp
Dutta I.C. ( 2007) NTFPs of Nepal; Hill side Press (p) Ltd. Kathmandu , Nepal.)
Directive for Network Marketing Business-2064” Government of Nepal 2064.
Edwards, D.M. (1996), Non-Timber Forest Products from Nepal, Aspect of trade in Medicinal and
Aromatic Plants; FORESC Monograph 1/96 Ministry of Forest &soil conservation, Kathmandu.
FAO (1995).Marketing Information Systems for Non-Timber Forest Products. Community Forestry
field manual-6, Rome.
HMG/N, 1988. Master Plan for Forestry Sector, Nepal.
Kanel, (2000),"NTFP policy issues in Nepal", Proceeding of the third regional workshop on
"Community Based NTFP Management" 2000.
Kanel, K. R., 1999. Policy Related Issues in Non-Timber Forest Products Business. In workshop
proceeding of NTFPs: Production, collection and Trade of NTFPs in Mid Western Development
Region of Nepal.
Karna,A.,2004.Contribution of medicinal plants to all the five assets of the livelihood and its
relation to the antibacterial activity for Partial fulfillment of the Master of Science in Forestry TU,
IOF, Pokhara.
Malla,S.B. and Shakya,P.R. (1984-85).Medicinal plants. Nepal-Nature’s Paradise P261-297 White
Lotus Co.Ltd, Bangkok.
Microsoft Encarta (2007), by Microsoft Corporation
Olsen, C.S. and Helles, F. 1997. Medicinal plants, Markets and margins in the Nepal Himalayan:
trouble in paradise. Mountain research and Development 17(4). 363-374.
Randy Gage, (2004) How to build Multilevel Money Machine, The science of Network Marketing,
Manjul Publishing House (p) Ltd, India]
53
Rawal, R.B. 1995. The Role of NTFP in the Rural Community Development, Kathmandu, Nepal
Sapkota, Hribansa( 2007) MARKET LINKAGE OF NTFPs AND NTFPs BASED MICRO
ENTERPRISES: OPPORTUNITY AND CHALLENGE IN COMMUNITY FOREST USER
GROUPS: A research report presented to T.U. IOF, Pokhara campus for the partial fulfillment of
the requirement of the B.Sc. forestry degree.
Subedi, 2003. LFP strategy for NTFP promotion: A draft of livelihood and forestry program.
Subedi, Balram (2064). Four Year of EMI: Referral Business; Past Present and Future. Published
by EMI Dhobidhara-33, Kathmandu.
Subedi, Thakur (2007) Status, Problem and Prospects of NTFP Marketing: A research report
presented to T.U. IOF, Pokhara campus for the partial fulfillment of the requirement of the B.Sc.
forestry degree.
.Websites.
www.networkmarketing.com (history +business school.com)
www.Globalnetworker.com BwDec2007 Theme)
www.google.com / www.neoquest.com; comsurvey report of , Neoquest 2006)
www.emi.com.np
54
Appendix-I
QUESTIONNAIRE
For collector/ traders/ cultivator
Name of Respondent:
Gender :
Occupation
Age:
Address:
Education:
1 From where, do you collected these?
-National forest
2.
-Community forest
-Private lands
Which NTFPs do you collect from your CF /National forest ?
3. Are you aware of the resource conservation of the NTFPs?
4. Do you cultivate the NTFPs in your farmland?
Yes/No
5.If Yes, what are the species and how many?
S.n
Species
No.of Plants
Area (Ha.)
6.What did you inspire to cultivate NTFPs?
Local market
Network marketing company (EMI Herbal Udhyog)
7.How much quantity have you produced from cultivation?
S.N.
Species
Quantity
8. Do you use those NTFPs for your own need? Yes/No
9. Do you sell the NTFPs?
Yes/No
10. What kinds of NTFPs are selling to purchaser?
11. How much and for whom you are selling more?
EMI Herbal Udhyog.
55
Others herbal industry
The International trader
12.The demands from the EMI HU is increasing or decreasing ?
Date/year
Species
Quantity
Amount
13.Did you get profit? How much?
14.What are the techniques that you follow for cultivation?
15.From where did you get seed and seedlings of NTFPs / MAPs?
16. Are you getting technical support from the Network Marketing Company?
Yes
No
17. Does the network marketing company guaranties your product's markets?
18. What kinds of support do you expect from a network company?
Model Questionnaire for Survey networker
1. Name:
2. Gender:
2. Age
3. Education:
5. Address:
6. Occupation:
1. In which Network Marketing companies do you belong to?
2. What kinds of services/products are distributed through it?
-Electronics and electrical
-Herbal products
-Health service
-Education
-Training
-others
3. Does your company produce the Herbal Products?
4. Why the company is promoting Herbal products?
5. If there were no network marketing what would be the option for promotion of NTFPs?
6. Does your company expanding the Herbal products range?
7. What kinds of role played by Network marketing company for the promotion of NTFPs?
8. What kinds of products/services do you expect from your network company?
9.Do you think that the network marketing companies making its fortune by promotion of
NTFPs ?
10.What will be future of Nepal's if a lot of NTFPs are promoting by EMI Nepal globally?
56
11. What do you suggest for EMI Nepal for promotion of NTFPs
Group discussion topics for group of farmers
1. What are the plants are you producing?
2. Do you also produce NTFPs?
3. Why you are encouraged to cultivate?
4. How much land are you using for cultivation?
5. Are you extending the cultivation?
6. Why do you extend your MAPs cultivation?
7. Who encouraged to cultivate ?
8. What are your alternative markets?
9. Do you see the growing market of NTFPs?
10. Why do formed the group of farmers (EMI -farmer cooperative)
11. What kind of role should play by EMI Nepal to promotion of NTFPs produced by you?
Group discussion topics for forestry professional
Department of forest and department of plant
1. What should be the policy and role of government for the better harvesting practice of NTFPs?
2 Whart are immediate actions to be undertaken for NTFPs promotion in community forest and
private land?
3 .Do you know about network marketing?
4.What should do by the network marketing companies for the promotion of the NTFPs?
5 What kinds of support can get by network marketing?
Checklist
Promotion of NTFPs
Market exploration /creating market niche.
Value addition
Branding
Resource conservation
Domestication/cultivation
Processing
57
Research
a)Processing technology Manual/Dispersed(3) Mechanical (2) Sophisticated Technology (1)
b) Processing technology expertise High(3), Modest(2) Low(1)
Annex.III Purchasing quantities of NTFPs of EMI HU of Last Three Year.
S.N
Name of the
NTFPs
Cinnamomum
Local name
Fiscal year 2063/2064
Fiscal year 2064/2065
Quantity
K.g.
2,700
Amount
Tejpat
Fiscal year
2062/2063
Quantity
Amount
K.g.
1300
45,500/
94,500/
Quantity
K.g.
11,500
Amount
NRs
5,17,500/
Tulasi
900
58,500/
2,000
1,30,000/
8,500
5,52,500/
Shutho
300
30,000/
800
80,000/
3,500
4,37,500/
Lemon grass
750
33,750/
1,600
72,000/
8,500
4,67,500/
Dalchini
150
18,750/
400
50,000/
5,100
8,92,500/
Jhethi madhu
75
9,375/
200
25,000/
1,700
2,72,000/
1
tamala
2
Ocimum
bacilicum
3
Zingiber
officinale
4
Cymbopogan
citratus
5
Cinnamomum
tamala
6
Stelaria
monosperma
7
Agle marmelos
Bael
250
25,000/
800
80,000/
3500
3,50,000/
8
Amomum
Alaichi
150
26,250/
400
70,000/
5,100
12,49,500/
9
Marich
40
5,600/
100
14,000/
850
1,23,250/
10
Shop
250
20,000/
800
64,000/
3,500
4,37,500/
sabulatum
11
Piper longium
Pipla
20
3000/
50
7,500/
1,200
1,80,000/
12
Brassia
Chyuri Ghee
2,000
1,60,000/
4,300
3,44,000/
27,540
23,40,900/
Titepati
Extract
9
5,4 00/
21
12,600/
80
48,000/
butereceae
13
Artemisia
58
vulgaris
14
-
15
Honey
3,400
4,02,500/
Arandi
50
35,000/
16
Centela asitica
Ghodtapre
65
52,000/
17
Eolipta
Bhringiraj
15
9,000/
Badamtel
500
75,000/
prostrata
8
Arachis
hypogaea
19
Melia azadirac
Nimtel
10
14,000/
20
Aloe vera
Ghyukumari
40
60,000/
21
Acacia
Shikakai
3,000
1,95,000/
Amala
3,500
2,27,500/
Arjun
bokra(bark)
1,000
2,18,000/
2,500
8,75,000/
109
54,500/
94,759/
1,00,86,150/
concinna
22
Emblica
officianalis
23
Terminalia
arjuna
24
Sapindus
Rittha
750
2,62,500/
mukorossi
25
Bahramase
flower
Grand total
6,194
4,41,125
59
14,921/
13,06,100/
Annex IV
Selling trends of EMI.
S.N
Name the
Product
1.
2.
Herb Tea
Ratna Shampoo
3.
RatnaSoap
4.
Ratna Hair
conditioner
Pragya Herb Tea
5.
6.
7.
Fiscal year2062/2063
Quantity
Amount
Lakh
(NRs)
3,000Kg.
30
1,500litre.
13.5
18,000piece
s
21.6
Fiscal year 2063/64
Quantity Amount
Lakh
(NRs)
8602Kg. 86.02
4301
43.01
Litre
34408
43.01
pieces
4301
21. 505
packets
Ratna Madhulep
Facepack
Ratna Toothpest
65.1
193.545
Grand total
60
Fiscal year2064/65
Quantity Amount
Lakh
(NRs)
29900Kg 299
14950
149.5
119600pi
eces
7475
packets
2242.5K
g
59800pie
ces
1500kg
149.5
37.375
37.375
74.75
25
772.5
PHOTOPLATES
The researcher discussing with EMI Jadibuti
Production Co operative
Birendranagar, Surkhet
Researcher taking inter view of the
NTFPs' trader.
Tulasi (Ocimum bacilicum) nursery.
at Jamunapur ; in Chitwan
Lemon Grass (Cymbopogan citratus)
plantaion at Jamunapur , in Chitwan.
61
Researcher taking Household survey of
Cultivator.
Tulasi plantation at Lamosure, Hetauda,
in Makawanpur
Land just prepared for Tulasi cultivation
Chuchekhola, Makawanpur.
The herbal products of EMI Nepal.
62