Research article

Actors in customary and modern trade of Caterpillar Fungus in Nepalese high mountains: who holds the power?

  • Received: 05 October 2020 Accepted: 16 November 2020 Published: 19 November 2020
  • JEL Codes: P28, P36, Q23

  • This paper assesses the supply chain of Yartsagunbu (Caterpillar Fungus) in Darchula district of Nepal to identify who holds the power and how they gain power for management and marketing. We recorded two types of supply chain: (ⅰ) open supply chain, driven by open market, where the product is transported to Kathmandu before export to international market, and (ⅱ) close chain practiced by indigenous Shauka community following customary trade route to Tibet. The open chain is longer with higher number of actors compared to the close chain. This study observed that actors have intensive horizontal competition in the open chain to collect and purchase maximum quantity. Therefore, profit is disproportionately distributed to the actors in higher level of the supply chain. The profit is based on the price the actor receives, which is determined by their bargaining power. An actor's bargaining power is determined by the capital holding capacity, market information, risk appetite, networking and social ties. The study suggests that Government's interventions such as providing security to traders, access to finance, organizing auction and providing market information can help to increase the bargaining power of lower level actors. The study also suggests to minimize the disturbance in the collection site through limiting the collection permit and revising the revenue based on the market price.

    Citation: Basant Pant, Rajesh Kumar Rai, Sushma Bhattarai, Nilhari Neupane, Rajan Kotru, Dipesh Pyakurel. Actors in customary and modern trade of Caterpillar Fungus in Nepalese high mountains: who holds the power?[J]. Green Finance, 2020, 2(4): 373-391. doi: 10.3934/GF.2020020

    Related Papers:

  • This paper assesses the supply chain of Yartsagunbu (Caterpillar Fungus) in Darchula district of Nepal to identify who holds the power and how they gain power for management and marketing. We recorded two types of supply chain: (ⅰ) open supply chain, driven by open market, where the product is transported to Kathmandu before export to international market, and (ⅱ) close chain practiced by indigenous Shauka community following customary trade route to Tibet. The open chain is longer with higher number of actors compared to the close chain. This study observed that actors have intensive horizontal competition in the open chain to collect and purchase maximum quantity. Therefore, profit is disproportionately distributed to the actors in higher level of the supply chain. The profit is based on the price the actor receives, which is determined by their bargaining power. An actor's bargaining power is determined by the capital holding capacity, market information, risk appetite, networking and social ties. The study suggests that Government's interventions such as providing security to traders, access to finance, organizing auction and providing market information can help to increase the bargaining power of lower level actors. The study also suggests to minimize the disturbance in the collection site through limiting the collection permit and revising the revenue based on the market price.


    加载中


    [1] Adhikary K (2017) Ethnobotany, commercialisation and climate change: consequences of the exploitation of yarsagumba in Nepal. Eur Bull Himal Res 49: 35-58.
    [2] Banjade MR, Paudel NS (2008) Economic potential of non-timber forest products in Nepal: myth or reality? J For Livelihood 7: 36-48.
    [3] Bhattacharya P, Hayat SF (2004) Sustainable NTFP management for rural development: a case from Madhya Pradesh, India. Int For Rev 6: 161-168.
    [4] Caplins L (2017) Collecting Ophiocordyceps sinensis: an emerging livelihood strategy in the Garhwal, Indian Himalaya. J Mt Sci 14: 390-402. doi: 10.1007/s11629-016-3892-8
    [5] Choudhary PR (2007) Forest-route to poverty alleviation-myths and realities: analysis of NTFP-livelihood linkages in some Indian states. A poster presented in the RRI Conference in Bangkok, 4-7.
    [6] Chowdhury S, Gulati A, Gumbira-Said E (2005) High value products, supermarkets, and vertical arragements in Indonesia. Markets, Trade and Institutions Division (MTID) Discussion Paper no 83, International Food Policy Research Institute.
    [7] Dallas MP, Ponte S, Sturgeon TJ (2019) Power in global value chains. Rev Int Polit Econ 26: 666-694. doi: 10.1080/09692290.2019.1608284
    [8] Devkota S (2007) Yarsagumba [Cordyceps sinensis (Berk.) Sacc.]; Traditional utilization in Dolpa District, Western Nepal. Our Nat 4: 48-52.
    [9] Dispatch N (2014) Darchula locals killed while hunting for Yarsagumba. Available from: http://www.nepaldispatch.com/2013/06/8-darchula-locals-killed-while-hunting-for-yarsagumba/.
    [10] GON (2010) Nepal Trade Integration Strategy 2010, Kathmandu, Nepal.
    [11] GON (2013) Jadibuti bikri bitaran samchhipta lagat: arthik barsa 2070 (A brief NTFPs sale and distribution in fiscal year 2012/2013), Government of Nepal.
    [12] Government of Uttarakhand (2018) Yarsagumba collection procedure, Government of Uttarakhand, India.
    [13] Gubbi S, MacMillan DC (2008) Can non-timber forest products solve livelihood problems? A case study from Periyar Tiger Reserve, India. Oryx 42: 222-228. doi: 10.1017/S0030605308071111
    [14] Harsanyi JC (1963) A simplified bargaining model for the n-person cooperative game. Int Econ Rev 4: 194-220. doi: 10.2307/2525487
    [15] Hellmann T (2007) Entrepreneurs and the Process of Obtaining Resources. J Econ Manage Strat 16: 81-109. doi: 10.1111/j.1530-9134.2007.00133.x
    [16] Hishe M, Asfaw Z, Giday M (2016) Review on value chain analysis of medicinal plants and the associated challenges. J Med Plants Stud 4: 45-55.
    [17] Isaksen ET, Richter A (2019) Tragedy, property rights, and the commons: Investigating the causal relationship from institutions to ecosystem collapse. J Assoc Environ Resour Econ 6: 741-781.
    [18] Iversen V, Chhetry B, Francis P, et al. (2006) High value forests, hidden economies and elite capture: Evidence from forest user groups in Nepal's Terai. Ecol Econ 58: 93-107. doi: 10.1016/j.ecolecon.2005.05.021
    [19] Jolly J (2011) Yarsagumba: Curse of Himalayan Annapurna region. BBC News: South Asia. Available from: http://wwwbbccouk/news/world-south-asia-12110240 Access on: July 25, 2014.
    [20] Kantipur Daily (2014) Yarcha pickers robbed of millions. Available from: http://www.ekantipur.com/2014/06/21/top-story/yarcha-pickers-robbed-of-millions/391125 Access on: July 25, 2014.
    [21] Langdon S, Worl R (1981) Distribution and exchange of subsistence resources in Alaska. University of Alaska Arctic Environmental Information and Data Center, Anchorage, Alaska.
    [22] Mahapatra AK, Shackleton CM (2011) Has deregulation of non-timber forest product controls and marketing in Orissa state (India) affected local patterns of use and marketing. For Policy Econ 13: 622-629. doi: 10.1016/j.forpol.2011.07.009
    [23] MOFE (2017) Yarsagumba Management (Collection and Transportation) Guideline 2017, Ministry of Forests and Environment, Kathmandu, Nepal.
    [24] Moncrieff CF (2007) Traditional ecological knowledge of customary trade of subsistence harvested fish on the Yukon River. U.S. Fish and Wildlife Service, Office of Subsistence Management, Fisheries Resource Monitoring Program, 2007 Final Report (Study No. 04-265), Anchorage, Alaska.
    [25] Negi CS (2007) Declining transhumance and subtle changes in livelihood patterns and biodiversity in the Kumaon Himalaya. Mt Res Dev 27: 114-118. doi: 10.1659/mrd.0818
    [26] Neupane N (2015) Solving transborder water issues in changing climate scenarios of South Asia, Governing access to essential resources, Columbia University Press.
    [27] Olsen CS, Bhattarai N (2005) A Typology of conomic gents in the Himalayan plant trade. Mt Res Dev 25: 37-43. doi: 10.1659/0276-4741(2005)025[0037:ATOEAI]2.0.CO;2
    [28] Pant B, Rai RK, Wallrapp C, et al. (2017) Horizontal integration of multiple institutions: Solution for yarsagumba related conflicts in the himalayan region of Nepal? Int J Commons 11: 464-486. doi: 10.18352/ijc.717
    [29] Pant B, Wallrapp C, Ram AK, et al. (2014) Across the Mahakali, Yarsagumba Collection. International Center for Integrated Mountain Development. Kathmandu, Nepal. Available from: https://www.youtube.com/watch?v=85FLh1HqFds. Accessed on: 11 November, 2020.
    [30] Pouliot M, Pyakurel D, Smith C (2018) High altitude organic gold: the production network for Ophiocordyceps sinensis from far-western Nepal. J Ethnopharmacol 218: 59-68. doi: 10.1016/j.jep.2018.02.028
    [31] Purcell SW, Crona BI, Lalavanua W, et al. (2017) Distribution of economic returns in small-scale fisheries for international markets: A value-chain analysis. Mar Policy 86: 9-16. doi: 10.1016/j.marpol.2017.09.001
    [32] Pyakurel D, Bhattarai SI, Smith-Hall C (2018) Patterns of change: The dynamics of medicinal plant trade in far-western Nepal. J Ethnopharmacol 224: 323-334. doi: 10.1016/j.jep.2018.06.004
    [33] Pyakurel D, Oli BR (2012) NTFPs/MAPs business promotion strategy (2012-2016), from private sector perspective, FNCCI-AEC/NEHHPA, Kathmandu, Nepal.
    [34] Rausser GC, Zusman P (1991) Organizational failure and the political economy of water resources management, California, United States of America.
    [35] Safarzynska K, van den Bergh JCJM (2010) Evolving power and environmental policy: explaining institutional change with group selection. Ecol Econ 69: 743-752. doi: 10.1016/j.ecolecon.2009.04.003
    [36] Shrestha UB, Bawa KS (2014) Economic contribution of Chinese caterpillar fungus to the livelihoods of mountain communities in Nepal. Biol Conserv 177: 194-202. doi: 10.1016/j.biocon.2014.06.019
    [37] Shrestha UB, Bawa KS (2013) Trade, harvest, and conservation of caterpillar fungus (Ophiocordyceps sinensis) in the Himalayas. Biol Conserv 159: 514-520. doi: 10.1016/j.biocon.2012.10.032
    [38] Shrestha UB, Dhital KR, Gautam AP (2017) Economic dependence of mountain communities on Chinese caterpillar fungus Ophiocordyceps sinensis (yarsagumba): a case from western Nepal. Oryx 53: 1-9.
    [39] Sills E, Shanley P, Paumgarten F, et al. (2011) Evolving perspectives on non-timber forest products, In: Non-timber forest products in the global context, Springer, Berlin, Heidelberg, 23-51.
    [40] Sunderland T, Ndoye O (2004) Forest products, livelihoods and conservation: Case studies of non-timber forest products systems. FAO 2: 1-55.
    [41] TEPC (2013) Export import data bank, trade and energy promotion centre, Ministry of Commerce and Supplies, Government of Nepal.
    [42] THT (2013) Yarsa worth millions flown to Kathmandu. The Himalayan Times. Available from: http://www.thehimalayantimescom/fullNewsphp?headline=Yarsa+worth+millions+flown+to+Kathmandu&NewsID=391049.
    [43] Tokatli N (2006) Asymmetrical power relations and upgrading among suppliers of global clothing brands: Hugo Boss in Turkey. J Econ Geogr 7: 67-92.
    [44] United Nations (2017) The Sustainable Development Goals Report. United Nations.
    [45] Wallrapp C, Faust H, Keck M (2019a) Production networks and borderlands: cross-border yarsagumba trade in the Kailash Landscape. J Rural Stud 66: 67-76. doi: 10.1016/j.jrurstud.2019.01.016
    [46] Wallrapp C, Keck M, Faust H (2019b) Governing the yarshagumba 'gold rush': a comparative study of governance systems in the Kailash landscape in India and Nepal. Int J Commons 13: 1-24. doi: 10.18352/ijc.884
    [47] Wangchuk S, Norbu N, Sherub S (2012) Impacts of Cordyceps collection on livelihoods and alpine ecosystems in Bhutan as ascertained from questionnaire survey of Cordyceps collectors, Royal Government of Bhutan, UWICE Press, Bumthang.
    [48] Winkler D (2008a) Yartsa Gunbu (Cordyceps sinensis) and the fungul commodification of Tibet's rural economy. Econ Bot 62: 291-305. doi: 10.1007/s12231-008-9038-3
    [49] Winkler D (2008b) The mushrooming fungi market in Tibet exemplified by Cordyceps sinensis and Tricholoma matsutake. J Int Assoc Tibetan Stud 4: 1-46.
    [50] Winkler D (2009) Caterpillar fungus (Ophiocordyceps sinensis) production and sustainability on the Tibetan plateau and in the Himalayas. Asian Med 5: 291-316. doi: 10.1163/157342109X568829
    [51] Wood RC (1994) Negotiation basics: concepts, skills and exercises. Service Ind J 14: 590-591. doi: 10.1080/02642069400000060
    [52] Wu SY, Roe B (2007) Contract enforcement, social efficiency, and distribution: some experimental evidence. Am J Agr Econ 89: 243-258. doi: 10.1111/j.1467-8276.2007.00996.x
    [53] Yang ZL (2020) Ophiocordyceps sinensis, The IUCN red list of threatened species 2020: e.T58514773A58514845.
  • Reader Comments
  • © 2020 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)
通讯作者: 陈斌, bchen63@163.com
  • 1. 

    沈阳化工大学材料科学与工程学院 沈阳 110142

  1. 本站搜索
  2. 百度学术搜索
  3. 万方数据库搜索
  4. CNKI搜索

Metrics

Article views(511) PDF downloads(32) Cited by(0)

Article outline

Figures and Tables

Figures(1)  /  Tables(3)

/

DownLoad:  Full-Size Img  PowerPoint
Return
Return

Catalog