Crossing the roof of the world: Trade in medicinal plants from Nepal to China

Abstract

Ethnopharmacological relevanceTrade in medicinal and aromatic plants (MAPs) between Nepal and China has taken place for centuries along the Tibetan border. While there is anecdotal evidence that economic development in China over the past decades, coupled with regional infrastructure development and increasing market integration, has substantially changed this trade, there are no current published studies investigating this, e.g. in terms of species and market structure. This knowledge gap impedes the development of public interventions, e.g. in support of sustainable trade. Aim of this studyThe primary objective of this study is to provide the first informative insights into the Nepal-China trade in MAPs, with particular emphasis on the value chain in Tibet. Methods and materialsData was collected from December 2015 to August 2016 in Nepal and Tibet. The data collection included standardized questionnaires to understand and map the value chain of MAPs, including the actors involved and key governance issues. Data was collected from Katmandu-based MAPs wholesalers exporting from Nepal to China, (n = 6) and with regional wholesalers (n = 40) based in Tibet. The questionnaires contained quantitative and qualitative components focusing on key elements of the MAPs value chain, e.g. the traded species and their values. This was augmented with qualitative interviews with Lhasa-based processors (n = 4) and government officials (n = 12) working in border controls, customs, and/or drug administration. We also collected official statistics on the Nepal-China MAPs trade and conducted a workshop in Lhasa with traders and government officials to discuss the nature of the Nepal-China MAPs trade. ResultsThe Nepal-China MAPs trade boomed after 2011 when the value of traded plants increased more than nine-fold. This rapid increase reflected both a broader species composition and higher unit prices in response to increasing demand from China. The trade expansion was also driven by increasing demand in China and facilitated by improved infrastructure in Nepal and Tibet, including direct flight connections for the transport of high-value products. Official records on both sides of the border under-document both the value and the volume of the trade, implying that much of it is extra-legal. The value chain is thus governed by both legal and extra-legal mechanisms. ConclusionThis study provides the first structured overview of the current trade in commercial MAPs from Nepal to China. While the trade is thriving, growing in both volume and value to the benefit of producers in Nepal and consumers in China, there is little empirical data or research to support policy formulation on sustainable trading. This study provides informative insights into the value chain and makes public policy recommendations to increase the transparency and sustainability of trade by improving traditional border markets and removing market barriers.