Karnali is the poorest area in Nepal due to geographical setbacks (located in 1,000m~7000m altitude) and poor social/economic infrastructure. In terms of UN Human Development Index, Humla and Mugu takes 75th place (0.012) among 75 administrative districts, which proves that the community people in this area enjoy the lowest standards of living, especially in income, education, health service sectors. This area also lacks affordable access to social overhead capital that the Nepal government is providing, which leads to their poverty.
The profit generated by commercialization of agricultural products plays important role in food security, livelihood, employment, and income generation but in hilly area, the low-value product, such as grains, does not have competitive advantage whereas high-value product, such as Medicinal and Aromatic Plants (MAPs), certainly has competitive advantage in the market.
MAPs from hilly area in Nepal are regarded as one of the most important income source which can eliminate the poverty in hilly area. But farmers in hilly area are not able to take fairly advantage. 90% of MAPs flows out to Indian market without processing. The rest are consumed in domestic market or smuggled out to china.
Thus, based on the value chain research and understandings of market, we intervened the MAPs sector of hilly area. Through fair profit allocation through market intervention, such as supporting professional management, supply chain management, processing and sales activities, and investment on research and development, establishment of profit-reinvestment model we are trying to make the community development sustainable.