Nepal’s green gold: Tapping Chiraito’s potential for global markets

Nepal, with its breathtaking landscapes and traditions, holds a treasure trove of natural and cultural assets. From luxurious pashmina shawls and hand-knotted carpets to organic teas, medicinal herbs, and unique artisanal crafts, the country offers products that could easily find a place in global markets. Yet, despite this richness, Nepal’s footprint in international trade remains small. This paradox raises questions: Why is a country so rich in export-worthy goods struggling to make its mark globally? And what can be done to unlock Nepal’s true potential in the world economy?  

A powerful example lies in Chiraito (Swertia chirayita), a native medicinal herb that blooms in Nepal’s high hills and alpine regions. With growing awareness and demand for natural remedies and wellness products in today’s world, Chiraito has much to offer as a flagship in herbal export for Nepal. It perfectly illustrates both the potential and the drawbacks of Nepal’s export landscape. Nepal has the resources, the traditional knowledge, and the market interest, however due to lack of infrastructure, institutional support, and strategic direction to scale production, Nepal struggles to meet the global standards. 

Let’s look closer at Nepal’s broader export potential, using Chiraito as a case study. It explores the systematic barriers that hinder the progress and offers actionable strategies to help Nepal with its natural wealth to the world. At the same time, it also secures sustainable economic and social benefits. 

Nepal produces high quality teas, essential oils, handmade paper, wool products, and herbal medicines, many of which are identified as organic, sustainable, and culturally unique. These features are well aligned with global trends favoring ethical and wellness focused products. 

Despite having high potential for the export, Nepal has a negative trade balance due to significantly higher import than export by approximately $12m as per World Integrated Trade Solution 2023.

Chiraito (Swertia Chirayita) is usually found on hill slopes in sub-tropical to temperate zones throughout Nepal between altitudes of 1,200-3,000 meters. It has been reported to be found in 40 districts of the country. In Eastern part of Nepal, the major production takes place in Sankhuwasabha, Terathum, Dhankuta and Panchthar whereas in central Nepal they are available in Rasuwa, Dolakha, , Gorkha, Sindhuli, and Makwanpur, while Rolpa, Dolpa, Salyan, Achham and Doti are the major producing districts in western Nepal as per Study by Government of Nepal Ministry of Forests and Soil Conservation Department of Plant Resources 2011. As per UNDP Climate Change Adaptation 2013, Nepal’s annual production in 2013 was estimated at about 711 MT, with 675.6 MT exported to India and Tibet. This number has massively declined in 2023 to 118.5 tons and worth of Rs 22.4m was exported in India in the first five months of the fiscal year 2023/24 as per statistics of the Mechi Customs Office. 

This herb is valued in Pharmacological properties for liver protection, lowering the blood sugar level and also as an antibacterial and antifungal property. Besides these it is also used in different codified systems of traditional medicine, such as Ayurveda and Homoeopathy. Today, its healing compounds are gaining attention from pharmaceutical and wellness industries in Europe, Japan, and North America thanks to raising health consciousness, increasing consumer preference for natural remedies. According to Grand View Research 2022, the global herbal medicine market size was estimated at $70.57bn in 2023 and is projected to reach $328.72 by 2030. As consumers shift toward natural health solutions, Chiraito stands out as a high potential product for the global medicine market. However, Nepal hasn’t been able to unlock its value to the desirable market to meet the global demand. 

Despite such high-value products, Nepal faces numerous obstacles in expanding its export footprint. Nepal’s mountainous terrain and poor transport network make it difficult to move goods efficiently. Rural roads are often unreliable during monsoons. Exporters struggle with lack of storage, packaging, and cold chain systems, especially for perishable products like herbs. Being landlocked, Nepal also relies heavily on Indian ports for maritime trade, resulting in delays, added costs, and limited market access. Yak caravans used to haul pack loads of the herb through Olangchung Gola Nepal to Tibet. Exports stopped in 2020 when the pandemic broke out, and the northern border was tightly shut.

Chiraito is an endangered herb protected under national and international conservation frameworks. Exporters must obtain special permits from forest and environment authorities, which can be time-consuming and bureaucratic. Importing countries (especially in Europe and North America) have strict standards for herbal products that many exporters cannot meet. Inconsistent quality, lack of Good Agricultural Practices, and lack of certified organic or GMP-compliant processing reduce trust.

Nepal has not successfully built a strong country brand around its exports. While “Made in Italy” or “Product of Sri-Lanka” evoke immediate recognition in fashion or tea, “Made in Nepal” remains unfamiliar to most global consumers. This lack of international visibility prevents Nepal from capturing higher value for its unique goods. Moreover, most Nepali exporters are not digitally savvy. E-commerce remains underutilized, and online storytelling about products like Chiraito is rare.

Exporters face challenges in accessing financing for working capital, certifications, and market development. Banks are often reluctant to lend to small enterprises, especially those in agriculture and forestry. Institutions like the Trade and Export Promotion Centre and Department of Plant Resources lack adequate capacity, coordination, and outreach to rural producers.

International markets demand standardization and proof of quality. For herbal products like Chiraito, certifications such as Organic, ISO, and GMP are crucial. Unfortunately, most producers in Nepal lack the training, equipment, and institutional support to obtain these credentials. As a result, their products are rejected or downgraded in global markets.

To unlock Nepal’s export potential, especially in herbal products like Chiraito, strategic action is essential. First, Invest in Infrastructure such as roads, proper production and processing units with required cold storage to support entire units in highly yield areas. Second, simplify the export procedures and policies through clear guidelines to reduce bureaucratic delays.

Third, build a strong national brand that emphasizes the purity and heritage of Nepali products, supported by certification for instance “Organic Nepal” strategically. Fourth, improve coordination among government bodies, cooperatives, and private stakeholders to streamline support to access the market. Fifth, provide training and financial tools such as soft loans and subsidies to motivate producers. Ultimately, Nepal should be able to engage actively in regional and global platforms. 

In districts like Sankhuwasabha, Dolkha, and Darchula, local cooperatives and community forest groups have begun cultivating Chiraito using improved methods. NGOs have supported efforts to enhance traceability and post-harvest processing according to the Ministry of Forests and Soil Conservation Department of Plant Resources 2011.

Imagine Chiraito, sustainably harvested in Nepal, packaged and sold as per premium wellness product or as medicinal herbs in global markets. This vision is achievable and possible if the above-mentioned recommendation is followed by the concerned and appropriate stakeholders from government and private sector both. It will not only boost Nepal’s global identity but also help upgrade the rural incomes and to support the nation’s economy as well. 

Sabana Bhandari

Rajina Shrestha

MBA students

SAIM College, Mid-Baneshwor