TAILIEUCHUNG - Promoting marketing of cinnamon tree products in palpa district of nepal

This paper highlights the issues occurring in the promotion of Cinnamon tree product marketing in Palpa district of Nepal. Cinnamon production and collection systems are reviewed. Case studies indicate how poor people maintain their livelihood by marketing cinnamon bark and leaf in the study area. | PROMOTING MARKETING OF CINNAMON TREE PRODUCTS IN PALPA DISTRICT OF NEPAL By Bishnu Hari Pandit1 Gopal B. Thapa2 and Michael Zoebisch2 Abstract This paper highlights the issues occurring in the promotion of Cinnamon tree product marketing in Palpa district of Nepal. Cinnamon production and collection systems are reviewed. Case studies indicate how poor people maintain their livelihood by marketing cinnamon bark and leaf in the study area. Profit and marketing margin analysis indicate most benefits are diverted to road-head and wholesale traders. Primary producers are receiving a very small share. The comparative benefit cost analysis of selling cinnamon leaf in crude form vs as processed oil after steam distillation is explored. The sensitivity of producing Cinnamon leaf oil to labor cost and market price changes is also analyzed. Selling the essential oil of cinnamon leaf to India is more profitable than selling raw Cinnamon leaf. However several legal constraints render such sale infeasible .The existing tax and royalty system includes collection and permit systems conflicting sectoral and cross sectoral policy and rules hindering the effective promotion of Cinnamon products. This study suggests that group marketing has to be promoted by Conservation Utilization of Medicinal Plants Cooperatives Limited CUMPCOL in order to generate more income for farmers locally. Group marketing can help eliminating road head traders. 1. Introduction Cinnamomum tamala is a tall tree found in the forests and farmlands in the Middle Hill Range of Nepal. Both wild and domesticated Cinnamomum species fulfill subsistence requirements of millions of people especially of members of ethnic minority groups living in locations of Nepal that are economically disadvantaged and physically remote ANSAB 1997 Parajuli 1998 Pandit 2003 . The leaf of this species is called Tejpatta and the bark Dalchini. The bark and leaves contain aromatic oil and are used as spices in the Indian subcontinent. .

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