"Due to the lack of revenue determination based on the quality of Yarsagumba, non-timber forest product traders in the eastern region of Nepal are facing difficulties in its collection and trade."

"We have always read that Yarsagumba (Ophiocordyceps sinensis) is found in Himalayan districts of Nepal such as Dolpa, Mugu, Humla, Jumla, Manang, and Rasuwa, typically at altitudes above 3,500 meters, in forests dominated by birch (Betula utilis), silver fir (Abies spectabilis), and juniper (Juniperus species). It has traditionally been used in medicine as a tonic, an immunity booster, and an aphrodisiac. Scientific studies have also confirmed its medicinal properties.

However, it may come as a surprise that Yarsa species have also been found at altitudes of 500–1,500 meters, in forests dominated by utis (Alnus nepalensis) and cardamom plantations. Field studies, as well as interactions and discussions with non-timber forest product traders, have revealed that three different types of Yarsa are being traded in the market.

Nevertheless, whether these are distinct species or simply variations in quality within the same species remains scientifically unverified. Although these three types of Yarsa are bought and sold at different market prices, the Nepalese government has set a uniform revenue rate, treating them as a single species.""The types of Yarsa are detailed below."

Type1

"The Yarsa shown in Figure 1 (ATTACHED IN IMAGE) is the highest quality Yarsa found in Nepal. This species is typically found at altitudes above 3,500 meters. According to interactions with non-timber forest product traders, it has been traded in the Nepalese market for up to 26 million NPR per kilogram. Studies indicate that the Yarsa collected from Dolpa is of exceptionally high quality. When observed with the naked eye, it appears yellow in color with a golden shine."

Type 2

"The Yarsa shown in Figure 2 is locally referred to as Majhabi caterpillar  Yarsa by residents and herbal traders. However, there has been no scientific study to confirm whether it is a lower-quality variant of the species in Figure 1 or an entirely different species.

This Yarsa is primarily found in Chimal (Rhododendron) and Gurans (Rhododendron) forests at altitudes ranging from 2,500 to 3,500 meters. Traders describe it as medium-quality Yarsa, which has been sold in the Nepalese market for 2.5 to 3 million NPR per kilogram. It is widely found in eastern Nepal, particularly in Taplejung, Sankhuwasabha, Bhojpur, and solukhumbu, and has also been reported in western Nepal. When observed with the naked eye, it appears whitish-brown with black spots."

Type 3

"The Yarsa shown in Figure 3 is locally referred to as Red caterpillar Yarsa by residents and herbal traders. However, no scientific study has confirmed whether it is a lower-quality variant of the species in Figure 1 or an entirely different species. This Yarsa is primarily found in Utis (Alnus nepalensis) and cardamom plantations at altitudes ranging from 500 to 2,000 meters. Traders describe it as low-quality Yarsa, which has been sold in the Nepalese market for 30,000 to 35,000 NPR per kilogram. It is abundantly found in eastern Nepal, particularly in Taplejung, Sankhuwasabha, Bhojpur, and Solukhumbu. When observed with the naked eye, it appears reddish-liver in color."

How Has the Collection and Trade Been Affected Due to the Lack of Quality-Based Revenue Rates?

Red caterpillar Yarsa is abundantly found in Utis (Alnus nepalensis) and cardamom plantations of eastern Nepal. Its collection is relatively easy, as farmers cultivating Utis and cardamom can conveniently collect it during Utis harvesting and cardamom pod extraction. However, Schedule 7 of the Forest Regulations 2079 mentions only a single species of Yarsa and sets a uniform revenue rate of NPR 31,000 per kilogram.

Due to the lack of quality-based revenue determination, traders are unable to purchase large quantities, complete all necessary procedures, and trade it in the international market. Traders from Taplejung suggest that if the government sets the revenue rate for Red fungus Yarsa at NPR 3,000–4,000 per kilogram, it would increase government revenue, facilitate easy sales for farmers, and enable large-scale trade.

Similarly, Majhabi caterpillar Yarsa faces the same issue. Traders recommend that the revenue rate for this type should be set at NPR 10,000 per kilogram to create a fair and feasible trading environment.

What Should Be Done at the Government Level?

The government should scientifically identify whether the Red caterpillar Yarsa and Majhabi caterpillar Yarsa found in eastern Nepal belong to the same species or different ones. Additionally, laboratory testing should be conducted to determine their quality standards, and a quality-based revenue rate should be set. This would facilitate the trade of all types of Yarsa. Meanwhile, the Division Forest Office, Taplejung, has already submitted a written recommendation to the Ministry of Forests and Environment, Singha Durbar, through the Provincial Ministry to revise the revenue rates. Additionally, as part of my personal initiative, I am preparing to send samples of these two types of Yarsa for laboratory testing to determine their scientific classification.