Chandra Basnet started walking from Jajarkot and five days later after climbing passes more than 5,300m high, she reached the desolate tent camp of <a href="https://archive.nepalitimes.com/news.php?id=19381">yarsagumba harvesters in Upper Dolpo</a>. The 21-year-old joined the seasonal migration with 40kg of supplies on her back and a baby daughter wrapped around her front with a shawl. Her husband carried an additional 20kg of supply. “Bringing my baby was the toughest part, it is hard to carry her,” says Chandra, who is on the third week of her stay. “There are no hospitals around here, so if she falls sick we have to pack up everything and walk back.” The Basnet family is among tens of thousands who move to the high mountains on the Tibet border in the pre-monsoon <a href="https://nepalitimes.com/banner/its-yarsa-picking-time">yarsa gold rush every year</a>. Yarsagumba (Cordyceps fungus) is a fungus that grows on caterpillar larvae at between 3,500-5,000m elevation, and is prized in traditional Chinese medicine fetching up to $110,000 per kg in Shanghai.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024083018080_212fa6dfb8c231d21a6af7b7e87e0ffe9028c1feeabb22f833a19e7dfa4cc443.jpg" data-media-id="editor_2" data-image-id="2024083018080_212fa6dfb8c231d21a6af7b7e87e0ffe9028c1feeabb22f833a19e7dfa4cc443" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="The human cost of Nepal’s yarsa gold rush NT"> <figcaption>All photos: Shrijan Pandey</figcaption> </figure>  The Shey-Phoksundo National Park in Dolpo issues harvest permits every year for a month starting mid-May. This year, there were 8,584 entries – double last year’s total. But climate breakdown and <a href="https://archive.nepalitimes.com/article/nation/overharvesting-yarsa-and-income,1546">overharvesting means that yarsa pickings have fallen</a> in quantity and quality. The Basnet family spent Rs500,000 to come here, expecting high returns but were able to make only Rs200,000. Says Chandra, “We went through a lot of hardships, but hoped we could at least make up the cost of coming here to help raise our daughter, but it was not worth it.”&nbsp; Until recently, yarsa was a lucrative albeit risky undertaking in Nepal’s highlands where subsistence farmers depend on it to <a href="https://archive.nepalitimes.com/news.php?id=18321">supplement their income</a>. But it is a dangerous occupation. Just this season Karnali Province reported the death of 12 harvesters. Conditions are tough. Most pickers cannot afford proper tents and clothing to cope with the harsh weather. Most bring their children along, and they are the first to fall sick. The health post at Dho Tarap was open, but there was no staff.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024083018080_dea884b9a059c76cbbecc3cf6cae70d7de5e08b069e87637c0ad297446661546.jpg" data-media-id="editor_5" data-image-id="2024083018080_dea884b9a059c76cbbecc3cf6cae70d7de5e08b069e87637c0ad297446661546" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="The human cost of Nepal’s yarsa gold rush NT"> <figcaption>Chandra Basnet walked from Jajarkot to Upper Dolpo with 4okg of supplies and a toddler daughter.</figcaption> </figure>  Jamuna Bista, 22, died on her way back down to Rukum because she could not get medical care in time. Her family cremated her by lighting a pile of shrubs and roots gathered from the arid slopes.&nbsp; Apart from the difficult terrain, yarsa harvest is getting riskier because of higher temperatures, winter drought and unseasonal rain caused by climate breakdown. This affects the yarsa which needs a temperature of between -15°C &nbsp;to -5°C during the winter and pre-monsoon rain to grow properly and emerge partially from the ground.&nbsp; “Looking at the declining yarsa harvest and climate change, we are forced to question if yarsa will soon be extinct,” says Bishwo Babu Shrestha, warden of Shey Phoksundo National Park.&nbsp; This means a major source of livelihood for underserved families in the lower valleys of western Nepal will be in jeopardy, exacerbating the <a href="https://nepalitimes.com/news/brain-gain-into-brain-drain">outmigration trend</a>. As more pickers return empty-handed or with losses that have driven them into debt, the families struggle to support their children.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024083018080_b6e6cb98c55696a49569229554a59686ec32e39096e1a03c37857e6e2940e34e.jpg" data-media-id="editor_7" data-image-id="2024083018080_b6e6cb98c55696a49569229554a59686ec32e39096e1a03c37857e6e2940e34e" data-rendition-name="original" width="1416" height="877" loading="lazy" alt="The human cost of Nepal’s yarsa gold rush NT"> </figure>  Kunsang Dorje Gurung, 38, of Tinje in Upper Dolpo harvested his first yarsagumba when he was 12. “It was like finding a gold nugget,” Dorje recalled. “I felt an intense energy.”&nbsp; However, in 26 years since, he has noticed a steep decline in the pickings, and the few yarsa that are collected are of poor quality. “I used to make up to Rs300,000 a season back in the day but now, I barely earn Rs30,000,” he says. Gurung blames this on a prolonged drought that also sparked wildfires across the mountains. Some families even performed rituals, praying for rain and a good yarsa harvest. “I don’t have any other job,” says Gurung. “The only thing I know is collecting yarsa. If I find enough, it’s a good year. If not, I have nothing.” Researchers have also plotted the <a href="https://nepalitimes.com/banner/giving-yarsagumba-a-chance-for-regrowth">decline in yarsa harvests</a> in the past five years. A kilogram of high-quality yarsa would have between 2,500-2,900 pieces, but now even 4,000 yarsa pieces do not make 1kg.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024083018080_daa088be0c5fa992dc5bba26be84e9ee89f66b161cdc9134cb7113992f71ddf2.jpg" data-media-id="editor_9" data-image-id="2024083018080_daa088be0c5fa992dc5bba26be84e9ee89f66b161cdc9134cb7113992f71ddf2" data-rendition-name="original" width="1500" height="1043" loading="lazy" alt="The human cost of Nepal’s yarsa gold rush NT"> <figcaption>A local woman prepares cooking fuel at 4,500m in Upper Dolpo.</figcaption> </figure>  “Yarsa has been a huge source of income, but its ecological, economic, and social impacts are far-reaching,” says Suraj Upadhaya, of the School of Agriculture, Communities and the Environment at Kentucky State University.&nbsp; There is also a tax of Rs31,000 for every kg of yarsa, which pickers often avoid paying. Shey Phoksundo National Park also collects a Rs500 yarsa fee from every resident and Rs2,000 from those outside, making it easy to track the number of harvesters. Last year, Rs85,000 was collected in fees, whereas this year the figure jumped to Rs10.86 million, hinting at enormous overharvesting. Trampling is also another cause of low harvests, researchers say, increased human activity on the slopes means the top soil is compacted, preventing the next cycle of growth.&nbsp; All this means that the <a href="https://archive.nepalitimes.com/news.php?id=19382">poorest Nepalis </a>are losing an extra source of income that was allowing them to survive.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024083018080_df7b151ecb439ead56150934aba4b65786b946d46383f4ba542a61008ac6984e.jpg" data-media-id="editor_11" data-image-id="2024083018080_df7b151ecb439ead56150934aba4b65786b946d46383f4ba542a61008ac6984e" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="The human cost of Nepal’s yarsa gold rush NT"> <figcaption>Harvesters look for yarsa in steep slopes of Upper Dolpo.</figcaption> </figure>  Warns Warden Shrestha: “This is going to unleash an economic crisis in the region, families will not have the money to buy food leading to starvation.” &nbsp; The desperation is already apparent in the rise in crime. Robbers loot pickers on their way down from the mountains, stealing their yarsa or money, or both. There are also territorial disputes between locals and pickers from outside. In 2009, seven people were killed in Manang in a fight.&nbsp; Overharvesting of yarsa also impacts on many other species in the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/saving-shey-phoksundo-in-nepal,3596">Shey Phoksundo National Park’s fragile high altitude ecosystem</a> where plants take a lot longer to grow. The endangered animals here like the snow leopard, Tibetan wolf, and blue sheep are also affected by the human impact on their food chain, as well as poaching. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024083018080_4a3c0997036eec9fee4cf561f2afdbf8a42a80996d3c7f42b1a92847ce065dda.jpg" data-media-id="editor_13" data-image-id="2024083018080_4a3c0997036eec9fee4cf561f2afdbf8a42a80996d3c7f42b1a92847ce065dda" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="The human cost of Nepal’s yarsa gold rush NT"> </figure>  “We have not been able to manage this systematically,” admits Shrestha, adding that despite funding from the government, royalties, and tariff collection from locals, many of the security posts lack staff to enforce regulation. “Dolpo used to be a self-sustaining barter economy, but now everything has to be bought,” says Upadhaya whose research suggests that alternative crops like olives can provide a good source of income in the region. Yarsa’s instant reward, however, means local people cannot wait for returns from such long-term investment.&nbsp; Worryingly, much of the income generated from yarsa hasn’t been diverted to productive sectors either. Most of the locals have spent their money on renovating their houses and on consumer items. &nbsp; As Nepal’s road network expands and snakes up through Dolpo, the remotest corners of the Himalaya are being connected. This <a href="https://nepalitimes.com/banner/dazzling-dolpo">can open up new opportunities </a>including the region’s potential for religious and eco-tourism that can provide an alternative livelihood for yarsa pickers. <h2>Easy pickings</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024083018080_bebf6aaf638cf8ffeed7ac09ae1a3eb93ff4a4f206e39e291c4654d73711ea3c.jpg" data-media-id="editor_15" data-image-id="2024083018080_bebf6aaf638cf8ffeed7ac09ae1a3eb93ff4a4f206e39e291c4654d73711ea3c" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="The human cost of Nepal’s yarsa gold rush NT"> </figure>  Pratap Rokaya, 48, is a social studies teacher at Shree Shelri Drugdra School in Saldang in Upper Dolpo, and like his students, started collecting the fungus when he was 17. Despite having a government job, Rokaya says he needs the additional income.&nbsp; Such is the economic significance of yarsa that schools in the region are shut during the harvest season, allowing children to tag along with their parents so that they can also help pick with their keen eye-sight and nimble fingers. &nbsp; “Even though such long breaks are not good for students, their guardians are left with no choice,” Rokaya adds. “We are heavily dependent on yarsa because traditional farming is not enough to support families.”&nbsp; Dhanbir Bista is in Grade 5 but has not been to school for more than a month because he is up here scouring the steep slope on his hands and knees. “I feel bad for leaving school but I have to come here to support my father,” he tells us. Dhanbir’s father, Bhim Bahadur, adds, “It’s very risky to bring young ones, especially after I heard that people from my own village have died. But we need the extra pair of hands.”&nbsp;

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The human cost of Nepal’s yarsa gold rush

https://youtu.be/ZBGnZ7H7l_kThe yarsa gumba harvesting season this year coincides with the <a href="https://www.nepalitimes.com/opinion/what-is-novel-about-the-novel-coronavirus/" target="_blank" rel="noopener">coronavirus scare</a>  and as rumours spread about its supposed medicinal properties, there could be a run on the <a href="https://archive.nepalitimes.com/article/nation/overharvesting-yarsa-and-income,1546" target="_blank" rel="noopener">over-extracted Himalayan fungus</a> this year.Furthermore, with the spring trekking season wiped out by the <a href="https://www.nepalitimes.com/opinion/global-thinking-and-local-action-on-coronavirus/" target="_blank" rel="noopener">COVID-19 epidemic</a>  local people dependent on tourism income will now have to fall back on <a href="http://archive.nepalitimes.com/news.php?id=18321#.XnOPvS2B3-Y" target="_blank" rel="noopener">earnings from a fungus</a> that fetches high prices across the Himalaya in China.The highest-quality yarsa can fetch up to $70,000 per kg in China, and its collection each mid-May to mid-July can account for between 65% and 100% of a picker’s annual income. But the profits can be both a blessing and a curse.The additional income helps pay for food, education and support for aging parents, and donations to local monasteries. But the harvest season also brings an influx of tens of thousands of people each spring to Nepal’s fragile alpine ecosystem in a <a href="http://archive.nepalitimes.com/article/nation/yarsagumba-dispute-dolpa,1424" target="_blank" rel="noopener">stampede that looks like a gold rush</a>.Whole hillsides of slow-growing juniper are cut each year for fuel in Dolpo and Tibet, and there has been an increase in wildlife poaching, <a href="https://www.nepalitimes.com/banner/everest-fights-back/" target="_blank" rel="noopener">litter and garbage</a>  and free-range defecation. There has also been an increase in alcohol and drug consumption, conspicuous consumerism, the loss of traditional cultural values, violence, and even occasional murders.But here in <a href="https://nepalitimes.atavist.com/high-water" target="_blank" rel="noopener">the Barun Valley</a> the impact of the yarsa season is more benign due to closer engagement of the local community. The Barun is a beyul, a sacred valley blessed by Guru Rinpoche in the 8th century as a refuge for the faithful in times of stress. The landscape is dominated by the spectacular rock face of Shiva Danda, where three caves look like the eyes and nose of Lord Shiva. Each summer, pilgrims undertake the difficult and dangerous rock climb to the caves.There is also a pigmented cliff at Riphuk which pilgrims believe is a painting of a snow leopard by Guru Rinpoche. Ama Buchung is a rock massif in the shape of a pregnant woman, known for granting the gift of children to the devout. There is also the sacred Seto Pokhari glacial lake near Mt Makalu base camp.The main difference between the <a href="http://archive.nepalitimes.com/news.php?id=19381#.XnOPwi2B3-Y" target="_blank" rel="noopener">yarsa harvesting season</a> in the Barun and in western Nepal is terrain. While much of the yarsa in Dolpo are on rolling high-altitude meadows, in the Barun the fungus grows upon precipitous slopes dropping thousands of metres to the valleys below.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b792c9c7e80680e0646e9jpeg.jpg" alt="" width="960" height="720"/>Mt Makalu (8,485m) towers over the sacred Seto Pokhari glacial lake.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b792f9c7e80680e0646eajpeg.jpg" alt="" width="1080" height="608">Young yarsa harvesters comb the slopes high above the Barun River. Photo: TSERING SHERPAConversations with Makalu-Barun National Park officials, lodge owners, yarsa middlemen and harvesters showed that there are about 3,000 people who come to collect the fungus here every spring. Unlike in other regions in Nepal, they do not leave behind much trash, carry in their own fuelwood, and cannot remember any violence.Sherpa families from Tashigaon have been camping and harvesting yarsa here for years. Young men from Seduwa sleep in teahouses in the Valley and hike up 1,500m to the meadows each morning to pick yarsa. There are laughing school children on holiday, and everyone seems to have a good time.The main reason for the peaceful, non-competitive atmosphere is that the quality and value of yarsa in the Makalu-Barun region is not as high as that from Tibet or Dolpo. In 2016, a kilogram of Makalu yarsa fetched only $4,800 from the local middleman, as compared to $21,120 for the famously large, yellowish, and pungent smelling Dolpo yarsa.Furthermore, instead of representing up to 90% of a family’s income as it does in Dolpo, yarsa harvests here yield the same income as portering, raising livestock, lodge management or work at Makalu Base Camp that paid $20 per day. With the collapse of trekking this season, however, there could be more pressure.In the Barun Valley, yarsa has been just one more source of income in an already diversified economy. Income from yarsa has just not been worth fighting over.More importantly, villagers, the Buffer Zone Council, and the local government have developed a system to manage yarsa harvests that is fair and equitable.As a result the stunningly beautiful but fragile Barun Valley ecosystem remains largely undisturbed and intact.<h2>Yarsa gumba merchandise</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101156/636b79319c7e80680e0646ebjpeg.jpg" alt="" width="1034" height="522"><a style="font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/regulation-of-yarsa,1547" target="_blank" rel="noopener">Products containing yarsa gumba extracts</a> have become increasingly popular due to the fungus' purported health benefits. Yarsa is known to some by the nickname ‘Himalayan viagra’, and most commercial products that make use of it emphasise anti-aging and libido-inducing qualities. In China yarsa is even added to whiskey and cigarettes.Yu Chun Mei Cordyceps is a China-made skin cream (above, left) that claims to fight skin-ageing and eliminate wrinkles, black spots and pimples. The day-and-night cream claims to be made from 100% natural ingredients and is sold in various countries in Asia.Probably the most widely found product to use yarsa gumba extract is tea made from the fungus, of which the varieties are many (above, right). Manufacturers of the teas claim that they treat fatigue, sickness, kidney disease and low sex drive.Some bars in Kathmandu serve aged aila infused with yarsa gumba, which gives the spirit a tangy aroma that competes with the smell of the alcohol. A manufacturer in Nepal even markets yarsa gumba capsules as a ‘health supplement.’<h2>YARSA-NOMICS</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101156/636b79349c7e80680e0646ecjpeg.jpg" alt="" width="2144" height="580">Yarsa gumba has been used by the Chinese for hundreds of years to treat a variety of illnesses, and its more recent reputation as an aphrodisiac has added greatly to its marketability. Wealthy Chinese also use it in soups and tea as a status symbol when serving favored guests.Yarsa gumba, translated from the Tibetan as ‘summer grass winter worm’, carries the scientific name Ophiocordyceps sinensis. It is one of the most valuable medicinal fungi in the world and grows in Himalayan valleys above 4,000m from western India to Nepal, Tibet, and Bhutan.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101156/636b79379c7e80680e0646edjpeg.jpg" alt="" width="438" height="582"><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101156/636b79389c7e80680e0646eejpeg.jpg" alt="" width="1500" height="1125"><figcaption> </figcaption></figure>There are more than 200 species of Cordyceps (short for Ophiocordyceps) fungus worldwide, and in Nepal they parasitise the bodies of ghost-moth larva that live on the roots of alpine wildflowers found high up in summer yak pastures.Once contact with the larva is made, the fungus remains dormant for about four years, after which it begins to slowly consume the larva’s insides, leaving behind a shell that looks like a mummified caterpillar. The little mummy larva then slowly shifts its body to point upward toward the surface, after which a black ‘stromata’ grows from its forehead and emerges as a fruiting body 4cm long.It takes sharp eyes to find these pointed, black, stem-like mushrooms, and young children, with their keen eyesight and low proximity to the ground, are by far the most successful collectors. The stromata is ever-so-carefully pulled upward using forefinger and thumb to reveal the entire yarsa gumba body, which is then cleaned, dried, and stored in cloth bags.According to anthropologist Geoff Childs, the introduction of yarsa gumba harvesting since legalised by the Nepal Government in 2001 has ‘…contributed to economic and environmental transformations across the Tibetan Plateau and Himalayan region...than any development scheme could envision’.Alton C Byers, PhD is a mountain geographer at the Institute of Arctic and Alpine Research, (INSTAAR) University of Colorado at Boulder. In the mid-1990s, he worked as co-manager of the newly formed Makalu-Barun National Park. His recent paper on yarsa gumba harvesting in the Barun Valley is published in the journal Himalaya (v. 39, number 2)

It's yarsa-picking time

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.