Non-timber Forest Products Enterprise Development: Regulatory Challenges in the Koshi Hills of Nepal

Nepal’s government policies recognise Non‐Timber Forest Products (NTFPs) enterprises as one of the potential means to contribute to poverty reduction. In practice, however, there are only a limited number of NTFPs enterprises that have been successful in creating income and employment for the poor. Drawing on the experience of promoting NTFPs enterprises in the Koshi Hills, this paper demonstrates that there are a number of regulatory issues and practical challenges that deter key processes of NTFPs enterprise development, including enterprise registration and operation, marketing and trade, taxation, and private sector investment. The paper also explores directions of policy change and possible strategies. It is argued that the proactive involvement of civil society groups, including the networks of forest‐ dependent people, is important in addressing the local level policy challenges and influencing national policy and regulations.