Kathmandu: Following the reopening of the northern border with China, the primary buyer of the Himalayan herb yarsagumba, the price of this coveted fungus has surged to a multi-year high, reaching a staggering Rs2.8 million per kilogram, according to traders in Nepal.
Yarsagumba, scientifically known as Ophiocordyceps sinensis, is a parasitic fungus that thrives within various caterpillars in the Himalayan region. It is prized in several countries, particularly China, for its perceived aphrodisiac and healing properties. Chinese buyers have long been the key consumers of this valuable herb.
Traders in the remote western region of Mugum Karmarong Rural Municipality have begun selling the yarsagumba harvest, which was collected during the months of May and June. This prized fungus grows at elevations between 3,000 and 5,000 meters and is typically harvested just before the onset of the monsoon season.
Harvesting yarsagumba is a significant part of the livelihood for tens of thousands of Nepali villagers from 12 mountain districts in Nepal’s mid- and far-western regions. These villagers embark on arduous journeys to the Himalayan foothills, where they set up temporary camps and live for up to two months in search of this elusive fungus.
Local traders in the Mugum Karmarong Rural Municipality reportedly purchase yarsagumba from these villagers at Rs1.8 million per kilogram and then sell it to Chinese buyers in Kathmandu at the astonishing rate of Rs2.8 million per kilogram. This year, traders paid individual collectors Rs600 to Rs1,000 per piece, based on the size and quality of the fungus.
The price of yarsagumba has doubled compared to previous years due to a lower harvest, attributed in part to the COVID-19 pandemic and the closure of the Nepal-China border, which prevented local collectors from accessing the herb.
The border between Nepal and China remained closed for three years but recently reopened, beginning with the Hilsa Pass in Nepal’s northwest on May 1. The Tatopani border point in the northeast of Kathmandu also resumed operations on September 1. Despite these reopenings, the Nakchenangla Pass, a vital trading route, remains closed since 2020, posing challenges for local traders.
Nepali traders are now required to navigate various permits, taxes, and police checkpoints while transporting yarsagumba to Kathmandu for sale. Typically, they transport the fungus to Nepalgunj by bus and then fly it to Kathmandu.
The highlands of Sano Koiki, Thulo Koiki, Rimar, and Takee are key regions for yarsagumba collection, and the local government has collected significant permit fees from collectors this fiscal year, with fees varying based on residency.
The tradition of collecting yarsagumba in Nepal has transformed from an illegal activity until 2001 to a vital income source for mountain communities. While a royalty of Rs20,000 per kilogram was initially imposed, it has since increased to Rs30,000 per kilogram, with rates varying depending on the collector’s category.
The demand for yarsagumba reportedly surged after the 1993 World Athletics Championship, where Chinese athletes set new world records. This boost in demand has continued to influence its value in the market, making it a highly sought-after commodity in the region.
