Projects Resilient Landscapes Luxembourg
Medicinal and Aromatic Plants
in Regenerative Agriculture, Nepal
About
This high-value regenerative agriculture project boosts Nepal’s smallholder farming by leveraging its geographic advantages to expand Medicinal and Aromatic Plant (MAP) production through regenerative agriculture and advanced processing techniques. By strengthening the MAP value chain, the initiative attracts local and international investments, creating sustainable economic, climate resilient opportunities and improving farmer livelihoods.
Challenge
Nepal’s agriculture, predominantly reliant on smallholder farmers, faces persistent low productivity and lacks investments, keeping communities trapped in a cycle of poverty and vulnerable to changes in climate.
Solution
This high-value regenerative agriculture project capitalizes on Nepal’s unique geographical advantages to enhance MAP production through regenerative farming practices and advanced processing techniques, fostering sustainable growth and access to market.
Market
By strengthening the MAP value chain, this initiative attracts investment from local financial institutions and global industries, unlocking new economic opportunities and driving long-term prosperity for Nepal’s farming communities.
Story
Transforming Nepalese Agriculture: A Science-Driven Initiative for Sustainable Growth and Biodiversity Conservation
In West Nepal, a transformative agricultural initiative is taking root, promising to reshape the agricultural landscape and uplift local communities. This initiative leverages science and nature-based solutions to combat climate change and biodiversity loss while fostering economic growth.
With its diverse topography—from the Terai lowlands to the Himalayan peaks—Nepal is home to over 800 varieties of MAPs. These plants, valued for their essential oils, represent a burgeoning global market projected to reach USD 40.1 billion by 2030. Despite this potential, Nepal’s MAP sector remains underdeveloped, contributing less than 2% of the country’s exports.
Recognizing this untapped opportunity, RLL has launched this initiative to revolutionize Nepalese agriculture. The project focuses on cultivating high-demand MAPs—such as mentha, chamomile, and palmarosa—which can be grown sustainably in rotation with staple crops. The Terai lowlands, particularly Banke and Bardiya districts, have been identified as ideal due to their favorable soil, climate, and infrastructure.
However, this initiative is about more than just increasing production; it aims to build a resilient and sustainable agricultural ecosystem. By providing smallholder farmers and Community Forest User Groups (CFUGs) with training, inputs, storage and distillation units, the project enhances productivity and quality. Many farmers, eager to diversify their activities, will be the direct beneficiaries, implementing project activities on their land.
At its core, collaboration drives this initiative. A wide network of stakeholders—including local banks, government agencies, NGOs, and private sector leaders—is working together to ensure successful implementation. Local implementation partners will support the RLL team on the ground, ensuring operational efficiency and technical support.
The project also prioritizes research and development. Technical partners In Nepal, such as buyers of essential oils and organizations working with farmers, will provide expert guidance to improve cultivation and processing techniques for added value. National MAP institutions will further strengthen value chain actors, enhancing their technical expertise and export capacity.
A key pillar of this initiative is financial sustainability. International and local financial institutions will provide farmers with upfront investment, enabling them to acquire essential skills and processing equipment. This support will empower farmers to generate higher incomes and reinvest in their own growth.
The impact extends far beyond economic gains. By promoting organic practices, regenerative and sustainable land use, the project aims to restore soil fertility, reduce erosion, enhance landscape resilience and mitigate climate change. Additionally, it seeks to empower farmers, improve rural livelihoods, and foster better human-wildlife cohabitation.
As this initiative unfolds over the next decade, it holds the potential to serve as a model for Nepalese smallholder agriculture, showcasing the power of science-driven impact investment in driving sustainability and economic progress.