High Demand, Low Supply: Challenges Facing Nepal's Lokta Paper Industry Amidst Global Popularity 7-Jan-2023

In recent times, the Nepali paper industry, particularly the Lokta paper sector, has experienced a surge in demand from international markets such as the US, Canada, UK, and Europe. However, the industry is grappling with significant challenges as it struggles to meet this growing global demand.

The primary hurdle faced by the Lokta paper industry in Nepal stems from a decrease in the collection of raw lokta tree bark, a crucial material for handmade paper production. Sharma Meera Shivlal Dangal, the Director of Nepal Art Shop Export & Import Pvt. Ltd, sheds light on the issue, emphasizing that local suppliers from the high hills of Magdi are unable to meet the demand due to the difficulties in jungle collection, drying, and transportation to Kathmandu.

Meera explains that while the raw material for paper production traditionally came from forests, the labor-intensive process of harvesting, drying, and transporting lokta bark to production centers has become a challenging task. The local workforce available for these tasks is insufficient, creating a mismatch between the demand and supply of raw materials.


The Lokta paper industry, with roots dating back to the 1970s, has diversified its production to meet various demands. Apart from traditional handmade papers, the industry now produces A. F. size paper required by government offices, gift wrapping papers, journal notebooks, and other paper crafts exported to third countries.

Despite the robust demand in the market, Meera points out that the industry continually grapples with shortages of raw materials and labor for paper production. Pradeep Rathore, a veteran in the industry since its inception, highlights the high demand and the vital role Lokta paper plays in generating foreign currency income for the nation.


The industry's operational areas in Balaju, Kathmandu, Pharping, and Surya Binayak in Bhaktapur currently face closures. Meera expresses disappointment in the lack of support from banks and local government authorities for the industry's operations. Despite the increasing demand and the potential to create employment within the municipality, there has been a conspicuous absence of subsidies and support for existing Lokta paper industries.

As the Lokta paper industry strives to balance international demand with local challenges, stakeholders are urging for greater recognition, support, and investments to ensure the sustainable growth of this traditional Nepali craft and its contribution to the nation's economy.

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