Locals in the hills of Nepal grow a Himalayan shrub that happens to be a crucial ingredient in the manufacture of Japan’s currency notes. It doesn’t have many uses in the world anymore, but for the yen, that most material symbol of the wealth of Asia’s most mature economy. The forests of the eastern Himalayan range are one of the most biodiverse places left on earth, and under all the pressures familiar to other such places. The villagers hanging on to Lokta’s fiber hope the Japanese retain their attachment to high-grade yen paper for generations to come.
In the village of Ilam, eastern Nepal, locals have stopped growing traditional crops—potato and maize. Until a few years ago, Agreli, was used as fence or firewood.
Now, farmers have started to plant it in their farmland, stopping to grow traditional crops, and in unused land. This dramatic change was seen after Japanese started to buy Agreli raw material from Nepal to print their currency, Yen. Locals say Japan is producing less raw material required to print currency. Another source country, China, is also exporting less as compared to the past as locals are not interested in labor-intensive tasks. Due to climate change, Japanese themselves haven’t been able to produce required raw materials. So, Japanese are requesting Nepali locals to produce raw materials as much as they can.
As demand for Agreli is high in Japan and locals are getting higher prices, everyone in eastern Nepal is attracted towards its plantation. They are making money from a once neglected plant. Unemployed youths are employed in their own home villages for six months if not for the whole year.
Some youths migrated to Gulf nations have returned to their home villages to begin Agreli plantation, harvest it and have planned to expand the plantation.
In search of job youths from neighboring districts —Panchthar, Taplejung and Khotang districts arrive in remote villages of Ilam, where most Agreli is grown. They harvest, process, store raw material and send it to Kathmandu before exporting to Japan.
Raw Material Production; Japanese Style
Pasang Sherpa, a leading Argeli farmer in Ilam, says it takes three years to get the plant fully matured for harvesting. Once it’s ready for harvesting, locals clear Argeli and boil it in a scientific way. To boil Agreli plants, farmers put oil into a metal drum, a metal pipe is connected with the plant which is wrapped with plastic in another end. The vapor generated from boiling water cooks the plants. A few hours of extreme heat and cooling makes the plant collect bark from sticks. To make the bark better its cover should be removed. Then, it’s washed, cleared a second time and dried.
“A kg of Agreli fetches Rs. 600,” said Pasang Sherpa adding, “In 2023, I produced 14 tons of Argeli raw materials,” “I’m hoping to produce 10 more tons this year.”
The local community forest has also grown Argeli. Since community forest users are busy in their own work local Argeli producing farmers buys Argeli plants.
Japan connections
Konpou Nepal, an organization exporting Argeli to Japan, collects raw materials from farmers.
Hari Gopal Shrestha, CEO of Konpon Inc, had worked as an employee of printing press in Japan. He came to know about Argeli importance and tried to grow in Nepal. Initially, Japanese had come up with Argeli seeds in Nepal. As the seed was planted farmers came to know the shrub was already around their areas.
Since then, they valued Argeli. Currently, Argeli demand is growing. According to Hari Gopal the Japanese government had demanded to produce 132 tons of Argeli raw materials. But Nepal was successful to import only 100 tons.
Nepal had started to import Argeli in 1996 with just 1700 kg. Previously, China used to send up to 200 tons of Argeli raw materials. But their export has decreased to 12-15 tons. “So, the Japanese are seeking more raw materials from Nepal,” said Shrestha, “We haven’t been able to meet their demand.”
Argeli naturally grows in the forest. Locals residing between 1800 -2600 meters altitude can grow this cash crop in their farmland as well. Locals in Ilam, Paanchthar, Taplejung, Tehrathum, Ramechhap and Dolakha are now doing Argeli farming.
Until two decades ago, Nepalis used to produce handmade paper in their traditional way. In view of importing Argeli raw materials, Japanese trained Nepali farmers to produce quality raw materials. Locals followed the Japanese method to process raw materials. And now the Argeli from Nepal is considered the best in terms of quality. The price of Argeli is increasing.
Even after buying products from farmers the importer refines in Kathmandu to ensure quality. As per standard rules of printing currency every 20 years Japan is printing currencies this year. So, they have been demanding more raw materials. The new currencies will be out in early July 2024.
The Japanese government exports other materials for currency printing from Bangkok, Philippines, Indonesia. But fiber from Argeli is important to maintain the color of their currency. The color of Japanese currency and our raw materials looks ditto.
This year, seven containers arrived at Satdobato of Lalitpur, where Konpou Nepal has its headquarters. The containers headed to Birgunj first, then to Calcutta port and Singapore. It took 40 days to take raw materials to Japan.
“As a Nepali I’m sending materials to Japan to print Japanese currency,” said Hari Gopal Shrestha, “For me, it’s a proud moment. I’ll be doing my best to serve Japanese and create job opportunities for people in rural Nepal.”