Market Dimensions of Timber and Fuelwood in Kathmandu and Chitwan Districts of Central Nepal

This study endeavours to explore the sources and market structure of wood products in Kathmandu and Chitwan and aims to identify the role of government in regulating the markets of wood products. Primary data were collected through questionnaire survey, semi-structured interviews and informal discussions. The gathered data were analyzed hoth quantitatively and qualitatively. It was found that marketing of wood products was mostly in the hands of private agencies. Government-managed forests were found to be the most important source of wood products. other sources were privately grown trees and community forests. Supply of wood products to Kathmandu valley was mostly formal, whereas informal supply was recorded in Chitwan. Low stumpage value and high transaction costs characterize the less efficient marketing system of wood products. Entrepreneurs expressed much uncertainty about the future supply of wood products, mainly due to unstable government policy and complex administrative process in getting wood products.