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26th October 2025, Kathmandu
The establishment of a modern Chiuri (Indian butter tree) processing and soap production industry in Marma Rural Municipality, Darchula, has successfully transformed a traditional household practice into a thriving local economy.
Soap Production from Chiuri
This joint public-private-cooperative initiative, backed by a Rs. 15 million investment, has created a robust value chain for a previously underutilized forest resource, leading to significant prosperity for local farmers and generating much-needed employment, directly addressing issues of poverty and youth migration.
Boosting Farmer Income: From Butter to Seeds and Pulp
The most immediate and profound impact of the new industry has been the drastic improvement in farmer earnings from Chiuri products. The cooperative and municipal partnership has introduced multiple, higher-value income streams for the community:
Increased Price for Raw Material
Local farmers who previously processed and sold Chiuri butter for a mere Rs. 40 per kilogram now sell the raw Chiuri seeds to the industry for up to Rs. 60 per kilogram. This represents a significant price jump for the primary raw material, increasing the profitability of Chiuri collection and cultivation. The change is transformative for farmers like Shankarsingh Mahara, who now view their Chiuri trees as the “backbone of their earnings” and are actively planning expansion.
Value from Byproducts
Crucially, the new industry also purchases the leftover pulp after the butter extraction. This pulp, which was previously a near-waste product, is a key raw material for the soap production. This system of zero-waste valorization provides farmers with an additional source of income, maximizing the economic return from every part of the Chiuri fruit and ensuring that no component of the harvest is wasted.
Modernization and Local Employment
The transition from traditional methods to industrial-scale production has brought technical upgrades and new job creation to the community.
Technological Leap
The processing unit utilizes modern machinery to replace manual extraction tools. This change not only saves time and labor but also significantly improves the quality and consistency of the output, making the products more marketable. This modernization is a key factor in transforming a subsistence activity into a competitive commercial enterprise.
Creating Jobs for Women and Youth
The industry directly addresses local unemployment and youth migration by creating employment opportunities for over seven locals, primarily focusing on women and youth. These jobs span the entire value chain, including seed collection, raw material transport, and final soap production. As worker Bhanadevi Mahara notes, the initiative has brought both “money and work opportunities close to home,” providing a viable economic alternative to seeking labor outside the village or country. The success of this industry serves as a powerful model for generating self-reliance and boosting local economies through agro-processing.
Expansion and Diversification for a Sustainable Future
The positive outcomes in Marma have not gone unnoticed, creating a ripple effect across the region and encouraging the local government to plan for future growth and product diversification.
Regional Replication
The clear success of the Marma model has drawn keen interest from neighboring areas in the far-western region. Chiuri collection centers have already been established in places like Dilashaini in Baitadi and Naugad in Darchula, indicating the potential for the Chiuri-based economy to become a major regional driver of income and development.
Product Diversification Strategy
Marma Rural Municipality’s Chairperson, Jamansingh Dhami, confirmed plans to expand the Chiuri product line, moving beyond soap to secure the long-term sustainability of the industry. The planned future products include:
Refined edible oil
Shampoo
Organic fertilizer from the remaining byproducts
A feasibility study for shampoo production is already underway, underscoring the commitment to value addition and minimizing waste. With over 1,500 Chiuri trees in the municipality, each capable of producing at least one quintal of butter, the resource base is strong enough to support this expansion.
The transformation of Chiuri from a forest-based food source to a structured commercial industry has successfully injected income, jobs, and self-reliance into Darchula, turning an overlooked resource into a highly valued commodity. This model proves the power of collaborative local investment and value addition in promoting sustainable rural development.
For More: Soap Production from Chiuri