Nepal is well known in the world for its precious herbs which are produced at varyingaltitudinal regimes of the country as a major source of foreign exchange where Nepal hascompetitive advantage with promising future to boost the national economy and baring thecash in the remotes parts of the country where these herbs are found.

Collection of herb in Nepal is almost an everyday chorus. The knowledge of the healingproperties of different herbs has benefited widely human community-Vidyas and the Ayurvedicdoctors who have been processing and prescribing different herb-based maedicines forgeneration to generation all over the country. Herbs can be a major source earning foreignexchange where Nepal has competitive advantage.

Growing popularity of Ayurvedic and herbal medicines has increased demand for herbsand herbal products from the developed countries due to the increased awareness about theside affects of modern medicine and chemical cosmetics.

Nepalese medicinal herbs and essential oils are good for export from Nepal. Theessential oils extracted from different medicinal plants are widely used as raw material forproducing various consumer products such as cosmetic, perfumery, medicines etc. Variousplant based essential oils are produced and exported form Nepal. Citronella oil Palmarosa oil,Sugandhakokila, Lemon grass oil, lichern extract are some prominent essential oil and extract,which are commonly produced.

The major export markets for these products are Germany, Japan, Pakistan, Italy,France, USA, UAE, U.K. Switzerland, Sweden, and Australia etc.