Cordyceps fetches a record royalty this season
The highlander who are collecting the fungus (Cordyceps), are paying the royalty of Nu. 7,000 per kg but has been revised recently. The revision was based upon the discussion held during the stakeholder’s workshop on 18th March, 2014; many changes were made in the rules, regulation and guidelines concerning cordyceps value chain.
According to the Cordycep Marketing Report for the year 2014, the royalty amount for cordycep has been revised to Nu. 8400 per kg from Nu. 7000 per kg and it will be increased by 20 percent every after two years. The service charge amount calculated based on cordycep transaction value has been retained at 0.65 percent as in the previous years. The mode of cordycep marketing was retained as in the previous year, i.e. auctioning by respective gewog administration.
Moreover, upon the satisfaction of the fungus collectors with related to the prices of the fungus, unlike in the previous year, the report states that those collector who are not satisfied with the price being offered in the auction can withdraw their products and then market in other auction sites or sell to individuals after the completion of auctioning period. However, they have to avail the necessary documents from the respective gewog and forestry officials. The proposals on reducing the collection permit per households were also made accordingly considering the sustainability practices, however after deliberate discussion; it was retained as before which was three collection permits per household.
The reports also states that, the 2014 cordycep season saw an increased number of traders registering to participate in Cordycep auction. A total of 47 traders registered with the Department of Agricultural Marketing and Cooperatives (DAMC) for participation in cordycep auction. This year, the production quantity of cordycep sold through auction amounted to 554.609kg. And about 117.058 kg of cordyceps has been withdrawn from auction.
The reports further says, the total quantity of cordycep declared at the auction sites amounted to 671.667 kg, resulting in total amount of royalty collection to Nu.5.64 Mil-
lion. Wangduephodrang Dzongkhag saw the highest amount of cordycep collection with 423.348 kg and Lhuntse Dzongkhag the lowest with 0.471 gm. While there are 100 percent representations of collectors at auction sites like Thimphu Dzongkhag but there are cases like in Gasa Dzongkhag, where the representation of collectors at auction is not even 30%. A total of 3539 collection permit were issued by respective Gewog administration across the country, and about 2111 collectors participated during the auction.
According to the Cordycep Marketing report for the year 2014, this year, 2014 saw almost an equal amount of cordycep like in the previous year. The lowest quantity transacted was in the year 2007, where only 140.4 kg of cordyceps were transacted through auction. This year, the total quantity declared was 671.587kg, from which 554.609 kg was auctioned. As the number of bidders registering for cordycep auction has been increasing over the year, the price of cordycep has been increasing accordingly.
Initially, only about 22 traders registered with DAMC for participation during auctions but over the years, the department has been making affords in order to ensure maximum number of bidders participation hence by this year, the number of bidder registration has doubled recording one of the highest over the years i.e. 47 bidders. A total of Nu. 5.64 mn . was collected as royalty which is one of the highest till date, the report states.
The average price of cordyceps has also increased significantly, initially in 2004; the average price per kilogram of cordycep was Nu. 0.065 Mn, where as this year, 2014 the average price has reached to Nu. 0.7 Mn per kilogram of cordyceps. As in the previous years, the cordyceps brought by Lunana gewog collectors fetched the maximum price i.e. Nu. 1.326 Mn for a kilogram of cordycep. The lowest price fetched was Nu. 0.07 Mn per kilogram, at Khoma, Lhuntse, the report states.
Meanwhile, a total of eleven venues have been selected for seventeen different cordyceps collection gewogs. And the cordycep auctioning for the current season in the country has started on 10 July, 2014 at Paro dzongkhag and concluded on 3 August, 2014 at Thimphu dzngkhag. The specific venue and dates for conduct of auctioning was also fixed based upon discussion during the workshop.