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Summary:

The Nepal Australia Community Resource Management Project aims to improve the utilisation of forest resources, built up over the past phases of Australian assistance through the participation of local communities in the establishment of plantations and the improvement of natural forests. Until now, utilisation by Forest User Groups of their community forest resources has been low with few products other than fuelwood, leaf litter for livestock bedding and fodder being harvested. Many of the plantations are seriously overstocked and subsequently, diameter growth is low, and potential products and benefits are being lost. To improve the current and future condition of these plantations and natural forests, improved management actions need to be undertaken through the community forestry process. Management actions produce raw forest products including poles and sawlogs. To enhance these management actions, the project aims to improve utilisation of community forests through:

•	dissemination of technologies for more effective management of plantations and natural forests, and
•	assistance to FUGs in the processing, value adding and marketing of community forest products.
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Since the start of NACRMP in 1997, the Project and DOF staff have conducted a number of activities aiming to improve utilisation. These have included skill development training of users, technical training of HMG staff, and social and organisational training of user groups. A series of stakeholder workshops have also been held to identify the constraints and opportunities for improved utilisation. A consultancy has been conducted to look at options for improved utilisation of the pine plantations of the Chautara ridge area. A second consultancy is in process to investigate similar issues but for a range of forest types and market accessibility representative of the Project districts. In addition to timber, non-timber forest products (NTFPs) are also being investigated at a number of sites.

From the results of this work, several issues have been identified that affect improved utilisation, and these are summarised below:

1	The knowledge of Forest User Group (FUG) members concerning both forest and organisational management is lacking. They are not fully aware of their rights over community forests, nor are they aware of the potential utilisation and management options of these forests. There is also a strong perception that community forests are for protection rather than utilisation.
2	Almost all operational plans are protection oriented and are incomplete in terms of scientific management. Such current operational plans include descriptions of protection measures but little mention of appropriate treatment needs, timing, and intensity of treatments according to site condition, stand density and canopy cover. Detailed silvicultural prescriptions for each of the blocks of a community forest are rarely included in operational plans nor do they contain estimates of yields of various products. Hence, most plans need to be revised to include prescriptions for improved utilisation based on yield estimates for the range of forest types contained within each community forest.
3	FUGs lack information on the markets of commercial forest products and the current demand for many community forest products may be minimal or process may be low. For a number of NTFP species, the market price is low for unprocessed materials, and often middlemen are involved in the buying and selling of herbs and medicinal plants, and these contractors reap a substantial share of the profits.
4	The members of the executive committee of each FUG work voluntarily to implement the programs of forest management and organisational management as specified by their operational plans and constitutions. Most committee members are happy to avail their time free of cost when their responsibility is to manage the forest simply to meet the subsistence product needs of the users. However, more efficient and intensive management of community forests demands substantial time and effort by of the responsible members of FUG committees, particularly of the chairperson, secretary and treasurer. Unless committee members get incentives for the opportunities they lose by their involvement in FUG activities, they may be unwilling to continue as committee members for intensive management of community forests.
5	The DOF must play a central role if the constraints to improved utilisation are to be overcome. The current policy of the DOF the commercial sales of products in excess of FUG subsistence products from community forests requires further clarification. Although the legislation and various policy statements of HMG and the DOF state the right of FUGs to do this, there are contradictions and gaps in the overall policy framework. Implementation or lack of implementation further muddies the issue. Unilateral decisions are often made by individual DFOs that differ markedly from district to district. In addition, the DOF currently does not possess the resources or trained staff to actively assist FUGs to improve community forest utilisation.

In conclusion, the low level of utilisation of community forests is one major constraint hindering the potential of community forestry in Nepal. The Project has embarked on a program to address this that is focussed at both the District and central levels. Based on the results of this program, the following recommendations are made:

•	In the Districts, the holistic approach encompassing need and problem identification, and skill development and awareness raising through training and extension will continue in conjunction with DOF and NGO staff. Fulfilling the demand for operational plan revision requires a strategic approach from all stakeholders.
•	At the central level, the Project will continue to liaise with others interested in utilisation at all appropriate forums..