Handmade Paper Industry in Deukhuri employing over 150 locals

By Liladhar Oli,Ghorahi, Feb. 15: The Rapti Nepali Handmade Paper Industry in Deukhuri, Dang has provided employment to more than 150 locals by using local raw materials.

At a time when small and cottage industries in the district are struggling due to economic challenges, the industry, which came into operation in March, 2023, has emerged as a successful example of local entrepreneurship. 

The factory directly employs 24 workers daily, while more than 150 locals are engaged in collecting babiyo (a type of grass used for handmade paper), contributing to their household incomes.

Damar Bahadur GC, the operator of the industry, said that he has been collecting babiyo from the local community forest and producing Nepali handmade paper worth Rs. 12.5 million annually. 

The industry has been in operation for nearly three years and generates monthly sales of around Rs. 1 million. Its products are sold not only in Dang but also in Butwal, Kathmandu, Pokhara, Birgunj, and various districts of western Nepal.

“We have not faced any problems selling our products so far. The paper produced here is reaching markets beyond Dang,” GC said.

According to GC, local residents collect babiyo from nine community forests in Deukhuri, generating raw materials worth around Rs. 2 million annually. 

In addition to babiyo, the factory sources lokta — another key raw material for handmade paper — from Panchthar and Taplejung districts, while chemicals are supplied from Bhairahawa, he said. 

The industry spends approximately Rs. 3 million annually on raw materials such as lokta not available in Dang.

The factory produces between 700 to 800 quires of handmade paper daily and manufactures five different varieties. The paper is sold at rates ranging from Rs. 1,600 to Rs. 2,200 per quire.

Initially established with an investment of Rs. 4 million, the total investment in the industry has now exceeded Rs. 10 million, he said. 

The factory currently operates eight vat machines. However, according to GC, additional equipment — including a babiyo processing machine and more vat machines — is needed to expand production capacity.

Despite plans to increase production and scale up operations, GC said that he has not received support from any government body. 

He left his job at a local health post to start the paper business and has appealed to the Lumbini provincial government for assistance, but support has not materialised. 

According to GC, only the family is involved in the industry.

Out of the ten local governments in Dang district, only Rapti Rural Municipality purchases paper from the factory. 

Chairman of Rapti Rural Municipality Prakash Bista said that if government offices in Dang prioritised purchasing Nepali handmade paper, it would significantly support local entrepreneurship.

The rural municipality had provided Rs. 200,000 in financial assistance during the establishment phase and continues to support the promotion of cottage industries by purchasing locally produced paper, he said.

He said, “There are ten local levels in the district. The provincial government is also here. If everyone can buy paper from the industry, there will be no problem in operating the industry.”