Deudhunga Multipurpose Cooperatives (DMC) has established distillation units in 3 different clusters in Dolakha to extract essential oils from MAP. So far, the units have extracted essential oils from 7 MAPs, collected from 18 certified forests in the district. These include wintergreen, anthopogon, juniper, calamus, mugwort, Nepalese pepper and silver fur. Himalayan Bio- Trade Ltd (HBTL) is engaged in marketing and trading of such essential oils.

All the distillation units are being managed in such a way that share of pro-poor groups have also been invested to run the enterprise. The total asset own by these three clusters have been estimated around USD28,392 of which DMC has 40% share, 18 community forests have 30% share and pro-poor user group has remaining 30% share. Nepal Swiss Community Forestry Project has contributed the share for of pro-poor users group. This inclusive model of including pro-poor people has been replicated in other parts of Nepal.

Earlier Mild steel (MS) distillation units were used for essential oil extraction. It was a very energy extensive practice having no attached boiler. Some of the essential oils produced in MS unit were prone to corrosive action. But later the project supported stainless steel (SS) distillation units with boiling system. In MS distillation unit, 150 kg of firewood was required to distil 300 Kg of raw wintergreen. The distillation yielded 1.5 kg (O.5%) of wintergreen oil in 12 hours. On the other hand, the new SS distillation unit consumed 160 kg of firewood to distil 500 kg of raw wintergreen. It produces 3.5 kg (0.7%) wintergreen oil in 11 hours. The wintergreen plant residue after oil extraction is dried and can be used as fuelwood for the boiler. Thus there would be no further requirement of firewood from forest making the product greener and climate change mitigation friendly. The SS distillation unit produces quality wintergreen oil retaining natural brown color. It also has a chain pulley system vessel cover and storage tank which significantly eased the extraction process.

In the very first year, the new distillation unit in Napke Yanmara has made a net profit of USD700 which was divided to the pro-poor user groups and participating 5 Community Forestry User Groups. Financially the figure seemed low but sale from raw material has benefitted both the local collectors, the community forests and pro-poor groups and has significantly increased the economic transaction at local level. In some instances, it was also seen that school children were also engaged in collecting wintergreen in their free time and the money earned was used to purchase books and copies for their study. They began to understand the value of local plants which were of no use to them. Earlier the MAPs are harvested unsustainably by the traders and benefit sharing was confined only to the handful of collectors.

The establishment of distillation unit has also improved local knowledge on essential oil processing technology. They were able to run distillation units independently and served as resource person in establishing new distillation units in other parts of country. This endeavor has been replicated in 16 other districts of Nepal.

In 2007 and 2008 HBTL have sold essential oil worth over USD 93,000 to the international market.