Himalayan Gold: The Caterpillar Fungus Trade

How a rare fungus that grows on caterpillars fetches enormous prices in China, how it transformed incomes in remote villages, and the risks of over-harvesting.

High in the Himalayas grows Ophiocordyceps sinensis, a fungus that infects caterpillars, known as yarsagumba in Nepal and India and “keeda jadi” in Uttarakhand.

Why it’s valuable

Used in traditional Chinese medicine, believed to boost energy.
Prices can reach lakhs of rupees per kilogram, making it one of the world’s most expensive biological resources.

The harvest

Villagers in Uttarakhand, Sikkim, Nepal, Bhutan and Tibet climb to high meadows in May and June to collect it.
For some families, it provides a large share of annual cash income.

Economic effects

Rising incomes and spending in remote villages.
Children sometimes miss school to collect.
Conflicts over collection areas.

Over-harvesting

A common-pool resource: open access leads to over-collection.
Studies found declining yields in many areas, possibly due to over-harvesting and climate change.
The IUCN listed it as vulnerable in 2020.

Regulation

Some areas use permits, collection seasons and community rules to manage harvests.

The spring harvest

A family in a high Uttarakhand village spends weeks crawling across alpine meadows collecting fungus. The season's earnings exceed what their farm earns all year.

Thinking natural resource booms last forever

Over-harvesting and climate change are reducing yields.

Key takeaways

Caterpillar fungus fetches very high prices in China.
It provides large cash incomes for remote villages.
Open access leads to over-harvesting.
Permits and community rules can manage harvests.