Cordyceps Industry in Bhutan

Ophiocordyceps sinensis, commonly known as cordyceps or yartsa gunbu (Tibetan for "summer grass, winter worm"), is a parasitic fungus that colonises the larvae of ghost moths (Thitarodes spp.) in alpine meadows across the Himalayan plateau. In Bhutan, cordyceps is harvested from high-altitude grasslands above 3,500 metres and has become one of the country's most economically significant biological resources. Often referred to as "Himalayan gold," the fungus commands prices that exceed the value of gold by weight, making it the world's most expensive traditional medicine ingredient. For highland communities in Bhutan, cordyceps collection has transformed from a supplementary subsistence activity into the dominant source of cash income, reshaping rural economies and drawing national policy attention.^[1]

The Royal Government of Bhutan has developed a regulatory framework governing cordyceps harvesting that balances economic opportunity for rural communities with conservation imperatives. This framework includes a permit system administered by dzongkhag authorities, a government-supervised auction mechanism, and restrictions on harvesting areas and seasons. Despite these measures, sustainability concerns persist as climate change threatens to reduce the fungus's suitable habitat by as much as 79 per cent, and illegal cross-border harvesting continues to pose enforcement challenges.^[2]

Biology and Habitat

Cordyceps is formed when the fungal spores of Ophiocordyceps sinensis infect the underground larvae of ghost moths. Over the course of autumn and winter, the fungus gradually consumes the larva, and in spring a slender fruiting body (stroma) emerges from the ground, typically 5 to 15 centimetres in length. Collectors identify the stroma protruding from the alpine turf and carefully extract the entire specimen, including the larval body, using a small knife or pointed stick. The fungus grows exclusively in high-altitude alpine meadows, typically between 3,500 and 5,000 metres elevation, in areas with specific soil moisture, temperature, and vegetation conditions.^[3]

Harvesting Season and Dzongkhags

Cordyceps harvesting in Bhutan is restricted to a single season each year, generally spanning from mid-May to late June, timed to coincide with the emergence of the fruiting body before it releases its spores. The harvest window is set by dzongkhag authorities based on local ecological conditions and is strictly enforced. Harvesting outside the designated period is illegal and subject to penalties under forest and conservation laws.

Dzongkhag administrations issue permits to eligible residents of designated gewogs. In Bumthang alone, more than 800 permits are issued annually. Permit holders are typically residents of highland communities who have traditional access to the collection grounds. Non-residents and outsiders are prohibited from collecting.^[4]

Auction System and Prices

After collection, cordyceps are sold through government-organised auctions held at the gewog or dzongkhag level. The auction system was introduced to ensure fair pricing for collectors and to create a transparent, regulated market. Buyers, typically traders and exporters, bid competitively for lots sorted by quality. The quality grading considers the size, colour, integrity, and moisture content of the specimens.

Cordyceps Auction Prices — Recent Trends

Year / Location	Highest Price (Nu/kg)	Lowest Price (Nu/kg)
2024 — Bumthang (Chhoekor)	3,341,000	565,000
2023 — Bumthang	4,300,000	655,000
2022 — Bumthang	2,800,000	~500,000
2021 — Bumthang	2,710,000	~450,000

Prices have risen dramatically over the past decade, driven by strong demand from traditional Chinese medicine markets and growing international interest in cordyceps as a health supplement. At peak prices, a single kilogramme of cordyceps is worth approximately USD 40,000 to 50,000 at the auction stage, with retail prices in East Asian markets reaching significantly higher levels. The total annual collection in Bumthang alone increased to 70.57 kilogrammes in a recent season, up from 49 kilogrammes the previous year.^[5]

Economic Impact

Cordyceps revenue has transformed highland economies in Bhutan. For communities in Laya, Lunana, Lingzhi, and high-altitude gewogs of Bumthang and Wangdue Phodrang, the annual cordyceps harvest provides the overwhelming majority of household cash income. The income is used to fund children's education, purchase household goods, invest in livestock, and build or improve housing. The economic significance is such that cordyceps collection has begun to displace traditional livelihoods, particularly yak herding, as younger community members prioritise the more lucrative harvest season.^[6]

At the national level, cordyceps contributes to rural poverty reduction in some of Bhutan's most remote and economically marginalised communities. However, the concentration of income in a single month of the year and dependence on a single biological resource creates significant economic vulnerability, particularly as climate change threatens future yields.

Government Regulation

The Royal Government regulates cordyceps through a combination of forest legislation, dzongkhag administrative orders, and the auction mechanism. Key regulatory features include: seasonal restrictions limiting collection to an approximately six-week window; a permit system restricting harvesting to residents of designated highland gewogs; government-supervised auctions as the mandatory sales channel; a royalty or cess collected by the government from auction proceeds; and restrictions on export quantities to manage sustainability.

The Department of Forests and Park Services, in collaboration with dzongkhag administrations, monitors harvesting intensity and has the authority to adjust permit numbers or close areas if sustainability thresholds are breached. Research partnerships with institutions such as the National Biodiversity Centre of Bhutan provide scientific input for management decisions.^[7]

Sustainability Concerns and Climate Change

The long-term sustainability of Bhutan's cordyceps industry faces two principal threats. First, the escalating economic value of the resource incentivises intensified harvesting pressure, and there is widespread concern that current collection rates may not be sustainable. Researchers have noted that many collectors are unaware of or unconcerned by the ecological risks of overharvesting. Second, climate change modelling predicts a dramatic reduction in suitable cordyceps habitat. A study using species distribution models projected that the current distribution of Ophiocordyceps sinensis in Bhutan could decrease by 79 per cent under future climate scenarios, with only 21 per cent overlap between current and projected future habitat.^[3]

The combined effect of anthropogenic overharvesting and climate-driven habitat loss represents a serious long-term risk to both the species and the livelihoods that depend on it. In recognition of this, some highland communities have begun exploring a return to yak herding and other traditional livelihoods as a hedge against declining cordyceps yields.

Illegal Trade

Illegal harvesting by cross-border poachers, particularly from the porous northern border areas adjoining the Tibetan Plateau, remains an enforcement challenge. Additionally, smuggling of cordyceps out of Bhutan — particularly into India — circumvents the regulated auction system and deprives both collectors and the government of fair value. The Royal Bhutan Police and forestry officials conduct periodic enforcement operations, and the Penal Code of Bhutan provides for prosecution of smuggling of rare medicinal herbs including cordyceps.^[8]

References

1. Cannon, P.F. et al. "Steps towards sustainable harvest of Ophiocordyceps sinensis in Bhutan." Biodiversity and Conservation, 2009.
2. Dorji, T. et al. "The potential impacts of climate change on the distribution of key tree species and Cordyceps in Bhutan." Ecological Modelling, 2021.
3. "Future Habitat Shifts and Economic Implications for Ophiocordyceps sinensis Under Climate Change." PMC, 2025.
4. "Bumthang cordyceps fetch the highest price ever." Kuensel Online.
5. "Cordyceps fetch highest bid of Nu 3.34 million in Bumthang." Kuensel Online.
6. "Bhutan's cordyceps collectors eye return to yak herding." Dialogue Earth.
7. "Conservation and Income Generation Opportunities from High-Value Species: Cordyceps Policy in Bhutan." ICIMOD.
8. "Prosecution of Smuggling of Rare Medicinal Herbs Like Yarsagumba." LawGratis.