Nepali farmers cash in on a crop used to make Japanese banknotes

Nepalese farmers are turning a native shrub once used to weave ropes for domestic use into a cash crop, utilised for Japan’s new banknotes

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Women in eastern Nepal’s Illam district strip the bark off an argeli plant, which is used to make banknotes in Japan. Photo: Hari Shrestha

Published: 6:00pm, 21 Jul 2024Updated: 6:26pm, 21 Jul 2024

Puskar Jirel used to grow agricultural produce on the foothills of the Himalayas in northeastern Nepal, but six years ago, he started planting a high-value evergreen shrub, which is used to make Japanese banknotes.

Farmers, mostly in eastern Nepal, have been planting the Edgeworthia gardneri – called argeli in Nepali and mitsumata in Japanese – for decades. Its bark is exported to Japan, where it is processed to print the yen. And as demand grew amid dwindling supplies in Japan, farmers in remote Nepal have played an instrumental role in contributing to the country’s economy, while cashing in themselves.

“It’s a good source of income for many in the village, especially during the season when we are not busy in our farms,” Jirel said.

This month, Japan released its newly redesigned banknotes for the first time in 20 years, featuring historical figures and anti-counterfeiting 3D holograms. The notes are made of special paper from mitsumata – used to make the Japanese paper called washi since ancient times – which gives the paper notes “a unique colouring and texture”, according to the National Printing Bureau.

Argeli bark is dried in the sun before being shipped to Japan. Photo: Hari Shrestha

Due to a shortage of Japanese manufacturers, foreign-produced mitsumata have been used as raw material to make banknotes since 2010, including from China and Nepal, the bureau told This Week in Asia.