Tibet recently issued government regulations regarding staple local specialties. This move follows last year’s decree that prescribed an official certificate for Chinese caterpillar fungus diggers. Regulations specify the conduct of business activities ranging from collection to sales in the stipulated local specialties. Some industry observers consider the move an initiative to curb the local specialties racket.

The Chinese caterpillar fungus, together with other rare herbs, gold and silver wares, as well as cultivated rare animals, all fall in the province of the regulations.

Due to its special geography and climate, Tibet is home to a variety of distinctive fauna and flora. Tibet annually contributes 60 percent of the Chinese caterpillar fungus to the market, bringing in 2.1 billion yuan (US$280 million) in local revenues. 

Dubbed as “soft gold”, Chinese caterpillar fungus has seen a price hike since the 1980’s from several-hundred yuan to over 80,000 yuan (US$10,692) per kilogram.

The Tibetan Administration for Industry and Commerce has pledged to monitor the market because it is imbued with fakes and hypes.

The regulations set the rights and obligations for all dealers engaged in the local specialty market, and prohibit criminal misconduct, such as adulteration and forgery, etc.

(China.org.cn by He Shan, October 25, 2007)