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1. In Bhutan, Cordyceps (Ophiocordyceps sinensis) are only found in the wild in the northern regions of the country at 3500-4500 msl. Every spring towards the end of April the fungus starts erupting out of the ground like a blade of grass, after mummifying the host caterpillar.
2. The collection and trade of cordyceps are strictly REGULATED and MONITORED by the government to ensure sustainability. It was legalized only in 2004. Until then, the locals had been collecting illegally and everything used to be smuggled across the border into Tibet (China).
3. ONLY MOUNTAIN PEOPLE are allowed to pick cordyceps. The government opens just ONE MONTH timeframe in May-June. Each household is issued with picking permits (according to the number of able people in the household) and everyone packs up their bags and go higher into the mountains to forage for cordyceps. Each person can find up to 7 PIECES A DAY and sometimes NONE. The sites are patrolled and monitored by the army and police to keep people without permits from picking up the cordyceps illegally.
4. In July-August the government organizes AUCTIONS in different regions of the country. After drying, the mountain people bring the cordyceps to the auction yards and register and submit to the auction officials.
REGISTERED cordyceps traders converge to these auctions and compete to buy cordyceps. They are allowed to inspect every lot of cordyceps at the auction and bid accordingly. The transaction is on cash-basis only. The auctions last 1-2 days at every venue.
The cordyceps are auctioned in many small lots after the officials grade them according to dryness, size, weight, and color. GRADES are normally expressed in terms of the NUMBER of CORDYCEPS IN 1KG.
5. ONLY REGISTERED CORDYCEPS TRADERS are allowed to trade and export cordyceps. Further, every lot of cordyceps must be inspected and sealed by BAFRA (Bhutan's FDA- Bhutan Agriculture & Food Regulatory Authority). The auction documents must be produced for each lot; otherwise, BAFRA won't issue the CERTIFICATE FOR EXPORT.
After getting the certificate for export from BAFRA, the lot has to be declared at the customs department.