Kathmandu, March 30 -- While most of Nepal's exportable goods have struggled to gain momentum, kattha has emerged as a notable exception, with demand rising steadily in recent years, particularly in markets such as India, Bangladesh and Pakistan, where paan consumption remains widespread.

Paan, a traditional South Asian preparation from betel leaf wrapped around areca nut, slaked lime and spices, is commonly chewed as a stimulant and mouth freshener. Kattha-also known as catechu-is an essential ingredient in paan, valued for its astringent properties, slightly bitter taste and the deep red colour it produces when mixed with lime.

The substance is derived from the heartwood of the khair tree (Acacia catechu) through a process of extracti...