The primary raw materials of BCP is traditional Nepali handmade paper and it is produced from the paper makers of about five districts of western Nepal Baglung, Myagdi, Parbat, Lamjung and Gorkha. With the cooperation and coordination of Agriculture Development Bank/Nepal, Department of Forest, BCP is receiving handmade paper produced in different districts and it collects about 134.2 metric tons of lokta (raw materials of paper) from above mentioned districts.

The secondary materials are ink, dyes and packing materials which are readily available in local market. Some items are imported from foreign countries especially from India in case of large quantity.

Efforts made to protect lokta

The bark from Daphne cannabina and Daphne papyracea, "lokta" in the local language, provides the fiber from which paper is made. Nepalese lokta paper is prized for its strength and durability. Due to the high length to width ratio of lokta fibers. The paper has a high tearing strength. In addition, paper made from lokta withstands insect attacks. Temperature extremes and dampness. In Nepal and Tibet, handmade paper continues to be used for the preparation of manuscripts, land registrations, loans and legal documents, for which durability over many generations is a fundamental requirement. It is the features of lokta paper that have increased the potential for the project's success.

Since lokta is the basic raw material for producing handmade paper, a sustainable supply is essential. However, by 1984. The harvesting of lokta for the project had reduced its availability within reasonable distances of Village Development Communities (VCD) (then participating panchayats). As a solution, a management Programme was initiated in 1985. Which divided lokta resources into blocks assigned to groups of VCDs in the districts concerned, and established a four-year block harvest quota for the period of 1985 to 1988. Within each block, a rotating harvest regime was instituted in which each VCD would be permitted to harvest a specific amount of lokta at least once during the four-year period. In 1986, further protective measures were introduced following a more comprehensive inventory of lokta resources. The original four-year rotation cycle was changed to a six and then eight year rotation cycle, the time it takes for new shoots to mature and be ready for another harvest.

The Department of Forest has developed and supplied the lokta harvesters with a measuring device that shows whether or not the lokta steams are of harvestable size (6-7 cm in diameter or more than 2m in height). The correct way to harvest lokta is to cut the slender stems at ground level without destroying the main root so that new main shoot can grow and become mature for another harvest.