Nepalese handmade lokta paper is made from the fibrous inner bark of high elevation evergreen shrubs primarily from two species of Daphne (plant) (Greek: meaning "Laurel"):Daphne bholua and Daphne papyracea, known collectively and vernacularly as lokta bushes.
Lokta bushes proliferate in open clusters or colonies on the southern slopes of Nepal’s Himalayan forests between 1,600 and 4,000 m (c.5,250–13,000 ft).
Historically the handcrafting of lokta paper occurred in the rural areas of Nepal, most notably in the Baglung District. Today raw lokta paper is produced in more than 22 districts in Nepal, but finished lokta paper products are produced only in Kathmandu Valley and Janakpur.
In the 1980s the United Nations Children's Fund (UNICEF) and the Agricultural Development Bank of Nepal/Small Farmer Development Program (ADBN/SFDP) launched the CDHP (Community Development and Health Project) project to revive Nepal's indigenous paper making processes.
Women’s involvement: The poor rural women of Nepal have traditionally been the principle forest users. Current economic conditions have reinforced the local employment of women, as many men are leaving the rural villages in search of employment.