The concept of CF emerged in response partly to the failure of forest industry development model to lead socio-economic development and partly to the increasing rate of deforestation and forestland degradation and also due to the over collection of fuel wood in mid-hills.

According to Five Year Plan and Master Plan for Forestry Sector Nepal (MPFSN, 1988), government have mentioned a programme called CF for the poverty alleviation of Nepalese people by generating Income Generating Activities (IGAs), employment opportunities, management and plantation of medicinal and aromatic plants. CF is the one, which not only improves the social but also the economic conditions of the rural people and also develops the leadership in the society.

Besides, the socio-economic status of the people has been improved through community forestry but only to some limit. Due to the lack of knowledge, practices and trainings on IGAs, the people are not able to gain a good amount of tangible and intangible benefits from the forests of their own.