This paper assesses the supply chain of Yartsagunbu (Caterpillar Fungus) in Darchula district of Nepal to identify who holds the power and how they gain power for management and marketing. We recorded two types of supply chain: (i) open supply chain, driven by open market, where the product is transported to Kathmandu before export to international market, and (ii) close chain practiced by indigenous Shauka community following customary trade route to Tibet. The study suggests that government’s interventions such as providing security to traders, access to finance, organizing auction and providing market information can help to increase the bargaining power of lower level actors.