Collective action can strengthen rural market linkages through the engagement of women and other marginalised groups. It can help to address challenges such as small quantities, time poverty, illiteracy and limited rural mobility. An example of successful collective action is the Kangchenjunga Landscape Conservation and Development Initiative (KLCDI). The KLCDI and implementing partners worked to upgrade the Argeli (Edgeworthia gardneri) value chain in the Panchthar district of eastern Nepal. The Argeli plant provides the raw material for the production of hand-made paper and its white fibre is in high demand for the preparation of Japanese yuan. In addition to making the value chain gender inclusive, four areas were pursued: i) process upgrading, ii) product upgrading, iii) function upgrading and iv) business enabling environment upgrading. Evidence from the KLCDI shows that collective action can improve the condition of women and the marginalised, such as smallscale farmers embedded within rural market systems. Despite these efforts, Argeli-enterprise development continues to face several challenges related to existing legislation and regulations, which also impact the women who benefit from these enterprises. Challenges include that Argeli production from private land is considered to be a forest product; hurdles based on inappropriate Non-Timber Forest Products (NTFPs) registration; establishment formalities; and additional royalties and taxation. These challenges discourage Argeli producers, mainly women and poor and marginalised groups. Effective dialogue with producers, traders and government stakeholders is necessary for the government to recognise the value of NTFPs in enhancing local livelihoods and providing benefits to marginalised groups, particularly women, so that they are encouraged to undertake NTFP-based enterprises.