They cover a substantial part of the lake area and are heterogeneous masses of vegetation, soil and organic matter, in different stages of decay.

The park was formed to preserve the endangered Eld's deer subspecies, called sangai in the Meitei language, indigenous to this area.

[14] The floating mass of matted vegetation, organic debris, and soil that constitutes a phumdi has a thickness that varies from a few centimetres to two metres.

A study was instituted, from October 2005 to July 2006, to record the vegetation composition and productivity of phumdis in areas of ranging thickness, water depth and soil pH, accumulating data in both summer and winter.

[17] The eight plant communities identified during winter and summer were Capillipedium, Leersia hexandra, Oenanthe javanica, Phragmites karka, Kyllinga triceps, Pteridium aquilinum, Zizania latifolia and Persicaria perfoliata.

[20][21][22] Mammal species consist of hog deer (C. porcinus), wild boar (Sus scrota), large Indian civets (Viverra civetta, Viverricula indica), common otter (Lutra lutra), fox, jungle cat, Asian golden cat, bay bamboo rat, musk shrew, common shrew, flying fox, and sambar (Cervus unicolor).

[6] Thinning of the phumdi in the Keibul Lamjao area has affected the habitat of the sangai, and other aquafauna, avifauna and flora are on the decline; the 35 species (5 mammals, 3 birds, 9 reptiles, 3 amphibians, 12 fishes, 2 molluscs and 1 annelid) are reported to be disappearing gradually.

[6] It is also reported that the soil of the park formed by the phumdis is highly acidic, with unsuitable pH conditions for many species of plants to grow and flourish.

[24] Recent reports indicate that locals are slicing the phumdis into sizeable pieces and towing them with canoes to sell to fish culture owners.

[23] Assessment of the total nitrogen content of the macrophyte species of phumdis indicated that the following were present in descending order: Salvinia natans (1.8%), Zizania latifolia (1.6%), Capillipedium sp.

However, they deteriorated water quality due to reduced light penetration and accumulation of organic matter in the lake ecosystem.

[24] The Planning Commission of the Government of India, decided in September 2008 that these policies would be implemented over a period of 5–6 years at an estimated cost of over Rs500 crores (US$100 million), and extended the area under management to also incorporate the water of Nambul and other rivers and their tributaries, which are primarily responsible for polluting the Loktak Lake.

[27] In order to resolve the problem of the excessive growth of phumdis that affects the lake ecosystem and local community, a study sponsored by the India–Canada Environment Facility was undertaken by the Tata Energy Research Institute (TERI) to examine efficient ways of converting phumdis into briquettes as fodder and fuel pellets, which could be used to meet both energy demands within the region.

The second option of making briquettes from the upper vegetative portion of the phumdis by mixing 12% de-oiled rice bran was found to be feasible for using them as fodder.

[28] The Planning Commission has also concurred with project proposals to engage interested individuals and private enterprises to begin the commercial venture of manufacturing compost from the phumdis and thus improve the environment of the Keibul Lamjao National Park.

However, as this approach had not been very successful, the State Government planned to construct a canal at Tera Khunou Khong Ahanbi to divert the phumdis to Manipur River.

The LDA is also implementing action plans that are economically viable and technically feasible which would result in livelihood enhancement such as evolving an attractive resettlement plan for the phumdi dwellers backed by remunerative livelihood programs and examine the introduction of fishing nets instead of Athapum, the circular shaped Phumdis floating in the lake, planted or cultured artificially for catching fish.