Agriculture ministry to carry out five major projects
Challenges confronting the agrifood sector, including the demand for and supply of agricultural and livestock products, access to finance, and market structure, among others, were discussed at the two-day ‘Agri-food Conference’ that concluded on 29th August, 2024, in Thimphu.
The agri-food conference, the first of its kind, provided participants an opportunity to discuss cross-cutting issues facing agri-food enterprises with relevant stakeholders, facilitate buyer-seller networking opportunities, and develop an action plan to address challenges in the agriculture sector, particularly those related to marketing.
Tashi Dorji, the Director of the Department of Agriculture Marketing and Cooperatives (DAMC), highlighted that the primary objective of the conference was to address the marketing challenges faced by farmers in Bhutan, which are crucial to achieving the goals of the 13th Five-Year Plan (FYP).
He added, “The ministry aims to increase the Gross Domestic Product (GDP) from the agriculture and livestock sectors from Nu 31 billion in 2023 to Nu 50 billion by 2029.”
Phub Tshering, an Agriculture Officer in Thimphu, noted, “In Bhutan, most farmers do not conduct market surveys before producing agricultural products, which later becomes a problem when they are unable to sell their goods.” He added that in Japan, the agricultural sector thrives because farmers conduct market surveys before cultivating their products.
A representative from the Policy and Planning Division under the Ministry of Agriculture and Livestock shared that they plan to play a crucial role in boosting sector performance to realize the nation’s vision of increased GDP contribution.
“Under the 13th FYP, the ministry has a total indicative outlay of Nu 14,983.15 million, allocated to five projects, including the promotion of large-scale commercial farming, building resilience among smallholder farmers, promoting high-value products for export markets, enhancing ecosystem services, and improving the overall business ecosystem,” he said.
He further explained that these five projects were designed using strategies such as the commercialization of potential commodities and support for smallholder farmers.
A representative from the Department of Trade under the Ministry of Industry, Commerce, and Employment shared that diversification and enhancement of the exportability of domestic products are being considered under the Brand Bhutan Initiative, which promotes high-value niche products through labels like “Made in Bhutan” and “Grown in Bhutan.”
Additionally, it was underlined that the development and operation of trade-related infrastructure, such as dry ports in Gelephu, Pasakha, Nanglam, and other locations, will cater to the needs of exporting produce. “The ministry is exploring free trade and preferential trade agreements with regional countries to facilitate the export of niche Bhutanese commodities.”
The World Bank, under its Security and Agricultural Productivity Project, is initiating buyer-seller networking events and promoting collaboration among farmers, aggregators, and enterprises.
Sustainable agriculture in Bhutan is a critical factor for socio-economic development and growth. As Bhutan addresses its challenges, the focus is on investing in the sustainable utilization of high-value resources for food security and livelihood.
Nationally, the renewable natural resources (RNR) sector, which employs 43.5 percent of the population on 2.75% of arable land, has seen its contribution to GDP steadily decline from 38 percent in 1992 to 14.67% in 2022.
According to the Renewable Natural Resources (RNR) 2040 strategy document for Bhutan, eleven strategies have been proposed, including enhancing production and quality of RNR commodities, increasing the sector’s contribution to the national economy, accelerating agribusiness development, formulating enabling policies, strengthening research and innovation, ensuring efficient service delivery, improving production efficiency, diversifying sustainable financing, mainstreaming sustainable resource management, and enhancing resilience to climate change impacts.
The agriculture ministry has been allocated Nu two billion from the Economic Stimulus Plan (ESP), which will be implemented by the Farm Machinery Corporation Limited, the Bhutan Livestock Development Corporation Limited, and the Bhutan Development Bank Limited, along with other financial institutions.
The two-day conference in Thimphu was organized by DAMC under MoAL in collaboration with the World Bank and the South Asian Policy Leadership for Improved Nutrition and Growth.
The conference was attended by about 85 participants from across the country, including farmers, 30 agri-food enterprises, and dzongkhag officials from various dzongkhags.
By Maisori Rai & Dhan Kumar Monger, Thimphu
