As the Food Corporation of Bhutan Limited (FCBL) celebrates its Golden Jubilee, Chief Executive Officer of the Corporation, Dorji Tashi speaks to Business Bhutan

1. 50 years of service to the Nation! What do you personally feel?

Reaching 50 years of service is a remarkable milestone for FCBL, reflecting the dedication, resilience, and commitment of everyone involved, past and present, in upholding our mandate of ensuring National Food Security Reserve (NFSR) for the nation. Personally, it’s a moment of immense pride to witness how far FCBL has come and the impact it has had on the country. This journey, filled with challenges and triumphs, instills a deep sense of duty and fulfillment. It’s not just about reflecting on the past, but also looking forward to the future, building on this legacy to serve the nation with even greater purpose.

2. From 1974 till date, FCBL has transitioned. What are some of the major transformations?

Since inception FCBL has undergone significant transformations in these areas.

1. Expansion of Mandates: Initially focused on food distribution, FCBL’s role expanded to include agricultural marketing, procurement, and storage, directly supporting national food security and rural livelihoods.
2. Diversification of Services: Over the years, FCBL has diversified its services to enhance its sustainability and reach. This includes distributing essential items, and school feeding supplies. Additionally, FCBL established Farm Shops to provide food, essentials, and farm inputs in remote gewogs. However, due to sustainability and other challenges, these Farm Shops were eventually closed.
3. Modernization of Infrastructure:Lately, FCBL has builtmodern storage facilities for the National Food Security Reserve (NFSR), including cold stores, to reduce post-harvest losses and maintain the adequate quantity of food supplies particularly during emergencies such as pandemic 19 pandemic. The development and implementation of Potato Trade Facilitation Centers is also a recent example of such modernization. Through this facility, FCBL provides a host of services such as potato washing, drying, grading, packing and online auctioning.
4. Digital Transformation:Embracing technology, FCBL has evolved from manual processes to implementing an Enterprise Resource Planning (ERP) systemfor inventory management, supply chain operations, and financial transactions, enhancing efficiency and transparency in operations.
5. Strengthening Partnerships: FCBL has built strong partnerships with our farmers, suppliers (principal companies of India), tradersand government agencies, fostering collaborative efforts to achieve food security and agricultural sustainability. Recent examples of these partnerships include our collaboration with Farm Machinery Corporation Ltd. (FMCL) to market homegrown products like Khamtey rice, and also an alliance with Gyalsung to supply dry rations, fruits, and vegetables to the four Gyalsung Academies.
6. Sustainability Initiatives:To manage both the social and corporate mandates successfully have always been a challenge for FCBL. However, we try out best within our limited resources to fulfill both mandates as much as possible. FCBL has integrated sustainable practices into its operations, prioritizing on expense optimization measures and a multi-tasking approach to enhance efficiency. By promoting compact and streamlined management practices, FCBL is committed to optimizing resources and ensuring long-term sustainability in its operations. As part of its strategic approach, FCBL makesstrategic investment into highly sought-after essential products that has the potential to cater to the needs of the people and also make some financial returns at the same time. These efforts are aimed at ensuring the long-term sustainability of its business and strengthening its market presence nationwide.

These transformations have not only strengthened FCBL’s ability to fulfill its mandate but have also positioned it sustain its operations.

3. FCBL has completed 50 years of service. Where do you see it 50 years from now or in the future?

As FCBL looks to the future, 50 years from now, I envision it as a cornerstone of Bhutan’s food security and agricultural marketing landscape, continuing to evolve and adapt to the nation’s needs. With advancements in technology and sustainable practices, FCBL will likely lead in the digitization of supply chains, ensuring greater efficiency and transparency in food distribution and agricultural marketing. I see FCBL playing an even more significant role in empowering farmers, fostering innovation, and promoting organic and climate-resilient agriculture marketing services. It will be a model of sustainability, integrating cutting-edge practices that minimize waste and environmental impact. As Bhutan’s population grows and urbanizes, FCBL will expand its reach, ensuring that both rural and urban communities have access to nutritious, affordable food. Moreover, FCBL’s partnerships will have deepened, not just within Bhutan, but globally, making it a key player in regional food security and trade. Ultimately, FCBL will remain a trusted and vital institution, continuing to serve the nation with the same dedication and commitment that has defined its first 50 years.

4. As a State-Owned Enterprise (SOE) with social mandates, what are some challenges you face?

As a State-Owned Enterprise (SOE) with social mandates, FCBL faces several unique challenges as under:

2. Balancing Corporate Aspirationwith Social Responsibility: One of the primary challenges is finding the right balance between fulfilling our social mandates—such as ensuring food security, stabilizing market prices, and supporting rural livelihoods—and maintaining financial sustainability. Most of the time, these social objectives require us to operate areas that has no scope for profitability or areas that has higher risk of losing our resources.
3. Meeting Diverse Stakeholder Expectations: FCBL serves a wide range of stakeholders, including the government, farmers, suppliers, and the general public. Balancing their often-varying expectations is quite challenging, especially when there is a lack of coordination among stakeholders. This challenge is further compounded when FCBL is required to take on initiatives that were not part of its original plan but are undertaken to meet the demands of specific stakeholders. While these initiatives serve important social purposes, they can place additional strain on resources and operations, highlighting the complexity of managing such diverse and sometimes conflicting expectations.
4. Import disruption due to frequent regulatory changes in India: FCBL has encountered import disruptions due to frequent regulatory changes in India. These regulatory shifts have impacted the smooth flow of essential goods, complicating FCBL’s efforts to maintain consistent supply levels and meet the needs of Bhutanese consumers. This has eventually led to huge price escalation in the market nation-wide.
5. Market Fluctuations and Price Stability: FCBL is mandated with stabilizing market prices for food and essential commoditieswhich necessitates strict adherence to policies and procedures. However, market fluctuations—often driven by external factors such as the flexible pricing strategies of various entities seeking profit—pose significant challenges. Maintaining stable prices while competing with these entities is a considerable hurdle for FCBL. This challenge underscores the difficulty of balancing price stability with the need to remain competitive in a dynamic market environment for our own survival.
6. Adapting to Technological Changes: Integrating new technologies into our operations is essential for staying competitive and improving efficiency. However, the transition to digital platforms and modern infrastructure requires significant investment and continuous training, which can be challenging in a resource-constrained environment.
7. What does FCB mean to or for an ordinary Bhutanese?

For an ordinary Bhutanese, FCB is a key part of food security and stability. It represents several important aspects:

1. Reliable Supply of Essentials: FCB has established a comprehensive distribution network across nearly all Dzongkhags, ensuring access to food and essential items at affordable rates. This widespread availability is crucial for the everyday life of ordinary Bhutanese, providing them with reliable access to the necessities they need.
2. Price Stability: FCB helps protect consumers from volatile price fluctuations from the private players, making it easier for households to budget and plan their expenses.
3. Support for Local Farmers: FCB’s role in marketing agricultural products supports local farmers, helping them access broader markets and receive fair prices for their produce. This support is vital for sustaining rural livelihoods and promoting agricultural development.