In a groundbreaking move to revitalize its agricultural sector, Bhutan has unveiled the Agrifood Sector Strategy 2034, themed “A Commitment to Innovation, Transformation, and Impact.” This long-term vision aims to modernize the agrifood industry, ensuring sustainability while uplifting the livelihoods of smallholder farmers.
Recognizing the urgency of modernization, the strategy prioritizes high-value crops and livestock products to diversify exports and counter the stagnation in traditional agrifood trade. Key crops like cardamom, ginger, and apples have struggled to sustain farming communities, making market expansion crucial. The new plan proposes strategic interventions to remove trade barriers, streamline business processes, and tap into both domestic and international markets.
Currently, Bhutan’s agrifood exports are predominantly sent to India and Bangladesh, yet there is vast potential in emerging markets like Singapore, Australia, and Japan. With increasing global demand for unique products such as asparagus and rainbow trout, Bhutan is positioning itself to leverage these opportunities to stimulate economic growth, alleviate poverty, and boost food security.
However, ensuring consistent quality and quantity remains a challenge. The Chief of the Policy and Planning Division (PPD) at the Ministry of Agriculture and Livestock (MoAL), Karma Tshering stated, “The Ministry will collaborate with the Bhutan Standards Bureau (BSB) and Bhutan Food and Drug Authority (BFDA) to enforce strict standards and certification processes.”
To further support exports, the strategy explores the feasibility of air freight to expand market access, with airlines currently reviewing costs and connectivity. Cities from Dubai to Bangkok are being considered as potential trade hubs to foster new partnerships and expand Bhutan’s agricultural footprint.
Domestically, the strategy seeks to capitalize on rising demand in public institutions and the growing tourism sector. Bhutan has witnessed a 97% surge in guest arrivals since early 2023, presenting an opportunity for agrifood producers to supply high-quality, locally-sourced foods to the hospitality industry. Additionally, the upcoming Gelephu Mindfulness City (GMC) is expected to serve as a vital market for local produce.
Yet, challenges persist. Scaling production, maintaining quality, and adhering to international standards are significant hurdles. “Our focus is on high-value, niche products targeting select markets. Commercial farming will help achieve scale, alongside assured markets for farmers,” Karma Tshering added. Branding and certification tailored to international market needs are also in development.
As part of this initiative, two “Chirup” farms have been established under the 13th Five-Year Plan (FYP) for priority crops, with land development already underway. Plans are in place to develop three to four additional commercial farms, targeting supply needs for Gyalsung Academies, GMC, schools, hospitals, and other institutions. Detailed food requirement assessments for Gyalsung have already been conducted.
Another key component is the National Institutional Feeding Programme (NIFP), aimed at ensuring nutritious local produce reaches school children, hospital patients, and youths in Gyalsung Academies. Collaborations between ministries will assess demand and promote local sourcing.
Urbanization is expected to drive a surge in food demand, with projections estimating a requirement of over 140,000 metric tons of cereals and nearly 70,000 metric tons of vegetables annually by 2034. To meet this, the strategy advocates urban farming and more efficient supply chains, ensuring urban populations have access to nutritious, locally-grown foods.
The strategy doesn’t stop at agriculture—livestock products like rainbow trout and honey are priority items, while yak products are under active study.
The Agrifood Sector Strategy 2034 signifies a bold shift towards innovation and sustainability in Bhutanese agriculture. By focusing on high-value crops, expanding market access, and strengthening local production, Bhutan aims to boost productivity, enhance food security, and promote economic growth.
As Bhutan embarks on this transformative journey, the strategy sets a comprehensive vision to meet future challenges while championing sustainability and prosperity for its farmers and communities.
Sangay Rabten from Thimphu
