To enhance the agrifood sector, the Ministry of Agriculture and Livestock (MoAL) of Bhutan has come up with the Agrifood Sector Strategy 2034 (AFSS 2034), aimed at accelerating private sector engagement and commercialization. Currently, large-scale commercial private sector participation in the agrifood sector remains limited, prompting the government to implement initiatives and mechanisms designed to stimulate growth and investment.
To boost private sector involvement, the strategy will focus on facilitating access to finance, land, labor, and tax incentives. One of the key components of the initiative is the encouragement and support for the establishment of commercial farms, which can be initiated by private entities, farmer groups, cooperatives, and state-owned enterprises. These farms will prioritize the large-scale production of selected commodities, utilizing a turnkey project model where feasible, with operations handed over to promising private entities and entrepreneurs for sustainable management.
The strategy aims that the commercial farms are expected to adopt advanced technology, implement robust biosecurity measures, enhance production efficiency, minimize waste, and demonstrate best practices within the industry. The strategy will also facilitate foreign direct investments (FDIs) and business-to-business (B2B) collaborations, including opportunities for land leasing.
To ensure active participation, the MoAL plans to convene an annual business conclave aimed at reviewing progress, exploring further opportunities, and fostering partnerships. The Bhutan Agrifood Trade and Investment Forum (BATIF) will be held biennially to bolster private sector initiatives and cultivate international business and trade partnerships.
The government is committed to promoting vertical farming enterprises by offering fiscal subsidies, low-interest loans, administrative clearances, trade licenses, and essential tax breaks. Given their innovative nature, vertical farms are expected to attract Bhutanโs growing population of young job seekers. Moreover, a staggered production approach will be implemented to optimize year-round production cycles, helping to mitigate seasonal production barriers.
In addition to promoting new enterprises, the strategy includes support for traditional export commodities such as apples, mandarins, cardamom, areca nuts, ginger, potatoes, and legumes. This support aims to ensure market stability until emerging products can achieve market penetration and establish themselves as reliable commodities.
The agrifood sector plays a crucial role in ensuring the security and well-being of Bhutanโs populace. By refining interventions, boosting exports, fast-tracking commercialization, diversifying markets, and empowering both farmers and the private sector, the AFSS 2034 seeks to create a high-performance agrifood sector that fosters economic growth, job creation, and the achievement of Sustainable Development Goals (SDGs), all while maintaining the principles of Gross National Happiness (GNH).
As Bhutan aims for a more resilient agrifood sector, a radical shift in approach is essential to tackle both existing challenges and new opportunities. Proposing as a theory of change, the government is optimistic that these initiatives will lead to a dynamic and adaptive sector, bolstering job creation and empowering women, children, and marginalized groups throughout the country.
Sangay Rabten from Thimphu
