Egg prices in Bhutan remain among the highest in South Asia, placing an increasing financial burden on households and raising concerns over food affordability and nutritional security, according to a recent market assessment that recommends a more competitive import framework alongside stronger support for domestic poultry producers.
An assessment conducted by the Competition and Consumer Affairs Authority (CCAA) across May and June highlights that eggs are one of the most affordable and accessible sources of animal protein for a large proportion of Bhutanese households, particularly in rural communities and among low-income families. However, persistently high retail prices are limiting access to this essential food item, especially for nutritionally vulnerable groups such as children, pregnant women and the elderly.
According to market data, the average retail price in Thimphu reached Nu 539.31 per tray (Nu 17.98 per egg) in May, before rising further to Nu 548.25 per tray (Nu 18.27 per egg) in June. Retail prices also varied considerably across vendors. During May, egg prices ranged from Nu 500 to Nu 597 per tray, while in June the range widened slightly to between Nu 520 and Nu 600 per tray, indicating continued market volatility despite the availability of imported eggs. To moderate prices, the Food Corporation of Bhutan Limited (FCBL) imports eggs under a controlled distribution mechanism. The report notes that FCBL distributes imported eggs at Nu 330 per tray, or Nu 11 per egg, approximately 39 percent lower than the prevailing average retail price in the open market.
Despite this substantial price difference, the intervention has had limited impact on overall market prices. Although imported eggs were available in the market during June, retail prices for locally produced eggs remained largely unchanged. The competitive pressure that regulated imports were expected to generate failed to materialize. The CCAA attribute this outcome to limited import volumes and structural characteristics of Bhutan’s egg market, which continue to restrict effective price competition. The report also compares Bhutan’s egg prices with those of neighboring South Asian countries and finds that Bhutan has the highest retail prices in the region by a considerable margin.
India, Bhutan’s closest trading partner, offers the lowest egg prices among neighboring countries and serves as the most relevant benchmark because of the two countries’ geographic proximity, currency parity and long-standing free trade arrangements. At approximately Nu 18 per egg, Bhutanese consumers pay around 155 percent more than the average retail price in India—equivalent to more than two and a half times the cost of an egg across the border.
Even the FCBL’s controlled import price of Nu 11 per egg which already includes import duties, transportation costs and distribution expenses, remains 65 to 96 percent higher than prevailing Indian market prices. According to the report, this significant price gap suggests there is considerable scope to further reduce retail prices through a more competitive and liberalized import system.
The assessment argues that the current market structure—where controlled imports are handled primarily through a single state-owned enterprise—has not been effective in achieving price parity with regional markets or generating sufficient competition to lower domestic prices. It further notes that prolonged protection from imports may have unintentionally reduced incentives for domestic producers to improve efficiency and reduce production costs.
Without stronger competitive pressures, producers have limited motivation to invest in modern poultry farming practices, including improved feed management, biosecure housing systems, enhanced breeding techniques and better flock management—all of which have contributed to lower production costs in neighboring countries. Rather than relying solely on import restrictions, the report recommends adopting a balanced policy approach that combines carefully regulated imports with targeted support for local poultry farmers. Such an approach, it argues, would expose the domestic market to healthy competition while simultaneously helping producers improve productivity, reduce production costs and strengthen long-term competitiveness.
The report proposes that producer support could include investments in modern poultry technologies, improved feed systems, technical extension services, access to affordable financing and stronger disease prevention measures.
The assessment concludes that Bhutan’s high egg prices are not the result of temporary market disruptions but reflect deeper structural challenges arising from long-standing import restrictions and limited market competition.
A dual strategy that combines strategic trade liberalization with sustained investment in domestic poultry development, the report says, offers the most practical pathway to improving food affordability, strengthening nutritional security and building a more resilient and diversified egg supply chain.
Tashi Namgyal, Thimphu
