The Farm Machinery Corporation Limited (FMCL) has launched an aggregation program to boost Bhutan’s agricultural sector. As of February 5, 2025, the Corporation has collected over 734 metric tons (MT) of priority crops valued at Nu 33.55 million.
FMCL and the government discovered that Bhutan is importing crops that are grown domestically, alongside a decline in local production. To address this, the Aggregation Program was launched on November 7, 2024, to consolidate and distribute essential crops, aiming to enhance the agricultural sector.
Supported by the Price Guarantee Scheme (PGS) under the Economic Stimulus Plan (ESP), the program focuses on six key crops: rice, wheat, quinoa, soybean, peanut, and maize. Its objectives are to improve food security, provide a stable domestic food supply, and empower farmers through better market access and fair pricing.
Among the six priority crops, maize was the highest collection at 300 MT, while wheat was the lowest at 26 MT. Maize was primarily sourced from Trashigang, rice from Paro, and wheat from Bumthang.
However, the program faced challenges with quinoa, as Tashiyangtse was identified as the main production area, but collection has yet to begin.
According to Yangchen Pelmo, the Deputy General Manager, FMCL aims to offer farmers stable market opportunities, fair prices, and support services such as storage and machinery rental. With strategically placed warehouses and processing facilities, the program seeks to minimize post-harvest losses, improve food quality, and ensure a steady local food supply. This marks a transformative step toward strengthening food security, empowering farmers, and fostering a resilient agricultural sector in Bhutan.
However, Pelmo noted challenges with inadequate facilities at collection points, especially in the east, where transportation options were limited. “Resorting to Indian highways and paying toll fees was a significant challenge,” Pelmo said. Additionally, farmers lacked sufficient storage space. In one instance, FMCL had to reject two truckloads of crops because of contamination from old stock. “FMCL is committed to maintaining quality standards.”
The FMCL also faced lower-than-expected collections due to limited production and an aging farming population. For example, FMCL hoped to procure 500 MT of Khamtey rice, a local variety, but only 50 MT was collected. During the collection, FMCL observed a 60% to 40% mix of varieties in the Khamtey paddy, which provided an opportunity to educate farmers on the importance of grain purity.
As per FMCL guidelines, last year’s harvests are not accepted, impurity levels must not exceed 5%, and moisture content must not exceed 14% (with exceptions up to 16%, subject to deductions).
Despite these challenges, farmers have been supportive of the initiative, with many seeking advice on expanding cultivation in the future. FMCL officials noted that for 2025, though soybean and peanut were added to the program, they expect to aggregate more quantity as they couldn’t get more this time. The Corporation will also fully implement its milling process. In 2024, FMCL acknowledged that it had not informed farmers about the crop aggregation initiative in advance.
Sangay Rabten from Thimphu
