Bhutan has seen impressive economic growth over recent decades, with per capita GDP increasing tenfold—from just USD 330 in the 1980s to USD 3,919 in 2023. However, despite this economic progress, the agricultural sector, which remains a crucial part of the nation’s economy, is facing significant challenges. According to the Agrifood Sector Strategy 2034 (AFSS 2034), while imports have surged, exports have struggled to grow at a similar pace.
Rice is the highest imported agricultural product, with imports reaching over 3,000 metric tons, followed by dairy products from 2014 to 2023. Despite the increasing demand for locally produced goods, Bhutan’s agricultural exports, particularly fruits such as oranges, have experienced a sharp decline in recent years.
Oranges, which have traditionally been Bhutan’s top agricultural export, saw a drastic drop in 2023. Although exports of cardamom and other fruits had been on the rise between 2014 and 2022, both commodities suffered setbacks in 2023. The export of cabbage lettuce also declined sharply after 2020.
While Bhutan’s hydropower industry and tourism sector have driven much of the country’s economic expansion, the agricultural industry has struggled to keep pace. This has led to growing food insecurity and increased rural displacement, as more people migrate to urban areas in search of employment opportunities.
According to the Bhutan Trade Statistics 2023, Bhutan exported over 15,370.21 metric tons of oranges, valued at Nu 573.73 million, primarily to India and Bangladesh. These exports were distributed through eight gateways, including Gelephu, Nganglam, Phuentsholing, Samdrup Jongkhar, Samtse, and Sangacholing, with the remaining two gateways, Jomotshangkha and Lhamoizingkha selling oranges in loose form without packaging.
The nation’s population, which has nearly doubled from 400,000 in the 1980s to approximately 727,145 in 2017, is expected to grow by another 100,000 by 2032. This population surge has increased the demand for food, contributing to a rise in imports.
Meanwhile, exports have stagnated, and the agricultural workforce is shrinking, especially among the youth. According to the Population and Housing Census of 2017, about 21.7% of the population has migrated to urban centers, leaving agricultural lands fallow and villages with empty households.
From 2013 to 2022, Bhutan’s agricultural workforce decreased by 33.7%, from 188,759 to 125,160 workers. Today, less than 2.96% of cultivated land is used for food production, and only 29% of wetland is irrigated. The sector also faces significant losses due to wildlife conflict, pests, and diseases, with nearly 28% of arable land remaining unused. Yields for both crops and livestock lag behind regional averages, further exacerbating food insecurity.
Structural and systemic challenges plague the agricultural sector, including small land holdings, low mechanization, high production costs, and inadequate market linkages. Alarmingly high post-harvest losses are reported, with rice suffering a 5.5% loss in 2020, and fruits such as mandarin and apples experiencing losses of up to 67%. The lack of infrastructure for sorting, grading, storing, and processing agricultural goods further stifles local markets and export opportunities.
The dire state of agricultural productivity is also impacting the nation’s diet, especially in rural regions. As of 2023, nearly 17.9% of children under five are stunted, 5.1% are wasted, and 8.7% are underweight. Vitamin and iron deficiencies are widespread. Moreover, the agrifood sector contributes significantly to Bhutan’s greenhouse gas emissions, accounting for 15% of the country’s CO2 emissions (552 Gg of CO2e).
Climate change poses an increasingly severe threat to food security and rural livelihoods. The country has experienced more frequent extreme weather events, including flash floods, droughts, and hailstorms, which have damaged crops, livestock, and essential infrastructure. Limited access to modern technology, traditional farming practices, and inadequate irrigation systems heighten the sector’s vulnerabilities. Climate models predict potential declines in staple crops like maize and rice, as well as an increase in pest and disease outbreaks, painting a bleak picture for Bhutan’s agricultural future.
Agricultural and climate experts highlighted that given these challenges, there is an urgent need for research, extension services, and the development of resilient crop varieties. Despite Bhutan’s aspirations for food self-sufficiency, the rapid urbanization, labor shortages, climate challenges, and infrastructural gaps raise serious questions about the sustainability of the agricultural sector. As the nation continues to prioritize modernization and growth, the revitalization and investment in agriculture remain essential to ensuring food security and safeguarding the livelihoods of its people.
To bridge the gap between job demand and supply, the Department provides comprehensive labor market services. This includes leveraging data from the labor market information system to offer high-quality job and talent-matching services. The aim is to support new job seekers in improving their employability through targeted engagement programs. Additionally, the Department actively promotes entrepreneurship as a viable alternative for job creation, empowering individuals to generate employment opportunities beyond traditional sectors.
Sangay Rabten from Thimphu
