Despite its noble intentions, the Bhutan Store in Perth, Australia, is struggling to gain momentum.
An official from the Cottage & Small Industry (CSI) shared the complexities of entering the Australian market particularly because of the trade barrier. “Australia is one of the most protective countries in term of food security and they are very cautious about imports which they believe might affect their native species.”
The regularity challenges posed by Biosecurity Import Conditions system (BICON) create barrier to trade, requiring import permits and adherence to specific biosecurity conditions that complicate the export process, sometimes taking weeks to get regulated. However, for the personal purposes, the procedure is straightforward. “The only challenges that we are facing is in term of importing things for commercial purposes.”
The official shared that from their side, they are trying to declare the items in accordance to the compliance of BICON. “To some extent, we would be able to negotiate bilaterally between businesses, but the most profound way would be connection between governments,” the official said, adding that the best option would be if governments could make a bilateral trade agreement. “There will be no problem in exporting the products to other countries.”
For instance, the official shared the incident where CSI transported items to the USA, which was returned. “We had to send the same items via India, which was able to import them easily due to trade agreement between the two countries. Likewise, if our government could also establish a trade agreement, it would be easier for trade.”
BICON houses the Australian government’s biosecutiry import conditions database. It identifies whether your goods requires an import permit. The importation of some products is, by law, subject to certain biosecurity import conditions. Some products are not permitted entry while other products are only allowed into Australia subject to meeting import conditions that mitigate the biosecurity risk.
Moving forward, the official stated that the CSI is looking to send products in containers. “As of now, we are in the process of identifying the products, such as Bhutanese-origin red rice and bangla chilies, which are not acceptable while importing,” the official said, adding that there is also some requirement while exporting by containers. “For instance, in chilies, it requires lots to do before exporting, starting from fumigation and de-seeding, as any products with seeds are not allowed for import into Australia. Fumigation requires technology, but there is a lack of such technology and facilities in our country, which hinders exporting.”
In terms of customer reach, there are customers from India, Nepal, Vietnam, and China in addition to the Bhutanese community in Perth. The most popular sold items include spiritual items, gifting, and chilies, amongst others. However, the official acknowledged feedback regarding high prices from customers, stating, “Being a landlocked mountainous country, we have to export everything by air, which becomes expensive.”
The official also shared other challenges such as access to finance. “We are not even qualified to apply for loans under Economic Stimulus Program, despite explaining our mandate,” the official said, adding that due to lack of access to fund, it hinders in exporting commodities. “If the aforementioned problems are made flexible and accessible, there won’t be a problem for us to export the commodities.”
Despite the prevailing challenges, the official mentioned plans to open new store in Brisbane with several Bhutanese showing interest in establishing additional stalls in Australia. “We have received many applications, and by looking at the consistent and reliable path, we plan to open a new store,” the official shared.
The store was established coinciding with the 115th National Day celebrations in 2022 with the primary objective of enhancing market access for Bhutanese commodities, particularly high-value niche products.
The establishment of Bhutan Store was initiated by the then department of industry under the Ministry of Economic Affairs, in collaboration with the Royal Bhutanese Embassy in Canberra, Australia. The store offers a variety of products including high-value niche products, 70 percent of which are food items from Bhutan. The interior decor of the store is inspired by the BHUTAN BELIEVE brand philosophy. The Bhutan Store is located at 83B Main Street, Osbourne Park in downtown Perth, Western Australia.
By Nidup Lhamo, Thimphu