𝐅𝐫𝐮𝐢𝐭 𝐃𝐫𝐨𝐩 𝐇𝐢𝐭𝐬 𝐌𝐚𝐧𝐝𝐚𝐫𝐢𝐧 𝐄𝐱𝐩𝐨𝐫𝐭𝐬 𝐚𝐬 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐑𝐮𝐥𝐞𝐬 𝐎𝐮𝐭 𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐭𝐨 𝐀𝐝𝐯𝐚𝐧𝐜𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐒𝐲𝐬𝐭𝐞𝐦

… 𝒅𝒆𝒔𝒑𝒊𝒕𝒆 𝒔𝒕𝒓𝒐𝒏𝒈 𝒆𝒙𝒑𝒐𝒓𝒕 𝒑𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆 𝒊𝒏 2024, 𝒑𝒆𝒔𝒕 𝒊𝒏𝒇𝒆𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔 𝒂𝒏𝒅 𝒄𝒍𝒊𝒎𝒂𝒕𝒆 𝒊𝒎𝒑𝒂𝒄𝒕𝒔 𝒓𝒆𝒅𝒖𝒄𝒆 2025 𝒐𝒖𝒕𝒑𝒖𝒕, 𝒑𝒓𝒐𝒎𝒑𝒕𝒊𝒏𝒈 𝒓𝒆𝒏𝒆𝒘𝒆𝒅 𝒇𝒐𝒄𝒖𝒔 𝒐𝒏 𝒊𝒏𝒔𝒖𝒓𝒂𝒏𝒄𝒆 𝒂𝒏𝒅 𝒐𝒓𝒄𝒉𝒂𝒓𝒅 𝒎𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕.

By Kezang Choden

Mandarin exports, like any other business, experience both gains and setbacks. Some years bring profits for exporters, while others result in losses, depending on production levels within and outside Bhutan and the export price per box. The year 2024 was a fairly good one for Bhutan’s mandarin exports. According to Bhutan Trade Statistics 2023 and 2024, export earnings increased to Nu 765.1 million in 2024 from Nu 573.7 million in 2023, marking a rise of 33.36 percent. Export volume also increased significantly, reaching 19,445 metric tonnes in 2024 compared to 15,370 metric tonnes in 2023, an increase of 26.52 percent. During the season, the average price per box ranged between USD 17 and USD 23.

The 2025 season, however, presents a different picture. During recent visits to orange export depots in Phuentsholing and Gelephu, exporters reported that production this year is lower than last year due to high fruit drop. Despite the reduced output, prices remain favorable, ranging from USD 20 to USD 28 per box, largely due to limited supply. Exporters expect that the decline in volume may be offset by higher prices, although the final outcome will only be known when Bhutan Trade Statistics 2026 is released.

The main reason for the low production this season is high premature fruit drop occurring just before harvest. This is largely caused by fruit fly infestation, which damages the fruit and leads to early dropping. In recent years, the problem has intensified due to the effects of climate change and poor orchard management practices. The Ministry, in collaboration with dzongkhag and gewog agriculture officers, has been carrying out advocacy and awareness programmes on proper orchard management and the safe disposal of fallen fruits. However, progress has been challenging as effective control requires a coordinated community approach. Unless all orchards within the same landscape follow the recommended measures, controlling the disease remains difficult. Good orchard management practices and collective action are therefore essential to address the issue.

Regarding queries on whether the Ministry is exploring alternative arrangements that would not require full advance payments by mandarin suppliers, the Ministry clarified that no such arrangements are being considered at this stage. It stated that advance payment terms are part of normal business transactions between buyers and suppliers and are subject to the risks involved in such deals.

From the government’s side, support is being provided through the National Crop and Livestock Insurance Scheme, which was launched on November 11, 2025 to coincide with the 70th birth anniversary of the Fourth Druk Gyalpo. Oranges are among the commodities covered under the scheme, which aims to protect farmers from risks related to climate change, pests and diseases, and human-wildlife conflict.

Farmers are required to pay a premium of 5.8 percent of the insured sum, with the premium shared equally between the farmer and the government. The Ministry has encouraged farmers to avail themselves of the scheme to safeguard their livelihoods. It also noted that mandarin suppliers could explore arrangements with farmers, such as sharing premium costs, to allow both parties to benefit from the insurance coverage.

During the 24th Meet the Press session, the Secretary of the Ministry of Agriculture and Livestock, Thinley Namgyel, said the government will not introduce any alternative payment mechanism to replace the existing advance payment system between mandarin suppliers and exporters, despite growing concerns over losses caused by citrus fruit drop. Addressing the issue, the Ministry stated that mandarin exports, like any other business, involve both profit and risk. The Secretary noted that 2024 was a strong year for the sector, with mandarin exports earning Nu 765 million. This marked an increase of nearly Nu 200 million compared to earlier years. Export volumes also rose significantly, reaching 19,445 metric tonnes in 2024, up from 15,370 metric tonnes in 2023.

However, the Ministry acknowledged that the 2025 export season, which will continue until February 2026, has seen a decline in both export quantity and value. The drop has been largely attributed to increased fruit loss caused by pest infestations and disease, which have affected overall production. The Ministry reiterated that advance payment arrangements are part of standard business practices between buyers and suppliers and remain subject to market risks.

Mandarin exporters usually make advance payments several months before harvest after inspecting orchards and assessing expected yields. Fruit drop continues to be a major challenge for the sector, worsened by poor orchard management practices. To address this, the Ministry of Agriculture and Livestock, in collaboration with local governments, has been conducting awareness programmes on orchard hygiene. These include proper disposal of fallen fruits to prevent the spread of pests and diseases. Farmers are also encouraged to adopt measures such as fly-proof netting, although the Ministry acknowledged that such interventions can be costly.

On the issue of advance payments, the Ministry reiterated that these transactions are private arrangements between buyers and sellers and that government intervention is not feasible. As a risk mitigation measure, the Ministry highlighted the National Crop and Livestock Insurance Scheme, under which mandarins are covered. Farmers can enroll in the scheme by paying a premium of 5.8 percent, with the government subsidizing part of the cost. Losses are compensated through insurance providers such as the Royal Insurance Corporation of Bhutan and Bhutan Insurance Limited. The Ministry added that exporters and farmers are encouraged to reach mutually agreed arrangements, noting that risks associated with exports are an inherent part of the trade ecosystem.

Tshomo, a resident of Tsangkha Gewog in Dagana Dzongkhag, said that she has suffered heavy losses this season as most of her oranges fell from the trees before they were ready for harvest. She attributed the problem to the impacts of climate change, which she said have increasingly affected fruit production in recent years. According to Tshomo, premature fruit drop has significantly reduced her income, making it difficult to rely on orange farming as a stable source of livelihood.

She said that despite investing time and effort in orchard management, unpredictable weather patterns and pest-related problems have made it challenging to secure a good harvest. In response to these losses, Tshomo said she is now planning to enroll in the National Crop and Livestock Insurance Scheme. She said the scheme offers some reassurance against risks that are beyond farmers’ control and can help reduce financial uncertainty. In addition to insuring her orange orchards, she also plans to insure her livestock to protect herself from potential future losses.

She added that many farmers in her community are facing similar challenges and are becoming more aware of the need for risk protection as climate-related impacts intensify. Tshomo said support mechanisms such as insurance are becoming increasingly important for farmers who depend on agriculture for their livelihoods.