𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐀𝐝𝐝𝐫𝐞𝐬𝐬𝐞𝐬 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬 𝐎𝐯𝐞𝐫 𝐏𝐨𝐭𝐚𝐭𝐨 𝐀𝐮𝐜𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐋𝐨𝐰 𝐏𝐫𝐢𝐜𝐞𝐬

…𝒖𝒏𝒔𝒐𝒍𝒅 𝒔𝒕𝒐𝒄𝒌𝒔, 𝒍𝒂𝒃𝒐𝒓 𝒔𝒉𝒐𝒓𝒕𝒂𝒈𝒆𝒔, 𝒂𝒏𝒅 𝒔𝒉𝒊𝒇𝒕𝒊𝒏𝒈 𝒎𝒂𝒓𝒌𝒆𝒕 𝒅𝒆𝒎𝒂𝒏𝒅 𝒑𝒓𝒐𝒎𝒑𝒕 𝒊𝒏𝒕𝒆𝒓𝒗𝒆𝒏𝒕𝒊𝒐𝒏𝒔 𝒕𝒐 𝒔𝒕𝒂𝒃𝒊𝒍𝒊𝒛𝒆 𝒔𝒂𝒍𝒆𝒔 𝒂𝒏𝒅 𝒑𝒓𝒐𝒎𝒐𝒕𝒆 𝒎𝒐𝒅𝒆𝒓𝒏 𝒎𝒂𝒓𝒌𝒆𝒕𝒊𝒏𝒈 𝒑𝒓𝒂𝒄𝒕𝒊𝒄𝒆𝒔

By Kezang Choden

The Government has acknowledged concerns raised by farmers over low potato auction prices this season and assured that the issue is being addressed with urgency and seriousness.

Bhutan produces potatoes in two main seasons. The summer crop is grown at higher altitudes and harvested between August and September, while the southern crop is planted in November and harvested during March and April. Bhutan’s main export window to India falls between June and November, when Indian production is low and demand is high. However, India’s own potato harvest begins from October to December during the Kharif season and again from February to March during the Rabi season, leaving little demand for Bhutanese potatoes during these periods.

According to the Ministry of Agriculture and Livestock (MoAL), last year’s high prices, which exceeded Nu 60 per kilogram due to shortages in India, encouraged many farmers to increase production this season. By the third quarter of 2025, total production reached about 39,488 metric tonnes, with 19,348.5 metric tonnes exported as of December 22. Many farmers also held back stocks for over two months in anticipation of higher late-season prices, despite repeated advisories from the Food Corporation of Bhutan Limited.

The situation worsened with the early arrival of fresh potato harvests from neighbouring Indian states, particularly West Bengal, from early December. Indian buyers preferred cheaper and fresher local potatoes, leaving traders with unsold Bhutanese stocks estimated at around 625 metric tonnes. At the same time, potato prices across India fell sharply between November and December, declining by up to 60 percent, further reducing export opportunities. Demand for Bhutanese seed potatoes has also declined as Indian farmers increasingly source high-quality seed from specialized producers in Punjab.

In response, the Ministry and FCBL conducted awareness campaigns across five dzongkhags, reaching more than 1,100 farmers, to discourage hoarding, promote proper curing, and encourage timely delivery to auction yards. Auction price updates were shared through messaging platforms, and public advisories were issued when markets became saturated. Although Indian traders formally withdrew from auctions in early December, government intervention led to the auction period being extended until December 22, allowing farmers to sell an additional 49 metric tonnes.

Officials also assessed potato stocks in five dzongkhags and found nearly 1,889 metric tonnes remaining at source as of December 26. A market assessment in Falakata, West Bengal, confirmed that fresh local potatoes were selling at Nu 10 to Nu 17 per kilogram, while stored potatoes fetched as low as Nu 6 to Nu 7, with Indian farmers themselves struggling to recover storage costs.

Kinley Gyeltshen, the Gup of Gangtey Gewog, said that many residents have been left with unsold potatoes after failing to deliver their produce to auction yards within the scheduled time. He explained that several farmers chose to wait in anticipation of higher prices, but the delay resulted in missed auction windows and reduced returns when they eventually attempted to sell.

According to the Gup, the situation has been particularly difficult for farmers producing small-sized potatoes, which are often left behind when auctions prioritize larger grades. By the time farmers are ready to bring their produce, market demand has already weakened, leaving them with limited options.

He also pointed out that labour shortages have worsened the problem, as farmers are unable to complete harvesting, grading and packing on time. In some cases, machines at local facility centres break down and require lengthy maintenance, causing further delays. As a result, many farmers are forced to keep their potatoes on waiting lists, increasing the risk of spoilage and further price loss.

In contrast, Kinley Gyeltshen noted that auction yards such as Phuentsholing are better equipped, with sufficient labour available to handle segregation and other post-harvest work efficiently. This difference, he said, highlights the need for improved manpower availability and better maintenance support for machinery at production centres to ensure farmers can access markets on time and secure fair prices for their produce.

To support farmers domestically, the government has engaged vegetable importers to source potatoes locally. As of December 29, twelve vendors had purchased 8.7 metric tonnes of potatoes from farmers in Phobjikha. The government stated that further measures are being explored to address immediate challenges and strengthen potato marketing systems in the long term.

An Agriculture Extension Officer from Metakha Gewog in Chukha Dzongkhag stressed the need for farmers to shift from production-driven farming to a market-led approach in order to reduce risks and secure better prices for their produce. The officer noted that many farmers currently focus on producing crops without clear market plans, which often leads to difficulties in selling and price losses.

He said farmers would benefit more by aligning production decisions with market demand, as this would help ensure stable sales and improved returns. According to the extension officer, modern marketing agents can play an important role by creating direct linkages between farmers and high-value buyers such as the Food Corporation of Bhutan Limited and other institutional purchasers. These linkages, he said, can reduce dependence on middlemen and provide farmers with more predictable outlets for their produce.

He also highlighted the importance of adopting modern systems such as smart labelling and digital traceability to strengthen market access. Farm-to-fork traceability, he explained, helps meet certification and quality standards required by both export and domestic markets. Products that meet these standards are more competitive and are able to fetch better prices.

The officer added that embracing market-led production and modern marketing practices would not only improve income security for farmers but also support the long-term sustainability of the agricultural sector by better matching supply with demand.

The government is exploring the possibility of procuring potatoes through the Food Corporation of Bhutan Limited at a reasonable price, based on the average auction rates recorded this season. Under this approach, potatoes would be stored in cold storage facilities and distributed to major domestic markets as well as public institutions, including schools, Gyalsung Academies, the armed forces and hospitals.

The Ministry of Agriculture and Livestock plans to carry out a comprehensive assessment of potato markets in Assam, West Bengal and other major producing regions in India. “The study will focus on emerging market trends, technological developments and changing buyer preferences.

Findings from the assessment are expected to guide future strategies aimed at improving competitiveness and aligning Bhutanese potato production more closely with market demand,” the MoAL said during the 23 Meet the Press (MTP).

Looking ahead, the Ministry has highlighted the importance of diversifying export destinations to reduce overdependence on a single market, particularly during years when neighbouring countries record high production. While India will remain Bhutan’s primary trading partner, the government is also exploring opportunities in complementary regional markets such as Bangladesh and Nepal, as part of a broader effort to strengthen long-term market resilience for Bhutanese potatoes.