𝐀𝐠𝐫𝐢𝐜𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐏𝐚𝐫𝐚𝐝𝐨𝐱 𝐏𝐞𝐫𝐬𝐢𝐬𝐭𝐬 𝐃𝐞𝐬𝐩𝐢𝐭𝐞 𝐀𝐛𝐮𝐧𝐝𝐚𝐧𝐭 𝐋𝐚𝐧𝐝 𝐚𝐧𝐝 𝐖𝐚𝐭𝐞𝐫

…𝒈𝒐𝒗𝒆𝒓𝒏𝒎𝒆𝒏𝒕 𝒓𝒆𝒇𝒐𝒓𝒎𝒔 𝒂𝒏𝒅 𝑨𝑫𝑩 𝒔𝒖𝒑𝒑𝒐𝒓𝒕 𝒂𝒊𝒎 𝒕𝒐 𝒃𝒓𝒊𝒅𝒈𝒆 𝒕𝒉𝒆 𝒈𝒂𝒑 𝒃𝒆𝒕𝒘𝒆𝒆𝒏 𝒏𝒂𝒕𝒖𝒓𝒂𝒍 𝒑𝒐𝒕𝒆𝒏𝒕𝒊𝒂𝒍 𝒂𝒏𝒅 𝒇𝒂𝒓𝒎 𝒑𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚

By Kezang Choden

Bhutan’s agriculture sector continues to face a persistent imbalance, where strong natural endowments coexist with low domestic food production and rising dependence on imports. In response, the government’s 13th Five-Year Plan outlines a dual strategy to revitalise traditional crops critical to food security while expanding high value commodities to strengthen export growth. The Asian Development Bank (ADB) is supporting this approach through a programmatic package of interventions aimed at strengthening seed systems, sanitary and phytosanitary capacity, value chains, and market access.

Despite comparatively abundant arable land and water resources, including an estimated 0.13 hectares of arable land per capita in 2023, the highest in the Bangladesh, Bhutan, India and Nepal subregion, Bhutan continues to record low domestic food production. The country remains heavily dependent on a narrow set of trading partners for both food imports and agricultural exports. This long standing gap between natural potential and actual performance has often been described as the Bhutan conundrum.

Agriculture’s contribution to gross domestic product has been declining since the 1980s. In recent years, the sector has accounted for around 15 percent of GDP, but further growth is constrained by structural challenges. Much of Bhutanese farming takes place on small and fragmented plots located on steep slopes, where mechanisation is difficult and costly. Soil fertility has deteriorated due to nutrient depletion, erosion, and topsoil compaction, a problem many older farmers describe as soil becoming tired.

Human wildlife conflict is another major constraint and is estimated to account for around 30 percent of agricultural production losses. Between November 2022 and November 2023, more than 82 percent of surveyed farmers identified wildlife related crop damage as one of their most pressing concerns. Remoteness further compounds these challenges. Long distances from motorable roads increase transport costs, raise input prices, and reduce farm gate prices, tightening already thin profit margins.

The agricultural workforce is ageing rapidly, with the average farmer now 54 years old. Labour shortages are expected to intensify as younger Bhutanese migrate to urban areas and seek employment outside agriculture. Irrigation access remains limited because of the country’s rugged terrain. Fewer than one third of cultivated areas have reliable irrigation, leaving farmers dependent on increasingly erratic monsoon rainfall. During dry periods, many fields are left fallow or cultivated less intensively.

These constraints have translated into rising food imports. The food import bill accounted for 11 percent of total imports in 2011 and increased to 18 percent by 2023. India supplies more than 90 percent of Bhutan’s food imports, creating a highly concentrated source market shaped by geography and established trade patterns. On the export side, more than 90 percent of Bhutan’s agricultural exports for decades have gone to India and Bangladesh, reflecting similar logistical realities.

Recognising these trends, the 13th Five-Year Plan seeks to reduce pressure on foreign exchange reserves by strengthening both sides of Bhutan’s agricultural portfolio. The strategy focuses on restoring the performance of traditional crops that underpin food security while expanding the export potential of high value products with niche demand in international markets.

Bhutan already produces several high value commodities that command premium prices abroad, including cordyceps, mushrooms, areca nut, quinoa, black pepper, organic coffee, and mandarin citrus. These products are suited to high end markets and offer opportunities for income diversification and rural income growth. However, their expansion faces two key constraints.

The first is compliance with sanitary and phytosanitary requirements. Bhutan lacks sufficient domestic capacity for comprehensive food testing, standardisation, and certification. For many parameters, samples must be sent to accredited laboratories overseas, increasing costs and delaying transactions. Strengthening national systems for standardisation, conformity assessment, and accreditation is essential to access and sustain niche export markets.
The second constraint is scale. Production volumes of high value crops remain low and inconsistent, making it difficult to guarantee reliable supply for international buyers and to secure long term export contracts. Improved sanitary and phytosanitary capacity can reduce transaction costs and strengthen buyer confidence over time.

In line with government priorities, the Asian Development Bank is adopting a programmatic approach that safeguards traditional crop systems while building capacity in diversified high value commodities. A key focus is potato, Bhutan’s leading agricultural export and a crop grown by more than half of all agricultural households. Productivity gains in potato farming therefore have the potential to deliver broad socioeconomic benefits and strengthen household incomes.

Potato yields in Bhutan remain below the global average and are the lowest among South Asian comparators. Productivity is constrained by poor quality seed stock accumulated over decades, low seed replacement rates, and weak post harvest handling and marketing systems. To address these gaps, ADB has approved a project that adopts a comprehensive value chain approach. With grant support from the Japan Fund for Prosperous and Resilient Asia and the Pacific, the project will strengthen the National Seed Center and the National Center for Organic Agriculture by upgrading laboratory facilities and enhancing the skills of technical staff to expand the supply of high quality seed potatoes.

At the same time, the project will build the capacity of registered private seed growers in seed multiplication, handling, storage, and quality assurance. Training programmes, with at least half of participants being women, will support certified seed production and broaden the base of reliable seed suppliers. Farmers will also be supported to adopt high yielding varieties, improve post harvest practices, strengthen market access, and build digital skills to use Bhutan’s web based agricultural trading platform.

Beyond traditional crops, ADB is also supporting Bhutan to strengthen its sanitary and phytosanitary systems to meet the requirements of key trading partners. This includes building the capacity of regulatory agencies to comply with international standards, testing protocols, and certification procedures, as well as establishing a national sanitary and phytosanitary inquiry point.

“I have been farming for more than 30 years. This land belonged to my parents and before them to my grandparents. I mainly grow potatoes, maize, and some vegetables for home consumption. In recent years, I have also planted a small area of citrus to earn some cash income.
Earlier, the land was more fertile and the rains were more predictable. Now the soil does not give the same yield even when we work harder. Rainfall has become uncertain. Sometimes it comes too late, sometimes it is too heavy, and sometimes it does not come at all,” Changlu from Mongar Dzongkhag said.

He said neighbours once supported each other during peak agricultural seasons, but many young people have since moved to towns.
“Wild animals are the biggest challenge we face. Wild boar and deer can destroy a field in just one night. We stay up at night to guard our fields, but it is not possible to do this every day. Because of these losses, some farmers have stopped growing crops like maize and vegetables altogether,” he said.
He added that they mostly depend on rainfall. There is a small irrigation channel, but during dry months there is not enough water for everyone. When the rain fails, they leave part of the land fallow because there is no point planting without water.

“For potatoes, we reuse our own seed year after year. Good quality seed is sometimes available, but it is expensive and not easy to access. Because of old seed, yields are declining and diseases are increasing. Even with manure, the soil feels weak.
Selling our produce is not easy. Traders come during harvest time, but prices change every year. Sometimes prices are good, sometimes very low. We have no storage facilities, so we are forced to sell immediately. Often, what we earn does not cover all our costs.

Potatoes are our main cash crop. We want to grow more, but without good seed, fencing, and storage, it is risky. Citrus has potential, but it takes years before the trees start generating income,” he said.
Training programmes have helped farmers learn better practices, and some support for seeds and tools has been useful. However, support does not always reach everyone.

“What we need most is protection from wildlife, better irrigation, and reliable access to quality seed. Storage facilities and better roads would also help us to get fairer prices. Without these, it is very hard to improve our income.
Most of the young people do not want to continue farming. They see it as hard work with uncertain returns and prefer jobs in towns where income is regular. If farming were safer and more profitable, more people would stay on the land,” he said.

Together, these reforms aim to create a more enabling agricultural ecosystem by strengthening productivity in traditional crops while improving compliance and scale in high value exports. As standards improve and export opportunities expand, the approach seeks to narrow the gap between Bhutan’s natural agricultural potential and its current performance, while supporting more resilient and consistent production systems.