Govt institutions to be mandated to buy local Agricultural produce in 13th plan

The agriculture and livestock sector in Bhutan is set to undergo a substantial transformation to enhance food and nutrition security, elevate farmers' income, and boost the sector's contribution to GDP. Key initiatives outlined in the 13th Five Year Plan (FYP) will ensure the establishment and expansion of large-scale commercial farming through collaborations with the State-Owned Enterprises (SOEs), such as the Bhutan Livestock Development Corporation (BLDC), the Farm Machinery Corporation Limited (FMCL), and the Food Corporation of Bhutan Limited (FCBL), along with partnerships involving the youth and the private sector. Efforts will be concentrated on the production, aggregation, processing, and marketing of seven priority crops and three livestock products to maximize returns, and achieve economies of scale. This will be supported by a price guarantee mechanism, improved access to finance for production and aggregation, and ensured market access. Subsistence farmers will continue to receive assistance through targeted subsidies, technical support, access to small-scale credit, and enhanced agricultural inputs. Significant investments will be made to improve irrigation and water supply systems, thereby boosting farm productivity. The plan also emphasizes strengthening supply chains and logistics by exploring new domestic and international markets and forming partnerships with aggregators to enhance market efficiency. Comprehensive policy reforms will be implemented to create a conducive agri-business ecosystem. These reforms include price guarantee and insurance schemes, exploring the engagement of foreign workers to mitigate high labor costs and shortages, and enhancing agricultural land utilization. Additionally, government institutions, such as schools, hospitals, armed forces, and monastic institutions will be mandated to procure locally produced agricultural products, creating new domestic markets for the farmers and ensuring the provision of clean and healthy food to children and the sick. Research and Development (R&D) will continue to focus on native animal and plant genetics for product diversification and the development of value-added premium products. These strategic initiatives are designed to transform country's agricultural sector, ensuring its sustainability and economic viability for the future.

Earlier News & Events


Join our email list for the latest updates from FCBL.