Nu 10.23 billion has been allocated to the RNR sector to enhance food security and GDP growth

Key areas include increasing production of priority crops and high-value livestock, facilitating markets and investing in irrigation infrastructure

Y.K. Poudel

The Ministry of Agriculture and Animal Husbandry (MoAL) has allocated an amount of Nu 10.23 billion for the Renewable Natural Resources (RNR) sector under the XIII Plan with a view to enhancing food and nutrition security, improving farmers’ income and increasing the sector’s contribution to the Gross Domestic Product (GDP).

This is 10 percent of the ministry’s total budget. In 2023, the agriculture and livestock sector contributed Nu 36.479 million to GDP, which is expected to grow to Nu 58.698 million by 2029.

The government also plans to boost the sector’s growth by 8.3 per cent under the 13th Plan by giving priority to high-tech agriculture and establishing and expanding large-scale commercial farming.

These activities will be implemented in partnership with the Bhutan Livestock Development Corporation, Farm Machinery Corporation Limited, Food Corporation of Bhutan Limited, youth groups and the private sector.

MoAL also plans to increase commercial production, processing and marketing of seven priority crops – asparagus, broccoli, quinoa, strawberries, cauliflower, buckwheat and adzuki beans – through 100 percent foreign direct investment in the agriculture sector. In addition, the ministry will prioritize the production of high-value livestock products, including rainbow trout, sturgeon caviar, yak cheese and fiber, putka and comba honey, yagyu cheese and royal jelly.

Earlier, Agriculture and Livestock Minister Younten Phuntsho said the ministry would support the development of the agriculture and livestock sectors through a price guarantee mechanism, access to production and aggregation financing, and market access.

“At the same time, the ministry will continue to provide assistance to subsistence farmers through targeted subsidies, technical support, access to small-scale credit and improved agricultural inputs,” Lyonpo said.

The ministry will also make significant investments in irrigation projects. Nu 343.671 million has been earmarked for the fiscal year 2024-25. Increased investment in irrigation and water supply is aimed at improving farm productivity.

Under the 13th Plan alone, 24 new irrigation projects have been planned, and a total of 83 projects will be implemented by 2029.

The budget also includes $3 billion in concessional financing to support commercial and low-emission priority crops and livestock production such as rice, wheat, corn, poultry, pork and avocados.

According to Lyonpo, the ministry is also considering strengthening new markets through trade agreements with Nepal and Bangladesh for potatoes and with Singapore, Malaysia and Thailand for other high-value agricultural products.

The aim is to increase the share of the agricultural sector in GDP to Nu 50 billion by the end of the 13th Plan and create jobs for 125,160 people. As of today, the sector employs 43.5 percent of the total population.

The government will also continue to implement the One Million Fruit Tree and Valuable Fruits Saplings Project to increase production of valuable fruits and nuts from 37,997 metric tonnes (MT) to 73,862 MT in fiscal year 2024-25 and to 104,024 MT by 2029.

The ministry also plans to set up four food and agriculture centres at Paro, Sarpang, Mongar and Wangdue under the 13th Plan.

To achieve sufficient rice supply, the government will continue to invest in irrigation canals and chain link fences.

The target for the next five years is to produce 54,040 tonnes of rice per year, with an annual increase of 45,087 tonnes in fiscal year 2024-25.

According to the Food Security and Nutrition Policy 2023, the agriculture and livestock sectors are projected to provide food for approximately 837,288 people by 2034.