The Bhutanese Leading the way.
On 7th November, the Ministry of Agriculture and Livestock (MoAL) inaugurated the Farm Machinery Corporation Limited (FMCL) Aggregation Program in Zomlimthang, Guma Gewog, Punakha. The initiative, part of the Price Guarantee Scheme (PGS) funded by the Economic Stimulus Plan (ESP), is set to update the collection, processing, and marketing of six priority crops from regions across Bhutan.
This new program aims to ensure a stable market for farmers, boost domestic production, and reduce dependency on imports.
The FMCL CEO, Wangda Dukpa, said that the program would focus on six staple crops: soybeans, peanuts, rice, wheat, maize, and quinoa. He emphasized that one of the primary goals is to provide a deserving price to farmers.
He said, “To achieve this, FMCL will consult directly with farmers to understand the prices they typically receive and then work with the ESP Secretariat to set and endorse fair buying rates. Our idea is to pay a deserving price to the farmers. When we also fix the price, we will consult with the ESP Secretariat, put it up, and they endorse the price.”
The CEO said that once FMCL purchases the crops from farmers, the harvested produce will be transported to FMCL warehouses equipped with milling facilities. Currently, there are three warehouses operating in Bajothang (Wangduephodrang), Chhuzagang (Sarpang), and Phuntshothang (Samdrupjongkhar), where grains like rice and wheat will be processed.
Additionally, FMCL has plans to establish five more warehouses in Bumthang, Mongar, Samtse, Paro, and Trashigang, bringing the total to eight. The expansion of these facilities aligns with FMCL’s broader goal to ease logistics and enhance distribution.
“The reason behind having these [warehouses] in three dzongkhags for now, and in the future in five more dzongkhags, is because FCBL headquarters and regional offices are based [in these areas], making it easier for them to plan the logistics,” he said.
FMCL intends to sell the processed produce in bulk to the Food Corporation of Bhutan Ltd (FCBL), which will then retail the products using its established nationwide marketing network.
Speaking to farmers from five gewogs in Punakha, as well as officials from Wangdue and Punakha present at the event, the CEO outlined the program’s primary objectives, “The objective of the initiative [is] firstly because many farmers in Bhutan, despite producing crops and vegetables, have a problem with accessing the market. We also want farmers to cultivate more and increase domestic production. When there is an increase in domestic [production], there is a reduction in import.”
In a move to ensure product quality and fairness, FMCL has introduced two quality standards for purchased crops. Firstly, they assess the moisture content in grains, a critical factor for proper storage and processing.
“If it the moisture content is up to standard, we take it, and if it is higher than what is accepted, we will still take it; however, we do the deduction of the grain depending on the moisture content in it. The second standard is physical purity, where FMCL checks for issues such as stones, tilled and untilled grains, and other impurities,” he said.
These measures are designed to maintain quality for both the farmers and the corporation.
Additionally, there is no minimum or maximum weight requirement for the crops FMCL will purchase, as the CEO said that it is unlikely for farmers to bring only one to two kilograms of bulk crops.
He clarified that while the launch event was held in Punakha, the program’s reach will extend beyond this region to include crops from various other areas in Bhutan.
