The Bhutanese Leading the way.
Bhutan’s agricultural exports took a significant turn in 2024 as trade markets expanded beyond India and Bangladesh. With fresh produce, spices, fruits, and processed foods reaching buyers in countries such as the United States (US), Vietnam, Thailand, and Australia, the shift signals Bhutan’s growing ambition to diversify its export portfolio and reduce overreliance on its two traditional markets.
For decades, more than 90 percent of Bhutan’s agricultural exports have gone to India and Bangladesh due to geographical proximity, shared infrastructure, and historic trade relationships. However, this dependency has also exposed Bhutanese farmers and traders to risks such as price volatility, trade disruptions, and limited buyer competition. The government, recognizing the need for a broader strategy, has been working to open new international markets to stabilize the sector and improve long-term economic resilience.
The Department of Agricultural Marketing and Cooperatives (DAMC) has played a key role in the transition. Officials say that Bhutan is positioning itself to tap into premium markets with its organically grown and chemical-free produce, which has seen growing demand in wealthier economies.
In 2024, Bhutan exported ginger to Nepal, the US, and Australia—totaling over 200 metric tonnes—with Nepal receiving the largest share. While the price per kilogram was highest in Nepal at Nu 54.67, shipments to the US also fetched a competitive rate.
Cardamom, one of Bhutan’s most valuable export crops, reached buyers in Vietnam, Thailand, and the UAE. The average price for cardamom remained strong at over Nu 1,000 per kg, reflecting its continued demand in global markets for both culinary and medicinal purposes.
Other items exported included oranges, which went to Thailand, Vietnam, and the UAE; dairy products such as butter and cheese sent to India, Vietnam, and Nepal; and smaller volumes of value-added products like potato chips, instant noodles, mushrooms, and apples reaching markets in Malaysia and Thailand. Though volumes for these processed goods were limited, they represent a strategic first step in Bhutan’s move toward diversifying not just markets, but also the types of agricultural products it exports.
This progress did not come easily. Bhutan’s mountainous terrain, small-scale production, and limited cold storage facilities have long posed challenges to scaling up exports. However, improved post-harvest handling, government support for certifications such as organic and Good Agricultural Practices (GAP), and better coordination with foreign customs and logistics networks have all contributed to expanding trade possibilities.
Farmers participating in exports to non-traditional markets have begun to see the benefits. Many reports higher prices and more predictable demand, especially for niche crops like ginger and cardamom. The shift has also sparked innovation within Bhutan’s agricultural sector, encouraging more farmers to adopt climate-smart practices, improve quality control, and invest in value-added production.
Despite these gains, challenges remain. Bhutan’s export volumes are still relatively small, and the country must continue to strengthen its branding, infrastructure, and trade negotiation capacity. There is also a need to ensure that smaller and remote farmers are not left behind in the export push, and that investments reach rural areas equitably.
Looking ahead, the government plans to scale up investment in cold storage, packaging, and transportation infrastructure. Efforts are also underway to promote Bhutanese food products through international trade fairs, e-commerce platforms, and digital certification systems that help build trust with foreign buyers.
Youth-led agribusinesses and cooperatives are being encouraged to take part in the export journey, potentially opening new paths for rural employment and entrepreneurship, and uplift the livelihoods of thousands of Bhutanese farmers.
