The Bhutanese Leading the way.
In Bhutan, oranges are more than just a popular fruit; they play a crucial role in the country’s agricultural economy, particularly in the southern regions, where their cultivation is a vital source of income for local farmers.
Over the past few years, the export of oranges has become an increasingly important industry, contributing significantly to the country’s revenue.
In a report presented by the Ministry of Agriculture and Livestock (MoAL), in 2023, Bhutan exported a total of 15,370 metric tonnes of oranges, generating over Nu 573 million (mn).
India and Bangladesh have consistently been the primary markets for Bhutanese oranges, further highlighting the importance of this crop to the country’s foreign trade.
The year 2024 has brought even more positive drive for Bhutan’s orange export industry. Preliminary figures from Bhutan’s Trade Statistics indicate a notable surge in both the volume and value of exports.
Bhutan exported 19,445 metric tonnes of oranges in 2024, marking a 26.5 percent increase in volume compared to the previous year.
In terms of revenue, the total value of orange exports reached Nu 765 mn, a remarkable 33.4 percent rise from 2023. This growth is largely driven by a combination of factors, including higher production levels, favorable market prices, and the expanding demand for Bhutanese citrus in neighboring markets.
Notably, mandarins have seen a dramatic increase in exports, with volumes nearly doubling from the previous year. This highlights the growing international recognition of Bhutan’s citrus fruits, which are known for their quality and taste.
The strong performance of Bhutan’s orange export industry is also evident in the data provided by the Bhutan Food and Drug Authority (BFDA), which tracks export shipments through various gateways.
The main entry point for Bhutanese oranges has been Gelephu, which accounted for the largest share of exports in 2024. Approximately 9,680 metric tonnes of oranges were shipped through this gateway, valued at around USD 4.49 mn.
This has established Gelephu as the most significant trade hub for Bhutan’s orange exports, primarily directed to Bangladesh.
In addition to Gelephu, Samdrup Jongkhar, Phuentsholing, and Nganglam have also served as key export points. While Phuentsholing and Nganglam have seen steady contributions, Samdrup Jongkhar has become increasingly vital for shipments to India, with 2,517 metric tonnes exported through this route.
The diverse export channels not only expand Bhutan’s market reach but also mitigate the risks of over-reliance on any single gateway or market. As the export volumes grow, Bhutanese companies are capitalizing on the opportunity to cater to both traditional markets like India and Bangladesh, as well as to new potential markets in the region.
A closer look at the top exporters reveals that Druk Phuensum Export & Import has emerged as the highest in the industry. This company alone exported over 3,600 metric tonnes of oranges in 2024, worth approximately USD 1.74 mn.
Other notable exporters, such as Kuwapani Export and Rinyang Export, have also contributed significantly, highlighting the role of private sector initiatives in boosting the nation’s export figures.
These companies are not just increasing the volume of exports, but are also helping to improve the logistics and distribution networks, making it easier for Bhutanese oranges to reach international markets.
Despite the positive growth, challenges remain. The fluctuations in global market conditions, logistical hurdles, and competition from other citrus-producing countries pose ongoing concerns for Bhutan’s orange export industry.
Additionally, while domestic production has increased, ensuring consistent quality and quantity of oranges throughout the export season remains crucial for maintaining the market’s trust. The government, through various agencies like the Department of Agricultural Marketing and Cooperatives (DAMC), has been working to address these challenges by improving agricultural practices and strengthening export support mechanisms.
Continued investment in farming techniques, including better irrigation systems and pest control methods, will be critical in ensuring that production levels remain high and that Bhutanese oranges continue to meet international standards
