The Bhutanese Leading the way.
Agriculture remains a cornerstone of Bhutan’s economy, contributing 14.96% to the GDP and employing 44.08% of the workforce, according to the National Accounts Statistics 2024 and Labour Force Survey. In recent years, the government has intensified its investments in the sector, targeting essentials like irrigation infrastructure, seeds, fertilizers, and equipment. Despite visible advancements, challenges like labour shortages, climate variability, and limited irrigation coverage have slowed expected productivity gains.
The Ministry of Agriculture and Livestock (MoAL) has directed significant resources toward addressing agricultural constraints, with investments in fertilizers, seeds, irrigation infrastructure, and modern farming equipment. A recent Department of Agriculture report highlights an annual expenditure of over Nu 19.5 million for transporting seeds, seedlings, and fertilizers. In 2023-24 alone, about 2,436.755 metric tonnes of fertilizers, including urea, suphala, SSP, MOP, and borax, valued at Nu 115.09 million, were distributed to farmers nationwide.
“Irrigation infrastructure is prioritized to counter water scarcity in dryland farms, which dominate the country’s landscape. Investments in irrigation help address critical farming needs, ensuring better output,” an official from MoAL stated.
The official said, “Under the 12th Five-Year Plan (FYP), 12 new irrigation channels spanning 84 km were constructed, securing water for 3,247 acres and benefiting 1,203 households across seven districts. Additionally, 71 irrigation channels, totaling 534.04 km, were renovated, ensuring water access to 14,370.52 acres and supporting 7,653 households.”
To further enhance productivity, the government has deployed advanced drip and sprinkler irrigation systems, reducing farmers dependency on rainfall. Through the Food Security and Agriculture Productivity Project (FSAPP), over 450 drip irrigation systems were installed, covering 40 acres in Haa and Dagana. Smart irrigation systems were also implemented in 40 polyhouses across Sarpang, Chhukha, and Wangdue Phodrang.
MoAL has also introduced chain-link fencing to mitigate wildlife intrusion. A preliminary study in Pangbisa (Paro) and Laptsakha (Sarpang) found chain-link fencing highly effective against wildlife like wild boars, porcupines, and rabbits, allowing farmers to focus more on crop management.
“Chain-link fencing minimizes the time farmers spend guarding fields, reducing issues like sleep deprivation, social conflicts, stress, and reduced school attendance. It also lowers farmers’ exposure to vector-borne diseases in the south,” the official added.
However, some expected outcomes from these investments have been slower to materialize. Productivity remains below expectations in certain areas, which the government attributes to a persistent labour shortage, exacerbated by rural-to-urban migration and the recent diaspora movement. Additionally, Bhutan’s farming system, largely characterized by smallholdings and traditional practices, struggles to adopt modern agricultural technologies.
When asked about the impact of these investments, particularly in crop production and livestock farming, the official said, “Investments are essential for addressing challenges and promoting inclusive growth. However, detailed impact assessments are resource-intensive and time-consuming. Preliminary studies, such as those on chain-link fencing, indicate its profitability and effectiveness, but more comprehensive evaluations are planned.”
Approximately 29% of agricultural land now has access to irrigation, though dryland farming, reliant on rainfall, still dominates. The investment in irrigation has increased areas with assured water supply, addressing water scarcity primary farming issue in Bhutan. Further assessments, particularly for FSAPP interventions, are ongoing, with results expected to be available to the public upon project closure.
Addressing whether government investments have met expectations, an official acknowledged, “Outcomes in agriculture depend on multiple factors, and challenges persist despite government efforts. Labor shortages are significant, worsened by rural-urban migration and the recent diaspora movement. Additionally, small farm holdings and traditional farming practices hinder the adoption of more productive modern technologies. Climate change and extreme weather events further complicate progress.”
The 13th FYP emphasizes strengthening monitoring and evaluation to align agricultural investments with national goals. The Office of Cabinet Affairs and Strategic Coordination (OCASC) and the Department of Planning, Budget, and Performance (DPBP) will oversee project effectiveness through annual, mid-term, and final reviews.
In response to persistent agricultural challenges, MoAL has outlined several new projects to strengthen the country’s agricultural sector and ensure food security. These initiatives, part of the government’s broader efforts under the 13th FYP aim to mitigate issues like human-wildlife conflict, irrigation deficits, and the vulnerability of smallholder farmers to climate-related disruptions.
The official said, “To address the pervasive issue of human-wildlife conflict, the ministry has allocated Nu 5.1 billion for the construction of 3,487 kilometers of chain-link fencing across the country. This fiscal year alone, 407 kilometers will be constructed across 80 gewogs, covering 15,503 acres and benefiting approximately 4,804 farming households.”
With irrigation ranked as a high-priority area, MoAL plans to construct 26 additional irrigation channels across 17 Dzongkhags, supported by an estimated budget of Nu 905.99 million. Five channels are expected to be completed within this fiscal year. Additionally, an allocation of Nu 43.53 million has been set aside for capacity building of irrigation engineers, ensuring sustainable management of these critical water resources.
Farmers will also benefit from smart water-saving technologies like sprinklers, drip kits, and water harvesting ponds, helping them reduce reliance on rainfall and improve water use efficiency.
To shift away from subsistence farming, the government is promoting commercial agriculture through the introduction of advanced farming technologies. Two model Chirub Agri-Farms are being developed with an investment of Nu 324 million from the Government of India.
These farms will demonstrate modern farming techniques, including the use of drones for crop monitoring, high-value crop varieties, greenhouse-based protected agriculture, and climate-resilient irrigation systems. By engaging young farmers in the operation of these farms, the ministry aims to foster a generation of farmers skilled in the latest agricultural innovations.
Recognizing the financial and environmental risks farmers face, MoAL is proposing a National Crop and Livestock Insurance Scheme to provide insurance coverage against crop failures due to natural disasters, pests, diseases, and wildlife damage. This initiative is designed to encourage investment in agriculture by safeguarding farmers’ livelihoods. Additionally, with funding from the Adaptation Fund, MoAL is piloting a de-risking mechanism in four dzongkhags to enhance the resilience and adaptive capacity of smallholder farmers.
