The Bhutanese Leading the way.
Potato farmers across the country are benefiting from a significant price surge this season. Potatoes, a staple crop grown predominantly in the dzongkhags of Paro, Trashigang, Wangdue, Bumthang, Chhukha, and Mongar, have become a profitable commodity this year, largely driven by supply limitations and market dynamics in both Bhutan and neighboring India.
“Compared to previous months, potato prices are currently as high as Nu 50 per kg and as low as Nu 15 per kg, depending on quality. Contributing factors include reduced production volume within the country and lower potato yields in India earlier this year, which has driven up prices,” said an official from Food Corporation Bhutan Limited (FCBL)
He said, “For context, FCBL’s Phuentsholing Auction Yard received over 12,000 metric tons (MT) of potatoes during the same period last year, whereas this year, the volume has barely exceeded 6,900 MT. Despite this drop in volume, consumer demand has remained stable, setting up a lucrative auction season for local producers.”
Three main varieties of potatoes are grown in Bhutan: Desiree, Khangma Kaap, and Yusi Maap. According to FCB officials, Desiree is the most popular variety among buyers, known for its quality and market demand. Another variety, Yusi Maap, was introduced a few years ago as a fortified potato with added nutritional value, and its popularity is gradually increasing as well.
He said that the government’s initiative to establish a Potato Trade Facilitation Center at Gangtey in Wangdue Phodrang has significantly improved farmers’ returns by helping with better grading, sorting, and packaging practices.
“The establishment of the Potato Trade Facilitation Center has allowed farmers to secure better prices,” the official said.
Plans are underway to establish a similar facility in Gaytsa, Bumthang that will provide further support to potato producers in the region.
When asked about the influence of import and export trends on Bhutan’s potato prices, the official highlighted the importance of timing in Bhutanese potato exports. “It is essential to export Bhutanese potatoes during the auction season from June to December, as Indian potato production is off-season during these months, allowing Bhutanese potatoes to command better prices,” he said.
“While Bhutanese potatoes hold a seasonal advantage, Indian potato production rises significantly from January onwards, making potatoes much cheaper from February to May. This seasonal shift makes it challenging for Bhutanese producers to compete in these months, reinforcing the recommendation for farmers to focus on the June-December auction season to maximize profits,” he added.
The spike in potato prices has many farmers planning to expand their production next year, hoping to take advantage of these favorable market conditions.
October and November, in particular, are anticipated to be peak months for auctions, attracting numerous cross-border buyers who are looking to purchase seed potatoes for India’s upcoming planting season. During these months, prices for smaller and medium-sized potatoes are likely to rise, while prices for larger potatoes may remain steady.
“FCBL’s auction yards, strategically positioned close to India, form Bhutan’s largest wholesale markets for agricultural products,” the official said.
“Phuentsholing Auction Yard, the largest of these centers, operates through a transparent auction process where prices are openly set based on supply and demand, making it a vital economic hub for Bhutanese farmers. These auction yards are vital for Bhutanese farmers, and their absence would significantly impact the farmers’ economic well-being,” he added.
