The Bhutanese Leading the way.
The Ministry of Agriculture and Livestock (MoAL) has acknowledged and taken seriously the concerns related to hoarding, price competition from Indian potatoes, and low demand for small-sized Bhutanese potatoes, following the minister’s visit to the Food Corporation of Bhutan Limited (FCBL) Auction Yard.
“The concerns being raised regarding potato auctions and the prices realized this season are both understood and taken seriously,” MoAL stated, adding that the government recognizes the difficulties faced by farmers and is addressing the issue with urgency, care, and a clear understanding of market realities. Lyonpo Younten Phuntsho said, “We the ministry is doing everything we can to solve this issue and in upcoming days these issues can be solved as soon as possible.”
Bhutan has two main potato seasons. The summer crop is grown at higher altitudes between 2,000 and 3,000 meters, planted around May and harvested in August and September. In the southern foothills, potatoes are typically planted in November and harvested between March and April. Bhutan’s key export window to India falls between June and November, when demand increases due to low production in India. However, India begins its own potato production from October to December during the Kharif season and from February to March during the Rabi season, resulting in little to no demand for Bhutanese potatoes during these periods.
According to MoAL, the marketing challenges faced this season were the result of multiple interrelated factors. Around the same time last year, shortages in the Indian market caused by low yields and weather issues led to price spikes, with Bhutanese potatoes fetching over Nu 60 per kilogram. This encouraged more farmers to increase production this year. By the third quarter of the calendar year, about 39,488 metric tonnes of potatoes were produced, of which 19,348.5 metric tonnes had been exported as of 22nd December 2025.
Based on last year’s higher prices, many farmers withheld their potato stocks for more than two months in anticipation of better late-season prices, despite repeated advisories from FCBL since April 2025. Market conditions were further affected by the early arrival of new potato harvests from neighbouring Indian states such as West Bengal from early December 2025. Buyers preferred fresher and cheaper Indian potatoes over stored Bhutanese potatoes, leaving Indian traders with unsold Bhutanese stocks of about 625 metric tonnes.
These challenges were compounded by a general weakness in the Indian potato market during the season. Prices across all grades declined sharply between November and December, with reductions of 40 to 60 percent depending on size and quality. This significantly reduced export opportunities for Bhutanese potatoes. Additionally, Indian farmers are increasingly sourcing seed potatoes from specialized producers in Punjab, offering higher germination assurance and productivity.
To address the situation, the Ministry implemented several immediate measures. A Joint Potato Awareness Campaign was conducted by FCBL and the Department of Agricultural Marketing and Cooperatives across five dzongkhags and 12 gewogs, reaching over 1,173 potato growers between 15th April and 21st May 2025. The campaign focused on timely delivery to auction yards, discouraging hoarding, proper curing of potatoes, and auction procedures, including online platforms.
Twelve informal Telegram groups were created to ensure faster dissemination of auction prices and related information, while farmers were advised against bringing uncured potatoes to auction yards. When Indian traders were unable to sell auctioned potatoes, MoAL and FCBL informed farmers through various media not to bring potatoes to the auction yards due to market saturation.
Following government and FCBL interventions, the auction period was extended until 22nd December 2025, allowing farmers to auction an additional 49 metric tonnes of potatoes, despite traders formally withdrawing from auctions on 3rd December 2025. MoAL officials also assessed potato stocks in Haa, Paro, Chukha, Wangdue, and Bumthang, identifying 1,889.2 metric tonnes of potatoes at source as of 26th December 2025.
Officials were further deployed to Falakata in West Bengal to assess market conditions. The assessment found that early arrivals of new potato harvests from Falakata and Punjab significantly reduced demand for Bhutanese potatoes across North Bengal. Local potatoes were selling for Nu 10 to 17 per kilogram, while cold-stored potatoes fetched only Nu 6 to 7 per kilogram. Indian farmers storing potatoes in Falakata cold stores were unable to recover even storage costs, prompting at least one cold storage facility to consider distributing potatoes free of cost if stocks were not collected.
To support domestic markets, MoAL reached out to 22 vegetable importers supplying vegetables locally. As of 29th December 2025, 12 vendors procured 8.7 metric tonnes of potatoes from farmers in Phobjikha.
Looking ahead, MoAL outlined short-, medium-, and long-term measures. In the short term, it will continue working with domestic traders and importers to procure potatoes from Bhutanese farmers and is exploring the possibility of FCBL procuring potatoes at reasonable prices based on this season’s average auction rates. These potatoes could be stored in cold storage facilities and distributed to major domestic markets and public institutions, including schools, Gyalsung Academies, armed forces, and hospitals.
In the medium term, the ministry plans to conduct a comprehensive assessment of potato markets in Assam, Bengal, and other key producing regions in India to better understand market dynamics, technological developments, and buyer preferences. In the long term, the ministry emphasized the need to diversify export markets to reduce overdependence on a single market, while maintaining India as Bhutan’s most important trading partner and exploring complementary markets such as Bangladesh, Nepal, and beyond.
