Parliamentary debate highlights budget concerns for the agriculture sector for the 13th Five-Year Plan

During the Question-Hour Session of the National Assembly (NA) the Member of Parliament (MP) of Mongar Constituency, Naiten Wangchuk, raised critical questions to the Minister of Agriculture and Livestock,Younten Phuntsho, regarding the 13th Five-Year Plan (FYP). He expressed concerns about the ambitious goal to increase the agriculture sector’s GDP contribution from Nu 27 billion in 2022 to Nu 50 billion by 2029 through the commercialization of crops and livestock, emphasizing high-value products. He highlighted the limited capacity of the domestic market to absorb these products, underscoring the necessity of focusing on exports to achieve the targeted GDP growth.

He stressed the need for significant investments to ensure food safety, given the increasing global concerns and stringent regulations on trading food and agricultural products. He proposed several key priorities, including enhancing the capacity of the National Food Testing Laboratory (NFTL), expanding NFTL’s accreditation to cover all sanitary and phytosanitary (SPS) and food safety testing, initiating regional collaborations to harmonize food safety standards, and improving trade facilitation amenities at entry and exit points.

Furthermore, he emphasized the importance of raising awareness among farmers and traders about food safety requirements.

He also noted that the Department of Agricultural Marketing and Cooperatives (DAMC) was allocated only 6 percent (Nu 920.5 million) of the total 13th FYP budget, while the Bhutan Food and Drug Authority (BFDA) needed Nu 142 million to enhance its certification and trade facilitation capacities. He requested a review and reprioritization of the budget for these two critical agencies, either under Project Tied Assistance (PTA) or the Economic Stimulus Program (ESP).

In response, the Minister of Agriculture and Livestock clarified that DAMC had been allocated a total budget of Nu 910.50 million in the 13th FYP. He outlined several key projects under DAMC:

Project 01 is the promotion of large-scale commercial farming. There will be strengthening farmer groups and cooperatives, enhancing RNR enterprises, improving RNR marketing and value chains, and establishing agri-food economic hubs in Paro and Sarpang for high-value exports and bulk commodities.

Project 02 is to support subsistence farming by enhancing the accessibility and affordability of essential food items.

Project 03 is the promotion of high-value products for the export market by developing premium-quality products for high-end markets and exploring and establishing new markets.

Lyonpo Younten Phuntsho also highlighted that Nu 2 billion from the ESP had been allocated to the agricultural sector, which is to be implemented by FMCL, BLDC, and BDBL, with close liaison to ensure ministry priorities are met. He acknowledged the need for more funds for BFDA, now under the Ministry of Health, which has a budget of Nu 656.57 million for the 13th FYP. Lyonpo assured continued support for agricultural-related certification needs through allocated budgets.

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