Agribusinesses in Bhutan now have a unique opportunity to engage in the government’s Nu 1 billion Price Guarantee Scheme (PGS), which aims to stabilize the prices of key agricultural and livestock products, benefiting both farmers and consumers alike. The scheme targets farmers producing nine priority products: rice, wheat, maize, quinoa, soybean, peanuts, pork, chicken, and fish.

The Bhutan Livestock Development Corporation Ltd. (BLDCL) and Farm Machinery Corporation Ltd. (FMCL) will act as aggregators in the PGS, ensuring floor prices for farmers and ceiling prices for consumers. This partnership ensures that farmers can sell their produce at guaranteed minimum prices, while consumers can purchase these products at capped prices. The scheme is designed to ensure market stability and import substitution for these priority crops and livestock products.

Agribusinesses involved in primary production in agriculture and livestock can directly engage in the scheme by supplying these priority products to BLDCL/FMCL. Additionally, agribusinesses acting as intermediaries—such as producers or traders—can collaborate with the state-owned enterprises (SOEs) to benefit from the scheme, promoting more streamlined market operations.

In addition to the PGS, the government is offering concessional loans to encourage agribusiness ventures in the sector. Nu 500 million has been allocated under the Enterprise Support Program (ESP) for primary agriculture and livestock businesses, offering financial support to help enterprises grow and become more profitable.

For those looking to enhance their skills in food processing, the Department of Industry, Ministry of Industry, Commerce, and Employment (MoICE) will be conducting a training program for small agro-based enterprises. The first batch of training is set to begin in April 2025, with fund support from the ESP to help entrepreneurs capitalize on the growing potential of the agriculture sector.

This multi-pronged approach not only ensures fair pricing but also fosters self-sufficiency and sustainability in Bhutan’s agricultural and livestock industries. By supporting local production, the government hopes to boost Bhutan’s agribusiness sector, reduce imports, and enhance food security.

By Kinley Yonten