Market linkages and Bhutanese Agri-food sector: opportunities and challenges

YANGCHEN LHAMO
Thimphu

The Director of the Bhutan Food and Drug Authority (BFDA) under the Ministry of Health, Gyem Bidha, said the future of Bhutan’s agri-food sector was thoroughly examined at the recently concluded Bhutan Agrifood and Investment Forum.

Her comprehensive overview underscored both the burgeoning opportunities and significant challenges facing the sector, highlighting the critical role of the BFDA in ensuring food safety, quality, and market access.

“The global agri-food sector is undergoing a rapid transformation,” she said. Gyem Bidha said food systems, which encompass all activities from production to consumption, are evolving quickly and this shift necessitates robust strategies to maintain food safety and quality, as well as to enhance market competitiveness.

Bidha emphasized BFDA’s dual role as both a regulator and a technical facilitator within the food supply chain. The authority’s guiding principle, ‘‘the more we educate and delegate, the less we regulate,’’ underscores its commitment to fostering a sustainable and self-regulating agri-food sector.

Bhutan’s agri-food sector is poised for significant growth, buoyed by various government initiatives aimed at aligning with international best practices. She highlighted several key opportunities that can propel the sector forward.

‘‘One major opportunity is the provision of conformity assessment services-inspection, testing, and certification-at no cost by the government. This initiative not only enhances food safety and quality but also facilitates easier market access for our products,’’ Bidha added.

A landmark development in this regard is the Memorandum of Understanding (MoU) signed in March 2024 with the Food Safety and Standards Authority of India (FSSAI). This MoU recognizes Bhutan’s Export Inspection and Certification System, fostering deeper bilateral trade relations and ensuring that our agri-food products meet stringent international standards.

Bidha said this agreement is a testament to the strong people-to-people and agency-to-agency partnership.

To further bolster technical capabilities, the National Food Testing Laboratory (NFTL), accredited under ISO 17025, is expanding its testing scope. Bidha added that this initiative ensures comprehensive safety and quality testing, aligning our domestic inspection systems with ISO 17020 standards, and providing ISO 17065 services.

Additionally, Bhutan is actively involved in developing the Codex Standard for Large Cardamom, with Bhutan chairing the initiative and India and Nepal as co-chairs.

Sanitary and Phytosanitary measures are critical for maintaining the safety and quality of agricultural products. ‘‘We are proactively conducting Pest Risk Analysis to meet the plant quarantine requirements of importing countries like Thailand and India,’’ she said.

Furthermore, a feasibility study is underway to adopt the ePhyto solution, which aims to digitalize phytosanitary certifications and streamline trade processes.

She also highlighted efforts to establish heat treatment facilities at the Plant and Animal Quarantine Station (PAQS) in Phuentsholing and to build technical capacity among inspectors and the private sector. ‘‘These steps are crucial to meeting ISPM 15 requirements and facilitating smoother exports,’’ she added.

Despite these advancements, Bhutan’s agri-food sector faces several challenges. Bidha pointed out the weak infrastructural setups and limited SPS capacities in testing, inspection, certification, and treatment as significant impediments. ‘‘Often, samples must be subcontracted for testing, delaying results and hampering trade,’’ she said, adding the complex regulatory procedures including manual inspections, further complicate the process.

Institutional frameworks and regulatory complexities present additional hurdles. The absence of harmonized standards and greater challenges related to SPS/TBT measures necessitate concerted efforts to streamline regulations.

The technical capacity of the domestic agri-food sector also requires enhancement. Bidha emphasized that a weak internal control system and limited institutional capacity among farmer groups and Food Business Operators (FBOs) undermine efficiency.

Moreover, farmers and FBOs often lack entrepreneurial skills and a comprehensive understanding of food safety requirements. Limited market information further exacerbates the issue, with emerging FBOs often unaware of where to market their products and which standards and certifications to follow.

To address these challenges and capitalize on opportunities, Bidha outlined several strategic recommendations. According to her, investing in laboratory capacity building is paramount. Upgrading existing laboratories with state-of-the-art equipment, enhancing human resources, and providing comprehensive training also form the tripod of this initiative.

Mutual recognition and regional collaboration are essential for overcoming trade barriers. Bidha advocated for developing MoUs, Mutual Recognition Agreements (MRAs), equivalence arrangements, and technical cooperation frameworks with exporting countries.

Harmonizing national standards with Codex, WoAH, and IPPC standards, alongside effective cross-border coordination, will build trust between technical and regulatory agencies, which is essential for navigating the informal market sector at the borders, she noted.

Building the technical capacity of food businesses is another crucial area. Bidha emphasized the importance of providing hand-holding support, developing private-sector engagement programs, and exploring future investment partnerships.

The Bhutanese agri-food sector stands on the cusp of significant transformation. ‘‘By addressing infrastructural weaknesses, enhancing technical capacities, and fostering regional cooperation, Bhutan can harness the full potential of its agri-food sector,’’ she added.

The BFDA remains committed to supporting this journey, ensuring that Bhutanese food products meet the highest standards of safety and quality, thereby enhancing market linkages and driving sustainable growth.

Related Posts

About The Author