TIL BDR GHALLEY
Thimphu
A state-of-the-art Potato Trade Facilitation Center (PTFC) was inaugurated on 5 August at Gaytsa, Chhumig Gewog in Bumthang Dzongkhag by the Minister for Agriculture and Livestock, Lyonpo Younten Phuntsho, marking a significant milestone in Bhutan’s agricultural development and export trade.
This newly established facility, the second of its kind in the country, is designed to enhance the commercial value and competitiveness of Bhutanese potato. The PTFC is equipped with modern infrastructure, including grading, washing, drying, sorting, and packaging machines, and an online trading (auction) system.
The center was established at a total investment of Nu. 83.59 million, supported by the Royal Government of Bhutan (RGoB), European Union (EU), and the Hand-in-Hand Initiative of the Food and Agriculture Organization (FAO).
“In order to export to India, which is the main market and the major trading partner of our country, Bhutanese potato must now meet a range of stringent standards and specific prerequisites,” said Lyonpo Younten Phuntsho at the inauguration. “The produce has to be soil-free, pest-free, plant debris-free, properly graded and packed in standard weights.”
The PTFC is expected to address critical marketing challenges faced by Bhutanese farmers due to emerging export requirements, increased competition, and trade formalization. By fulfilling international standards and protocols, the facility is set to facilitate smooth export of potatoes—especially to India, Bhutan’s primary potato market—and explore potential access to new international markets.
Bhutanese potatoes are among the nation’s most important cash crops. The crop contributes significantly to food security, rural employment, poverty alleviation, and national income generation. According to the Integrated Agriculture and Livestock Census (IALC, 2025), Bhutan exported over 37,778.00 metric tonnes of potato to India in 2024, generating Nu. 539.40 million in export revenue.
In Bumthang alone, about 60–65% of rural households were engaged in potato farming in 2024, producing 3,220.00 metric tonnes and earning an estimated Nu. 54.74 million in gross income.
However, with growing international market demands and limited domestic market capacity, the need for improved value chain infrastructure has become increasingly urgent. The Hon’ble Minister highlighted the Ministry of Agriculture and Livestock’s (MoAL) strategic response to these challenges:
“The Ministry of Agriculture, in close collaboration with the Food Corporation of Bhutan Limited (FCBL), has embarked on an initiative to improve the value chain of potato through the establishment of Potato Trade Facilitation Centers in strategic locations—Bumthang, Chhukha, Trashigang, and Wangdue Phodrang,” said Lyonpo Younten Phuntsho.
He further encouraged local farmers to increase potato production from the next season to take full advantage of the improved facilities and market linkages. The Minister reaffirmed that the initiative aligns with the Royal Government’s vision of transforming Bhutan into a high-income economy by 2034, a key objective under the 13th Five-Year Plan (2024–2029).
The Gaytsa PTFC is expected to directly benefit farmers in Bumthang and surrounding districts, including Trongsa, by providing local access to grading and auctioning services. Previously, farmers were required to transport their produce to distant locations such as the Phuentsholing Auction Yard, incurring high transportation costs and delays.
“This center is a game changer for potato growers in Bumthang and nearby areas. Farmers now no longer need to travel long distances to trade their produce,” press release stated.
The PTFC is designed to enhance market access, raise profitability, and improve product quality through value addition. It will also empower farmers with better access to information, equipment, and trading platforms, enabling them to make informed marketing decisions and maintain international-grade standards.
In the long term, the center aims to boost export volumes, secure higher price returns for farmers, and curb rural–urban migration by creating sustainable opportunities within communities. It will generate local jobs, foster rural enterprises, and improve food and nutrition security through efficient supply chains and diverse agricultural production. Ultimately, these efforts are expected to reduce poverty and enhance rural livelihoods, driving lasting socio-economic progress.
Officials from the MoAL, FCBL, and Bumthang Dzongkhag Administration were present at the inaugural event, which concluded with a tour of the facility’s advanced machinery and digital auction systems.
The establishment of the Gaytsa PTFC reflects the government’s commitment to modernizing Bhutan’s agriculture sector, while promoting inclusive rural development through strategic investment in infrastructure and market systems.
As the next potato season approaches, farmers in Bumthang and surrounding regions are expected to benefit significantly from the localized trading access, cost savings, and higher market competitiveness made possible by the new center. With the new center in place, potato growers are well-positioned to meet market standards, expand their reach, and enjoy greater returns for their hard work.
