RENUKA RAI | Thimphu
Bhutan’s agriculture and livestock sector is quietly undergoing a structural shift one that is reshaping its role in the national economy even as the number of people directly employed in farming declines.
Recent figures show that the sector’s contribution to Gross Domestic Product (GDP) has increased from 9.15 percent to 12.48 percent, pointing to gains in productivity, value addition, and institutional support rather than expansion in workforce size.
According to the National Statistics Bureau’s (NSB) December 2025 third-quarter GDP report, the primary sector comprising crops, livestock, and forestry expanded by 5.30 percent during the quarter.
This marks a notable improvement of 2.57 percentage points compared to the 2.73 percent growth recorded in the same period in 2024.
In value terms, Gross Value Added (GVA) from the primary sector was estimated at Nu 12.521 billion, accounting for 14.17 percent of GDP during the quarter.
During the 23th meet the press session held on 6 Feb, the Secretary of the Ministry of Agriculture & Livestock Thinley Namgyel said that these figures reflect deliberate policy choices aimed at strengthening productivity, reducing losses, and building resilience across the agrifood system, while also aligning Bhutan’s agriculture sector with global efforts toward sustainability and equity.
One of the most visible interventions has been the expansion of chain-link fencing to reduce crop losses caused by wildlife.
Human–wildlife conflict has long been a major constraint on agricultural productivity, discouraging farmers and leading to abandoned fields in several parts of the country.
During the 2024–25 financial year, the Ministry implemented 83 chain-link fencing schemes covering 12,807 acres and spanning 420 kilometers.
These initiatives benefited 4,902 households at a total cost of Nu 530.207 million. Of these, 76 schemes have already been completed, while the remaining seven are expected to be completed soon.
The scale of this intervention has increased further in the current fiscal year. In 2025–26, a total of 105 schemes are under implementation, covering 12,789 acres and extending across 562 kilometers, with an estimated cost of Nu 885.43 million.
These projects are expected to benefit 5,899 households. The Secretary noted that the fencing has significantly reduced production losses caused by wild animals such as wild boar and deer, helping farmers stabilize yields and protect investments.
Alongside physical protection measures, mechanization has been promoted as a way to address labour shortages and improve efficiency. More than 600 mini tillers have been supplied to farmers on a cost-sharing basis through various projects.
The Commercial Agriculture and Resilient Livelihoods Enhancement Program (CARLEP) alone provided over 400 mini tillers to farmers in eastern Bhutan.
By easing the burden of land preparation and other labour-intensive tasks, mechanization has enabled farmers to cultivate larger areas and manage operations more efficiently, contributing to higher output per worker.
Irrigation development has also played a critical role in supporting productivity gains. In the 2024–25 fiscal year, the Ministry implemented five major irrigation schemes, four of which were completed.
These include projects in Gayrikha in Haa, Khangma in Pemagatshel, Khamaedthang in Samdrup Jongkhar, and Changwa Rongchu in Bumthang.
One scheme, Changyul Ritsa in Punakha, is ongoing. For 2025–26, seven additional irrigation schemes were planned, and all are currently under implementation.
In addition to these centrally supported projects, local governments have been renovating and constructing smaller irrigation systems, further expanding access to reliable water for farming.
Officials say improved irrigation has been instrumental in enhancing cropping intensity, stabilizing production, and enabling farmers to diversify into higher-value crops.
Value addition has emerged as a central pillar of the Ministry’s strategy to sustain and increase the primary sector’s contribution to GDP.
There is a growing emphasis on high-value agricultural commodities such as asparagus, mushrooms, cardamom, honey, yak cheese, and fruits under the Million Fruit Tree Plantation Project.
These commodities are seen as offering better income potential while making more efficient use of limited land and labour.
In parallel, the Ministry has initiated pilot projects for high-value Geographical Indication (GI) products, which aim to link quality, origin, and cultural heritage with market value.
These include Bumthang Yathra (textiles), Dhur Tandigang Gonthok (buckwheat flour), Merak Sakteng Zoetey, and Bumthang Honey.
By formalizing and protecting the identity of these products, the GI pilots are intended to support rural livelihoods and promote value-based differentiation rather than volume-driven production.
Large-scale commercial farming initiatives have also been introduced through institutional partnerships. In Samdrup Jongkhar, chirrup farms covering 40 acres in Samrang and 60 acres in Pemathang have been established in partnership with the Desuups.
Another major initiative is the 270-acre commercial agriculture farm at Yarjugang in Wangduephodrang, developed in partnership with the Royal Bhutan Police.
These projects are designed to demonstrate scalable models of commercial agriculture, improve domestic supply, and reduce dependence on imports.
Risk management has become an increasingly important focus as climate variability, wildlife conflict, and market uncertainties intensify.
To address these challenges, the National Crop and Livestock Insurance Scheme was launched on 11 November 2025, coinciding with the 70th birth anniversary of the Fourth Druk Gyalpo.
The scheme provides protection against losses caused by extreme weather events, wildlife damage, and animal diseases.
The Secretary described the insurance program as a critical safety net that encourages farmers to invest in production by reducing the financial risks associated with farming.
Market access and demand assurance are also being strengthened through institutional linkages. The government has worked to ensure a stable domestic market for farmers by linking local producers with Gyalsung Academies, as well as school and hospital feeding programs.
These institutional buyers provide predictable demand for agricultural products, helping farmers plan production and reduce post-harvest losses.
The recent revision of school stipends by the government is expected to further boost demand for local agricultural produce, particularly in rural areas.
Input availability has been another area of policy attention. A Memorandum of Understanding with the Government of India on the subsidized supply of fertilizers is expected to ensure affordable and uninterrupted access to key inputs.
Officials say this agreement will help farmers maintain soil fertility and improve yields, supporting overall production growth.
Taken together, these initiatives reflect a broader shift in how agricultural growth is being pursued in Bhutan.
Rather than relying on expansion of cultivated area or increased labour input, the focus is increasingly on productivity, resilience, and value addition.
The rise in the sector’s GDP contribution, even as fewer people are employed in agriculture, underscores this transformation.
While challenges remain particularly in balancing commercial growth with environmental sustainability, and ensuring that benefits reach smallholders, the Ministry maintains that the current policy direction is laying the groundwork for a more inclusive and resilient agrifood system.
By addressing risks, improving infrastructure, promoting high-value products, and strengthening market linkages, Bhutan’s agriculture and livestock sector is positioning itself as a key contributor to a sustainable and equitable economic future.
