NGAWANG JAMPHEL | Thimphu
As geopolitical tensions in the Middle East continue to raise concerns over global oil markets and chemical supply chains, Bhutan is accelerating efforts to reduce its dependence on imported agricultural chemicals by investing in locally produced biofertilizers and biopesticides.
The move forms a key part of the government’s long-term vision under the Bhutan Agrifood Sector Strategy 2034, which seeks to strengthen food security, protect the environment, and build a more self-reliant agricultural sector.
Speaking during the 28th Meet the Press session, Agriculture and Livestock Minister Lyonpo Yoenten Phuntsho said Bhutan’s relatively low dependence on synthetic fertilizers places the country in a favorable position compared to many nations that rely heavily on imported agricultural inputs.
“Bhutan already has a strong foundation because many of our farmers continue to use traditional organic farming practices,” Lyonpo said. “Our objective is to strengthen this advantage by scaling up domestic production of biofertilizers and biopesticides.”
The minister said that Bhutan currently imports more than Nu 100 million worth of synthetic fertilizers and pesticides annually. Reducing this import bill remains one of the government’s major priorities as international uncertainties continue to affect supply chains and prices.
According to data from the 2019 Renewable Natural Resources Census, more than 80 percent of farms in Bhutan operate using traditional organic methods. Farmers rely on farmyard manure, compost, crop residues, and other natural soil management practices instead of factory-produced chemical fertilizers.
The minister noted that Bhutan’s use of synthetic fertilizers remains extremely low by international standards. The country consumes less than 3,000 metric tonnes of synthetic fertilizers annually, while global consumption is estimated at around 190 million metric tonnes.
Similarly, World Bank figures for 2023 show that Bhutan used only 9.8 kilograms of fertilizer per hectare of arable land, compared to a global average of approximately 154 kilograms per hectare.
“These figures demonstrate that Bhutanese farmers have maintained a relatively low dependence on imported chemicals,” Lyonpo said. “This gives us an opportunity to further develop an agriculture system that is both environmentally sustainable and economically resilient.”
Despite the country’s strong organic traditions, officials acknowledged that local production of biofertilizers remains insufficient to meet future demand.
The ministry reported that there are currently 14 registered biofertilizer production enterprises operating across different parts of the country. However, many of these facilities are functioning well below their production capacity.
Collectively, the sector operates at only 27 percent of its potential output, leaving more than 2,500 metric tonnes of annual production capacity unused.
Among the largest producers are Bhutan Organic Fertilizer in Pasakha, Greenure Bhutan Bio Products Limited in Darla, Chukha, and Bhu Org Farm in Sarpang. While some enterprises such as Sonam Gaki Fertilizer and Daina Nursery are operating at full capacity, many others are producing only a small fraction of what they are capable of manufacturing.
Officials said the low utilization rate is largely due to weak market demand, transportation challenges, and shortages of labor and raw materials.
Many Bhutanese farmers continue to produce their own compost at the household level rather than purchasing commercial organic fertilizers. At the same time, transporting bulky organic products across Bhutan’s mountainous terrain significantly increases costs and limits market access.
“Organic fertilizers are heavier and more expensive to transport than synthetic fertilizers,” ministry officials explained. “Distance and terrain remain major challenges for producers trying to reach remote farming communities.”
Apart from improving soil fertility, the government is also expanding efforts to reduce dependence on synthetic pesticides through the use of biological alternatives.
The National Plant Protection Centre has intensified the distribution of biopesticides and pest monitoring tools throughout the country.
Among the most widely used biological products are Azadirachtin, commonly known as neem oil, and horticultural mineral oils. During the 2025-26 fiscal year, the centre procured and distributed 640 litres of concentrated Azadirachtin and 6,500 litres of horticultural mineral oils.
In addition, thousands of pest-monitoring devices have been supplied to farmers.
The distribution included more than 20,000 funnel traps, 6,200 mango fruit fly lures, 1,400 fall armyworm lures, 900 rice ear-cutting caterpillar traps, and hundreds of other specialized traps used to detect and manage pest outbreaks.
The ministry also supplied 350 kilograms of protein hydrolysate, which is used to attract and control fruit flies.
Officials said the distribution of these materials is guided by pest outbreaks and demand from farmers, allowing resources to be deployed where they are needed most.
To encourage greater investment in the bio-input industry, the government has introduced new policy measures aimed at attracting both foreign and domestic investors.
Under the recently adopted Foreign Direct Investment Rules and Regulations 2025, foreign companies are now allowed to own up to 74 percent equity in biofertilizer and biopesticide businesses established in Bhutan.
The minister said the revised policy is expected to attract international expertise, technology, and investment into the country’s growing green agriculture sector.
“We want to create an environment where investors can bring innovative technologies while supporting Bhutan’s vision for sustainable agriculture,” Lyonpo said.
At the domestic level, the government has also introduced the Cost-Sharing Mechanism 2025 to support entrepreneurs, cooperatives, and farming groups interested in producing biological agricultural inputs.
Under the scheme, the government will provide full material support for infrastructure development while beneficiaries contribute labor for construction and installation.
The programme also includes a 50 percent subsidy on the supply of biofertilizers and biopesticides to make them more affordable for farmers and more competitive against imported chemical alternatives.
While these initiatives are expected to strengthen domestic production, officials acknowledged that significant challenges remain before Bhutan can fully replace synthetic fertilizers and pesticides.
One of the biggest obstacles is the lower nutrient concentration of organic fertilizers compared to chemical products.
According to field trials conducted in Bhutan, approximately 14 units of high-quality biofertilizer are required to provide the same amount of nutrients delivered by one unit of synthetic fertilizer.
This means farmers must transport, handle, and apply substantially larger quantities of material to achieve similar results.
Agricultural experts say this creates logistical difficulties, particularly in Bhutan’s steep and fragmented farming landscapes.
Another concern is the yield gap observed during the transition from conventional to organic farming systems.
The ministry reported that crop yields under organic systems can be between 18 and 45 percent lower than those achieved through conventional farming practices, depending on location and crop type.
Such reductions pose a challenge for a country that is striving to improve food self-sufficiency while reducing agricultural imports.
“Food security remains a priority,” Lyonpo said. “Any transition must be carefully managed to ensure that farmers continue to produce enough food while adopting more sustainable practices.”
The minister also highlighted ongoing efforts to develop locally produced biopesticides through research and innovation.
In 2021, the Farm Machinery Corporation Limited signed a memorandum of understanding with a South Korean company, B&B Korea, to establish a biofertilizer production facility in Athang Gewog, Wangdue Phodrang.
The project, backed by an initial investment of Nu 40 million, aims to convert organic waste into high-quality agricultural inputs.
However, the commercialization of liquid biopesticides developed under the partnership has yet to begin.
According to the minister, scientific trials are still underway to evaluate their safety, effectiveness, and environmental impact before approval for commercial release can be granted.
“The testing process is necessary to ensure that these products meet all required standards,” Lyonpo said. “We cannot compromise on safety and environmental protection.”
Despite these challenges, the government remains optimistic about achieving the goals outlined in the Bhutan Agrifood Sector Strategy 2034.
Officials believe that combining Bhutan’s traditional farming knowledge with modern scientific innovation can gradually reduce the country’s dependence on imported agricultural chemicals while supporting sustainable food production.
The strategy also aligns with Bhutan’s broader environmental commitments and efforts to maintain healthy soils, biodiversity, and ecosystem services.
As global conflicts continue to expose the vulnerabilities of international supply chains, Bhutan’s push for locally produced biofertilizers and biopesticides represents more than an agricultural initiative. It is increasingly being viewed as a national strategy for economic resilience, food security, and environmental sustainability.
For the government, the challenge now lies in transforming underutilized production facilities into thriving enterprises, narrowing the yield gap between organic and conventional farming, and ensuring that biological alternatives become both practical and affordable for farmers across the country.
If successful, Bhutan could significantly reduce its reliance on imported agricultural chemicals over the next decade while building a more self-reliant and sustainable food system.
