NEWS & EVENTS

A new era in local agriculture began today with the official inauguration of the Potato Trade Facilitation Center in Gangtey. The ceremony, which was honored by the presence of His Excellency Lyonpo Yonten Phuntsho, Minister of Agriculture and Livestock, signifies a major advancement for farmers in the region. For the first time, the Food Corporation of Bhutan Limited (FCBL) has established this facility at the source, bringing convenience and benefits to the farmers. Funded by the GEF-LDCF, UNDP, FAO and the Royal Government of Bhutan (RGoB) with an investment of Nu. 75.67 million, the center was constructed by M/s Pelden Construction Private Limited and is equipped with state-of-the-art facilities for washing, drying, grading, and sorting potatoes. Potato growers in Wangdue Phodrang can now finally bid farewell to the long journeys to the Phuntsholing Auction Yard saving time and costs associated with travel and transport. The main feature of the new center is its e-auction services. This system promises to streamline transactions by facilitating efficient management of bidding, price discovery, notifications, and payments, offering significant benefits to both farmers and buyers. "In light of increasing marketing challenges, including fluctuating international market conditions, new trade regulations, standardization requirements, import restrictions, and rising competition, the domestic market alone cannot absorb the high volume of production. For exports, particularly to India-Bhutan's principal market, potatoes must now meet stringent standards, including being soil-free, pest-free, properly graded, and packed in standard weights" Lyonpo stated. Looking ahead, a similar Potato Trade Facilitation Center is currently under construction in Chumey, Bumthang, with plans to offer e-auction services by the coming year. Another facility is also planned for Khaling in the eastern region, aiming to extend these benefits further. The Chief Executive Officer of FCBL emphasized that implementing online auctions at the sources is a significant step towards advancing Bhutan's potato marketing development. FCBL started implementing an online e-auction system as part of Bhutan Commodities Exchange Initiative (BCEI) in 2016 with the establishment of two potato grading machines at Phuentsholing and Samdrup Jongkhar with the fund support from Enhanced Integrated Framework (EIF) and RSEBL. BCEI is a joint initiative of the FCBL, Royal Security Exchange of Bhutan Ltd. (RSEBL), and the Department of Marketing and Cooperatives (DAMC), primarily aimed at commercializing farm produce and standardizing the quality which would help to fetch a better price. "Now, the trend is gaining popularity. Still a lot more has to be done to convince our hardworking farmers about the advantages of online trading", stated FCBL CEO. As FCBL moves towards implementing online auctions at the source, the organization anticipates some initial challenges and seeks the full support and cooperation of farmers and stakeholders to ensure the successful implementation of these initiatives. Dasho Dzongdag of Wangdue Phodrang, UNDP Resident Representative, Local Leaders and the people of of Gangtey and Phobjikha attended the inaugural ceremony.