NEWS & EVENTS

Potato trade has seen a major transformation since the launch of the online auction system under the Bhutan Commodities Exchange Initiative (BCEI) in 2016. Potato trade has seen a major transformation since the launch of the online auction system under the Bhutan Commodities Exchange Initiative (BCEI) in 2016. Designed to streamline agricultural trade, standardise quality, and enhance market efficiency, the initiative was developed in collaboration with the Royal Securities Exchange of Bhutan Ltd. (RSEBL), the Food Corporation of Bhutan Limited, and the Department of Agricultural Marketing and Cooperatives under Ministry of Agriculture and Livestock. Between 2016 and 2024, BCEI has facilitated the trade of 127,254 lots of potatoes, generating Nu 153.9 million in revenue. The highest trade volume was recorded in 2019, with 36,646 lots sold, fetching Nu 48.7 million.However, the market saw a significant drop in 2023, with only 8,857 lots traded. This trend reversed in 2024, rebounding to 23,601 lots, earning Nu 34.19 million in revenue. Before BCEI, farmers had to transport their produce to Phuentsholing auction market, incurring high logistics and accommodation costs. The conventional system also exposed them to inconsistent pricing and deductions imposed by buyers who rechecked and reweighed the produce. "The online system reduces transaction costs, increases efficiency, and ensures fair pricing for both buyers and sellers," said an RSEBL official. The auction centre is equipped with washing, drying, grading, sorting, and packaging facilities, ensuring that Bhutanese potatoes meet export standards. This has strengthened demand in key markets such as Jaigaon, India and Nepal, which account for nearly 70 percent of Bhutan's potato exports. Despite its advantages, many farmers are hesitant to embrace the digital platform. "Farmers are reluctant to step out of their comfort zone," the RSEBL official said. "Our farmers have been used to auctioning the goods through conventional means." The RSEBL official said that to encourage wider adoption, stakeholders, including insurance companies and financial institutions, need to support the initiative. Bhutan produces around 30,000 metric tonnes of potatoes annually. By ensuring a structured and transparent bidding process, the online auction system is expected to further streamline trade, helping farmers secure better prices while minimising logistical challenges. One of BCEI's key advantages of the BCEI is its rigorous quality assurance process. Potatoes are sorted based on size and quality before being delivered to warehouses, ensuring that only premium-grade produce reaches buyers. This standardisation has boosted confidence among international traders, particularly in Jaigaon. The structured and transparent auction process reassures buyers, reducing disputes over weight deductions and quality concerns that were common in the conventional system. "By addressing these key challenges, the BCEI is paving the way for a more competitive and profitable agriculture sector in the country," said the RSEBL official.