LocationsA new era for potato farmers by enhancing efficiency and livelihoods in Gangtey
Gangtey's new Potato Trade Facilitation Center opens
July 25, 2024
Inauguration ceremony of the new Potato Trade Facilitation Center in Gangtey, Wagduephodrang
UNDP Bhutan / Karma Jamtsho
23rd July 2024, Gangtey, Wangdue Phodrang — Golley, 79, has been a potato farmer for over 50 years and still vividly recalls the challenges of transporting his potatoes to Phuntsholing for export to India. He endured long, hot nights and often couldn't sell his produce at the expected rates. The costs and difficulties were exacerbated by having to wait over two weeks to make a sale. On several occasions, he had to return home with unsold potatoes. Golley's experience and struggles are shared by many farmers in Gangtey and farmers from other districts.
Golley, 79, has been a potato farmer in Gangtey for the past 45 years
UNDP Bhutan / Karma Jamtsho
However, 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 Younten Phuntsho, Minister of Agriculture and Livestock (MoAL), signifies a major advancement for farmers in the region. For the first time, the MoAL and Food Corporation of Bhutan Limited (FCBL) has established this facility at the source, bringing convenience and benefits to the farmers.
The new facilitation center was launched by the Minister of Agriculture and Livestock, Resident Representative of UNDP, Member of the Parliament and the religious head of the district.
UNDP Bhutan / Karma Jamtsho
Supported through the GEF-LDCF UNDP, Hand-In-Hand-Initiatives of FAO and the Royal Government of Bhutan (RGoB) partnership with an investment of BTN 75.67 million, the center is equipped with state-of-the-art facilities for washing, drying, grading, sorting, packaging of potatoes and online auction services. This online auction system promises to streamline transactions by facilitating efficient management of bidding, pricing notifications, and payments, offering significant benefits to both farmers and buyers.
The center is equipped with state-of-the-art facilities for washing, drying, grading, sorting, packaging of potatoes and online auction services.
UNDP Bhutan / Karma Jamtsho
Farmers no longer need to endure long journeys to the Phuntsholing auction yard, saving both time and travel costs which at times reached more than BTN 100,000. Potatoes from the center will now meet proper standards for export which will also reduce significant post-harvest losses that occurred in the past.
Farmers from Gangtey harvesting their potatoes.
UNDP Bhutan / Lhendup Tharchen
“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. The Potato Trade Facilitation Center in Gangtey is designed to address such needs,” Lyonpo stated.
His Excellency Lyonpo Younten Phuntsho, Minister of Agriculture and Livestock
UNDP Bhutan / Karma Jamtsho
Phobjikha and Gangtey are significant potato-growing regions in Bhutan, with around 1,500 acres under cultivation. These areas are among the highest producers of potatoes, with 53% of Wangdue's potato acreage and 17% of Bhutan's total potato acreage. Together, they produce 12,000 metric tons of potatoes, accounting for 67% of Wangdue's total production and 37% of the national production.
The iconic Gangtey monastery and the village perched on a hill.
UNDP Bhutan / Karma Jamtsho
Approximately 90% of this produce by more than 1000 farmers is exported through auctions at Phuntsholing, making farmers heavily reliant on this method for marketing their potatoes. The total income from potato farming in Phobjikha and Gangtey amounts to BTN 133 million, representing 29% of the national potato export value.
The 12,000 metric tons of potatoes produced in Phobjikha and Gangtey can generate BTN 180 million. With an investment of about BTN 75 million so far, a single season's potato harvest could recoup the investment.
UNDP Bhutan / Karma Jamtsho
Mohammad Younus, Resident Representative of UNDP, described the Potato Trade Facilitation Center in Gangtey as a groundbreaking initiative and said that UNDP is proud to have supported the centre. “I have heard about the struggles of potato farmers who had to take their potatoes all the way to Phuentsoholing and spend days there to sell their harvests. With online auction system in place, they can now trade their potatoes from Gangtey. The centre will be a game changer that would enable farmers to get the most for their potato harvests, leading to increased exports, better prices and improved livelihoods.”
Mohammad Younus, Resident Representative of UNDP
UNDP Bhutan / Karma Jamtsho
A similar Potato Trade Facilitation Center is currently under construction in Chumey, Bumthang, with plans to offer online auction services by the coming year. Another facility is also planned for Khaling in the eastern region, aiming to extend these benefits further.
The potatoes coming out after the washing and drying process, it will then move to the sorting and grading process.
UNDP Bhutan / Karma Jamtsho
Dorji Tashi, Chief Executive Officer of FCBL, emphasized that the introduction of online auction at the sources is a significant step towards advancing Bhutan’s potato marketing development. The FCBL has reassured farmers that once their potatoes are packaged, they will be auctioned online, and the farmers will receive their payments within three days at the center.
Dorji Tashi, Chief Executive Officer of the Food Corporation of Bhutan Limited (FCBL)
UNDP Bhutan / Karma Jamtsho
The FCBL started implementing online auction system as part of the Bhutan Commodities Exchange Initiative (BCEI) in 2017. The 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 produces and standardizing the quality, which would help to fetch a better price.
The inauguration ceremony of the new Potato Trade Facilitation Center.
UNDP Bhutan / Karma Jamtsho
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.
The farmers of Gangtey and Phobjikha excited with the new center since it will ease their lives.
UNDP Bhutan / Karma Jamtsho
Golley and other farmers who have long endured the hardships of transporting their potatoes to distant auction yards, only to face uncertainties and losses, are now looking forward to the transformative impact of the new Potato Trade Facilitation Center. With its advanced facilities and online auction system, the center promises to alleviate the burdens of travel and post-harvest losses, ensuring farmers receive timely payments and better prices for their produce. This landmark development brings renewed hope and optimism for Golley and countless other farmers, as it marks the beginning of a new era of convenience, efficiency, and improved livelihoods in the region.
Media Contact: Karma Jamtsho, Programme Communications and Advocacy Analysts | Email: karma.jamtsho1@undp.org
