BHUTAN CHAMBER OF COMMERCE & INDUSTRY (BCCI) ECONOMIC RESOURCE MAPPING One District Three Products (ODTP)

Transcription

1 BHUTAN CHAMBER OF COMMERCE & INDUSTRY (BCCI) ECONOMIC RESOURCE MAPPING 2013 One District Three Products (ODTP) The Way Forward for Enhancing Rural-Urban Interconnectedness and Livelihood Copyright 2013 All Rights Reserved Research & Policy Department Bhutan Chamber of Commerce & Industry (BCCI)

2 EXECUTIVE SUMMARY Economic Resource Mapping 2013 The exercise on Economic Resource Mapping emanated as one of the intervening undertakings under the broad institutional goal set by the Hon ble President after being elected as the President of the Bhutan Chamber of Commerce & Industry (BCCI) in One of the broad goals set to accomplish under his leadership, as the President of the BCCI, is to create strong linkages between the rural communities and business communities and sensitize the importance of interdependence in promoting economic wellbeing of the citizens. The main objective of this exercise is to identify potential economic activities for twenty districts, which will enhance income-earning capacity and improve the livelihood, especially of the rural populace. Through various economic activities, it is anticipated that the rural and urban settings work coordinately and help each other in achieving their common ultimate goal. BCCI s Economic Resource Mapping 2013, therefore, identifies three products for each district, which have the potential for economic intervention towards enhancing the source of income generation. Agriculture and tourism sectors are the main focus for this resource mapping exercise. Aspects such as value addition opportunities, markets and overall business cases to enable connecting rural and urban settings have been considered while identifying the potential products. This document mainly uses available statistics, reports, articles and other publications to recommend most potential products for twenty Dzongkhags. With regard to agro-products, most recent production data have been used to select the most potential area. Similarly, in recommending tourism as potential product, trends for tourists arrivals, current attractions, potential attractions, and other essential factors for tourism development were taken into account. A detailed implementation framework for each district shall be prepared to support the resource-mapping exercise. While the resource mapping identifies economic sub-sectors for each district, prioritization of such activities shall be carried out at the time of framing out the implementation framework. Since the Economic Resource Mapping exercise is an outcome of purely desk-research, the Research & Policy Department (RPD) feels that it is essential to undertake field visits for validating the product selection and framing the implementation plan. Research & Policy Department, BCCI Page 1

3 Summary of selected products Dzongkhag-wise Economic Resource Mapping 2013 SL No. DZONGKHAG PRODUCT 1 PRODUCT 2 PRODUCT 3 1 Bumthang Medicinal Plants Tourism Oilseeds (Sunflower) 2 Chhukha Assorted Vegetables Dairy Farming Hazelnut 3 Dagana Maize Kiwi fruit Poultry 4 Gasa Tourism Medicinal Plants Vegetables 5 Haa Summer Vegetables Tourism Coldwater Fishery 6 Lhuntse Textiles Tourism Vegetables 7 Mongar Vegetables Mango Dairy Farming 8 Paro Tourism Fruits Vegetables 9 Pemagatshel Maize Fruits Vegetables 10 Punakha Tourism Vegetables Fruits 11 Samdrup Jongkhar Maize Oilseeds Vegetables & Spices 12 Samtse Paddy Fruits Spices (Cardamom & Ginger) 13 Sarpang Cereals Fruits Areca nut 14 Thimphu Vegetables Fruits Tourism 15 Trashigang Dairy Farming Vegetables Tourism 16 Trashiyangtse Wood turning (Shag Zo) Tourism Paper Making (De Zo) 17 Trongsa Oilseeds Dairy Farming Tourism 18 Tsirang Vegetables Avocado Poultry 19 Wangduephodrang Vegetable Cold Water Fishery Seeds & Seedlings Nursery 20 Zhemgang Fruits Vegetables Tourism Research & Policy Department, BCCI Page 2

4 BUMTHANG DZONGKHAG Economic Resource Mapping 2013 Brief profile Bumthang Dzongkhag has total area of 2, Sq. Km with an altitude ranging from meters above the sea level. Bumthang Dzongkhag has four Gewogs. It shares its border with China in the north, Mongar in the east, Zhemgang in the south and Trongsa in the west. Bumthang Dzongkhag is considered as one of the prosperous Dzongkhags in the country. The main sources of income for the people of Bumthang are from potatoes, livestock farms and more recently tourism related activities. The sale of Cordyceps, Masutake and medicinal plants are also supplementing their income (National Statistical Bureau [NSB], 2012a). Forest [MoAF], 2011a). Bumthang Dzongkhag had 7,215.5 acres of cultivated agriculture land in 2010, of which only 28.4 acres was used for cash crop cultivation (National Statistical Bureau [NSB], 2012b). Total area of 1,835 acres and 1,966 acres were used for cultivation of cereals and vegetables respectively (Ministry of Agriculture & The current population of Bumthang Dzongkhag stands at 18,383 (National Statistical Bureau [NSB], 2013). Research & Policy Department, BCCI Page 3

5 Economic Resource Mapping 2013 Potential products Tourism Bumthang Dzongkhag is one of the top tourist destinations in Bhutan. Bumthang Dzongkhag received 11,362 tourists in 2011, thus making fifth highest tourist receiving district in the country (NSB, 2012b). Today, the packaged tour allocates hardly two to three days for Bumthang Dzongkhag. Given its rich endowment for historical and spiritual legacy, there is a huge potential to brand and market Bumthang as an exclusive and exotic tourists destination by itself. Essentially, a packaged tour exclusively for Bumthang could be developed to encourage tourist to spend longer duration. Bumthang could be promoted as a centre for Buddhist or religious tourism. Bumthang has significant attractions and potential to introduce niche tourism products. Bumthang is the religious heartland of the nation and home to some of its oldest Buddhist temples and monasteries. Tales of Guru Padmasambhava and the tertons (religious treasure-discoverers) still linger in this sacred region. Bumthang district has some of the most ancient and important temples and monasteries in Bhutan with some of the oldest and most venerated temples located there. Some of the main religious sites for attraction include Jambay Lhakhang, Kurje Lhakhang, Tamshing Lhakhang, Mebar Tsho Burning Lake, etc. Apart from these sites, there could be many other spots across the villages worth exploring and bringing them into mainstream market. Bumthang also has many important festivals, which attract tourists in different seasons. Some of the popular festivals include Kurjey Tsechu, Nimalung Tsechu, Jambay Lakhang Drup, Tamshing Phala Chhoepa, Prakhar Duchhoed, Tangbi Mani, and Ura Yakchoe (Association of Bhutanese Tour Operators [ABTO], 2013). In addition, there are also many newer festivals like the annual Nomad s Festival and the Matsutake Mushroom Festival that have been significantly introduced. Considering the endowment of favorable elements for tourism promotion, Bumthang Dzongkhag could work towards inventorying and profiling the tourism attractions, creating new attractions and marketing Bumthang as an exotic tourist destination by itself. Research & Policy Department, BCCI Page 4

6 Oil seeds (Sunflower) Although there is no recorded statistics available for sunflower production, however, the media reports reveal that Bumthang Dzongkhag grows fairly a large amount of sunflower seeds. Therefore, Bumthang has a potential for large-scale production of oilseeds and venturing into small-scale value addition processes. Besides sunflower, Bumthang also grows other oilseeds like mustard. In 2011, Bumthang Dzongkhag produced 47 MT of mustard (MoAF 2011a). Bumthang Dzongkhag along with its neighbor district, Trongsa, indeed, will have the capacity to produce sufficient raw materials to support a small-scale cooking oil processing unit. Such business ventures could initially target the market within the community and slowly spread its supply chain to other communities. A small beginning like this will slowly lead to plugging in the leaks and lessen dependency on imported cooking oils in the longer run. There are many models that could be engaged for growing oilseeds and processing thereafter. Aspiring entrepreneur(s) could step in and set up processing plant, while farmers could supply raw materials. This is a win-win situation for the community. It could also be done otherwise. An entrepreneur or a group of new entrepreneurs can venture into both growing oilseeds and oil production. At the same time the community s produce would also be part of their raw material. Possibly, it could be done through Community Supported Agriculture (CSA), which provides a way for the producers to sell their goods locally. In such a program, the consumers share the operating cost and in exchange get the share of the production. Such program helps import substitution and the money stays within the local economy, which can be used for further development the program (Basu, 2005). Agro-ecologically, Bumthang offers a vast land with favorable climatic condition for commercial farming of sunflower. Research & Policy Department, BCCI Page 5

7 Medicinal & Aromatic Plants (MAP) Revamping of medical plants cultivation could be other area of focus for Bumthang Dzongkhag. In Bhutan, the cultivation of medicinal plants dates back to the reign of Bhutan s Second King, His Majesty Jigme Wangchuck, when the people of Bumthang valley cultivated two medicinal plant species manu (Innula helenium) and ruta (Saussurea lappa). However, it is known very little about the plants by the present generation of Bumthnag. The manu plant which has survived years of neglect is now cultivated in Ura by one family for supply to the NITM in Thimphu. However, the fate of the ruta is not clear (Ngawang, 1996). As many as 300 species of medicinal plants, which grow in diverse ecological zones of the country, have been identified so far and more than 200 of them are currently used by the Institute of Traditional Medicine Services (ITMS) in the formulation of 98 different essential gso-ba-rig-pa medicines. In 2007, 16 tons of medicinal plants were procured by ITMS alone and 85% of them, almost all wild species, were collected within the country (Wangchuk, Ugyen & Olsen, n.d). According to gso-ba Rig-pa, more than 2990 different types of raw materials are used in traditional medicine. However, at present about 265 different types of raw materials are used to produce 108 compounds of which 98 products constitute the essential list of traditional medicines. About 85% of raw materials are available within the country and remaining 15% are imported from India (Institute of Traditional Medicine Services [ITMS]). In terms of trade, the monetary value of MAP related global trade stands at over $60 billion and it is expected to grow to 5 trillion by the year 2050, as there is growing demand for medicinal plants regionally and internationally. Apart from the medicinal benefits, MAP serves as an avenue for crucial livelihood for millions of rural people in South Asia, particularly women, tribal people and the very poor (College of Natural Resource [CNR] n.d). Given the trade volume of MAP-related products, there is a scope for commercial growing of the medicinal and aromatic plants in the country. Bumthang, therefore, is one of the potential Dzongkhags that can embark into commercial cultivation of medicinal plants. Most of the research has raised concerns over sustainability of medicinal plants. Therefore, growing of medicinal and aromatic plants will save some of the endangered species and contribute towards sustaining of raw materials for traditional medicines in the country. Research & Policy Department, BCCI Page 6

8 CHHUKHA DZONGKHAG Economic Resource Mapping 2013 Brief profile Chhukha Dzongkhag covers an area of 1,802 sq. kilometers with elevations ranging from 200m to 3500m above sea level. The Dzongkhag has one Drungkhag and 11 Geogs. Overall arable land forms only around 4.63% of the Dzongkhag s total area with average land holding of 5.6 acres per household. Majority of the people depend on livestock and subsistence agricultural farming. Mandarin, potatoes and cardamom are the principal cash crops in the Dzongkhag. Despite favorable climatic conditions, farm productivity is low due to terrain conditions and lack of adequate farm infrastructure in particular farm roads (NSB, 2012a). As of 2010, Chhukha Dzongkhag had cultivated agriculture land area of 22,835.2 acres. For the same year, about 5,739.5 acres of agriculture land were used for cash crop cultivation (NSB, 2012b). Similarly, in 2011, Chhukha Dzogkhag had 7,351 acres of agriculture land under cereal cultivation, 4,711.3 acres was under vegetables cultivation and 1,298.9 acres was under spices cultivation (MoAF, 2011a). The current population of Chhukha Dzongkhag stands at 85,550 (NSB, 2013). Research & Policy Department, BCCI Page 7

9 Potential products Assorted Vegetables Chhukha Dzongkhag has scope for commercial production of assorted vegetables. Chhukha Dzongkhag is the fourth largest vegetable-producing district in the country. In 2011, the Dzongkhag produced 6,277 MT of vegetables. Therefore, going by the current production trend and favorability of agro-ecological conditions, Chhukha Dzongkhag has scope for focusing on assorted vegetables production on commercial scale. Ideally, Chhukha Dzongkhag has the advantage in marketing and selling the produce due to its proximity to the markets. Vegetables from the Dzongkhag could be easily marketed in border town of Phuntsholing and the Centenary Farmers Market (CFM) in Thimphu. Bhutan imports huge amount of vegetables from India. In 2011, Bhutan imported vegetable products worth Nu.1, m from India (Department of Revenue & Customs [DRC], 2011). Leave alone other districts, the Centenary Farmers Market (CFM) in Thimphu alone imports huge quantities of vegetables from India. However, the local produces have also gained market access to the local market. Department of Agriculture Marketing & Cooperatives (DAMC), MoAF analysis on weekly quantity trends for local and imported vegetables in Thimphu Centenary Farmers Market for the months of April, May, June & July 2012 observed that the quantity arrival for imported vegetables had decreased while the arrival of local produces has increased over the time. This by and large offers tremendous scope to go for import substitution through enhancement of local vegetable production. Besides catering to the local markets, the inter-dzongkhag vegetable trade can also be promoted. It could also cater to off-season requirements in India and Bangladesh. India and Bangladesh have huge vegetable deficit in summer months and imports quite a significant quantity for their local consumption. Therefore, commercial production of vegetables in the Dzongkhag can be promoted for both internal and external markets. Research & Policy Department, BCCI Page 8

10 Hazelnut Hazelnut is a quite selective plant considering its climatic requirements. Unlike other type of fruits in temperate climate, it flowers during winter months. It can be naturally cultivated under humid temperate climatic conditions but regions with annual mean temperature of C offers the most favorable conditions for cultivation. However, such regions must not have a minimum temperature in winter months below -8 to -10 C and the highest temperature in summer months above C. Also, the total annual precipitation should be over 750 mm and it should have a regular distribution over the months. Moreover, relative humidity should not go down below 60 % during the months of June and July particularly (Ustaoglu, 2012). According to Mountain Hazelnut Venture Pvt. Ltd, the hazelnut plantation is suitable for land above 1600 m above the sea level. Essentially, plantation is favorable in all the Dzongkhags with landscape of 1600 m above sea level. Currently, Mountain Hazelnut Venture Pvt. Ltd has undertaken plantation in Trashigang, Mongar, Trashiyangtse, Lhuntse, Bumthang, Zhemgang and Samdrup Jongkhar (T. Mindrup, personal communication, May 11, 2013) The Hazelnut plantation project is making a gradual impact in the field. Today, with the support from Council for RNR Research of Bhutan (CoRRB), MoAF, a semi-automated nursery with around 300,000 healthy hazelnut seedlings in Lingmethang, Mongar is fully operational. The preliminary outreach programs have managed to identify around 1,401 areas (615 in Trashigang, 274 in Trashiyangtse, 371 in Mongar, and 140 in Lhuentse) as potential plantation sites. About 2,132 farmers (739 in Trashigang, 468 in Trashiyangtse, 642 in Mongar, and 283 in Lhuentse) have already shown keen interest in hazelnut plantation. According to the proposal, more than 10 million hazelnut trees will be planted over an area of 20,000 acres of deforested and degraded mountain slopes. The trees are brought from the Unites States and England. Recently, the MoAF coined a new Dzongkha name Ha Zey (MoAF, 2011b). Considering its suitable agro-ecological conditions, Chhukha Dzongkhag has a good scope for hazelnut plantation. The climatic conditions, temperature, landscape and other factors make Chhukha a favourable location. Furthermore, Chhukha Dzongkhag has more than 70% of land with altitude above 1600 meters above sea level. Research & Policy Department, BCCI Page 9

11 Dairy farming Commercial dairy farming is other potential focused-area for Chhukha Dzongkhag. Chhukha Dzongkhag has significant livestock population and produces substantial amount of livestock products. In 2011, Chhukha Dzongkhag had cattle population of 24,959. It produced 1,865,288 kg of milk, 76,146 kg of butter and 125,813 kg of cheese in 2011(Ministry of Agriculture & Forest [MoAF], 2011c). Chhukha Dzongkhag has all-encompassing dairy farming, as all the Gewogs are equally involved in dairy farming. As such, there is scope for the Dzongkhag to enhance dairy production by keeping improved breed of cattle fleet. Possibly, a more organized dairy business could be established by connecting the farmers with aspiring entrepreneur(s). Aspiring entrepreneur(s) could step in by investing in infrastructures, while farmers could supply the required raw materials. An initial start could begin by establishing basic infrastructures like collection points at strategic locations. Such set-up will gradually progress to establishment of small-scale milk preservation unit or processing and packaging plant. Having such institutional set-up and markets within the district center will encourage the farmers to enhance their dairy production. As far as market is concerned, the dairy processing units in Phuntsholing could easily absorb the supply. These dairy processing units are not very far from the district center. Dairy product such as milk is required in huge quantities by the dairy processing units in Phuntsholing. Today, the dairy processing plants import milk from India, as the domestic supply is not sufficient to fulfill their requirement. Thus, Chhukha Dzongkhag has scope for enhancing its overall dairy production and formalizing the dairy value chain process. This may require collaborated efforts from all the relevant stakeholders. Firstly, the dairy producers must work towards maintaining the required quality. On the other hand, basic infrastructures that will enable efficient delivery of raw material to the production unit will have to be in place. On the whole, the collaborated efforts will gap the missing linkages between the buyers and the sellers. Research & Policy Department, BCCI Page 10

12 Brief profile DAGANA DZONGKHAG Dagana Dzongkhag is located in the southern part of the country covering an area of 1,389 Sq. Km. Geographically, Dagana Dzongkhag falls within the elevation ranging from 600 to 3800 meters above the sea level. The Dzongkhag lies within the temperate and sub-tropical zone with hot and wet summer and dry cold winter. Dagana is bordered by Thimphu and Chukha Dzongkhag in the West, Wangdue Dzongkhag in the north, Tsirang Dzongkhag in the East and the Indian State of West Bengal in the South. The Dzongkhag is divided into 14 Gewogs. Agriculture farming is the main source of income of the Dzongkhag. The climatic conditions are favorable for growing different types of crops such as paddy, maize, millet, mandarin, cardamom, banana, passion fruit, pear, avocado, and vegetables such as broccoli, cauliflower, cabbage, potato, chilies and tomatoes (NSB, 2012a). Dagana Dzongkhag had 18,623.6 acres of cultivated agricultural land as of 2010 (NSB, 2012b). The current population of Dagana Dzongkhag stands at 21,305 (NSB, 2013). Research & Policy Department, BCCI Page 11

13 Potential products Maize Dagana Dzongkhag is one of the top districts producing cereals in the country. Maize is the major cereal crop for the Dzongkhag and it constitutes over 45% of total cereal production. In 2011, Dagana Dzongkhag produced 6,612.3 MT of maize (MoAF, 2011a). However, maize is not widely used for making value added products and even its usage as food grain has drastically declined over the years. Dagana Dzongkhag is one of the six districts having self-sufficiency in cereal grains. In 2011, it had surplus cereal grains of 4,147 MT, which is the highest amongst the six cereal grains surplus districts (MoAF, 2013). The Dzongkhag also produces significant amount of paddy, which is the staple diet ( MT in 2011). Therefore, current production level of maize could be maintained and used productively to transform into value added product(s). Maize could be used productively in many ways. Instantly, one of the best selling products made from the maize that come in our mind is breakfast cereal. The other product could be the feeds. Capitalizing on the current production, Dagana Dzongkhag s maize could be used for producing cattle and poultry feeds to supply to the neighboring districts. Animal feeds will have good market because all of its neighboring districts are well known for dairy and poultry farming. This business venture, by and large, will be rescuer of the poultry business in the region. Today, shortage of poultry feed has become main constraint for the poultry farmers and survival of these backyard farms are at a stake. Research & Policy Department, BCCI Page 12

14 Kiwi Fruits Dagana Dzongkhag is one of the districts potential for large-scale fruits production because of its favorable agro-ecological conditions. Today, Dagana is the fourth largest fruits producing district in the country. In 2011, Dagana Dzongkhag produced 9,712 MT of fruits. Mandarin is the main fruit for the Dzongkhag. It produced 7,540 MT of mandarin in 2011 (MoAF, 2011a). Dagana Dzongkhag could continue with the improvement of existing major fruits by introducing high yielding varieties, expanding market linkages, and exploring possibility of value addition. A fully focused effort for enhancing earning capacity through adoption of select fruits could be adopted. Such focused efforts will enable the farmers to replace unproductive and degenerating fruits with the productive ones. As an effort towards prioritization of productive fruits, Dagana could introduce new fruit species, such as Kiwi fruit, which has better market value. Kiwi plantation, if introduced will be new species to try in Bhutan only, let alone Dagana. It is fairly a new crop although wild kiwifruit is found in many parts of Bhutan. The kiwifruit is borne on a vigorous, woody, twining vine or climbing shrub reaching 30 ft (9 m). There are 4 main Chinese classes of kiwifruit, namely, Zhong Hau, Jing Li, Ruan Zao & Mao Hua. The kiwifruit vine grows naturally at altitudes between 2,000 and 6,500 ft (600-2,000 m) (Morton, 1987). Kiwi is among the very few recent introductions, which have surpassed in popularity due to its tremendous commercial potential in the sub Himalayan region of India. A native to central China, it is being grown commercially in New Zealand, Italy, USA, Japan, Australia, France, Chile and Spain. In India, kiwi was first planted in the Lal Bagh Gardens at Bangalore as an ornamental tree. With extensive research and development support, its commercial cultivation has been extended to the mid-hills of Himachal Pradesh, Uttar Pradesh, Jammu and Kashmir, Sikkim, Meghalaya, Arunachal Pradesh and Nilgiri hills in India. Kiwi propagation is done through grafting, stratification, budding etc. Research & Policy Department, BCCI Page 13

15 Poultry farming In the recent past, Dagana Dzongkhag has emerged as one of the popular districts for poultry farming. As of 2011, the Dzongkhag had poultry population of 33,325 and produced 174,358 dozens of eggs (MoAF, 2011c). Today, Dagana s poultry population and the volume of poultry related trade might have gone up and could be a completely a different scenario compared to the last few years. Dagana Dzongkhag has surplus egg production and supplies to other districts. Accordingly, over the last few years, people involved for marketing Dagana eggs has also increased by significant numbers. Dagana eggs enjoy its popularity among the general consumers. Dagana has the potential to maintain its position as one of the main suppliers of eggs in the country. A collaborated effort to improve the poultry value chain will lead to more organized and sustainable poultry business in the Dzongkhag. The essential components of poultry value chain process may have to improve through certain initiatives and interventions. Some of the essential interventions could include improving the quality of packaging, increasing the shelf life, branding, marketing, infrastructure up-gradation, etc. to boost the overall demand of eggs. A proper strategy to expand supply contracts and delivery system could also be worked out to formalize the poultry sector. Furthermore, some preparatory works for embarking on value addition processes should also begin. Likewise, back-up plans to deal in a situation of overproduction may have to be prepared. It is evident that the consumers now prefer local eggs to imported eggs because of the size, taste, nutritional value, and shelf life. Dagana Dzongkhag, in next few years from now, should target to emerge as the main poultry product supplier in the country. Research & Policy Department, BCCI Page 14

16 GASA DZONGKHAG Economic Resource Mapping 2013 Brief profile Gasa Dzongkhag lies in the extreme northwest of the country. It is bordered by Punakha Dzongkhag towards southeast, Thimphu Dzongkhag in the southwest, Wangdue Phodrang Dzongkhag in the east and international boundary with Tibet Autonomous Region of China. The Dzongkhag has an area of 3, Sq Km, covering 11% of the total area of the whole country. The altitude ranges from 1,500 to 4,500 meters above sea level (NSB, 2012a). It experiences climate condition ranging from temperate to alpine with extremely cold winters, and short and pleasant summers. During winters, upper Gasa, Laya and Lunana experience heavy snow fall which keep them snow bound as the mountain passes become inaccessible. It receives an average annual rainfall of 2,000 mm. Currently, the Dzongkhag is administratively divided into four Gewogs namely, Goenkhatoe, Goenkhamae, Laya and Lunana. Lunana is the furthest and most remote Gewog amongst the four (NSB). As of 2010, Gasa Dzongkhag had cultivated agricultural land area of 1,309.4 acres (NSB, 2012). Gasa Dzongkhag s current population stands at 3,555 (NSB, 2013). Research & Policy Department, BCCI Page 15

17 Potential products Medicinal Plants Countries across the world attach a lot of importance for propagation of medicinal plants. Medicinal plants have been a source of income for the people living in the high altitude areas. In most of the countries the intervening organizations use propagation of medicinal plants as a means to augment cash income and poverty alleviation of the high altitude settlements. There are records for success in making impact using such intervening tools. Gasa Dzongkhag is well known for high altitude medicinal plants. Different pockets within the Dzongkhag serve as the source of medicinal plants applied for traditional medicine. The team from National Soil Services Centre (NSSC) under the Department of Agriculture, MoAF carried out study on soil and plant diversity along Gasa Lunana transect in 2011 by establishing 14 permanent reference plots at varying altitudes. The study found and recorded species used in Bhutanese Traditional Medicines in almost all the reference plots used for the study. Going by this report, the Dzongkhag has diversity of medicinal plants, which can be domesticated and produced on commercial scale. A number of medicinal plant species grown naturally in Bhutan have international market value. Among these are agar wood (Aquilaria agallocha), Rauvolfia serpentina, tshe (Ephedra gerardina), Himalayan yew (Taxus baccata), chutsa (Rheum nobile), chumtsa (Rheum accuminita), kutki/putishing (Picorrhiza kurroa), pangpoi (Nardostachys jatamansi), tsenduk rig (Aconitum spp.), and yartsa-gunbu (Cordyceps sinensis). All these exotic herbs are in high demand for pharmaceuticals preparation (Ngawang, 1996). Gasa Dzongkhag, therefore, should consider plantation of medicinal plants as one of the activities to create avenue for income earning and enhance livelihood of the people living in the high altitude area. Research & Policy Department, BCCI Page 16

18 Tourism Tourism promotion could be taken up as other potential area of focus for Gasa Dzongkhag. Gasa Dzongkhag was connected to other districts by road very recently. Since Gasa Dongkhag remained unique for a long time without road connectivity, its potential for tourism promotion too has remained unexplored. With the opening up of Gasa Dzongkhag with road connectivity, exploration for tourism has already begun. However, there is a lot more to be done in terms of exploring and profiling unique tourism attractions that the Dzongkhag offers. In terms of natural attractions, Gasa s hot (Tshachu) spring is well known to the people of Bhutan and gradually it is gaining its popularity amongst the tourist community. With the people around the world getting more into traditional way of healing diseases, there is a scope for the Dzongkhag to explore and expand its participation on such business opportunities. Hot spring s claimed medicinal value is one of the tourist attractions for the Dzongkhag. Gasa Dzongkhag is also well known for medicinal plants and has potential for preparing different types of traditional medicines. Gasa s hot spring s medicinal value combined with locally prepared traditional medicines readily available in the Dzongkhag could turn out to be a good combination for medical and wellness tourism. Such kind of tourism need not have to consider seasons and can go year round. Gasa Dzongkhag also has potential for developing other tourism products. Based on the suitability of seasons, Gasa Dzongkhag has scope for bundling tour packages for ecotourism, adventure travel, rural tourism, geotourism, etc. Gasa is the original habitat for the country s national animal Takin. Research & Policy Department, BCCI Page 17

19 Vegetables Gasa Dzongkhag has the lowest cultivated agricultural land holding in the country. In 2010, only 1,309.4 acres of agricultural land was cultivated (NSB, 2012b). Gasa Dzongkhag is also the least producer of vegetables. In 2011, Gasa Dzongkhag produced 635 MT of vegetables from its acres of land under vegetables cultivation (MoAF, 2011a). According to the Vegetable Availability Calendar 2012 of Council for RNR Research of Bhutan (CoRRB) and Department of Agriculture (DoA), MoAF, the major vegetables grown in the Dzongkhag today are beans, broccoli, cabbage, cauliflower, carrot, chili, potato, and radish. These vegetables are available mostly in summers and winters. Due to limited land and other inherent constraints, large-scale production may not be feasible. However, the Dzongkhag could at least produce that will meet its own requirement. Gradually, if productivity improved, it could plan for up-scaling the supply to its neighboring districts. Given its small population, vegetables requirement within the Dzongkhag may not be that huge like other bigger districts. Nevertheless, the anticipated growth of tourism within the Dzongkhag could absorb the extra produce. Research & Policy Department, BCCI Page 18

20 HAA DZONGKHAG Economic Resource Mapping 2013 Brief profile Haa Dzongkhag encompasses a total area of 1, Sq. Km with an altitude ranging from meters above the sea level. Haa is one of the least populated Dzongkhag after Gasa. The Dzongkhag has six Gewogs. It experiences cold and dry winters and wet and warm summers. The average temperature of Haa is 10.5 degree Celsius and winter temperature drops to as low as (-) 7 degree Celsius. On average Haa receives 785 millimeter of rainfall annually. Haa being located in very high altitude, the cultivatable agricultural land constitutes only around 2 % of the total area of the Dzongkhag. Majority of the people depend on livestock, forest product and business. Livestock rearing constitute an important economic activity in the Dzongkhag (NSB, 2012a). As of 2010, Haa Dzongkhag had total cultivated agricultural land area of 6,871.7 acres. Of the total cultivated agricultural land, 1,543.4 acres were used for cash crop cultivation (NSB, 2012b). Haa Dzongkhag s current population stands at 13,070 (NSB, 2013). Research & Policy Department, BCCI Page 19

21 Potential products Summer vegetables Enhancing production of summer vegetables could be one of the means to alleviate the earning capacity and livelihood of rural populace of Haa Dzongkhag. Haa Dzongkhag experiences cold winter and average temperature during winters comes down to 4.3 degree Celsius. Considering the favorability of the climatic and agro-ecological conditions, Haa Dzongkhag has scope for enhancing the production of summer vegetables. Ministry of Agriculture & Forest s vegetables availability calendar also show that majority of the vegetable production takes place during the summer months. Haa Dzongkhag, in 2011, produced 2,310 MT of vegetables from its 2,053 acres of land under vegetables cultivation (MoAF, 2011a). Haa Dzongkhag could further enhance its vegetable production by expanding the area under vegetable cultivation along with the prioritization of varieties grown. The Dzongkhag could also go for reorganization of current land used pattern. Land used for unproductive crops could be diverted for cultivation of productive crops having better commercial value. Summer vegetables can have access to markets in the neighboring countries, as Bhutan enjoys seasonal advantage in terms of vegetable production over its neighbors. Bhutan produces vegetables in summer. Bhutan has scope for exporting vegetables to India and Bangladesh, given the enormous absorption capacity of these two countries, especially during the off-seasons. India and Bangladesh face shortage of vegetables supply during the summers and autumns. Many off-season vegetables have been tested and have been found to yield good results (Tobgay, 2005). The Agricultural Marketing Services of the Ministry of Agriculture s trade display of Bhutanese Summer Vegetables and fruits in Dhaka, Bangladesh in 2004 have clearly demonstrated that there is a demand for certain Bhutanese summer vegetables. The display found that asparagus, French or round beans, broccoli, Bhutanese chili, cauliflower, ginger and tomato are in highest demand. Therefore, Haa Dzongkhag, by taking advantage of such market situations could generate greater benefits by supplying summer vegetables that are in short supply in the neighboring markets. Research & Policy Department, BCCI Page 20

22 Tourism Haa valley has been opened up for tourism since Tourism in the Dzongkhag is yet to be developed to its full potential. So are the tourism infrastructures. With the government recognizing tourism as one of the important and productive sectors, it provides a huge opportunity for tourism deficient Dzongkhag like Haa to promote tourism. The government has also identified Haa as the potential Dzongkhag for tourism promotion. Like other Dzongkhags the most common attractions for the tourists could be the historical sites and the festivals. Some of the famous sites in the valley are the 7 th century Lhakhang Karpo (White temple) and Lhakhang Nagpo (Black temple) at the foothills of venerated three brotherly mountains known as Meri Puensum. The other places of interest comprise of the 8 th century Juneydrag, Katsho Goempa, Drana Trashidingkha, Yangto goempa, Jamtoe Goempa, Shelkardrag, Takchu Goempa and Haa Goempa. Each one of these historical sites has it s own unique religious significance. Apart from the religious significances, Haa hosts an annual Summer Festival that showcases the unique lifestyles and culture of nomadic herders. During the summer festival, one can also take opportunity to see a rare White Poppy, which is endemic to Haa and cannot be seen elsewhere in the world. With its pristine forest and rugged hills, Haa provides an excellent location for hiking and mountain biking (adventure tourism). Its significance cannot limit itself to traditional attractions. There could be lot of untapped areas to develop into tourism products that can increase tourists visit frequency and duration of stay in the Dzongkhag. The business promotion organization such as Bhutan Chamber of Commerce & Industry (BCCI) and Association of Bhutanese Tour Operators (ABTO), using their networks with the like organizations abroad could explore technical assistance and professional expertise to develop innovative tourism products and tourism circuit for Haa Dzongkhag. Research & Policy Department, BCCI Page 21

23 Cold water fishery (Trout Farming) Possibly, other initiative to improve income-earning capacity could be through revamping of cold-water fishery in the Dzongkhag. Overall, aquaculture industry development in Bhutan is still at its infancy. Over the years, fish farming in the southern belts (warm water fishery) has picked up and recently the fish farming communities have come together to form association of their own. However, cold-water fishery in Bhutan is yet to pick up, although it is perceived a viable. At present, Bhutan does not have a functioning cold-water fish hatchery. Haa has the history of cold water fish hatchery (brown trout), which continued until 1980s. Fish hatchery in Haa has contributed towards establishing viable and self-replenishing stocks in number of streams and rivers in Haa, Thimphu, Paro, and some tributaries of Sankosh and Manas rivers basin. Study on Haa trout hatchery in the early 1990s found out that the chemical composition of soil and water in Haa was more conducive for fish culture than the foothills. While the foothill ponds would require liming to improve total alkalinity in order to increase fish production, this would be unnecessary in Haa as its soil contains the required natural properties for cold-water aquaculture. Haa Dzongkhag should capitalize on such potential that has been proven feasible. With the support from the National Centre for Aquaculture, MoAF, production of other varieties of trout could also be attempted. Haa valley has potential for trout farming to produce fingerlings and table-sized fish that can be supplied within and outside the Dzongkhag. As far as market is concerned, there is good demand for trouts. The high-end hotels of nearby Dzongkhags could easily absorb the table-sized trouts. It need not necessarily limit to selling as fresh product. It has scope for selling as a smoked and dried product, which will enhance shelf life on one hand, and gain international market access on the other hand. With the proper packaging, labeling, branding and marketing, such value added product could penetrate international markets and fetch premium prices. Research & Policy Department, BCCI Page 22

24 LHUNTSE DZONGKHAG Economic Resource Mapping 2013 Brief profile Lhuntse Dzongkhag is bordered by China in the north, Mongar in the south, Tashiyangtse in the east and Bumthang in the west. It has a total area of 2,847 Sq. Km with an altitude ranging from meters above the sea level. The Dzongkhag has eight Gewogs. Lhuntse Dzongkhag experiences average temperature of 17.4 degree Celsius. Annually, the Dzongkhag receives 2,019 millimeters of rainfall (NSB, 2012a). insignificant (NSB, 2012). As of 2010, Lhuntse Dzongkhag had 14,592 acres of cultivated agricultural land. However, only 2.2 acres are under cash crop cultivation, which is Lhuntse Dzongkhag s current population stands at 17,133 (NSB, 2013). Research & Policy Department, BCCI Page 23

25 Potential products Vegetables Lhuntse is one of the Dzongkhags that has acute shortage of vegetables. This shortage provides opportunity for the people of Lhuntse Dzongkhag to start organized vegetable production and supply to the market. Lhuntse Dzongkhag produced 3,404 MT of vegetables in 2011, and among the eastern districts, Lhuntse Dzongkhag produced the least. Given the current shortage in the Dzongkhag, market seems not to be a concern for the producers. Vegetable supply from the farms could be easily absorbed within the Dzongkhag thereby substituting the imports. However, its production endeavor should not limit to market within the Dzongkhag alone. Eastern Bhutan s vegetables supplies have scope to sell in the bordering Indian markets of Assam. Provided the Dzongkhag could enhance productivity and hit the right seasonal requirement, the vegetables from Lhuntse could also form a part of vegetable export basket to Bangladesh. Lhuntse Dzongkhag s current vegetable cultivated area stands at 3,365.3 acres (MoAF, 2011a). However, there is an opportunity to reallocate land used for unproductive crops and divert to productive vegetable varieties. Cultivated area for vegetables could be expanded through right interventions. Above all, Lhuntse entering into a large-scale vegetable production would help the Dzongkhag to catch up with other districts in terms of vegetables self-sufficiency. The business promotion organization like BCCI could also play an important role by partnering with Dzongkhag s Agriculture Sector, Regional Agriculture Marketing & Cooperatives (RAMCO) and the Ministry of Agriculture & Forest (MoAF) in facilitating the growth of the sector. BCCI could step in and help strengthen some of the missing links in Dzongkhag s vegetable value chain process. One essential initiative could be helping the famers to find reputed and reliable dealers to buy their produce (market mainstreaming). Research & Policy Department, BCCI Page 24

26 Textiles The United Nations Development Program (UNDP) Bhutan s comparative study on costs of hand-woven textiles of Bhutan and Laos found out that the Bhutanese hand-woven textiles, on the average is about 40% more expensive than similar product produced in Laos due to the unsuitability of the Bhutanese back-strap loom for large-scale commercial production of hand-woven textiles; high cost of materials; lack of uniformity in the products; absence of value and supply chain; lack of proper knowledge in dying techniques; lack of knowledge in yarn qualities; and the absence of a systematic method of pricing final products. The study recognizes the need for holistic approach to transform Bhutanese textile industry from a supplementary income generation activity into a more structured commercially based industrial activity, through technological and skills interventions, modes of production and long term planning and policy support (United Nations Development Program [UNDP], n.d). Lhuntse Dzongkhag is well known for a weaving culture. Lhuntse is known to be a home of distinctive Kishuthara weaving in the east. Its remoteness by location has special historic and cultural importance. For this reason, people around the country now believe Lhuntse Dzongkhag as one of the potential centers for supply of textile products. Among the villages of Lhuntse, Khoma in particular enjoys special recognition for its famous weaving tradition. The village folk girls in their early age engages themselves in hand weaving occupation and therefore believes that much of their livelihood is sustained through weaving business. While still striving to preserve the rare and unique textiles woven by the communities of Lhuntse Dzongkhag, interventions through encouraging commercial production will help enhance livelihood of women folks. Given the strong weaving culture in the Dzongkhag, enhancing of textiles production through integration of efficient technology and skills could be well received by the communities. Commercializing textiles production will enhance the earning capacity of the women folks who mainly depends on weaving for the major chunk of their cash income. Introduction of innovative product designs, which will create demand in the international markets, could be taken up earnestly in commercialization efforts. Besides, possibility of manufacturing ready-made garments could be explored. The BCCI through its networks could seek for technical support of textile value chain development experts to begin commercial production and thereafter come up with innovatively designed textile products. Research & Policy Department, BCCI Page 25

27 Tourism Unlike other Dzongkhags, tourism in Lhuntse is yet to be developed. In 2011, Lhuntse Dzongkhag received 288 tourists (NSB, 2012b). However, given its strong historical base there is potential for the Dzongkhag to promote tourism, which will directly or indirectly improve income generation for both urban and rural populace. Of the many attractions, one of the unique selling points the Dzongkhag could capitalize in promotion of tourism is Lhuntse historically being an ancestral home for the Wangchuck Dynasty. This could be one of the important attraction tools to market and sell Lhuntse as a tourists hot spot. Dungkar Ngatshang, the house of Dungkar, one of the noble lineages from Kurtoe was home to the Trongsa Penlop Jigme Namgyal, the father of Wangchuck Dynasty. Dungkar Ngatshang, the ancient home of the Dungkar Chojie stands amid a scenic backdrop of towering mountains overlooking the tiny Dungkar village below. The significance of the Dzongkhag for tourism is also because of some of the rare and undiscovered religious sites with its own beauty and significance. To name a few secret sites, it include Kilung Lhakhang, Jangchubling monastery, Singye Dzong, Khenpa Jong, etc. The Dzongkhag also has presence of ancient ruins of the underground palace of Bangtsho King in Tsenkhar Gewog. The other area of interest for the tourists could be Gangzur village for traditional pottery, a dying art which is done by women folks without using wheel; Khoma village to see its signature woven textile, the Kishuthara; Tshokar and Tshona lakes above Singye Dzong. Ethnic festivals like Priu in Gangzur, Haa in Metsho and Lhacham in Khoma Gewogs; and hot springs at Khenpajong are other attractions for the Dzongkhag. Besides cultural trekking, the Dzongkhag has potential for adventure sports such as Kayaking down the Kurichu, paragliding, rock climbing, etc. Black necked cranes also arrive in Membi Gewog in the first Bhutanese month and can be seen in the paddy fields at Tangmachu. Developing full-fledged tourism business in the Dzongkhag will require coordinated interventions from all the stakeholders. It could include bundling the attractions and market Lhunste as an exclusive destination by itself. A focused tourism development in eastern districts like Lhuntse is seen necessary for contributing towards balanced distribution of tourism benefits in the country. Research & Policy Department, BCCI Page 26

28 MONGAR DZONGKHAG Economic Resource Mapping 2013 Brief profile Mongar Dzongkhag is 450 km east of Thimphu, the capital city of Bhutan. It has an area of about 1,947 sq.km with elevation ranging from meters above sea level. Mongar Dzongkhag has 17 Gewogs. The lower and southern parts are sub-tropical while northern and higher regions have temperate climatic conditions. Summer can be hot and humid and winter cold. The Dzongkhag experiences average temperature of 18.4 degree Celsius and receive an annual rainfall of 1,794 millimeters. While maize and rice are grown abundantly, citrus fruits and vegetables, dairy and poultry products are increasingly becoming important sources of cash income (NSB, 2012a). As of 2010, Mongar Dzongkhag had 14,182.1 acres of cultivated agricultural land (NSB, 2012b). Although 10,467 acres, 7,866 acres and 300 acres of land were under cultivation of cereals, vegetables and spices respectively, only 8 acres constituted cash crop cultivation in 2010 (MoAF, 2011a, NSB, 2012b). Mongar Dzongkhag s current population stands at 42,632 with male and female almost equally divided (NSB, 2013). Research & Policy Department, BCCI Page 27

29 Potential products Mangoes Mango cultivation in the east started in the eighties by Tashi Group of Companies. Later in 1994, the Ministry of Agriculture started promoting mango in the east as one of the activities under cash crop promotion and development program. The main objective of introducing improved varieties of mango was to diversify fruit production and cash income for the farmers. Over 50,000 mango seedlings have been distributed to various Gewogs of Mongar Dzongkhag by MoA, and some trees have begun to fruit that has started to appear in the market. However, it was reported that fruit setting is very less. Mango is a tropical fruit but can be grown up to 1200 m above the sea level. However, its quality is poor beyond 600 m above the sea level. The study found out that the altitudes for mangoes in Mongar ranged from 600 to 1500 m above sea level, with 28.5 % of the total mango trees planted beyond the upper limit of altitude ranges suitable for mango cultivation. Mango varieties promoted in the Dzongkhag were 50-60% Langra, 30-40% Dashehari and 5-10% Chausa (Tshering & Phuntsho, 2007). Mongar Dzongkhag has substantial amount of land suitable for mango cultivation. As of 2011, Mongar Dzongkhag had 3,448 bearing trees that produced 110 MT of mangoes (MoAF, 2011a). Over 15.3% of the land is in the range of altitude below 600 m above sea level and 26.4% within the altitude range of m above the sea level (NSB, 2012b). The Dzongkhag experiences temperature, which is ideal for mango cultivation. The research by RNRRC Wengkhar, MoAF has already identified what went wrong for earlier promotion and new cultivation could be followed in line with the recommendations given by the research center. With the support from relevant agencies, selection of Gewogs suitable for cultivation could be worked out for starting propagation of mango cultivation in Mongar. An Intermediary Business Organization (IBO) like BCCI could step in to complete marketing and value addition processes. For sure, the mango production from the Dzongkhag could easily absorbed within the country itself, as there are fruit processing plants with huge requirement for this raw material. The most crucial intervention required will be to connect the producers with the production units. Even the possibility of establishing mango-pulping unit in Monagar or Samdrup Jongkhar could eventually be explored. Research & Policy Department, BCCI Page 28

30 Vegetables Mongar Dzongkhag is the second largest vegetable-producing district in the east after Trashigang Dzongkhag. Mongar Dzongkhag produced 7,574 MT of vegetables in 2011 from its 7,866 acres of land under vegetables cultivation (MoAF, 2011a). Vegetable productivity for the Dzongkhag is quite encouraging. Therefore, it has the scope to work towards up-scaling the production and supply to schools, institutions, weekend market, and the districts, which have short supply of vegetables. Above all, with the required amount of vegetable production, the farmers could target high-end markets within and markets in Indian bordering town of Assam and to Bangladesh. As the second largest vegetable producing Dzongkhag, Mongar has scope for taking advantage of off-season vegetable shortages in Assam and Bangladesh and become off-season vegetable supplier to these neighboring markets. With the opening up of new trade routes that pass through North Eastern Region of India, export of agricultural produce from eastern Bhutan to Bangladesh has become more convenient. By virtue of RNR Research Center and Regional Agriculture Marketing and Cooperatives (RAMCO) based within the Dzongkhag, Mongar has an added advantage in terms of agriculture services. The farmers are bound to get timely advice on introduction of viable varieties from the research center, while RAMCO will take care of marketing component. As such, there is a huge scope for the Dzongkhag to explore and introduce new varieties having better commercial value. For promotion of this economic sector, the BCCI as the national IBO has its own productive role in creating market linkages and gapping the missing links in vegetable value chain process. BCCI can be a party to this initiative as a partner with RAMCO, SNV, and Market Access and Growth Intensification Project (MAGIP). Market mainstreaming of excess produce with the external markets through identification of buyers can be one area of intervention that BCCI can promote for long-term sustainability of this agricultural activity. Facilitation of value addition process, in essence, through identification of appropriate technologies that would ultimately ensure preservation and surplus for lean season would be another area of intervention. Research & Policy Department, BCCI Page 29

31 Dairy Farming It is acknowledged at the national level that Mongar Dzongkhag has a very strong base of dairy farming. The initiatives and the efforts of Ministry of Agriculture and Forest (MoAF) have proven to be fruitful in enhancing the dairy production and diversifying the source of income. All the Gewogs in the Dzongkhag, today have at least a dairy cooperative a forum that could work closely with other stakeholders in furthering dairy as a organized business activity in the future. Bhutan has a negative trade balance of livestock products such as milk, butter and cheese. In 2010, the national trade balance of milk, butter and cheese were (3,048 MT), (351 MT) and (944 MT) respectively (MoAF 2013). Mongar Dzongkhag, therefore, capitalizing on it s potential and up scaling the production will help improve the trade balance on one hand, and enhance income generation capacity for the rural populace on the other. Mongar Dzongkhag has significant livestock population and produces substantial amount of livestock products. In 2011, Mongar had livestock population of 68,939, which produced 2,180,111 kg of milk, 102,122 kg of butter and 193,271 kg of cheese (MoAF, 2011c). Unless additional dairy processing units are established in the potential districts, enhancing the dairy production alone cannot lead to self-sufficiency of dairy products. There must be alternative ways to make end products and such institutional set up will entice producers to produce more. In order to achieve a long run goal of self-sufficiency, at least a beginning could be made now by organizing initiatives in a harmonized manner with assured markets for the dairy farmers. Business promotion organization like BCCI could explore possibility of establishing a small processing unit. Such a unit could be under the ownership of the local cooperative or promoted by private sector investor. Research & Policy Department, BCCI Page 30

32 PARO DZONGKHAG Economic Resource Mapping 2013 Brief profile Paro Dzongkhag shares its border with China in the North, Thimphu Dzongkhag in the east, Haa Dzongkhag in the west and Chhukha Dzongkhag in the south. It has ten Gewogs, namely, Dogar, Dopshari, Doteng, Hungrel, Lamgong, Luni, Naja, Shaba, Tsento and Wangchang (NSB, 2012a). Paro Dzongkhag has a total area of 1,293.2 Sq.Km with an altitude of 2,500 meters above the sea level. It has an average temperature of 13 degree Celsius and receives annual rainfall of 3,716 millimeters. Paro Dzongkhag has a favorable terrain and easy road accessibility. It is considered as one of the prosperous Dzongkhags in the country. The main sources of income for the people of Paro are from paddy, apples, vegetables, livestock farms and tourism related activities (NSB). As of 2010, Paro Dzongkhag had 15,667 acres of cultivated agricultural land with some area under cash crop cultivation (NSB, 2012b). In 2011, the Dzongkhag also had 5,389 acres and 4,647 acres of agriculture land under cereals and vegetables cultivation respectively (MoAF, 2011a). The current population of Paro Dzongkhag stands at 41,558 (NSB, 2013). Research & Policy Department, BCCI Page 31

33 Potential products Vegetables Paro Dzongkhag s vegetable production forms substantial amount of country s domestic vegetables supply. Paro is the fifth largest vegetable producing Dzongkhag in the country. In 2011, Paro Dzongkhag produced 5,972 MT of vegetables from its 4,647 acres of agriculture land under vegetable cultivation. Major vegetables produced by Paro Dzongkhag are potatoes, chili, beans, radish, etc. (MoAF, 2011a). Besides paddy cultivation, vegetable cultivation is one of the major agricultural activities in the Dzongkhag. Since the Dzongkhag has significant area of fertile and a flat agricultural land, encouraging commercial vegetables production could work towards improving negative vegetable trade balance in the country in general and income earning capacity for the people of Paro in particular. The current economic situation demands a focused intervention with specific targets that will contribute in correcting the overall economic situation of the country. Paro Dzongkhag enjoys comparative advantages over other Dzongkhags due to a number of reasons. Firstly, it is very close to Thimphu, which has huge market for local vegetables. Secondly, it makes easier for the Dzongkhag to supply its vegetables to selective markets abroad by virtue of having international airport located there. Moreover, it also has comparative edge to export its vegetables to the neighboring markets. With fairly large land holdings supported by convenient terrain, farm mechanization has been introduced quite significantly in Paro. The modern technique of agriculture farming could be further promoted to boost up output. Paro Dzongkhag, for its rural livelihood enhancement program, could consider commercial vegetable production as one of its main activities. Research & Policy Department, BCCI Page 32

34 Fruits Paro Dzongkhag produces substantial amount of fruits. Apple dominates the entire fruits production. The Dzongkhag also produces some amount of peaches, plum, walnut, mango and pear. In 2011, Paro Dzongkhag produced 10,333MT of apples from 282,464 bearing trees. Overall fruits production for the year was 10,510 MT and Paro Dzongkhag was third largest fruit producing district in the country (MoAF, 2011a). Apples form substantial portion of both agricultural export and overall export basket. In 2011, Bhutan exported Nu.101 million worth of apples (MoAF, 2013). Paro Dzongkhag falls under warm temperate agro-ecological zone. Among the major feasible agricultural activities under this zone, temperate fruit trees grow well. These temperate fruits have wide scope for value additions and have markets within the country. Paro Dzongkhag has substantial amount of fertile land that can be used for commercial plantation of these fruits. Commercial production of these fruits will diversify the focus of fruits production and supplement its main cash crop, the apples. The availability of theses fruits varies in season. Provided farmers produce sufficient quantity of these fruits, setting up of a small-scale integrated fruits processing unit could also be explored. Such establishment could be feasible because the seasonal difference in their availability can keep production unit engaged year round. Research & Policy Department, BCCI Page 33

35 Tourism Paro is one of the tourism developed Dzongkhags in the country. In 2011, Paro Dzongkhag received 36,432 tourists and significant bed-nights were spent in Paro (NSB, 2012b). Paro Dzongkhag has potential for further development of tourism activities. Tourists often spend several days in Paro, as it has a lot of attraction to offer to these visitors. Paro Dzongkhag has over 155 temples and monasteries, some dating as far back as 14 th century. Among those is the temple that is considered Bhutan s most iconic landmark, the Taktsang Monastery, internationally known as the Tiger s Nest. This magnificent monastery was constructed upon a sheer cliff face, hundreds of meters above forests of oak and rhododendrons and the valley floor. Similar cliff-side temples in the Dzongkhag are Dzongdrakha Temple and Kila Gompa. Due to the close proximity of the airport and the many historical and religious sites in the region, there are a large number of luxurious, high-end tourist resorts in Paro catering to the visitors. Paro is also a home to the National Museum of Bhutan. The museum is set in Paro Ta Dzong, an ancient watchtower that now displays hundreds of ancient Bhutanese artifacts and artwork including traditional costumes, armor, weaponry and handcrafted implements for daily life those days. The collection at the National Museum preserves a snapshot of the rich cultural traditional heritage of the country. Another site worth visiting while in Paro is Drugyel Dzong or The Fortress of the Victorious Bhutanese. This dzong was constructed by Zhabdrung Ngawang Namgyal in 1646 to commemorate his victory over marauding Tibetan armies. Other historical attractions include Rimpung Dzong, Kyichu Lhakhang, Tachog Lhakhang, etc. The tourists also visit Paro for Jomolhari Trek, Laya Gasa Trek and Druk Path Trek. Paro Dzongkhag has many other tourist attraction potentials that can be added to the existing attractions profile. Some of the potentials include a new trek route to Drakey Pang Tso Lake connecting either the Druk Path to Jomolhari Path; shorter trek routes from Taktsang to Bumdra and down to Sangchokhor; day hikes to Zuri temple to Gorina Gompa, Hedi Gompa etc; the ruins of Donamdzong; and mountain biking such as, Kasadrapchu Jili dzong Paro or Wochu Dzongdraka Bondey. Chuzum Haa Paro Chuzum could be also a great bicycling circuit. Research & Policy Department, BCCI Page 34

36 PEMA GATSHEL DZONGKHAG Economic Resource Mapping 2013 Brief profile Pemagatshel Dzongkhag covers an area of about 1, Sq. Km with an elevation ranging from 1,000-3,500 meters above the sea level. The Dzongkhag shares border with Tashigang in the north & north-east, Mongar in the north-west, Zhemgang in the west & Samdrup Jongkhar in the south & south-east. It has eleven Gewogs, namely, Chhimoong, Chhoekhorling, Chongshing, Dechhenling, Dungmin, Khar, Nanong, Norboogang, Shumar,Yurung and Zobel. Pemagatshel has moderate climatic condition and quite hot at lower altitude during summer. It experiences average temperature of 16.2 degree Celsius and receives 5191 millimeters of rainfall annually (NSB, 2012a). The main sources of income for the people of the Dzongkhag are from agriculture and livestock. Maize is the main cereal crop of Pemagatshel Dzongkhag. Other crops like oranges, potatoes, and sub-tropical fruits and vegetables are cultivated in most of the villages. As of 2010, Pemagatsel Dzongkhag had a total cultivated agricultural land of 12,988.1 acres. However, only 1,533 acres of land were under cash crop cultivation (NSB, 2012b). The current population of Pemagathsel Dzongkhag stands at 15,303 (BSB, 2013). Research & Policy Department, BCCI Page 35

37 Potential products Vegetables Over the years, Pemagatshel Dzongkhag could enhance its vegetable production with the collaborated support and interventions of various agencies working towards agricultural output enhancement. Pemagatshel Dzongkhag has the potential to produce at par with other eastern districts. In 2011, it produced 4,498 MT of vegetables from its 4,928.3 acres of agricultural land under vegetable cultivation (MoAF, 2011a). Of the total cultivated agricultural land of 12,988 acres in 2010, a substantial amount of land was under cash crop cultivation. For the year 2010, 1,533 acres of land were under cash crop cultivation (NSB 2012b). Today, the main market for the Dzongkhag s vegetables supply are schools, institutions, and the markets in bordering town like Samdrup Jongkhar. As long as the Dzongkhag has potential to produce, market for the produce could be explored beyond Samdrup Jongkhar. Its proximity to Indian border town is an added advantage for external market. As far as the availability is concerned, most of the vegetables are available throughout the year. Pemagathsel Dzongkhag, besides supplying to domestic markets, could export its vegetables to Assam in India, which has huge off-season vegetables shortages. Moreover, exporting to Bangladesh market has also become easier with the opening up of new trade route passing through North Eastern Region of India. Like India, Bangladesh has a huge shortage of vegetables in summer. Pemagatshel Dzongkhag could take up commercial farming of vegetables to supplement other eastern districts and to pool quantities required by these markets. Unless all the eastern districts concentrate on commercial production of vegetables, it may not be able to take advantage of off-season vegetables shortages in India and Bangladesh. Economies of supplies are essential to be achieved in order to ensure and attract the above external markets and make this trade sustainable. Research & Policy Department, BCCI Page 36

38 Fruits Overall, Pemagatshel is the second largest fruit producing Dzongkhag in the country. It produced 15,789 MT of fruits in Of the total fruits production, over 90% is mandarin production. Pemagatshel Dzongkhag supplied 14,687 MT of mandarin in As of 2011, Pemagtshel Dzongkhag had 775,311 mandarin trees with 422,006 bearing fruits (MoAF, 2011a). Pemagatshel Dzongkhag falls under humid sub-tropical agro-ecological zone, which is good for tropical fruit trees. Even today the Dzongkhag grows wide variety of tropical fruits. Except for mandarin, other fruits are not grown on commercial scale. With the so called greening disease already taking its toll on the mandarin production in the country, Dzongkhag like Pemagatshel that concentrates on mandarin needs to explore possibility of diversifying into other horticultural fruits such as peach, plum, guava, litchi, etc. It could start commercial production of these select fruits that has confirmed demand in the market, and it is this dynamic that invites timely intervention of the support institutions. Fruits from the Dzongkhag could be easily absorbed within the domestic market. Today, our agroprocessing units in the country imports huge amount of raw materials from outside. The institutional set up for fruits value chain will follow only if there is a sustainable level of production within. Recognizing the opportunities that the current markets have on offer, Pemagatshel Dzongkhag could embark on diversifying its fruit varieties and enhance production level. Such initiative could work out to be successful intervention for improving the rural livelihood of the local people. Research & Policy Department, BCCI Page 37

39 Maize Enhancing the maize production and value adding on it could be one of the intervening activities for Pemagatshel Dzongkhag to up-lift the rural livelihood in the Dzongkhag. In terms of food-grains sufficiency through domestic production, only six Dzongkhags have surplus and rest of the Dzongkhags are in deficit. Pemagatshel is one among the food-grain deficient districts. In 2011 Pemagashel dzongkhag had cereal-grains shortage of 1,842 MT (MoAF, 2013). Unlike in the past, today rice has emerged to be the main staple diet for the Bhutanese population. As such, paddy production in the Dzongkhags will be the main determining factor for level of food-grain self-sufficiency for a particular district. In 2011, Pemagatshel Dzongkhag produced only 183 MT of paddy, which is one of the least among the eastern districts (MoAF, 2011a). Although Pemagatshel Dzongkhag produces significant amount of maize, it still has deficit in cereal grains because maize is not used widely as food grains like in the past. Enhancement of maize production may not necessarily translate to improvement in food-grain sufficiency, as it is not widely preferred as a food grain. However, the farmers could still continue to produce more and use it productively. Maize could be used in various ways to transform into value added products. Pemagatshel Dzongkhag could embark on cattle and poultry feed processing activity and become supplier of feeds to the rest of the eastern districts. Over the years, the eastern Bhutan has expanded the volume of dairy and poultry farming. Therefore, there is a huge requirement of feeds for cattle and poultry. The six eastern districts had 240,579 no of livestock population in 2011, which in itself confirms the availability of feeds market (MoAF, 2011c). Research & Policy Department, BCCI Page 38

40 PUNAKHA DZONGKHAG Economic Resource Mapping 2013 Brief profile Punakha Dzongkhag has a total area of 1, sq. Km. The Dzongkhag consists of eleven Geogs, namely, Chhubu, Dzomi, Goenshari, Guma, Kabjisa, Lingmukha, Shenga, Bjimi, Talo, Toewang, Barb and Toep. The Dzonkhag s altitude ranges from 1,200 meters to 4,800 meters. It experiences an average temperature of 21.8 degree Celsius and receives average annual rainfall of 614 mm. Punakha Dzongkhag produces significant amount of cereals, vegetables and fruits. The main cereal crops grown in the Dzongkhag are paddy, wheat, maize, and mustard. Fruits such as Persimmon (locally known as Anday), Guavas, Peaches, Plums, Pears and even Sub-tropical Apples are grown here. But citrus fruit is the main fruit grown in the Dzongkhag. The vegetables like Chilies, Radish, Cabbages, Brinjals, and Green leaved vegetables and Tomatoes are also cultivated (NSB, 2012a). Its 22% of the total area is cultivable land. As of 2010, Punakha Dzongkhag had 13,227.5 acres of cultivated agriculture land with significant area under cash crop cultivation (NSB, 2012b). Punakha Dzogkhag s current population stands at 20,374 (NSB, 2013). Research & Policy Department, BCCI Page 39

41 Potential products Tourism Punakha Dzongkhag is one of the top tourist receiving districts in the country. In 2011, Punakha Dzongkhag received 12,023 tourists and spent significant number of bed nights (NSB, 2012b). By virtue of Dzongkhag being attached to so many important Bhutanese histories, it has emerged to be one of the important tourist attractions in the country. Punakha Dzongkhag served as the capital of the country from 1637 to 1907 and the first national assembly was hosted there in Punakha is located in the western part of Bhutan and is the winter home of the Je Khenpo, the Chief Abbot of Bhutan. Punakha Dzong and temples like Chimi Lhakhang are main attractions for the Dzongkhag. Punakha Dzong, besides its structural beauty, is notable for containing the preserved remains of Zhabdrung Ngawang Namgyal, the unifier of Bhutan as well as a sacred relic known as the Ranjung Karsapani. This relic is a selfcreated image of Avalokiteswara that miraculously emerged from the vertebrae of Tsangpa Gyarey, the founder of the Drukpa School when he was cremated. The important Buddhist festivals that are of interest to the tourists are Punakha Drubchen and Punakha Tshechu. Zhabdrung Ngawang Namgyel introduced Punakha Drubchen, which is a unique festival for the Dzongkhag in the 17 th century to commemorate the victory over Tibetan forces that were after the very precious relic, the Ranjung Kharsapani. Punakha Tsechu was introduced in 2005 by the 70 th Je Khenpo Trulku Jigme Choedra to preserve Buddhist teachings and keep alive the noble deeds of Zhabdrung Rimpoche. Whitewater sports on Pho Chhu and Mo Chhu and hot springs also serve as attractions for the tourists. Although Punakha Dzongkhag is already developed in terms of tourism, the additional interventions could be initiated to create new tourism products and integrate with the mainstream market. Possibly, the untapped areas potential for tourists attraction could be explored and, accordingly, the amenities could be developed with the support from tourism experts. One extensive exercise required to this end will be to bundle the existing and new tourism attractions for destination marketing of Punakha Dzongkhag by itself. By developing a separate tourism circuit for the Dzongkhag, the sector could encourage the visitors to spend longer duration. Research & Policy Department, BCCI Page 40

42 Vegetables Punakha Dzongkhag is one of the districts, which has surplus in cereal grains. However, when it comes to vegetable production, Punakha Dzongkhag does not occupy significant position in terms of production ranking. But it does not mean that Punakha is not viable for commercial production of vegetables. It has the scope and potential for embarking on commercial production because of many favorable elements. Punakha Dzongkhag, in 2011, produced only 2,268 MT of vegetables from its 2, acres of vegetables cultivated land (MoAF, 2011). It has a reasonable productivity level. Even today, if we visit Centenary Farmers Market (CFM) in Thimphu, vegetables from Punakha Dzongkhag form significant quantum. Punakha Dzongkhag has significant amount of cultivated agricultural land. As of 2010, it had 13,227.5 acres of cultivated land (NSB, 2012b). Punakha Dzongkhag s lower level of vegetable production and limited area under cash crop cultivation could be because of its concentration for paddy cultivation as a traditional farm used practice. While the Dzongkhag could continue to expand its area under paddy cultivation, it could also exploit its potential for vegetable production to generate larger benefits of diversification. One avenue available as a worthy intervention is to promote scientific crop rotation. Its altitude and other climatic conditions favor agricultural practices throughout the year. Punakha Dzongkhag s vegetable availability that matches the seasonal shortages in neighboring markets can be a reliable basis for commercial production. The business promotion organization like the Chamber could entice aspiring entrepreneurs to enter into commercial farming. It could facilitate interested parties to get Government Reserved Forest Land on lease to start commercial agricultural activities. Market studies for select varieties of vegetables could be undertaken and create proper linkages with reliable and reputed dealers. This could enable the producers to prioritize their crop varieties for large-scale production. Research & Policy Department, BCCI Page 41

43 Fruits Punakha Dzongkhag could take up commercial production of fruits as other focus area for enhancing the livelihood of rural populace. Punakha Dzongkhag is spread over two agro-ecological zones Alpine and Cool Temperate. Such diversity of agro-ecological zones provides wider scope for growing different varieties of fruits. Punakha Dzongkhag grows varieties and produces significant amount of fruits. In 2011, the Dzongkhag produced 1,201 MT of fruits (MoAF, 2011). The main fruits grown are mandarin, banana, guava, peach, plum, mango, passion fruit, etc. Almost all the fruits that grow in the Dzongkhag are in demand by the agro processing units in the country. Therefore, Punakha Dzongkhag should take advantage of such opportunities and start production of select productive fruits on a commercial scale. In so doing, land used for unproductive crops could be diverted for productive crops. If required, government land could also be taken on lease to support commercial production of fruits and promote private sector participation. On the whole, the domestic supply of fruits will help agro processing units of Bhutan reduce their dependency on imported raw materials. An IBO like BCCI s role becomes necessary to gap the missing links in the value chain. Its interventions such as creating mechanism for connecting buyers and sellers, getting subsidy support, creating access to finance, etc, will contribute towards completing fruit value chain successfully. Research & Policy Department, BCCI Page 42

44 SAMDRUP JONGKHAR DZONGKHAG Economic Resource Mapping 2013 Brief profile Samdrup Jongkhar Dzongkhag lies in the South Eastern part of Bhutan bordering the Indian states of Assam and Arunachal Pradesh. The Dzongkhag has a total area of approximately 1, Sq. Km. The major portion of the Dzongkhag falls within the subtropical belt with elevations ranging from meters above sea level. It has hot summer with average temperature of 24 degree Celsius. The Dzongkhag receives average annual rainfall of 4,288 mm (NSB, 2012a). The Dzongkhag Administration unit comprises of 2 Dungkhags and 11 Gewogs. With large fertile plain area, rich mineral deposits and sub-tropical climate, the Dzongkhag has high potential for agricultural and other economic activities. It is also the gateway and commercial hub for other five eastern Dzongkhags with many industrial and mining operations (NSB). Samdrup Jongkhar Dzongkhag, as of 2010 had 20,087.9 acres of cultivated agricultural land (NSB, 2012). Majority of the area is used for cereal cultivation. As per the Agriculture Statistics 2011, 12,059 acres of land are under cereal cultivation. A significant area of agriculture land is also used for vegetables and spices production. Samdrup Jongkhar Dzongkhag s current population stands at 46,338 (NSB, 2013). Research & Policy Department, BCCI Page 43

45 Potential products Maize Among the six eastern districts, Samdrup Jongkhar Dzongkhag produces the highest amount of maize. Of the major cereal grains, maize is the main cereal and Samdrup Jongkhar Dzongkhag produced MT of maize, which accounted 56.5% of the cereal grains in 2011 (MoAF, 2011a). Samdrup Jongkhar Dzongkhag do produces paddy. However, the Dzongkhag is still a food-grain deficient. Samdrup Jongkhar could continue enhancing paddy production and at the same time look for ways to use maize production more productively. As far as value addition potential is concerned, there are many ways maize could be processed and sold in the market. Maize can be used for making corn meal, oil, feed, biofuel, whisky, etc. Samdrup Jongkhar, for its efforts towards maize value addition could begin with production of small-scale breakfast cereals. Readily available raw materials coupled with proximity to market makes Samdrup Jongkhar favorable for production and marketing of its maize product, the breakfast cereals. Its products could be marketed among the high-end hotels, supermarkets, schools, monasteries and other institutions. Among the regional markets Samdrup Jongkhar could target its nearest market, the North Eastern Region of India. Research & Policy Department, BCCI Page 44

46 Vegetables and spices Samdrup Jongkhar Dzongkhag, which is spread over humid sub-tropical and wet sub-tropical agroecological zones, has good scope for vegetables and spices production as proven by the available statistics Samdrup Jongkhar is the fourth largest spice producing Dzongkhag. Similarly, it is the sixth largest district that produces vegetables. In 2011, Samdrup Jongkhar Dzongkhag produced 5,205 MT of vegetables and MT of spices. The cultivated area of vegetables and spices in the same period were 6,858.7 acres and acres respectively (MoAF, 2011a). Samdrup Jongkhar could take advantage of market trends by growing selective vegetables. Under the spices category, Samdrup Jongkhar Dzongkhag could specialize in ginger production. By virtue of its proximity to the border and the state capital of Assam, Guwahati, it has comparative advantage over other eastern districts in terms of access to market. Vegetables from Samdrup Jongkhar have huge scope vis-à-vis an offseason shortage in Assam, India and also in Bangladesh. Likewise, there is good market for Samdrup Jongkhar s ginger in India and Bangladesh. Furthermore, linking with Nepal, which deals in import and export of spices could also be explored for market diversification. Research & Policy Department, BCCI Page 45

47 Oilseeds production Oilseeds production and processing of oilseeds in Samdrup Jongkhar Dzongkhag could be a successful venture in its initiative for up-lifting the rural livelihood. Samdrup Jongkhar has the potential to emerge as the main supplier of vegetable cooking oils for the eastern Bhutan. Some of the major oilseeds for extracting vegetable cooking oil are grown well in Samdrup Jongkhar. In 2011, Samdrup Jongkhar Dzongkhag produced 78 MT of mustard and 61 MT of soya bean (MoAF, 2011a). However, no statistics are available for sunflower production, although sunflower also grows well in Samdrup Jongkhar. Samdrup Jongkhar could emphasize on enhancing the production of major oilseeds like mustard, soya bean and sunflower. It could first work on increasing the level of production to encourage and justify potential entrepreneurs to invest on infrastructures. After enhancing the production of these three major oilseeds, Samdrup Jongkhar could set up integrated small oil extracting plant. For the initial supplies, it could target its market within the six eastern districts. However, once it picks up the production scale, its distribution network could be extended to other districts. Research & Policy Department, BCCI Page 46

48 SAMTSE DZONGKHAG Economic Resource Mapping 2013 Brief profile Samtse Dzongkhag lies in the South Western part of Bhutan bordered by Chukha Dzongkhag in the east, Haa Dzongkhag in the north and Indian State of West Bengal and Sikkim in the south and west respectively. The Dzongkhag is divided into 2 Dungkhags and 15 Gewogs. The Dzongkhag has a total area of approximately Sq. Km. The major portion of the Dzongkhag falls within the sub-tropical belt with elevations ranging from 200-3,500 meters above the sea level. The Dzongkhag experiences average temperature of 22.6 degree Celsius and receive average annual rainfall of 11,487 mm. With large fertile plain area, rich mineral deposits and subtropical climate, the Dzongkhag has a high potential for agricultural and other economic activities. The main source of income of the people of this Dzongkhag is from cash crops like cardamom, oranges, ginger and areca nut (NSB, 2012a). Samtse Dzongkhag, as of 2010, had 42,913 acres of cultivated agricultural land with the highest area under cash crop cultivation of 8,732.2 acres (NSB, 2012b). It is well known for cereal production with 18,649 acres of agriculture land under cereal cultivation. The Dzongkhag also has highest area under spices cultivation (MoAF, 2011a). The current population of Samtse Dzongkhag stands at 68,553 (NSB, 2013). Research & Policy Department, BCCI Page 47

49 Potential products Paddy Overall, Samtse Dzongkhag is the topmost cereal-producing district in the country. The total cereal production comprising of six major cereals, namely, paddy, maize, buckwheat, wheat, millet, and barley was 17,700 MT in Its major cereal is paddy followed by significant amount of maize. In 2011, Samtse Dzongkhag produced 8,867 MT of paddy from its 8,446 acres of land under paddy cultivation. The yield per acre seems to be reasonable with 1,050 MT/acre. In terms of area under cereal cultivation too, Samtse Dzongkhag holds the highest. As of 2011, approximately 18,649 acres of land were under cereals cultivation (MoAF, 2011a). Although Samtse Dzongkhag is the topmost cereal-producing district, it has deficit when it comes to self-sufficiency of cereal-grains. In 2011, the Dzongkhag had cereal-grains deficit of 7,452 MT (MoAF, 2013). In order to gap the deficit and also to target for surplus production, Samtse Dzongkhag, which has potential for cereals, could specialize in paddy production. Its cereal cultivation needs to be prioritized based on utility as the food-grain. Currently, nearly 55% of area under cultivation in Samtse Dzongkhag is used for unproductive cereals, which could be diverted for paddy cultivation. Moreover, Samtse being in the subtropical belt with plain topography, it has a favorable agro-ecological condition for commercial cultivation of paddy. The business promotion organizations like BCCI could step in to triggering interest of the local entrepreneurs with financial capacity to invest in commercial cultivation of paddy. Entrepreneurs could be encouraged to support in milling, packaging, marketing and introduction of modern technology to develop this sub-sector, while the farmers could continue to work on enhancing the level of paddy production. On a need basis, it could also facilitate entrepreneurs acquiring GRF land on lease and government support for taking the product to the international markets. Research & Policy Department, BCCI Page 48

50 Fruits Samtse Dzongkhag is the seventh topmost fruit-producing district in the country. In 2011, Samtse Dzongkhag produced 7,125 MT of fruits (MoAF, 2011a). Mandarin is the main fruit for Samtse Dzongkhag. However, other tropical fruit varieties are also grown. Samtse Dzongkhag, for its effort towards enhancing the livelihood of rural populace could encourage diversification of fruits production along with scaling up the same. Samtse Dzongkhag could specialize in growing few select tropical fruits like Litchi, Mango, and Passion fruit. As compared to other districts, Samtse Dzongkhag has better a scope for large-scale fruits production. Unlike other districts, fruits market for Samtse Dzongkhag is not really a matter of concern. Samtse Dzongkhag has well-established agro-processing units, which can buy its produce. Prioritization and selection of fruits for commercial production could be based on the requirement of the processing units. The producers, on the other hand, could also prioritize in introducing high yielding varieties and modern technologies for harvesting, grading and storages facilities to ensure quality supply as required by the buyers. Buyers and sellers could also enter into contract farming arrangements for smooth and sustainable business practices for achieving a win-win situation. Business promotion organizations like BCCI could step in and facilitate such processes. Research & Policy Department, BCCI Page 49

51 Spices (Cardamom & Ginger) Samtse Dzongkhag is the topmost spices-producing district in the country. In 2011, Samtse Dzongkhag produced 2,704.6 MT of species from its 3,559.4 acres of land under spices cultivation (MoAF, 2011a). Major spices cultivated are cardamom, ginger, garlic and onion. Cardamom and ginger are main spices grown in Samtse Dzongkhag. Samtse Dzongkhag leads in production of both cardamom and ginger. In 2011, Samtse Dzongkhag produced 499 MT of cardamom from 2,086 acres of land under cardamom cultivation. Similarly, in the same year, Samtse Dzongkhag produced 2,214 MT of ginger from 1,395 acres of land under ginger cultivation. The yield per acre for both the crops are significant and have potential for up scaling the production (MoAF, 2013). Samtse Dzongkhag is considered to be one of the districts that has potential for commercial cultivation of cardamom. Cardamom and ginger has huge market in the neighboring markets and beyond. Because of its proximity to the market, Samtse Dzongkhag has advantage to export its spices to Bangladesh, which is a potential destination again. Likewise, it could also explore possibilities of exporting the spices to Nepal, which deals in huge amount of spices export and import. Cardamom and ginger are supposed to have longer shelf life as compared to other perishable crops. These agro produce offer a wide scope to go for value addition for better returns. Research & Policy Department, BCCI Page 50

52 SARPANG DZONGKHAG Economic Resource Mapping 2013 Brief profile Sarpang Dzongkhag is situated in the south-central foothills bordering India. The area of the Dzongkhag stretches from Phipsoo Wildlife Sanctuary in the west to Manas National Park in the east. The Dzongkhag shares about 200 km of common border with the Indian state of Assam to the south and the Dzongkhags of Tsirang and Dagana to the west, Zhemgang to the east and Trongsa to the north. It encompasses a total geographical area of approximately 1,666 Sq.km. Its topographical features have undulated terrain with an elevation ranging from 200m to 3600m above sea level. The Dzongkhag experiences hot summer and the average annual temperature is 22.8 degree Celsius. It also receives average annual rainfall of 7,163 mm. Sarpang Dzongkhag is divided into one Dungkhag and 12 Gewogs (NSB, 2012a). Paddy, maize, wheat, and millet are some of the major crops cultivated in the Dzongkhag. The farmers of the Dzongkhag grow orange, areca nut, cardamom and ginger as principal cash crops. Sarpang Dzongkhag, as of 2010, had total cultivated agriculture land of 16,439.4 acres with 2,699.6 acres of land under cash crop cultivation (NSB, 2012b). Favorable terrain and climatic conditions combined with fertile agriculture land offer tremendous opportunity for farm mechanization and commercial horticultural development. Sarpang Dzongkhag s current population stands at 48,978 (NSB, 2013). Research & Policy Department, BCCI Page 51

53 Potential products Paddy In terms of cereal production, Sarpang Dzongkhag is the second largest producer next to Samtse Dzongkhag. In 2011, Sarpang Dzongkhag produced total cereals of 17,322 MT from its 16,019 acres of land under cereal cultivation. Of the total production, 8,704 MT accounted for paddy from its 7,206 acres of cultivated area. The yield per acre for the year was 1,208 MT (MoAF, 2011a). Sarpang shares similar story with the Samtse Dzongkhag when it comes to self-sufficiency in cereal grains. Despite it being the second largest cereal producing Dzongkhag, it has food-grain shortage, lowest though. Sarpang Dzongkhag, in 2011, had deficit of 155 MT of cereal grains (MoAF, 2013). In order to achieve dual objective of gapping the deficit within the Dzongkhag and produce surplus for selling in the commercial market, the Dzongkhag could capitalize on its productive crops like paddy. A large-scale production of paddy will be feasible with current level of productivity. There is a scope to interchange the land usage pattern. Currently, nearly 55% of agricultural land is used for unproductive cereal crops. This portion of land could be diverted for cultivation of productive crop such as paddy. Enhancement of paddy production could be achieved through various interventions. Public Private partnership could be practiced for paddy production for large-scale paddy cultivation. The farmers could concentrate on production, while the entrepreneurs could be roped in for milling, warehousing, packing, storage, marketing, and modern farming technologies towards improving efficiency. Interested entrepreneurs could also start commercial production of paddy by leasing Government Reserved Forest land. Research & Policy Department, BCCI Page 52

54 Fruits Sarpang Dzongkhag is the topmost fruit producing districts in Bhutan. In 2011, the Dzongkhag produced 21,042 MT of fruits. Mandarin and areca nut are major fruits for the Dzongkhag. In 2011, it produced 15,389 MT of mandarin and 3,915 MT of areca nut (MoAF, 2011a). As far as these two cash crops market is concerned, its believed to be fairly developed compared to other horticulture crops. Therefore, intervention efforts could be focused on other fruits, which are yet to gain market access both within and outside Bhutan. Unless right interventions are targeted, timely tapping of potential resources may not happen. Sarpang Dzongkhag falls under tropical agro-ecological zone, which is suitable for tropical fruits. Even today, it grows a wide variety of fruits but not on commercial scale. Although feasible, the scale of production is not huge. To this end, Sarpang Dzongkhag could prioritize the varieties that can be grown on a commercial scale. It could focus on selective varieties, which have market value and commercial production potential. Furthermore, the productivity of select fruits must be considered while prioritizing for commercial production. Sarpang Dzongkhag, in its efforts for diversification, should consider fruits like litchi, banana, mango, pear and passion fruit for commercial production. Establishment of processing plant could be explored as and when the production level of select fruits stabilizes. Research & Policy Department, BCCI Page 53

55 Areca nuts (plantation & processing) Sarpang Dzongkhag is the top areca nuts producing district in the country. In 2011, Sarpang Dzongkhag had around 943,182 areca nut trees, of which 428,372 trees bore fruits. These fruit bearing trees produced 3,915 MT of areca nuts in the same year (MoAF, 2013). Areca nut forms important aspect of social, cultural and religious occasions in Bhutan. Areca nut is widely chewed by the people of Bhutan irrespective of occasions. Some of the southern and eastern districts produce areca nut and sell it to India. But the irony is that the entire produce is first sold to India and later bought back at a premium price. Again, import of areca nuts far exceeds domestic production. In view of this, the government must encourage large-scale areca nuts cultivation to meet the domestic requirement. India once a net importer of areca nut had stopped import of areca nuts by encouraging large-scale plantation with required institutional support. Bhutan, at the same time, must also work towards diversification of market by starting value addition. The commonly value-added product of areca nut is scented supari, which is greatly demanded in Northern India. Such value addition process enables it to fetch higher prices and diversify its market. By-products like husk of nuts can also be utilized productively making particleboards, paper, etc. Sarpang Dzongkhag, which is the most potential district for areca nut production could enter into largescale production and emerge as the main supplier of areca nuts in the country. Government, on the other hand, could provide necessary support in terms of access to land, finance, incentives, technical backstopping, etc. It may also be essential to undertake research on its application for manufacturing natural dye. Research & Policy Department, BCCI Page 54

56 THIMPHU DZONGKHAG Economic Resource Mapping 2013 Brief profile Thimphu is the capital city of Bhutan. It lies in the Western part of Bhutan bordering with Gasa and Punakha Dzongkhags in the east, Chukha and Dagana in the south, Paro Dzongkhag in the west and Tibet in the north. Thimphu Dzongkhag has one Dungkhag and eight Gewogs. Being the national capital, Thimphu Dzongkhag is one of the developed Dzongkhags in the country. It has many important historical, cultural and religious heritage sites. Thimphu Dzongkhag provides large domestic market for the agricultural and livestock products as it being predominant economic and trading hub for the western region (NSB, 2012a). the fast growing urban population offers a huge potential for absorption of these products locally. Over the years, the Dzongkhag had reduced agricultural land use due to urbanization. As of 2010, Thimphu Dzongkhag had only 5,619.2 acres of cultivated agricultural land (NSB, 2012b). Thimphu Dzongkhag s current population stands at 118,249 (NSB, 2013) Research & Policy Department, BCCI Page 55

57 Potential products Vegetables Possibly, Thimphu Dzongkhag could be one of the highest vegetables consuming districts because of its population. So are the vegetable imports. There is a huge requirement of vegetables for the Dzongkhag. Thimphu Dzongkhag produces significant amount of vegetables but the internal supply is way below what is required in the market. In 2011, Thimphu Dzongkhag produced 3,211 MT of vegetables from its 2,417.6 acres of land under vegetable cultivation (MoAF, 2011a). The productivity level or yield per acre is also quite reasonable one for the Dzongkhag. Thimphu Dzongkhag is spread over three different agro-ecological zones. Parts of Thimphu fall under Alpine (ALP) with altitude range of meters above the sea level, Cool Temperate (CT) with altitude range of meters above the sea level and Warm Temperate (WT) with altitude rage of meters above the sea level. The diversity of agro-ecological zones provides Thimphu a wider scope of growing wide variety of vegetables that can be sold within Thimphu. Its diversity spreads vegetable availability in different seasons of the year offering choices to the consumers. If the availability of land permits, Thimphu Dzongkhag has the scope to expand its area under vegetables growing. A large-scale vegetables farming if supported by the government through availability of leased land could be viable due to its huge requirement in the market. The Community Supported Agriculture (CSA) could be thought of as a viable option. Thimphu s available produce supplemented by supply from other places could be pooled in and sold through an organized outlet. It has scope to open fresh fruits and vegetables outlets at few strategic locations to cater to the middle and high-income consumers. Such outlets can only sell locally produced fruits and vegetables. Major chunk of middle and high-income consumers who are health conscious lives in Thimphu. Research & Policy Department, BCCI Page 56

58 Tourism Thimphu Dzongkhag is well developed in terms of tourism activities. In 2011, it received 35,282 tourists making it second highest tourists receiving district. Tourists bed-nights for the Dzongkhag were significant for the same year (NSB, 2012b). Thimphu has significant amount of attractions to offer to the visitors. In addition, tour operation services and infrastructures are concentrated in Thimphu, which offers added advantage for the Dzongkhag. Tourism activities in Thimphu are mostly urban-centered. Collaborated interventions deem necessary in order to further develop tourism in the Dzongkhag. Innovative tourism attractions that will encourage tourists to spend longer stay could be explored and developed. One option could be to establish a fully systematized entertainment or spending centers that will offer unique and rich experiences. Integration of rural tourism with the urban-centric tourism activities is worth exploring. In so doing, it could create separate area that would offer a typical Bhutanese experience. It could include a fully traditional Bhutanese accommodation and traditional food varieties. Such infrastructures could be taken to areas where there are rural settlements. Research & Policy Department, BCCI Page 57

59 Fruits Thimphu Dzongkhag has second lowest cultivated agricultural land holdings. This could be due to rapid loss of agricultural land for urbanization. According to 2010 statistics, Thimphu Dzongkhag had 5,619.2 acres of cultivated agricultural land (NSB, 2012b). However, Thimphu is among the top fruit producing districts in Bhutan. In 2011, Thimphu Dzongkhag produced 81,174 MT of fruits (MoAF, 2011a). Among the fruit varieties, apple is produced in huge quantity. Since the Dzongkhag is constrained by limited agricultural land, reorganization of farming practices may have to be undertaken. This would require prioritization of productive temperate fruit varieties. Land under unproductive crops could be utilized for productive crops and adopt selective varieties. It could work towards specialization in cultivation of select productive fruits. Such shift in cultivation practice may require adoption of modern practices along with the technological changes. It could also start production of selective new fruit varieties by leasing government reserve land on lease. Research & Policy Department, BCCI Page 58

60 TRASHIGANG DZONGKHAG Economic Resource Mapping 2013 Brief profile Trashigang Dzongkhag is bordered by Mongar Dzongkhag in the west, Samdrup Jongkhar and Pemagatshel Dzongkhag in the South, Trashi Yangtse Dzongkhag in the north and Indian state of Arunachal Pradesh in the east. Trashigang is one of the largest Dzongkhag in the Kingdom with a total area of about 2,204 Sq. Km. It has three Drungkhags and fifteen Gewogs. The Dzongkhag s elevation ranges from 600 m to over 4500 m above the sea level. The climate is mainly temperate with an average annual rainfall of 5,613 mm. The Dzongkhag experiences average annual temperature of 17.7 degree Celsius. The Dzongkhag also receives an average annual rainfall of 5613 mm (NSB, 2012a). producing Dzongkhag in the country (MoAF, 2011a). Trashigang Dzongkhag, as of 2010, had 15,871.3 acres of cultivated agriculture land (NSB, 2012b). Trashigang Dzongkhag is the top vegetable Trashigang Dzongkhag s current population stands at 56,905 (NSB, 2013). Research & Policy Department, BCCI Page 59

61 Potential products Vegetables Trashigang Dzongkhag is the topmost vegetable-producing district in the country. In 2011, the Dzongkhag produced 13,424 MT of vegetables from its 11,628 acres of land under vegetable cultivation (MoAF, 2011a). Trashigang Dzongkhag, as of 2010, had a total cultivated agriculture land holding of 15,871.3 acres. However, no accurate data on cash crop cultivation is recorded and available in the national statistics (NSB, 2012b). Trashigang Dzongkhag could begin large-scale production with two broad objectives of supplying summer vegetables to neighboring markets and starting inter-dzongkhag trade of vegetables. Firstly, vegetable production during the summer could supplement other eastern districts to fill up the summer vegetable export basket. To realize this objective, the Dzongkhag could identify potential areas, which will grow vegetables that are short supply in neighboring markets during summer season. In so doing, necessary R&D support from the research centers may have to be sought, particularly to ensure that vegetable production in the Dzongkhag rightly hit the seasonal shortage in the neighboring markets. Secondly, excess production could be supplied to vegetable deficient districts by creating strong mechanism for inter-dzongkhag trade practices. Through such trade channel, it could help reducing other districts dependency on imported vegetables. Besides enticing farmers to expand cultivation, the Dzongkhag could also invite private sector participation to take up large-scale production of vegetables. To promote such activity within the Dzongkhag through private sector participation in commercial farming, the government needs to consider its support towards fast track leasing of land under convenient terms and conditions, possibly assure the farmers minimum support price and continue to deliver the ongoing backup support through its RNR extension offices. Research & Policy Department, BCCI Page 60

62 Dairy farming Amongst the eastern districts, Trashigang Dzongkhag is considered to have fairly developed and organized dairy farming system. In order to distribute balanced economic benefits of source of livelihood, intervention in terms of dairy farming promotion could be considered. In the mean time the agricultural activities at the lower altitudes favored by convenient terrains should continue its priority on agricultural activities. In 2011, Trashigang Dzongkhag had livestock population of 61,688. However, scenario could be different today and significant changes might have occurred in terms of numbers and the quality of animals maintained by the farmers. Trashigang Dzongkhag produces substantial amount of livestock products. In 2011, it produced 32,77,385 Kg of milk, 103,239 Kg of butter and 184,412 Kg of cheese. Merak Gewog produces highest quantity of milk and Sakteng Gewog produces highest quantity of butter and cheese (MoAF, 2011c). Trashigang Dzongkhag has potential to further enhance the production and commercialization of dairy business. In order to formalize dairy business in the Dzongkhag, modern dairy business management practices could be adopted. The government, on its part, could continue supplying improved breeds; develop proper value chain linkages; establish collection centers; storage facilities; and other infrastructures necessary for organized trade on livestock products. Public -Private Partnership model in dairy sector could be explored with the existing dairy groups and cooperatives to encourage professionalism in management and operation of dairy business. Research & Policy Department, BCCI Page 61

63 Tourism For a large Dzongkhag like Trashigang, tourism promotion could be considered as significant intervention creating avenues for income generation. Trashigang has the potential to further develop its tourism activities. Trashigang Dzongkhag being the largest district in the country with people from diverse ethnic culture and traditional practices, tourism that embeds their unique culture and tradition in the tourism product could be promoted. However, for achieving this identification and profiling of tourism sites, local festivals, ethic values and practices, etc, needs to be undertaken fast. Although Trashigang Dzongkhag received 2,875 tourists in 2011, it is not very significant for a large Dzongkhag like Trashigang, when compared to tourism dominant districts (NSB, 2012b). Similarly, bed nights spent may not be that significant. Moreover, not many of the tour operators offer tour package that includes Trashigang Dzongkhag in the tour circuit. As far as the current attractions and potentials are concerned, the Dzongkhag has a lot to offer. There are many significant historical sites that host unique traditional and cultural events. Trashigang Dzong & its annual Tshechu itself serve as a good tourist attraction. A nunnery institute at Phongmey; meditating & Buddhist schools of Gewogs; bura (raw Silk) weaving culture of Pakaling, Tshangkhar & Dekiling; and lakes of Khaling, Kangpara, Nanaong, Radi, Sakteng and Uzorong could bring into mainstream tourism. Presence of Sakteng Wildlife Sanctuary, varied Flora & Fauna, trekking routes, presence of old trade routes to North East India and other part of India, day hike trails, picnic spots, camping sites are the major other attractions in the Dzongkhag. The Dzongkhag has potential for adventure sports such as kayaking down the Drangmechu, paragliding, rock climbing, bird watching etc. In order to generate larger benefits from tourism, these attractions could be bundled properly and market Trashigang Dzongkhag as exclusive destination by itself. Research & Policy Department, BCCI Page 62

64 TRASHIYANGTSE DZONGKHAG Economic Resource Mapping 2013 Brief profile Trashiyangtse Dzongkhag shares borders with Trashigang and Mongar Dzongkhag in the south, Lhuntse Dzongkhag in the west, the Indian state of Arunachal Pradesh in the east, and Tibetan Autonomous Region of China in North. Trashiyangtse Dzongkhag has eight Gewogs. It has a total area of 1,437.8 Sq. Km with an altitude ranging from meters above the sea level. It experiences an average annual temperature of 15.5 degree Celsius and receives an average annual rainfall of 903 mm. It is known for producing early chili. Of late dairy cooperatives, backyard poultry farms and piggery farms, and vegetable growers groups are established to supply these products to Schools and public market. Trashiyangtse is also known for traditional handicraft like wooden bowl ( Dapa ) and Daphne ( Desho ) production, which is the main source of income for quite a large number of people in Yangtse and Bumdeling Gewog (NSB, 2012a). Agriculture farming integrated with livestock production is the main source of livelihood for majority of population. Rice, Maize, Millet, Buckwheat and Wheat are the major cereal crops grown in the Dzongkhag. As of 2010, Trashiyangtse Dzongkhag had 7,561.8 acres of cultivated agricultural land (NSB, 2012b). Trashiyangtse Dzongkhag s current population stands at 20,236 (NSB, 2013). Research & Policy Department, BCCI Page 63

65 Potential products Wood Turning Shag Zo Tashi Yangtse Dzongkhag is known for wood turning (Shag Zo). Shag Zo or woodturning is an ancient tradition, that is found in Bhutan and the people of Tashi Yangtse in eastern Bhutan practice this art. This unique living art is limited to the people of Tashi Yangtse and Kengkhar in Mongar. Today, Tashi Yangtse has over 30 Sha Zops. The people of Tashi Yangtse involved in wood turning works are know for making a variety of high quality hand-crafted wood products such as daapa, gophu (small multi purpose bowl), lhapu (bowls used by monks), ema tshiku (pickle bowl), japhop (bowl for tea or curry) bowls, plates, cups and containers from a wide range of wood. Wood turning works has become the source of livelihood for many of them. Apart from popularity amongst the Bhutanese populace, the unique wood crafted products are gaining popularity amongst the tourist community. Almost all the handicraft shops across the country buy and sell these crafts. Promotion of these crafts could be integrated with the growth of tourism. The woodenwares coming from Tashi Yangtse offer an exotic choice to the tourist catering hotels. Variety wise, there is enough to replace modern imported crockery. An intensive advocacy amongst the tourist hotels to show case domestically made crockery could be carried out. Positive receptivity by the hoteliers will provide additional market for the rural Shag Zops and help promoting living tradition that is limited to a few places in the country. Trashiyangtse Dzongkhag, therefore, could consider woodturning works as one of the activities for income generation and livelihood enhancement. Research & Policy Department, BCCI Page 64

66 Papermaking De Zo The art of papermaking has a long history and has been in Bhutan for several centuries. It is believed that the lay people took up art of papermaking for monastic use. Tashi Yangtse Dzongkhag is centre of papermaking De Zo. De Zo tradition is not widespread and is confined only to certain areas in the country. The art of papermaking is popular in Bomdeling and Rigsum Gonpa in Tashiyangtse. It is simple art, which is taken up by both men and women. They use the tsasho technique with a bamboo frame, which produces a unique pattern on the paper. Tashi Yangtse Dzongkhag makes Desho, which is quite distinctive from the papers produced in huge quantities by the industries. Desho is made from the bark of a plant known as Daphne (Deshing). Today, the paper is used for a wide range of purposes including writing scripture, envelopes, and wrapping presents and gifts. Desho making technique is traditional which has certain drawbacks for large-scale production. There is a need to explore and see if any modern technology could be integrated in this paper making process for enhancing the scale of production. Unless there are economies of scale, efforts to penetration into the international markets may prove futile. Given its potency and durability, this unique paper could have good market for creative paper products and souvenirs. Research & Policy Department, BCCI Page 65

67 Tourism With the commencing of domestic air services in the country, air connectivity to eastern districts has become easier. Eastern districts, otherwise, which has not drawn much of interest to the tour operators to include it in the tourism circuit has lot of potential. Improvement of connectivity since past few years has given extra impetus for the people of eastern Bhutan integrate themselves into the tourism activities and generate benefits thereof. Districts of eastern Bhutan have received less attention in terms of creating tourism attraction and the interventions from government s end have concentrated heavily in western and central regions. Thus tourism infrastructures in the region have also remained largely under developed. Now that the connectivity has improved and access has become easier, the stakeholders could shift their attention and interventions to develop tourism activities in the tourism deficient eastern region. Ways and means could be explored to expand the tourism circuit that would accommodate eastern districts in the endeavor of the government to brand Bhutan as an exotic destination for high-end tourists. Tashi Yangtse Dzongkhag has potential to develop itself into a fully qualified tourists destination by integrating the ethnic culture and traditions. The living traditions like Shag Zo and De Zo, which are limited to Tashi Yangtse can be promoted as one of the attractions for tourists. Today, the main attractions include Bomdeling Wild life Sanctuary with natural resources and bio diversity; bird watching (Black necked cranes); historical sites; festivals like Gom Kora Tshechu & Chorten Kora Tshechu etc. Research & Policy Department, BCCI Page 66

68 TRONGSA DZONGKHAG Economic Resource Mapping 2013 Brief profile Trongsa Dzongkhag is located in the heart of the country. It covers an area of about 1807 square km, with elevation ranging from 800m to 4,800m above the sea level. It shares boundaries with Bumthang Dzongkhag to the northeast, Wangdiphodrang dzongkhag to the west and Zhemgang Dzongkhag to the south. Trongsa Dzongkhag has five Gewogs. The Dzongkhag experiences an average temperature of 14.1 degree Celsius and receives an average annual rainfall of 5,385 mm. The blacked topped East-West highway and the Trongsa-Gelephu highway passes through the Dzongkhag connecting almost all the Gewogs, which serve as the main economic artery (NSB, 2012a). Agriculture farming is the main source of income for majority of the population living there. Farmers grow almost all kinds of crops. As of 2010, Trongsa Dzongkhag had 5,651.8 acres of cultivated agricultural land. Majority of this land is under cereals cultivation (NSB, 2012b). Trongsa Dzonggkhag s current population stands at 15,433 (NSB, 2013). Research & Policy Department, BCCI Page 67

69 Potential products Oilseeds One of the interventions to enhance the livelihood of Trongsa Dzongkhag s people could be achieved by concentrating on oilseeds production. Available statistics on production data show that some of the major oilseeds are grown in Trongsa. In 2011, Trongsa Dzongkhag produced 119 MT of mustard, 11 MT of perilla and 6 MT of soya beans (MoAF, 2011a). However, there is no production data on sunflower seeds production recorded in the available statistics. When weighed against the imported quantity of edible oils from outside, there is a need for starting local production of cooking oils as supported by favorable conditions to produce the required oilseeds domestically. This is an open economic opportunity for the Dzongkhag. Even if Trongsa alone cannot begin its own oil refinery unit, it could at least be the raw material supplier to refinery units that might come up in viable districts. Most of the Dzongkhags in the country have potential to grow oilseeds but have been growing only in smaller quantities. It could be due to lack of proper guidance and motivation on how end products are used. Lack of coordination could also be the factor for not being able to produce in huge quantities and start value addition on their own. Capitalizing on its potential, Trongsa Dzongkhag could start large-scale plantation of oilseeds, particularly mustard and sunflower. Since Trongsa Dzongkhag falls under similar agro-ecological zone to Bumthang, growing of sunflower on commercial scale could also be viable. Oilseeds are non-perishable products and have relatively bigger potential for value addition. Research & Policy Department, BCCI Page 68

70 Tourism Trongsa Dzongkhag is one of the tourism-developed districts in the country. By virtue of its ideal location in the West-East tourism circuit and the Dzongkhag endowed with abundant attractions, it has been enjoying the benefits of tourism development in the country. In 2011, Trongsa Dzongkhag received 6,454 tourist and that spent significant number of bed nights (NSB, 2012b). Trongsa Dzongkhag has a lot of historically important sites that attract tourists. Some of these sites include Samcholing Palace, Kuenga Rabten Palace, Trongsa Dzong, and the Watch Tower, etc. The other attractions located there are Nabji Korphu trail and white water canoeing in Mangde Chhu. On top these attractions there are more areas to be explored and develop optimally for tourism. Trongsa Dzong day hiking could be introduced by constructing bridge across Mangde Chhu. There is scope for developing camping sites between Langthel, Jangbi & Nabji Korphu; snowman trek route from Lunana to Trongsa along the Mangde Chhu; route between the north of Trongsa and Chhokor in Bumthang; and orchid sanctuary between Langthel, Jangbu & Nabji Korphu. These are all potential segments for adventure tourism. To further develop tourism activities in the Dzongkhag, the stakeholders could work towards appropriately packaging these attractions and carry out extensive destination marketing. The unique selling points for the Dzongkhag could be used to brand destination and market to outside world. Trongsa Dzongkhag could be marketed to outside world as the center for eco-tourism and historical tourism. Research & Policy Department, BCCI Page 69

71 Dairy farming In terms of livestock population, Trongsa Dzongkhag has one of the least. As of 2011, Trongsa Dzongkhag had livestock population of 13,774. But when it comes to production front, the Dzongkhag produces significant amount of livestock products. In 2011, Trongsa dzongkhag produced 1,142 MT of milk, 324 MT of butter and 156 MT of cheese (MoAF, 2011c). As compared to districts with higher livestock population, Trongsa Dzongkhag s quantum of livestock products is much higher, though it has lesser livestock population. This shows that it has high productivity level, which also indicates its level of development in dairy sub-subsector. As such, the Dzongkhag has scope for specializing on dairy farming. Currently, majority of the livestock products are consumed locally. From the total milk production of 1,142 MT, 931 MT was used for processing, 105 MT was consumed and 106 MT was sold in fresh form in For the same period, 302 MT of 324 MT of butter was consumed making only 22 MT available for sale in the market. However, significant amount of cheese was sold in the local market (MoAF, 2013). In order to formalize the dairy sector, the Dzongkhag could put additional inputs for improving the dairy value chain process. Introduction of new technology for improving the efficiency, improvement in packaging, storage, branding, marketing, etc could be some of the initiatives that will take dairy business in the Dzongkhag to a higher level. Trongsa Dzongkhag could also make necessary supply arrangement with cheese processing and packaging units of Bumthang. Research & Policy Department, BCCI Page 70

72 TSIRANG DZONGKHAG Economic Resource Mapping 2013 Brief profile Tsirang Dzongkhag encompasses a total area of Sq. Km with an altitude ranging from m above the sea level. It has twelve Gewogs. It is located along the Wangdue Phodrang Sarpang National High way, making it easy access to business opportunities. All twelve Gewogs are connected with road network. A favorable terrain condition coupled with easy road accessibility has brought manifold changes in the socio-economic development of Tsirang. It is also considered as one of the prosperous Dzongkhags in the country (NSB, 2012a). The main source of income for the people of Tsirang are from citrus, poultry products, livestock farms, and more recently the naturalfarming has become very popular with suitable climate and through the initiatives of RNR sectors. Vegetables are being sold to nearby districts, such as Sarpang, Wangdue and Thimphu. As of 2010, Tsirang Dzongkhag had 11,635.9 acres of cultivated agricultural land holdings (NSB, 2012). The current population of Tsirang Dzongkhag stands at 21,119 (NSB, 2013). Research & Policy Department, BCCI Page 71

73 Potential products Avocado Avocado is a tree native to Central Mexico (Chen, Morrell, Ashworth, De La Cruz & Clegg, 2008). Avocado or alligator pear also refers to the fruit, botanically a large berry that contains a single seed (Storey, n.d). Avocado is a climacteric fruit, which matures on the tree but ripens off the tree. There are three main ecological races of avocado, which are classified according to their origin, namely, Guatemalan, the Mexican and the West Indian. The Guatemalan is adaptable to a cool tropical climate ( meter above sea level) but is less tolerant of low temperatures. The Mexican races are adaptable in 2400 to 2800 masl and possess greater winter cooling tolerance and are able to be grown at a minimum of minus 4 o C to - 5 o C without suffering any damage to the plants wood and leaves, although flowers are damaged. West Indian varieties grow well in warm humid climates with monsoon rains and optimum temperature of o C. Generally a moderate rainfall range between 1250mm to 1750mm per annum with good distribution is desirable (College of Natural Resources [CNR], n.d). There are two types of cultivars. "A" cultivars include Hass, Gwen, Lamb Hass, Pinkerton, and Reed. "B" cultivars include Fuerte, Sharwil, Zutano, Bacon, Ettinger, Sir Prize, and Walter Hole (Crane, Balerdi & Maguire, 2007). In Bhutan commercial production of avocado are still very new, and introduced commercial varieties have not long been in the country. All avocados in Bhutan are found in the country s subtropical and tropical belts. Avocados can be grown in Bhutan at altitude of 300masl to 1300masl (CNR). Avocado is one of the fruits that can be grown on commercial market. Commercial orchards yield an average production ranging from 7 20 tones per hectares (Whiley, 2007). Considering the favorable agro-ecological zone of the Dzongkhag, Tsirang could grow avocados and produce on commercial scale. As against the agro-ecological altitude it transpires that all three varieties can be tried and promoted in Tsiring. However, a detailed research to identify the best variety suitable for Tsirang may be essential. Research & Policy Department, BCCI Page 72

74 Vegetables Tsirang Dzongkhag s vegetables are well known among the Bhutanese consumers, especially in the western and central region. Its vegetable trading practice is considered to be fairly developed and organized compared to other Dzongkhags. Tsirang s vegetables that are sold at the local vegetable section of Centenary Farmers Market (CFM) in the capital fetch a premium prices for its taste and freshness. Besides selling at the CFM, the vendors also supply vegetables to its neighboring district, Sarpang. Growing popularity could be due to its ability to offer variety. In terms of vegetables production, it is much smaller than other districts, which are not involved in vegetable trading. In 2011, Tsirang Dzongkhag produced 2,754 MT of vegetables from its 3,646 acres of land under vegetable cultivation (MoAF, 2011). Tsirang Dzongkhag has potential for large-scale vegetable production as it falls under agro-ecological zone suitable for vegetable production. Prioritization of vegetable varieties could be considered to specialize on select vegetables cultivation, which will further enhance its unique selling proposition. The scale of production could also be increased and volume expanded for inter-dzongkhag trade. Through collaborated interventions of the stakeholders the vegetable value chain of Tsirang could be further improved. Research & Policy Department, BCCI Page 73

75 Poultry & poultry products Tsirang Dzongkhag produces significant amount of poultry products (eggs), and over the years it has emerged as one of the main suppliers of fresh eggs. It is the highest eggs producing district in the country. In 2011, Tsirang produced 947,359 dozens of eggs, of which 909,920 dozens were sold. More than 90% of the eggs were sold in the market. As of 2011, Tsirang Dzongkhag had poultry population of 69,378 (MoAF, 2011c). Tsirang s poultry sector has scope to grow further as most of the operations presently operated are backyard farms. Available statistics show that there is scope for expanding its market by supplying the surplus eggs to deficient districts. Such expansion effort would require a coordinated support from all the stakeholders, especially in the market coordination front. Most important of all, ensuring timely availability of inputs (vaccines, feed and day old chicks) needs priority action. Feed, on the other hand, is the most essential input in poultry production and without affordable and timely supply of feed it would not take long time to wipe out entire backyard farms. It also goes more so with the packaging materials. Support through development of hatchery to supply day old chicks is also necessary for the small and medium scale poultry farms. Furthermore, availability of infrastructures will determine the success of inter-dzongkhag trade on poultry products. Infrastructures for preservation and augmentation of the shelf-live of eggs are essential to enable producers or vendors to supply to the distant markets. Research & Policy Department, BCCI Page 74

76 WANGDUEPHODRANG DZONGKHAG Economic Resource Mapping 2013 Brief profile Wangdue Phodrang Dzongkhag, encompassing a total area of 4308 Sq. Km with an altitude ranging from meters above the sea level, has Fifteen Gewogs. It shares borders with Punakha in the north, Thimphu in the west, Trongsa in the east and Tsirang in the South. Paddy fields are mostly along the Dangchu and Puna Tsang Chu basin, with double cropping of rice as an important agricultural feature. Potato is an important cash crop for the Gewogs of Phobji, Gangtey and Sephu. There is an increasing citrus production in the Gewogs of Daga, Bjena, Phangyul and Rubesa and ginger production in Daga and Athang Gewogs. The lower valley towards the southern belt is best suited for sub-tropical horticulture crops such as oranges, mangoes, pineapples, guavas, etc (NSB, 2012a). As of 2010, Wangdue Dzongkhag had 14,688.9 acres of cultivated agricultural land with small area under cash crop cultivation (NSB, 2012). Wangdiphodrang Dzongkhag s current population stands at 36,104 (NSB, 2013) Research & Policy Department, BCCI Page 75

77 Potential products Seeds & Seedlings nursery The Ministry of Agriculture & Forest (MoAF) s plan for accelerating vegetable production and marketing requires combination of various intervening activities. Among others, one of the essential components that deserve priority is the seeds and seedlings production facility to support larger plans. There is already a surge in demand of seeds and seedlings. Over the next few years, Bhutan will witness huge demand for seeds and seedlings across the country. Today, besides few private nurseries, National Seed Center is the only agency that produces seeds and seedlings for supply across the country. Fruits and vegetable production in Bhutan suffers from many hurdles. The shortage of quality seeds and seedlings has greatly impacted the level of agricultural production. Consequently, horticulture sector of RNRRDC Bajo started promotion of private nurseries within the west central region of Bhutan. The promotion of private nurseries began in 2009, as necessitated by a tangible shortage of seedlings in the country (Dorji, Chophel, et al, 2012). Wangdue Dzongkhag has already tested private nursery for walnut seedling propagation, which has proven successful. A large-scale private nursery for fruits and vegetables is viable in Wangdue, given its favorable agro-ecological conditions coupled with established research center, RNRRDC, based within the Dzongkhag. With technical backstopping from the research center, a large-scale seeds and seedlings production could be proven a successful business venture in the Dzongkhag and essential input provider for the country. Research & Policy Department, BCCI Page 76

78 Cold water fishery The communities of Wangduephodrang Dzongkhag living upstream along the riverbanks have the scope for cold-water fishery. For the communities of Lawa Lamgong, Rukha and Samthang villages situated along the banks of Harachu River well known for production of Nya Doesem using snow trout was once the main source of income and livelihood. These communities were granted community rights for fishing in Harachu through a Kasho from The Fourth Druk Gyalpo, that superseded Department of Forest Regulation imposed on the harvest size and technique used. Unfortunately the Kasho has been misplaced and the community is faced with difficulty in obtaining permits for fishing with use of traditional traps. This is due to the perception that the sustainability of fish stocks would be endangered if the traditional methods were used for the fishing. While community fisheries management along the running riverbanks could be thought of as means for augmenting income and livelihood, cold-water fish farming could be other option the settlements in the upstream could take up. With the support from research center in Bajo, community could start farming of trouts, which has high monetary value. Trouts from the Dzongkhag will find good domestic market. The high-end hotels in and around Wangdue and Punakha and could be the initial target market for trouts. Provided there is enough supply to support the demand, the local trout farms can also find good market among the general consumers as for various reasons, there has been a visible shift in terms of preference for local fish over imported fish. Taking-off such activity, in the initial phase, may require a mass awareness programs and technical backstopping from the MoAF. Distributions of fingerling, building infrastructures, creating market channels, etc. are some of the essential support the MoAF might have to deliver on priority basis. Research & Policy Department, BCCI Page 77

79 Vegetables Wangdue Phodrang Dzongkhag is one of the potential districts for large-scale vegetable production. It is the third largest vegetable-producing district in the country. The Dzongkhag produced 7,337 MT of vegetables in 2011 from its 3,679 acres of agricultural land under vegetable cultivation (MoAF, 2011a). Wangdue Dzongkhag, which has relatively a higher vegetable productivity, could embark on commercial production. This may require prioritization of varieties and introduction of high yielding varieties based on productivity and the market demand. It could emphasize on expanding the area under cultivation by doing away the unproductive crops. Government land could be taken on lease to increase the cultivated area and the overall production capacity. As there is a huge shortage in vegetable supply in the country, market is not really a matter of concern for the producers. Wangdue Dzongkhag, as a large vegetable producer could expand its volume of inter-dzongkhag trade on vegetables. Added to this, enhanced of selective varieties that are in demand can be directed towards regional markets for higher return. Research & Policy Department, BCCI Page 78

80 ZHEMGANG DZONGKHAG Economic Resource Mapping 2013 Brief profile Zhemgang Dzongkhag has a total land area of 2, square km with one Drungkhag and eight Gewogs. Zhemgang is considered as one of the least developed Dzongkhags in the country with poverty rate of 56%. Most of its Gewogs are still not connected with the road network. Dzongkhag is divided into three ecological zones namely Upper Kheng, Middle Kheng and Lower Kheng. The livelihood of the people of Kheng depends on agriculture and livestock farming as their primary occupation. In recent years, mandarin cultivation in Lower Kheng as a source of cash income has been quite encouraging. However, the transportation has been the biggest hurdle for any business or developmental activities to be undertaken (NSB, 2012a). As of 2010, Zhemgang Dzongkhag had 10,135 acres of cultivated agricultural land (NSB, 2012b). The forest covers 86 percent of the total area of the Dzongkhag. Zhemgang is also known for Royal Manas Park, which has been declared as one the ten internationally recognized Hot Spot areas. The Dzongkhag shares the boundaries with Royal Manas National Park and other protected areas under Jigme Singye Wangchuck Park and Thrimshingla National Park (NSB). Zhemgang Dzongkhag s current population stands at 20,911(NSB, 2013). Research & Policy Department, BCCI Page 79

81 Potential products Fruits In terms of production, Zhemgang Dzongkhag occupies a significant position in the overall horticulture production ranking. In 2011, total fruits production was 3952 MT (MoAF, 2011a). Mandarin is the main fruit grown within the Dzongkhag. However, Zhemgang also grows wide variety of other fruits. Zhemgang Dzongkhag falls within the humid sub-tropical agro-ecological zone, which has altitude range of meters above the sea level and receives an average annual rainfall of 1,200 2,500 mm. This agro-ecological zone is suitable for irrigated rice rotated with mustard, wheat, pulses, vegetables and tropical fruit trees (Tobgay, 2005). Hence, Zhemgang could emphasize on large-scale fruits production as one of its priority farming activities among others. There is a wide range of tropical fruits that could be grown well in Zhemgang s agro-ecological condition. Embarking on large-scale fruits production in Zhemgang may require prioritization of varieties that will have good market acceptance. For the initial phase, Zhemgang Dzongkhag, could focus on select tropical fruits, such as, kiwi, passion fruit and litchi, which have better market and commercial value. Research & Policy Department, BCCI Page 80

82 Vegetables In terms of production, Zhemgang Dzongkhag does not produce significant quantity of vegetables. In 2011, Zhemgang Dzongkhag produced only 2,037 MT of vegetables from its 3,914.6 acres of agricultural land under vegetable cultivation (MoAF, 2011a). However, production data cannot be the sole basis for drawing conclusion for non-viability of vegetable production in the Dzongkhag. Number of factors, which essentially determine the feasibility, may have to be considered. Lower production could be due to lack of proper knowledge on market access, essential inputs and poor communication links. The remote Gewogs concentrating just for self-consumption could have brought down the overall production ranking. However, today, with most of the remote Gewog centers connected with the motor road, the situation will be totally different. Vegetable production proves successful in the humid sub-tropical belt. Therefore, Zhemgang Dzongkhag could consider large-scale vegetable production as one of its intervention for enhancing the livelihood of rural populace. Zhemgang Dzongkhag could also consider its neighboring markets while selecting the varieties for large-scale production. The Dzongkhag s immediate market could be Gelephu which is only 133 Km from the district center. Zhemgang could also take advantage of neighboring markets of Assam, India, capitalizing on the summer off-seasons shortages across the borders. In terms of distance to possible markets of Assam, Zhemgang Dzongkhag is in better position than some of the eastern districts that are already supplying vegetables to these markets. Owing to these favorable factors, Zhemgang Dzongkhag could start large-scale vegetable production. Research & Policy Department, BCCI Page 81

83 Tourism Zhemgang Dzongkhag is divided into three parts the upper, middle & lower Zhemgang. Currently, the Dzongkhag has too little or no attraction sites for sustainable tourism. The middle Zhemgang is considered most potential for tourism promotion, as it has varied flora and fauna. Although the upper part is considered to be too remote, its remoteness has own characteristics for transforming into tourists attractions. Today, some of the main attractions are Zhemgang Dzong, Duenmang Tshachu, and the natural lake at Buli, the smith house of Pema Lingpa, and golden langur sightings and birding. Zhemgang has tremendous scope to become Bhutan s bird watching haven for naturalists. Plenty of different birds such as Blythe Kingfisher, green cochoa, purple cochoa, etc, can be sighted along the road. The Tourism Resource Inventory (TRI), it identifies ideal sites for bird watching in the Dzongkhag, segments such as Zhemgang Tingtibi, Tingtibi Gomphu, Tingtibi Tamala and Yebilapcha Goshing Road. The TRI has also identified Zhemgang trekking route such as Zhemgang West Zhemgnag East, Dakpa Tali Buli, Ura Shingkhar, Bjoka Trek, Zhemngang Manas Trek, and Dakpai Kikhar trek. Zhemgang can also be promoted for cultural and heritage tourism as it has a fascinating history, numerous heritage sites, hot springs and an amazingly rich and vibrant local culture. Another attraction could be Handicraft tourism as Zhemgang has highly skilled artisans in earthen pottery besides producing a variety of bamboo products. There is a possibility of introducing niche areas such as orchid tours, night safaris and adventure tours, which could include mountain biking and water sports like rafting and kayaking from Mangde Chhu right through Panbang down to Manas. Manas National Park has extremely high potential for winter tourism: lots of endangered animals (tiger, elephant, rhinoceros etc.), bird watching and fascinating subtropical forests. Research & Policy Department, BCCI Page 82