The newly established Potato Trade Facilitation Center at Gaytsa, Chhumig Gewog, Bumthang Dzongkhag was inaugurated by His Excellency Lyonpo Younten Phuntsho, Hon’ble Minister of Agriculture and Livestock on 5 August, 2025.
Equipped with state-of-the-art potato warehouses with grading, washing, drying, sorting, and packaging machines, as well as an online trading (auction) service, the second of its kind to be established in Bhutan, the PTFC not only represents a significant investment, but is aimed at revolutionizing potato farming in the country, marking a significant milestone in local agriculture industry.
This facility was established at the total cost of Nu. 83.59 million, supported through the Royal Government of Bhutan (RGoB, European Union (EU), Hand-In-Hand-Initiatives of Food and Agriculture Organization (FAO) partnership.
Significance of Potato and Emerging Marketing Challenges
Potato is one of Bhutan’s most valuable cash crops, contributing significantly towards achieving national food security, creating farm-based income generating activities and employment opportunities, enhancing the livelihoods of nearly all farming households, curtailing poverty and building the national economy. It is one of the major agricultural export commodities with over 60% of the production, earning over Nu. 500 millions annually. In 2024, over 37,778.00 MT (IALC, 2025) was exported to India, and earned more than Nu. 539.40 million. About 60–65% of rural households in Bumthang were actively engaged in producing over 3,220.00 MT in 2024 (IALC, 2025) of potato as a primary or secondary income source, generating an estimated gross income of Nu. 54.74 million.
However, Bhutan faces increasing marketing challenges due to changing international market conditions, formalization of trade with new related regulations & requirements, increasing standardization, and emerging competitions. Addressing the gathering, Hon’ble Agriculture and Livestock Minister said, “in order to export to India, which is the main market and the major trading partner of our country, Bhutanese potato must now meet a range of stringent standards and specific prerequisites, including the produce has to be soil free, pest free and plant debris free, properly graded and packed in standard weights”, which are also a desired practice commensurate to the international protocols. On the other hand, the domestic market capacity is very limited compared to the volume of production”.
The Hon’ble Lyonpo added, “the Ministry of Agriculture (MoAL), in close collaboration with Food Corporation of Bhutan Limited (FCBL), has embarked on an initiative to improve the value chain of potato and to address the aforesaid marketing issues through establishment of Potato Trade Facilitation Centers in strategic locations (at source) in Bumthang, Chhukha, Trashigang and Wangdue Phodrang Dzongkhags”.
Highlighting the MoAL’s priorities in the 13th Five Year Plan (2024-2029), the Hon’ble Minister also said that the MoAL’s exploring additional new international markets for potato and other major agricultural commodities of Bhutan. Hence, the Hon’ble minister encouraged the farmers to enhance the potato production starting next year, and earn more income, would further contribute towards achieving the Royal Vision of building a high-income economy in the next 10 years.
The successful completion of the project, which would directly benefit the farmers of Bumthang Dzongkhag and nearby potato production areas including Trongsa Dzongkhag, amongst others, is a testament to the concerted effort that the MoAl, FCBL and the Dzongkhag have jointly put into.
Expected Benefits of PTFC
The PTFC will not only enhance value chain, commercial value, marketability, profitability, competitiveness, recognition and visibility of potato, help meet emerging new requirements and specifications (market-driven value addition) in the export markets, and facilitate smooth export of Bhutanese potato to India commencing in the next potato season, but possibly enable the produce to enter other international markets.
This facility and service is a step towards encouraging higher commercial production, and bring substantial benefits to the farmers. It will create farm-based income generating activities and employment opportunities, and contribute greatly towards enhancing the livelihoods of rural communities, alleviating poverty, curtailing rural-urban migration, achieving national food and nutrition security, accelerating national economic development, and building a high-income economy that Bhutan is envisioned to become by 2034.
This initiative will also empower our farmers with the information and resources needed to make informed marketing decisions, maintain product quality, and streamline transactions. Moreover, this center is a game changer for potato growers in Bumthang and nearby areas (including Trongsa), as the farmers now finally no longer need to travel long distances to the Phuentsholing Auction Yard, saving substantial time and costs associated with travel and transport. The farmers can now trade their potato from Gaytsa, at source, leading to increased exports, and better price.
