Strategy for gross national happiness (sgnh) Annexures to the Main Document

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  Cold storage facilities at the airport
  
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  Facilities for custom check, cold storage and phyto-sanitary checks
  
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  Providing access for local growers to outside markets where they can get suitable returns on the flowers/planting materials etc.
  

Co-operatives should be encouraged amongst the small and medium growers to enhance volume and economies of scale. This would also ensure group pressure on the quality and quantity of produce. The Co-operatives Act is already in place and is favourable for the establishment of small co-operatives. Only the rules and regulations of the Act have not been drawn up as yet and should be done immediately.

Delhi is the largest flower market in Asia and the major supply comes from Kolkata. Therefore, prior to the establishment of the floriculture industry, AMS must study the regional market demand for cut flowers, ornamental plants, seeds and bulbs, dry flowers, quality and the standard required. At the same time the Marketing Liaison Officer based in Dhaka should also explore the possibilities of expanding our flower markets in Bangladesh. The information then should be disseminated to the interested growers for proper planning of production.

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   Inventory of potential flower and ornamental tree species
   

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   Zoning of production areas for sustainable economic development
   

Setting up quality standards is very important to position products in the market. The produce should be able to satisfy the conditions of the market for which it is destined. This implies the necessity to establish, as a matter of policy, the grade and quality from the onset. Strict compliance to grading standards is in the mutual interest of the industry and to individual growers. Reliability and consistency in quality standards are essential to a good reputation and ability to secure premium prices. Therefore, right from the outset, growers must be conscious about the quality of the produce so that we can set a good image of our flowers in the market and thus create a demand for our flowers in the international market. Some of the requirements for export of floriculture are:

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  Phyto-sanitary certificate
  
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  CITES convention documents for orchids and wild plants
  

BAFRA should be the lead agency in setting the standards and certification procedures.

The snow capped mountains in the north and sub surface water flow collected from seasonal rainfall are two major sources of water for the river systems in Bhutan. There are four major river basins that drain their water into the Indian plains: the Amo Chhu that drains out as the Toorsa river originates in the southern part of the Tibetan Plateau while the Haa Chhu, the Pa Chhu and the Thim Chhu originate in the high glacial mountains of the western region and drains into the Wang Chhu providing water for the Chhukha and Tala Hydropower plants. The Wang Chhu basin lies between Tego La range in the west and Dochu La range in the east. Between Dochu La and Pele La ranges lies the Punatsangchhu Chhu basin. This river has the highest probability of increasing its volume through the outburst of glacial lakes like the Lugi Tsho, Thorthomi Tsho and Rapten Tsho in the higher reaches of Lunana. The Mangde Chhu, Chamkhar Chhu, Kuri and Drangmeri all drain into the Manas and are separated by Yotong La, Thrumshing La and Kori La respectively. Kuri and Drangmeri have their origins in the Tibetan plateau.

The volume of water in these rivers fluctuates with the peak flow being during the monsoon season from July through September. Most of these rivers flow through deep and narrow valleys making it difficult to tap them for uses other than hydropower. It is only in the Wang Chhu and the Punatsang Chhu basins where a small portion of the water is being tapped for agricultural purposes, before reaching the major knick points. Irrigation for rice is the main need that competes with water requirement of hydropower generation. This is not a big problem in Bhutan since maximum water requirement for paddy coincides with the peak monsoon season. A small fraction of fresh water is bottled by the Bhutan Agro Industries in Thimphu². An initiative has been also taken to bottle the clean spring water at Thinleygang under Thimphu Dzongkhag. Aside from this minor utilization in agriculture and hydropower generation, the value of the fresh water for social recreation, hydrotherapy, and big industrial uses are not tapped as yet for economic gains.

Numerous springs, streams and rivers provide water for irrigation, human consumption, hydropower generation and in some areas, for industrial use before it drains out into the Indian plains. The country is also known for its hot springs (tshachhus), hot stone baths (menchhus) and clean spring water (drupchhus) for consumption. The local residents use these hot springs as part of their traditional treatment for diseases and physical ailments. The well known hot springs in high demand are found in Gasa, Punakha, Lunana, Bumthang, Gelephu, Zhemgang and Trongsa (not functional) Dzongkhags. There are also a number of hot stone baths using spring water in various places that are popularly used by the locals for healing purposes including rest and restoration. This brief information suggests that the utilization of these water sites is only known to local residents and no government initiatives have been taken to maximize its use for commercial purposes thus far.

A number of economic investment areas can be suggested ranging from social recreation (white water rafting/kayaking), hydrotherapy (developing Tshachhus and Menchhus), bottling spring water to exploration of geothermal energy from hot springs and hydrogen fuel from water molecules. The immediate area of investment is focused on bottling of clean spring water that is available in abundance across the country although there is a potential of developing rivers/lakes for social recreation and the local tshachhus and menchhus for hydrotherapy. The local people believe these clean spring waters have medicinal values. The chemical analysis of this water from selected sites indicates that the mineral compositions are comparable to the bottled water sold in developed countries.

Bottled water has been one of the most dynamic beverage categories over the last five to ten years. Global bottled water consumption is estimated to have approached 41.1 billion gallons in 2004³. The global rate of consumption is estimated to have grown by 6.5% in 2004. Per capita consumption was 6.4 gallons, up three-tenths of a gallon from 2003’s 6.1 gallons. Several Western European countries have per capita consumption levels of well over 25 gallons, but much of the developing world, where the bulk of the world’s population lies, finds its per capita consumption figures still in the low single-digit range. The sales for bottled water are estimated to be between US$ 50 and US$ 100 billion and increasing 7 to 10 percent annually. In 2004, total sales were approximately 154 billion liters.

In developed countries, bottled water has become the fastest growing and most dynamic major beverage category due to growing health and well-being consciousness among consumers. This increased health awareness has helped position bottled water as an alternative not only to tap water but as an alternative to carbonated soft drinks and juice drinks, in the multiple beverage marketplace. In developing countries, demand is driven by factors including the lack of potable groundwater in many areas, the lack of reliable or safe municipal water in urban areas, chemical and organic pollution of ground and well water, and convenience relative to boiling or otherwise treating accessible but potentially contaminated water.

India’s consumption figure for 2004 is estimated at 5.1 billion liters (2004). The Indian bottled water market is said to be growing at 55% annually fuelled by factors like growing population, rapid urbanization, income growth, increased health consciousness, deteriorating water quality, pollution, etc. A large number of players including Coke, Pepsi and Evian are already in the market. Recent controversy over pesticide content in some of the beverages has hit Coke and Pepsi hard, in some manner opening up opportunities for water from non-polluted sources.

A wide variety of different bottled water types are developed with different methods and levels of treatment. Bhutan has to choose what type of bottled water to produce, and where to produce it, given its clean environment, difficult terrain and immense opportunity offered by the local and regional markets. The most widely accepted definitions of different bottled water types and the standards of bottled quality are provided by the US Food and Drug Administration (FDA) in the Final Rule on a standard of identity for bottled water.

Bhutan Water Policy adopted in 2006 lays out a favorable environment for the development of water industries in Bhutan. The best available water sources for clean and safe drinking water, like mountain spring water, would be allocated for the production of environmentally clean products for human consumption. The hot springs that have medicinal, cultural as well as recreational values are identified as an area for private investments such as by tourism industries. The requirements such as adoption of the principles of payment for environmental services (to encourage plough back mechanism) and integrated watershed conservation and management approach are also clearly defined. What is missing at this stage is a Water Act that makes these policy provisions legally binding. Another missing element in this policy document is an institution that would be the custodian of water resources in the country.

Bhutan has a number of clean spring and groundwater sources for bottling. What is required is to create an enabling environment to produce bottled water and compete in this fast growing industry. A local firm may not be adequate to set a landmark in this industry, particularly when there is no proper legal protection against cheap backyard manufacturers and counterfeits in the regional markets. A possible solution is to tie up with well-known international and regional investors like TATA, Nestle, etc. to tap these clean water sources for regional and global bottled water market. This would necessitate a shift in the current FDI policy (reduce minimum investment limits, allow investment in Indian rupees, etc.).

Unlike other industries, this plant would generate limited waste products that would have a negative impact on the local environment. PET will be used as a material for bottling water. This material is reusable, and recyclable. A strategy will be developed to collect these used bottles either for reuse or for recycling. An attempt will be made to establish the processing plant where minimum disturbance is caused to the local community and the environment. A concern may rise when it comes to the transportation of bottled water, carbon emission in particular.

Around the globe, Non Timber Forest Products (NTFPs) play a significant role in the economy by sustaining livelihoods and contributing significantly to income generation. Current estimates put the value of total global trade in NTFPs at US$ 10 – 12 billion per year. Despite the significance of this trade, NTFPs as a driver of major economic development have been impeded for various reasons ranging from lack of proper institutions to deficiencies in technology and knowledge at both producer and user ends. However, there is still continued interest in NTFPs. It is argued and supported by many case studies that NTFPs have the potential to improve subsistence for rural farmers and also contribute significantly to the economy by promoting commercialization, tapping niche markets and ensuring quality.

NTFPs are considered as those products derived from the forests other than timber and firewood. Within this purview, products range from herbs to exudates from trees. Classification of NTFPs and provision of adequate legislation have been confounded by the diverse range of products. Phylogenetic groupings and classification based on functional groupings have helped organize ecological understanding, but these are not adequate enough for understanding development implications.

While significantly contributing to rural dietary requirements, cash incomes from sale of NTFPs have been viewed as crucial in supporting better livelihoods. As of today, the most high profile NTFPs to have been commercialized in Bhutan are the matsutake mushroom and cordyceps. Matsutakes have been traded for the last 10 years while cordyceps have only been allowed for commercial harvesting 2 years ago. Commercialization of these two NTFPs has significantly contributed to raising income levels of NTFP collectors. What has become evident during the experience of commercialization is the weakness of existing institutions to regulate marketing and development of these products. Most NTFPs in Bhutan have not been explored in terms of their potential for commercialization.