Strategies for horticulture development for the Indian market

The major focus for this segment of the market will be Potatoes (Table, Seed and Processing), off season vegetables (summer), Cardamom and Ginger.

Potato is the most important cash crop for mid to high altitude Bhutanese farmers covering about 22% of the population. Because of the high yield potential, its affordability, high nutritional qualities and high consumer preferences, potato is expected to have far higher growth rates than cereals.

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  Expansion of potato production area and yield: High altitude with temperate climatic condition offers favourable environment to produce potato. There is substantial scope for increasing the potato area in Bumthang (all geogs), Wangdue (Sephu), Mongar, Chhukha and Dagana. As such, there is high potential to increase the quantity of production through expansion of production area and increase yield through effective professional interventions.
  
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  Production of quality seed potato for domestic and export market: There is a big opportunity for the production of high quality seeds. The higher elevations of Bhutan provide excellent environment for potato seed production with almost complete absence of virus problems. Replicated studies evaluating seed maintained by farmers over periods of up to 20 years showed no sign of degeneration.
  
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  Seed demand projected for West Bengal & Assam is 700,000 MT (just meeting 1% of this demand 7,000 MT per year would entail a lot of effort for Bhutan. 1,200 acres of land are required to produce 7,000 MT). The domestic seed requirement projection is about 4,000 MT if farmers follow the seed replacement recommendation (about 700 acres are required to produce this amount).
  
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  Introduction of contract farming: There is great opportunity to build farmers and private sector partnership through contract farming, which will also assist in effective technology transfer.
  
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  Formation of Potato Producers Groups and Associations: Farmers’ bargaining power in the procurement of inputs and marketing their produce could be enhanced through collective action. In so doing, the unit cost of production could be reduced through procurement of inputs on time and at a cheaper price. The Nu. share of the farmers could be increased through group marketing.
  
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  Market Diversification: Develop niche markets in the larger Indian cities like Kolkata and Gauhati for fresh potato. Potatoes sold in these markets during the months of August – September are mostly cold stored potatoes, thus we have an advantage of freshness.
  
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  Promote household level potato processing units: There is a good opportunity for setting up household level potato processing units that will produce potato chips, potato strips, potato flakes and other potato snacks.
  
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  Improved Infrastructure: Possibility of increasing product recovery or minimizing losses through better or more investment in market infrastructure (transportation, storage, communication) and organization of training for farmers in product handling. Further, post harvest losses could be reduced through cleaning and curing before storage.
  
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  Possibility of introducing potato varieties for processing is currently being studied and by five years time varieties could be released in Bhutan for commercial production to supply the demand for processing potatoes in the Indian market.
  

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  Emphasis on production of off-season vegetables both by utilization of regional variability & use of greenhouse techniques.
  
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  Summer vegetable production for export market
  
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  Production of summer vegetables in Paro, Haa, Thimphu, Chhukha, Punakha, and Wangdue for supply/export to India (mainly Kolkata) and Bangladesh (supply to begin from May till August).
  
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  Main summer vegetables to be produced need to be assessed after working out requirements in these markets, with complete details of type, size, quality, etc. of the requirements from the markets. (French beans, carrots, chili, tomatoes, radish, brinjal, etc. can be produced)
  
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  The AMS needs to play a proactive role in making contacts with the importers, negotiating prices, getting the right quality standards and quantity requirements. These can then determine the area required for production, crops to be produced and the interested growers can be contracted for production for the specific market. Bhutanese fresh produce exporters need to be involved and take a lead in preparing the exporting logistics and procedures.
  
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  All the post harvest requirements and handling techniques for each crop from the time the vegetables are ready for harvesting till they reach the market need to be determined by the National Post Harvest Centre and proper training to the growers should be provided during the growing season.
  

Samtse, Chhukha, Dagana and lower Haa are the potential areas for cardamom which is the 3^rd most valuable agricultural export commodity. It is currently being grown in about 4,000 acres in the humid sub-tropical areas of the country, with 68% of the area being in Samtse Dzongkhag alone.

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  The identified areas suitable for cardamom production need to be physically verified and if in forest land, long term leasing mechanisms needs to be worked out for immediate plantations.
  
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  Assessment of number of seedling required for re-planting of the diseased plantations in the current area of 4,000 acres.
  
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  Source improved seedlings from neighbouring areas of Sikkim, W. Bengal and import for re-planting.
  
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  Encourage the establishment of at least 2 large cardamom seedling nurseries in Samtse and Chhukha by interested private operators.
  
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  The National Post Harvest Centre in collaboration with RNR Research centre, work on the improvement of the drying / curing system using the gasifier-based drier to improve the product quality (appearance as well as volatile oil content)and the efficiency of drying.
  
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  Cardamom Marketing groups need to be formed in Samtse and Dagana to organize marketing
  

Ginger is one of the crops gaining substantial export potential. It is currently being grown in Samdrup Jongkhar, Samtse, Sarpang and Tsirang in large quantities (the total production from these Dzongkhags in 2004 was 5,574 MT, out of which 474 MT was exported with a value of US$ 117,000). Ginger production needs to be up scaled in the more suitable areas. The areas needed for focus to develop ginger as a commercial product are:

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  Introduction of improved varieties (fiber less) and multiplication of planting materials (possibly by private nursery operators in S/Jongkhar and Tsirang)
  
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  Research external world markets for processed ginger (organic ginger, sliced and dried, powdered ginger etc) and the quality requirements
  
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  Undertake trials by National Post Harvest Centre on processing the ginger into forms (powdered, sliced and dried) other than fresh to reduce volume and expand market share
  
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  Contact interested buyers and establish production/ processing arrangements and organize growers into groups to produce, process and market the produce