Revitalization of horticultural enterprises

Revitalization of horticultural enterprises

Among various horticultural crops grown in the country, some like apple, mandarin, cardamom and potato have gained considerable commercial importance. There is a growing trend to cultivate more vegetables adopting systematic crop rotations and as inter-crops in the orchards. However, production is seasonal thus domestic demand is met by imports particularly in the winter. Among temperate fruit crops, apple is an important cash crop in Thimphu, Paro, Haa, Bumthang and Chhukha Dzongkhags that have assured climatic and commercial viability. The production area plateau in the case of apple production is likely to have been reached as per the current land use status. The productivity per unit area will need to be the focus of attention as far as apple is concerned.

The choice to grow a particular cash crop is dependent on many factors. Topping the list is the market and the market price for the produce. So long as there is market, production to suit the market will be possible by the farmers now that they have been exposed to market oriented growing of produce. The comparative advantages have to be exploited if the horticulture industry is to pick up. As far as apple production is concerned, special focus will be given to rectifying the orchard management practices in the existing orchards. The market requirements on the type of varieties, shape, size, colour, taste, etc. need to be assessed to plan top working and plant replacement in the existing orchards. The production of quality apples will need to be given top priority in the apple growing areas, while screening of new, better varieties will have to be continued at the research stations to catch up with trends in the markets. The environment is congenial for other temperate fruits and nuts as well.

Small volumes of produce, seasonality and inconsistent supply are the characteristics of the horticulture industry of Bhutan. Large-scale mechanization is not possible to relieve the labour constraints faced in the production of horticulture commodities. Further, the relatively poor road network and the difficulties posed by the mountainous terrain presents communication constraints. In addition Bhutan lacks market infrastructure and market information system. Labour costs are higher than those of the neighbouring countries, technologies like protected and controlled environment cultivation, storage concepts and techniques, and preservation process for prolonged utility is not easily adopted by the farmers in most cases.

The domestic market can be divided into 2 categories such as rural markets, offering few opportunities and urban markets which are small, fast growing and open to cheaper food imports. The internal market is mainly urban and likely to see continuous growth over the next decades. The major domestic markets for fruits and vegetables include weekend markets in the urban centres, wholesale auctions, direct sales especially to institutions, e.g. schools, hospitals, hydro-schemes, hotels, shops, etc.

The main export markets for Bhutanese agricultural products are India and Bangladesh, apart from specialized markets in third countries like USA, Europe and Japan. Exports, in terms of volume, have grown slowly (1.5% p.a.), with potatoes fastest at 4.5% p.a.

Indian market: mainly for potatoes, cardamom & small volumes of vegetables such as ginger and beans, mainly supplied through FCB auctions; BAFRA inspection is not required. The Indian market is worth about US$ 4.2 million.

Bangladesh market: mainly mandarin oranges & apples, sold C&F at Bangladesh border through Bhutanese exporters; BAFRA inspection is required. The Bangladeshi market is worth about US$ 7.3 million.

Extra regional markets: tiny volumes of extremely high value products e.g. Cordyceps, Matsutake & red rice – these markets are small total impact, small volumes, highly demanding. Auction sales of Cordyceps is a significant issue. The extra regional markets comprising of third countries like Singapore, Japan, USA, etc. are worth approximately US$ 0.5 million.

In order for the Bhutanese horticulture industry to function as a commercial enterprise, aim must be to work with the market to develop profitable opportunities for our farmers to increase their cash income.

The areas above 3,000 masl where minimum mainstream development is to take place (as per the NSP) also has a high horticultural potential in terms of wild harvesting of natural and medicinal plants. Most of the naturally grown medicinal plants like the Cordyceps are used in traditional medicines and recently exported to third countries.

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  Formation of collectors groups amongst the communities in different villages and development of sustainable harvesting procedures and regulations
  
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  Constitute a quality standard system for cordyceps as per the requirements of the export markets
  
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  Improvement of the current marketing/auctioning system (invitation of international buyers to the auctioning may increase sales and rural incomes)
  
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  Provision of market information on prices, quality requirements, standards to the collectors
  
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  Training of the communities on group dynamics, sustainable harvesting techniques, proper sorting/ grading and marketing of cordyceps
  

The products from here will be collected, sorted and packed in Thimphu, Bumthang and exported via Paro International Airport. The export reject products could be utilized in the Institute of Traditional Medicines for formulation, as is already being done.

A multi-pronged strategy that combines improved pre and post-harvest technologies with a marketing strategy in the long run will help transform Bhutan’s subsistence horticultural sub-sector into a highly competitive market oriented sub-sector.

According to the land suitability mapping done based on soil and slope capability, about 19.6% of country is potentially suitable to produce any arable crop, 21.6 % is potentially suitable for perennials (orchards, etc.) and 16.8% for improved pasture under rain fed conditions with the application of appropriate management techniques like erosion control, terracing, drainage, soil amelioration, fertilization, etc. We have utilized only about 15% of the actual and potential resources of the land for agriculture development. There is an enormous scope for further expansion and intensification to produce more food for consumption, more cash crops for export earning, and raise more livestock to reduce import of animal products. Most of the horticulture crops are financially viable. The internal rate of returns is positive.

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  This market may not be as big as the export markets but is quite substantial to improve the cash income of farmers. The quality standard requirements need not be as high as the requirements for export and can be easily complied with.
  
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  The major crops that can be focused for the domestic markets like urban towns, hydro project sites, schools & institutions and hotels are apples, peaches, pears, banana, mandarin, potato, chilli, cabbage, brinjal, asparagus and beans.
  
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  Detailed market requirements (monthly requirements per product) need to be established per market/institution, hydro project site, hotel to plan the production.
  
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  The emphasis should be on organizing the producers into groups, getting contract agreement between institutions and the producers, agreeing on the products and prices and delivery mechanisms.
  
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  The production areas around the urban development centres of Thimphu, Phuentsholing, Paro, Bumthang, Mongar and Kanglung need to be assessed and production capacity determined.
  
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  Collection centres / depots need to be set up in Thimphu, Bumthang and Mongar, from where the produce will be sorted, graded and packed and transported to the different locations.
  
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  Winter vegetable production for domestic market:
  

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  Production of vegetables in the warmer regions of Punakha, Wangdue, Tsirang, and Sarpang for supply to urban towns like Thimphu, Paro, and Bumthang and as an import substitution strategy.
  
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  Vegetables like cauliflower, cabbage, broccoli and saag can be produced during this season.