Bhutan Agriculture Profile 2012

Reference Date: 30-May-2011

Favourable prospects for the 2011 winter wheat harvest

Very little wheat is produced in this mountainous country but nonetheless the area planted has increased in past few years. Harvesting of the crop will begin shortly and will continue until the end of July. The snow/rainfall has been near normal this season and the early forecast points to an improved production.

The 2010 total cereal production is estimated at 185 000 tonnes (including paddy), a recovery from the drought affected 2009 output. The generally favourable monsoon season last year was the main reason behind the eight percent increase in production in 2010.

Better cereal production in 2010 is expected to lower the import requirements for the 2010/11 marketing year (July/June). However, the rising per capita cereal consumption has resulted in a rising trend in cereal imports. Imports consist mainly of rice and wheat and are normally acquired on commercial basis from neighbouring India.

Food prices remained stable but at high levels

Prices of cereals, particularly of rice and wheat, the main staple foods, have remained stable in recent months. Price of rice which had soared in the second half of 2010, due to increased demand, stabilized in early 2011 and in April were 9 percent up from their levels of a year earlier. Price of wheat on the other hand has remained generally stable.

Food insecurity exists in certain districts

According to the 2007 Bhutan Living Standard Survey Report, poverty and food insecurity prevail predominantly in Lhuntse, Samtse, Zhemgang and Monggar districts. Recent UNHCR information indicates that there are nearly 95 000 Bhutanese citizens of Nepali origin still living in seven refugee camps in south-eastern Nepal. Resettlement of refugees especially in the western countries is being implemented to solve this long standing problem.

Reference Date: 7-April-2011

Favourable prospects for the 2011 winter wheat harvest

Very little wheat is produced in this mountainous country but nonetheless the area planted has increased in past few years. Harvesting of the crop will begin shortly and will continue until the end of July. The snow/rainfall has been near normal this season and the early forecast points to an improved production.

The 2010 total cereal production is estimated at 185 000 tonnes (including paddy), a recovery from the drought affected 2009 output. The generally favourable monsoon season last year was the main reason behind the eight percent increase in production in 2010.

Better cereal production in 2010 is expected to lower the import requirements for the 2010/11 marketing year (July/June). However, the rising per capita cereal consumption has resulted in a rising trend in cereal imports. Imports consist mainly of rice and wheat and are normally acquired on commercial basis from neighbouring India.

Food prices have stabilized at high level

Prices of cereals, particularly of rice and wheat, the main staple foods, have been rising significantly in recent months. Price of rice in particular had soared recently reportedly due to increased demand following the rise in the salaries of the civil servants. The price of rice seems to have settled down in January and February. Price of wheat on the other hand has remained generally stable.

Food insecurity exists in certain districts

According to the 2007 Bhutan Living Standard Survey Report, poverty and food insecurity prevail predominantly in Lhuntse, Samtse, Zhemgang and Monggar districts. Recent UNHCR information indicates that there are nearly 95 000 Bhutanese citizens of Nepali origin still living in seven refugee camps in south-eastern Nepal. Resettlement of refugees especially in the western countries is being implemented to solve this long standing problem.

07/12/2010  2010 cereal harvest is considered favourable

Early prospects for the monsoon season crops, mainly paddy and maize, are considered good. Winter crops such as wheat, barley and buckwheat, were harvested during April-May. Given that there was good residual moisture from last year’s delayed monsoon and subsequent good rainfall during the season, production is estimated slightly improved over the depressed levels of previous year. Winter crop production, however, accounts only for about 12 percent on average of the total annual cereal output. The aggregate 2010 cereal harvest is forecast at 185 000 tonnes, about 8 percent over the below-average production of 2009.

The rising population and increase in per capita cereal consumption over last five years are expected to result in the gradual increase in cereal imports. Imports consist mainly of rice and wheat and are normally acquired on commercial basis from neighbouring India.

Food prices have been rising steadily since beginning of 2009

Prices of cereals, particularly of rice and wheat, the main staple foods, have been rising significantly in recent months. For example, April 2010 prices of white rice, maize and wheat in Samtse retail market were higher by 30, 15 and 14 percent than their corresponding levels 12 months earlier. Basic food prices have risen even in real terms since December 2008.

Food insecurity exists in certain districts
According to the 2007 Bhutan Living Standard Survey Report, poverty and food insecurity prevail predominantly in Lhuntse, Samtse, Zhemgang and Monggar districts. Recent UNHCR information indicates that there are nearly 95 000 Bhutanese citizens of Nepali origin still living in seven refugee camps in south-eastern Nepal. Resettlement of refugees especially in the western countries is being implemented to solve this long standing problem.