resource inventory and business opportunity for … ·...

RESOURCE INVENTORY AND BUSINESS OPPORTUNITY FOR

COTTAGE AND SMALL INDUSTRY UNDER PRODUCTION AND MANUFACTURING SECTORS

SAMDRUPJONGKHAR DZONGKHAG 2015

BUSINESS OPPORTUNITY INFORMATION CENTRE

Acknowledgement

This report on inventory of resources and business opportunities was prepared by Gaeddu College of Business Studies (GCBS) with the financial and advisory support of the Business Opportunity and Information Centre (BOiC).

The Centre wishes to thank the Director General and faculty members of GCBS for contributing the necessary framework and efforts to accomplish the study.

The Centre also acknowledges the support of Ministry of Home and Cultural Affairs (MoHCA) and Ministry of Agriculture and Forests (MoAF) for providing administrative and technical inputs respectively.

Most of all, we would like to thank the officials of all the Dzongkhags, local leaders and extension officials of all the Gewogs for their invaluable guidance and input during the survey.

The Centre also owes its gratitude to the Hon’ble Prime Minister of Bhutan and Board of Directors for their valuable guidance and support.

The report is the outcome of the annual plan 2015 activities of the Centre.

TABLE OF CONTENTS

DZONGKHAG PROFILE .......................................................................................................... 1

DEWATHANG GEWOG ......................................................................................................... 11

GOMDAR GEWOG ................................................................................................................. 21

LANGCHENPHU GEWOG ..................................................................................................... 26

LAURI GEWOG ....................................................................................................................... 40

MARTSHALLA GEWOG ........................................................................................................ 50

ORONG GEWOG ..................................................................................................................... 61

PEMATHANG GEWOG .......................................................................................................... 66

PHUNTSHOTHANG GEWOG ................................................................................................ 76

SAMRANG GEWOG ............................................................................................................... 87

SERTHIG GEWOG .................................................................................................................. 94

WANGPHU GEWOG ............................................................................................................. 103

REFERENCES ........................................................................................................................ 109

1

Source: www.samdrupjongkhar.gov.bt

DZONGKHAG PROFILE

Samdrupjongkhar Dzongkhag is situated in the south-eastern corner of the country, sharing its southern and eastern borders with the Indian states of Assam and Arunachal Pradesh respectively. To the west of the Dzongkhag lies Pemagatshel Dzongkhag and to the north lies Trashigang Dzongkhag. The Dzongkhag has a population of 37,393 with 5,191 numbers of households in an area of 1,877.94 sq. km. The Dzongkhag is located in the sub-tropical climate zone, extending from an altitude of 200-3,600 Meters above Sea Level (MASL) with major portion of the land within 600-1,200 MASL. Its southern strip extending across four Gewogs consists of fertile plain land. The temperature ranges from a minimum of 140 C to a maximum of 360C.

Administratively, the Dzongkhag is divided in two Dungkhags: Jomotsangkha (Daifam) and Samdrupchoeling (Bhangtar); and further sub-divided in to 11 Gewogs: Dewathang, Gomdar, Langchenphu, Lauri, Martshalla, Orong, Pemathang, Phuntshothang, Samrang, Serthi and Wangphu. The Dzongkhag has 65 Chiwogs and 191 villages. In addition, there is one Thormde (Samdrupjongkhar) and two Yenlag Thromdes (Samdrupcholing and Jomotshangkha). Samdrupjongkhar town is located at the national border with India that provides access to the Indian market including other eastern Dzongkhags.

Infrastructure and other Facilities

Table 1: Health Facilities

Sl. No. Particulars Number Remarks 1 Hospital 2 1 Military Hospital 2 Basic Health Unit-I 2 3 Basic Health Unit-II 8 4 Out Reach Clinic 32 5 RWSS Coverage 96% 6 No. of Doctors 6 2 Doctors at Military Hospital 7 Indigenous Dispensary 5 8 Immunization coverage 99%

Figure 1: Samdrupjongkhar Map

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Table 2: Education Facilities

Sl. No. Particulars Number 1 Primary Schools 17 2 Lower Secondary schools 4 3 Middle Secondary Schools 5 4 Higher Secondary schools 2 5 Colleges/Institutes 1 6 Private schools 2 7 Extended Classrooms 7 8 Early Child Care & Development 7 (2 under Thromde) 9 NFE centers 51 (6 under Thromde) 10 No. of Students 8,833 (2,069 under Thromde) 11 No. of Teachers 319 (79 under Thromde) 12 Teacher Student Ratio 1:28 13 Literacy Rate 52.4 Total Schools 45

Others:

The town has a Food Corporation of Bhutan (FCB) ware house and an auction yard for trading mandarin, potatoes and ginger from different parts of the eastern region.

Existing Resources Inventory Agriculture & Horticulture, 2013 The people in the Dzongkhag depend mainly on agriculture and maize is the principal staple crop cultivated in all the Gewogs. It is cultivated on dry land and mostly under rain-fed conditions. The Dzongkhag also produces mandarin, mango, pear and others as indicated in Table 3.

Table 3: Major Crops Cultivated Area, Production and Yield in the Dzongkhag

Sl. No Cereal Crops Area (Acres) Production (MT)

Yield (Kg/Acre)

1 Wheat 39 29 736 2 Barley 298 221 742 3 Paddy 2,468 3,677 1,490 4 Maize 4,712 6,361 1,350 5 Buckwheat 1,077 827 760 6 Millet 296.2 151 510

3

Table 4: Major Vegetables Cultivated Area, Production and Yield in the Dzongkhag

Sl. No Vegetables & Spices

Area (Acres) Production (MT)

Yield (Kg/Acre)

1 Cardamom 11 1.5 500 2 Ginger 142 48 340 3 Garlic 142 48 340 4 Onion 97 18 191 5 Potato 944 2,607 2,751 6 Chili 625 646 1,033 7 Cabbage 178 89 502 8 Cauliflower 178 89 502 9 Green Leaves 100 100 1,000 10 Radish 150 185 1,233

Table 5: Major fruits production and yield in the Dzongkhag

Sl. No Name of Fruit Crops

Total Tress

Bearings Trees

Pdnn (MT)

Yield (Kg/Bearing Tree)

1 Apple 714 100 4 40 2 Mandarin 1,97,10

0 88,750 5,068 57

3 Mango 3,020 980 24 25 4 Peach 3,957 2,176 147 68 5 Pear 4,190 1,473 91 62 6 Plum 1,408 534 25 48 7 Areca Nut 69,226 47,807 579 12

Livestock Population and Production, 2013

Dairy farming is also one of the important farming activities of the Gewog. Most of the Gewogs depend on dairy products (milk, butter and cheese) for their livelihood. The farmers rear improved-breed cattle and also poultry to supplement income.

Table 6: Livestock Population and Production

Cattle Local Cattle

Jatsha/Jatsham Mithun Jersey cross

Jersey pure Yak

8,516 3,740 138 3,759 108 50

4

Table 7: Pig, Poultry and Fish population

Table 8: Meat Production

Meat Products Produced (kg) Meat Products sold (kg)

Pork Beef Mu-tton

Chi-cken Fish Pork Beef

Mu- tton

Chic- ken Fish

3,909

19,305 3,18

9 2,28

7 32,881 2,524 15,186 939 428 32,881 Table 9: Dairy Products and Quantity Sold

Dairy Products & Egg (Produced) Dairy Products & Egg (Sold) Milk (kg) Butter

(kg) Cheese

(kg) Egg (kg) Milk

sale (kg)

Butter sale (kg)

Cheese sale (kg)

Egg sale (kg)

17,44,038 51,581 3,37,413 29,48,70

2 18,7,919 20,954 41,927 27,99,378 Table 10: Cottage and Small Industry

Sl. No. License Category Numbers Remarks Trade

1 Services 926 Only 438 in operation 2 Contract 433 Only 98 in operation 3 Manufacturing 84 Only 51 in operation

Industry 4 Micro Trade Registration Certificate 873 Only 443 in operation 5 Retail 1,444 Only 823 in operation 6 Wholesale 44 Only 19 in operation

Total 3,804

Pig, poultry & fish

Local Pig

Improved pig

Local poultry

Improved poultry Sheep Goat Fish

395 296 9,293 3,992 84 1,530 50,367

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Gewog-wise Business Opportunities in Different Sectors

Table 11: Gewog Wise Business Opportunities in Agriculture and Horticulture Sectors

Opportunities in Agriculture and Horticulture

Dew

atha

ng

Gom

dar

Lan

gche

nphu

Lau

ri

Mar

tsha

la

Oro

ng

Pem

atha

ng

Phun

tsho

than

g

Sam

rang

Sert

hig

Wan

gphu

Prod

uctio

n

Maize * * Chili * * * * Potato * * * * * * * Radish * * * Ginger * * * * Other vegetables * *

Man

ufac

turi

ng Dolay pickle *

Kharang processing plant *

Tengma *

Prod

uct-

ion Areca nut *

Mandarin *

Man

ufac

turi

ng

Lime power processing unit *

Mandarin juice processing *

Table 12: Gewog Wise Business Opportunities in Livestock Sector

Opportunities in Livestock Sector

Dew

atha

ng

Gom

dar

Lan

gche

nphu

Lau

ri

Mar

tsha

la

Oro

ng

Pem

atha

ng

Phun

tsho

than

g Sam

rang

Sert

hig

Wan

gphu

Pdn Dairy farming * * * * * * * *

Poultry * * * * * * *

6

Local breed piggery *

Man

u.

Milk processing unit *

Dzongkhag Level Business Opportunities

The common business opportunities identified amongst the eleven Gewogs are dairy farming, potato and ginger cultivation. In some of the Gewogs, poultry, fishery, and piggery are identified as potential livestock business opportunity areas while some other Gewogs focus on maize and areca nut production. The details of each of these business opportunities are discussed Gewog-wise.

(1) Dairy Farming

In 2013, Samdrupjongkhar Dzongkhag had a cattle population of 16,311. The people in the Dzongkhag have improved-breed cattle such as pure-jersey and cross-breed jersey cows contributing to the substantial production of dairy products. However, local-breed cattle are still reared in large number because of their adaptability to native conditions. For the enhancement of rural income through livestock, the government provides 30% of the cost of purchasing improved-breed cattle. The Dzongkhag Livestock Department initiated the formation of farmers’ Dairy Group to help marginal dairy farmers. Market The members of the Dairy Group supply milk to the milk-processing unit while the other individual households process milk at home for domestic consumption. The common dairy products such as butter and cheese are sold through community group retail outlets. The community dairy groups located within close proximity to towns supply fresh milk to the consumers. The unsold milk is processed into butter and cheese. In 2013, the Bhutan Trade Statistics (2013) show that Bhutan imported dairy products worth Nu. 246.58 million. The import of milk and cream constitutes the largest quantity of dairy products i.e. 2,683.5 MT followed by 301.6 MT of processed butter. This indicates that there is a huge business opportunity in dairy farming and dairy product processing. As per the Bhutan Livestock Statistics (2009 & 2013), the domestic milk production increased from 25,691.66 MT in 2009 to 30,920.16 MT in 2013, an increase of over 20% from 2009 to 2013. Between 2009 and 2010, the import of fresh milk decreased by 15% indicating a gradual import substitution through domestic production (Choden, 2012). Therefore, with supportive government intervention and increasing domestic demand for dairy products, dairy farming has opportunities for both expansion and product development.

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Product Development One of the imported milk products includes Indian made lassi (bottled milk curd) and yoghurt. Since the technology required for manufacturing lassi appears to be simple, it is one of the viable business opportunities that can be pursued. Yoghurt is another milk product and current demand is met through imports. The Bhutan Trade Statistics (2010 & 2013) show that import of yoghurt was 1286 kg worth Nu. 83,824 in 2010 and has increased to 3,581 kg worth Nu. 6,14,739 in 2013. Therefore, a small- scale yoghurt- manufacturing unit appears to be a viable business opportunity particularly to capture this growing market. (2) Potato Production Potato is cultivated in more than 150 countries and it is the fourth most important world food crop after wheat, rice, and maize (Joshi & Gurung, 2009). According to the Food and Agriculture Organization Statistics (FAO, 2012), China is the highest producer of potato in the world followed by India. Potato is a carbohydrate rich food that is highly popular worldwide and Asia consumes half of the world’s potato supply (Joshi & Gurung, 2009). In Bhutan, potato is an important source of income for the Bhutanese farmers and a staple crop. Potato production ranks fourth in Bhutan after rice, maize and oranges (FAO, 2012). The common varieties of potatoes cultivated are Desiree, Kufri jyoti, Khangma kaap and Yusikaap (Joshi & Gurung, 2009). The Royal Government of Bhutan (RGoB) established Bhutan Potato Development Program (BPDP) in 1980s to enhance household food self-sufficiency and increasing rural incomes (Wangchuk & Siebert, 2013). The per capita potato consumption in Bhutan is forecasted to increase to about 60 kg by 2020 (Nidup, Tshering, Chhetri, Bokel & Punjabi, 2007).

Market As per the Bhutan Trade Statistics (2013), potato is one of the exported commodities to India with whom Bhutan has a trade surplus of Nu. 303.19 million. The State of the Nation’s Report (2012) states that Bhutan sold 30 MT of potato seeds of Kufri Jyoti to

Desiree Kufri jyoti

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Tata Chemical Limited (TCL), India in November 2011. TCL had a demand of more than 300 MT for 2012 that was expected to further increase over the years. Potato is universally consumed and is prepared in a variety of ways, such as boiled, baked, roasted and is mainly consumed as a vegetable in Bhutan. Bhutanese consumers prefer locally produced potato to imported potato because of good taste and organic (Tilburg, Kuiper & Swinkels, 2006). Especially, the locally produced red skin Desiree variety has excellent keeping/storing quality, better prices and good eating quality (Joshi & Gurung, 2009). Thus, there is a huge market for potato both at the national level and in India. Production and Institutional Support Potato production in Bhutan gained impetus in 1980s and the farmers are accustomed to the practice of cultivation at individual household levels. The Ministry of Agriculture and Forests (MoAF) consistently supported the farmers in terms of seeds and pesticides, and the technical expertise of cultivating the crop. Bhutan has a competitive advantage in potato production because of seasonal difference with the principal market in India. Bhutanese potatoes are demanded for seeds in the low-lying areas in India (Assam and West Bengal) because of better yield and its being cheaper by Rs. 400 per 50 Kg when compared to potato seeds bought from Punjab (Sarkar, 2012). In 2014, the Bhutanese farmers exported 26,345 MT of potato, worth Nu. 684.10 million (Kuensel, March 7, 2015). The average potato price, for a kilogram, was Nu 38.51, while the highest price received last year was Nu 56.80 (Kuensel, March 7, 2015). Samdrupjongkhar Dzongkhag produced 2607 MT of potatoes in 2013 and mostly exported through auction yard in Samdrupjongkhar. Potato production in Samdrupjongkhar has a high growth potential due to favorable climatic conditions and soil fertility in many Gewogs. Potato grows well between the altitude ranges of 2,000 to 3,500 MASL under rain-fed conditions (Joshi & Gurung, 2009). Further, potato cultivation in Samdrupjongkhar is becoming favorable due to warm climatic conditions. Infrastructure and Economic Valuation Pertaining to infrastructure, the people of Samdrupjongkhar have fairly good road connectivity but have to reach far-flung places such Lauri. Electricity and mobile phone coverage network is improving. The sale of potato has helped farmers to earn quick cash. However, opportunity to scale up production is subject to mitigating the problem of wildlife intrusion into farmlands and availability of adequate farm labour. Business Opportunity Primarily, all the Gewogs cultivate potato and focus on production sp a potato depot in every Gewog with grading and packaging process would be a value addition. Although, feasibility of large-scale potato chips production using potato cultivated in Bhutan is not possible due to high starch (sugar) content (Wangchuk, Personal Communication,

9

26/12/2014), potato chips production could be initiated as a micro business. Such a business initiative could be further improved with proper packaging and serve the niche market. (3) Ginger Production Bhutan is ranked 17th in terms of producing ginger in the world (FAO, 2013). The production comparison of ginger in the country has gone down by 1,258 MT (2012-2013). This is accounted to low yield even though the cultivated area in acreage has increased by 504 acres. However, the amount earned from the sale has vastly increased from Nu. 69.6 million in 2012 to Nu. 159 million in 2013. Although ginger yield is 340 kg per acre (Agriculture Statistics, 2013), it is comparatively low and people are keen to scale up ginger production. Ginger is less susceptible to destruction by wildlife; the cultivation of ginger involves less drudgery and market is reliable, though prices fluctuate. Economic Valuation Ginger has an upholding medicinal values and it is one of the main components in our traditional medicine. With the changing food culture amongst Bhutanese, spices like ginger is placed as a key flavour in many Bhutanese dishes.

Ginger is the second highest economically valued spice in Bhutan. About 80% of the national production is consumed in the domestic market and the remaining is exported to the border towns of India (Assam and West Bengal). The price per unit comparison from 2012 to 2013 widens the scope of production in terms of product value. The economic value of ginger is well received by the farming community in majority of the Gewogs in Samdrupjongkhar.

Market There are at present twelve spices exporters from Bhutan. Eight of the registered exporters are based in Phuentsholing. Three are based in Thimphu and one in Paro (Indian Embassy record, 2015) The export of ginger, saffron, turmeric, thyme, bay leaves, curry and other spices amount to about Nu. 36 million (Trade Statistics, 2013). The export is mainly made to Indian market. Value added Products from Ginger Ginger is locally processed to produce ginger powder, ginger tea, paste, pickles, and candy. Most of these processes are done through traditional methods and it has not penetrated the market yet. The ginger powder and candy are mostly sold in smaller quantity in retail shops and in the Centenary Farmers Market (CFM) in Thimphu. These products are also marketing in the local exhibitions. With the limited quantity produced adding to its cost of production, the price of the product is higher than the other products on sale in the market. However, the consumers’ preferences for such products are due to its superior quality and the local brand produce.

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Fresh ginger is mainly sold through local vendors, vegetable sellers and some exporters. There is an opportunity to process the fresh ginger by cleaning and removing the soil and roots and finally pack in a standard requirement for direct sale to the consumers. The value addition has the potential to increase the price per unit sold.

Business Opportunity Langchephu, Orong and Phunthsothang Chiwogs are keen for the commercial production of ginger under Samdrupjongkhar Dzongkhag. Ginger is also one of the sources of income for the people in all other Chiwogs. Therefore, ginger production has potential business opportunity in the Dzongkhag. Opportunity for a processing plant to manufacture export quality ginger powder, ginger paste at the cottage level is preferred. Later, the business can be diversified to processed products like ginger tea, ginger candy, ginger oil, and ginger oleoresin.

11

DEWATHANG GEWOG

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Gewog Profile Dewathang Gewog is 18 km away from the Dzongkhag headquarter and it consists of 23 villages with 371 households with a total population of 3,091. The Gewog is bordered by Orong Gewog in the north, Phuntshothang Gewog in the east, Pemagatshel Dzongkhag in the west and Assam in the south. The Gewog has potential in horticultural development. Maize is the staple crop and it is widely cultivated in the dry land. Mandarin is the main cash crop which significantly contributes to the rural income followed by ginger. Infrastructural facilities The Gewog has five Chiwogs and all are accessible by farm road extending to about 22.2 km long. The Gewog has two hospitals and two outreach clinics. There are two primary schools, two middle secondary schools, one lower secondary school and one community primary school. There are four non-formal education centers. The Gewog also has one private school and one college i.e., Jigme Namgyel Polytechnic. All the settlements are well electrified. Existing Resource Inventory, 2014 Agriculture, Livestock and Forest Products The main cereal crops include maize and paddy for domestic consumption. The farmers depend on sale of dairy products and other vegetables to supplement their income. Mandarin is mainly grown in Martang and Domphu Chiwogs. The Gewog has established three-community forests and six private forests. Following the environment conservation policy, the forest resources are harvested in a sustainable approach. Non Wood Forest Product (NWFP) like mushroom is available; however, collection is restricted to domestic consumption.

Figure 2: Dewathang Gewog Map

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Dewathang Gewog has one coal mine where most of the people earn their livelihood as coal miners. In the Gewog, there are many medical herbs, locally known as Mainyoungba, Antratu, Laniru and Aru-baru but people are not enthusiastic to collect. The Gewog has no record of any professional art and craft skills except in few areas of wood works. Table 13: Land size in Acres

Types of Land Land Size in Acres Dry Land 1,158.37 Wet Land 96.60 Pangzhing 124.76 Open Grazing Land 121.00 Developed Pastures 135.00 Mandarin Orchid 180.53 Community Forest 3.00 Private Forest 6.00

Source: Dzongkhag Profile, 2014 Business Ideas generated from Profiling, Focus Group Discussion (FGD) and Key Informant (KI) Interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts. Under agriculture sector, all the Chiwogs grow maize, paddy and vegetables. Ginger is cultivated in Rekhey, Domphu and Martang Chiwogs. Mandarin is grown in all the Chiwogs, except Rekhey. All the Chiwogs have improved-breed cattle and farmers have Dairy Farm Groups. Table 14: Business Ideas Generated through FGD

Chiwogs Agriculture Livestock Forest Horticulture

Chennari Maize**, paddy Diary**, poultry**

Arubaru, Antratu

Mandarin**

Bangtsho Maize**, Vegetables**

Diary**, poultry Arubaru, Laniru, Antratu

Mandarin**

Rekhey Maize***, paddy*** Ginger***, vegetables**

Diary**, poultry**

Mushroom, Lhajumo

Banana, Sugarcane (Opportunity)

14

Domphu Maize***, Ginger*** Vegetables**

Diary**, poultry**

Laniru, Manyongbo

Mandarin***, Sugarcane (Opportunity)

Martang Maize***, Ginger*** Paddy Vegetables

Diary**, poultry**

Laniru, Manyongbo

Mandarin***, Cardamom (Opportunity)

Cereal Crops Production Maize ranks top in terms of yield per acre and paddy ranks the second. Millet, wheat, barley and buckwheat production are relatively very low compared to paddy and maize. The details are indicated in figure 3. Figure 3: Comparative Yield of Major Crops

Vegetable Production The trend in terms of yield and harvested area indicate that potato production is the highest in 2011. In 2011, potato production was 103 MT compared to other vegetables in the Gewog. The main reason for the huge potato production was easy access to market and longer shelf life. Vegetables such as turnip, radish, chili, broccoli, carrot, tomato and asparagus are produced in small quantity for sale in the local market. Vegetables like onion, pea, tomato cauliflower, pumpkin, Rajma beans and carrot are produced for domestic consumption. The details of the vegetable production are indicated in figure 4.

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Figure 4: Productivity of Major Vegetables

Dairy and Poultry Products The production of eggs has considerably increased in 2013. In 2012, 57,269 eggs were produced but in 2013, the production of eggs has increased to 23, 15,732. The production of milk, butter and cheese has also increased in 2013. Production Model Farming is fundamentally practiced at an individual household level. Farmers practice complex farming system where, land is used for multiple cropping and livestock rearing. The forest resources are shared through community forests. There are three community forests and six private forests registered under the Gewog. The community is exploring business opportunities from their forest resources.

Table 15: Major Crops and Vegetables Cultivated Areas and Production

Dewathang Gewog Sl. No Crops Area (Acres) Production (MT)

1 Paddy 36.00 37.01 2 Maize 47.00 1,11.01 3 Wheat 0.00 0..00 4 Barley 0.00 0.00 5 Buckwheat 0.00 0.00 6 Millets 0.00 0.00 7 Potato 103.00 8 Turnip 0.21 2.03

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9 Chilli 1.00 10.11 10 Cabbage 2.00 19.28 11 Cauliflower 1.00 2.92 12 Broccoli 0.45 0.10 13 Asparagus 0.00 0.00 14 Tomato 1.00 0.93 15 Carrot 0.01 12.00 16 Radish .004 0.44

Source: Agriculture Statistics, 2013 Business Opportunity Scanning and Validation Production Volume of Ginger and Potato Amongst the vegetables production in 2013, potato production ranked the highest (Table 15). Under the cereal crops category, although maize gives better yield per acre but the value per acre is about 50% less than the paddy. Given the total dry land of 1,158.37 acres in the Gewog, cultivation of high yielding vegetables has a competitive advantage. Furthermore, the FGD informed that the Gewog emphasizes on vegetable production, especially ginger. Amongst the cereal crops, FGD informed that farmers are keen in rice production. However, limited wet land of 96.6 acres and shortage of farm labour due to rural-urban migration were highlighted as the major constraints for paddy cultivation. Vegetable production was found a commercially viable alternative. Table 16: Export and Import Statistics of Potato and Ginger

Items

Import Export Trade Gap

Qty (KGM)

Value (Nu.)

Qty (KGM)

Value (Nu.) Qty (KGM)

Value (Nu.)

Potato Seeds 3,650 33,250 10,250 22,5,500 6,600 19,2,250

Potato (Others) 5,278,946 570,0,0000 218,610,04 359,905,481 16,582,058 302,905,481

Potato (Frozen) 0 0 12350 1,70,200 12,350 1,70,200

Ginger 120.2 7,840 1,226,401 35,979,970 1,226,281 35,972,130

Source: Bhutan Trade Statistics, 2013 As shown in Table 16, both potato and ginger have a trade surplus. The export of these two cash crops is facilitated by FCB at the auction yards in Samdrupjongkhar

17

and Phuntsholing. Some farmers directly sell their products in the nearby Indian markets. Table 17: Export and Import statistics of Rice and Maize

Items


Qty (KGM) Value (Nu.) Qty

(KGM) Value (Nu.)

Qty (KGM) Value (Nu.)

Rice in Husk

286,261 5,415,032 1,200 35,000 285,061 5,380,032

Rice Husked

46,438,003 1,061,331,549 0 0 46,438,003 1,061,331,549

Red rice

3,250 93,600 0 0 3,250 93,600

Rice Semi- milled

23,447,259 460,471,608 0 0 23,447,259 460,471,608

Broken rice

2,414,184 33,887,493 0 0 2,414,184 33,887,493

Maize (corn) flour

300,054 7,160,163 10,220 236,600 289,834 6,923,563

(corn) Starch

1,038,552 15,436,011 9,410 131,740 1,029,142 15,304,271

Source: Bhutan Trade Statistics, 2013 Market Considering the trade surplus, the farmers sell radish and potato in the nearby schools and Indian markets. FDG informed that other varieties of vegetables such as chili, cabbage and beans are sold in the local markets. Potato is exported. Production Volume of Dairy Products and Eggs In 2013, annual butter production has decreased by 167.5 kg, while milk and cheese production has increased by 6044 litres and 1,433.35 kg respectively. The production of eggs in the Gewog increased by 2,258,463 numbers in 2013. See the tables below: Table 18: Seasonal Calendar: major activities of the farmers during a year

Sl. No.

Activities Bhutanese Calendar Month 1 2 3 4 5 6 7 8 9 10 11 12

1 Potato Cultivation X 2 Potato Harvesting X X 3 Chili Cultivation X X X X 4 Wheat Cultivation X X 5 Barley Cultivation X X X X

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6 Turnip and Mustard X X 7 Leaf litter collection X 8 Firewood collection X X X 9 Bamboo Harvesting X X

10 Timber X X Table 19: Productivity of Cereal Crops

Crops Cereals Yield (kg/acre) Paddy 375.00 Maize 1,118.00 Table 20: Productivity of Vegetables

Vegetables Production (MT) Potato 103.00 Turnip 2.03 Chili 10.11 Cabbage 19.28 Cauliflower 2.92 Broccoli 0.10 Tomato 0.93 Carrot 12.00 Radish 0.44 Others 28.87

Table 21: Productivity of Dairy Products and Eggs

Sl. No Products (kg) 2011 2012 2013 1 Milk Produce 103,251.00 148,756.00 154,800.00 2 Butter 898.00 1458.25 1,291.00 3 Cheese 1,616.00 1615.95 3,049.00 4 Egg 57,269.00 57,269.00 2,315,732.00

FDG informed that the dairy products and eggs production is likely to increase further because most farmers are enthusiastic. The Table 18 shows that trade deficit in dairy products and eggs amounted to more than Nu.247 million.

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Table 22: Export and Import Statistics of Dairy Products and Eggs

Items

Import Export Trade Gap Qty

(KG) Value (Nu.)

Qty (KG)

Value (Nu.)

Qty (KG)

Value (Nu.)

Milk & Cream 26,83,509 1,240,61,554 0 0 26,83,509 -12,40,61,554 Butter (Fresh) 6,374 18,84,975 0 0 6,374 -18,84,975 Butter (Processed) 3,01,618 6,38,62,650 0 0 3,01,618 -6,38,62,650

Butter (Other) 84,619 98,91,554 0 0 84,619 -9,89,1554 Cheese (Fresh) 21,976 37,05,337 360 54,000 21,616 -36,51,337 Cheese (grated or powdered)

1,000 3,43,427 0 0 1,000 -3,43,427

Cheese (Other) 1,68,107 4,28,33,668 620 67,000 1,67,487 -4,27,66,668 Eggs 9,585 13,12,330 0 0 9,585 -13,12,330

Source: Bhutan Trade Statistics, 2013 Market As there is trade deficit in dairy products, the Gewog has market potential. FDG informed that current milk and egg production is not sufficient for the local market. Challenges Human-wildlife Conflict and Livestock Diseases The scattered and remote rural settlements hinder the efficient and cost effective delivery of socio-economic services to the people. A part of the Khaling Wildlife Sanctuary falls under the Gewog and intrusion of wildlife into farmlands is constant which discourages the farmers in agriculture. Since the Gewog is located in the southern foothills, elephants frequent the farmlands and destroy all crops, besides other common wild animals such as wild boar, deer, porcupines and birds. Sometimes, outbreak of livestock diseases also threatens livestock production and its productivity. Lack of Financial Resource and Farm Workers Access to rural credit is another challenge faced by the farmers that in turn hampers the investment opportunities for farmers in related rural enterprises. Rural-urban migration has created a shortage of young workforce in the rural areas. Some Chiwogs are still facing the problem of rural-urban migration. Opportunities Identified for the Production Under the agriculture sector, potato is identified as the viable business opportunity due to the following reasons: (a) potato has favorable market in India organised through auction yard in Samdrupjongkhar and Phuntsholing, (b) potato adapts well to the

20

practices of mix-cropping, especially with maize and (c) potato can be preserved longer than many other vegetables. Variety of other vegetables production provides viable business opportunities for the farmers in the Gewog, namely chili and radish. Owing to trade deficit, vegetable production will substitute import and improve the balance of trade. Under the livestock sector, dairy products and eggs are viable business opportunities and help in minimizing imports. Since milk production is non-seasonal, milk-processing firm under small-scale industry is a viable opportunity. Milk processing with better packaging of dairy products is also seen as a manufacturing opportunity for value addition and better marketing.

21

GOMDAR GEWOG

22

Gewog Profile Gomdar Gewog is located to the north of Samdrupjongkhar Dzongkhag administrative office and it is 71 kilometers away from the Dzongkhag head quarter. The total area of the Gewog is around 80.8 sq. km. It has five Chiwogs and 20 villages. The total population of the Gewog is 5,089 with 631 registered households. Around 542 households are electrified under the Gewog. Primary Land Use Table 23: Primary Land Use

Types of land Acres Chuzhing 20.07 Kamzhing 1,979.20 Pangzhing 3,404 Mandarin Orchard 180.90 Tshesa 48.26 Total 5,632.40

Source: Dzongkhag Website, 2015 Existing Resource Inventory Agriculture, Livestock, Forestry, Local Arts and Crafts and Horticulture The main cereal crop grown in Gomdar Gewog is maize, and other cereal crops grown are Buckwheat, Sweet-Buckwheat and Wheat. In terms of horticulture, Mandarin is popularly grown in all the Chiwog and as per the land record; Gewog has huge acreage of land under Mandarin orchard (180.9 acres). Vegetables like Rajma beans and potato are also grown widely. Non-wood Forest Products popularly found in the Gewog are Daphne, fern and Ringshu and Patsha. Majority of the Chiwogs have backyard poultry, piggery and dairy farms and a unique feature found in the Gewog is local-breed piggery farm. In terms of arts and crafts, only one Chiwog called Gomdar-Richanglu produces Dung and Jaling. The Gewog has huge deposits of limestone and has huge potential for producing lime. Khoyar- Pangthang Chiwog claims to have iron ore deposits.

Figure 5: Gomdar Gewog Map

23

Business Ideas Generated from Community Profiling, FGD and KI Focus Group Discussion (FGD) was conducted in Gomdar Gewog on 26th January 2015. There were six participants led by Mangmi and five Tshogpas of all the Chiwogs. As indicated in Table 24, the discussions were held on five areas; Agriculture, Livestock’s, Forestry, Arts and Crafts and Horticulture. Participants were asked to identify the potential in production and viable business opportunities in these five sectors and also asked to point out the challenges. Besides these five sectors participants were also asked what are the potential mineral deposits existing in the Gewog. Table 24: Business ideas generated through FGD

Sl. No.

Chiwog Agriculture & Horticulture

Livestock Forestry Arts & Craft

1 Broomi-Chidoongkhar

Maize, buckwheat, sweet buckwheat, wheat, Mandarin, Pear

Local cattle, piggery, backyard poultry farm

2 Denchi Maize, buckwheat, sweet buckwheat, wheat, rajma beans, Mandarin, Pear

Piggery firm (local & high breed), backyard poultry farm

Daphne, ferns

3 Gomdar-Richanglu

Maize, buckwheat, sweet buckwheat, Rajma beans, vegetables, Mandarin

Dairy Firm, backyard poultry farm

Ringshu Trumpet & Oboe

4 Khoyar-Pangthang-Pirung

Maize, buckwheat, sweet buckwheat, rajma beans, ginger, potato, Mandarin

Backyard poultry farm

Daphne, ferns

5 Narphung Potato, buckwheat, sweet buckwheat, vegetables, Mandarin

Dairy Firm Patsha, fern, damru

Product Attractiveness Matrix From the FGD, mandarin, local breed piggery firm, buckwheat, limestone and Dollay chili pickling were identified as the most attractive in terms of business. The maize is cultivated all over the Chiwog; there is low demand in the locality.

24

Table 25: Attractiveness Matrix

Business Opportunity Scanning Lime Powder Processing Plant Limestone reserve is informed to be high under Gomdar Gewog and it was claimed that already informal surveys were carried out in the past to extract limestone. Therefore, Gewog has huge potential to produce lime powder, which can be used for whitewashing and painting. Local-breed Piggery Firm It was pointed out that two Chiwogs in the Gewog has local breed piggery firm which is supported by the government. The people have plans to scale up this local-breed firm. Therefore, this farm has niche market in the future. Dollay Chili Pickling (Dandicut Pepper) Plant in Narphung Chiwog Dandicut pepper is widely grown in the Narphung Chiwog and this Chiwog has potential to establish Dandicut pepper pickling plant (Dollay Chili). Mandarin Juice Processing Plant Gomdar Gewog having high acreage of mandarin orchard under Samdrupjongkhar Dzongkhag, it has huge potential to establish mandarin juice processing unit. The FGD informed that it is very difficult to sell mandarin to India because of strike. Moreover, the people cannot sell small sized mandarins. Therefore, it was pointed out that small mandarin juice processing plant will benefit the people in the Gewog. Market Since the Gewog is located in remote area, marketing agriculture products is a problem for the people of Gomdar Gewog. Currently people in the Gewog sell mandarins Indian businessmen via Samdrupjongkhar. Dairy products like milk are sold within the

Pote

ntia

l to

prod

uce Hig

h

Maize Mandarin, local breed piggery farm

Med

ium

Buckwheat

Low

Low Medium High

Potential Market Demand

25

Gewog. Future potential market lies in the bordering town of Samdrupjongkhar only. Challenges Lack of Accesibility to Market Some of the Chiwogs under the Gewog are still not connected with farm roads. Therefore, main challenge faced by people is accessibility to road to market their products. Human Wildlife Conflict Wild pig, monkey, elephant and deer are the most problematic wild animals that destroy crops in Norbugang. Lack of Accesses to Proper Market Lack of proper market is also a challenge faced by people in Gomdar Gewog.

26

LANGCHENPHU GEWOG

27

Gewog Profile Langchenphu Gewog centre is based at Jomotshangkha Dungkhag bordering with Assam and Arunachal Pradesh of India. The Gewog is accessible with motorable road that passes through the Indian State of Assam. Langchenphu Gewog has a total area of 222.43 sq. km. The Gewog has 5 Chiwogs, 15 villages, and 256 households with a population of 2091. Langchenphu Gewog falls in a Sub-tropical climatic zone and the cultivable lands are mostly wetland (Chuzhing). The summer is hot and humid and the Gewog receives heavy rainfall from June till t he end of September. Winters are cool and dry. The soil is fertile and clayey making it suitable for agriculture. Paddy is the dominant staple crop and cash crops consist of mandarin, areca nut and ginger. The Gewog has initiated integrated farming practices of fishery and piggery on a large scale.

Langchenphu Gewog has poor internal road network with no road connectivity to the Dzongkhag headquarter other than via Assam. Infrastructure and Facilities In the health sector, the Gewog has one Basic Health Unit and one outreach clinic. Under the educational sector, the Gewog has one middle secondary school and one Primary school. There are two non-formal education centers. All the settlements are well electrified.

Table 26: Chiwog Level Profile

Sl.No Chiwog Name of Village Total HH

1 Rongchuthang

Rongchuthang 12 Tashiling 20

2

Agurthang

Agurthang 17 Damtshang 5 Pakshinkha Dawathang 37

3 Jampani Jampani 25

Figure 6: Langchenphu Gewog Map

28

Jomothshangkha 19

4

Jangsa

Jangsa Gom 28 Gangsa Wom 21 Namchagzor 7 Aumshing 2

5 Langchenphu

Langchenphu Toed 27 Langchenphu Maed 23

Existing Resource Inventory, 2014 Agriculture, Livestock and Forest Products In the Gewog, paddy is an important staple crop and the cash crops consist of mandarin, areca nut and ginger. The Gewog has initiated the integrated farming practices of fishery and piggery on a large scale. Mostly, mandarin is cultivated in Agurthang and Jangsa Chiwogs. Livestock farming is one of the most important sources of income generation. The people of Jangsa, Rongchuthang, and Langchenphu Chiwogs are into fishery and poultry farming. All the Chiwogs raise cattle for dairy products including both local-breed and improve-breed cattle. The Gewog has three community forests as of now. Non-wood forest product (NWFP) like mushroom is also available but it is harvested for household consumption only. The Gewog has no art and craft skill. Table 27: Land Size in Acres

Types of Land Acres Dry Land 777.75 Wet Land 323.53 Community Forest 3.00 Source: Dzongkhag Profile, 2014

Business Ideas generated from Profiling, Focus Group Discussion and Key Informant Interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts.

29

Table 28: Business Ideas Generated from FGD

Under agriculture sector, FGD informed that paddy, ginger and areca nut are commonly grown in all the Chiwogs and have better business prospects. Mandarin is grown in Agurthang and Jangsa Chiwogs. In Jangsa, Rongchuthang, and Langchenphu Chiwogs, the people are keen in enhancing their fishery and poultry business. For dairy farming, the people are becoming more dependent on improved-breed cattle for high milk productivity.

Sl. No. Chiwogs Agriculture Livestock Horticulture

1 Rongchuthang

Paddy* Maize Betel nut* Ginger*

Diary (Local) Poultry* Fishery*

Mandarin Mango (Opp) Litchi(Opp) Coffee(Opp)

2 Agurthang Paddy* Ginger* Betel nut*

Diary (Plan) Mandarin*

3 Jampani

Paddy* Ginger* Areca nut * Millet Maize

Diary (Plan) Poultry (local)

4 Jangsa

Maize Mustard Paddy* Ginger* Areca nut *

Diary* fishery* piggery*

Mandarin*

5 Langchenphu

Paddy* Ginger * Maize, Millet Ginger* Areca nut *

Diary* fishery* poultry*

30

Table 29: Attractiveness Matrix Po

tent

ial t

o pr

oduc

e Hig

h

Betel nut, ginger, dairy products

Med

ium

Low

Maize, millet Paddy Low Medium High

Potential Market Demand The product attractive matrix (Table 29) presents that dairy products, areca nut and ginger have both potentially high demand and production. Figure 7: Productivity of Major Crops

Paddy ranks top in terms of yield per acre (see Figure 7) and maize ranks the second. Farmers prioritize the production of paddy over maize for three reasons: firstly, rice is a staple crop and secondly, relative price of rice over maize is high. An irrigation facility available in the Gewog is one of the important reasons for cultivating paddy. The average price of paddy at a national level is Nu. 38.98 per kg and Nu. 14.53 per kg for maize (Agricultural statistics, 2013) while the cost of production is same for both the crops. Millet and buckwheat production is low compared to paddy and maize. Millet and buckwheat are produced mainly for household consumption.

31

Ginger production ranks the highest in 2013 compared to other vegetables in Langchenphu Gewog. The average annual production in 2013 was 63000 kg. The main reason behind high production of ginger is better price than other vegetables. They export ginger to India through auction yards. Productivity of Fruits Crop

Langchenphu Gewog grows different types of fruits both for domestic consumption and sale. The most popular fruits are areca nut and mandarin. Total areca nut production in 2013 in the Gewog was 171808 kg and followed by mandarin of 140650 kg. Other fruits such as banana, guava, peach, mango and jackfruit are grown for domestic consumption. Meat Production The annual average production of pork and mutton has declined to 340 kg in 2013 from 1508 kg in 2012 and mutton to 75 kg in 2013 from 1101 kg in 2012. The average annual

Figure 8: Productivity of Vegetables

Figure 9: Productivity of Fruits

32

production of fish in 2013 was 14892 kg when compared to 2012 with only 1750 kg. National Centre for Aquaculture (NCA) provides necessary training and guidance to the people of Langchenphu to enhance the production of fish.

Dairy Products and Eggs

Dairy products production in Langchenphu Gewog has increased from 2012 to 2013. The main reason for the increase in dairy products is the distribution of improved-breed cattle by the government including high yielding local-breed-Jatsa and Jatsam. The annual average production of eggs has decreased in 2013.

Figure 10: Meat Production

33

.

Production Model Agriculture farming is fundamentally carried out at individual household level. The available land per household is used for complex farming – cultivating variety of crops as well as livestock farming. Table 30: Comparative Analysis of Crops

Sl. No Crop Area (Acre) Production (kgs)

Yield (kgs/acre)

1 Ginger 33.00 64,350.00 1,950.00 2 Turmeric 4.50 4,365.00 970.00 3 Potato 1.50 1,425.00 950.00 4 Radish 9.00 7,830.00 870.00 5 Onion 2.20 1,485.00 675.00 6 Chili 11.00 9,625.00 875.00 7 Paddy 313.53 4,85,972.00 1,550.00 8 Maize 390.00 3,70,500.00 950.00 9 Millet 32 18,400.00 575.00 10 Buckwheat 3.00 1,290.00 430.00 11 Mustard 15.50 5,425.00 350.00

Figure 11: Dairy products and eggs

34

Business Opportunity Scanning and Validation The Gewog is located in the sub-tropical climate zone, favourable for horticulture, fodder and livestock rearing, and agriculture farming. The subtropical climatic condition presents an opportunity for growing vegetables during the winter season. Further, timely and adequate rainfall favours quick growth of hard wood trees that has high commercial value. The following business opportunities are identified for the Gewog. Production Volume of Rice, Betel Nut, Ginger and Chili In terms of the volume of vegetable production in Langchenphu Gewog, ginger and chili, are produced in commercially viable quantities with better yield over of other vegetables (see Table 31). Amongst the cereal crops, paddy and maize give better yield per acre. Given the total dry land of 777.75 acres in the Gewog, cultivation of high yielding vegetables is commercially viable. Furthermore, the FGD informed that the Gewog is committed to emphasize on the vegetable production, especially ginger. Amongst the cereal crops, FGD informed that farmers are keen in rice production. Export-Import Table 31: Export and Import Statistics of Chili, Ginger and Areca nut

Items


Qty (KGM)

Value (Nu.)

Qty (KGM)

Value (Nu.)

Qty (KGM) Value (Nu.)

Chilies 1,820,844.6 48,049,825 23,580 569,855 1,797,265 47,479,970 Ginger 120.2 7,840 1,226,401 35,979,970 -1,226,281 -35,972,130 Areca nut

933,011.9 59,110,896 932,178 25,639,458 834 33,471,438.5

Source: Bhutan Trade Statistics, 2013 As shown in Table 31, areca nut and chili show a trade deficit while ginger in total has a trade surplus of Nu. 35,972,130.00. Ginger is cultivated as the main cash crop, where the export is facilitated through auction yards in Samdrupjongkhar and Phuntsholing

35

Table 32: Import and Export Statistics of Rice

Items


(KGM) Value (Nu.)

Qty (KGM

)

Value

(Nu.)

Qty (KGM)

Value (Nu.)

Rice in husk

2,86,261.30 5,415,032 1,200 35,000

2,85,061.30

5,380,032

Rice husked

4,643,8003.47

1,061,331,549

0 0 46,438,003

1,061,331,549

Red Rice 3,250.00 93,600 0 0 3,250 93,600 Semi-milled rice

23,447,258.75

460,471,608

0 0 23,447,259

460,471,608

Broken rice

2,414,184.33

33,887,493 0 0 2,414,184 33,887,493

Source: Bhutan Trade Statistics, 2013 Rice being the staple food for t h e Bhutanese, there is a huge trade deficit of Nu. 15, 611,95,782.00 (see Table 6, b). Export is insignificant in terms of both quantity and value. Market Considering the trade deficit pertaining to areca nut and chili, the crops have reliable local and national markets. FDG informed that other varieties of vegetables such a radish, onion and beans are sold in the local market. Production Volume of Dairy Products With an increased rearing of cross-breed jersey cows and pure jersey cows in the Gewog, annual milk, cheese and butter production has increased. The total volume of milk production in 2012 was 41646 litres, 1055 kg of cheese and 815 kg of butter and it has increased to 55760 litres of milk, 985 kg of butter and 1,757.5 kg of cheese. See the tables below for the detailed information: Table 33: Seasonal Calendar

Sl. No.

Activities Bhutanese Calendar Month 1 2 3 4 5 6 7 8 9 1

0 11

12

1 Potato Cultivation X

2 Potato Harvesting X X

3 Chili Cultivation X

X

X X

36

4 Wheat Cultivation

X X

5 Barley Cultivation X X X X

6 Turnip and Mustard

X X

7 Leaf litter collection

X

8 Firewood collection

X X X

9 Bamboo Harvesting

X X

10 Timber X X

Table 34: Fruit Crop Production as of 2013

Sl. No.

Fruit crop Total trees

Bearing trees

Production (kg)

Average yield(kgs/tree)

1 Areca nut 26,720

13,216 1,71,808 13 2 Mandarin 8,255 2,813 1,40,650 50 3 Banana 3,800 673 6,057 9 4 Guava 307 248 3,348 13.5 5 Peach 97 80 1,280 16 6 Litchi 930 13 1,625 125 7 Mango 630 23 1,909 83 8 Papaya 48 30 390 13 9 Pear 7 6 138 23 10 Pomegranat

e 17 13 117 9

11 Jackfruit 45 20 1,300 65 12 Coconut 105 76 1,216 16 13 Pineapple 1,590 130 104 0.8

Table 35: Major Crops Cultivated area, Production and Yield

Cereal Crop (2013) S.N Commodity Area (acres) Production

(kgs) Yield (kgs/acre)

1 Paddy 314 4,85,972 1,550 2 Maize 390 3,70,500 950 3 Millet 32 18,400 575 4 Buckwheat 3 1,290 430

37

Table 36: Major Vegetables Cultivated Area, Production and Yield

Table 37: Meat production

Vegetables (2013) Area (Acre)

Production (kgs) Yield (kgs/acre)

Ginger 33 64,350 1,950 Turmeric 4.5 4365 970 Potato 1.5 1,425 950 Radish 9 7,830 870 Beans 2,790 Rajma bean 890 Mung bean 932 Soybeans 145 Pea 680 Carrot 640 Onion 2.2 1,485 675 Garlic 323 Tomato 635 Cabbage 828 Cauliflower 765 Chili 11 9,625 875 Green leaves 905 Gourds 1,290 Pumpkin 1,432 Egg plant 1,095 Collocacia 2,987 Cassava 1,350 Cucumber 685

Meat Products (kg)

2011 2012 2013

Pork 1,508 1,508 340 Beef 100 100 0 Mutton 1,101 1,101 75 Chicken 739 739 0 Yak meat 0 0 0 Fish 11,800 1,750 14,892

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Table 38: Dairy products

Dairy Products 2011 2012 2013 Milk 40,555 41,646 55,760 Butter 825 815 985 Cheese 1,045 1,055 1,757.5 Egg 15,815 15,755 12,392

Table 39: Export and Import Statistics of Dairy Products and Eggs

Source: Bhutan Trade Statistics, 2013 Table 39 shows trade deficit in dairy products and eggs that amounts to more than Nu.247 million. Market The trade deficit in dairy products at national level indicates that dairy production has a potential business opportunity and the Gewog, with a favourable dairy farming culture, could exploit this potential. FDG informed that limited shelf life of milk and small local market deters the marketability of fresh milk but the processed butter and cheese will mitigate the trade deficit problem in the country. Vegetables are cultivated as both summer and winter crops or relay cropping i.e. after the harvest of paddy. Whatever they produce, they sell in local market and they cannot export because the Gewog is located near the border and the farmers face stiff competition in terms of price.

Items


(KGM) Value (Nu.) Qty

(KGM) Value (Nu.)

Qty (KGM)

Value (Nu.)

Milk & Cream

26,83,509 1,24,061,554 0 0 26,83,509 1,240,61,554

Butter (Fresh)

6,374 18,84,975 0 0 6,374 18,84,975

Butter (Processed)

3,01,618 6,38,62,650 0 0 3,01,618 63,862,650

Butter (Other)

84,619 98,91,554 0 0 84,619 98,91,554

Cheese (Fresh)

21,976 37,05,337 360 54,000 21,616 36,51,337

Cheese (grated or powdered)

1,000 3,43,427 0 0 1,000 3,43,427

Cheese (Other)

1,68,107 42,833,668 620 67,000 1,67,487 4,27,66,668

Eggs 9,585 13,12,330 0 0 9,585 13,12,330

39

Challenges Farmers are not able to market their surplus agriculture produces The farmers usually lack capital to invest in farm mechanization. Fund mobilization and repayment is beyond their capacity. The Gewog center explores ways to organize farmers into groups and cooperatives to avail group scheme borrowing facilities from financial institutions. In addition, it shall explore ways to secure borrowings through Micro Initiative Fund and Business Opportunity Fund and other similar micro-credit schemes. The marginal producers are facing marketing problem. In order to secure markets for the products, the Dzongkhag emphasizes on organic farming and quality of products. Farm mechanization shall be promoted to improve land productivity and tackle labor shortages. Human-wildlife conflict The scattered and remote rural settlements hinder the efficient and cost effective delivery of socio-economic services to the people. The Gewog is located in the wildlife sanctuary and this is the major challenge. Crop damage by wild animals has resulted in farmers stopping cultivation of particular crops altogether, or moving to other parts of the country in search of non-farming work. Opportunities identified for the production Under the agriculture sector, ginger is identified as the viable business opportunity due to the following reasons: (a) ginger has favorable market in India organized through auction yard in Samdrupjongkhar and Phuntsholing and (b) ginger can be preserved longer than many other vegetables. A variety of other vegetables production provides viable business opportunities for the farmers in the Gewog, namely chili and turmeric. Owing to trade deficit, vegetables production will substitute import and improve the balance of trade. Under the livestock sector, dairy products and eggs are viable business opportunities and help in minimizing imports. Since milk production is non-seasonal, milk-processing firm under small-scale industry is a viable opportunity. Milk processing with better packaging of dairy products is also seen as a manufacturing opportunity for value addition and better marketing.

40

LAURI GEWOG

41

Gewog Profile Lauri Gewog is the most far-flung and remote Gewog in the Dzongkhag, officially three days away from the Jomotshangkha Dungkhag. It is accessible only by mule tracks and footpath. The farm road is under construction. The Gewog shares border with Arunachal Pradesh, India. Lauri Gewog has 16 villages with 543 households. Lauri Gewog has mostly dry-land which favours maize cultivation and it is the main staple crop. The other crops like paddy, upland paddy, millets, mustard, legumes, buckwheat and potato are grown in this Gewog on a small scale. Infrastructure and facilities The Gewog has five Chiwogs and all are accessible by 22.2 km farm road. The Gewog has one BHU and four outreach clinics. There are three primary schools and three non-formal education centers. Chiwog Level Profile

Table 40: Chiwog Level Profile for 2014

Sl. No.

Chiwogs Name of villages

Total HH

1 Momring Momring 22 Rainang 117 Phajo Gonpa 20

2 Lauri Lauri 134 Wongthi 23 Gawaling 14

3 Tshothang Tshothang 35 Raishuthang 25

4 Dungmanma Dungmanma 39 Beptshiling 20 Merangchenmu 47

5 Zangthi Thaiphu 10

Tashiphu 22 Serjung 36 Gongthong 38 Zangthi 5

Existing Resource Inventory, 2014 Agriculture, Livestock and Forest Products The major cereal crop cultivated is maize. Maize production is barely sufficient for household consumption. The farmers depend on sale of milk and some other vegetables. Mandarin is grown in all the Chiwogs. In all the Chiwogs, cattle are raised for dairy products. The people

Figure 12: Lauri Gewog Map

42

mostly raise local-breed cattle owing to easy adaptability to native conditions. The Gewog has one-community forest and six private forests. The government’s environment conservation policy allows harvesting forest resources in a sustainable approach. Non- wood forest product like mushroom is also available but the collection is restricted to household consumption only. The Gewog also has many medical herbs such as Chirata, Laniru, Clove and Thokaimom. Land Size in acres Table 41: Land size in Acres

Types of Land Acres Dry Land 1,925.19 Wet Land 24.04 Pangzhing 77.29 Open Grazing Land 15.00 Sogshing 117.84 Cardamom 0.60 Community Forest 1.00 Private Forest 6.00

Source: Dzongkhag Profile, 2014 Business Ideas generated from Profiling, Focus Group Discussion and Key Informant Interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts. Under agriculture sector, almost all the Chiwogs cultivate maize, paddy upland paddy and some vegetables. Pears and walnut are grown in all the Chiwogs except Lauri Chiwog. In Lauri Gewog, the people raise local-breed cattle for dairy products which are produced for domestic consumption. In Momring Chiwog, the people have poultry and piggery farms. The forest products are managed through community forest. Lauri Gewog is also known for non-wood forest products like Chirata and Laniru except in Dungmanma Chiwog. The arts crafts skill is confined to basic wood works. Table 42: Business Ideas Generated from FGD and KI

Chiwog Agriculture Livestock Forest Arts & Craft

Horticulture

Momring Maize*, potato, vegetables, chili*

Diary (Plan), Poultry* Piggery*

Chirata, Laniru, Clove, Thokaimom

Pears*, Peach, Andrae, Plum, Walnut

Lauri Maize*, chili*, potato*, Liguims

Diary (Plan), poultry (plan), piggery(plan), fishery (plan)

Laniru, Chirata

Cardamom(Plan) Mandarin* Hazelnut (Opp)

Tshothang Maize*, mustard*, potato*, vegetables

Diary Laniru, Chirata

Pear, Cardamom (Plan), Walnut

Dungmanma Maize*, ginger, potato, chli*, pea*, garlic*

Diary *, piggery

Clove, Thokaimom

Mask, Scalfing (stone)

Banana, plum, pear, walnut

Zangthi Paddy*, maize*, pea*, buckwheat, mustard

Diary Laniru, Chirata, Clove, Thokaimom

Pear, apple(Opp), walnut

Productivity of Cereal Crops Maize and barley top in terms of yield per acre and paddy ranks the second. Farmers prioritize the production of maize over paddy because of climatic conditions and multiple- usability. Millet, wheat and buckwheat production

43

Productivity of Vegetables


are low compared to barley, paddy and maize. Millet and buckwheat are produce mainly for domestic consumption.

Figure 13: Productivity of Major Crops

The trend in terms of yield and harvested area projects that potato produce is the highest. Potato ranks the highest production in 2011 compared to other vegetables in Lauri Gewog. The average annual production in 2011 was 885.20 MT. The main

reason behind increased production of potato is reliable demand. They export potato to India through auction yard. Variety of other vegetables as turnip, radish, chili, broccoli, carrot, tomato and asparagus are produced in small quantities for domestic consumption and local market. Production of Meat

44

Meat Production The annual average production of beef has increased from 7,150 kg in 2012 to 10,000 kg in 2013. Average production of pork is reduced to 150 kg in 2013 form 4,300 kg in 2012. Productivity of Dairy Products and Egg The annual milk production for three consecutive years shows an increase in milk production. The maximum milk production is recorded in 2013. There is also corresponding increase in the production of butter and cheese. The production of eggs has slightly decreased in 2013.

Production Model Farming is fundamentally practiced at an individual household level and some in groups. Farmers practice a complex farming system where, land is used for multiple cropping and livestock farming. The forest resources are shared through community forest. There is one community forest and six private forests registered under the Gewog.

Figure 15: Productivity of Dairy Products and Egg

45

Table 43: Comparative Analysis of Crops

Lauri Gewog Sl. No Crops Area (Acres) Production (MT)

1 Potato 373.31 885.203 2 Turnip 0.00 0.00 3 Paddy 187.00 199.00 4 Maize 1,461.20 2,422.00 5 Chilli 171.37 528.11 6 Cabbage 121.24 48.23 7 Cauliflower 70.21 24.19 8 Broccoli 44.50 14.79 9 Asparagus 2.67 4.65 10 Tomato 22.74 5.07 11 Carrot 8.90 2.03 12 Radish 232.19 274.59 13 Others 377.76 00.0 14 Buckwheat 863.50 566.00 15 Wheat 191.90 182.00

Business Opportunity Scanning and Validation Production Volume of Chili, Radish and Potato In terms of the volume of vegetable production in Lauri Gewog, chili, potato and radish are produced in large quantity over of other vegetables. Amongst the cereal crops, although maize gives better yield per acre, value per acre is more than 50% less than paddy. Given 1,925.19 acres of dry land under in the Gewog, cultivation of high yielding vegetables has competitive advantage. Furthermore, the FGD informed that the Gewog is committed to emphasise on the vegetable production, especially potato. Amongst the cereal crops, FGD informed that farmers are keen in rice production. However, limited wet land of 24.04 acres constraints paddy cultivation and vegetables production is found a commercially viable alternative. Export-Import Table 44: Export and Import Statistics of Potato, Chili and Radish

Items Import Export Trade Gap

Qty (KGM)

Value (Nu.)

Qty (KGM)

Value (Nu.)

Qty (KGM)

Value (Nu.)

Potato Seeds

3650 33250 10250 225500 -6600 -192250

Potao (other)

5278946 56758121 21861004 359905481 -16582058 -303147360

46

potato frozen

0 0 12350 170200 -12350 -170200

Chili Fresh 1820845 48049825 23580 569855 1797265 47479970 Chili Dried 384277 27090829 0 0 384277 27090829 Chili crushed

73789 8928775 0 0 73789 8928775

Radish 5,934.00 76,190 55,160 986,910 -49,226.00 -910,720 Source: Bhutan Trade Statistics (2013) As shown in Table 44, chili has a trade deficit while potato and radish in total has a trade surplus of Nu. 304420530.00. Potato is cultivated as the main cash crop where the export is facilitated through auction yards in Samdrupjongkhar and Phuntsholing by Food Corporation of Bhutan. Some farmers directly sell their products to nearby Indian market. Production Volume of Dairy Products With an increased rearing of crossbreed jersey cows and pure jersey cows in the Gewog, annual milk, cheese and butter production has increased (see Appendices). The total volume of milk production in 2012 was 1,25,540 litres, 54,73 kg of cheese and 6,308.75 kg of butter and it has increased to 1,49,666 litres of milk, 74,66.75 kg of butter and 11,232.1 kg of cheese. See the tables below for the detailed information: Table 45: Seasonal Calendar


Potato Cultivation

X

Potato Harvesting

X X

Chili Cultivation X X X X Wheat Cultivation

X X

Barley Cultivation

X X X X

Turnip and Mustard

X X

Leaf litter collection

X

Firewood collection

X X X

Bamboo Harvesting

X X

Timber X X

47

Table 46: Major Vegetables Cultivated Area and Production

Table 47: Productivity of Cereal Crops Crops Cereals Yield (kg/acre) Paddy 1,062.00 Maize 1,658.00 Wheat 947.00 Barley 1,680.00 Buckwheat 656.00 Millets 733.00 Table 48: Meat Production

Vegetables Area (Acres) Production (MT) Potato 373.31 885.20 Turnip 00.0 0.00 Paddy 187.00 199.00 Maize 1,461.20 2,422.00 Chilli 171.37 528.11 Cabbage 121.24 48.223 Cauliflower 70.21 24.19 Broccoli 44.50 14.79 Asparagus 2.67 4.65 Tomato 22.74 5.07 Carrot 8.90 2.03 Radish 232.19 274.59 Others 377.76 0.00 Buckwheat 863.50 566.00 Wheat 191.90 182.00

Meat Products 2011 2012 2013 Pork 4,300.00 4,300.00 150.00 Beef 7,150.00 7,150.00 10,000.00 Mutton 0.00 0.00 0.00 Chicken 2.50 2.50 0.00 Yak meat 200.00 200.00 0.00

48

Table 49: Dairy Products and Eggs

Products 2011 2012 2013 Milk 75,062.00 1,25,540.00 1,49,666.00 Butter 4,153.00 6,308.75 7,466.75 Cheese 5,459.00 5,473.00 11,232.10 Egg 30,875.00 30,875.00 15,099.00

Table 50: Export and Import Statistics of Dairy Products

Items


(KGM) Value (Nu.) Qty

(KGM)

Value (Nu.)

Qty (KGM)

Value (Nu.)

Milk & Cream

26,83,509 12,40,61,554

0 0 26,83,509

12,40,61,554

Butter (Fresh) 6,374.00 1,884,975 0 0 6,374 18,84,975 Butter (Processed)

301,617.79

63,862,650 0 0 3,01,618 6,38,62,650

Butter (Other) 84,619.04 9,891,554 0 0 84,619 98,91,554 Cheese (Fresh)

21,976.16 3,705,337 360 54,000

21,616.2 36,51,337


1,000.00 3,43,427 0 0 1,000 3,43,427

Cheese (Other)

168,106.83

42,833,668 620 67,000

1,67,487 4,27,66,668

Source: Bhutan Trade Statistics, 2013 Table 45 shows trade deficit in dairy products and eggs which amounts to more than Nu. 47 million. Market As the Gewog does not have farm road connectivity, the farmers sell their farms products to civil servants who reside in their Gewog. The nearest local market is at distance of 3 to 4 hours by foot. With road connectivity in near future, Gewog has opportunity to sell their products in Jomotshangkha town and in Samdrupjongkhar market.

49

Challenges Lack of Road Connectivity Lauri Gewog is the most remote Gewog under Samdrupjongkhar Dzongkhag and the farmers face challenges for transporting their surplus farm produce to the market. The construction of the farm road is under process.

Fragmented Landholdings The Gewog’s initiatives for cash crop and commercial farming are constrained by small and fragmented land holdings and farm labour shortages.

Lack of Electricity Lack of electricity in the Gewog is another major setback in the farm productivity. Human-wildlife Conflict The scattered and remote human settlements hinders the efficient and cost effective delivery of socio-economic services to the people. They also face with the challenges of wild animals and pests which destroy their crops. Opportunities Identified Commercial Production The production of chili, potato and radish can be increased considering its current price and assured market opportunities in the Indian border town of Jomotshangkha. Further, huge import for chili (Trade statistics, 2013), confirms a reliable market potential and viability for commercial production. The production of potato and radish show trade surplus. Dairy products and eggs are viable business opportunities and help in minimizing imports. Since milk production is non-seasonal, milk-processing firm under small-scale industry is a viable opportunity. Milk processing with better packaging of dairy products is also seen as a manufacturing opportunity for value addition and better marketing.

50

MARTSHALLA GEWOG

51

Martshalla Gewog Profile Martshalla Gewog is located at a distance of approximately 30 minutes by car from the, highway. The Gewog has 23 villages with 533 households. The total area of the Gewog is 308.49 square kilometers and is bordered by Kangpara Gewog of Trashigang Dzongkhag in the north, Gomdar Gewog in the west, Serthi Gewog in the east and Phuntshothang Gewog in the south. The undulating nature of topography and the sparse settlement has been one of the constraints in bringing up developmental activities. The Gewog is situated in the sloped area under sub-tropical climate with altitude ranging from 280 to 2,500 meters above the sea level. Since the Gewog falls within the Chirapunji Mountain Range, it gets an annual average rainfall of 1,500 mm. The soil is dominantly sandy loam type. Martshalla Gewog lies mainly on dry land. Maize is cultivated as the staple crop in the Gewog in Kamzhing and Pangshing/Tseri. The other crops like paddy, millets, mustard, legumes and buckwheat are cultivated in Gewog on a small scale. Infrastructure and facilities The Gewog has six Chiwogs which are accessible by farm road from Tsangchuthama. The Gewog has a basic health unit and six outreach clinics. There are three community primary schools and a middle secondary school established across the Chiwogs. There are three non-formal education centers. About 97% of the settlements in the Gewog are well electrified. Table 51: Chiwog Level Profile

Sl. No Chiwogs Name of villages Total HH

1 Martshalla

Gorthongma 41 Thrizor 29 Martshalla 46 Kakpadung 46 Dungmanba 3

Figure 16: Martshalla Gewog Map

52

Existing Resource Inventory, 2014 Agriculture, Livestock and Forest Products The major cereals cultivated are maize and paddy. Maize and paddy cultivation are barely sufficient for self-consumption. The farmers in these villages mainly depend on sale of mandarin, potato, ginger and some other vegetables. All Chiwogs raise poultry in their backyard farms. The Gewog has three-community forest and thirteen private forests. The government’s environment conservation policy allows harvesting forest resources in a sustainable approach. Table 52: Land Size in Acres

Types of Land Acres Dry Land 2,581.37 Wet Land 143.18 Mandarin Orchid 47.44 Community Forest 3.00 Private Forest 13.00

Source: Dzongkhag profile, 2014

2 Sarjung Sarjung 49 Shemshem 29

3 Tshotsalo

Thongpashing 15 Rawshing 5 Tshotsalo 27 Sozor 6 Lungbagtang 3

4 Keptang

Richanglo 26 Tsholingkhar 48 Pelrithang 5 Keptang 10 Dingshingzor 27

5 Galingkhar Khaling dan- 12 Galingkhar 17 Wangphu 20

6 Kakani Kakani 30 Chodung 21 Chongmashing 18

53

Business Ideas generated from Profiling, Focus Group Discussion and Key Informant Interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts. Under agriculture sector, all the Chiwogs grow maize, potatoes and mustard. Ginger is mostly cultivated in Martshalla, Sarjung and Kakani Chiwogs. Mandarin is grown in all the Chiwogs except Keptang Chiwog. All the Chiwogs have improved-breed layers except in Martshalla Chiwog. Martshalla Chiwog raises cattle and piggery. Table 53: Business Ideas Generated through FGD and KI

Chiwogs Agriculture Livestock Forest Horticulture

Martshalla Sugarcane (Plan) Paddy* Ginger* Maize*

Diary*, Piggery*

Mandarin*

Sarjung

Maize*, Mustard*, Potato*, Ginger*

Diary (Plan), Poultry (Plan) Piggery (Plan) Fishery (Plan)

Laniru Cardamom (Plan) Mandarin* Hazelnut (Opp)

Tshotsalo Maize*, Mustard*, Potato*, Vegetables

Diary (Plan), Poultry*

Mandarin*, Cardamom (plan)

Keptang Maize*, Mustard*, Potato*, Vegetables*

Diary (Plan) Nursery Laniru

Hazelnut (Opp), Cardamom (plan)

Galingkharhar

Paddy*,Maize* Mustard*, Potato*

Diary (Plan), poultry*

Laniru Mandarin*, Hazelnut (Opp), Cardamom (Plan)

Kakani

Maize*, Mustard*, Potato*, Ginger*

Diary (Plan), Poultry*, Piggery, Fishery (Plan)

Laniru, Piplu

Apple (Opp), Mandarin* Hazelnut (Opp)

54


Pote

ntia

l to

prod

uce H

igh


Med

ium

L

ow

Maize, millet Paddy Low Medium High

Potential Market Demand The product attractive matrix a b o v e projects Dairy Products, Areca nut and ginger t o have potentially high demand and production in commercially viable quantity.

The annual average production paddy ranks top in the year 2011 with 1491kg. The farmers prioritise the production of paddy over maize for two reasons: firstly, rice is a staple crop and secondly, relative price of rice over maize is high. Maize ranks the second in Martshalla Gewog with annual average 1103kg in the year 2011. Barley and buckwheat are produced in small quantities.


55

Potato is the main vegetable with highest annual average yield of 473.944 kg in 2011. The farmers engage in commercial farming on a wide variety of vegetables but Martshalla Chiwog is mainly focusing on producing potato. Other vegetables like chili, cauliflower and radish are cultivated for self-consumption. Meat Production Figure 19: Meat Production

Annual average production of beef is the highest with 1,100 kg in 2013, followed by pork with 725 kg. People of Martshalla produced more beef and pork because of good price and demand.


56

The annual milk production for three consecutive years shows an increase in milk production due to addition of milch cows, dominantly crossbreed jersey. In 2013, milk production was 3, 40,363 L and 1, 47,738 dozens of eggs. Production Model Agriculture farming is fundamentally carried out at individual household level. The available land per household is used for complex farming – cultivating variety of crops as well as livestock farming. However, for the production of commercially viable quantity, farmers follow cooperative model for the cultivation of vegetables, and production of dairy products and eggs. Table 55: Comparative Analysis of Crops in terms of Area Cultivated and Production, 2011

Martshalla Sl. No Crops Area (Acres) Production (MT)

1 Potato 195.53 473.94 2 Chilli 135.34 53.29 3 Paddy 185.30 276.00 4 Maize 710.80 784.00 5 Cabbage 36.99 6.02 6 Cauliflower 25.22 14.96 7 Barley 28.60 11.00 8 Buckwheat 159.90 73.00 9 Broccoli 10.09 0.76

Figure 20: Dairy Products and Eggs Production

57

10 Asparagus 0.00 0 11 Tomato 11.77 0.72 12 Carrot 13.45 1.26 13 Radish 171.66 55.39 14 Turnip 0.00 0 15 Others 339.95 50.97

Business Opportunity Scanning and Validation Production Volume of Potato and Radish In terms of both production volume and yield, potato and radish are better over other vegetables in Martshala Gewog (see Table 55). Amongst the cereal crops, paddy and maize give better yield per acre. With 2581.37acres of dry land in the Gewog, cultivation of high yielding vegetables has competitive advantage. Amongst the cereal crops, FGD informed that farmers are keen in rice production. However, due to lack of reliable irrigation facilities, paddy cultivation is constraint. Export-Import

Table 56: Export and Import Statistics of Potato and Radish

Import Export Trade Gap Sl. No.

Items

Quantity

Value (Nu.)

Quantity

Value (Nu.)

Quantity

Value (Nu.)

1

Potato Seeds

3,650

33,250

10,250

2,25,500

-6,600

-1,92,250

2

Potato (Others)

52,78,946

5,67,58,121

2,18,61,004

35,99,05,481

-16582,058

-30,31,47,360

3

Potato Frozen

0

0

12350

1,70,200

-12350

-1,70,200

4 Radish 5,934.00 76,190 55,160 9,86,910 -49,226.00 -9,10,720 Total 52,88,530 5,68,67,561 2,19,38,764 36,12,88,091 -1,66,50234 -30,44,20,530 Source: Bhutan Trade Statistics, 2013 As shown in Table 56, both potato and radish has a trade surplus of Nu. 30,44,20,530.00. Potato is cultivated as the main cash crop where the export is facilitated through auction yards in Samdrupjongkhar and Phuntsholing by Food Corporation of Bhutan. Some farmers directly sell their products to nearby Indian market. Production Volume of Dairy Products and Egg With an increased rearing of cross-breed jersey cows and pure jersey cows in the Gewog, annual milk, cheese and butter production has increased. The import of egg has been stopped and the farmers can now take advantage of local market and regional

58

market. The production of has increased drastically from past two years i.e., from 2011 and 2012. See the tables below for detailed information: Table 57: Seasonal Calendar

Sl. No Activities Bhutanese Calendar Month 1 2 3 4 5 6 7 8 9 10 11 12

1 Potato Cultivation X 2 Potato Harvesting X X 3 Chili Cultivation X X X X 4 Wheat Cultivation X X 5 Barley Cultivation X X X X 6 Turnip and Mustard X X 7 Leaf litter collection X 8 Firewood collection X X X 9 Bamboo Harvesting X X 10 Timber X X

Table 58: Productivity of Cereal Crops

Table 59: Production of Vegetables

Martshalla Vegetables Production (MT)

Potato 473.94 Turnip 0.00 Chilli 53.30 Cabbage 6.02 Cauliflower 14.96 Broccoli 0.76 Asparagus 0.00 Tomato 0.72 Carrot 1.26 Radish 55.40 Others 50.97

Crops Cereals Yield (kg/acre) Paddy 1,491 Maize 1,103 Wheat 0 Barley 400 Buckwheat 456

59

Table 60: Production of Meat

Sl. No. Meat Products 2011 2012 2013

1 Pork 135.00 135.00 725.00 2 Beef 0.00 0.00 1,100.00 3 Mutton 0.00 0.00 0.00 4 Chicken 3.00 3.00 0.00 5 Yak meat 0.00 0.00 0.00 6 Fish 0.00 0.00 0.00

Table 61: Dairy and Egg Products

Sl. No Products 2011 2012 2013

1 Milk Produce 234,560.00 235,520.00 340,363.00

2 Butter 11509.00 11539.00 14665.00 3 Cheese 20573.00 20803.00 27726.00 4 Egg 13452.00 13452.00 1,47,738

Table 62: Export and Import of Dairy Products and Eggs


Items Qty Value (Nu.) Qty Value (Nu.) Qty Value (Nu.)

Milk & Cream

2,683,509

124,061,554 - - 2,683,509

124,061,554 Butter (Fresh) 6,374 1,884,975 - - 6,374 1,884,975

Butter (Processed) 301,618 63,862,650 - - 3,016,178 63,862,650 Butter (Other) 84,619 9,891,554 - - 84,619 9,891,554

Cheese (Fresh) 21,976 3,705,337 360 54,000 21,616 3,651,337


1,000 343,427 - - 1,000 343,427

Cheese (Other) 168,107 42,833,668 620 67,000 167,487 42,766,668

Eggs 9,585 1,312,330 - - 9,585 1,312,330

Total 247,895,495

1,21,000

32,75,808

247,774,495 Source: Bhutan Trade Statistics, 2013

60

The dairy products and eggs have huge trade deficit as shown in the table 57 which is valued at Nu. 247.77 million. Market As indicated by the trade deficit in dairy products, the Gewog has market potential. FDG informed that limited shelf life of milk and small local market deters the marketability of fresh milk but the processed butter and cheese will mitigate the trade deficit problem in the country. Vegetables are cultivated as both summer and winter crops or relay cropping i.e. after the harvest of maize and paddy. The surplus produce is sold in the local market and sometimes they sell to school and to army personnel. Challenges Lack of roads/markets Accessibility to roads ensures efficient and cost effective transportation of agricultural inputs and products to the markets. However, some of the place is still face the problem transportation because of the lack of reliable farm road connectivity. Human-wildlife Conflict The people face the problems of wild animals and pests intrusion into the farmlands. Annually, about 30% of crop loss, mostly maize is due to wild boar, elephants, and monkeys. Opportunities Identified Commercial Production The production of potato and radish can be increased considering its current price and assured market opportunities. Dairy products and eggs production are viable business opportunities and help in minimizing imports. Since milk production is non-seasonal, milk-processing firm under small-scale industry is a viable opportunity. Milk processing with better packaging of dairy products is also seen as a manufacturing opportunity for value addition and better marketing.

61

ORONG GEWOG

62

Gewog Profile Orong Gewog is located in the northern part of Samdrupjongkhar Dzongkhag. It has a total area of 179.03 Sq.km with elevation ranging from 900 m to 2,500 meters above sea level (MASL). It experiences a sub-tropical climate and is covered with broad-leaf evergreen forest. The topography of the Gewog is rugged and vulnerable to surface erosion. The Gewog share its border with Wangphu Gewog in the east, Pema Gatshel Dzongkhag in the west, Gomdar Gewog in the north and Dewathang Gewog in the south respectively. The Gewog has a total population of 4918 and 474 registered households. It has 24 sparsely settled villages (Orong Gewog Profile, 2014). Infrastructure and Facilities Orong Gewog has good access to health and education facility. It has one Basic Health Unit and four Outreach Clinic (ORC), one Higher Secondary School, Lower Secondary School and one Community Primary School with 11 NFE centers and one RNRC. The Gewog is also connected with mobile network and electricity facilities. Every household in the Gewog has access to safe drinking water. The Gewog centre is connected with 12 Kms. farm road which is connected to main Samdrupjongkhar-Trashigang highwayThe farthest village is Thungshing and Pheluma which is around 6 to 5 hours walk respectively from the nearest road point. Gewog has total of 45 Kilometer farm road and 50 Kilometer Highway (Samdrup Jongkhar-Trashigang Highway (Orong Gewog Profile, 2014) Table 63: Primary Land Use in the Gewog

Types of land Acres Chuzhing 66.05 Kamzhing 1843.90 Khimsa 44.60 Pangzhing 549.60 Mandarin Orchard 33.80 Total 2,537.90

Source: Dzongkhag Website, 2015

Figure 21: Orong Gewog Map

63

Existing Resource Inventory Agriculture, Livestock, Forestry, Arts and Craft and Horticulture The Agriculture is a main backbone of the Gewog and majority of the people grow maize and it is grown twice a year. Besides maize other cereal crops like Buckwheat and Foxtail millet are also grown in the Gewog. Vegetable is also grown widely cultivated in the Gewog and there are around three vegetable cooperatives groups in the Gewog. Main vegetable grown are Beans, Chili, Potato, Sengji and Cucumber. Every Chiwog has formed Dairy Group which mainly sells milk to Samdrupjongkhar town and border town of India (Daranga). Many households in the Gewog own high breed jersey cows and dairy farming has a huge impact on the income of rural farmers. In terms of horticulture Mandarin grown in all the Chiwogs and other tropical fruits like Banana and Jackfruits are also grown in some Chiwoga.Non wood Forest Products popularly found in the Gewog are Rashu, Ringshu, Patsha, Ngashingjorma, Mushroom, Damru, Fernn Bamboo and Tholomom. It is claimed that Philooma_Naber Chiwog has limestone deposit and Rimong Chiwog has slate deposits. Table 64: Livestock and Farmer Cooperative Groups in the Gewog

Sl. No. Livestock Facilities Numbers 1 Improved Pasture (Acreage) 251 acres 2 Artificial Insemination Center 1 4 Poultry Backyard Farm 11 8 Dairy Group 5 11 Total Farmers’ Group 2

Source: Orong Gewog Profile and FGD, 2014 Table 65: Business Ideas Generated through FGD and KI

Chiwog Agriculture & Horticulture

Livestock

Forestry Arts & craft

Rimong Maize, ginger, vegetables, sengji, Mandarin, banana

Dairy Ringshu, Ngashingjorma, Broomstick, Bamboo

Jangchubling Maize, Ginger, Groundnut, Soya Bean, Beans, Pea, sengji, Mandarin, banana, jackfruit

Dairy Ringshu, Fern, Mushroom, Damru, Tholomom

Bamboo Craft

Nagzor_Wooling Maize, Vegetables, Ginger, Potato, Beans, Mandarin

Dairy Ringshu Weaving

64

Bilam_Orong Maize, vegetables, ginger, chili, Mandarin, banana, jackfruit

Dairy Mushroom, damru

Bamboo craft

Nabar_Philooma Maize, buckwheat, vegetables, chili, Mandarin

Poultry, piggery

Ringshu, cane, patsha, bamboo

Bamboo Craft

Morong Maize, buckwheat, vegetables, fox millet, potato Mandarin, Banana, Pear, Peach, persimmon

Dairy Rashoo, Damru, Fern, Mushroom, Ngashingjorm a

Bamboo Craft

There were 10 participants in the Focus Group Discussion (FGD) and they were the Mangmi, Gewog ADM, Geydrung, five Tshogpas and two farmers. As shown in Table 1.3, discussions were held on five areas; Agriculture, Livestock, Forestry, Arts and Crafts and Horticulture. Participants were asked to identify the potential in production and viable business opportunities in these five sectors and also asked to point out the challenges. Besides these five sectors participants were also asked what are the potential mineral deposits existing in the Gewog. Table 66: Attractiveness Matrix

Pote

ntia

l to

prod

uce

Hig

h

Maize Dairy products, ginger, vegetables, Rashoo & Ringshsu

Med

ium

Fern & mushroom Mandarin, banana

Low

Low Medium High Potential market Demand

Dairy cooperative groups have been very successful in the Gewog and people are already earning huge income from selling milk. Therefore, dairy farming has a potential business opportunity. Ginger and vegetables are also potential crops for commercialization since Gewog has favorable climate and market for these crops. Non-wood Forest Products like Rashoo and Ringshoo are also found to have potential for revenue generation. Business Ideas Generated During the FGD (Production and Manufacturing and Small & Cottage Industry) Milk Processing Unit It is claimed that Dairy cooperative under Orong Gewog has been most successful and an exemplary one. Milk production in the Gewog has increased over

65

the years and cooperatives have been marketing very well in the Samdrupjongkhar and border town Mela Bazar (Daranga). Dairy farming has become one of the major source of income in the Gewog. Therefore, FGD participants pointed out that milk processing unit is the most suitable. Production of Ginger Spices All the Chiwogs under Orong Gewog has huge potential of cultivating ginger and most of the Chiwogs are already producing ginger for commercial purpose. Currently farmers in the Gewog sell directly sell ginger to India. Therefore, majority of the FGD participants pointed out that in future Gewog can have a ginger-spices processing unit which can produce variety of spices and market it to India and within Bhutan. Kharang Processing Plant Maize is one of the top cereal crop grown in Orong Gewog and currently it is mostly grown for household consumption. Some people are selling maize grains but it was pointed out that they fetch very less price in the market and is not profitable. However, the demand for Kharang is growing especially in the schools, it was pointed out that Gewog can establish one Kharang processing unit and supply to schools. Market Orong Gewog is located adjacent to Samdrupjongkhar town (62km). It was pointed out that selling of milk in Samdrupjongkhar and Indian border town has not been a problem. Moreover people sell vegetables and other horticulture products easily in the town. Therefore, potential market for the above-mentioned products is Samdrupjongkhar town and Indian border town. Challenges Human-wildlife Conflict Wild pig, Monkey, and Deer are most problematic wild animals that destroy crops of farmers in Orong Gewog. Lack of Skills in handicrafts Although the Gewog has huge reserve of Non-wood forest products like Rashu and Ringshu which can be turned into highly priced bamboo products. However, FGD participants pointed out that people in the Gewog lack proper skills to make use of those NWFP.

66

PEMATHANG GEWOG

67

Pemathang Gewog Profile Pemathang Gewog is located at an altitude of 600 to 1,200 meters above sea level. It is a hanging plateau of southern foothills and it drops down to the Assam Plains. The Gewog has a total area of 76.54 square kilometres and is bordered by Phuntshothang Gewog in the West, Samrang Gewog in the East, Martshalla Gewog in the North and India state of Assam in the South. The Gewog experiences sub-tropical climate and heavy monsoon rains during June to September. Pemathang Gewog is under Samdrupcholing Drungkhag. The Gewog has 15 villages and 301 households. Pemathang Gewog has 5 Chiwogs. Pemathang Gewog consists of mainly wetland in terms of land use pattern. The soil types are mainly sandy and clayey loam and it is good for agriculture. Paddy is the staple of the Gewog and it is widely cultivated in 957.07 acres of wetland. The local scented variety of rice known as Khamtey is also grown in the Gewog. The lower part of the Gewog has potential for double cropping of paddy and maize. Infrastructure Facilities The Gewog has five Chiwogs and all are accessible by farm road of 7 kms. The Gewog has one BHU Gr. II and one-outreach clinic. The Gewog has one lower secondary school with 405 students and 16 teachers. There is one non-formal education center. With the support from UNDP, GEF, SGP, the Gewog plans to establish bio-gas plant. All the settlements are well electrified. There is a forest nursery which provides sapling to various institutions and communities during social forestry day. Chiwog Level Profile Corporation of Bhutan. Beside rice, the Gewog produces ginger and areca nut. Moreover, the people cultivate sugarcane for sale in the local market. Mandarin is

mostly grown in Userana Chiwog. Livestock farming has always been a major source of income and livelihood. In Userana, Chirtshosa and Metothang Chiwogs, the people mainly depend on diary, fishery, piggery and poultry. This is due to the geo-climatic and infrastructural conditions. The Gewog has achieved establishment of three-community forest and

Figure 22: Pemathang Gewog Map

68

twenty-five private forests. Non- wood forest product like mushroom is also available for self-consumption. The Chirtshosa Chiwog has a forest nursery which provides sapling to various institutions and communities during social forestry day. Table 67: Land Size in Acres

Types of Land Land size in acres Wet Land 975.07 Pangzhing 3,404.00 Tshesa 48.26 Developed Pastures 135.00 Mandarin Orchid 11.61 Community Forest 3.00 Private Forest 25.00 Source: Dzongkhag profile, 2011 Business Ideas Business ideas generated from Profiling, Focus Group Discussion and Key Informant interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts. Under the agriculture sector, paddy, ginger and areca nut are widely grown in all the Chiwogs. Mandarin is cultivated in Userana Chiwog. Userana, Chirtshosa and Metothang Chiwogs have fishery, dairy and poultry farms. Table 68: Business Ideas Generated from FGD and KI

Chiwogs Agriculture & Horticulture Livestock Forest Arts & craft

Pemathang Sugarcane (Opp), paddy*, ginger*, areca nut*, Guava, mango, peach, litchi

Diary (Plan)

Raling Paddy*, ginger*, betel nut*, Guava, mango, peach, litchi (Opp)

Diary (local)

Userana Paddy*, ginger*, sugarcane (Opp), Mandarin*, Pears*, guava, peach

Diary, fishery*, piggery*

Bangchung

Chirtshosa Paddy*, ginger*, Coconut, sugarcane*, guava, mango, peach

Diary*, poultry*

Nursery*

Metothang Paddy*, betel nut*, guava, mango, peach

Fishery* Poultry* (Meat)

69

Productivity of Cereal Crops Figure 23: Productivity of Cereal Crops

Paddy ranks top in terms of yield per acre and maize ranks the second (see Figure 1). Farmers prioritise the production of paddy over maize for two reasons: firstly, rice is a staple crop and secondly, relative price of rice over maize is high. Average price at the national level is Nu. 38.98 per kg of paddy and Nu. 14.53 per kg of maize (Agricultural statistics, 2012) while the cost of production is same for the crops. Millet and buckwheat production are relatively low compared to paddy and maize. Millet and buckwheat are produced mainly for personal use. Productivity of Vegetables

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Potato is the main vegetable with high yield ranging from 370 MT while other vegetables yield less than 50 MT. National average price in 2012 per kg of potato was Nu. 15.32 (Agricultural statistics, 2012). The people export potato to India and some are sold in the auction yard. Productivity of Meats Products Figure 24: Production of Meat

The annual average production of pork, chicken and beef has remained constant for three consecutive years. The production of mutton has increased during the year 2013. Figure 25: Dairy and Egg Production

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The highest produce of milk was recorded in 2012 but the production declined thereafter. The production of egg has increased over the years. Production Model Agriculture farming is carried out at individual household level. The available land per household is used for complex farming – cultivating variety of crops as well as livestock farming. However, for the production of commercially viable quantity, farmers follow cooperative model for the cultivation of vegetables, and production of dairy products and eggs.

Table 69: Comparative analysis of Crops in terms of Production and Yield

Pemathang Sl. No Crops Area (Acres) Production (MT)

1 Potato 106.76 385.804 2 Paddy 646.9 807 3 Chili 39.81 11.769 4 Cabbage 43.47 8.073 5 Cauliflower 19.39 12.146 6 Maize 97.0 98 7 Millet 32.6 14 8 Broccoli 3.06 0.204 9 Asparagus 0.00 0 10 Tomato 28.10 1.718 11 Carrot 3.06 0.163 12 Radish 69.47 6.576 13 Turnip 0.00 0 14 Others 136.90 256.05

Business Opportunity Scanning and Validation Production Volume of Rice, Areca nut and Ginger Rice has better yield over other crops (see Table 7 0 ). According to FGD, areca nut and ginger are largely grown in Pemathang Gewog. Furthermore, the FGD informed that the Gewog is committed to emphasise on vegetable production and sugarcane production. The Bhutan Trade Statistics (2013) show a trade deficit for areca nut but ginger has a trade surplus of Nu. 35,972,130.00. Ginger is cultivated as the main cash crop, where the export is facilitated through auction yard in Samdrupjongkhar and Phuntsholing by Food Corporation of Bhutan. Rice has a trade deficit of Nu. 156, 11, 95,782.

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Market The trade deficit pertaining to areca nut and rice indicate a potential market. FDG informed that other varieties of vegetables such a radish, onion and beans are marketed to local market, whereas ginger is sold at auction yard. Production Volume of Eggs The production of eggs has increased from 2012. In 2012, 33,743 eggs were produced but in 2013, it has increased to 47,418. Table 70: Export and Import Statistics of Eggs


Items Quantity Value (Nu.)

Quantity Value (Nu.)

Qty Value (Nu.)

1 Eggs 9,585 1,312,330 0 0 9,585 13,12,330 Total 9,585 1,312,330 0 0 9,585 13,12,330 Source: Bhutan Trade Statistics, 2013 Table 71 shows that trade deficit in eggs amounted to more than Nu. 1.31 million in 2013. Market The trade deficit of eggs assures market potential for the Gewog. FGD informed that the current production of egg is not sufficient for the local market. Therefore, the farmers have business opportunities even within the locality. Production of Sugar FGD informed that the Gewog has potential of producing sugar. Many farmers cultivate sugarcane and produce jaggery (locally known as Khomin Buram). The jaggery is used for various purposes such as direct consumption, to sweeten ritual cakes and brewing local alcohol. Presently, the people do not have improved technology and follow traditional method of crushing sugar cane for juice extraction and jaggery production. The process is labourious and time consuming. However, the smaller quantity of surplus product gets easily sold in the local market.

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Challenges Human-wildlife Conflict Constant human-wildlife is the major problem for the farmers. Mainly wild boars, monkeys and deer create menace in the farmlands leaving the farmers in a state of helplessness. Consequently, the farmers are discouraged to engage in large-scale farming. Land Fragmentation and Land Size Land being inherited property; it is fragmented into smaller landholdings. Smaller landholdings have led to insufficiency of land for agriculture. Lack of Irrigation and Drying Water Sources Since the drying up of water sources and lack of adequate irrigation facilities have compelled the farmers to depend on rain-fed crops, the productivity of crops is affected by uncertain rainfall. Opportunities Identified for the Production Under the agriculture sector, ginger is identified as the viable business opportunity due to the following reasons: (a) ginger has favourable market in India organised through auction yard in Samdrupjongkhar and Phuntsholing and (b) ginger can be preserved longer than many other vegetables. Production of variety of other vegetables is a viable business for the farmers in the Gewog, namely potato, chili and turmeric. Owing to trade deficit, vegetables production will substitute import and improve the balance of trade. Under the livestock sector, production of eggs is a viable business opportunity and help in minimizing imports. See the following tables for detailed information:

Traditional method of sugar cane crushing and Khomin Buram preparation

74

Table 71: Seasonal Calendar

Sl. No Activities Bhutanese Calendar Month 1 2 3 4 5 6 7 8 9 10 11 12



Table 73: Productivity of Vegetables

Pemathang Vegetables Production (MT)

Potato 385.80 Turnip 0.00 Chilli 11.77 Cabbage 8.07 Cauliflower 12.15 Broccoli 0.20 Asparagus 0.00 Tomato 1.72 Carrot 0.16

Pemathang Crops Cereals Yield (kg/acre)

Paddy 1,247 Maize 1,005 Wheat 0 Barley 0 Buckwheat 0 Millets 431

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Radish 6.58 Others 256.05 Table 74: Production of Meat

Sl. No. Meat Products 2011 2012 2013 1 Pork 805 805 805 2 Beef 3,580 3,580 3,580 3 Mutton 1,354 1,354 1,705 4 Chicken 861 861 861 5 Yak meat 0 0 0 6 Fish 10,600 831 0 Table 75: Dairy Products and Eggs Production

Sl. No Products 2011 2012 2013

1 Milk Produce 98,985 100,940 73,331

2 Butter 3,338 3,397 2,640

3 Cheese 3,451 3,629 3,919

4 Egg 47,418 33,743 47,418

76

PHUNTSHOTHANG GEWOG

77

Phutshothang Gewog Profile Phuntshothang Gewog falls under the administration of Samdrupchoeling Dungkhag. The Gewog shares its boundary with Assam in the south, Samrang and Pemathang in the east and Martshalla in the north. The Gewog consists of 35 villages comprising of 514 households. The Gewog has an area of 130.2 square kilometers. The Gewog has sub-tropical climate; wet and humid summer, cool and dry winter. The altitude ranges from 350-450 MASL, with heavy rainfall in summer. Paddy is cultivated as staple food crop in the Gewog and it is widely cultivated in 9 6 9 . 6 1 acres of wetland. Maize and millets are also cultivated extensively in the Gewog. The Gewog has potential for double cropping of paddy and maize. The farmers cultivate ginger, citrus and areca nut grown as cash crops. Infrastructure and facilities The Gewog has six Chiwogs and all are accessible by farm road. The Gewog has one Basic Health Unit and three outreach clinics. There is one middle secondary school, one Higher Secondary school and two ECRs. There are three non-formal education centers and all the settlements are well electrified.

Table 76: Chiwog Level Profile

Sl. No Chiwog Name of Villages Total HH

1 Khamaythang Khamaythang (Old) 44 Chumedthang 4 Khamaythang (New) 39

2 Phuntshothang Phuntshothang 35 Tsangchuthama 39 Khateythang 63

3 Belamsharang Belamsharang 31 Sukuni 6 Agurung 5

Figure 26: Phuntshothang Gewog Map

78

Tshangshingzor 18 Merudaza 5

4 Dungkarling

Dungkarling 73 Mindrupling 36 Dumpha (Lower 35 Dungkarling) Zomlegthang 2

5 Samdrupcholing

Samdrupcholing 33 Thangchugonpa 58 Drupchugang 24 Karmaling 12 Thongsigang 19 Tshokhorling 13

6 Menjigang

Balamnang 13 Mengigang 32 Solmothang 24 Thonjaling 21

Existing Resources Inventory, 2014 Agriculture, Livestock and Forest Products The major cereal crop cultivated is paddy and surplus rice is sold to the Food Corporation of Bhutan. The Gewog also cultivate ginger and areca. Mostly, mandarin is grown in Belemsharang and Menjigang Chiwogs. Livestock farming has always been a source of income generation. The people of Khamaythang, Dungkarling, Samdrupcholing and Menjigang Chiwogs raise fishery and poultry. Most of the Chiwogs have breed-local cattle. The Gewog has established 815 acres of community forest and 45 acres of private forests. The non- wood forest product such as mushroom is collected for domestic consumption and Phuntshothang Chiwog has a coal mine. In Phutshothang and Dungkarling Chiwogs, few people are skilled craftsmen in making bamboo-made containers (locally known as Bangchung). Table 77: Land Size in Acres

Types of Land Land size in acres

Dry Land 1,548.75 Wet Land 969.61 Pangzhing 3,404.00 Tshesa 48.26 Mandarin Orchid 53.87 Community Forest 3.00

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Private Forest 6.00 Source: Dzongkhag Profile, 2014 Business Ideas generated from Profiling, Focus Group Discussion and Key Informant interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts. Under agriculture sector, paddy, ginger and areca nut are widely grown in all the Chiwogs. Mandarin is grown in Belemsharang and Menjigang Chiwogs. The people of Khamaythang, Dungkarling, Samdrupcholing and Menjigang Chiwogs raise fishery and poultry. All Chiwogs raise breed-local cattle. The forest products are managed through community forest.

Table 78: Business Ideas Generated from FGD and KI

Sl. No. Chiwogs Agriculture & Horticulture

Livestock Forest 1 Phuentshothang Sugarcane, paddy*,

betel nut*, Guava, mango, peach, litchi

Diary(Local), poultry, fishery* Coal

2 Belemsharang Maize*, paddy*, ginger*, sugarcane, Mandarin

Diary (Local)

3 Khamaythang Maize, paddy*, ginger*, betel nut*, guava, mango, peach, litchi, Kiwi (Opp)

Diary (Plan), poultry (local), fishery*

4 Samdrupcholing Maize, paddy*, ginger*, betel nut*, guava, mango, peach, litchi, Kiwi (Opp)

Diary (Plan)

5 Menjegang Paddy*, ginger*, betel nut*, Mandarin*, guava, mango, peach, litchi, kiwi(Opp)

Diary (Plan), goat, poultry*, fishery*

6 Dungkar Paddy*, ginger*, betel nut*, guava, mango, peach, litchi, Kiwi (Opp)

Diary (Plan), poultry*

The product attractive matrix (see Table 79) presents dairy products; areca nut and ginger have potentially high demand and production in a commercially viable quantity.

80


Paddy ranks top in cereal crops production compared to other crops in 2011 with 1,152 kg. Paddy is the primary crop in Phuntshothang Gewog due to favorable climatic conditions and irrigation facilities. Maize ranked second in 2011 with 906kg. Cultivation of millets, buckwheat, barley and wheat are cultivated on a smaller scale for domestic consumption.

Pote

ntia

l to

prod

uce H

igh

Paddy


Med

ium

Low

Maize, millet Low Medium High



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Radish has the highest yield followed by potato and cauliflower compared to other vegetables. National average price in 2012 per kg of potato was Nu. 15.32 (Agricultural statistics, 2012). The people export potato to India through auction yards. Figure 29: Meat Production

The annual average production of pork, chicken and mutton has remained the same for three consecutive years. Average annual production of fish has increased in 2013 compared to 2012 from 2,312 kg to 17,989 kg respectively.


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Figure 30: Productivity of Dairy Products and Eggs

Amongst dairy products, milk topped the ranking for three consecutive years with around 100000 litres. Most people consume fresh milk. Butter and cheese were produced in smaller quantities over the three consecutive years. With increasing demand for eggs, the people of Phuntshothang have started poultry farming. Government supports the interested farmers in poultry by providing improved-breed layers such as like Rhode Island Red hen and Australorp hen. Production Model Agriculture farming is fundamentally carried out at an individual household level. The available land per household is used for complex farming – cultivating variety of crops as well as livestock farming.

Table 80: Comparative Analysis of Crops in terms of Production and Yield, 2013

Phuntshothang Sl. No Crops Area (Acres) Production (MT)

1 Potato 2.05 5.28 2 Paddy 743.50 856.00 3 Chilli 16.70 1.61 4 Cabbage 12.29 1.33 5 Cauliflower 9.22 5.33 6 Maize 176.20 160.00 7 Millet 29.70 9.00 8 Broccoli 2.05 0.36 9 Asparagus 0.00 0.00 10 Tomato 14.34 2.21

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11 Carrot 2.05 0.15 12 Radish 37.90 8.09 13 Turnip 0.00 0.00 14 Others 65.56 15.72

Business Opportunity Scanning and Validation Production Volume of Rice, Areca nut and Ginger According to Agriculture Statistics 2011, rice is produced in more quantity as well as providing better yield over other crops. According to FGD, areca nut and ginger are largely grown in Phuntshothang Gewog. Furthermore, the FGD informed that the Gewog is committed to emphasise on vegetable production. According to Bhutan trade statistics (2013), areca nut shows a trade deficit while ginger in total has a trade surplus of Nu. 35,972,130.00. Ginger is cultivated as the main cash crop, where the export is facilitated through auction yard in Samdrupjongkhar and Phuntsholing by Food Corporation of Bhutan. Rice, being the staple crop for Bhutanese, there is a huge trade deficit of Nu. 156,11,95,782.00. Export of rice is insignificant in terms of both quantity and value. Market Considering the trade deficit pertaining to areca nut and rice, there is a reliable market in Bhutan. FDG informed that other varieties of vegetables such a black dhal, onion and beans were sold in the local market, whereas, ginger is sold at the auction yards. Production Volume of milk and an Egg The production volume of egg has remained same for three consecutive years and production of milk is higher compared to other dairy products. Table 81: Export and Import Statistics of Milk and Eggs


Items Quantity Value (Nu.) Quantity Value (Nu.)

Quantity Value (Nu.)

1 Milk & Cream

26,83,509 12,40,61,554 0 0 26,83,509 12,40,61,554 2 Eggs 9,585 1,312,330 9,585 13,12,330 Total 26,93,094 12,53,73,884 0 0 26,93,094 12,53,73,884 Source: Bhutan Trade Statistics, 2013 The import and Export Statistics (see Table 82) shows trade deficit in eggs, which amounts to more than Nu. 12, 53, 73,884.

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Market As indicated by the trade deficit in milk and eggs, the Gewog has market potential. FGD informed that the current production of milk and egg is not sufficient in local market. Therefore, the farmer has business opportunities in egg and milk production. Challenges Human-wildlife Conflict [60% losses] Human-Wildlife conflict is a major challenge in the Gewog. Crop damage by wild animals has resulted in farmers to migrate to urban areas in search of better means of livelihood. Storage and Spoilage Most of the Chiwog are facing problem of storage of agricultural produce such as paddy. Rural-urban migration Rural-urban migration is a major cause of farm labour shortages in the Gewog. Opportunities Identified for the Production Under the agriculture sector, ginger and areca nut are identified as the viable business opportunity due to the following reasons: (a) ginger and areca nut have favourable market in India, and (b) ginger and areca nut can be preserved longer than many other vegetables. Vegetables production provides viable business opportunities for the farmers in the Gewog, namely potato, chili, tomato and carrot. Owing to trade deficit, vegetables production will substitute import and improve the balance of trade. Under the livestock sector, eggs and milk production are viable business opportunities and help in minimizing imports and improve the balance of trade. See the following tables for detailed information: Table 82: Seasonal Calendar

Sl. No


1 Potato Cultivation X 2 Potato Harvesting X X 3 Chili Cultivation X X X X 4 Wheat Cultivation X X

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5 Barley Cultivation X X X X 6 Turnip and Mastard X X 7 Leaf litter collection X 8 Firewood collection X X X 9 Bamboo Harvesting X X 10 Timber X X Table 83: Productivity of Cereal Crops

Phuntshothang

Crops Cereals Yield (kg/acre)

Paddy 1,152

Maize 906

Wheat 0

Barley 0

Buckwheat 120

Millets 310

Table 84: Productivity of Vegetables

Phuntshothang Vegetables Production (kg)

Potato 5.277 Turnip 0.00 Chilli 1.61 Cabbage 1.33 Cauliflower 5.33 Broccoli 0.36 Asparagus 0.00 Tomato 2.21 Carrot 0.15 Radish 8.09 Others 15.72 Table 85: Productivity of Meats

Sl. No Meat Products 2011 2012 2013 1 Pork 399 399 399 2 Beef 0 0 0 3 Mutton 1,337 1,337 1,337 4 Chicken 1,183 1,183 1,183

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5 Yak meat 0 0 0 6 Fish 14,000 2,312 17,989

Table 86: Productivity of Dairy Products and Eggs

Sl. No Products 2011 2012 2013 1 Milk Produce 1,02,238 1,02,111 102,111 2 Butter 4,344 4,335.25 4,335.25 3 Cheese 5,770 5,764.5 5,764.5 4 Egg 93,423 93,423 93,423

87

SAMRANG GEWOG

88

Gewog Profile Samrang is a remote and the least populated Gewog in Samdrupjongkhar Dzongkhag with an area of 51.25 square km and 27 households. The Gewog shares boundary with Martshalla Gewog to the north, Pemathang Gewog to the west and Langchenphu Gewog in the east. Agriculture production is their main source of livelihood and income. The major crops cultivated include paddy, maize and vegetables. The people also rear livestock. The Gewog has abundant forest area of 92%. Infrastructure and facilities The Gewog has five Chiwogs and all are accessible by 7 km farm road. The Gewog has one BHU Gr. II and one-outreach clinic. The Gewog has one lower secondary school with 405 students and 16 teachers. There is one non-formal education center. With the support from UNDP, GEF, SGP, the Gewog is establishing bio-gas plant. Ten households have been supported by the organisation. All the settlements are well electrified. In the Gewog, there is one forest nursery. Chiwog Level Profile Table 87: Chiwog Level Profile

Sl. No. Chiwogs No. of villages

1 Nangtshothang Toed 1

2 Nangtshothang Maed 1

3 Damsagang Toed 1

4 Damsagang Maed 1

5 Thoduen 1

Figure 31: Samrang Gewog Map

89

Existing Resource Inventory, 2014 Agriculture and Livestock Samrang Gewog has favours cultivation of a wide range of crops. The main cereal crops grown in the Gewog are paddy, maize and millet. A wide variety of vegetables are cultivated in all the Chiwogs and potato is the main cash crop. To further encourage potato cultivation and scale up production, the Gewog has instituted Kewa Tshogpa (Potato Committee). Cattle rearing for dairy products and poultry farm for eggs (layers) are the main livestock initiative of the Gewog. People rear cross-breed jersey cows and pure jersey cows, and brown layers. Currently, the Gewog has 5 poultry farms with layers ranging from 50 to 100 per farm and a dairy farm. Land size in acres Table 88: Land Size in Acres


Dry Land 777.75

Wet Land 323.53

Community Forest 3.00

Source: Dzongkhag profile, 2014 Business Ideas generated from Profiling, Focus Group Discussion and Key Informant interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts. Under agriculture sector, paddy, ginger and areca nut are widely grown in almost all the Chiwogs. Mandarin is grown in Belemsharang and Menjigang Chiwogs. In Khamaythang, Dungkarling, Samdrupcholing and Menjigang Chiwogs raise fishery and poultry. All Chiwogs raise breed-local cattle for dairy products. The forest products are managed through community forest. The Gewog has no arts and craft skills.

90


Chiwogs Agriculture & Horticulture

Livestock Forest Arts & craft

Nangtshothang Tae

Paddy*, betel nut**, maize*, ginger*, Mandarin*

Diary, piggery* Orchids (Opp), Broom (Opp)

Handicraft

Nangtshothang Mae

Maize*, paddy*, ginger, millet, betel nut*, Litchi (Opp), mango

Diary, piggery* Orchids

Damsagang Tae Maize*, ginger, Litchi (Opp), mango (Opp)

Diary Orchids (Opp), Broom (Opp)

Damsagang Mae Maize, ginger*, millet, Litchi (Opp), mango (Opp)

Diary Orchids (Opp)

Tshoduen

National centre for Aquaculture (NCA) with support from regional centre for Aquaculture (RCA) will commence the implementation of a multi-million ngultrum project to establish a 60 acre mega fish farm in Samrang. Productivity of Cereal Crops Figure 32: Productivity of Cereal Crops

Maize ranks top in terms of yield per acre and paddy ranks second. Farmers prioritise

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the production of maize over paddy because of favourable climatic conditions and multiple usages. Millet, wheat, barley and buckwheat production are relatively low compared to paddy and maize. Meat Production The annual average production of pork, beef, chicken and mutton has remained the same for three consecutive years. The National Centre for Aquaculture (NCA) support, provide necessary training and guide to the people of Samrang for fish production. Figure 33: Meat Production

Productivity of Dairy Products Figure 34: Dairy Products

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The production of milk and butter has decreased compared to 2011 and 2012, whereas, the production of cheese and eggs have increased marginally. Production model Farming is fundamentally practiced at an individual household level. Farmers practice a complex farming system where, land is used for multiple cropping and livestock rearing. The ustilisation of forest resources are based on community forest. There are three community forests registered under the Gewog. Challenges Lack of Adequate Water Supply Lack of adequate water supply is a challenge for the farmers since all the farmers depend on irrigation. Human-wildlife conflict: wild boar, deer, monkeys, porcupine A wide variety of fauna inhabit the forested areas of the Gewog. Some of the protected animals such as elephant, leopard, leopard cat, and other common wildlife including macaques, leopards, bears, wild dogs, damage crops or attack the cattle in the village. Opportunities Identified for the Production Under the agriculture sector, ginger is identified as the viable business opportunity due to the following reasons: (a) ginger has favourable market in India organised through auction yard in Samdrupjongkhar and Phuntsholing and (b) ginger can be preserved longer than many other vegetables. Production of variety of other vegetables is a viable business for the farmers in the Gewog, namely potato, chili and turmeric. Owing to trade deficit, vegetables production will substitute import and improve the balance of trade. Under the livestock sector, dairy farming, piggery and poultry are viable business opportunities and help in minimizing imports. See the following tables for detailed information: Table 90: Seasonal Calendar

Sl. No. Activities Bhutanese Calendar Month 1 2 3 4 5 6 7 8 9 10 11 12 1 Potato Cultivation X 2 Potato Harvesting X X 3 Chili Cultivation X X X X 4 Wheat Cultivation X X

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5 Barley Cultivation X X X X 6 Turnip and Mustard X X 7 Leaf litter collection X 8 Firewood collection X X X 9 Bamboo Harvesting X X 10 Timber X X


Sl. No Crops Area (Acres) Production (MT) 1 Paddy 41 975 2 Maize 3 1,250 3 Wheat 0 0 4 Barley 4 254 5 Buckwheat 0 0 6 Millets 7 346

Table 92: Meat Production

Sl. No. Meat Products 2011 2012 2013 1 Pork 170 170 170 2 Beef 300 300 300 3 Mutton 72 72 72 4 Chicken 243 243 243 5 Yak meat 0 0 0 6 Fish 0 0 0

Table 93: Dairy Products and Eggs

Sl. No. Products 2011 2012 2013 1 Milk Produce 20,610 21,780 11,217 2 Butter 615 650 539 3 Cheese 485 570 953 4 Egg 5,560 5,490 5,560

94

SERTHIG GEWOG

95

Gewog Profile Serthig Gewog is under Jomotshangkha Dungkhag and it is bordered by Lauri Gewog in the North , Langchenphu Gewog in the south, Martshalla Gewog in the west and Arunachal Pradesh of India in the east. The Gewog has 14 villages with 375 households. Serthig Gewog covers an area of about 303 square kilometers. The Gewog is located in sub-tropical climatic zone and altitude ranges from 600 to 2,200 meters above the sea level. Since the Gewog is within the Chirapunji Mountain Range, it receives a heavy rainfall starting from June till end of August. The average temperature is 30 ° in the summer and 10° in the winter. Serthig Gewog consists of mainly dry land in terms of land use pattern. Maize is the staple crop and it is widely cultivated in Kamzhing and Tseri. Infrastructure and facilities There are 5 Chiwogs, 14 villages and 375 households. The Gewog has access to basic social amenities like school, BHU, RNR-EC, drinking water facilities. The Gewog was recently connected by a farm road under the Lauri-Serthi farm road construction project. The Gewog has 2 community primary schools and 1 middle secondary school. There are 5 non-formal education centers. The Gewog has 1 BHU Grade II and 2 Outreach Clinics. All the settlements are well electrified.

Figure 35: Serthig Gewog Map

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Chiwog Level Profile Table 94: Chiwog Level Profile

Sl. No. Chiwog Name of villages Total HH

1 Phagcho

Phagcho 18 Jurmepam 10 Jurme 6 Suskar 15

2 Serthig Serthig 60 Tokari 8

3 Barkalangnang Barkalangnang 26 Monmola 37 Tashithagay 17

4 Khandrophung Khandrophung 40 Mejuwung 40 Chitori 7

5 Doebtshang Doebtshang 31 Dhenphu 28 Larjab 16

Existing Resource Inventory, 2014 Agriculture, Livestock and forest products The major crop cultivated is maize for household consumption. The main cash crops include mandarin and cardamom which are cultivated in all the Chiwogs. The Gewog has limited wetland and does not grow much paddy. Livestock is another important source for income generation. Some of the activities that farmers involve in livestock sector are piggery, fisheries, poultry farming and dairy. The Gewog established three-community forest and six private forests. Non-wood forest product like mushroom is available but harvesting is allowed for self-consumption only. In Phagcho and Doebtshang Chiwogs, there are some people who are skilled in stone carving and carpentry such as making altar (Choeshum). The people in Barkalangnang and Doebtshang Chiwog weave Bangchung.

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Table 95: Land Size in Acres


Dry Land 1,516.09 Wet Land 46.58 Pangzhing 50.90 Open Grazing Land 29.65 Developed Pastures 221.01 Mandarin Orchid 13.30 Community Forest 3.00 Private Forest 6.00

Source: Dzongkhag profile, 2014 Ideas generated from Profiling, Focus Group Discussion and Key Informant Interview From the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, horticulture and arts and crafts. Under agriculture sector, all the Chiwogs cultivate maize, potato, chili, ginger and some vegetables. Mandarin is grown in all the Chiwogs. All the Chiwogs raise poultry, piggery and cattle for dairy products. The forest products are managed through community forest. In Phagcho and Doebtshang Chiwogs, the skilled people are keen to commercialise their production of stone carved statues and altars (Choeshum), while the people in Barkalangnang and Doebtshang Chiwog are keen to increase production and sale of Bangchung. Table 96: Business Ideas Generated from FGD and KI

Chiwogs Agriculture &

Horticulture

Livestock Forest Arts & Crafts

Phagcho Maize, potato*, sag*, Mandarin*, cardamom, pears*

Diary (plan), poultry*, piggery*

Laniru

Statue, alter

Serthig Maize, potato*, ginger**, chili*, Mandarin**, cardamom

Barka-Langnang

Maize, potato*, ginger*, chili*, Mandarin*, cardamom

Bangchung

Khandrophung Maize, potato*, ginger*, chili*, Mandarin*, cardamom, pears

Doebtshang Maize, potato*, ginger**, chili*, Mandarin*, cardamom, pears

Laniru seedling production

Bangchung, alter


Pote

ntia

l to

prod

uce Hig

h

maize ginger Potato, milk, egg

Med

ium

Low

Millet Low Medium High

Potential Market Demand The attractiveness matrix in the above table reveals that potato, milk, and eggs have

98

potential for high demand and production. Of all the products, carrot can be cultivated in all seasons. Productivity of Cereal Crops Figure 36: Productivity of Cereal Crops

Maize ranks top in terms of yield per acre and paddy ranks the second. Farmers prioritise the production of maize over paddy for because of climatic conditions and multiplicity of usage. Millet and buckwheat production is relatively low compared to paddy and maize. Millet and buckwheat are produce mainly for household consumption. Productivity of Vegetables


For the three products identified for business ideas purely based on the production volume and demand, potato had the highest production in 2011 compared to other vegetables in Serthig Gewog. The average annual production in 2011 was 192.471 MT. Some vegetables as turnip, radish, chili, broccoli, carrot, tomato and asparagus are produced in small quantity

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for sale in the local markets. Vegetables like onion, pea, tomato cauliflower, pumpkin, Rajma bean, carrot are produced for household consumption. Meat Production Figure 38: Meat Production

The annual average production of pork reduced to 900 kg in 2013 from 4,500 kg in 2012. Table 97. Production and Yield, 2011

Serthig Sl. No Crops Area (Acres) Production (MT)

1 Potato 129.83 192.47 2 Paddy 102.20 110.00 3 Maize 1,759.90 2,433.00 4 Chilli 128.50 50.98 5 Cabbage 202.96 34.52 6 Cauliflower 104.42 40.78 7 Broccoli 23.17 3.00 8 Asparagus 2.25 0.06 9 Tomato 32.66 3.27 10 Carrot 21.84 1.76 11 Radish 119.42 107.68 12 Turnip 28.99 9.72 13 Others 348.16 68.16 14 Wheat 17.10 9.00 15 Buckwheat 630.60 321.00

Figure 39: Dairy Products and Eggs Production

The highest production of milk was recorded in 2012 and thereafter, over the past two years, the production has declined.

Table 98: Comparative Analysis

Business

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Opportunity Scanning and Validation Production Volume of Radish and Table 98 : List of Crops

In terms of the volume of vegetable production in Serthig Gewog, potato and radish are produced in large quantity compared to other vegetables (see Table 99). Amongst the cereal crops, though maize gives better yield per acre, value per acre is more than 50%

less than paddy. Given 1516.09 acres of dry land under in the Gewog, cultivation of high yielding vegetables has a competitive advantage. Furthermore, the FGD informed that the Gewog emphasizes on vegetable production, especially potato. Amongst cereal crops, FGD informed that farmers are keen in rice production. However, limited wet land of 46.58 acres constraints paddy cultivation and vegetables production is found as a commercially viable alternative. As per the Bhutan Trade Statistics (2013), potato and radish have a trade surplus of Nu. 30,44,20,530.00. Potato is cultivated as the main cash crop where the export is facilitated through auction yards in Samdrupjongkhar and Phuntsholing by FCB. Market FDG informed that other varieties of vegetables such as chili, cabbage and beans were market in local market. Potato is exported to West Bengal, India through auction yard in Phuntsholing and some to Assam through auction yard in Samdrupjongkhar Production Volume of Dairy Products and Egg In Serthig Gewog, annual milk and butter production has decreased by 507 litres and 192.5 kg in 2013 from 2012. Whereas the cheese production has increased by 1318.5 kg in 2013 and production of eggs also increased by 1869 eggs in 2013 (see Appendices: Table 105). The trade deficit in dairy products and eggs amounts to more than Nu. 247 million. Market As indicated by the trade deficit in dairy products, the Gewog has market potential.

FDG informed that limited shelf life of milk and small local market deters the marketability of fresh milk but the processed butter and cheese will mitigate the trade deficit problem in the country. Eggs have local market as well as regional market in eastern part. Challenge Human-wildlife conflict: boars, monkeys, bear [70% losses] The

Serthig Crops Cereals Yield (kg/acre)

Paddy 1,081 Maize 1,383 Wheat 536 Barley 353 Buckwheat 509 Millets 400

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scattered and remote rural settlements hinder the efficient and also cost effective delivery of socio-economic services to the people. They face with the challenge of wild animals and pests attacks. Rural-urban migration Rural –urban migration because of wildlife conflict is a major challenge leading acute farm labour shortages. Opportunities Identified for the Production Under the agriculture sector, potato is identified as the viable business opportunity due to the following reasons: (a) potato has favorable market in India organised through auction yard in Phuntsholing and Samdrupjongkhar, (b) potato adapts well to the practices of mix cropping, especially with maize and (c) potato can be preserved longer than many other vegetables. Variety of other vegetables production provides viable business opportunities for the farmers in the Gewog, namely chilli and radish. Owing to trade deficit, vegetables production will substitute import and improve the balance of trade. See the following tables for detailed information: Table 99: Seasonal Calendar

Sl. No



Table 100: Major Vegetables Production

Serthig

Vegetables Production Potato 192.47 Trunip 9.72

Chilli 50.97 Cabbage 34.52 Cauliflower 40.78 Broccoli 3.00 Asparagus 0.06 Tomato 3.27 Carrot 1.76 Radish 107.68 Others 68.16

Table 100: Productivity of Fruits

Serthig Fruits Quantity

Apple 0 Mandarin 642.83 Areca Nut 0 Mango 3.327 Peach 13.004 Pear 15.617 Plum 7.124 Walnut 0.367 Others 73.245 Table 101: Meat production

Sl. No Meat Products 2011 2012 2013 1 Pork 4,500 4,500 900 2 Beef 0 0 0 3 Mutton 0 0 0 4 Chicken 0 0 0 5 Yak meat 0 0 0 6 Fish 0 0 0

Table 102: Dairy

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Table 101. Products and Egg Production

Sl. No Products 2011 2012 2013 1 Milk Produce 780 33,207 32,700 2 Butter 283 1,544 1,351.5 3 Cheese 509 508.5 1,827 4 Egg 15,794 15,794 17,663

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WANGPHU GEWOG

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Gewog Profile

Wangphu Gewog has been recently bifurcated from Gomdar Gewog. The Gewog is bordered by Gomdar Gewog in the north, Martshala Gewoh in the east and Orong Gewog in the south. Total area of the Gewog is 79.8 Square Kilometers. It comprises of five Chiwogs and 16 villages. Total registered households in the Gewog is 400 with a population of 3,131 people (Dzongkhag website, 2015).

Infrastructure and Facilities

The Gewog center is connected with farm road and it is 70 Km away from the Dzongkhag. Gewog has a RNRR center, BHU and one Community Primary School. The rural water supply coverage is 92%. Around 320 households are electrified and 60 households have access to solar lighting. Table 102: Chiwog Level Profile

Sl. No

Name of the Chiwog Name of villages Total Households

Population

1 Sachilo Sachilo 40 310 2 Baeyul-Pangthang

Bayuel 12 95 Shoguwoong 8 49 Shokshipangthang 67 512

3 Shogshi

Khainorong/Shogshi 4 42 Lingsum 1 22 Manidangrey 17 144 Shogshi 54 385

4 Benporong-Yarphug

Benporong

16 117

Figure 40: Wangphu Gewog Map

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Singsiborang 8 65

Yarphoog 79 633 5 Serchenmo-Wangphug Serchenmo 39 323

Haila 19 159 Langnangringmo 14 113 Wangphoog 22 162

Total 400 3,131 Source: Election Commission of Bhutan and Gewog Profile.

Note: There are 28 Empty registered households in the Gewog as per Gewog statistics

Table 103: Land Size in Acres

Types of land Acres Kamzhing 2,804.60 Khimsa 11.95 Pangzhing 144.70 Orchard 45.40 Open Grazing Land 542.30 Total 3,548.95 Source: Dzongkhag Website, 2015

Existing Resource Inventory

Agriculture, Livestock, Forestry, Local Arts and Crafts and Horticulture

The main cereal crops grown in the Gewog are maize and buckwheat. Beans and potato are also grown widely in the Gewog. In terms of horticulture, Mandarin is popularly grown in all the Chiwogs and there are around 45 acres of land under Mandarin plantation. Hazelnut plantation is also one potential income source for the people in future. Some of the non wood forest products found in the Gewog are Rubia- cordifolia, Chirata, Ringshu, Patsha and cane shoot. Two Chiwogs have backyard poultry farm and one Chiwog has backyard poultry farm. One Chiwog has backyard local breed poultry firm. Except local breed cattle’s there are very few high breed cattle’s under Wangphu Gewog. It was pointed out during the FGD that Serchenmo-Wangphu Chiwog has possibility of coal deposit and Shoshi and Benporong-Pangthang Chiwog have huge limestone deposits.

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Sl. No.

Name of the

Chiwogs

Agricul-ture Livestock

Forestry Arts and Crafts

Horticulture

1 Sachilo Maize Potato Buckwheat Beans Ginger*

Cardamom Hazelnut

2 Baeyul-Pangthang

Maize Potato Ginger*

Backyard Poultry Firm

Chirata Wood Crafts (Choesham)

Mandarin Hazelnut

3 Shogshi Maize Buckwheat Ginger*

Local Poultry Firm

Ringshu Bamboo crafts

Mandarin

4 Benporong-Yarphug

Maize Buckwheat Potato Beans(Rajma) Ginger*

Backyard Poultry Firm

Rubia- cordifolia (Laniru)

Mandarin Hazelnut

5 Serchenmo-Wangphug

Maize Potato Vegetables Ginger*

Backyard Piggery Firm

Patsha Ringshu Cane

Blacksmith Mandarin Plum

Source: Focus Group Discussion.

Note: * Indicates potential for production in future

Focus Group Discussion in Wangphu Gewog

Focus Group Discussion (FGD) was conducted in Wangphu Gewog on 27th January 2015. There were eight participants and they were Mangmi, Community center operator, caretaker and five Tshogpas. As shown in the table 1.3 discussions were held on five areas; Agriculture, Livestock’s, Forestry, Arts and Crafts and Horticulture. Participants were asked to identify the potential in production and viable business opportunities in these five sectors and also asked to point out the challenges. Besides these five sectors, participants were also asked about the potential mineral deposits existing in the Gewog.

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Table 105: Attractiveness Matrix Po

tent

ial t

o Pr

oduc

e

High Maize and Buckwheat

Most Attractive: lime power production, Flattened Maize (Tengma) and Potato chips, Ginger

Medium

Low Least Attractive:

Low Medium High


Source: Focus Group Discussion, 2014

Since the Gewog has huge limestone deposits, it was pointed out that lime powder production at a small scale would be a viable business opportunity. The Gewog also has the potential to produce potato chips and flattened maize locally known as Tengma. It was also pointed out that Gewog has huge potential to produce Ginger in future. Business Ideas Generated During the FGD (Production and Manufacturing and Small & Cottage Industry) Lime powder processing plant

Wangphu Gewog has huge limestone reserves like Gomdar Gewog. Therefore, it was pointed out that lime powder processing plant is suitable for the Gewog. It was learned that in the past, people used to extract lime from existing lime rocks for various domestic purpose like whitewashing, consumption. Flattened Maize (Tengma) Processing Plant

Maize is produced by every household in the Gewog. It was pointed out that in future people can set up mini plants to produce flattened maize locally called as Tengma. This product could be easily sold outside the Gewog. Production of Potato Chips

Wangphu Gewog produces good quality potatoes. Therefore it was pointed out that the Gewog has potential to produce potato chips. Market

Currently the Gewog has challenges of marketing their agricultural goods because of lack of access to road and ruggedness of the landscape. Potential market and nearest market for the above products could be Samdrupjongkhar.

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Challenges

Accessibility to Road

Gewog center has been recently connected with farm road and many Chiwogs have no road connectivity. Therefore, one of the main challenges in Wangphu Gewog is accessibility to road. Human Wildlife Conflict

Wild pigs and Monkeys are the most problematic wild animals which destroy crops of farmers in Wangphu Gewog. Farm labour shortage and ruggedness of the landscape are also the challenges faced by the people of Wangphu Gewog.

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REFERENCES

Cabinet Secretariat. (2012). State of the nation. Retrieved from www.cabinet.gov.bt

Department of Agriculture, Ministry of Agriculture and Forests. (2013). Agriculture statistics. Thimphu: Author.





Department of Revenue and Customs, Ministry of Finance. (2013). Bhutan trade statistics. Thimphu: Author.

Department of Cottage and Small Industry, Ministry of Economic Affairs. (2013). Cottage and small industry report. Thimphu: Author.

Department of Forests and Park Services, Ministry of Agriculture and Forests. (2012). Strengthening record and book keeping in community-based forest product businesses. Thimphu: Author.

Department of Livestock, Ministry of Agriculture and Forests. (2013). Livestock statistics. Thimphu: Author.





Gross National Happiness Commission. (2013). Eleventh five year plan document- Samdrupjongkhar Dzongkhag. Retrieved from http://www.gnhc.gov.bt/wp-content/themes/WP-GNHCC/attachment/11th-Plan-Vol-2.pdf.

Gross National Happiness Commission. (2013). SAARC development goals. Retrieved from http://www.gnhc.gov.bt/2013/10/saarc-development-goals-2013-3/

Gross National Happiness Commission. (n.d). Turning vision into reality. Retrieved from http://www.llrtm.gnhc.gov.bt/

Policy and planning Division, Ministry of Agriculture and Forest. (2013). Bhutan RNR statistics. Thimphu: Author.

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