January 2, 2026
THIMPHU – Bhutan’s potato sector, buoyed by last year’s price surge driven by shortages in India, expanded production and stockholding in 2025. However, early potato harvests in India, falling prices, and weak demand have disrupted exports this season, leaving Bhutanese farmers with large quantities of unsold stocks.
Addressing the issue during the 23rd Meet-the-Press session today, Agriculture and Livestock Minister Younten Phuntsho acknowledged the challenges facing farmers, citing hoarding, stiff price competition from Indian potatoes, and weak demand for small-sized Bhutanese produce.
The minister recently visited the Food Corporation of Bhutan Limited (FCBL) auction yard in Phuentsholing to assess the situation.
Lyonpo Younten Phuntsho said the government fully understands the difficulties faced by farmers and is responding with urgency.
While assuring that the concerns raised over auction prices and unsold stocks are being taken seriously, the minister said that market forces beyond Bhutan’s control have played a major role this year.
Bhutan produces potatoes in two seasons: a summer crop in higher altitudes and a winter crop in the southern foothills. Export demand typically peaks between June and November, when Indian production is low. This year, however, the export window narrowed as India’s harvest began earlier than usual.
According to MoAL, last year’s shortage of potatoes in India pushed Bhutanese potato prices above Nu 60 per kilogram, encouraging farmers to expand production.
By the third quarter of this year, Bhutan produced about 39,488 metric tonnes (MT) of potatoes, of which 19,348.5 MT were exported by December 22, 2025.
“High prices last year created expectations of similar returns this season,” Lyonpo said. “As a result, many farmers increased production and also held back their stocks, hoping for higher late-season prices, despite repeated advisories from the FCBL.”
The situation worsened with the early arrival of fresh potato harvests from Indian states such as West Bengal and Punjab from early December. Indian buyers preferred cheaper and fresher local potatoes over stored Bhutanese produce. As a result, Indian traders were left with unsold Bhutanese stocks of about 625 metric tonnes.
MoAL officials who visited Falakata in West Bengal found that fresh Indian potatoes were selling for Nu 10–17 per kilogram, while cold-stored potatoes fetched as little as Nu 6–7.
“With fresh local potatoes flooding the market, there is virtually no demand for Bhutanese potatoes,” Lyonpo said. “Even Indian farmers are struggling to recover storage costs, with at least one cold store considering distributing potatoes for free.”
Lyonpo said the MoAL and FCBL have taken several immediate steps to address the crisis.
Since April, a joint potato awareness campaign covered five dzongkhags and 12 gewogs, reaching over 1,100 farmers. The campaign focused on discouraging hoarding, timely delivery to auction yards, proper curing, and a better understanding of auction procedures. Telegram groups were also created to share real-time price information.
“When traders could not sell potatoes, we informed farmers not to bring more produce to the auction yards due to market saturation,” Lyonpo Younten Phuntsho said.
The auction period was also extended until December 22, allowing farmers to auction an additional 49 MT.
The ministry also assessed potato stocks at source, identifying about 1,889 MT across five dzongkhags, and has reached out to domestic vegetable importers.
As of December 29, a total of 12 vendors procured 8.7 MT of potatoes from farmers in Phobjikha.
Short-term measures under consideration include FCBL procuring potatoes at reasonable prices for storage and distribution to schools, Gyalsung Academies, hospitals, and the armed forces.
In the medium term, the ministry plans a comprehensive assessment of Indian potato markets to better align Bhutanese production with demand.
In the long run, the Minister said diversification is essential. While India will remain Bhutan’s primary trading partner, the country must reduce over-dependence on a single market by exploring opportunities in Bangladesh, Nepal, and other regional destinations.