YK Poudel

Fifteen years ago, Sonam Chophel, now the Chief Executive Officer of the Cottage and Small Industry (CSI) market, had a groundbreaking business idea to market ‘Grown in Bhutan’ premium agricultural products. Today, this vision has blossomed into a thriving sector, with over 600 entrepreneurs driving Bhutan’s CSI market – 60 percent of whom are women.

Speaking at the National Youth Symposium in Thimphu on August 12, Sonam Chophel said that despite the inherent risks and uncertainties of entrepreneurship, the agrifood sector in Bhutan has shown promising growth, thanks in part to rising farm production and a growing interest in transforming the agricultural sector.

He highlighted several challenges confronting the agrifood sector, including access to finance, limited startup resources, limited use of technology, and market structure, among others. “Further, the sector is challenged by lengthy bureaucracy for the certification process.”

Despite these hurdles, Sonam Chophel said that the agrifood sector in the country is performing relatively better than the broader region.

“There is a growing recognition that the key to unlocking the sector’s full potential lies in prioritising investments in the value chain,” he said. “Enhancing access to data, strengthening the entrepreneurship ecosystem, and fostering public-private partnerships are all critical steps that can help overcome existing challenges,” he said.

The Druksell group, an e-commerce and physical retail store, exemplifies the sector’s promise, showcasing how a focus on the value chain can help entrepreneurs meet domestic needs and explore export opportunities.

Sonam Chophel said that with the right support, Bhutan’s focus on premium, locally grown products could become a unique selling point in both local and international markets. “Agrifood entrepreneurship in Bhutan has the potential to drive economic growth and contribute significantly to the nation’s development,” he said.

Talking about the access to capital for youth entrepreneurs in the agrifood sector, the CEO of Bhutan Development Bank Limited, Tshering Om, said that the bank has given loans in the tune of Nu 4.5 billion to the agri-sector so far, which is 25 percent of its overall portfolio.

“Interested individuals can apply for loans, however, it is also important to have a clear idea based on the needs and priorities of the country,” she said.

She said that the government has allocated Nu 3.3 billion from the economic stimulus plan (ESP) for the agri-sector. This collateral-free loan, available through all financial institutions, offers a four percent interest rate. “All financial institutions are a part of the ESP which interested entrepreneurs may take advantage of,” Tshering Om said.