Lhakpa Quendren
Gelephu—As local sawmillers struggle to meet the demand for wooden crates for mandarin exports in Gelephu, exporters continue to face strain with no effective solution for their business.
While some exporters find solutions through internal arrangements, others are struggling to find immediate solutions. With less than a month left for export to end, most exporters have completed about 70 percent of their shipments.
Jamtsho Enterprise has exported only 27 Eicher Jumbo truckloads of mandarin so far, with 30 more expected in the remaining days. “We have been able to send only one truck a day, but we plan to send two trucks daily, provided the crates arrive on time,” said the exporter. “The shortages have delayed us in reaching our target.”
“We have made an advance payment of over Nu 800,000 to two sawmills, but they are unable to supply on time,” he said, adding that past experience shows most sawmills can supply about 10 truckloads of crates for one exporter. “But some sawmills receive orders from up to five exporters, beyond their production capacity.”
The shortages are severe during the peak export season, which makes the industry difficult, as some exporters offer as much as Nu 150 per crate, while most maintain the market price at Nu 130 per crate, according to the exporters.
Another exporter, Chencho Nidup, transports materials from a sawmill in Haa and assembles them at the depot to address the shortages. “Many exporters do not order from distant sawmills as the transportation cost is expensive,” he said.
“It has been three years with the same problems recurring each year, despite several meetings being held to address the shortages. In every meeting, they assured us that there would be no shortages,” said Chencho, another exporter.
However, the exporters say the situation has slightly improved compared to previous years, with the de-suups also producing crates, although they are still unable to fulfil the initial orders from exporters.
TD Enterprise ordered 20,000 crates from de-suups out of 50,000, but it was later reduced to 10,000, with only 3,000 supplied so far. “We placed the order late with the de-suups, causing a shortage during the packing season, but I alleviated it by purchasing 7,000 crates from another sawmill. Now, we only need 4,000 crates.”
TD Enterprise exported 110 Jamboo truckloads mandarin, including 80 from Gelephu and the rest from the Lhamoidzingkha depot. Around 30 more truckloads are expected to be exported in the remaining days of the season.
“De-suups work until 12 am to meet demand, but manpower shortages hinder progress. The government’s objective is appreciated, but proper planning is needed to ensure its success,” said one exporter. “They should have provided proper working space instead of open plastic tents.”
Some exporters have alleged that others resorted to illegally importing crates, which were then mixed with locally sourced crates from Phuentsholing and Samtse during transportation.
Exporters say that when imports were allowed, a Jumbo truck from India could carry about 750 crates, with suppliers covering the cost of crate damages during transportation. However, local trucks can only carry up to 600 crates, and suppliers do not cover the damages.
The shortages continue despite a formal agreement made three years ago between the Association of Wood-Based Industry and the Bhutan Export Association in Gelephu to use local crates.
When imports were allowed, Bhutan spent Nu 25.5 million in 2022 alone. The import ban was lifted last year as local sawmillers were unable to meet demand. Each crate cost Nu 75 in India, but Nu 130 or more in Bhutan.
However, the lifting of the ban last year has affected those who had stocked crates from local sawmills, as the imported cheaper crates allowed others to offer more attractive prices for mandarins.
Sangay Choden of Dru-Gang Enterprise incurred a loss of Nu 2.36 million after scrapping 16,307 crates, having lost her suppliers to other exporters who offered higher prices. “I couldn’t compete with others as I had already paid a higher price for local crates,” she said.

Sangay Choden’s 16,307 crates worth Nu 2.36 million were damaged last year after the import ban was lifted
“Twelve plastic tents were damaged, and the crates exposed to the weather can no longer be reused,” she added. “I rented a single-story concrete building for three months to store the crates but couldn’t afford the Nu 50,000 rent.”
Sangay Choden appealed for compensation to the Department of Agricultural Marketing and Co-operatives, but was told there was a lack of budget. “I appealed to the agriculture minister and a member of parliament. With no help, I had no choice but to appeal to the highest authority,” she said.
There are 14 exporters in Gelephu, the highest number among the depots in the country, who buy mandarins from Punakha, Tsirang, Dagana, Sarpang, Zhemgang, Trongsa, Mongar, and Trashigang. They transport wooden crates from sawmills in Phuentsholing, Haa, Wangdue, Thimphu, Paro, Tsirang, Dagana, and Sarpang.
Exporters say that mandarin production is better this year, and prices are higher compared to last year. Each box is exported for Nu 2,700, while the supplier receives Nu 2,050.
Gelephu Thromde has relocated the mandarin orange export depot to state land at Namkhaling Demkhong from its previous location. Each exporter paid Nu 50,000 for the depot’s establishment, which offers access to water, electricity, and spacious areas.
“The GMC Governor has supported us with a new location on state land. Since the previous location was on private land, we are more secure and reliable in the new location,” said Chencho.