RESOURCE INVENTORY AND BUSINESS OPPORTUNITY FOR COTTAGE AND SMALL INDUSTRY … · 2019. 5. 8. ·...

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RESOURCE INVENTORY AND BUSINESS OPPORTUNITY FOR COTTAGE AND SMALL INDUSTRY UNDER PRODUCTION AND MANUFACTURING SECTORS PARO DZONGKHAG 2015 BUSINESS OPPORTUNITY INFORMATION CENTRE

Transcript of RESOURCE INVENTORY AND BUSINESS OPPORTUNITY FOR COTTAGE AND SMALL INDUSTRY … · 2019. 5. 8. ·...

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RESOURCE INVENTORY AND BUSINESS OPPORTUNITY FOR

COTTAGE AND SMALL INDUSTRY UNDER PRODUCTION AND MANUFACTURING SECTORS

PARO DZONGKHAG 2015

BUSINESS OPPORTUNITY INFORMATION CENTRE

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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.  

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TABLE OF CONTENTS

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

HUNGREL!GEWOG!...............................................................................................................................!14!

LAMGONG!GEWOG!.............................................................................................................................!21!

SHABA!GEWOG!....................................................................................................................................!31!

TSENTO!GEWOG!..................................................................................................................................!41!

WANGCHANG!!!GEWOG!......................................................................................................................!48!

LUNGNYI!GEWOG!................................................................................................................................!53!

SHARI!GEWOG!.....................................................................................................................................!61!

NAJA!GEWOG!.......................................................................................................................................!67!

DOTENG!GEWOG!.................................................................................................................................!76!

DOKAR!GEWOG!...................................................................................................................................!82!

REFERENCES!.........................................................................................................................................!88!

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DZONGKHAG PROFILE

1. About the Dzongkhag

Paro Dzongkhag is situated in the north-western part of the country. It borders with Tibet in the north, Haa Dzongkhag in the west and Thimphu Dzongkhag in the east. The altitude ranges from 400 to 2000 meters above sea level. The Dzongkhag has an area of 1251 Sq. Km and the Dzongkhag is administratively divided into ten Gewogs. Paro is one of the socially as well as economically developed Dzongkhag in the country with all the basic facilities.

Agriculture is one of the major sources of income for the people as the valley has a very fertile land with alluvial soil and suitable terrain. The favorable climatic condition and diverse agro-ecological features provides the Dzongkhag with potential for cultivation of various types of cereals, horticulture crops and seasonal vegetables.

Rearing of livestock is also emphasized in the Dzongkhag. Tourism is another important source of income as the only international airport is located in the Dzongkhag and it also has many historical places with beautiful architectures and monuments. The influx of tourists has boosted the business activities like hotel industry and traditional handicrafts. The overall poverty rate in the Dzongkhag is less than 1 percent and poverty reduction intervention is highly emphasized.

The Dzongkhag still faces challenges like scarcity of water for drinking and irrigation purposes. The wildlife conflict and farm labor shortage is also another common challenge. The problem of youth related crimes, air pollution and solid waste management are becoming some of the emerging issues.

2. Existing Resource Inventory

2.1 Agriculture and Horticulture, 2013

Majority of the people in the Dzongkhag depend on agriculture work and its production for their livelihood. In the agriculture sector, paddy is the principal cereal crop widely grown in all the Gewogs. Apart from paddy, Paro valley is also suitable for growing varieties of crops like wheat, millet, potatoe, and seasonal vegetables.

(Source: Election Commission of Bhutan)

Figure 1: Paro Dzongkhag Map

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In the horticulture sector, apple is the main fruit grown for domestic consumption as well as for commercial purposes. Other fruits like pear, plum, walnut, persimmon and pomegranate are also grown on a commercial scale.

Table 1: Major cereal crops production in 2013

Cereal Crops Cultivated area (acre) Production (MT) Yield (kg/acre)

Paddy 4,247 9,891 2,329

Maize 56 53 947

Wheat 610 516 846

Barley 93 78 842

Buckwheat 169 128 757

Millet 16 9 600

Source: DOA, MOAF, 2013

Table 2: Major vegetables production in 2013

Vegetables Cultivated area (acre) Production (MT) Yield (kg/acre)

Potato 689 2,678 3,888

Asparagus 125 101 810

Chili 823 1,963 2,386

Cabbage 212 995 4,697

Cauliflower 22 82 3,793

Broccoli 32 95 2,951

Beans 112 279 2,500

Carrot 35 113 3,181

Radish 157 317 2,024

Turnip 147 650 4,421

Peas 147 235 1,595

Garlic 6 4 654

Source: DOA, MOAF, 2013

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Table 3: Other vegetables production in 2013

Other Vegetables Production (MT)

Tomato 184.6

Egg Plant 33.5

Lady Finger 0.1

Green Leaves 74.6

Source: DOA, MOAF, 2013

Table 4: Major cucurbits production in 2013

Types Production (MT)

Cucumber 61

Pumpkin 253

Squash 0.2

Gourds -

Source: DOA, MOAF, 2013

Table 5: Major species production in 2013

Types Cultivated Area (Acres)

Production (MT)

Yield

(Kg/Acre)

Ginger 0.08 0 200

Source: DOA, MOAF, 2013

Table 6: Major oil seeds production in 2013

Types Cultivated Area (Acres)

Production (MT)

Yield

(Kg/Acre)

Mustard 132 52 397

Source: DOA, MOAF, 2013

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Table 7: Horticulture fruit crop production in 2013

Name of Fruit trees

No. of trees

Bearing trees

Production (MT)

Yield (kg/tree)

Apple 1,96,179 1,54,001 5,698 37

Pear 1,870 1,254 48 39

Peach 3,962 3,460 126 36

Walnut 2,396 1,550 60 39

Plum 795 627 27 43

Pomegranate 177 115 3 29

Persimmon 270 165 15 91

Source: DOA, MOAF, 2013

2.2 Livestock

Table 8: Livestock population in 2013

Cat

tle

Mith

un

Yak

Equ

ine

Pig

Poul

try

Shee

p

Goa

t

13,052 7 2,632 1,293 510 24,699 12 118

Source: DOL, MOAF, 2013

Table 9: Livestock production in 2013

Dairy Products (MT) Meat Products (Kg)

Eggs (No.)

Milk

But

ter

Che

ese

Chu

go

Pork

Bee

f

Yak

Che

von

Chi

cken

Fish

2,072.4

64.7

109.7 5.9 18.7 25.6 17 - 0.8 - 39,19,055

Source: DOL, MOAF (2013)

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3. Cottage and Small Industry (CSI)

Table 10: Cottage and Small Industry by scale and activity

CSI by Scale

P & M Service Contract

Cottage Small Cottage Small Small

123 27 355 124 200

CSI by Activity

Agro Based Forest based Mineral Based other

5 119 6 20

Source: DCSI, MOEA, 2013

4. Gewog wise Business Opportunities in different sector

Table 11: Gewog wise business opportunities in agriculture

Agriculture

Hun

grel

Lam

gong

Shab

a

Tse

nto

Wan

gcha

ng

Lun

gnyi

Shar

i

Naj

a

Dot

eng

Dok

ar

Prod

uctio

n

Paddy * * *

Wheat *

Cabbage *

Asparagus *

Cucumber *

Chili * *

Potato * * * *

Other vegetables

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Table 12: Gewog wise business opportunities in livestock sector

Livestock

Hun

grel

Lam

gong

Shab

a

Tse

nto

Wan

gcha

ng

Lun

gnyi

Shar

i

Naj

a

Dot

eng

Dok

ar

Prod

uctio

n

Dairy farming * * * * * *

Poultry * * *

Table 13: Gewog wise business opportunities in forestry and others

Forestry & others

Hun

grel

Lam

gong

Shab

a

Tse

nto

Wan

gcha

ng

Lun

gnyi

Shar

i

Naj

a

Dot

eng

Dok

ar

Man

ufac

turi

ng Shilajit *

Mineral water plant *

Clay bricks production *

Balck smith *

Table 14: Gewog wise business opportunities in horticulture sector

Horticulture

Hun

grel

Lam

gong

Shab

a

Tse

nto

Wan

gcha

ng

Lun

gnyi

Shar

i

Naj

a

Dot

eng

Dok

ar

Production Apple * * * * * * * *

Manufacturing

Cold storage for apple * *

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5. Dzongkhag Level Opportunities

4.1 Apple production

4.1.1 Background

Apple farming in Bhutan started since early 1960’s which was introduced from Himachal Pradesh, India. Apple cultivation has now spread all over Bhutan, with majority of orchards in valleys of inner Himalayan zone such as Paro, Thimphu, Bumthang, Haa and Trongsa. Apple has become an important export fruit crop in Bhutan since 1980’s. Apples are generally grown in temperate areas with an elevation ranging from 1800 to 3000 meters above the sea level. As Per 2013 Agricultural statistics, there were around 236,051 fruit bearing apple tress in the country which produced 8,032 MT (Agricultural Statistics, 2013).

Paro Dzongkhag was ranked as the highest producer of apple in the country with 70.9 % of the total national production in 2013 (Agricultural Statistics, 2013). The yield of apple in Paro Dzongkhag was 37/Kg per tree in 2013. Apple is the main cash crop of the farmers of Paro Dzongkhag that generate cash income. Paro Dzongkhag has the potential for apple production through increasing apple orchard as the Dzongkhag has 574 acres of unused dry land.

4.1.2 Market Feasibility

Apple produced from Bhutan has a very stable market. It is exported to India and Bangladesh. The Bhutanese apple has comparative advantage in the international market as the produce is purely organic and has good taste. The farmers with high production sell in Phuentsholing through private auctioning. The local Indian vendors from the border towns of India participate for apple auction and export to Bangladesh. The farmers who produce less sell their produce in the local markets. The low-grade fruit, including fruit rejected for export are sold locally at very low price. There is the potential for upcoming cold storage for storing harvested apples to release in the market during off season. The establishment of cold storage at strategic location will help farmers earn more as they could sell the stored apples at high price during off season. The only existing cold storage at National Post Harvest Centre (NPHC), Bonday is not available for farmers due to limited space.

The orchard management venture run by private firms will be good business opportunity. The entrepreneurs can hire orchard farms from farmers for carrying out the management practices with the use of latest technology. The implementation of such practices will help farmers to increase the yield and production level.

4.1.3 Technical Assessment

The main commercial varieties such as Red Free, Lob, Red Delicious, Red Chief, Jonatthan, Granny Smith and Golden Delicious are cultivated in the Dzongkhag. However, Red delicious and golden delicious is common in Bhutan. Lob is recently introduced in Bhutan. The pollinizer varieties of apple trees are also provided to the farmers through extension system. The ecological and economic value of pollination

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in apple farming is very important for more fruiting. Despite the prevalence of natural insect pollinators, farmers also started keeping colonies of honey bees for apple pollination.

Apple is mainly propagated through grafting and budding techniques. The periodic applying of manures and chemical fertilizers helps for growth and fruiting. The recommended fertilizers such as Single Super Phosphate (SSP) and Muriate of Potash (MOP) are applied under light irrigation to stimulate uptake of nutrients. Calcium Ammonium Nitrate (CAN) is applied in the month of March and June. The proper pruning and fruit thinning contributes to enhancing the fruit quality. Pruning is done during late winter and early spring just before the beginning of active growth. The proper training for farmers on apple orchard management focusing on process to plant seedlings, proper dosage of fertilizers, principles of pruning and thinning, harvest, post-harvest handling and storage are necessary.

4.1.4 Economic Analysis

Apple is the second largest fruit crop in Bhutan that is exported and contributed to the generation of Gross Domestic Product (GDP). Bhutan generated Nu. 98.6 million by exporting apple to India and Bangladesh in 2013 (Department of Revenue and Customs, 2013). The production cost of apple is less compared to other crops as seedlings planted once have life span of many years and orchard management expanses decreases as plant matures and starts giving fruit. The marginal slope land unfit for cultivation of cereals and vegetables are used for planting apples, so the yield seems to be bonus. The farmers have realised that production level of apples can be increased by better pollination, and some farmers started keeping bee colonies for apple pollination despite religious taboos. The harvest of honey from apple orchard seems more and is also another source of income generation. The apple orchard farming and bee rising is a symbiotic association which enables high income generation for the farmers.

4.1.5 Institutional Support

During FGD, farmers reported that they were getting enough support and training on apple farming and want the institutions to continue such supports in the future. The Dzongkhag agriculture sector encourages and facilitates apple production through training of farmers related to apple production, supplying seedlings on cost-sharing basis and inspection of orchard. The farmers also get loan as financial assistance from Bhutan Development Bank Limited (BDBL) at low interest for apple orchard farming. The Dzongkhag has an allocated budget of Nu. 1 million to purchase improved variety of fruit tree seedlings for horticulture development in 11th Five Year Plan (FYP). The Dzongkhag also has an allocated budget of Nu. 2 million for training of farmers on agriculture production.

4.1.6 Challenges for apple production

The Dzongkhag being tourist hot spot, dry lands are being used for construction of resorts and hotels which will have impact on orchard farming. The rise in the price of land due to many developmental activities alleviate people’s interest in orchard

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farming and sell the land where by those lands are ultimately used for construction of buildings. The upcoming developmental activities with expansion of town is viewed as threat for apple orchard farming and the farming has become non sustainable.

The farmers in the valley have noticed an increase in temperature during winter and early spring leading to early flowering of apple trees followed by sudden cold spell with frosts during late spring which accelerate the fruit drop. The climate change due to global warming is the great concern for apple growers in the central Himalayan valleys. The increase in the incidence of pest and diseases, water scarcity and land fragmentation due to division among the family members has the risk of decreasing apple orchard farming.

4.2 Wheat production

4.2.1 Background

Wheat is the third most important cereal crop grown in Bhutan but it is not the preferred staple. The farmers grow as less important subsistence crop and has low yield compared to other south Asian countries. Wheat is usually grown in high altitude, 2500 masl mainly in the valley of Haa, Paro, Thimphu, Wangdiphodrang, Gasa and Bumthang Dzongkhags.

Paro Dzongkhag was ranked third in wheat production in the country with 665 MT which is 13.2 % of the total production in 2013 (Agricultural Statistics, 2013). The harvested area of 645 acres has been used for wheat cultivation and the yield was 1,031 kg/acre. Wheat is a rain fed cereal crop and the Dzongkhag has potential to upscale the production as 574 acres of arable dry land remain fallow.

4.2.2 Market Feasibility

The wheat produced in the country is not even sufficient for domestic consumption. The wheat is converted into wheat flour popularly known as Kabche and sold in the local markets. The wheat flour are of two types, flour prepared from roasted wheat and from raw wheat. The both types of flour are the value added product of wheat and have high demand in the local market. Wheat flour (Kabche) is mainly used for making Torma (ritual cake). The different kinds of rituals are conducted in Bhutan and have high demand for wheat flour.

The value added product of wheat, atta and maida is imported from India. These two products are mainly consumed in the form of rooti (dried bread). Bhutan also import raw wheat for brewing local alcohol and for animal feed processing. The Dzongkhag has an opportunity for establishing flour processing unit. The production of wheat flour in the country will substitute the import of wheat flour (Atta and Maida) and improve balance of trade.

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4.2.3 Technical Assessment

The varieties such as winter wheat, spring wheat, barley and rye are cultivated in Bhutan. The wheat is mainly grown in winter and the spring wheat is cultivated the most in Bhutan. The poor land preparation practices, late sowing of seeds and rare use of inorganic fertilizers reduce the production level. The farmers usually use Farm Yard Manure (FYM) and it does not significantly increase the yield. This is mainly due to the quality of FYM and less time needed to make nutrients available to the plants. The FYM has long-term effect and sustainable for agricultural cultivation. Wheat is an exhaustive crop that removes large quantities of nutrients from the soil and fewer nutrients are left for next crop. To increase the yield of wheat, the use of inorganic fertilizers should be emphasized but in reasonable way. If sufficient inputs are not catered for wheat cultivation, there is high probability for the decline of future productivity.

4.2.4 Economic Analysis

Bhutan imported wheat flour (Atta and Maida) worth Nu. 152.6 million in 2013 (DRC, 2013). The heavy import of wheat and wheat related products results in trade deficit. The traditional method of cultivation is labour intensive and incurs more expenditure. The implementation of cost and labour reducing technology is necessary. The present wheat production is not economical in terms of net benefit based on present farming practices. The construction of small scale mills near the wheat promotional areas would be more economical. The traditional method of milling the wheat flour involves significant cost.

4.3 Paddy Production

4.3.1 Background

Rice is the staple crop grown in Bhutan and farmers grow different varieties of rice. The rice is grown in a wide range of elevation from subtropical lowlands (150 m above sea level) in the south to elevations as high as 2600 m above sea level in the north (Lhendup et al, 2008). The major constraint for achieving national food security and self sufficiency is low yielding (Lhendup et al, 2009). Enhancing rice production is one of the priority goals of the Ministry of Agriculture (Ghimirary et al, 2013).

Paro Dzongkhag is also known for paddy cultivation. Paro Dzongkhag produced 9,891 MT of rice which is 13.1% of the national rice production in the year 2013 (Agriculture statistics, 2013). The Dzongkhag was ranked second in rice production in the country and has the highest yield with 2,329 Kg/acre.

4.3.2 Market feasibility

The production of rice in the country is insufficient to meet domestic consumption in the country. The remaining rice deficit in the country is met through import from

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India. As per the import statistical records of 2013, Bhutan imported 72,588.96 MT of rice worth Nu. 2,032.13 million. The import statistical records of 2013 reveal that there is good market for the rice produced from Bhutan. The farmers have the opportunity to cultivate paddy in large scale to substitute the import of rice from India provided with good farming facilities.

The rice produce from the native land of Bhutan is considered as a very special quality for its taste. It has good market within the country as well as outside the country. In the year 2013, 117 MT of Red rice (Yuechum) was exported to United States of America generating income of Nu.13.05 million (DRC, 2013). There is no proper packaging for the Bhutanese rice to export with added value. There is an opportunity for private ventures to come up for rice packaging units with proper labeling.

4.3.3 Technical assessment

Production process is traditional labor intensive method that uses simple tools. Due to labor shortage, labor cost in the village is high. It contributes to higher per unit cost of the crops. Farm mechanization is feasible only in some parts with plain and gentle sloppy land. The farm mechanization with the use of power tillers and harvest machine will be of immense assistance to the present farming.

The supply of high yielding seed varieties, herbicides and pesticides and construction of irrigation channels by the government agencies could be other technical assistance.

4.3.4 Challenges for paddy cultivation

Farming in Bhutan is exceptionally challenged by wildlife every year. The wild boar, deer, and monkeys are major threat to their farms. As per Agriculture statistics 2013, 128 MT of rice was estimated as lost to the wild animals. The water scarcity for irrigation in Doteng and Shari Gewog was also another constraint for paddy cultivation. The cultivation of paddy has become dependent to monsoon rain. The yield of paddy increases in the year with heavy monsoon and it is not sustainable.

4.4 Vegetable cultivation

4.4.1 Background

The vegetable production was limited to kitchen gardening till 1970’s. In 1980’s release and diversification of vegetable cultivation of new crops like cabbage, cauliflower, peas, beans, asparagus, broccoli, onion and carrots was started (Tobgay, 2006). Here after, the people started generating cash income and nutrition of the rural population was improved. Due to increase in awareness of nutritional and economic importance, vegetable production is expanding significantly.

Paro Dzongkhag ranked top producer of chili (1,963 MT) and cabbage (995 MT) in the year 2013 (Agriculture statistics, 2013). Naja Gewog is the top producer of cabbage in the Dzongkhag. The other vegetables such as cauliflower, green leaves, broccoli, radish, potato, bean and brinjal are very common to all Gewogs and level of production is also high. Vegetables production is very high during summer and very

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less in winter. The farmers earn more income in summer through the sale of vegetables. The farmers have good opportunity in vegetable business as the diverse agro-ecological condition favor cultivation of vegetables.

4.4.2 Market Feasibility

The locally produced vegetables have good market within the country; the current trend shows that Bhutanese import vegetables from India in large quantity. During summer season, the cabbage produced from Naja Gewog is exported to India with support from Food Corporation of Bhutan. The high demand for locally produced vegetables is mainly due to good taste, freshness and organic in nature. The vegetables from every household are collected by vegetable vendors and supplied to vegetable dealers in Thimphu. The farmers do not have any market problem for their produce. However, the market price for locally produced vegetables is high.

The chili produced from Paro valley is very well known and has good market. The fully ripen chilies are dried in the sun and sold in the market during off season. The green chilies are also boiled and dried in the sun. The boiled sun dried chili fetches high market price. There is also institutional support from Agriculture Department on marketing of vegetables which make effective and efficient marketing.

4.4.4 Technical Feasibility

The agriculture productivity in Bhutan is constrained by rugged terrain, traditional farming techniques, illiterate farmers, insufficient water supply and small land holdings. The agriculture activities are labor intensive and increases the production cost. The time has come for Bhutanese farmers to upscale agriculture production with the use of modern farming inputs. To uphold agriculture ministry’s mandate and for poverty reduction, ministry of agriculture is in the verge of mechanizing agriculture production with the use of latest technologies.

In spite of large vegetable production from Paro Dzongkhag, the farmers still practice the traditional farming style. The supply of high yielding seed varieties, construction of irrigation channels and construction of green house for raising seedlings will be an immense technical assistance. The use of herbicides and pesticides are less preferred as Bhutan prioritizes organic farming. The use of such chemicals with optimum level should be look upon for enhancing the production level as insects and pest are the main threat for vegetable production. The formation of farmers’ group with an initiative from department concerned will be an immense strategy of up scaling vegetable production.

The Agriculture Department in the Dzongkhag also takes more responsibilities and initiatives for vegetable production. In the 11th Five Year Plan, Dzongkhag has allocated a budget of Nu. 1 million for supply of improved variety of vegetable seeds.

4.4.5 Challenges for vegetable production

The availability of cheap Indian vegetables in the market has possibility of losing the market. There is no taxation for import of vegetables from India and the Bhutanese vegetable vendors prefer selling Indian vegetables. The infertile soil with rugged

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terrain and insufficient water for irrigation is the prominent challenge for vegetable cultivation. The crop raiding by wild life and increase in the incidence of pest and diseases is also the major threat. If all these challenges are well catered, this will help boost vegetable production in the Dzongkhag which will ultimately achieve the national goal of becoming self-sufficient.

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HUNGREL GEWOG

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1. Gewog Profile

Hungrel Gewog under Paro Dzongkhag is the smallest Gewog. It is bordered by Dopshari Gewog to the north-west and Wangchang Gewog to the south-west. The Gewog has 5 Chiwogs spreading over an area of about 3.6 sq km. It has 247 registered households. The Gewog has 100% telecommunication services and electricity connection. The Gewog is located in the immediate periphery of Paro town and just a few metres away from the Dzongkhag administrative block. The Gewog has 1 Secondary School, 1 Community Primary School, and 1 wooden bridge. Besides the health and educational infrastructures, the Gewog also has Agriculture, Livestock and Forest Extension services being operated from the Gewog office at Hungrel. The paddy is a major cereal crop being grown in the Gewog. Amongst the horticulture apple is found to be the major fruit. The Gewog also grows a variety of vegetables like potato, chili, bean, cabbage, brinjal, and turnip; and vegetable is a significant source of income for the people. The livestock population is dominated by the local breeds only.

2. Existing Resource Inventory 2.1 Agriculture

Hungrel Gewog’s main cereal crop cultivation is paddy (sata/china, kaap & naap). The paddy named sata is cultivated by maximum of the households (hh) owing to its advantage of secure grains not falling while harvesting. The highest producer of rice in the Gewog is Hungrel followed by Gaupey and Lungchuna (despite its small paddy land area but has favorable land and climatic condition). The rice fetches Nu. 100 per kilogram in the market. About 70% of the paddy in the Gewog is sold after processing into rice but some sell as a grain in a small quantity. The yield of paddy has improved due to modern saplings and farming methodologies. Goenkha Chiwog and Chubjakha Chiwogs have no paddy activity and rely only on potato, wheat, millet, buckwheat, turnip, and radish cultivation.

Of all the vegetables, potato is grown on a small scale since it is cultivated in the paddy field. People have to create space for the paddy work even before the potato gets fully matured. Main vegetable is chilli (Khujula ema & Boegaapi ema), beans, cabbage, and brinjal. Chili and beans are grown on a commercial scale and sold mostly in the local market; rest of it is taken to Thimphu and Phuntsholing markets. Compared to the local market Thimphu and Phuntsholing markets are said to fetch good price for the vegetables. The first harvest of chili fetches Nu. 500 in the local market and Nu. 800 in the Thimphu market, per sack of chili which is equivalent to 20 kilograms. It is mostly sold green. A kilogram of beans fetch Nu. 80 for the first harvest and about Nu. 20 – Nu. 30 for the later harvests. Maximum of the commercial vegetables are grown in the paddy fields but for domestic consumption it is grown in the kitchen gardens. This is due to the lack of irrigational channel in the dry land plus there is a severe water shortage in the Chiwogs. Three Gewog share the same water source; Hungrel being the last Gewog by location receives the water in a small quantity.

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Some of the severe challenges faced by the people of Hungrel Gewog in agriculture activities and agro-based business are wild animal intrusion, water scarcity, and easily penetrate able market for the produces. Currently, there are not many people living in Goenkha Chiwog, only 1-2 elderly people dwell there. This is because the village caught fire in the past and residents could not re-establish their settlement. Further, wild animal intrusion especially wild boar and bear has highly put their livelihood at stake discouraging the resettlement. Most of the Goenkha people now reside on their farm lands located in the periphery of Paro town. Shanga Lago and Changzingkha villages under Hungrel Gewog have left about 3-4 acres of paddy land fallow due to lack of water making any agriculture activity impossible. There is also a challenge faced in selling the produce as the municipal does not allow farmers to sell their produce on the road sides of the town. Though there is one vegetable market shed in the town, it seems to make no business sense for the small quantity produces; these farmers prefer selling it from the road sides of the town.

The figure 2 gives the production volume of the major cereal crops and vegetables produced in the Gewog in 2011, which might not be relevant for production scenario of 2014 but still serves as an indicator in the absence of production data for the later years.

2.2 Livestock

Source: DOA, MOAF, 2011

Hungrel Gewog has not many dairy groups. The dairy population is limited only to local breeds (beyla) that too found in less than 10 households reared in 2-3 numbers on an average. This is due to lack of grazing land since the Gewog is situated in the town area. However, the existing dairy population’s produce is sufficient to cater to the demands of the community in the Gewog. There is no poultry farm and farmers buy eggs from Paro market.

2.2 Forestry

The Gewog’s main forest coverage is blue pine. The Gewog has established one Community Forest (CF) named Hungrel Drongdey Naktsel with over 100 members. The available trees in the CF as of now are blue pine, Bkashing, and Bjishing. Chubjakha Chiwog in particular has mushroom mainly sisi which people collect for sale, in a small quantity, at Nu. 300 per small Dhaka plate during the first harvest. Another mushroom named Bjichu Kangru found in Chubjakha Chiwog also fetches Nu. 80 per small Dhaka plate.

0.000!50.000!2011!

Vegetable Production (MT), 2011

Potato!0!200!2011!

Cereal Crops procution (MT), 2011

Paddy!

Figure 2: Production volume of major crops

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2.3 Horticulture

The apple is a major fruit being produced in the Gewog, although other fruits like Goendrum, peach, and Andrey are also found in small numbers. On an average each household has 50-60 apple trees. The climatic conditions, soil and topography also appear to be suitable for apple production in the Gewog, except in Goenkha Chiwog.

The business model for selling apple is either whole sale guessing at the fruits on the trees (bungtshong) or measured by boxes sold to the Bangladesh dealers. Those rejected by them are sold to Bondey Apple Farm in Paro.

The figure 2 gives the production volume of the major fruits that was produced in the Gewog in 2011, which might not be relevant for the production scenario of 2014 but still serves as an indicator in the absence of production data for the later years.

Source: DOA, MOAF, 2013

2.4 Arts and Crafts

During the FGD, the people indicated having not many artisans and craftsman other than 2 embroidery artists in Chubjakha Chiwog, and few cloth weavers and masonries in Hungrel and Gaupey Chiwogs. However, their skills have not yet been tested on business ground other than working for others. The two embroider artists basically do not do any embroidery works as of now.

The Gewog has one community Forest group named Hungrel Drongdey Naktsel with over 100 members.

3. Business Ideas generated from Profiling, Focus Group Discussion and Key Informant interview

From the Focus Group Discussion (FGD) and Key Informant Interviews (KI), the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, and horticulture. Tshokpas, village elders and Gewog sector officials were asked to pin point the products that their villages mainly grow and are abundantly available. The main products which

0.000!

100.000!

200.000!

2011!

Fruit Production (MT), 2011

Apple!

Peach!

Pear!

Figure 3: Production for major fruits, 2011

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may have business opportunity to be produced on a commercial scale are listed Chiwog wise within the Table 15.

Table 15: Business idea generated through FGD

Sl. No. Chiwogs

Agriculture & Horticulture Livestock Forestry

Arts & crafts

1 Chubjakha Potato, apple Dairy, Poultry Blue pine

2

Gaupey

Paddy, chili, beans, cabbage, brinjal, potato

Apple, persimmon

Dairy: local beyla

Masonry

3 Hungrel

Paddy, chili, beans, cabbage, brinjal, potato,

Apple Dairy: local beyla

1 Community Forest

Few cloth weavers

4 Goenkha Wheat, millet, turnip, gayra

Dairy: local beyla

5 Lungchuna

Paddy

Apple Dairy: local beyla

2 Embroidery artists (tsemru thumi)

4. Attractiveness matrix for the existing products

Based on the business ideas generated from the FGD and KI, which were further validated through the production data, apple and paddy is identified as the most attractive products under Hungrel Gewog which has potential for business opportunities. The vegetables such as chili, beans, cabbage, brinjal, and potato also have huge business opportunity.

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Table 16: Attractiveness Matrix Po

tent

ial t

o Pr

oduc

e Hig

h

Apple, Paddy

Med

ium

Chilli, Potato, Cabbage, Beans

Low

Wheat, Millet, Turnip, Gayra

Low Medium High

Potential Market Demand

5. Business Opportunity Scanning and Validation

a. Apple i. Production

The apple is a major fruit being produced in the Gewog. On an average each household has 50-60 apple trees. The climatic conditions, soil and topography also appear to be suitable for apple production in the Gewog, except in Goenkha Chiwog.

5.1.2 Market

Currently, the apple is sold to traders/exporters on a bulk wholesale where the price is estimated based on the number of fruit trees and productivity. Alternatively the apples are picked and packaged in the boxes and sold to exporters who sell the product through the auction yard at Phuntsholing. The products rejected by the traders are stored at Bondey cold storage and sold in the local market.

5.2 Paddy

5.2.1 Production

Hungrel Chiwog is the largest producer of paddy followed by Gaupel and Lungchuna Chiwog. The latest official production data available is for 2011 which indicates that Hungrel Gewog produced over 100 metric tons of paddies. The yield per acre has increased over time due to use of improved seeds and production techniques.

5.2.2 Market

About 70% of the total paddy produced is processed into rice and sold in the local market. A kilogram of rice sells for an average of Nu.67. The people have reported that they do not have any problem in selling the paddy products. Therefore, paddy cultivation has a huge local market.

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5.3 Vegetables

5.3.1 Production

The information emerging out of FGD also indicates that vegetables like chili, cabbage, cauliflower and carrot are highly productive. The vegetables are sold through the vegetable shed established at Paro town. The Hungrel Gewog is closest to the Paro town and people do not sell in large quantity at one time. The vegetable is taken in a smaller amount and sold off thereby reducing the waste.

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LAMGONG GEWOG

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1. Gewog Profile

Lamgong Gewog comprises of five Chiwogs (Ngawashom, Kichu-Gangju, Chukha, Tshemdom, and Jagartheng) and has a total area of 48.8 sq.km. Its total population is about 3,336 people dwelling in 606 households. About 99% of the Gewog is connected with farm road (about 16 km), electricity, and telecommunications networks. The main source of income generation is from potato and apple cultivation. There is 1 RNR Centre, 1 Livestock Extension Centre, 5 irrigation channels, 1 ORC, 1 Middle Secondary School, 1 Lower Secondary School, 1 NFE Centre, 2 suspension bridges. There are several dairy farms and poultry farms. There are three Community Forests comprising of blue pine, Sisi Shing, and rhododendron trees.

2. Existing Resource Inventor 2.1 Agriculture

Lamgong Gewog’s main cereal crop is paddy (kaap, maap, and satra/china) except in Tshemdom Chiwog. Households are engaged in producing rice in huge quantity, which is then taken to Thimphu market and yet there are still few households who buy rice from the market due to limited landholdings.

The Gewog’s main source of income is also from the sale of vegetables. Potato is the main activity in Ngawashom Chiwog where70-80% of households are engaged in potato production on a commercial scale. Majority of the potato is sold in Phuntsholing market. Chili is the next major vegetable, followed by cabbage, brinjal, radish, and sag for commercial purposes in the Chiwog. Chili is taken to Thimphu, Phuntsholing and Paro markets. FDG suggested that manufacturing units such as potato related industry; chili related manufacturing units such as chili powder and ezey, puff rice making machines from rice would be some of the viably enterprising initiative.

The Gewog community grows vegetables on the dry land as well as wet land during off season for paddy. The Gewog has sufficient land area for vegetables alone. Each household in Chukha Chiwog has a minimum of 30-40 decimal of land for growing chili. About 30-40 people from Tshemdom and Chukha Chiwogs deal with selling vegetable products from Paro to Thimphu on a weekly basis. Tshemdom Chiwog has more share of land especially in terms of wet land and vegetable gardens. Agriculture related works are done with the help of power tiller and also they use machines for harvesting the yields.

Jagarthang Chiwog mainly grows chili, due to the easy work and good income compared to other crops. One household alone, who dedicatedly worked with chili, has a record of earning Nu. 200,000 from 35 decimal of land in a year. Jagarthang’s market advantage for chili is due to its harvest time being before the chili from Phuntsholing surface in the market but after Punakha Dzongkhag’s chili stops in the market. Thus, they enjoy the autonomy of being the sole supplier of chili in the market from 6-8 month of the year. The chilies are sold green and not many people dry it. The reason being that the chilies grown in the paddy field do not last enough on

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the trees and start falling naturally before it gets ripened. Chili is sold mainly in Phuntsholing and in the Indian markets.

The challenge related to chili and potato is the market where the produce is not fetching good price in the competitive market mainly due to the imported goods. Further most of the vegetables are produced during the time every other Gewogs, Dzongkhags (Thimphu, Wangdue, and Punakha) and imported vegetables are surfacing in the market, thereby affecting the price in such a competitive market. There is also a lack of proper market place for selling the produce. Some of the Ngawashom Chiwog households could not grow potato or any other vegetables in spite of available land and human resources; due to financial constraints to buy the seeds.

The figure 4 gives the production volume of the major cereal crops and vegetables was produced in the Gewog in 2011, which might not be relevant for the production scenario of 2014 but still serves as an indicator in the absence of production data for later years:

2.2 Livestock

Lamgong Gewog’s cattle population is mostly jersey cross followed by few local breeds. The Gewog has one Dairy Farm Tshokpa of 60-70 members with a nominated chairman who is also the dealer responsible for collecting the milk. The collected milk is taken to Thimphu. The market for selling milk for the Gewog has never been a problem. The pasture development area is comfortably done in the apple orchards and other unutilized dry lands. The grass grown in 15-16 decimal of pasture land has the capacity of feeding 7-8 jerseys throughout the year. During FGD, the participants said that dairy farming also has supplemented advantage in producing manure for the field. This, as voiced by the FGD is probably one of the reasons why people take interest in dairy farming. Further, getting timely payment from the dealer on a monthly basis also encourages the activity. Tshemdom has the maximum of jersey population

0.000!

100.000!

200.000!

300.000!

400.000!

2011!

Lamgong Gewog Vegetable Production (MT), 2011

Potato!

Chilli!

Cabbage!

Radish!

Turnip!0!

1,000!

2,000!

3,000!

2011!

Lamgong Gewog Cereal Crop Production (MT), 2011

Paddy!

Wheat!

Barley!

Figure 4: Production of major crops

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followed by Ngawashom in the Gewog. Chukha Chiwog has a good scope for dairy farming owing to its favorable climatic condition and landscape and hopefully, many farmers have put up proposal to BOIC for loans which is yet to be approved.

Besides dairy farming, the people in the Gewog are hugely engaged in poultry farming. There are numbers of poultry farms in each Chiwog: one poultry farm in Ngawashomo Chiwog, one in Kichu-Gangju Chiwog with 8, 00 birds, 4 poultry farms in Chukha Chiwog with 80, 130, 200, and 300 birds each, 4-5 poultry farms with 300 birds on average in Tshemdom Chiwog, and two poultry farms in Jagarthang Chiwog with 200 birds each. The eggs are sold in Paro and Thimphu markets.

The figure 5 below shows the latest year’s (2013) milk production scale of the Gewog:

Figure 5: Lamgong Gewog dairy production

Source: DOL, MOAF, 2013

2.3 Forestry

The Gewog has several forest produces. Gangju Chiwog mainly has a mushroom locally named shingi shamu. In Chukha Chiwog, mushrooms such as Sisi, Dungshing, and Sokey Shamu are common. About 3-4 households have sokey shamu cultivation farm in Chukha Chiwog. Jagarthang and Gangju Chiwog have one Community Forest (CF) with 180 members. One of the produce from the CF is Sangay Shamu collected in a small quantity mainly by Chukha and Tshemdom Chiwogs and it fetches Nu.300 per kg.

A mushroom named sew-shamu grown on a thorn like plant is also available in the Gewog. A phuta (Bhutanese measuring tool) of it is said to fetch Nu.2, 500 when sold in the international markets. However, it is found in very minimum quantity (maximum 2-3 kg in a year).

2.4 Horticulture

Coming to horticulture, apple is a major commercial fruit grown in the Gewog. All the Chiwogs have apple trees and the fruits are sold in the local and Thimphu markets.

0!

100000!

200000!

300000!

2013!

Lamgong Gewog Dairy Production, 2013

Produced!

!Processing!!

Consumed!!

Sold!!

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There are strawberries cultivated in 4-5 terraces of paddy field in Tshemdom Chiwog, Kichu and Chukha Chiwogs grown only in the summer season. This berry need not be planted annually as it grows on its own. However, comparing berry to paddy, it is said that paddy has more economic advantages as well as it has several usages of its by-products such as straw and husks.

The figure 6 gives the production volume of the major fruits that was produced in the Gewog in 2013, which serves as an indicator of the production volume in Lamgong Gewog alone:

Figure 6: Production volume of major fruits

2.5 Arts and Crafts

The Gewog has no record of arts and crafts related activities and resources till date.

3. Business Ideas generated from Profiling, Focus Group Discussion and Key Informant interview

In the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry livestock, and horticulture. Tshokpas, village elders and Gewog sector officials were asked to pin point the products that their villages mainly grow and are abundantly available. The main products which may have business opportunity to be produced on a commercial scale are listed Chiwog wise within the table.

0.000!

500.000!

1,000.000!

1,500.000!

2,000.000!

2,500.000!

3,000.000!

2011!

Lamgong Gewog Fruit Produciton (MT)

Apple!

Peach!

Pear!

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Table 17: Business idea generated through FGD

Sl. No. Chiwogs Agriculture Livestock Forestry Horticulture

Arts & Crafts

1 Ngawashom

Paddy (kaap, China/satra Potato, chili, cabbage, brinjal, radish, sag

-Cattle: jersey cross

-One poultry farm

Mushroom: shingi,

Sisi, dungshing, sokey,

sew-shamu

Apple

No

reco

rd o

f art

and

craf

ts

2 Kichu-Gangju

Paddy, chili, and potato.

One poultry (800 birds)

-One CF -Mushroom: Shingi Shamu

apple

3 Chukha

paddy (maap) chili*, cabbage*, sag, broccoli Potato*

Cattle: jersey-cross,

4 poultry farms

3-4 sokey shamu farm

Apple. straw berries

4 Tshemdom Chili, paddy.

Cattle: Jersey Cross

4-5 poultry farm

Apple, straw berries

Mushroom: sangay shamu

5 Jagarthang Paddy, chili

-Cattle: jersey cross

-Two poultry farms

One CF (180)

Mushroom: sangay shamu

Apple

4. Attractiveness matrix for the existing products

Based on the business ideas generated from the FGD and KI, which were further validated through the production data; dairy, paddy, and apple, is identified as the most attractive products under Lamgong Gewog which has potential for business

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opportunities. The vegetables such as chili, beans, cabbage, brinjal, and potato also have huge business opportunity.

Table 18: Attractiveness Matrix Po

tent

ial t

o Pr

oduc

e Hig

h

Paddy, dairy, poultry apple,

chili, Potato brinjal, radish, cabbage, sag, broccoli, mushroom (sokey)

Med

ium

Straw berries

Low

Low Medium High

Potential Market Demand

5. Business Opportunity Scanning and Validation 5.1 Paddy

5.1.1 Production

Paddy is a main cereal crop grown under Lamgong Geowg. It is cultivated in all the Chiwogs except Tshemdom Chiwog. Lamgong is the largest producer of paddy under Paro Dzongkhag. The latest official production data available is for 2011 which indicates that Lamgong Gewog has produced 2,680 metric tons of paddies. Over the period, the paddy productivity has increased due to use of improved seeds and production techniques.

5.1.2 Market

Currently, the majority of the excess rice is sold at Thimphu market through CFM. It is also sold at Paro market. People have indicated that they have no problem selling off the product. Since Bhutan is a grain deficit nation, any increase in production would contribute to improving the food security situation of the nation and therefore, guarantee a business opportunity.

5.2 Dairy Farming 5.2.1 Production

The Gewog has a farmers’ dairy production and marketing group where the jersey cross cattle dominates the cattle population. The fodder is grown within the apple orchard. It has been informed during FGD that fodder grown over 15-16 decimal land

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can produce enough fodder to feed 7-8 jersey for a year. The milk is collected through centralized collection unit and supplied to a seller at Thimphu. People have faced no problem in selling all the milk. The dairy farming also produces manure required for crops and vegetable production. The latest production data available is for 2011 which indicates that Lamgong Gewog has produced 245,410 liters of milk. It is the third highest producer of milk under Paro Dzongkhag.

5.2.2 Market

The milk is currently sold to milk suppliers and distributors at Thimphu and people have indicated that they faced no problem so far in selling the milk in market. Once the milk market is saturated, the milk may be processed into other products like butter and cheese using better technology and packaging.

5.3 Poultry

5.3.1 Production

The poultry farming is also a significant source of income for the people of Lamgong Gewog. Every Chiwog maintains the poultry farms aimed at egg production. There is a poultry farm each at Ngawashomo and Kichu-Gangju Chiwogs with an average of 800 birds. There are four poultry farms at Chukha Chiwog with 80, 130, 200, and 300 birds respectively. Tshemdom Chiwog has another four poultry farms with an average of 300 birds and two poultry farms in Jagarthang Chiwog with 200 birds each. In 2013 Lamgong Gewog produced a total of 14,436 trays of egg. Most of the poultry farms were established after 2013 and the egg production would have increased significantly since then.

5.3.2 Makret

Currently, the eggs are sold in Paro and Thimphu market and people have indicated that there is no problem in selling the eggs. Therefore, it indicates that local market is sufficient to absorb the egg production. The nation is self sufficient in egg production and does not import any eggs.

6. Apple

6.1 Production

The apple is a major fruit being grown under the Gewog. The 2011 production data shows that Lamgong Gewog has produced a total of 2,565 metric tons of apple. The entire product is either sold at Phuntsholing through auction yard or sold to the traders/exporters that come to the farm to collect the products.

6.1.2 Market

The Phuntsholing auction yard, Thimphu and Paro are the major market for apple. In order to cushion the producers from price fluctuation in the market, the low graded apple which does not fetch much can be processed into apple juice using simple low cost technology which could be sold within the local market.

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7. Chili

7.1 Production

Lamgong Gewog is the second largest producer of Chili after Doga Gewog. In 2011 Lamgong Gewog produced a total of 231 metric tons. The chili is sold at Phuntsholing and Thimphu, besides the local market at Paro. The chili grown at Jagarthang Chiwog has a particular market advantage due to its harvest time. The Jagarthang chili is harvested just before Indian chili is harvested and floods the Bhutanese market and after the chili from Punakha disappears from the market. Taking advantage of this typical season advantage, some households earned as much as Nu.200, 000 from the chili cultivated on 35 decimal land in 2014.

7.2.2 Market

The chili is sold mostly fresh. Since chili is produced and sold when competition from other producers are low, there appears to be no market problem. There is no need to process the chili into other processed chili products since fresh chili is sold off without any problem.

8. Potato 8.1 Production

The potato is also cultivated on a large scale in the Gewog. Close to 80% of the households are engaged in potato production on a commercial scale. The potato is sold through the auction yard at Phuntsholing. The latest production data available is for 2011 that indicates that the Gewog has produced about 313 metric tons of potato. Some people are unable to cultivate potato despite having big land holding because they are unable to buy seeds due to the lack of money. Therefore, easy access to finance would bring about additional output level.

8.2.2 Market

The people have suggested that potato processing unit such as chips making would be feasible. However, unless the chip processing is done using high technology to produce the chips as good as Indian products currently flooding the market, there seems to be no market for chips produced using simple low cost technology. Moreover, the potato specialists have also indicated that Bhutanese potato is not suitable for making chips. Therefore, it appears that potato producers have to continue selling their product through auction yard.

9. Vegetables

9.1 Production

The soil fertility also supports high productivity of all kinds of vegetables like broccoli, cauliflower, cabbage, radish and carrot. The people of the Gewog grow vegetables on the dry land as well as wet land during off season for paddy.

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9.1.2 Market

Currently, the vegetables are sold at Paro through the market shed built at Paro town and Thimphu through CFM. People face the problem of not being able to sell off all the products and there is high wastage because of the short shelf life of the vegetables. Therefore, either a cold storage for vegetables or any processing unit for vegetables, including drying, could be a business opportunity.

!

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SHABA GEWOG

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1. Gewog Profile

Shaba Gewog comprises of five Chiwogs (Khasa_Gongju, Bji_Phuba, Bara_Zhungar, Dochetey_Neyphu, and Drukdingkha) and has a total area of 76.4 sq. Km. It’s elevation ranges from 2,200 to 2,850 metres above sea level. The Gewog is bordered by Lamgong Gewog to the north, Lungyi Gewog to the west and Dogar Gewog in the east. The main agricultural land is dominated by wetland followed by dry land. The Gewog has a total of 253 households with 100% electricity and telecommunication networks. It has a Livestock Extension Office Centre, and a Agriculture Extension Office Centre providing extension services to the Gewog. It shares ORC services with Tsento Gewog. There is 1 Middle Secondary School, 1 Lower secondary School, 1 BHU, 2 suspension bridges, and 3 farm roads comprising of 11 kms.

2. Existing Resource Inventory

2.1 Agriculture

Like any other Gewog in Paro, Shaba Gewog’s main cereal crop is paddy though only sold in a small quantity from the surplus produce. An average paddy land holding is 2-3 acres but Khasa_Gongju Chiwog has no paddy at all. Docheytey_Neyphu Chiwog also cultivates maize and generates a small income out of it.

The Gewog’s main source of income is generated from the sale of vegetables. The practices of growing vegetables vary from one Chiwog to another in terms of vegetable concentration, harvest season advantage, and the challenges.

Khasa_Gongju Chiwog mainly grows potato and carrot, followed by peas, cabbage. Indeed, it is the highest producer of vegetables on a commercial scale in the Gewog. In a year a household has a record of earning Nu.500, 000 to 600, 000 mainly from the sale of potato, cabbage, carrot and peas exported mainly to the Phuntsholing market.

Bji_Phuba Chiwog mainly grows chili followed by cabbage, pumpkin, and Olachoto. The community concentrates mainly on growing Boegaapi Ema or Poengi Ema which is the sole income generating spice. It is large in size and has a wrinkled appearance. It is cultivated over 70-80% of the total land by every household in the Chiwog. It is sold in Paro, Thimphu, and Phuntsholing markets on weekends thus earning a few thousands. The dried chili is sold more than the green ones as it fetches higher prices; Nu. 500- Nu. 600 per kg during season and Nu. 1,000 during off season. When sold green it fetches only about Nu. 40-50. Boegapi Ema’s special quality is its resistance to getting over cooked and its distinct flavor from other chilies. Every household in the Chiwog has a record of drying almost 70-80 sacks of Boegapi Ema annually.

Bara_Zhungkahar Chiwog mainly cultivates paddy. The surplus rice is sold by the majority of the household. Since there is not much dry land in the Chiwog people grow all sorts of vegetables such as asparagus, chili, tomato, and beans on a small scale in their kitchen garden and on reserved area of paddy fields (over 20-25 decimals). However, if certain portion of paddy land is forgone for vegetables on a rotational basis, it can serve as the best alternative for producing rice for self

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sustenance and vegetables for cash income. At present, in a week they sell one to two sacks of vegetables which are sufficient to meet their basic weekly expenses.

Docheytey_Neyphu Chiwog’s sole cash earning vegetable is potato, grown mainly in Neyphu village. However, its total harvest is badly challenged by the wild animal intrusion particularly wild boar. The farmers land up guarding the field almost 24/7 incurring a huge loss of labor. Boegapi Ema is hugely cultivated in this Chiwog. During the 5th and 6th month of Bhutanese calendar, most of the people in this Chiwog engage in growing tomato for commercial purposes.

Drukdingkha Chiwog’s specialty is in agriculture, especially producing cucumber locally called as Shaapi Goenchum surfacing in the market in the 4th month of the Bhutanese calendar. The Chiwog is known not only for producing the first batch of cucumber amongst the Chiwogs and Gewogs of the Dzongkhag but also is the first producer of peach and asparagus. The land and climatic condition is said to be most favorable in the Chiwog compared to others for growing these cash crops. Therefore, the Chiwog enjoys a complete autonomy of market advantage thereby fetching high prices. A household has a record of earning Nu. 40, 000 - Nu.50, 000 in a year from the sale of cucumber alone. The first harvest fetches Nu. 100-200. However, the produce is sold in an unstructured manner by taking it to the vegetable vending shed in the locality, then to Paro town and to Thimphu market at the cost of individual transportation. Other general vegetables such as beans are also grown and 20-30 sacks of beans are sold by each household in a week. The Chiwog currently has no water problem.

The figure 7 gives the production volume of the major cereal crops and vegetables that was produced in the Gewog in 2011, which might not be relevant for the production scenario of 2014 but still serves as an indicator in the absence of production data for later years.

Figure 7: Production of major crops and vegetables

0.000!100.000!200.000!300.000!400.000!500.000!600.000!700.000!800.000!900.000!

2011!

Shaba Gewog Paddy and Vegetable Production (MT), 2011

Potato!

Chilli!

Cabbage!

Asparagus!

Tomato!

Paddy!

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2.2 Livestock

Shaba Gewog is also known for having dairy milk production, solely from jersey breed, as their major source of income. Drukdingkha Chiwog has the maximum jersey population totaling over 100 numbers. The Gewog has one dairy Tshogpa with 44 members from all across the Chiwogs. There is one milk dealer buying milk from the farmers and selling it to Thimphu dairy shops. The left over milk is sent to yoghurt processing unit established in the Chiwog. The yoghurt is sold mainly in Paro airport by the same dealer. Neyphu village has one private dairy farm with 14 jerseys.

The Gewog has over 12 poultry farms with an average number of 300-400 birds. An average egg production in a day in the Gewog is calculated to be around 200. The eggs are sold in the Paro market but some are taken to Thimphu. So far selling any of the dairy milk and eggs has not been a problem for the community in the Gewog.

The figures 8 below shows the latest year’s (2013) scale of milk production consumed and sold (kg); butter produced, consumed and sold (kg); eggs produced and sold (kg) the Gewog:

750000!800000!850000!900000!

2013!

Eggs$Produced$and$Sold$(Nos.),$2013$

Produced!

sold!

0!

100000!

200000!

2013!

Milk Produced Consumed & Sold (Kg), 2013

Produced!

sold!

0!

5000!

10000!

2013!

Butter Production, Consumed & sold (kg), 2013

Produced!

consumed!

sold!

Figure 8: Production volume of dairy products

Figure 9: Production volume of egg

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2.3 Forestry

The Gewog has several mushrooms in its forest. Mushrooms locally named sangay shamu and sew shamu are found in Bji_Phuba and Khasa_Gonngju Chiwogs. However, it is also collected by the people from the other Dzongkhag (Haa). There are three Community Forests: one in Drudingkha, one in Khasa_Gongju, and one in Bara Zhungkhar Chiwog. In the forests the main trees are blue pine, Sisi Shing, and rhododendron.

2.4 Horticulture

The Gewog’s main horticulture practice is growing of apple. During FGD, it was shared that about 15 truckloads of apple is produced in Bara_Zhungkhar Chiwog alone in a year. Docheythey_Neyphu also mainly produces apple. Apple is found on a small scale in Bji-Phuba and they seem to have produced around 3 truckloads of apple from the whole Chiwog in a year. However, there is no record of fruit production in Khasa_Gongju Chiwog. The Gewog has some other fruit crops such as orange, grapes, pears, and Humpa besides apple, all produced in a small quantity for domestic purposes only. The figure 10 gives the production volume of the major fruits that was produced in the Gewog in 2011, which might not be relevant for the production scenario of 2014 but still serves as an indicator in the absence of production data for later years:

Figure 10: Major fruits production, 2011

2.5 Arts and Crafts

Though many Chiwogs have no record of arts and crafts related activities in the Gewog, Docheytey-Neyphu community has a high concentration of sculptors (bjinzops) who make statues from the clay. The clay used for making statue is available in the Gewog and every individual is said to have inherent bjinzo skills. There are also 2 sculptors who make trumpet (dung), oboe (bjaling), and brooch (koma) and the items are sold mainly on order basis.

0.000!

500.000!

1,000.000!

1,500.000!

2011!

Shaba Gewog Fruit Production (MT), 2011

Apple!

Peach!

Pear!

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3. Existing small and cottage industry

There are three Community Forests groups (one in Drudingkha, one in Khasa_Gongju, one in Bara_Zhungkhar Chiwog), one yoghurt plant in Drukdingkha Chiwog and sculptors in Dochetey_Neyphu Chiwog.

4. 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, and horticulture. Tshokpas, village elders and Gewog sector officials were asked to pin point the products that their villages mainly grow and are abundantly available. The main products which may have business opportunity to be produced on a commercial scale are listed within the table Chiwog wise:

Table 19: Business ideas generated through FGD

Sl. No. Chiwogs Agriculture Livestock Forestry Horticulture Arts &

Crafts

1 Khasa_Gongju Potato, carrot, pea, cabbage

Sangay shamu, sew shamu (bjili namchu type)

2 Bji_Phuba Paddy and chilli

Poultry (300 birds- 11dozens per day)

Sangay shamu, sew shamu

Apple

3 Bara_Zhungkhar Paddy, chilli, tomato, beans

Jersey group, poultry (800 birds)

CF (blue pine) Apple

4 Dochetey_Neyphu,

Potato, chili (Boegaarp Ema), maize (sold at tender age), tomato

Jersey group, poultry (550 birds), jersey farm (14 jerseys)

Apple, grapes and humpa

Sculptors

5 Drukdingkha Cucumber (shabi goenchun) in daw zhipa

Jersey group, poultry farm (200

Community forest (blue pine), CF (blue pine,

Apple, straw berry, grapes

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for first product, Nu.200kg, lowest Nu.100 per kg, peach, asparagus, paddy, beans

birds) sisi shing)

5. Attractiveness matrix for the existing products

Based on the business ideas generated from the FGD and KI, which were further validated through the production data, chili, cucumber, apple, and potato are identified as the most attractive agricultural produces under Shaba Gewog which has potential for business activities.

Table 20: Attractiveness Matrix

Pote

ntia

l to

Prod

uce H

igh

Dairy, poultry, chili, cucumber, apple, potato

Med

ium

Asparagus, beans, cabbage, tomato, carrot, paddy

Low

Low Medium High

Potential Market Demand

6. Business Opportunity Scanning and Validation

6.1 Dairy Farming

The dairy farming is one of the major activities and a significant source of income for the people of Shaba Gewog. The Gewog has one dairy production and marketing group. In 2013, the Gewog had a total of 987 cattle out of which 68 were pure jersey, 152 jersey cross and rest were local breed cattle. The annual milk production touched 198,975 liters in 2013. The five year milk production data shows a fairly stable production over the period of time, except for a slight drop in 2012.

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Source: DOL, MOAF (2013, 2012, 2011, 2010, 2009)

6.1.2 Market

Currently the milk is supplied to the yoghurt manufacturing unit established in the Gewog. The remaining amount of milk not absorbed by the yoghurt manufacturing unit is sold to the milk suppliers at Thimphu. Currently the yoghurt is only supplied to Druk Air and hence, the quantity of yoghurt produced is small. If the quality and packaging of yoghurt is good enough for Druk Air passengers, it should be good enough to be marketed to other consumers. Therefore, there is scope for expanding yoghurt production and marketing, which would simultaneously help in the development of dairy farming.

6.2 Poultry Farming

6.2.1 Production

The Gewog has over 12 poultry farms with an average of 400 birds. The Gewog is the largest egg producer under Paro Dzongkhag. The production data is not available for 2014 but in 2013 the Gewog produced 28,806 trays of egg.

6.2.2 Market

Currently the eggs are sold within Paro and the remaining eggs are sold at Thimphu market. The people face no problem in selling off the egg which indicates that a good market for egg still exists. The birds in the farms are fed with Karma Feed which is produced in Phuntsholing. Therefore, business opportunity only lies in the distribution of the egg in the market but not in the feed production.

6.3 Chilli

6.3.1 Production

The latest production data is not available but in 2011 the Shaba Gewog produced 98.5 metric tons of chilli as per the official data. The chilli production is heavily

Figure 11: Production trend for milk, butter and cheese

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concentrated in a few Chiwogs like Bji_Phuba and Drukdingkha. These Chiwogs do not produce the normal chilli but a very special and high yielding variety; locally know as Boegarp Ema which is also sometimes referred to as Poengi Ema, making a reference to its special quality. About 70-80% of the total arable land in these Chiwogs are devoted to cultivation of Poengi Ema. This chilli is large in size and has a wrinkled appearance. Its special quality is it never gets over-cooked like the other normal chili and has a distinct flavor. . A greater proportion of the chilli is dried before being sold since dried chilli is sold for Nu.500 - Nu. 600 per kg during chilli season and about Nu.1, 000 per kg during the off season.

6.3.2 Market

Currently the chilli is sold within the local market as well as at Thimphu and is also taken as far as Phuntsholing. There appears to be no problem in selling off the product because of its competitive advantage provided by its distinctive qualities from other chilies.

6.4 Cucumber

6.4.1 Production

Drukdingkha Chiwog also produces a special quality cucumber locally referred to as Shabi Goenchum. This cucumber is not only special but is also harvested when cucumber is not available in the market at all. Thus this cucumber has early season advantage in the market and fetches over Nu.100 per kg. The cucumber is harvested during the 4th month of the Bhutanese calendar. Although, production data is not available but people have indicated that productivity is very high and almost all the households under the Chiwog produces Shabi Goenchum.

6.4.2 Market

Currently the entire product is sold at Paro and Thimphu. These two markets absorb the entire output and people face no problem in selling this cucumber. The business opportunity is only in the production of cucumber.

6.5 Apple

6.5.1 Production

The apple production data for the Gewog is available only for 2011, which indicates that Shaba Gewog has produced a total of 1,343 metric tons. During the FGD, people have indicated that with the exception of Khasa_Gongju Chiwog, rest of the Chiwogs produce apple on a large scale.

6.5.2 Market

The Phuntsholing auction yard, Thimphu and Paro are the major market for apple. In order to cushion the producers from price fluctuations in the market, the low graded apple which does not fetch much price can be processed into apple juice using low cost technology.

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6.6 Potato

Potato is grown in almost all the Chiwog but it is only in few Chiwogs like Khasa_Gongju that potato cultivation is undertaken on a commercial scale. Their potato is sold through the auction yard at Phuntsholing. During the FGD, the people have indicated that some household earn Nu.500, 000 to Nu. 600, 000 a year from the sale of potato. It is also a major source of income for the people of Docheytey_Neyphu Chiwog, however, they have indicated that wild animals raiding the crop is a major problem and access to electric fencing has a potential to increase the potato output significantly.

6.6.1 Market

The people have suggested that potato processing unit such as chips making would be feasible. However, unless the chip processing is done using high technology to produce the quality chips like the Indian products currently flooding the market, there seems to be no market for chips produced using simple low cost technology. Moreover, the potato specialists have also indicated that Bhutanese potato is not suitable for making chips. Therefore, it appears that potato producers have to continue selling their product through auction yards.

6.7 Vegetables

The soil fertility also supports high productivity of all kinds of vegetables like cauliflower, cabbage, radish, carrot, tomato, asparagus and beans. The people of the Gewog grow vegetables on the dry land as well as wet land during the off season for paddy.

6.7.2 Market

Currently, the vegetables are sold at Paro through market shed built at Paro town and Thimphu through CFM. People face the problem of not being able to sell off all the products and there is high wastage because of the short shelf life of the vegetables. Therefore, either a cold storage for vegetables or any processing unit for vegetables, including drying, could be a business opportunity.

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TSENTO GEWOG

1. Gewog Profile

Tsento Gewog lies in the northern part of Paro Dzongkhag and is comprised of 5 Chiwogs: Yarsa_Nubri, Shana_Chunjue, Phangdo_Nyamjey, and Shari_Nubri. Its total area is 575.1 sq.km and elevation ranges from 2, 000 to 5, 210 metres above sea level. The agriculture land is dominated by wetland and paddy is the main wetland crop and the dry land mostly has apple orchards. The main livestock population in the Gewog is Yak, Bji, jersey, and local breeds.

The Gewog shares its border with Doteng Gewog in the east, Lamgong Gewog in the south, and Haa Dzongkhag in the west, and Thimphu Dzongkhag in the north. The Gewog has 332 households, which are well connected with electricity, farm road, and telecommunication networks. It has 1 Agriculture Extension Centre, 1 Livestock Extension Centre, and 3 Outreach Clinics. There is 1 Higher Secondary School, 1 Lower Secondary School, 1 Primary School, 1 Community Primary School, and 1 BHU.

2. Existing Resource Inventory

2.1 Agriculture

Tsento Gewog, like any other Gewog cultivates paddy but on a small scale and not many people have record of selling rice. Further, Yarsa_Nubri and Shana_Metsi have no paddy land. Shana_Metsi and Shari_Nubri Chiwogs cultivate paddy, which is just enough for self consumption, within their limited land holding. However there is no water problem for paddy. Phangdo_Nyamjey Chiwog mainly relies on paddy but it is sold in Paro local markets by just a handful of households.

The main cash earning is from the sale of potato. Almost all the households in Shana-Metsi and Shari_Nubri Chiwogs rely mainly on the sale of potato (1 truck load per HH) mainly sold through Phuntsholing auction yard. In Phangdo_Nyamjey Chiwog many households used to cultivate and sell potato earlier but now the activity is in its declining phase. Only 10-15 % of the households sell vegetables such as chili.

The main challenge related to potato is due to lack of new potato seeds which has direct impact on the yield. Further it is highly raided by wild boar destroying about 30% of the total yield after guarding constantly directly resulting in the loss of labor. Such potato related problems indicate that there is opportunity for potato seed production business and the need for electric fencing enterprises.

The figure 12 gives the production volume of the major cereal crops and vegetables produced in the Gewog in 2011, which might not be relevant for the production scenario of 2014 but still serves as an indicator in the absence of production data for later years:

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2.2 Livestock

Main dairy population in the Gewog comprises of yak, Bji, and jersey breeds. Yarsa_Nubri has 100% Yak and Bji population and mainly sells the processed cheese, butter and Chugo in the Paro market. On the 11th month of Bhutanese calendar, people also export it to Kaliphu markets in Kalimpong, India and farmer’s trade with grocery items. Thus, the market for selling Bji dairy produce is not seen as a problem.

Shana_Metsi has the maximum dairy population of jersey breed comprising 50% from total followed by local breed Jatsa & Jatsam. Metsi and Phangdo village has one dairy group made up of about 30 members. There, it is said to have a good provision for developing pasture land. Namjey village is claimed as the highest dairy producer in the Gewog. A liter of milk is sold at Nu. 35.

The Gewog used to have several poultry farms a couple of years ago which now has none in this business. This is because disposing of impotent birds is considered as a sinful act.The figure 13 below shows the latest year’s (2013) milk and butter production scale of the Gewog:

0!

200!

400!

600!

800!

2011!

Tsento Gewog Cereal Crop Production (MT), 2011

Paddy!

Wheat!

0.000!

200.000!

400.000!

600.000!

800.000!

2011!

Tsento Gewog Vegetable Production (MT), 2011

Potato!

Chilli!

Cabbage!

Cauliflower!

Radish!

0!

50000!

100000!

150000!

2013!

Chart Tsento Gewog Milk Production (MT), 2013

Produced!

Processing!

Consumed! 0!

5000!

10000!

2013!

Butter Production (kg), 2013

Produced!

consumed!

sold!

Figure 12: Major crops and vegetables production

Figure 13: Production trend for milk and butter

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The figure 14 shows the cheese and Chugo production scale of the Gewog in 2013:

2.3 Forestry

The main forest produce from the Gewog is cordyceps followed by Puti-shing available only in Yarsa_Nubri Chiwog. While cordyceps collection is allowed only to Yarsa_Nubri community, unlawful collection of Puti-shing is restricted. A kg of cordycep fetches less nu.700, 000 and maximum 900,000 sold in auction. The Gewog has three community forest; one each in Samtsa_Chunjue, Phangdo_Nyamjey, and Shari_Nichu Chiwogs.

2.4 Horticulture

The Gewog’s main fruit crop grown for commercial purpose is apple, except for Yarsa_Nubri where there is no horticulture practices. Phangdo_Nyamjey Chiwog produces 40% of apple, Shari_Nubri and Samtsa_Chunju produces 50% of apple from the total produce in the Gewog.

The figure 15 gives the production volume of the major fruits that was produced in the Gewog in 2013, which serves as an indicator of the production volume in Tsento Gewog:

0!

2000!

4000!

6000!

2013!

Chugo production (kg), 2013

produced!!

consumed!!

sold!

0!

2000!

4000!

6000!

8000!

2013!

Cheese Production (kg), 2013

produced!!

consumed!!

sold!

Figure 14: Production trend for Chugo and Cheese

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Figure 15: Major fruits production, 2011

2.5 Arts and Crafts

The Gewog has not much record of arts and crafts related skills and resources. However, the yak fur is woven into some wool related products such as bags, mats, blankets etc. Currently the Gewog has made a committee in Yarsa_Nubri Chiwog so as to promote such business activities. There is adequate skilled labor if mass production is required. There is also a scope of making clay bricks as all the Chiwogs have access to clay and road connection except Yarsa_Nubri Chiwog. However, there is no trained or skilled local labor in the Gewog. There is a business plan under process for establishing a mineral water plant as the Gewog is said to have clean and sufficient water supply for almost all the Chiwogs.

3. Business Ideas generated from Profiling, Focus Group Discussion and Key Informant interview

In the FGD and KI, the participants shared their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, and horticulture. Tshokpas, village elders and Gewog sector officials were asked to pin point the products that their villages mainly grow and are abundantly available. The main products which may have business opportunity to be produced on a commercial scale are listed within the table Chiwog wise.

0.000!

50.000!

100.000!

150.000!

200.000!

250.000!

300.000!

350.000!

400.000!

2011!

Tsento Gewog Fruit Production (MT), 2011

Apple!

Peach!

Pear!

Walnut!

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Table 21: Business ideas generated through FGD

Sl. No. Chiwogs

Agriculture & Horticulture

Livestock Forestry Arts &Crafts

1 Yarsa_Nubri

Dairy farm, yak & bji

yartsa goenbub, puti shing

yak and wool products bags for tourist

2 Shana_Metsi Potato, apple

dairy group (50% jersey and local breed)

3 Samtsa_Chunjue Potato, paddy, sag, apple

Dairy Group

Community forest (blue pine)

4 Phangdo_Nyamjey potato- 90 HH, paddy, apple

dairy group (more produce)

Community forest (blue pine)

5 Shari_Nubri Potato- 90 HH, paddy, apple

Dairy group

Community forest (blue pine)

4. Attractiveness matrix for the existing products

Based on the business ideas generated from the FGD and KI, which were further validated through the production data, potato, dairy, handicraft, natural water and apple, is identified as the most attractive products under Tsento Gewog which has potential for Business Opportunities.

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Table 22: Attractiveness Matrix

Pote

ntia

l to

Prod

uce H

igh

Potato, dairy

Med

ium

Apple

L

ow

Low Medium High

Potential Market Demand

4. Business Opportunity Scanning and Validation

4.1 Potato

4.1.2 Production

With the exception of Yarsa_Nubri Chiwog, all the other Chiwogs produce potato. It is the main source of income for the people besides dairy farming. The people have indicated that every household produce at least a truckload of potato. In 2011 Tshento Gewog produced 672 metric tons of potato. Although production data is not available, people indicated that potato is produced on a higher scale now compared to the past. However, wild animal crop raiding is a major problem and farmers estimate that almost about 30% of the crop is lost to wild animals. Therefore, if the people have access to electric fencing, the potato production volume is likely to rise significantly.

4.1.3 Market

The people have suggested that potato processing unit such as chips making would be feasible. However, unless the chip processing is done using high technology to produce the chips in line with the Indian products currently flooding the market, there seem to be no market for chips produced using simple low cost technology. Moreover, the potato specialists have also indicated that Bhutanese potato is not suitable for making chips. Therefore, it appears that potato producers have to continue selling their product through the auction yard.

4.2 Apple

4.2.1 Production

With the exception of Tarsa_Nubri Chiwog, all the other Chiwogs grow apple. Apple is one of the significant sources of income after potato. The latest apple production data is for 2011 which indicates that Tsento Gewog has produced 361 metric tons, which is equivalent to 37 truckloads of apples produced.

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4.2.2 Market

The apple is mostly sold through the auction yard at Phuntsholing. The people have indicated that there is no problem in selling off the product, but sometimes, the price that the apple fetches in the market is very low.

4.3 Dairy

4.3.1 Production

In 2013, the Gewog had a total cattle population of 3,407 out of which 2,290 were yak. Paro Dzongkhag produced a total of 17000 kg of yak meat in 2013, half of which came from Tsento Gewog with a total production of 8550 kg. Under Tsento Gewog, it is only Yarsa_Nubri Chiwog that rears yaks as it lies on a higher altitude. Therefore, the entire yak population and yak meat produced in 2013 under Tsento Geowg could be attributed to Yarsa_Nubri chiwog.

In other Chiwogs the cattle consist of jersey cross and the local breed cattle. Nyamji Chiwog has the maximum dairy population and the products. The FGD has also revealed that there is enough land for development of pasture land/fodder cultivation for the expansion of dairy farming.

4.3.4 Market and business potential

The milk produced from Bji (female yak) is mostly processed into butter, cheese and chugo and sold at Paro market. The Bji products also have market at Kaliphu (Kalimpong), where the people trade yak product for household items, including groceries. Currently, there is no problem with selling of dairy products. The business opportunity associated with yak farming includes processing and packaging of butter and cheese to increase the value of products. The business opportunity also lies in establishment of yak meat processing unit since the Gewog produces enough yak meat. The other opportunity lies in producing bags, carpets etc from the yak hair.

4.4 Mineral water plant (Potential)

The people have indicated that their Gewog has a number of water sources where water bottling unit can be established. These water sources have access to road.

4.4.1 Clay Bricks Production

The Gewog has clay soil used for making bricks for construction. Therefore, the business opportunity exists in production of clay bricks which can be supplied for the construction of traditional double stored houses.

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WANGCHANG GEWOG

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1. Gewog Profile

Wangchang Gewog is located in the centre of Paro Dzongkhag. It comprises of 5 Chiwogs: Namkar_Dungkar, Changkar_Jangtoe, Nakha_Mindey, Olathang_Geptey, and Khangku_Zachey. Its total area is 34.2 sq.km and elevation ranges from 2, 200 to 2, 340 metres above the sea level. The Gewog shares boundary with Dopshari and Hungrel in the east and north-east; Lamgong Gewog in the north; Lungnyi and Shaba in the south and Lamgong and Lungnyi Gewogs in the west. The Gewog has a plain land area mainly comprising of wet lands. The Gewog has a total of 278 households. There is 1 Livestock Extension Centre and 1 Agriculture Extension Centre. It has 1 NFE centre, 1 Lower Secondary School, 1 Primary School, 1 Veterinary Hospital, 1 Milk Processing Unit (MPU), and 1 ORC.

2. Existing Resource Inventory

2.1 Agriculture

The main cereal crop is paddy but only few kgs of surplus is sold in Paro market. Vegetables mainly potato followed by chilli, cabbage, brinjal, sag are also grown but only for self consumption. Due to the competitive market the prices fetched by these vegetables are not high, thereby, discouraging many in growing vegetables for sale. A kilogram of chilli s said to fetch only Nu. 50 compared to the chilli sold from Punakha which fetches as high as Nu. 300. Further, Namkha_Dungkar’s most of the land share is converted into the airport. However, there is potential for good yield for vegetables.

Currently, the Gewog’s main cash earning means is from the sale of potato. Channgkha amongst many other Chiwogs followed by Khangkhu_Zachey and Changkha Chiwogs grow potato and has a record of selling 11-12 truck loads to Phuntsholing market. But it has been badly raided by the wild boar since a year ago and same is the case with paddy. The other reason shared during FGD is that potato has to be collected before it gets fully matured since most of it is grown on paddy land. This is also one of the reasons for not many Chiwogs being able to grow potato.

During FGD it was voiced that vegetables have potential for production, land area is available, and there is good yield. For now due to market problem many are discouraged to work with vegetables on a commercial scale. If some small scale manufacturing industry related to vegetables is set up, then it would encourage the farmers to shift their farming practices from paddy to more vegetable activities.

2.2 Livestock

Wangchang Gewog has no dairy groups or farms as of now. However, every households have local dairy breeds in small numbers and the produces are just enough for self consumption. At present many have plans to go for dairy farming and are looking for financial assistance. Khangkhu_Zachey, Changkar_Jangtoe, and Nakha_Mindey have the highest potential in terms of available land for pasture development owing to its plain landscape. Indeed their maximum land share is dry land.

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Though there are few households interested in establishing piggery farm, getting piglet supply has been a problem. Indeed, the Gewog requested 100 piglets from Yoesepang Animal Husbandry for establishing a piggery farm but they could not get the supply. There was a poultry farm but it had been ditched not because of loss but due to personal reasons. However, the same owner is trying to re-establish her business and is the process of seeking some financial assistance.

2.3 Forestry

The main forest produce from the Gewog is mushroom (sisi shamu) found in a small quantity in Changkar_Jangtoe and Namkar_Dungkar Chiwogs. There are 2 Community Forests, one each in Khangku_Zachey and Olathang_Geptey mainly with blue pine, Chirpine, and mixed conifers.

2.4 Horticulture

The Gewog’s main fruit crop grown for commercial purpose is apple. Kangkhu_Zachey and Jangtoe Chiwogs have the maximum potential apple trees.

2.5 Arts and Crafts

There is no record of arts and crafts related skills and resources in the Gewog.

3. Business Ideas generated from Profiling, Focus Group Discussion and Key Informant interview

From the FGD and KI, the participants validated their experiences on the viability of production under the respective sectors of agriculture, forestry, livestock, and horticulture. Tshokpas, village elders and Gewog sector officials were asked to pin point the products that their villages mainly grow and are abundantly available. The main products which may have business opportunity to be produced on a commercial scale are listed within the table Chiwog wise.

Table 23: Business ideas generated through FGD

Sl. No. Chiwogs Agriculture &

Horticulture Livestock Forestry

1 Namkar_Dungkar Paddy, apple

2 Changkar-Jangtoe Paddy, potato, garlic, Apple Dairy Sisi shamu

3 Nakha-Mindey Paddy, apple Dairy Sisi shamu

4 Olathang-Geptey Paddy, chilli, Apple

CF (80), blue pine and chirpine, mixed conifers

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5 Khangku-Zachey Potato, wheat (trial), paddy, apple

Dairy CF (44), blue pine

4. Attractiveness matrix for the existing products

Based on the business ideas generated from the FGD and KI, which were further validated through the production data, apple is identified as the most attractive product under Wangchang Gewog which has potential for business opportunities.

Table 24: Attractiveness Matrix

Pote

ntia

l to

Prod

uce H

igh

Med

ium

Apple,

Potato

Low

Low Medium High

Potential Market Demand

5. Business Opportunity Scanning and Validation

5.1 Apple production

5.1.1 Production

The apple is a major fruit being grown under the Gewog. The 2011 production data shows that Wangchang Gewog has produced a total of 447 metric tons of apple. The entire product is either sold at Phuntsholing through auction yard or sold to the traders/exporters that come to the farm to collect the products.

5.1.2 Market

The Phuntsholing auction yard, Thimphu and Paro are the major markets for apple. In order to cushion the producers from price fluctuations in the market, the low graded apple which does not fetch much price can be processed into apple juice using simple low cost technology which could then be marketed within the local market.

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5.2 Potato

5.2.1 Production

The latest available data for potato production is for 2011 which indicates that Wangchang Gewog has produced 179 metric tons, which is a relatively high level of production. During the FGD people have also indicated that potato is a major cash crop grown by the people besides apple.

5.2.2 Market

Currently the potato is sold through the auction yard at Phuntsholing. In the absence of any processing options, the only business opportunity appears to be in its production.

5.3 Vegetables

5.3.1 Production

The soil fertility appears to support high productivity of all kinds of vegetables like broccoli, cauliflower, cabbage, chilli, potato, brinjal, carrot and other green leaves. However, because of the low price fetched by the vegetables in the market, people have no motivation to produce on a larger scale. The people believe that revenue earned from the sale of vegetables might not even cover the production and selling cost of the vegetable. Therefore, only little amount of vegetables, whenever there is excess of production or when there is requirement, then it is sold in the market

5.3.2 Market

Since the productivity of the vegetables is high, the business opportunity appears to lie in drying of vegetables and making them available when the market is dry that too at a higher price. Again a proper packaging would add to the value of these vegetables.

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LUNGNYI GEWOG

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1. Gewog Profile

Facing Paro International airport, Lungni Gewog is located on the suburbs of Paro District municipality. The Gewog has 439 registered households and the total population is 2,313 as per the Gewog record. The Gewog predominantly has a Dzongkhag speaking population. All of its six Chiwogs are accessible by road and it also has farm roads (37 Km, total length). The Gewog has 2 schools and outreach centers.

Being on the periphery of the Dzongkhag administration and the municipality, this Gewog has access to major infrastructure and service amenities such as hospitals and telecommunications; and also urban life.

Table 25: Chiwog level profile

Sl. No.

Name of Chiwog HH

Population

Road (Km

School

ORC

1 Bondey 74 341 4kms - -

2 Dzongda-Gada 59 336 3.5kms - 1

3 Jew-woochu 101 576 3.5kms 1 -

4 Pangbisa 35 243 20kms - 1

5 Nemjo 170 817 6kms 1 -

Source: Gewog Administration, 2015

2. Existing Resource Inventory

2.1 Agriculture and Horticulture

Paddy is the only cereal crop grown by Bongdey, Dzongda_Gada, Nemjo and Jew_Woochu Chiwogs. Pangbisa Chiwog has been associated with the production of wheat but driven by market forces, people in the Chiwog has opted for marketable crops such as potato. Wheat is also cultivated in the Gewog but only on a small scale as a green fodder for livestock.

All the Chiwogs produce vegetables and are active sellers in the Paro muncipality Sunday market. Woochu and Nemjo Chiwog produce chilli, while Dzongda_Gada and Bondey are popular for asparagus (96% of the households in Dzongda_Gada grow asparagus, in varying scales); and Pangbisa is known for producing other vegetables such as carrot, radish, cabbage and cauliflower.

Apple is the only horticulture cash crop grown in the Gewog and scale depend on land holding and appropriation of land by individual household. Once harvested the apples are sold to middleman. Representatives in the focus group discussion shared that

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people don’t know much about and aren’t bothered much about final/end user down the value chain.

2.2 Livestock

Jersey cross and Nublang_Thrabum are popular cattle breeds reared in the Gewog. 98% of the poultry birds raised in the Gewog are improved breed of birds. 18% of the Dzonkhag’s egg production comes from the poultry farms/backyard farms in Lungnyi Gewog.

Table 26: Livestock population and production

Population Production (in Kg)

Jatsha/Jatsham 30

Jersey cross 737 Milk (kg) 357,920.00

Jersey Pure 0 Butter (kg) 9,215.00

Mithun 1 Cheese (kg) 16903.80

Nublang/Thrabum 666 Egg (Nos.) 725,490

Yanku/Yankum 9

Poultry 4,687

Source: Department of Livestock, Ministry of Agriculture and Forest, 2013

The Gewog also has a milk cooperative and their produce is sold within the community. Marketability of dairy and poultry produce is a major motivation for people in the community to rear cattle as well as poultry.

2.3 Arts and Artisans

Lungnyi Gewog is home to countable number of Black Smiths. These artisans have successfully built their life and livelihood around their skills and have been able to establish a niche in the market. However, representatives in the focus group discussion shared that worryingly this is a dying art.

2.4 Forest

A variety of mushrooms are available within the Gewog boundary but are not harvested by the people in the Gewog except Matsutake. The mushroom centre located in the Gewog has proven to be successful in the cultivation of log mushroom (Nakey Shamu). The Gewog has three community forest management groups.

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3. Business Ideas Generated from Community Profiling, FGD and KI

Table 27: Business ideas generated through FGD

Chiwog Agriculture Forest

Arts and Artisans

Livestock

Bondey Paddy, asparagus, apple*

Sew shamu, Matsutake, sisi shamu

Cattle and Poultry

Dzongdrak_Gadraag Paddy, asparagus*, apple

Woochu Paddy, chili Gaw (Black Smith)

Naemjog Paddy, apple, chili

Pangbisa Potato, carrot, radish, cabbage, cauliflower*

4. Attractiveness Matrix

Table 28: Attractiveness Matrix

Pote

ntia

l to

Prod

uce H

igh

Apple, Asparagus, Vegetables

Med

ium

Paddy, Potato, Mushroom

Low

Gaw (Black Smith)

Low Medium High

Potential Market Demand

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5. Opportunity Scanning and Validation 5.1 Apple

Apple is one of the most popular horticulture cash crops grown in Paro Dzongkhag. The scale of cultivation starts from owing a few trees for self consumption to large orchards stretching into acres of land. Unlike the olden days when orchard owners used to care for the apple trees only during fruiting and harvesting season, growers have now become proactive and do take care of the trees throughout the season.

Apple has always been one of the primary export horticulture crops and during the harvest season, apples are either sold by the whole orchard to the middleman (usually exporter) or the harvested apples are sold to the middleman. What happens next and where do these apples land up, or where is the end market, the growers are not bothered about.

The primary market for Bhutanese apples is Bangladesh and India. Bangladesh importers syndicate leveraging on their bargaining power to control price and the increasing apple production from the Indian sub-continent, poses a threat to the once assured market for Bhutanese apple. Domestically, there are agro based industries engaging in fruit processing such as Bhutan Agro (Royal Bhutan Brand) and Bhutan Fruit Products (Druk Brand). But there are no successful networking and partnership stores with such companies in the markets.

The National Post Harvest Centre has an apple cold storage in the Gewog’s vicinity. But the space in the cold storage is beyond the reach of the household growers since seasoned businessmen reserve larger space ages before the harvest. Access to and availability of warehouse is a major problem for households wishing to store and moderate the apple supply in order to sustain their income generation.

Apples sold to middleman are freshly harvested apples. Middleman does ancillary value addition such as grading in rare cases, packaging, transporting and exporting.

Figure 16: Production trend for apple

Source: Department of Agriculture, MOAF (2012, 2011, 2010, 2009)

1290.96

2599.94

2156.384

873.6

2009 2010 2011 2012

Trend : Apple Prorudction (MT)

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Apart from selling fresh apples, apples can be the ingredient for diverse portfolio of products. Some of the products developed using apple include apple juice, apple jam, brandy, cider, and ready to eat products such as dried apples, apple crisps, and apple slices.

6. Business Opportunity

6.1 Cold Storage

Fresh and organic Bhutanese apples cross the borders very fast to reach the market destination coordinated by the exporters. This phenomenon still continues to dominate the industry for two reasons, a small domestic market size for fresh apples and the warehouse problem. Cold storages (apple warehouse) of varying capacity can enhance storage and lay a platform for value addition opportunities. An experience shared in focus group discussion indicates that apple growers who have accessibility to cold storage facilities earn one and half times more than the price paid by the exporters.

Given the storage problem and the returns, apple cold storage enterprises can be enabled for moderating the supply of fresh apples in the Bhutanese market as well as to the buyers who engage in processing apples. According to the Food and Agriculture Organization of the United Nations, there are three types of storage buildings, Air cooled storage, mechanically refrigerated storage and controlled atmosphere storage. Entrepreneurs must decide on such alternatives based on financial and skills capacity in order to operate and run such cold storage.

6.2 Small Scale Apple Processing Plant

While cold storage would enable a continuous supply of apples, it risks saturation of fresh apples’ market given its size. A small scale apple processing venture can ensure and sustain stakeholders in the value chain such as growers and cold storage enterprise. Value addition alternatives for processing plant include juice, jam, and cider. Fruit juice making process starts from fruit washing, drying, skin removing (normally for citrus fruits i.e. orange), deseeding, pulp macerating, pressing, pasteurizing and storage which is then used for producing fruit juices. Additional process in apple cider making includes fermentation. Processes differ based on the nature and focus on specific product that is to be produced. Alternatively, drying, packaging and marketing apples merit a deeper consideration being the only indigenous value addition mechanism.

6.3 Asparagus cultivation

Households in Dzongdrag_Gada and Bondey Chiwog cultivate asparagus; some on a small scale or as a kitchen garden, and others for commercial purpose. A household cultivates asparagus on a minimum of 20 decimal lands and the largest scale cultivation so far is less than two acres. Harvesting and selling of asparagus starts from the second month of the Bhutanese calendar.

The primary market for selling asparagus is Paro municipality market, centenary farmers market in Thinmphu and farmers marketing shed in and around the Gewog. Growers have also explored alternative niche market for selling their produce i.e food

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processing, storage and packaging firms. But growers were not able to meet the benchmarks and grading standards set by their institutional buyers. Because of the seasonality and lack of storage infrastructure, asparagus growers find it very difficult to sustainably moderate supply in the market. Peak season nosedives the prices and so is the returns for the farmers.

The opportunity associated with asparagus is cultivation/growing. Current growing experience has indicated a good yield and is a good source of income for the growers depending on the scale. There is a major scope to scale up the cultivation and yield, production and distribution in the domestic and regional market. Associated opportunities also include growers association for collection, grading and distribution of the produce.

Further, niche markets such as hotels and resorts, and processing firms becoming aware of the production is a major source of motivation for the growers. Growers need to meet the grading standards for processing firms, and then the market will be guaranteed for them.

6.4 Vegetables

Pangbisa Chiwog is particularly known for the ability and capacity to produce and sell vegetables in the Paro municipality and sometimes in the centenary farmers market. Popular vegetables cultivated and marketed are carrot, cauliflower, cabbage and radish over and above other vegetables such as broccoli, sag and chilli. Representatives shared that it is customary for almost all the households to sell vegetables every weekend in the municipality market.

Two major tailbacks in vegetable cultivation are wild animals’ intrusion and market. Though people engage in such adaptive and rewarding vegetable farming, their efforts are at times wrecked and damaged by wild animals. Intervention measures such as electric fencing is on trail. Marketwise, imported vegetables directly compete with their produce and price comparisons devalue the home grown vegetables, and more importantly its essence of being organic is lost. This has a major implication on the motivation of the cultivators.

Current production model is a pure household initiative. Households determine what and how much to cultivate. This is done so based on their understanding and comprehension of market through their experiences. In terms of scale, cultivation is done on a bit more than a kitchen garden but again not on a commercial scale.

7. Opportunity:

Major enterprise opportunity associated with vegetables is production and distribution. Production can be largely through scaling up the cultivation, yield enhancement while focusing on organic produce, adapting agriculture innovation, and season based year round diverse vegetables cultivation.

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7.1 Black Smith

Blacksmith (Gaw), is an art rapidly fading away and losing significance in Bhutan. There are few such artisans in the Gewog who makes a living from their skill, perhaps the last generation. Participants during the focus group discussions shared their worries in losing significance of such as an art. Visibly this art has failed to convince younger pupils that such art can become a livelihood occupation.

The current production model or business model of blacksmiths (Gaw) in the Gewog is that they produce the products on order. Customized orders placed by customers are designed, crafted and delivered. The artisans have created a niche market in high end customers; hence their focus is on the state of the art quality based production of sword (patangs), catering to the local demand of lesser economic value products is secondary.

The enterprise opportunity is to formalize and scale up the art itself. This would require investing in training and development of young artisans or the craftsman. Networking for gathering essential resources such as metal/steel will be critical as well as developing niche market and customization.

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SHARI GEWOG

1. Gewog Profile

Dop Shari Gewog has a total area of 36.7 sq. km. Lieing within the reach of the muncipality limits and with its proximity to the Dzonkhag, most of the Chiwogs in the Gewog has access to modern infrastrutural and lifestyle amenities.

The Gewog has 25 KM farm road benefting 347 households and 18.2 KM of irrigation channel benefiting 353 households.

2. Existing Resource Inventory

2.1 Agriculture

Paro Dzongkhag is regarded as one of the rice basket of Bhutan, and this Gewog in the Dzonkghag is no exception. Paddy is the predominant and the only cereal crop cultivated in Dop Shari. Jangsa_Jookha, Duezhi_Jipa, Rinchending_Shari and Kempa_Kuduphu also cultivate paddy. Commonly cultivated gene of paddy includes Chumru, No.11, and Khando Lham.

The Gewog has a paddy seed group consisting of 11 members. 10% of the paddy/ rice produced are directly sold to National Seed Centre by households and is coordinated in collaboration with National seed centre by the Gewog Agriculture Office. Experiences shared indicate a close participation and monitoring by the National Seed Centre. The seed is sold at the rate of Nu. 45 per kg. Besides, farmers sell rice in the municipality town and Chumru (variety) has gained popularity amongst the buyer.

Common vegetables cultivated in the Gewog are chilli, beans, radish and cabbage. Like rice, vegetables are cultivated and sold in the municipality throughout the year by the people in the community. Though popularly cultivated, vegetables by far are still small scale cultivation. Kemp_Kuduphu and Rinchending_Shari Chiwogs have formed vegetables’ group.

Apple is the primary fruit crop that the Gewog’s people invest their time, energy and resource in. In 2014 alone, the Gewog has produced over 400 MT of apples. As per the records maintained at the Gewog office, 400 acres of land are registered as orchard.

Figure 17: Dop Shari Gewog map

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Table 29: Major crops cultivated

Source: Agriculture Production, Gewog Agriculture Office, 2014

2.2 Livestock

Livestock rearing is an essential lifestyle occupation of people in the Gewog. People raise cattle and poultry but piggery or pig rearing is largely extinct. Livestock statistics (2013) reveals that only 7% of the cattle reared in the Gewog are pure jersey, 15% cross breed and the rest is domestic/local breed of cattle.

Table 30: Livestock population and production

Livestock Population Production

Jatsha/Jatsham 222 Milk (kg) 581,201

Jersey cross 152 Butter (kg) 13,169

Jersey Pure 68 Cheese (kg) 23,629

Nublang/Thrabum 545 Egg (Nos) 175,360

Poultry 1067

Source: Department of Livestock, Ministry of Agriculture and Forest, 2013

2.3 Forest

The only non-wood forest product harvested by people in the community is matsutake mushroom. NWFP enterprise initiatives of such cultivation of log mushroom (shitake) and straw mushroom has been started by a few individuals in the Gewog.

Crop Production(Acres) Production (MT)

Paddy 353.03 894.47

Wheat 10.00 0.01

Potato 12.00 36.50

Chili 42.00 102.72.

Cabbage 3.50 10.50

Radish 20.00 10.50

No. of Trees Production (MT)

Apple 13, 200 404.23

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3. Land Use Pattern

Table 31: Types of land in acres

Total Area Cultivable Land Fallow

Wet Land 500.93 Acres 493.33 Acres 30.5 Acres

Dry Land 753.33 Acres 453.52 Acres 30 Acres

Source: Gewog Agriculture Office, 2015

The land usage is almost at its optimal level. Only 6% of the total cultivable land is left fallow.

4. Ideas Generated from Community Profiling and Key Informant Interviews

Table 32: Business ideas generated through FGD

Chiwogs

Agriculture

Forest

Livestock

Duezhi-Jipa

Paddy

Dairy

Poultry

Jangsa-Jooka

Paddy, Chilli, beans cauliflower, broccoli,

Jizhigang

Kempa-Kuduphu

Paddy , Chilli, beans cauliflower, broccoli,

Straw mushroom

Log mushroom

Matsutake

Rinchdending-Shari

Paddy, Chilli, beans cauliflower, broccoli,

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5. Attractiveness Matrix

Table 33: Attractiveness Matrix Po

tent

ial t

o Pr

oduc

e

Hig

h

Apple, Paddy, Vegetables

Med

ium

Low

Mushroom

Low Medium High

Potential Market Demand

6. Idea Scanning and Validation

6.1 Paddy

In addition to directly selling paddy as a seed to National seed center, households sell their produce in Paro and Thimphu markets depending on their convenience. Often, this has led to internal competition amongst the households who selling rice on the same day, and this has a direct impact on the seller. Further, competing in the same market dominated by imported rice from India and the local competitors (other Gewogs), selling rice as an essential staple diet is a herculean task.

Land use pattern indicates that 95% of wet land is cultivated, which by the national standard is a optimal use of the arable land. But cultivation is also constrained by issues of irrigation coupled with wild animal intrusion and limited labor supply (labor willing and able to work in paddy fields) and the urbanization pressure.

Despite the various challenges, paddy cultivation on the suburbs of the municipal town has sustainable competitive advantage in its location alone. Any venture into paddy in this Gewog needn’t necessarily be in production but can be in value addition and distribution of the produce.

A packaging firm would provide avenue for households to sell their excess produce at their will throughout the season or through guaranteed buying mechanisms. Critical success factor of such venture will be relationships. Bhutan trade statics 2013 reveals that the nation imported semi or wholly milled rice alone worth Nu. 460,471,608.00. This alone speaks volumes about the domestic market. In addition to encouraging and motivating farmers to cultivate or engage in such farming, policy intervention and subsidy mechanism may perhaps be able to really equip the home grown rice to compete with the portfolio of imported rice.

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6.2 Apple

According to the records maintained at the Gewog, 400 acres of land are registered as orchard. The size of the orchard holdings in the Gewog varies from a few decimals of land to a maximum of three acres. It has become quite customary amongst Bhutanese apple growers to sell the apple harvest either to middleman or to the exporters. The total number of trees and production of year 2012 and 2013 is tabulated below.

Table 34: Apple production

Total Trees Total Production (MT)

2012 12540 342.4

2013 13200 404.23

Source: Gewog Agriculture Office, Shari Gewog, 2015

Through Gewog and Gewog Agriculture office initiative, they secured funding and a cold storage for apple was built in Jizhigang Chiwog. The capacity of the infrastructure is 2000 crates and has 11 household members. However, such facility is unutilized. Key Informant interviewee shared that such underutilization can be attributed to the distance from the orchard to the cold storage.

Experiences from other Gewogs such as Dokar in Paro and Hongtsho in Thimphu indicate that cold storage enables sellers to fetch premium price by moderating supply of apples throughout the seasons.

7. Opportunity 7.1 Cold storage

Given the attractiveness of domestic market and demand for apples throughout the season, revamping the existing cold storage by any member of the group or by an individual is a good opportunity. The structure is already in place but what is required is management. In addition, establishing a new cold storage or two given the huge production is worth investing.

In case the number of cold storage establishments increase; niche market such as business markets must be further explored.

7.2 Processing

While our country makes a good earning from apple exports, the earnings are offset by the import of processed fruit products be it in the form of juice, dried fruits, jams, or any other value added forms. A micro apple processing plant could be a springboard to produce authentic, organic and healthy 100% fruit or associated products that can replace the imported items.

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7.3 Vegetables

A variety of vegetables such as cauliflower, broccoli, sag, beans, chilli and potatoes are cultivated across the seasons by the people in the Gewog. But scale of cultivation is associated with the motivation to cultivate. Growers with the intent to generate income cultivate on a larger scale while others with primary intent of self consumption grow vegetables in their kitchen garden, but even their excess produce is sold. Market accessibility for vegetables is not a problem but competition certainly is. Home grown vegetables largely organic are sadly the second preference for customers because of the price difference.

Any endeavor into vegetable must be set on production, storage, packaging and distribution. Solar powered cold storage is gaining popularity amongst the neighboring states of India and replicating such models here will be a viable business venture.

8. Dairy

Households in the Gewog raise livestock in manageable number. Despite massive urbanization pressure, households still practice livestock rearing as lifestyle occupation, though it is secondary to agriculture. The Gewog has a milk cooperative and a collection van collects fresh milk every day from the designated locations.

The livestock statistics trend indicates that dairy products consistently find market. Over the years, households were able to sell at least 80% of their livestock produce, butter and cheese. Key informant interviewees indicated ability and plan of people in the Gewog to establish and manage dairy farms.

Opportunity associated with dairy in the Gewog is establishment of dairy farm: either conventional or modern dairy farm. This will command/require major investment for the development of shed, growing of fodder and more significantly for buying a better breed of cattle. An alternative venture opportunity can be a milk processing unit in the Gewog.

Table 35: Dairy and egg production

Source: Department of Livestock, MOAF (2013, 2012, 2011)

2011 2012 2013

Butter (Kg) 84.02% 81.59% 83.46%

Cheese (Kg) 86.26% 82.13% 87.31%

Egg (nos) 93.94% 94.04% 80.01%

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NAJA GEWOG

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1. Gewog Profile

Naja Gewog is located at a distance of 71 KM drive from the Dzongkhag administration towards Haa Dzongkhag. The Gewog has 5 Chiwogs spread across 151.80 square kilometers of land with an elevation ranging from 2290 meter to 2700 meter above sea level. There are 563 registered households (as per the Gewog record).

The Gewog has 100% coverage of telecommunication by both B mobile and T cell. All the settlements are electrified and connected with farm roads. The Gewog has 1 basic health unit, 5 outreach clinics and 3 schools.

Table 36: Chiwog level profile

Sl. No. Chiwog No. of Villages No. of Household

1 Nagu-Lingzhi 2 95

2 Jagoen-Befikha 2 125

3 Rashigang-Tshibji 2 97

4 Tshendu Goenpa 1 83

5 Wanakha-Susuna 2 163

2. Existing Resource Inventory

2.1 Agriculture

Wheat, millet and buckwheat are principle cereal crops cultivated by the people in the Gewog but such cereal crops are losing significance as well as the scale of cultivation. Adapting to the changing times, peoples’ focus is now shifting from cultivating staple cereals to economic value crops such as potatoes and cabbage.

Potatoes and cabbage (twice a year) are cultivated by the people of Naja on a large and commercial scale, at least in the Bhutanese context. Potatoes are sold during the auction facilitated by Food Corporation of Bhutan.

Table 37: Major crops production

Crop Category Crop Area (acres)

Production (MT)

Yield (Kgs/acre)

Cereals

Maize 10.50 3.10 295.23

Wheat 225.95 193.64 857.00

Barley 29.01 11.94 411.58

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Buckwheat 61.27 45.95 750.00

Vegetables

Potato 279.25 1,619.65 5,800.00

Chilli 114.60 260.90 2,276.58

Cabbage 293.00 1,611.5 5,500.00

Carrot 15.00 20.805 1,387.00

Radish 4.62 12.74 2,757.00

Turnip 55.00 159.775 2,905.00

Oilseeds Mustard 30.82 12.9444 420.00

Source: Gewog Agriculture Office, Naja Gewog, 2014

Common species of cabbage cultivated are dondey cross and green colonate. Like potatoes, Food Corporation of Bhutan plays the role of middleman to market cabbages produced by Naja. Representatives in the focus group discussion shared that FCB then export it to India. The people of the Gewog also tried to sell the cabbage within Bhutan but the market size was too small for their production, considering the short fresh lifespan of the product itself.

Major challenges while engaging in agriculture in the Gewog are wild animals’ intrusion, crop guarding, land topography and access to rural finance to engage in income generating agricultural activity.

Apple is the common fruit available in the Gewog. Lower Wanakha is the only Chiwog that cultivates cardamom and mandarin.

2.2 Livestock

Livestock had been an important livelihood occupation for the people of Naja Gewog. Some of the communities in the Gewog are very dependent on dairy and move along with their herds. The Gewog has a comparatively higher population of livestock than other Gewogs. Only 30% of the cattle owned are cross breeds and the rest is domestic breeds. Experiences suggest that the people have put in their efforts to buy pure jersey, but adaptability coupled by lengthy import procedures is dampening their efforts. Livestock being their primary livelihood occupation, people have had access to tsamdro till 2007 and the debate over tsamdro issues is of immense concern to the people.

Table 38: Livestock population and production

Population 3808 Production

Jatsha-Jatsham 29% Milk (kg) 167,998.00

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Jersey Cross 27% Butter (kg) 4,500.00

Nublang-Thrabum 29% Cheese (kg) 9,011.26

Yangku-Yangkum 12% Eggs (Nos) 699,840

Others 3%

Poultry 2,025

Source: Department of Livestock, Ministry of Agriculture and Forest; 2013

2.3 Forest

The Gewog is enriched with abundance of mushrooms, a primary non word forest product; but people have not made much of a economic use.

2.4 Arts and Artisans

The Gewog has a supply of youths with traditional skills, the ones who have graduated from Zorig Chumsum Institute in the nation. But enterprise spirit and a good mindset fundamental to making a living out of such skills seems to be missing amongst the youths.

3. Ideas arising out of focus group discussion, key informant interviews and community profiling

Table 39: Business ideas generated through FGD

Chiwogs Agriculture Livestock Forest

Bemphu-Lingzhi-Nagu

Bueltikha-Jagoen

Jazhina-Tsoen-Goen

Ranzhi-Gang-Tshebji

Wanakha-Zursoona

Vegetables:-

Potato, cabbage

Cereals:-

Wheat, millet Buckwheat,

Horticulture:-

Apple, cardamom

Dairy, poultry

Sew Shamu

Matsutake

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4. Attractiveness Matrix

Table 40: Attractiveness Matrix Po

tent

ial t

o Pr

oduc

e Hig

h

Wheat, millet, buckwheat

Cabbage, dairy, potatoes

Med

ium

Low

Low Medium High

Potential Market Demand

5. Idea scanning and validation

5.1 Dairy and poultry

Representatives in focus group discussion shared about the vibrant livestock rearing, herding and management culture amongst the communities in the Gewog and their motivation to continue. Trends suggest there is no major fluctuation in the population of dairy, but it shows dwindling milk production over the years.

Figure 18: Livestock population trend

Source: DOL, MOAF (2013, 2012, 2011, 2010, 2009)

3460! 3844!4605!

4136! 3808!

2009! 2010! 2011! 2012! 2013!

Dairy Population trend (2009-2013)

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Figure 19: Milk production trend

Source: DOL, MOAF (2013, 2012, 2011, 2010, 2009)

Similarly, production trend of butter and cheese indicates a massive decline in 2013. For poultry, population statistics indicate a decline in numbers, but the productivity has increased. Perhaps imported breed of poultry is more productive than the domestic breed.

Figure 20: Butter and cheese production trend

Source: DOL, MOAF (2013, 2012, 2011, 2010, 2009)

1170830.00!

408850.00!407700.00!524790.00!

167998.00!

2009! 2010! 2011! 2012! 2013!

Milk (kgs) production trend (2009-2013)

Milk!(kg)!

52130.00!

21830.00! 21800.00!

54071.50!

9011.26!

2009! 2010! 2011! 2012! 2013!

Bu:er$and$Cheese$Produc=on$Trend$(2009@2013)$

Bu]er(kg)! Cheese(kg)!

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Figure 21: Egg production trend

Source: DOL, MOAF (2013, 2012, 2011)

Pressing issues associated with tsamdro, low productivity, lack of interest in the younger generations to continue the household occupation, rural urban migration, topographical conditions and access to rural credit facilities are the major reasons cited for the decline in livestock as a livelihood occupation in the Gewog. People are open to innovative practices of livestock rearing but support from the stakeholders is rather lukewarm.

Participants in the focus group discussion shared that it is important for the people to revive their interest in livestock practices, and these group of people are motivated and committed to making the Gewog a hub for dairy.

Opportunity associated with the livestock in the Gewogs is investment in better breeds and transition to highly productive livestock (dairy and poultry). Associated opportunities are worth considering once the investment in the procurement of better breeds is done. The model for rearing livestock is still a household occupation model.

5.2 Cabbage cultivation

Cabbage cultivation in recent times has been a major income generating crop for the farmers. Majority of the households in the Gewog cultivate cabbage on a larger scale as compared to the neighboring Gewogs.

Once harvested, communities themselves organize and deliver their produce to Food Corporation of Bhutan, ranging from a couple of hundred kilograms to truck loads of cabbage. Agriculture statistics trend graphically represented below shows the cultivation efforts and production over the years. Food Cooperation of Bhutan brokers the export of cabbage currently. Experiences shared in focus group discussion suggest that the domestic market size is too small for cabbage produce that comes from the Naja Gewog.

86203!

495960!

699840!

2011! 2012! 2013!

Egg Pdn(nos)- (2011-2013)

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Figure 22: Cabbage production trend

Source: DOL, MOAF (2012, 2011, 2010, 2009)

Though committed to cabbage cultivation or any other agriculture practices, the major challenge faced by farmers is the small size of land holdings. Participants in the focus group discussion shared the need to revamp tseri practices.

The opportunity associated with cabbage cultivation is to scale up production given its export potential. Branding the produce as organic produce will have a major impact on the customers mind.

5.3 Wheat Production and milling

Though wheat has been phased off from the staple cereals basket and though it is fast being replaced by high economic value crops, this has not deterred the farmers from cultivating wheat. Every household in the Gewog cultivates wheat in different scales. Some cultivate it as a fodder for their livestock while some cultivate for the purpose of milling and selling it as flour and others for household consumption.

Though declining year by year, the wheat production for the Gewog in 2014 was 857 MT. Creating a market for wheat produce such as milling enterprise is expected to motivate the people in the community to revamp and scale up production.

81.37 100.00 119.40 220 211.82 241.86 503.12

1210

2009 2010 2011 2012

Cabbage Production Trend (2009-2012)

Harvested Area Production

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Figure 23: Wheat production trend

Source: DOA, MOAF (2012, 2011, 2010)

Milling ventures must invest on machineries required throughout the process: cleaning, milling and sieving, and packaging. Cleaning removes weed seeds, dirt, organic matter and cleaning equipments removes the outermost layers of the grain making it ready for milling. Milling involves grinding and breaking endosperm into flour, which is then ready for packaging. In addition to machineries, investments in capacity development will be very critical.

Bhutan imports wheat and wheat products be it flour or readymade snacks or bakery items. A small scale milling can contribute to reduction of imports, create avenues for value added product opportunities and improve sustainability.

241.00 237.10 225.95

138.48

255.00 193.64

2010 2011 2012

Wheat Production trend (2010-2012)

Harvested Area (Acre) Production (kg)

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DOTENG GEWOG

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1. Gewog Profile

Located northeast of Rinpung Dzong, Doteng Gewog has an area of 194.76 Sq. Km with the altitude rising to 2300 M above sea level. The population of the Gewog is 1,276 and has a predominantly Dzongkha speaking population. All the Chiwogs are connected by farm road except Chidokha village.

1.1 Chiwog Profile

Table 41: Chiwog level profile

Chiwog No. of Household

Phooshar 26

Aatsho-Phunoob 26

Chubar 31

Jabji-Loogchoed 60

Joogar-Pachu 58

2. Existing Resource Inventory

2.1 Agriculture

Predominant and the only cereal crop cultivated in the Gewog is paddy. Common species of paddy cultivated here include ray marp and ray nam and also no.11. Alternative cereal crop favorable to be cultivated in the Gewog is wheat, but wheat has lost its significance of being a cereal crop to livestock feed. So, wheat cultivation in terms of acreage is just a fraction of paddy cultivation.

Vegetables cultivation in the Gewog has a fair balance when it comes to domestic consumption and commercial sale. While cultivation pattern and the scale of cultivation gives an indication of household consumption but the people actually market the vegetables harvested from their small scale gardens.

Like other Gewogs, apple is the income generating and livelihood enhancing horticulture crop for the people of Doteng. Other fruit crops include walnut and peach, grown on a small scale.

The major constraints to agriculture are wild animals, irrigation and market. Wild animals intrude and damage the crops from the day the bed preparation and sowing activity commences till harvest. While paddy is the livelihood cereal crop, irrigation is a major bottleneck to cultivation motivation. Even if people manage to nurture the crops with the irrigation and wild animal intrusion challenges, market the ultimate platform to generate income is the final factor discouraging the people from engaging

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in agriculture. Crops and vegetables produced and made available to the limited market in the Dzonkhag are often confronted by import substitute products for both rice and vegetables alike.

2.2 Livestock

Dairy and poultry rearing the Bhutanese way still exists like in any other community in Bhutan. But the role of piggery is almost extinct, because of the community’s beliefs.

Table 42: Livestock population and production

Population Production Sold

Population 597 Milk (kg) 36,109.00 15.02%

Jersey Cross 29.48% Butter (kg) 1,227.40 80.00%

Nublang/Thrabum 60.97% Cheese (kg) 2,454.80 69.99%

Others 9.55% Egg (Nos) 77,210 61.97%

Poultry 837

Source: DOL, MOAF, 2013

Statistically, livestock population in the Gewog has dwindled in the last decade, so has the production and productivity. 60.97% of the cattle population as of 2013 is domestic breed. Dairy produce and poultry produce are sold in Paro and Thimphu market. People sell at least 60% of their produce from their dairy.

2.3 Forest

The Gewog has maintained 78% forest cover and has abundance of non wood forest products. Only mushrooms have been harvested by the people in the Gewog for domestic consumption and sometimes for income generation. To strengthen protection and sustainably manage the forest and its resource, this Gewog initiated the creation of a community forest.

2.4 Land Use

Table 43: Types of land in acres

Total land Fallow

Wet Land 258 Acres 5% (approx)

Dry Land 280 Acres 30% (approx)

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The total cultivable land according to the Gewog records is 258 acres of wet land and 280 acres of dry land. Fallow dry land is more than wet land.

3. Ideas generated from community profiling, key informant interview and focus group discussion

The representatives in the focus group discussion consisting of elected members of the local government, elderly and the extension officers of the RNR sectors. During the discussions, the participants shared potential enterprise arena’s that can be explored grounded on their experience of living in the Gewog for generations. Four major arena’s pointed out by the participants include venturing into Dairy farming, Vegetables, Mushroom and Paddy.

4. Attractiveness Matrix

Table 44: Attractiveness Matrix

Pote

ntia

l to

Prod

uce

Hig

h

Dairy, Vegetables, Paddy

Med

ium

Low

Mushroom

Low Medium High

Potential Market Demand

5. Idea Screening and validation

5.1 Paddy

Bhutan imports rice, the staple diet worth millions of ngultrum from India; leading to a massive outflow of money at the national level. At the Gewogs and village level, surplus produce such as rice and vegetables are struggling to gain stronghold in the market. The same is the case with the surplus produce of rice and vegetables from Doteng Gewog like communities elsewhere.

Households in Doteng Gewog cultivate paddy depending on their capacity and motivation. Focus group participants sharing suggest a surplus production of paddy from the Gewog, though it couldn’t be quantified and measured. Currently surplus produce are being sold in the Dzongkhag town at a comparatively higher price than imported rice.

The venture opportunity associated with paddy is packaging, branding and distribution. Almost all of the household own rice grinder/mill, and hence rice mill may not be attractive. An endeavor into such venture opportunity will require strong

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partnership with the cultivators, unconditional buying agreements and also policy support.

5.2 Dairy

Livestock statistics trend (shown below), reveals a decline in population and production of dairy (butter and cheese alike).

Figure 24: Production trend for milk

Source: DOL, MOAF (2013, 2012, 2011, 2010, 2009)

Figure 25: Production trend for cheese and butter

Source: DOL, MOAF (2013, 2012, 2011, 2010, 2009)

In an attempt to revert such trend, the Gewog has initiated the formation of women’s milk cooperative. The initiative was an attempt to encourage household income generation while keeping livestock rearing culture vibrant. Till date, the cooperative has been quite a success in fulfilling its objectives. The milk produced are delivered for collection on a premeditated time, the collection van delivers the collected milk either to Paro or sometimes to Thimphu to enterprises engaged in value addition.

120490.00!

76800.00! 76800.00!

36109.00!

2009! 2010! 2011! 2012! 2013!

Milk$(kg)$produc=on$trend$$

8190.00!5220.00! 5200.00!

2461.60! 2454.80!

2009! 2010! 2011! 2012! 2013!

Bu:er$and$Cheese$Produc=on$Trend$(2009@2013)$

Bu]er(kg)! Cheese(kg)!

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The people have now experienced and realized the commercial viability of indigenous way of rearing livestock. This has encouraged and motivated the people in the community to add few more numbers to the livestock population.

The opportunity associated with dairy is in the investment in establishment of backyard micro dairy farms. This will trigger investment in better breed of cattle and enhanced productivity. And ultimately open up avenues for value addition and milk processing units.

5.3 Vegetables

The information emerging out of FGD also indicates that vegetables like chili, cabbage, cauliflower and carrot are highly productive. The vegetables are sold through the vegetable shed established at Paro town.

!

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DOKAR GEWOG

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1. Gewog profile

Dokar Gewog is located below Chuzom-Haa national highway and is almost 27 km away from the Dzongkhag administration. The Gewog shares its boundary with Shaba and Naja Gewogs of the Dzongkhag. The Gewog has 5 Chiwogs spread across an area of 106.1 square kilometers with an elevation ranging from 2100 meter to 4700 meter above the sea level. The Gewog has 227 registered households with a total population of 2,856 (as per the Gewog record). There are 2 schools (i.e., one lower secondary school and one community primary school), 1non formal education center and 1 Grade II BHU.

2. Existing Resource Inventory

2.1 Agriculture

Paddy and wheat are cereal crops grown in Dokar Gewog. Wheat is cultivated in Tenchekha_Tsiphu Chewog, Khamdrag_Sali Chewog, Goeasakha_Phuchhekha Chewog and Dawakha_Tshongkha Chiwog. Paddy is cultivated in Mendrel_Uesuna Chiwog only. Cereal crops are cultivated just for household consumption.

Table 45: Major crops cultivated in the Gewog

The Gewog is also one of the hub of vegetable production in the Dzonkhag. For a long time this Gewog has been popular for production of chilli. Common species of chilli cultivated today in the Gewog are pa-ey, Begap and auto (all names in dzongkha).

50% of the chilli produced are sold fresh, of the remaining some are sundried and some are made into Shukam (Boiled (while boiling chili loses its green

Harvested Area (Acre) Production (kg)

Paddy 78.6 145.41

Wheat

97.28

Chili 145 355.25

Cabbage 13 45.24

Potato 51 229.5

beans 25 24.68

Carrot 13 17.589

Source: DOA, MOAF, 2012

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pigment/chlorophyll and the color changes to yellowish white) and sundried). Participants in focus group discussion shared that Shukham fetches higher price than sundried red chili and fresh green chili.

Other vegetables cultivated are cabbage, potato, beans, sag, Palang sag, and broccoli. Khamdrag_Sali Chiwog is best known for its potato production in the Gewog. Vegetables produce are sold at the centenary farmers market. People in the Gewog also have designated selling space in CFM.

Apple is the most popular fruit crop in the Gewog. Some owners sell their produce right after harvest while others have developed a micro natural cold storage to store apples. Participants in focus group discussion shared that apple growers who have cold storage make a good fortune by moderating the supply of apples throughout the year.

Major impediments to engaging in agriculture are irrigation, high dependency on rainfall, wildlife intrusion, and pest and crop diseases.

2.2 Livestock

For generations, Dogar Gewog followed migratory cattle rearing system. For four months in a year, cattle were reared at home in the Gewog and during the other months; people migrated to Geling Gewog in Chhukha Dzongkhag. The traces of migratory cattle rearing system is further validated by statistics which reveals that more than 70% of the cattle are of domestic breed.

Table 46: Livestock population and production

Population Production

Cattle 1,804 Produced consumed sold

Nublang-Thrabum 61% Milk (kg) 157,460.00 28,600

Jersey Cross 23% Butter(kg) 6,443.00 2,656 3,787

Jatsha-Jatsham 6% Cheese(kg) 11,589.40 4,309 7,280.4

Yangku-Yangkum 7% Egg(Nos) 324,120

257,600

Others 3%

Poultry 1,918

Source: DOL, MOAF, 2013

However, the people in the Gewog are adapting to the changing times. And the migratory system is fast fading away, domestic cattle breed often associated with less productivity numbers are rapidly declining and are replaced by better breed of cattle.

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Poultry statistics are commendable but only one out of ten poultry farms are operational today according to the representatives in focus group discussion.

2.3 Forest

Economically valuable non wood forest products available in the Gewog are Shilajeet and Sew Shamu (mushroom). But people have not made any economic gains from harvesting such resources.

2.4 Land use

According to participants in the focus group discussion approximately 80% of arable and registered private lands are cultivated, but 20% is left fallow.

3. Ideas arising out of FGD, Key Informant Interview and community profiling

Table 47: Business ideas generated through FGD

Chiwogs Agriculture and horticulture Livestock Forest

Dawakha-Tshongkha

Chili, Potatoes

Mustard, wheat, Beans,

Apple

Dairy, Poultry

Shilajeet (Jaju)

Sangzay

karchung

Sew Shamu

Goensakha-Phucchhekha

Chilli, Palak sag, rai sag;

Omla choto, broccoli, beans

Khamdrag-Sali

Potatoes, Cabbage

Wheat, Apple.

Mendrel-Uesuna Paddy, Chilli

Tenchhekha-Tsiphu Chili, Wheat, Potato

Beans, Apple

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4. Attractiveness Matrix

Table 48: Attractiveness Matrix Po

tent

ial t

o Pr

oduc

e

Hig

h

Chilli

Med

ium

Dairy, Vegetables

Low

Shilajeet

Low Medium High

Potential Market Demand

5. Opportunity Scanning and Validation

5.1 Chili

Dokar is popular for production of sundried red chilies in the Dzongkhag and beyond. Communities in the Gewog sell sundried chilies on the highway marketing sheds, weekend market in Thimphu (Centenary Farmers Market) and alternatively through middleman who visit communities and buy in bulk. Participants in focus group discussion shared that easy access to market has enabled and motivated chili growers to cultivate and scale up cultivation. However, current cultivation is under 50 decimals, still following a kitchen garden cultivation culture. Recent experiences has taught households in the communities that boiled and sundried white chilies fetches better returns according to participants at focus group discussion. While chili be it green (fresh) or sundried (red and/ white), growers are constrained by limited access to water which is very critical for nurturing chili. Otherwise, chili growing, drying, packaging and branding has a good enterprise proposition.

5.2 Shilajeet

Shilajeet is exudate that oozes out of rocks and cliffs during summer months. It is considered to be a rare tonic herb rich in organic minerals. In western Bhutan, Shilajeet is found in Chapcha Gewog in Chukha and Dokar. There are few licensed collectors who collect Shilajeet and sell it to the National Institute of Traditional Medicine, Thimphu; and even fewer processors. A community initiated venture into harvesting Shilajeet can enhance community wealth creation and alternative source of income.

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5.3 Dairy

People in the Gewog are abandoning the migratory practice of cattle rearing and now the focus has shifted towards downsizing the number of cattle to a manageable size with better breed of cattle. The Gewog has already created a milk collection center to encourage the rearing of cattle. Realizing the unavailability of green fodder during winter, the people in the community are also trained in silage making. Some cultivate wheat as green fodder for the cattle during the winter.

Despite the efforts to encourage and improve the rearing of cattle, participants in focus group discussion shared that limited water supply is a perennial problem. Poor water supply has also a major impact on the people’s plan to grow fodder. An endeavor into dairy in the Gewog by its people is to invest on quality and productivity driven cattle and development of backyard dairy.

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