Analysis of Bhutan's Agriculture: Decline, Innovation, and Solutions

This research project examines the agricultural sector of Bhutan, which is crucial to its economy, and the recent decline in its productivity. The report investigates the causes of this decline, including lack of innovation and technology adoption, referencing studies and comparing Bhutan's situation to that of Nepal and India. It explores the use of ICT, RFID, and precision agriculture, proposing innovative solutions and emphasizing the role of the government in supporting farmers through technology adoption and financial assistance. The research employs a descriptive research design and deductive approach, analyzing secondary data to identify issues, the need for innovation, and potential improvements, including a shift towards organic agriculture. The report concludes with recommendations for enhancing Bhutan's agricultural sector and contributing to its economic growth.

Research Project Coversheet
Student ID number
&Name
U3147134; Tshering Bidha
Unit name Development Research Project
Unit number 8765
Due date Friday, 3 November 2016
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been appropriately and fully acknowledged as to author/creator, source and other bibliographic
details. Such referencing may need to meet unit-specific requirements as to format and style.
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 Logic and effectiveness of research
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Abstract
Agriculture has a dominant role to play in the economy of Bhutan. 95% of the people of Bhutan
earns their livelihood from agriculture. However, the economy of Bhutan has been declining in
the recent times, with the decline of the agriculture in the country. This research highlights the
various causes of the decline of the agriculture of Bhutan and suggests various innovations for
boosting the sector. The need for the innovation is felt. Secondary research and data collection
will be carried out in this research by reviewing various relevant resources, such that a clear
understanding and in-depth knowledge is gained. A thematic analysis will be carried out in order
to find out the need for innovation in the Bhutanese agriculture. I have chosen the descriptive
research design and deductive research approach to carry out the research. The innovations that
are revealed through this research could be incorporated to help in enhancing the production in
the Bhutanese agriculture, thus improving the overall economy. The role of the government will
also be highlighted in the course of this research.

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Table of Contents
Introduction......................................................................................................................................5
Background of the study..................................................................................................................6
Studies that have been undertaken on Bhutanese agriculture so far................................................6
Similar studies that have taken place elsewhere..............................................................................9
Agriculture of Nepal......................................................................................................................12
Research aim and objectives..........................................................................................................16
Research questions.........................................................................................................................16
Rationale of the study....................................................................................................................17
Structure of the research................................................................................................................17
Literature review............................................................................................................................18
Traditional agriculture...................................................................................................................18
Innovation in agriculture................................................................................................................20
Use of ICT.....................................................................................................................................20
Use of RFID technology in agriculture and livestock...................................................................22
Precision agriculture......................................................................................................................23
Comparison between the current and best practice of the ICT......................................................24
Latest developmentsand enhancements in the agriculture of Bhutan............................................26
Methodology..................................................................................................................................28
Research philosophy......................................................................................................................28

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Research approach.........................................................................................................................29
Research design.............................................................................................................................29
Research strategy...........................................................................................................................30
Data collection method..................................................................................................................30
Limitations.....................................................................................................................................30
Ethical considerations....................................................................................................................30
Data analysis..................................................................................................................................31
Findings.........................................................................................................................................32
Theme 1:Issues that are faced by the agricultural sector of Bhutan..............................................32
Theme 2:Need for research in the agriculture industry of Bhutan................................................34
Theme 3: Types of innovation that are needed in the agricultural sector of Bhutan.....................35
Theme 4: The need for transformation to organic agriculture.......................................................36
Proposed measures derived from the research...............................................................................36
Current improvement in the agriculture of Bhutan........................................................................37
Discussion and Recommendations................................................................................................38
Introduction....................................................................................................................................38
Linking with objectives.................................................................................................................38
Linking with objective 1: To analyse critically the agriculture industry of Bhutan......................38
Linking with objective 2: To highlight the issues that are faced by the agricultural sector of
Bhutan............................................................................................................................................39

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Linking with objective 3: To determine the need and requirements of innovation in the
agricultural sector of Bhutan.........................................................................................................39
Recommendations..........................................................................................................................41
Innovation and technology that could be used in the agriculture of Bhutan.................................42
Conclusion.....................................................................................................................................43
Bibliography..................................................................................................................................46

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Introduction
Agriculture is one of the major industries in the countries of Asia. It often forms the
backbone of economy for them. Bhutan is a country that is largely based on agriculture for its
economy. Almost 95% of the people of Bhutan earn their living depending on agriculture. The
crops that are cultivated in Bhutan include rice, maize, potato. Bhutan is a small mountainous
country, located in the Himalayas and covers an area of 38, 394 square kilometres. However,
only 2.39% of the area it covers has cultivatable land. The majority of the full-time farmers of
Bhutan work on farms of three acres (Neuhoff, Tashi, Rahmann & Denich, 2017). The farmers
also practice a self-sustaining integrated farming system. Though it is of small size, the agro-
ecology is diverse which is achieved due to the variations in altitude. The agriculture of Bhutan
is very different from that in India. This is because India has a large variety of altitudes and
variations in the landscape as well as climate. However, Bhutan is a small country with little
plains land. Thus, the agriculture of India varies widely from that of Bhutan. The agriculture of
Nepal, could be compared to that of Bhutan. Both countries have similar landscape and
geographical features, along with similarity in the climatic conditions and demography (Salick,
Byg& Konchar, 2014). This research highlights the present agricultural scenario of Bhutan and
the need for innovation in the agriculture is also analysed.
This research raises the various issues that are faced by the agricultural sector of Bhutan
and the causes of decline in agricultural production. It covers the ways these issues could be
mitigated and under takes a search for evidence from various secondary sources of literature and
peer reviewed journals. It also sheds light on the agricultural sector should be revived. The study
discusses importance of the use of various technology and innovations in the agricultural sector
including the, use of the latest technologies such as IOT, RFID and ICT and their use in
agricultural and livestock with reference to examples of application in India and Nepal. The
success that these technologies have brought in to the agriculture of India and Nepal could be
followed by Bhutan in order to enhance the condition of agriculture in the country.
Agriculture is one of the most important activities that determine the economic growth of
the country. The economy of Bhutan is greatly dependent on the profit earned from agricultural
activities. The export of agricultural crops and cash crops to various countries ensures high
income for the country, thus contributing significantly to Bhutanese prosperity (Costa et al.,

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2013). More than 58% of the citizens living in the rural areas of Bhutan are involved in full time
agricultural activities (Neuhoff, Tashi, Rahmann & Denich, 2017). However, in recent times,
the production of the various crops has witnessed a noticeable decrease. This has resulted in a
drop of the economic stability in the country, along with an increase in poverty among the
people.
Background of the study
The people of Bhutan are dependent mainly on agriculture. However, a recent study
highlights the fact that the agriculture contributed almost 26% to the GDP in 2001 (MoAF,
2009). Then, in 2008, this was reduced to 19%. This rapid decline in the GDP highlights the
issue that lack of innovation and use of modern technology has led to this decline in the GDP
(Salick, Byg & Konchar, 2014).Involvement of a greater workforce in the industry was an
initial initiative that could have enhanced the agricultural productivity (Salick, Byg & Konchar,
2014). However, such initiatives were successful enough in order to ensure the steady
production of the agricultural and cash crops (Costa et al., 2013). Thus, the lack of innovation
and effective use of technology was realised. This is because, countries using innovation and
modern technologies have made remarkable progress in the agriculture, with the incorporation
of innovation. Thus, the need of innovation in the agricultural sector of Bhutan has risen
(Neuhoff, Tashi, Rahmann & Denich, 2017). India and Nepal being two of the neighbouring
countries of Bhutan had been incorporating various technologies, in order to ensure the high
agricultural production (Costa et al., 2013). However, such extensive use of technology was
not witnessed in Bhutan (Neuhoff, Tashi, Rahmann & Denich, 2017).
Studies that have been undertaken on Bhutanese agriculture so far
Bhutanese agriculture has been a topic of research for various researchers. This is
because the agriculture of Bhutan has been declining sharply. However, no previous research
has been able to provide adequate solutions or recommendations to ensure the enhancement of
the agriculture for the present era (Salick, Byg & Konchar, 2014). Attempts for the
introduction of various innovations have been made. Yet agriculture in Bhutan could not be
revived, even though Bhutan, is dominated by the rich agricultural diversity (Neuhoff et al.,
2014). The country is a home to more than 100 species of agricultural crops that grow in the
various regions of the country (Ray, 2016). Since the altitudinal variations as well as the

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climate variations are rich, a wide variety of crops grows all around Bhutan (Salick, Byg &
Konchar, 2014). Various studies that have been undertaken so far refer to attempts to highlight
the need for innovation in agriculture (Neuhoff, Tashi, Rahmann & Denich, 2017). Moreover,
the comparison with neighbouring Nepal and India, in terms of agriculture has also been made
(Kobayashi, Chhetri & Fukamachi, 2015). The previous studies highlighted the growth of the
agriculture in Bhutan and the steadiness with which this growth has been maintained (Salick,
Byg & Konchar, 2014). The agricultural sector of Bhutan was a well-performing sector, and
exceeded the projected target of 1.3% over the planned period of time (Salick, Byg & Konchar,
2014). These studies highlighted the fact that by the end of 2004, Bhutan had a history of 44
years of planned economic development (Neuhoff, Tashi, Rahmann & Denich, 2017).
However, with the rapid introduction of new technology in the world, Bhutanese
agriculture could not keep up and started losing impetus, while the domestic demand went on
increasing, with reduction in the supply (Neuhoff et al., 2014). The farmers of Bhutan today
remain poor and they do not have much idea regarding the use of technology in agriculture
(Kobayashi, Chhetri & Fukamachi, 2015). Moreover, with the lack of affordability of the
farmers, the agriculture of Bhutan remains unaided by technology (Salick, Byg & Konchar,
2014). The rural people are completely dependent on the agriculture and hence the wide use of
up to date technology is essential to ensure the agricultural growth in Bhutan (Ray, 2016).
Various researches has taken place in the similar field. The decline in the agriculture of
Bhutan has been a major issue in the country and attempts to ensure the revival of the industry
has taken place (Salick, Byg& Konchar, 2014). The causes of the decline in the productivity in
the agricultural sector are highlighted in various previous research (Neuhoff et al., 2014).
However, the need for innovation has been focused in this research while most of the previous
researches have not placed importance on the need for innovation in the agriculture of Bhutan
(Wangchuk, Siebert & Belsky, 2014). In order to ensure that the use of technology enhances the
productivity in Bhutan, it is important that the government take adequate initiatives in order to
ensure that the use of high technology is made available for the farmers (Kobayashi et al.,
2015). Moreover, the initiatives of the government, to procure high technology for the use in
agriculture, needs to be taken as well (Salick, Byg & Konchar, 2014).Loans with low interest
have to be given to the farmers of Bhutan so that they are able to make use of the technology and

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ensure success in the agriculture (Kobayashi, Chhetri & Fukamachi, 2015). Kobayashi,
Chhetri & Fukamachi, 2015 argued that the farmers are poor; hence, it is important that the
government take initiative in order to ensure that the farmers could use technology extensively,
without being burdened under pressure of expenses (Kobayashi, Chhetri & Fukamachi, 2015).
The previous research and studies are significant and recommend that there are significant
improvements in the agricultural conditions of Bhutan, thus facilitating the economic growth as
well (Neuhoff, Tashi, Rahmann & Denich, 2017).
Wide use of technology is important, for example, in order to ensure that genetically
modified crops could be incorporated in agriculture, thus negating the loss of crops due to
genetically weak crops (Salick, Byg & Konchar, 2014).Though genetically modified crops and
its use are a major controversy, researchers are of the opinion that they help in eliminating
various diseases in the crops, thus enhancing the business aspect of the agriculture in Bhutan
(Wangchuk, Siebert & Belsky, 2014).The GM food refers to the crop plants that are created
after being modified in the laboratory. This helps in enhancing the traits that are desirable in
order to ensure high production of the agricultural crops (Neuhoff, Tashi, Rahmann & Denich,
2017). The previous studies that have been taken up, by Kobayashi, Chhetri & Fukamachi,
2015, paves the way for this research as well. The genetic modification works in the process of
trial and error of selective breeding. With multiple trial and error, the best breed of the crops are
selected (Neuhoff, Tashi, Rahmann & Denich, 2017). The benefits of genetically modified
crops include the following:
1. Pest resistance: The genetically modified crops are often made pest resistant and thus
stop the plants from being damaged by the pests (Salick, Byg & Konchar, 2014). This is one of
the major advantages of genetically modified crops (Salick, Byg & Konchar, 2014).
2. Herbicide resistance: The genetically modified crops are often made herbicide
resistant. If the herbicides are sprayed on them directly, then the crops are not harmed (Salick,
Byg & Konchar, 2014). Only the weeds around the plants would be killed, thus protecting the
plants from the herbicides (Neuhoff, Tashi, Rahmann & Denich, 2017).

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3. Disease resistance: The crops are often genetically modified, in order to be resistant to
various diseases that commonly occur in various crops, thus assisting in ensuring high
productivity (Salick, Byg & Konchar, 2014).
4. Drought tolerance: The crops are genetically modified such that they can survive with
less amount of water.
5. Salinity tolerance: The crops can survive in saline water as well, if they are genetically
modified to be salinity tolerant (Neuhoff, Tashi, Rahmann & Denich, 2017).
6. Increase nutrition: The scientists are able to modify the crops in such a way that the
crops might increase its nutritional value, thus being more acceptable to the human beings for
consumption (Neuhoff, Tashi, Rahmann & Denich, 2017).
Thus, the use of the genetically modified crops is essential innovation in the agriculture of
Bhutan, thus helping the agricultural sector to fight against the various natural hazards such as
flood and draught, along with fighting the pesticides and herbicides (Siebert & Belsky, 2015).
The genetically modification of the crops also ensures that the nutrition contents of the crops are
enhanced (Salick, Byg & Konchar, 2014).
Similar studies that have taken place elsewhere
Similar attempts at innovation in agriculture have been taken up in countries such as
Nepal and India which have a similar agricultural profile to Bhutan (Siebert & Belsky, 2015).
Previous research has highlighted the facts that innovations areessentialin order to ensure
agricultural advancements in the fields of agriculture (Salick, Byg & Konchar, 2014).India is a
country having similar climatic conditions as well as landscape to that of Bhutan (Randhawa,
Singh& Kang, 2014). Moreover, India is also dependent on agriculture for its economy (Salick,
Byg & Konchar, 2014). However, though the economy of India is largely dependent on
agriculture, various government initiatives have been taken up, inorder to ensure the growth and
development of agriculture in India (Siebert & Belsky, 2015).Most of the Indian farmers are
now well-equipped with technology and have made remarkable advancements in the field of

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agriculture (Kobayashi, Chhetri & Fukamachi, 2015).For example, with the extensive use of
ICT in agriculture it have been remarkable in ensuring progress and success (Leeuwis, 2013).
Indian agriculture incorporated the use of GPS, along with that of ICT (Salick, Byg &
Konchar, 2014). With the use of GPS, remote tracking of the various agricultural devices could
be done (Dwivedi et al., 2015). For example, in India GPS devised tractors are widely used
(Leeuwis, 2013). This innovation is useful in tracking the tractors from remote locations such
that the farmers are able to locate the tractors without actually visiting the locations ( Kobayashi,
Chhetri & Fukamachi, 2015). According to, Salick, Byg & Konchar, 2014 the wide use of ICT
helps the farmers to forecast the weather and take the possible precautions. The improvement in
the weather forecast, along with the improvement in the access of the market, capacity building
and empowerment of the farmers are also facilitated with the use of ICT (Siebert & Belsky,
2015). Under the National Agriculture Technology Project (NATP), scheme, in India, the ICT
infrastructure has been created (Salick, Byg & Konchar, 2014). More than 400 ARIS cells have
been created and these facilitatethe agricultural developments in India (Neuhoff, Tashi,
Rahmann & Denich, 2017). These initiatives taken by India could be used by Bhutan.This is
because the climatic conditions, soil conditions as well as the regional altitude, in the
Himalayan region of India, are similar to those of Bhutan (Palanisami et al., 2014). Hence,the
use of ICT and advanced technology in the agriculture of Bhutan may be equally effective
(Siebert & Belsky, 2015).
The other advancements in the agriculture of India includeefforts by various companies that are
involved in the trading of the grains (Neuhoff, Tashi, Rahmann & Denich, 2017). Moreover,
more than 4000 kiosks have been created in various villages that ensure aid in gaining
procurements as well as cultivation support provided to the farmers (Kobayashi, Chhetri &
Fukamachi, 2015). Moreover, various initiatives have been taken up, in order to assure
agricultural enhancements (Salick, Byg & Konchar, 2014).Collaborating with the local service
providers, the village services include giving loans to the farmers at low rates of interest and
video conferencing with people who are able to educate the farmers and equip them with
technological advancements (Siebert & Belsky, 2015).
The studies that have taken place in the agricultural sector of India and Nepal could be
applied tothe context of agriculture of Bhutan. These studies and researches could be used

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successfully to help Bhutan catch up with other countries (Kobayashi, Chhetri & Fukamachi,
2015). Since agriculture forms the backbone of the economy for most Asian countries, it is
essential to undertake the researches that will ensure that the economy of these Asian countries
are made strong, with the support of technology (Sah, 2015). According to, Kobayashi,
Chhetri & Fukamachi, 2015, they claim that Indian being one of the strongest neighbours of
Bhutan, hence support could be extended to the agriculture of Bhutan (Kobayashi, Chhetri &
Fukamachi, 2015).The research suggests that the findings in case of the Indian agriculture could
be used successfully in the enhancement of the agriculture of Bhutan (Siebert & Belsky, 2015).
The research undertaken on India and Nepal is significant, and has resulted in significant
enhancement in agriculture, thus have a special significance in agriculture of Bhutan as well
(Leeuwis, 2013).
The extensive use of various technologies such as ICT and GPS trackers has been important in
the agriculture of India and Nepal (Neuhoff, Tashi, Rahmann & Denich, 2017). With the
advent of the Internet and ICT, various activities all around the world have been automated.
However, the use of these technologies in agriculture is still a new concept (Zulkifli & Noor,
2017). With the advent of Internet and enhancement in connectivity all around the world,
agricultural information could be automated with the use of computers and websites. Moreover,
expert advice, along with suggestions regarding the use of improved seeds and fertilizers, could
be broadcast easily with the extensive use of ICT (Neuhoff, Tashi, Rahmann & Denich, 2017).
The recommendation of government advisory committees could rapidly reach the farmers with
the use of ICT. Satellite communication has resulted in the enhancement of accuracy of the
information that is given to the farmers regarding weather conditions and accessibility. The
technology of remote sensing is essential in agriculture (Zulkifli & Noor, 2017). Remote sensing
is used in the field to sense any unwanted movement, example animals in the fields, along with
protecting the crops during the night (Neuhoff, Tashi, Rahmann & Denich, 2017). Extensive
use of mobile phones in the rural areas and among the farmers in a medium for banking
assistance advice on sale, and online loan applications and approval facilities for agriculture,
along with information about the latest improvements in the fields. Internet facilities help in
knowledge sharing and social media marketing, e-community and banking (Neuhoff, Tashi,
Rahmann & Denich, 2017). The incorporation of the sensor technology helps in the collection of
real time information, better quality of data and decision-making (Zulkifli & Noor, 2017).Data