February 19, 2026
THIMPHU – The Year of the Snake brought both progress and challenges to the agriculture and livestock sectors. While notable advancements were made in curbing human-wildlife conflict, expanding irrigation, promoting mechanisation, strengthening insurance coverage, increasing high-value exports, encouraging commercial farming, and deepening international partnerships, concerns grew over the increasing scarcity of agricultural land due to urban development and infrastructure expansion.
As one of the key contributors to Gross Domestic Product (GDP), the agriculture and livestock sector recorded 5.3 percent growth in the third quarter of 2025, raising its share of GDP to 14.17 percent.
This growth represents a 2.57 percentage point increase from the 2.73 percent recorded during the same quarter last year, signalling renewed momentum in crop, livestock and forestry production.
In terms of employment, the agriculture sector remains the largest employer, accounting for more than 41 percent of total employment as of 2024. However, employment in the sector has steadily declined.
Despite the shrinking workforce, Gross Value Added from the sector reached Nu 12.521 billion, with agriculture’s share of GDP increasing from 9.15 percent to 12.48 percent.
One of the most impactful interventions has been the large-scale installation of chain-link fencing to mitigate human-wildlife conflict, helping reduce the previous crop losses of 15 to 30 percent annually.
In the 2024–25 fiscal year, the ministry implemented 83 chain-link fencing schemes covering more than 12,800 acres and extending over 420 kilometres, benefiting nearly 4,900 households. Of these, 76 schemes have already been completed, with the remainder nearing completion.
In the 2025–26 fiscal year, the ministry is implementing 105 schemes covering nearly 12,800 acres and 562 kilometres, benefiting around 5,900 households. The investment of over Nu 885 million reflects the government’s commitment to safeguarding farmers’ livelihoods.
The Year of the Snake also brought solutions to labour shortages in the agriculture sector, with the distribution of more than 1,000 mini tillers under cost-sharing arrangements.
The International Fund for Agricultural Development-assisted Commercial Agriculture and Resilient Livelihoods Enhancement Programme provided more than 808 mini tillers worth Nu 16 million to farmers in six eastern dzongkhags. Similarly, the World Bank-supported Food Security and Agriculture Productivity Project supplied 349 mini tillers worth Nu 12.5 million.
Irrigation development has further strengthened agricultural output. Four of the five major irrigation schemes undertaken have been completed in Haa, Pemagatshel, Samdrupjongkhar and Bumthang, while the remaining project in Punakha is ongoing.
Additionally, four products — Yathra, buckwheat and honey from Bumthang, and Zoetey from Merak-Sakteng — have been identified for Geographical Indication (GI) recognition to enhance their branding and market value.
The ministry also partnered with Desuung Headquarters to establish commercial farms covering more than 100 acres in Samrang and Pemathang in Samdrupjongkhar, and with the Royal Bhutan Police to develop a 176-acre farm in Yarjugang, Wangdue Dzongkhag.
Market access has also improved through institutional linkages with Gyalsung Academies, as well as school and hospital feeding programmes.
In November last year, the government launched the National Crop and Livestock Insurance Scheme, covering rice, maize, potato, orange, cattle, poultry and piggery against extreme weather events, wildlife conflict and animal diseases.
International co-operation has expanded, with the MoAL signing a major Memorandum of Understanding (MoU) last year with the Government of India to boost agriculture and livestock development through value addition, capacity building and germplasm supply.
Following a July 2024 MoU with Mongolia, Bhutan received germplasm of yak, sheep, horses and mastiff dogs to strengthen breed enhancement efforts.
Meanwhile, a separate MoU with the Government of India on subsidised fertiliser supply is expected to ensure affordable and uninterrupted access to critical inputs, thereby sustaining productivity growth.
Despite persistent challenges in the agriculture sector, particularly the increasing scarcity of land due to urban development and infrastructure expansion, the ministry is prioritising high-value, export-oriented crops.
“The ministry has prioritised high-value, export-oriented crops, vegetables and fruits,” said Thinley Namgyel.
Under the Million Fruit Trees Plantation Project and related initiatives, the ministry is promoting commodities such as asparagus, mushrooms, cardamom, honey, yak cheese and fruit orchards.
In recent years, although overall production has declined, the diversity of crops, cereals, fruits and vegetables has increased.
“While employment in agriculture has steadily declined, productivity has improved with lesser number of people are producing almost the same amount of produce,” the secretary said.
In a positive development, the ministry aims to raise the sector’s GDP contribution from Nu 31 billion to Nu 50 billion by 2029, while tripling agricultural exports from Nu 3 billion to Nu 9 billion over the same period.
The ministry’s strategy focus is on productivity, value addition, climate resilience and inclusive growth.
“In recent years, the diversity of crops, cereals, fruits and vegetables has increased,” the Secretary said. “While production has decreased over the years, substitute varieties have increased.”
