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YK Puddle
Fifteen years ago, Sonam Chophel, now CEO of Cottage Small Enterprises (CSI) Market, came up with a groundbreaking business idea to sell high-quality agricultural products “native to Bhutan.” Today, that vision has grown into a thriving industry with over 600 entrepreneurs driving Bhutan’s CSI Market, 60% of whom are women.
Despite the inherent risks and uncertainties of entrepreneurship, Bhutan’s agri-food sector shows good growth prospects, thanks in part to rising agricultural output and growing interest in transforming the agricultural sector, Sonam Chopel told a national youth seminar in Thimphu on August 12.
He highlighted several challenges facing the agri-food sector, including access to finance, limited entrepreneurial resources, limited use of technology, and market structure. “In addition, the sector faces challenges with lengthy bureaucratic certification processes.”
Despite these obstacles, Sonam Chopel said the country’s agri-food sector is performing relatively better than other regions.
“There is a growing recognition that the key to unlocking the full potential of the sector lies in prioritizing investments along the value chain,” he said. “Enhancing access to data, strengthening the entrepreneurial ecosystem and promoting public-private partnerships are all key steps that will help overcome existing challenges,” he said.
Druksell Group, an e-commerce and brick-and-mortar retail outlet, embodies the promise of the sector, demonstrating how focusing on the value chain can help entrepreneurs meet domestic demand and explore export opportunities.
Sonam Chopel said that with the right support, Bhutan’s focus on quality local products could become its unique selling point in local and international markets. “Agri-food entrepreneurship in Bhutan has the potential to drive economic growth and make a significant contribution to national development,” he said.
Speaking on the issue of access to capital for young entrepreneurs in the agri-food sector, Tshering Om, CEO of Bhutan Development Bank Limited, said the bank has so far disbursed Ngultrum 4.5 billion in loans to the agriculture sector, which accounts for 25% of its overall loans.
“Interested individuals can apply for loans, but it is also important to have a clear idea based on the country’s needs and priorities,” she said.
She said the government has allocated N3.3 billion from the Economic Stimulus Package (ESP) for the agriculture sector. This unsecured loan is available through all financial institutions at an interest rate of 4%. “All financial institutions are part of the ESP and interested entrepreneurs can avail it,” said Tshering Om.
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