FMCL buys Nu 33.55 million worth of crops to support farmers
Last Updated on February 7, 2025 6:12 am
In a move to support local farmers and stabilise agricultural supply chains, the Farm Machinery Corporation of Bhutan Limited (FMCL) has purchased crops worth Nu 33.55 million through its aggregation programme, price guarantee scheme.
Launched on November 7, 2024, the initiative, funded by the economic stimulus programme (ESP), offers market assurance to farmers.
As of February 4, 2025, FMCL has procured 744.09 metric tonnes (MT) of paddy, maize, and wheat from 10 dzongkhags. This includes 324.15 MT of paddy valued at Nu 19.57 million, 392.28 MT of maize worth Nu 11.77 million, and 27.66 MT of wheat at Nu 2.21 million.
Under the price guarantee scheme, FMCL has set purchase prices ranging from Nu 50 to 64 per kilogramme (KG) for paddy, depending on the variety, Nu 30 per kilogram for maize, and Nu 80 per kilogram for wheat.
The FMCL plans to expand its purchase basket, adding quinoa by the end of March 2025, with peanuts and soybeans slated for inclusion later in the year, aligning with the cropping calendar.
For this year, the FMCL has set a target of purchasing 8, 527 MT of six staple crops—paddy, wheat, maize, quinoa, peanuts, and soybeans.
This includes 4, 182.37 MT of paddy, 229.20 MT of wheat, 3, 981.79 MT of maize, 83.64 MT of quinoa, 35 MT of peanuts, and 15 MT of soybeans.
FMCL’s Chief Executive Officer, Wangda Dukpa, said that the programme is progressing smoothly without major challenges.
“The initiative will address the longstanding issue of farmers struggling to sell their produce in bulk, often relying on Sunday markets,” he said. “This initiative provides farmers with market assurance for identified crops, stabilises price, and enhances supply chains.”
Initially, the crops will be sold domestically, with plans to expand to export markets in the future.
The aggregation programme operates through five regional offices located in Bajo in Wangdue, Paro, Samtenling in Sarpang, Khangma in Trashigang, and Bumthang.
Once purchased, the crops are transported to FMCL warehouses equipped with milling facilities.
Currently, three warehouses are operational in Bajo, Chhuzagang in Sarpang, and Phuntshothang in Samdrupjongkhar. There are plans to establish five additional warehouses in Bumthang, Mongar, Samtse, Paro, and Trashigang.
The government has allocated Nu 266.67 million to support the aggregation programme, which covers crop purchases, purchase of rice mills, farm machinery, and other related expenses.