28/09/2016
The country's economy is based on agriculture, forestry, tourism and the sale of hydroelectric power to India. About 70 per cent of the population live in rural areas and most depend on subsistence agriculture, including livestock and forestry. The average farm size is about 1.7 hectares. Poverty is almost entirely a rural phenomenon, and affects more than 30 per cent of the population.
With much of Bhutan too steep, too high or too cold to farm, only 8 per cent of land is cultivable, and most of this is fragmented and scattered in difficult terrain, making farm labour intensive and mechanisation difficult. Characterised by remoteness and inaccessibility, marketing and large-scale commercialisation is a significant challenge. In many rural communities, people have to walk from a few hours to a few days to reach the nearest road head. As a result, barter trade is prevalent in the country. Smallholder farmers also face other constraints, including the small size of landholdings, lack of irrigation, poor soil fertility, limited access to technologies and inputs, few off-farm employment opportunities, poor access to markets and high transport costs.
Rice is the main staple crop (© IFAD/Anwar Hossain)
Rice is the main staple crop
© IFAD/Anwar Hossain
Rice is the main staple crop and is grown by about 60 per cent of rural households. Over 500 varieties of local rice have been collected and catalogued. Bhutan consumes about 100,000 tonnes of rice a year but only produces half of that amount. Low-altitude rice is often grown in rotation with crops such as mustard, wheat, pulses and tropical fruit. Other major crops include maize, buckwheat, barley, foxtail millet, finger millet, potatoes and soybean.
While most households rear livestock for home consumption, livestock farming and nomadic herding are the predominant activities in the alpine and cool temperate zones. Over 80 per cent of rural households own cattle. Other significant livestock include poultry (reared by about 65% of rural households), pigs (38%), horses (23%), goats (15%) and yaks (2%). Inadequate pasture land and poor access to markets are significant constraints to improving production, but increasing urban demand for livestock products is encouraging farmers near urban areas to keep better breeds and improve feed and fodder management.
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