Bhutan agribusiness transformation: balancing import substitution and export growth

Learning outcomes While completing this case, students will be able to: Case overview/synopsis Bhutan, a small Himalayan kingdom rooted in Gross National Happiness (GNH), faces a fundamental paradox. Although nearly 41.7% of its population is engaged in agriculture, the sector contributes only around 14.2% to national GDP. Despite fertile valleys and rich agro-biodiversity, Bhutan remains heavily dependent on food imports, which account for almost half of national consumption and reached US$199.43m (390,507 MT) in 2024–2025. This dependency undermines rural incomes and national food sovereignty. The Department of Agricultural Marketing and Cooperatives (DAMC), under Director Mr. Tashi Dorji, faces the task of reshaping Bhutan’s agricultural marketing system. His challenge is to reduce import dependence while pursuing ambitious export targets with the immediate goal of reaching Nu. 4.3 billion for the upcoming year, up from approximately Nu. 3.51 billion in 2024. Recent trade data show modest but promising export progress during the first half of 2025; however, outlook remains uncertain given dynamic market conditions and the absence of a clear strategic focus. The case captures Bhutan’s agricultural evolution, and the central dilemma of balancing import substitution with export promotion rooted in organic, high-altitude identity. Students assume Tashi Dorji’s role to recommend a strategic framework blending institutional reform, agricultural transformation and export competitiveness. Complexity academic level This case is designed for MBA and PGDM students specializing in Agribusiness Management, Rural Development, International Trade and Development Policy. It fits well in courses such as Agricultural Marketing, Agribusiness Environment and Policy, International Trade and Development Strategy. It can also be used in executive programs for policymakers and managers working in agricultural value chains and export development. Subject code CSS 11: Strategy.