The foundational work is 100 per cent complete and expected to be in operation by December 2026. - Kuensel/ANN
THIMPHU: Despite substantial Project Tied Assistance (PTA) funding, the country’s flagship mega commercial farms have so far yielded limited tangible results raising concerns over productivity, timelines and returns on public investment.
The foundational work is 100 percent complete and expected for operation in full swing by December 2026.
For decades, collective farming in the country has struggled to gain a firm foothold. Models such as cooperative farming and the Land User Certificate (LUC) programme promised economies of scale and shared prosperity but often faltered due to weak governance, labour shortages and poor market integration.
Beginning with the 13th Plan, however, a new experiment is taking shape, one that blends commercial agriculture with youth engagement, disciplined workforce mobilisation and prisoner rehabilitation.
The Ministry of Agriculture and Livestock through the Department of Agriculture (DoA), is spearheading the establishment of mega commercial farms under two flagship models – chirub farms for desuups (Guardians of Peace volunteer force) and youth, and Bhutan’s first Open-Air Prisoners (OAP) farm at Yarjugang in Wangdue.
Chirub farms
Two chirub farms are identified, one in Pemathang, Samdrupjongkhar, covering 60.15 acres, and another in Samrang, spanning 39.39 acres. Developed in collaboration with Desuung office, the farms are envisioned as both commercially viable enterprises and structured training grounds for young Bhutanese.
“These farms are not welfare projects,” a senior official from the ministry said. “They are designed as market-driven businesses that must eventually stand on their own.”
Under the implementation framework, the DoA is responsible for establishing the farms as turnkey projects, covering land development, infrastructure, and production systems.
Once operational, management will gradually transfer to the Desuung office, which will deploy desuups for daily operations.
Agriculture Minister Younten Phuntsho said that the transition has been deliberately structured to avoid the pitfalls of past collective farming efforts.
“A formal memorandum of understanding governs the handover, clearly delineating responsibilities,” he said.
While Desuung Office will assume control over staffing, finances, and operations, the DoA will continue to provide technical support, troubleshooting, and performance reviews.
Land use changes (LUCs) for both farms have been secured in the name of Desuung office, ensuring tenure security and institutional accountability. “This gives the managing agency a real stake in performance and long-term sustainability,” an official noted.
Total expenditure for the Chirub Farms in the fiscal year 2024–25 stands at Nu 113.7 million (US$31,929), funded through support from the government of India. Overall, Nu 242.21 million has been allocated for their establishment.
Progress on the ground
While overall development has been slower than anticipated, key milestones have been achieved at the chirub farms. Farm boundary fencing is complete at both Pemathang and Samrang, strengthening protection against wildlife intrusion.
In addition, over eight acres of orchard have been planted with high-value crops such as mango, seedless lime, macadamia and dragon fruit, selected for their market demand and import-substitution potential.
Vegetable production infrastructure is also taking shape, with 15 mega polyhouses under construction to support year-round cultivation of essential crops. Procurement of farm machinery is underway, a shift toward mechanisation to address labour constraints and improve efficiency.
Providing an implementation update, Ngawang from the DoA said the chirub farms are expected to be fully operational by December 2026.
“About 59 per cent of physical activities are already complete,” he said. “By June 2026, most planned works will be finished, except for construction of desuup quarters, cold storage, farm toilets, a machinery shed and an onion shed, which are scheduled for completion by December 2026.”
Yarjugang OAP farm
Another major component of the programme is Bhutan’s first Open-Air Prisoners Farm at Yarjugang in Wangdue, developed on approximately 300 acres.
The project is a collaboration between the DoA, the Royal Bhutan Police (RBP), and the PEMA Secretariat (for Mental Health Promotion and Services). The model aims to transform incarceration into rehabilitation through structured, productive work.
“About 300 selected open-air prisoners are being trained in commercial-scale agriculture, gaining hands-on experience in crop and livestock production, farm machinery operation and basic farm management,” the DoA reported. “Inmates are also exposed to vocational skills such as masonry, carpentry and tailoring, supported by the PEMA Secretariat.”
While the DoA oversees commercial farm development, the PEMA Secretariat funds reintegration facilities.
The Agriculture Research and Development Centre–Bajo and the Wangdue Dzongkhag Administration are closely involved in on-ground implementation.
The Yarjugang OAP Farm has been allocated Nu 184.8 million, fully funded through PTA support.
“This is about dignity of work and reintegration,” the ministry’s official said. “We want inmates to leave with skills, discipline and confidence—qualities that reduce the risk of relapse into unemployment or vulnerability.”
Production and market linkage
Beyond production, both the chirub and Yarjugang farms are expected to serve as national training hubs, particularly for horticulture value-chain development. Farmers nationwide will receive hands-on exposure to modern practices such as protected cultivation, precision agriculture, and coordinated marketing.
“Rather than chasing volume alone, production planning is aligned with market demand,” Lyonpo Younten Phuntsho said. “We are focussing on high-demand fruits, vegetables, and livestock products that can substitute imports.”
Market risks are being mitigated through assured off-take arrangements.
For chirub farms, the Pemathang Gyalsung Academy will serve as the primary buyer, while produce from Yarjugang will mainly supply the RBP and its affiliated institutions. Secondary markets include Gelephu Mindfulness City and other domestic outlets.
The Department of Agricultural Marketing and Cooperatives (DAMC) and the Farm Machinery Corporation Limited are facilitating aggregation, transport, and broader market access. Surplus produce may be processed into higher-value products with technical support from the National Post Harvest Centre and DAMC.
According to the ministry, salaries for desuups at chirub farms are covered by Desuung office through the Desuung National Service programme, significantly reducing recurrent labour costs. Farm revenues will be reinvested primarily in inputs, maintenance, fuel, and infrastructure upkeep.
Officials project that the chirub farms could produce around 341 metric tonnes annually, generating revenues of Nu 15 to 20 million.
The break-even point is expected in the sixth year of operation, after which Desuung office is expected to operate the farms independently.
Ngawang said that sustainability strategies focus on hi-tech farming, soil fertility management, and integrated pest management. Continuous training will be provided by technical experts from ARDCs, the National Soil Service Centre, and the National Plant Protection Centre.
“Strict surveillance and monitoring are integral to the project to enable timely intervention in case of technical issues,” he said, adding that chain-link fencing remains the primary solution for managing wildlife intrusion.
Manpower stability is another defining feature.
While labour turnover is common in commercial farming, the OAP Farm will maintain a steady workforce of 200 to 300 inmates at any given time, with minimal labour costs.
Chirub farms will also strategically engage interested, home-based desuups committed to nation-building.
Impact and sustainability
The annual food requirements of the five gyalsung academies, serving around 17,500 cadets and staff, are estimated at 2,587.2 metric tonnes of fruits and vegetables.
While farmers’ groups are already linked to these institutions, commercial farms will supply commodities that cannot be met through existing arrangements. Output from Yarjugang will primarily cater to the internal consumption needs of the RBP and its institutions, effectively eliminating immediate market risks.
Looking ahead, DAMC will continue exploring domestic and international markets. However, officials acknowledge that large commercial farms could potentially compete with smallholder farmers as production scales up.
To mitigate this risk, guidelines will be developed to ensure nearby smallholders benefit from the presence of commercial farms rather than being displaced. “Such policies are essential to prevent unintended consequences and ensure long-term sustainability,” an official said.
Though progress has been slower than initially expected, the chirub and Yarjugang farm initiatives constitute a long-term investment in commercial agriculture, skills development, and social reintegration, an endeavour whose success will be measured not merely in yields and revenue, but in livelihoods created and systems sustained. - Kuensel/ANN
