Over 69% of the Bhutanese populations are engaged in Agriculture. Majority of the rural population is directly involved in farming and other related agricultural enterprises. Agriculture will remain the most important source of employment and rural livelihood of the Bhutanese people for several decades even though the relative contribution of agriculture to GDP is declining (presently about 34%), The Royal Government has placed continuous emphasis for the development of agriculture from the very beginning of the planned development in the country.

75% cereals dominate the diet composition of Bhutanese people, and non-cereals including livestock products accounts for 25%. Traditionally nine food crops are recognised in the Bhutanese agriculture systems known as "the dru-na gu". These are rice, maize, wheat, barley, buckwheat, millets, amaranth, mustard and pulses.

Food crop production is generally based on a low level of purchased inputs. Soil fertility is maintained mainly through use of organic manure. Despite increases in the production over the years, the domestic production of rice has not been able to meet the increasing requirement. The deficit is met through imports. Rice is the most preferred food and the demand continues to rise.

Present food grains self sufficiency through domestic production stands at around 65% against the Plan target of 70%. The food grain gap of 35% is met through the import of mainly rice. Present rice self sufficiency through domestic production stands at around 50%. Per capita food availability is quite comfortable at around 2500 kcal.

About 80% of the domestic cereal production comes from maize and rice contributing 40% each. Wheat and other minor cereals make the remaining contribution. The present production of maize is considered adequate to meet the domestic requirement. Increase in maize production has started generating marketable surpluses. FCB has started to purchase the surplus maize from farmers. Wheat and minor cereals though cultivated in small acreage play an important role for household food security.

Mustard is the main crop for edible oil extraction and for oil cake to use as feed to livestock. However, the present domestic production of Mustard does not meet the requirement. A significant quantity of edible oil and oil cake is imported.

The export earning from sale of cash crops covers the cost of import of basic food commodities like rice and edible oils.

During the 8th Plan emphasis was given in promoting horticulture. Emphasis was given on human resource development and capacity building. A separate horticulture division has been created recently.

Support services are provided to enhance production of apple, potato, mandarin, cardamom, and several vegetables. Promotion of potential new crops is in progress. Seeds and seedlings of new crop varieties of vegetables and fruits (walnuts, mangoes, chestnuts, peach, pear, plums, apricots, oranges etc) worth Nu 9.0 million was promoted. Over 350,000 seedlings of different fruit crops were distributed to the farmers for promotion in 8th Plan.

Export of horticultural products has increased consistently despite the challenges posed by adverse climatic conditions leading to crop damages and disruption of road transportation. The following are the export figures for the recent three years.