3.5 Bhutan Food and Additional Suppliers
Overview
In Bhutan agriculture provides a livelihood to around 60% of the population and consists largely of subsistence farming and animal husbandry. Of Bhutan’s 7.8 % arable land, only 2.93 % is under cultivation. Therefore, Bhutan imports most of its food commodities from India. Main items imported are rice, meat, dairy products and vegetables.
According to trade statistics, the country in 2015 imported 83,646.083 MT rice and spent BTN 1.6 billion (USD 24 million). In 2016, the country imported rice worth BTN 1.9 billion (USD 29 million). While Bhutan exports cardamom, potatoes, apples and oranges to India and Bangladesh.
In 2016 alone Bhutan imported BTN 1.54 billion (USD 24 million) worth of rice from India. While Bhutan exports cardamom, potatoes, apples and oranges to India and Bangladesh.
Top items imported by Bhutan in 2016 include vehicles, petroleum products and food while top exports include electricity, cement and minerals.
Phuentsholing is the main entry point for Bhutan and hence the main business hub where most of the trade takes place. 90% of food commodities that enter Bhutan come from India. Manufacturing capacity of Bhutan, in terms of food, is limited to juices, jams, vegetable oils, chips, pickles and other beverages.
The Observatory of Economic Complexity – MIT (OEC):
http://atlas.media.mit.edu/en/profile/country/btn/
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
3.5.1 Bhutan Food Suppliers
Overview
Most of the Bhutanese population consumes rice, maize, millet, potatoes, pulses, fruits, and vegetables. Bhutan continues to rely on food imports from India as the in-country manufacturing capacity is very limited. The major wholesalers and distributors of Fast Moving Consumer Goods (FMCG) are Tashi Commercial Corporation (TCC), Food Corporation of Bhutan Ltd (FCBL), Damchen Agencies, 8-Eleven and Zimdra Food Private Limited. All these companies import food from India and distribute within Bhutan. While there are many small scale wholesalers and retailers spread throughout the country.
4.10 Bhutan Supplier Contact List
Retail Sector
The retail sector in Bhutan is generally dominated by small sale retailers who buy from main wholesalers like FCBL, TCC, Damchen Agencies, 8- Eleven and Zimdra and sell to the final consumers. It is important to note that most of the whole sellers purchase their stocks from India as they have obtained franchise rights from major companies.
Types of Retailers Available |
|
Type of Retailer |
Rank (1-5, in which relatively 1 is the most commonly used by the population and 5 is the least) |
Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains[p2] . |
4, Supermarkets are common only in major towns like Thimphu, Phuentsholing and Paro and most people still buy from the small convenience shops. It should also be noted that what is here classified as supermarkets would be seen as large convenience stores in most other countries. |
Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of chain or cooperative. |
3 |
Permanent shop with strong supply capacity – individually/family owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options. |
3 |
Permanent shop with limited supply capacity – individually/family owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options. |
1 (Most of the retail outlets in Bhutan fall under this category) |
Mobile Shop/Market Stand – individually/family owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments. |
|
Wholesale – Tashi Commercial Corporation
The Tashi Group of companies is the largest privately owned group of companies in Bhutan with over 40 subsidiaries companies. Tashi Commercial Corporation (TCC) is one of them established in 1985. TCC runs a chain of supermarkets and FMCG wholesale business throughout Bhutan. From its six main departmental stores/hubs, five are located in Phuentsholing, Thimphu, Gelephu, Paro, Samdrup Jongkhar and Wangduephodrang. TCC is the franchise holder of over 50 reputed companies from India and abroad. TCC also own 55 marketing vans which do mobile marketing and reaches to consumers located in the remote places.
More information of Tashi Group can be found at:
Supplier Overview |
|
Company Name |
Tashi Commercial Corporation |
Address |
BOC Petrol station, Phuentsholing Thromde |
Does the supplier have its own production / manufacturing capacity?
|
Yes, the supplier produces confectionary, juices and beer. |
Does the supplier have its own retail capacity?
|
Yes, the supplier has five departmental stores located in six different towns of Bhutan (Phuentsholing, Thimphu, Gelephu, Paro, Samdrup Jongkhar and Wangduephodrang) |
Does the supplier have its own transport capacity? |
Yes, they have 55 marketing and delivery vans. |
Does the supplier have its own storage facilities? |
Yes, 25,000 sq ft (2,300 sqm) at Phuentsholing and all departmental stores have anywhere between 8,000-12,000 sq ft (750 – 1,100 sqm). |
Approximate Turnover in MT |
Average monthly turnover is around BTN 40 million (approximate) |
Payment Methods Accepted |
Cash, cheque, bank transfer and bank draft. They also provide credit facilities to their regular customers. |
Other Comments or Key Information |
TCC is the largest wholesaler and retailer in the country. |
Other Locations |
|
Region(s) |
Service Location(s) |
Thimphu. |
Near Clock Tower |
Gelephu |
Gelephu Thromde |
Samdrup Jongkhar |
Samdrup Jongkhar Thromde |
Paro |
Paro Town |
Wangduephodrang |
Bajo Town |
Primary Goods / Commodities Available |
||
Commodities by Type** |
Comments |
|
00 - Live animals (other than fish, crustaceans, molluscs, etc.) |
NA |
|
01 - Meat and meat preparations |
NA |
|
02 - Dairy products and birds’ eggs |
Yes |
Processed dairy products |
03 - Fish (not marine mammals), crustaceans, molluscs… |
NA |
|
04 - Cereals and cereal preparations |
Yes |
|
05 - Vegetables and fruit |
Yes |
|
06 - Sugars, sugar preparations and honey |
Yes… |
|
07 - Coffee, tea, cocoa, spices and manufactures thereof |
Yes |
|
09 - Miscellaneous edible products and preparations |
Yes |
All kinds of grocery items consumed by Bhutanese. |
41 - Animal oils and fats |
NA |
|
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated |
Yes |
|
Wholesale – SUPPLIER CHHARU TSHONGDEL
Chharu Tshongdel is relatively a new supplier in Bhutan. Though new, it is better equipped than other local suppliers because it has the capacity to mill and fortify rice, which is an advantage for WFP Bhutan. Perhaps this is the only local supplier which can compete at regional level as it has a milling as well as fortification facilities. No other wholesaler in Bhutan has such facilities. However the limitation of this company is that it specialises only in rice and deals with no other commodities.
Supplier Overview |
|
Company Name |
CHHARU TSHONGDEL |
Address |
Dhamdara Industrial Area, Phuentsholing Thromde |
Does the supplier have its own production / manufacturing capacity?
|
No, however the supplier has Rice milling and fortification facility. |
Does the supplier have its own retail capacity?
|
No, It supplies to humanitarian agencies like WFP and small retailers. |
Does the supplier have its own transport capacity? |
No, they hire transporters as and when required. |
Does the supplier have its own storage facilities? |
Yes , up to 400 mt. |
Approximate Turnover in MT
|
On an average the wholesaler is able to make a turnover of around 400 mt a month. |
Payment Methods Accepted |
Cash, cheque, bank transfer and bank draft. |
Other Comments or Key Information |
The wholesaler is quite new. The company started only from 2015. However, so far the company has delivered as per the contractual terms with WFP. |
Other Locations |
|
Region(s) |
Service Location(s) |
CHHARU TSHONGDEL operates only in Phuentsholing region at the moment. |
NA |
Primary Goods / Commodities Available |
||
Commodities by Type**
|
Comments |
|
00 - Live animals (other than fish, crustaceans, molluscs, etc.) |
NA |
|
01 - Meat and meat preparations |
NA |
|
02 - Dairy products and birds’ eggs |
NA |
|
03 - Fish (not marine mammals), crustaceans, molluscs… |
NA |
|
04 - Cereals and cereal preparations |
Rice |
The wholesaler at the moment supplies only rice. |
05 - Vegetables and fruit |
NA |
|
06 - Sugars, sugar preparations and honey |
NA … |
|
07 - Coffee, tea, cocoa, spices and manufactures thereof |
NA |
|
09 - Miscellaneous edible products and preparations |
NA |
|
41 - Animal oils and fats |
NA |
|
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated |
Na |
|
Wholesale – Zimdra Food Private Limited
Zimdra Food Private Limited (ZFPL) was established in 2004 to cater to the FMCG market of Bhutan. The unit mostly deals in imported consumer goods and beverages from third countries. The Management of Zimdra Industries understands that the consumer market has high potential in Bhutan and its growing with the increase in the population and economic standard of the nation. ZFPL also manufactures processed milk, and a variety of juices.
For more information visit their website:
Supplier Overview |
|
Company Name |
Zimdra Food Private Limited |
Address |
Above main traffic, Thimphu Thromde |
Does the supplier have its own production / manufacturing capacity?
|
Yes, the supplier produces processed milk and a varieties of, juices on the basis of imported milk and concentrate respectively. |
Does the supplier have its own retail capacity?
|
Yes, the supplier has two supermarkets in Thimphu and Phuentsholing. |
Does the supplier have its own transport capacity? |
No, it relies on hired transport. |
Does the supplier have its own storage facilities? |
Yes , 25,000 sq ft (2,300 m2) at Phuentsholing and 10,000 sq ft (930 m2)at Thimphu. |
Approximate Turnover in MT
|
Average monthly turnover is around BTN 20 million (approximate) |
Payment Methods Accepted |
Cash, cheque, bank transfer and bank draft. They also provide credit facilities to their regular customers. |
Other Comments or Key Information |
ZFPL is an emerging wholesaler and retailer and has prospect to expand its business to other parts of the country as well. |
Wholesale – Food Corporation of Bhutan
The Food Corporation of Bhutan Ltd (FCBL) was established under Royal Charter issued on 16th August 1974 by His Majesty the Fourth King in order to institutionalize a centralized procurement and distribution system of essential food supplies in the country. Today FCBL functions independently with no financial liabilities and dependence on the government. One of the main mandates of FCBL is to maintain national food security reserve in case of emergencies. Other mandates include;
- Procurement and distribution of food grains and other essential commodities for the country including institutional supplies.
- Promote trade in agricultural and horticultural produce to ensure fair prices for both growers and consumers. .
- To construct and operate adequate warehouses across the country to facilitate food items storage and distribution.
- To manage and operate auction centres as a convenient market place of trading for growers and buyers.
- To facilitate marketing of domestic products through the auctioning system while generating meaningful revenues to the corporation for long term sustainability.
- Administer and supervise the functioning of the Cooperative Marketing Societies in Bhutan.
FCBL has 47 warehouses across the country and some 119 farm shops through which, it sells food commodities to the public at a reasonable price. The number of farm shops is expected to increase to 205 in the coming years.
For more information visit their website:
Supplier Overview |
|
Company Name |
Food Corporation of Bhutan Limited (FCBL) |
Address |
Phuentsholing, Thromde |
Does the supplier have its own production / manufacturing capacity?
|
No |
Does the supplier have its own retail capacity?
|
Yes, the supplier has 47 warehouses spread throughout the country and 119 farm shops located in the remote part of the country. |
Does the supplier have its own transport capacity? |
Yes, there are presently 36 vehicles of different capacities owned by FCB. |
Does the supplier have its own storage facilities? |
Yes, the total capacities of all warehouses and transit stores are 19,000 MT. |
Approximate Turnover in MT
|
Average monthly turnover is around BTN 70 million (approximate) |
Payment Methods Accepted |
Cash, cheque, bank transfer and bank draft. They also provide credit facilities to their regular customers. |
Other Comments or Key Information |
|
Other Locations |
|
Region(s) |
Service Location(s) |
Gelephu |
Gelephu, Thromde |
Samdrup Jongkhar |
Near the Dzong |
Thimphu |
Changzamtok |
Primary Goods / Commodities Available |
||
Commodities by Type** |
Comments |
|
00 - Live animals (other than fish, crustaceans, molluscs, etc.) |
NA |
|
01 - Meat and meat preparations |
NA |
|
02 - Dairy products and birds’ eggs |
Yes |
|
03 - Fish (not marine mammals), crustaceans, molluscs… |
NA |
|
04 - Cereals and cereal preparations |
Yes |
|
05 - Vegetables and fruit |
Yes |
|
06 - Sugars, sugar preparations and honey |
Yes |
|
07 - Coffee, tea, cocoa, spices and manufactures thereof |
Yes |
|
09 - Miscellaneous edible products and preparations |
Yes |
|
41 - Animal oils and fats |
NA |
|
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated |
Yes |
|
**For non-FOOD products please see section 3.5.2 Additional Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
3.5.2 Bhutan Additional Suppliers
Overview
There is limited manufacturing/production capacity in Bhutan especially in terms of operational support equipment. Most of these items are imported from India and other countries. There are many small, medium and large companies / wholesalers who hold a hardware license and supply different kinds of building, construction, electrical, plumbing materials. Some of these wholesalers are franchise holders of branded companies and manufacturers based in India. Lead time for the delivery of these materials can take anywhere between 15 days to two months as these local companies / wholesalers further need to order from the parent companies or distributors. Therefore, procurement needs to be planned accordingly.
For more information on suppliers’ contact
details, please see the following link:
4.10 Bhutan
Supplier Contact List
Wholesale – Ugen Trading House (UTH)
Ugen Trading House (UTH) provides total solutions for Communications, Security Systems, Fire & Rescue Systems, Consultancy Services, Automobile, Heavy Earthmoving, Construction Equipment, Solar and Power Systems.
Supplier Overview |
|
Company Name |
Ugen Trading House |
Address |
Doibum Road |
Does the supplier have its own production / manufacturing capacity? |
No |
Does the supplier have its own retail capacity? |
Yes, the company sells good to government as well as directly to end-users. |
Does the supplier have its own transport capacity? |
Yes |
Does the supplier have its own storage facilities? |
Yes |
Approximate turnover in USD - $
|
Not available |
Payment Methods Accepted |
Bank Transfer, Cash and Cheque |
Other Comments or Key Information |
|
Other Locations |
|
Region(s) |
Service Location(s) |
Phuentsholing |
Near Lhaki Hotel, Phuentsholing Thromde |
Primary Goods / Commodities Available |
||
Commodities by Type** |
Comments |
|
24/27 - Crude materials, inedible, except fuel |
NA |
|
51 to 59 - Chemical and related products |
NA |
|
61 to 69 - Manufactured goods classified chiefly by material |
NA |
|
71 to 79 - Machinery and transport equipment |
Yes |
All items are imported. Security Systems, Fire & Rescue Systems, Automobile, Heavy Earthmoving, Construction Equipment, Solar and Power Systems |
81 to 89 - Miscellaneous manufactured articles |
NA |
|
91/93/96/97 - Commodities not classified elsewhere |
|
|
Wholesale – New Generation and the Next Technologies Private
Limited (NGN Private Limited)
Established in 1993, it is the first and leading IT Company in Bhutan which has grown into a large spectrum of Information Technology Service provider over the years in the country.
NGN Technologies is the sales and solution partner in Bhutan for some of the leading global IT Companies – Dell Computers, Oracle, Schneider Electric IT business, Xerox, Brocade, Microsoft, CISCO, Diebold Nixdorf ATMs etc.
Headquartered in Thimphu, the capital city of Bhutan, NGN has branch offices at Phuentsholing and Gelephu bordering the states of West Bengal and Assam of India. The Company has over 58 employees of which over 60% are IT engineers.
Supplier Overview |
|
Company Name |
New Generation and the Next Technologies Private Limited |
Address |
Oakha, Express Highway |
Does the supplier have its own production / manufacturing capacity? |
No |
Does the supplier have its own retail capacity? |
Yes, the company sells goods to government, other companies as well as directly to the end-users. |
Does the supplier have its own transport capacity? |
Yes |
Does the supplier have its own storage facilities? |
Yes |
Approximate turnover in USD - $
|
BTN 100 million per month |
Payment Methods Accepted |
Bank Transfer, Cash and Cheque |
Other Locations |
|
Region(s) |
Service Location(s) |
Phuentsholing |
Behind TCC, Phuentsholing Thromde |
Gelephu |
Gelephu Thromde |
Primary Goods / Commodities Available |
||
Commodities by Type** |
Comments |
|
24/27 - Crude materials, inedible, except fuel |
NA |
|
51 to 59 - Chemical and related products |
NA |
|
61 to 69 - Manufactured goods classified chiefly by material |
NA |
|
71 to 79 - Machinery and transport equipment |
Yes |
NGN Technologies is the sales and solution partner in Bhutan for some of the global leading IT Companies – Dell Computers, Oracle, Schneider Electric IT business, Xerox, Brocade, Microsoft, CISCO, Diebold Nixdorf ATMs etc. |
81 to 89 - Miscellaneous manufactured articles |
NA |
|
91/93/96/97 - Commodities not classified elsewhere |
NA |
|
Wholesale – Lhaki General Store
The Lhaki General Store is located at the heart of the Capital city, near main traffic roundabout. Since its founding in Thimphu in 1976, Lhaki General Store has become a leading supplier of hardware from various branded companies. Currently it deals with a wide spectrum of products, including electrical items (domestic, commercial and industrial applications), building materials, sanitary, stationery and other general supplies in Thimphu as well as in other twenty Dzongkhags (districts).
Supplier Overview |
|
Company Name |
Lhaki General Store |
Address |
Below main traffic roundabout, |
Does the supplier have its own production / manufacturing capacity? |
No |
Does the supplier have its own retail capacity? |
Yes, the company sells all kinds of hardware and construction items directly to the end users. |
Does the supplier have its own transport capacity? |
No, uses hired transporters. |
Does the supplier have its own storage facilities? |
Yes |
Approximate turnover in USD - $
|
Not available |
Payment Methods Accepted |
Bank Transfer, Cash and Cheque. Credit is available for regular customers. |
Other Comments or Key Information |
|
Other Locations |
|
Region(s) |
Service Location(s) |
NA |
NA |
|
|
Primary Goods / Commodities Available |
||
Commodities by Type** |
Comments |
|
24/27 - Crude materials, inedible, except fuel |
NA |
|
51 to 59 - Chemical and related products |
NA |
|
61 to 69 - Manufactured goods classified chiefly by material |
Yes |
Hardware materials including water tanks, pipes, other plumbing materials etc. |
71 to 79 - Machinery and transport equipment |
Yes |
All types of construction materials |
81 to 89 - Miscellaneous manufactured articles |
NA |
|