Invest in Agriculture Sector in Bhutan

Bhutan's agriculture sector is now fully open to foreign direct investment (FDI), aiming to boost production of commodities like mandarin, quinoa, rainbow trout, black pepper, asparagus, and strawberry. This policy shift offers investors opportunities in organic agriculture, agri-food systems, and high-value crops. Notably, a proposed investment of US$5.56 million over 20 years could significantly increase production to 4,320 metric tons annually, with an internal rate of return of 28.79%. Additionally, Bhutan's pristine environment and commitment to organic farming enhance the appeal of its agricultural products in global markets.

Bhutan's agriculture and agri-foods sector is a cornerstone of the national economy, contributing approximately 14.67% to the GDP and employing about 43.50% of the population. The sector benefits from Bhutan's diverse agro-ecological zones, ranging from sub-tropical to temperate, allowing for a wide variety of crops and products. Bhutan's pristine environment and organic farming practices offer immense potential for high-value niche agriculture products.​
Investment info

Investment Information

Bhutan's agricultural landscape is experiencing a significant shift from traditional farming practices toward high-value crop cultivation including black pepper, quinoa, Miyazaki mangoes, avocado, strawberry, and macadamia nuts. Despite facing challenges in mechanization and human resource availability, the sector presents substantial growth opportunities, particularly in organic and niche export markets. The government has demonstrated its commitment by doubling the Renewable Natural Resources (RNR) sector target from Nu.3 billion to Nu.6 billion.

Investment opportunities in agro-based production include agro processing, bio-technology, poultry, fisheries, floriculture, health food, animal feed, bio-fertilizer and bio pesticides, meat processing, apiculture, horticulture, and dairy. These sectors require a minimum investment of 20 million Bhutanese Ngultrum with foreign investors allowed maximum equity ownership of 74%.

Horticulture presents promising opportunities in organic fruits and vegetables, medicinal herbs, and essential oils production. Agro-processing offers potential in value addition for food processing, herbal products, and fruit juices manufacturing. The agri-tech sector welcomes investments in hydroponics, greenhouses, and precision farming solutions to enhance productivity.

Agri-infrastructure development remains another crucial area for investment, particularly in cold chain facilities, warehousing solutions, packaging technologies, and transportation systems. These infrastructure improvements are essential to reduce post-harvest losses and ensure quality preservation of agricultural products destined for both domestic and international markets.
Equity Ownership
74%
Minimum Investment
20 Million Bhutanese Ngultrum
Time Taken
1 - 6 Months
Revenue
NA
Investment Support

How Can Basnet Attorneys and Law Help?

Setting up a company or investing in Bhutan requires expert legal guidance to navigate business registration, compliance, and investment regulations. Basnet Attorneys & Law specializes in corporate and investment law, providing tailored legal solutions to ensure a smooth and hassle-free process for international investors.

Our services include:

Business Incorporation & Registration – Assistance with company formation, and licensing ensuring compliance with Bhutanese corporate laws.

Investment Advisory – Guidance on foreign direct investment (FDI) regulations, ownership structures, and legal incentives.

Regulatory Compliance – Ensuring adherence to Bhutan’s taxation, labor laws, and IT sector regulations.

Contract Drafting & Negotiation – Preparing legal documents, partnership agreements, and investor contracts.

Licensing & Permits – Securing the necessary approvals for IT operations in Bhutan.

Intellectual Property Protection – Safeguarding trademarks, patents, and copyrights for tech businesses.
 

With extensive experience in corporate and investment law, we offer precise legal solutions tailored to the needs of international investors in Bhutan. Our firm provides strategic legal counsel, risk assessment, and compliance oversight to ensure that your business venture operates with legal certainty and regulatory confidence.


Contact Basnet Attorneys & Law today for a consultation on investing in Bhutan with a legally sound foundation.