1. Regional Agricultural Marketing and Cooperative Office Enhancing Agricultural Marketing System and building vibrant Farmers groups and Cooperatives

2. Background AMS created to cater services of RNR marketing within PPD, MoAF DAMC established in Oct 2009 and started to operate as department from March 2010 RAMCO earlier known as RAMS is regional office of DAMC RAMS established in 2006-2007 with inception of AMEPP RAMCO formally begun its function from 2010 with inclusion of cooperatives mandate with marketing mandate Currently staffed by 17 staffs including contract and supporting staffs.

3. Mandates 1.Develop and ensure proper functioning of market activities, infrastructure and establishment of new infrastructures at regional level, where necessary; 2.Facilitate establishment and functioning of Farmers Groups and Marketing Cooperatives at regional level 3.Provide institutional support and advice on marketing of RNR products; 4.Reinforce linkages between Dzongkhags, major market outlets and head office to facilitate marketing processes;

4. 5. Establish effective market information services at Dzongkhag-level in collaboration with line agencies 6. Provide market based training to extension agents at regional level; 7.Provide marketing training to producers in collaboration with the head office; 8. Conduct regular regional market studies (price, demand and supply situations) and collect and communicate marketing information to head office;

5. 9.Coordinate and promote implementation of marketing related activities, including agribusiness and rural credit at the regional level; 10. Assist head office in Monitoring & Evaluation of marketing programs; 11. Undertake programs to build capacity in marketing staff and facilitate farmer capacity building at regional level. 12.Provide guidance to Cooperatives in export markets at regional level

6. Development areas To oversee marketing system and cooperatives development in Six eastern Dzongkhags (Lhuntse, Mongar, Trashiyangtse, Trashigang, Pemagatshel and Samdrupjongkhar) Dzongkhag marketing focal person in each Dzongkhag (DAO) Closely liaise with relevant agencies ( Dzongkhag Sector heads, RNR-RDC Wengkhar, RLDC Khangma, FCB, BCCI, RTIO, RRCO, BIFA Samdrupjongkhar) for the implementation of activities

7. Overall budget allocation-MAGIP RAMCO Amount in BTN (mil) Apprisal allocation64.511 MTR Allocation48.641 Fiscal YearAppraisal budget allocationMTR budget allocation 2011-2012 10,817,900.00 2012-2013 32,389,500.00 2013-2014 16,782,900.00 13,045,500.00 2014-2015 4,520,500.00 14,917,500.00 2015-2016 16,028,000.00 2016-2017 4,680,000.00 64,510,800.00 48,671,000.00

8. AWP&B approved budget and fund utilization Fiscal Year AWP&B approved budget Fund received Fund utilized Un-utilized fund Remarks (Amount in BTN million) 2011-201210.8188.8308.3980.432 Fund couldn't utilized due to late approval of Budget from IFAD as project was in initial year 2012-201315.82414.87414.0470.827 Some fund was surrendered because site for construction of OSFS at Nganglam was not approved by BPCL. The budget for dairy equipments which was allocated was given to Livestock component 2013-201422.3481.0000.9390.060 Though the allocation for this FY is Nu.13,545,500, the previous fund balance was revitalized 48.9924.70423.384

9. Major achievements A. Marketing development InfrastructureLhuentseMongarT/yangtseT/gangP/gatselS/jongkharTotal Market Shed35159528 Produce Store211497336 Collection Centers 189302454 Sales outlet1164116341 Zero Energy Cooling Chamber 0212409 Value addition Equipment Dairy equipment, Sugarcane crusher, Chips making machine, Kharang grinder and grader, Stitching, Sealing, weighing machine Packaging materialsPlastic crates, perforated nylon bag, Non woven bag, Butter paper, egg tray, plastic bag

10. Capacity building Capacity building programmeMaleFemaleTotal Farmers11635861749 RNR staffs & RAMCO36256419 Market Research & Study VCDPotato, Citrus, Dairy, Vegetables, Rubia, Chirata CoPEgg, vegetables, Animal Feeds Other studiesPest & Disease guidelines, Water efficiently technology, Input supply Transportation support Transport supportRice trial marketing, Fish, Rajma beans, Potato, Citrus pulp, Vegetables, Mangoes, Chilli, Pullet, Amla & other RNR products

11. B. Cooperative Development Dzongkhag Livestock SectorForestry Sector Total no. Coops Total Members No. of coops MembersNo. of Coops Members MFTotal MF Mongar2142943136945388 Trashigang24411315700002 S/jongkhar1952912400001 51531713241369456369 Registered primary cooperative

12. Registered Farmers groups Agriculture sectorLivestock SectorForestry Sector Total FGs Total Membe rs Registe red FGs MembersRegiste red FGs MembersRegiste red FGs Members MFTotalMF MF Lhuntse160621921402102030576 Mongar1752135187118693179000028366 Trashig ang 7204363710786193000014256 Trashiy angtse 00009684911761409523515352 Pemagat sel 7705012035660116719010229217528 S/jongk har 3903812841064114731202514510420 352382665043644235079218460242702891998

13. Capacity building programme Sl. NoActivitiesNo. of Members MaleFemaleTotal 1Group Formation Training232177409 2Record and Book keeping training 35080430 3General Leadership Training53558 4Female Leadership Training065 5Awareness on CAB 2009 and CRR 2010, OSFS and Contact Farming to 20 Informal Farmers groups in east with fund support from UNDP 361450 6Awareness on CAB 2009 and CRR 2010 to all the Shakeholders 26528293 Total9363691305

14. Farm road and Water User Groups LhuentseMongarT/gangT/yangtseP/gatselS/jongkhar Total RUG 0111017112271 WUG21231104472 LhuentseMongarT/gangT/yangtseP/gatselS/jongkhar Total No. of OFSF 137021 14 One Stop Farmers Shop

15. Updates on MAGIP support program Market infrastructures: OSFS 12, Market shed 1, Collection shed 1, Sales counter 11, Detachable Shed at Auction Yard 3 Value addition equipments: 5000 plastic crates Linkages and Institutional Strengthening: school linking, traders meeting, meeting with financial institutions Capacity building programme: farmers training, exposure visits, RNR staff training Trial marketing of Mango, Avocado, Pears, Citrus Marketing support- transportation Agriculture support

16. Livestock support Infrastructures Processing and sale outlet at Sherimung, Mongar Egg sale outlet at Ngatsang Milk sale outlet at Yadi Milk collection shed at Saling Hygienic dressing table to Boiler Farm at Lhuentse Capacity building of staff TOT on record and book keeping ADLO Trashigang and Fishery person from Samdrupjongkhar were send to Thailand to learn on cooperatives Awareness on forming fish cooperatives at Pemathang and Langchaphu Book Keeping training FGs and Cooperatives (Livestock sector) Chairman of Dewthang Milk marketing Cooperative has been trained in India and Japan Chairperson of Chaskhar has been trained for 6 months in Delhi Recently on member from Themnangbi has been send to Delhi Group registration-

17. Marketing support Supported to conduct fish exhibition Transportation support on fish marketing Provided plastic crates (each Dzongkhag) Market linkage between boiler farm and meat shop at Mongar Linked Wangling group with GHSS for supply of egg Yurung Livestock group is linked with schools Business development support- Chaskar 250000, Themnangbi-237000, Pam-237000, Dewthang- 237000

18. Market study Study on cost of production of egg (5.57/egg) Feeds Tashi has done some study ADLO has done poultry Assist FGs and Cooperatives in pricing their milk and milk products

19. Forestry support Capacity building- Merak chirata group formation, group formation at Lauri- 8 groups and record and book keeping training, soap and shampoo making training Finalization of LGOC member and developed by-laws Market linkages for NWFPs- Zyanthozylam, Chirata, Rubia, Star-aneis, Pipla, Amla, Lemon grass oil and soap Support in organic certiciation- Lemon grass oil, Amla, Rubia, Winter green, artimesia, Cost of production- Lemon grass soap, Support for packaging materials Study- Value chain on Rubbia, Chirata, Amla, Mannual for domestication of Chirata and Paris polypera Value addition- deseeding machines for Amla, dryer machines, Lemon grass soap cutter, transparent sheet to two incense making units (Mongar and Lhuntse) Support for auctioning of NWFPs at production site (not successful)

20. Vegetable Value Chain Program- East To increase income of more than 2500 households in six eastern Dzongkhags by 5 to 15% by 2014. Programme started by mid 2011 Programme implemented in collaboration with six Dzongkhag Agriculture Sectors, RNR-RDC Wengkhar and SNV) Covers 33 Geogs Involves 114 groups Benefits 1517 households Major vegetables:- (Cabbage, Cauliflower, Radish, Carrot, Beans, Peas and also includes other vegetables)

21. Production very little before VVCP-E (contributed only 0-5 percent of total income) About 40 percent increase in vegetable production after VVCP-E Today vegetables have become important sources of income for 1517 HHs 40 percent contribution to total income 60 percent of total production is sold for income generation Home consumption- 21percent Damage- 19 percent (based on monitoring report 2013)

22. Contd… Year2012 2013 (Up to 2 nd week Nov 2013) Total qty produced (MT) 592.90769.47 Total qty sold (MT)- ( 60 percent of total pdn) 355.74481.68 (46.6% increase) Income earned (Nu. in million) 5.1307.524 (33% increase) Year20122013 No. of groups69114 No. of members13701517 Geog coverage2933

23. Vegetable marketing Local markets- Dzongkhags, sales along road side (infrastructure, information sharing, even transportation support for trial marketing etc..) Auctioning system Trial marketing  Identified six potential markets in nearby towns in Assam (Rangia, Nalbari, Tamulpur, Kumarikata and Guwahati).  Frequent strikes affecting marketing of vegetables  Insufficient qty, poor quality and inconsistent supply major bottlenecks in marketing of vegetables  Bhutanese vegetables marketed in India by some Indian vendors.

24. School linking programme  Piloted GHSS and Jakar HSS with MoU between MoAF and MoE  Beneficial to both Institutes and Farmers Groups  Found out to be potential markets for vegetables marketing  31 institutes/schools linked with 57 FGs  257.8 MT supplied in 2013 and helped to generate Nu. 4.166 milllion  Prospect to link 106 schools/institutes- annual requirement- 1499 MT per year amounting Nu. 23.53 million  Exit strategy for VVCP-E (Link)

25. Overall exit strategy of support for marketing and cooperative Strengthening FGs and cooperatives (Production/growers association)- support and capacity development Promotion of associations ( FGs, Coops, traders and transportation) Promotion of private sector for RNR enterprise Infrastructure- more focus on community (OSFS) and groups, agencies like FCB for efficient and sustainable utilization- cold store Establish multi utility facilities

26. Main issues Ad hoc and additional fund request from Dzongkhags Fund release (partial release hampering work execution) Unplanned, scattered and seasonal production Inconsistent production and supply (quality and quantity) Lack of trust among buyer and sellers (poor linkages) High percentage of post harvest losses Limited resources- (market infrastructures, transportation, packaging) Lack of awareness on marketing and cooperative programme Over dependent on government and poor participation Poultry- farmers not taking up poultry farming in a business venture (problem of spent birds)

27. Supports required 1.Market infrastructures-more OSFS in strategic locations, easy service delivery, product outlet, market sheds, collection sheds and sales outlets 2.Product diversification and packaging (different sizes) 3.Value addition equipments (dryers, Vacuum sealing machines and packaging materials) 4.Market exploration- RNR products 5.Marketing support- Transportation and packaging 6.Capacity building : (Group mobilization, leadership, record and book keeping, marketing aspects, exposure visits) FGs and cooperatives RNR Staffs

28. 7.Implementation of capacity building modules (Generalities, Governance, Leadership, Record and Book keeping Marketing, Business plan development, Financial mgt. (single and double) 8.TA support on: Business plan development Market research and studies Value chain 9. Develop RNR enterprises on value chain modules

29. Required support to upscale production for Nganglam market 1.Up scaling of RNR produce- Agriculture: Potato, Citrus, Rajma, Ginger, Onion, Wheat, Vegetable, Mustard, Pear, Persimmon, Kiwi, Walnut Livestock: Dairy (product diversification), poultry, Fishery Forestry: NWFPs- Chirata, Pipla, Rubia, Star-aneis, Amla, Lemon grass oil, Parispolypera 2. Farmers capacity development 3. Develop market infrastructure at strategic locations 4. Improvement of Gyelpozhing office- installation of generator, A/c, furniture and equipment

30. Way forward/future plan Establishment of additional market infrastructures at strategic location (produce store, collection, sales outlets and market sheds) Storage facilities (Cold stores (zero energy cooling chambers) and ambient stores Market information- explore better means of sharing market information Cold store (two already in plan, additional if required in future) Cool Freeze Van- increase production of perishable items Market studies and research- more on RNR produce, study on establishing auctioning facilities at production site Strengthening Value Chain- identify core RNR products value chains and strengthen through corrective measures Private sector promotion- encourage pvt. entrepreneurs to take up agribusiness through infrastructure development and facilities

31. Formation of traders association- assist local traders to form association Formation of transport association- See possibility of forming transportation association in collaboration with RSTA, MoIC Capacity building programmes for farmers as well as private individuals- trainings, meetings, exposure visits, exchange programs etc Improving capacity of implementers- Knowledge sharing, trainings, meetings, exposure visits Promote agribusiness through support of capital on cost sharing basis- agribusiness promotion through private incubation one possible intervention- similar to OSFS but with more mandates on agriculture farming Cooperative development fund- To use as revolving fund for group and cooperative Supply Chain Management- Closely monitor the supply chain of RNR products and direct for proper management