Discussions are underway between the governments of Bhutan and India to open four new trade routes between the two countries. The trade routes are expected to facilitate smoother exports of agricultural produce from Bhutan.

The proposed trade routes will be opened in Samdrupjongkhar, Nganglam in Pemagatshel, Gelephu in Sarpang, and Lhamoizingkha in Dagana. They are aimed at easing the export of areca nut across the southern dzongkhags.

Minister for Foreign Affairs and External Trade, Lyonpo DN Dhungyel, informed the National Assembly on June 21 that the government of India, which had carried out research on the matter, was expected to approve it.

“We have learned that the approval will be granted soon after discussions with our government,” Lyonpo said, adding that the government remains optimistic about the outcome. However, the exact date of approval is not yet known.

Lyonpo said that the trade directors of both the countries will meet for their annual bilateral discussions by the end of July, during which the government will submit the request once more.

In early May, Bhutanese customs officials reiterated Bhutan’s request during discussions with their Indian counterparts.

Lyonpo DN Dhungyel was responding to the MP for Shompangkha in Sarpang, Tek Bdr Rai, who inquired about the plans and progress on opening more border gates for the export of areca nuts to help farmers.

“For convenience, farmers request a reliable export gateway in Gelephu, which will allow them to transport their produce directly to India from their dzongkhag,” he submitted. “I made this request earlier.”

As the export of areca nut is permitted only through the Phuentsholing (Jaigaon) and Samtse (Chamurchi) gateways, areca nut farmers face challenges exporting their produce.

Gelephu MP Harka Singh Tamang said that the high transportation costs associated with internal road networks make it difficult for areca nut farmers, leaving them minimal profits.

“Mandarin exporters faced challenges last year,” he said. “This year, areca nut exporters face similar issues, with other farmers potentially encountering similar challenges next year.”

Harka Singh Tamang called on the relevant ministries to coordinate to address such issues and ensure that similar problems do not arise next year.

India has restricted the import of areca nut items from other countries, including Bhutan. However, Bhutan can export a maximum of 17,000 metric tonnes annually through the Jaigaon Land Customs Station in India.

Lyonpo DN Dhungyel said that based on the special friendship between Bhutan and India, the export continued through all trade gateways until the COVID-19 pandemic. It was halted during the pandemic due to border closures.

Sarpang is among the nine dzongkhags in the south, where areca nut is the primary source of income. About 6,758 metric tonnes of areca nut, valued at Nu 351 million, is exported annually through the Gelephu border gate.