Background (About Us)
Realizing the importance and potential in generating income, providing employment opportunities and substituting imports, RNR enterprise development is emphasized in the 12th FYP to assist in transition from subsistence to commercial farming. The Ministry of Agriculture & Forests envisions to establish 20 RNR enterprises to be taken up as major project to bring transformation in the Bhutanese Agricultural system.
There are emerging economic opportunities in promoting RNR-based enterprises in the country. Increased imports of both fresh and processed agricultural commodities incur huge revenue loss to the country. The increasing imports mainly because of increasing free trade, have resulted in stiff market competition to our own farmers and agro-based entrepreneurs. The products from within the country are of low volume which are determined by inadequate capital and limited access to modern technology, limited packaging and value addition, low skills and high transportation and labour costs encumbering competitiveness. More importantly, farmers lack focused strategy to grow from subsistence to market-oriented production.
The current agriculture development approach needs to be innovative to create inclusive business opportunities in the framework of enterprise development and value chain management. The growth in the RNR enterprise sector has remained weak and needs further simulation. Transforming the sector requires a holistic effort up and down the value chain and covering all aspects such as access to finance, access to technology, capacity building and marketing support. Harnessing the potential for commercialization of the RNR sector calls for a market-driven approach with proper investments in quality raw materials, efficient processing technology and an efficient marketing and distribution system. Therefore, the establishment of the RNR Enterprise Development Coordination Unit (RNR-EDCU) seeks to provide one window service for the RNR enterprise development and to provide all possible support and guidance to potential proponents in agribusiness.
Priority and focus OF RNR-EDCU
The RNR-EDCU will primarily focus on the following :
- Product aggregation and value addition; and
- Enterprises development in the rural
The overall mandate of the RNR-EDCU is to coordinate all RNR Related Enterprise Development in the country and facilitate the smooth implementation of enterprise development in collaboration with different stakeholders within and beyond MoAF.
Functions of RNR-EDCU
The RNR-EDCU shall carry out the following functions:
- Provide one Window Service for RNR enterprise development;
- Coordinate feasibility studies for enterprise development;
- Develop enterprise proposals and action plan;
- Facilitate fund mobilization;
- Facilitate enterprise development with stakeholders;
- Conduct reviews on the enterprise developed; and
- Conduct monitoring and evaluation.