Realizing the importance of RNR enterprises in income generation, employment creation, and import substitution, RNR Enterprise development is emphasized in the 12th FYP to assist in transition from subsistence to commercial farming. The Ministry of Agriculture & Forests envisions the establishment of 20 RNR enterprises to be taken up as major projects to bring transformation in the Bhutanese Agricultural system.
With increasing imports as a result of globalization and increasing free trade, Bhutanese farmers and agro-based entrepreneurs face growing competition in the marketplace. The products from within the country are characterized by low volume which is 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 the capacity to transition form 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. Therefore, a separate unit was established under Department of Agricultural Marketing and Cooperatives (DAMC) called RNR-Enterprise Development Coordination Unit (RNR-EDCU).
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 enterprise development; and
- Conduct monitoring and evaluation.
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