(Final Research Title)

(Final Research Title)

Evaluating Supply Chain inefficiencies in the Cereal Crop Sector of Bhutan: A Case Study Approach to Sustainable Development

Table of Contents

TOC o "1-3" h z u Chapter 1: Introduction PAGEREF _Toc173058140 h 21.1 Background PAGEREF _Toc173058141 h 21.2 Problem Statement PAGEREF _Toc173058142 h 181.3 Significance of the study PAGEREF _Toc173058143 h 301.4 Research Gaps PAGEREF _Toc173058144 h 331.5 Research Objectives PAGEREF _Toc173058145 h 381.6 Research Questions PAGEREF _Toc173058146 h 42Chapter 2: Literature Review PAGEREF _Toc173058147 h 48Chapter 3: Proposed Research Methodology PAGEREF _Toc173058148 h 48Chapter 4: Ethical Consideration PAGEREF _Toc173058149 h 495. Research Timeline PAGEREF _Toc173058150 h 49

Chapter 1: Introduction

1.1 Background

Bhutan is a small and landlocked country, situated between China and India. It has an area of 38,394 square kilometers with total population of about 727,000. About 70 percent of the Kingdom is covered with forests; 7 percent with year-round snow and glaciers; nearly 3 percent is cultivated or agriculture areas; and 4 percent as meadows and pastures, while rest of the land is either barren, rocky or scrubland. It is located in an ecologically risky area high in the Himalayan Mountain range and remains vulnerable to internal and external shocks. However, its diverse ecosystems provide a basis for remarkable social, economic, and cultural developments. The economic development started in Bhutan since 1961 with the commencement of first five-year plans. Since then, Bhutan was largely depended on agriculture, livestock, forestry, and fishing. With the advent of the development plans, the country has diversified its economy to include other sectors such as tourism, hydropower, and manufacturing. One of the key drivers of Bhutans development has been its focus on Gross National Happiness, as a measure of progress in addition to traditional economic indicators- prioritizing social welfare, environmental conservation and cultural preservation alongside economic development.

The agriculture sector is one of the primary contributors to the national economy, employing 50 per cent of the population. Its contribution to GDP has increased, rising from 12.93 per cent in 2017 to 14.67 percent in 2022 (NSB: 2022). Although subsistence in nature, Bhutan agricultural practices have changed tremendously over the years. With promotion of modern farming technologies, improved network of road accessibility and transportation in the country, increasing number of farms are shifting from subsistence-based farming to commercial agriculture. Sustainable agriculture in Bhutan is an important factor for socio-economic development and growth. Some of the strategies to increase livestock and crop production includes- intensifying farm mechanization, land development and fallow land reversion, introducing climate and disaster resilient crop varieties, mitigating human wildlife conflict through adoption of innovative technologies, promoting value addition and Renewal Natural Resources enterprise development, etc.

According to Siems, Seuring & Schilling (2022), in the Agricultural sector of Bhutan, the crops are grown using various approaches, which are generally not in practice anymore compared to the crop-growing methods adopted by developed countries. The crucial aspects of supply chain management for agriculture, specifically for crops like rice, wheat and maize, are a concern for the people of Bhutan as these crops are of prime importance to the population (Wang et al., 2019). Agriculture is the oldest and the essential field which requires prime attention for the well-being of the people and the agricultural market. The agricultural market consists of a broad supply chain process that includes intermediaries, suppliers, and retailers to ensure the authenticity and quality of the agricultural produce sales in the market (Majewski & Sirsikar, 2022). The agricultural supply chain is a route of networks that requires the essential need of inclusion of various intermediariesto facilitate the process efficiently and thus help supply the agricultural produce to the larger segments (Dendup, 2018). The workers of Bhutan are actively making efforts to improve the Supply Chain Management of the agricultural sector and foster flexibility in the handling of operations associated with the supply chain management of the agricultural sector.

According to Dukpa & Wangdi (2021), the supply chain management of Bhutan has been identified by its nature and various economic and operational ups and downs due to its adopted approaches. The downturns due to traditional facilities are shaping the need to change the operations of supply chain management. Distribution is one of the important aspects of supply chain management as it rules the operations of the supply chain management and updating the distribution facilities and methods utilized helps farmers and agricultural traders become knowledgeable and skilled in their fields. However, the farmers face hardships due to robust supply chain systems and interdependence on different sectors for earning post-harvesting (Gurung et al., 2021). It also leads to distress and financial problems for the farmers due to stabilization in the supply chain management. The new age methods are important to adopt and implement for distribution as they digitize supply chain management with the integration of blockchains and the Internet of Things (IoT) (Mohanta,Chedup, Dehury (2021). The robust system of the supply chain could be efficiently managed with the help of digitization of supply chain management and helps in maintaining the track records of the distributaries. Many researchers state that Bhutan can significantly reduce the economic hardships of the farmers and traders by customizing and piloting the supply chain systems using artificial intelligence (Borah et al., 2020).

Recent scholarly works highlight the critical role of digital supply chain management in enhancing the flexibility of agricultural supply chain systems. The AI experts should be appointed to train the farmers and traders to efficiently utilize the supply chain systems to distribute their produce in different markets. However, there is a research gap in investigating the application of Blockchain specifically in Bhutan's cereal crop supply chain. Further research is needed to understand the readiness and willingness of stakeholders to adopt blockchain-based solutions (Dorji, Jamtsho & Tobgay 2023).

According to Mohanta, Chedup & Dehury (2021), they addressed this research gap, relevant stakeholders can gain a better understanding of how blockchain technology can be utilized to enhance transparency, and trust in Bhutan's agricultural supply chain, ultimately contributing to improved food safety, consumer confidence, and overall supply chain efficiency.

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Figure : Mapping of agricultural supply chain with the Block chain at different levels

Source: (Sm Al-Amin et al., 2020)

In general, agriculture supply chain management can be defined as the strategic coordination and integration of activities involved in the production, processing, distribution, and marketing of agricultural products, with the aim of optimizing efficiency, reducing costs, and enhancing value creation along the entire supply chain. Agriculture supply chain management plays a critical role in the agricultural sector by connecting producers, suppliers, processors, distributors, and consumers in a network that facilitates the flow of goods and services from farm to table. The efficiency and effectiveness of supply chains have a direct impact on the competitiveness, sustainability, and profitability of agricultural enterprises, including small and marginal farmers who often face unique challenges in accessing markets, resources, and information.

According to authors Christopher and Lee (1998), agriculture supply chain management encompasses the planning, sourcing, manufacturing, and delivery of agricultural goods from farm to fork, considering the unique characteristics and challenges of the agricultural sector. In this context, agriculture supply chain management involves managing relationships with various stakeholders, including farmers, input suppliers, agribusinesses, transporters, processors, retailers, and consumers, to ensure the seamless flow of goods and information throughout the supply chain. By adopting best practices in supply chain management, such as demand forecasting, inventory management, quality control, and logistics optimization, agricultural enterprises can improve their competitiveness, sustainability, and resilience in the market.

The agriculture logistics chain, both in the world and the unique context of Bhutan, has multifold issues about production and crops that affect the farmers and producers. Worldwide, farming is arguably the bedrock of many economies, with the supply chain mainly consisting of an intricate structure of many activities taking place right across the board. The researches of Adeyonu et al. (2021) have reported that agriculture accounts for 22% of the world's savings, as this highlights an important contribution to the economic growth industry. Although the total supply chain of food is really big, inaccuracies and inequality that exist in it still remain which affect food security and sustainability. In Bhutan, agriculture is a pinnacle sector in the economy and the means through which two-thirds of the country's population support their livelihood. Therefore, though the agriculture supply chain faces serious issues, it generates problems. A similar situation is happening in the nation of Bhutan as statistics indicate that more than 70% of its farmers are smallholders who work on subsistence farms (Tshotsho et al. 2023). This group of population faces problems like they have difficulty in getting market due to the poor infrastructure and the geographical obstacles which act as the barrier.

Figure 1: Agriculture contribution for the overall nation GDP

(Source: Upendra et al. 2023)

Additionally, almost 40% of agricultural produce is thrown away due to lack of storage and transportation facilities, which means that the problem contributes to overall inefficiency and more farmers are losing their income. Worldwide on the other hand, infrastructural changes resulting from technology are disrupting the supply chain of agriculture. As argued by Niwarthana et al. (2023), The implementation of AI, Blockchain and IoT may be useful in achieving this by efficiency in operations, monitoring and better market access. On the contrary, blockchain technology enables the anti-corrupting transactions that are developed to ensure a trustworthy environment and to make the authenticity in the supply chain possible. The same represents that the Internet of Things devices can control crop conditions as well as resource utilization, hence leading to more production and sustainability. The most recent data show that only about 10% of Bhutans farmers incorporate the use of digital technologies in their practices, mostly due to the low level of awareness, connectivity difficulties, and high initial costs of investment. With this in the focus, providing targeted solutions and capacity building platforms to harness technology within the agriculture value chain is vital.

The approaches that Dendup and Aditto (2020) and Kamble et al. (2020) employ are different in methods pointing to problem investigation and the establishment of solutions on agricultural supply chains, each having its pinnacle focus and analytical techniques. As a field study, Dendup and Aditto (2020) have carried out a census survey of 60 agricultural cooperatives from central Bhutan; relying on focus group discussions, structured questionnaires, site observations, and informal interviews. The quantitative analysis that they performed involved descriptive statistics, independent t-tests, and Spearmans correlation to see the relationship of AC and its organizational features. It is the method where the researchers collect data from the immediate environment, locate the problems and provide the remedies including building up of contract farming and value addition. First of all, Kamble et al. (2020) attempted to write a comprehensive review of 84 scientific papers from 2000 to 2017 to find out the role of contemporary technologies (Internet of things, blockchain, big data) in the farming supply chains. Their article started with two levels of analytics (descriptive, predictive) as well as three objectives (social, environmental, economic) and ended up providing a broader, data-driven view of supply chain transformation. On the proposal of a service kit for users, the resources contain a visibility system for supply chains and a goal-oriented guide for investment for agri-food supply chains with a focus on data.

Bhutan is a small and landlocked country, situated between China and India. It has an area of 38,394 square kilometres with total population of about 727,000. About 70 percent of the Kingdom is covered with forests; 7 percent with year-round snow and glaciers; nearly 3 percent is cultivated or agriculture areas; and 4 percent as meadows and pastures, while rest of the land is either barren, rocky or scrubland. It is in an ecologically risky area high in the Himalayan Mountain range and remains vulnerable to internal and external shocks. However, its diverse ecosystems provide a basis for remarkable social, economic, and cultural developments.

The economic development started in Bhutan since 1961 with the commencement of first five-year plans. Since then, Bhutan was largely depended on agriculture, livestock, forestry, and fishing. With the advent of the development plans, the country has diversified its economy to include other sectors such as tourism, hydropower, and manufacturing. One of the key drivers of Bhutans development has been its focus on Gross National Happiness, as a measure of progress in addition to traditional economic indicators- prioritizing social welfare, environmental conservation, and cultural preservation alongside economic development.

The agriculture sector is one of the primary contributors to the national economy, employing 50 per cent of the population. Its contribution to GDP has increased, rising from 12.93 per cent in 2017 to 14.67 per cent in 2022. Although subsistence in nature, Bhutan agricultural practices have changed tremendously over the years. With promotion of modern farming technologies, improved network of road accessibility and transportation in the country, increasing number of farms are shifting from subsistence-based farming to commercial agriculture. Sustainable agriculture in Bhutan is an important factor for socio-economic development and growth. Some of the strategies to increase livestock and crop production includes- intensifying farm mechanization, land development and fallow land reversion, introducing climate and disaster resilient crop varieties, mitigating human wildlife conflict through adoption of innovative technologies, promoting value addition and Renewal Natural Resources enterprise development, etc.

However, agriculture sector in Bhutan is confronted with issues and challenges such as poor value chain, challenges in market integration, climate-related hazards, water scarcity, fragmented landholding, changing land use, negative human-wildlife interactions, inadequate irrigation, and poor infrastructural development.

As per the National Statistical Report, Bhutan (2022), the agriculture sector is one of the important sectors contributing to economy- GDP, Employment and Livelihood. The economy, with an estimated size of Nu 227,813.72 million, recorded a growth of 5.21 percent in 2022. In terms of contribution to GDP, the services sector is the leading contributor, accounting for 53.50 percent in 2022, followed by the industry sector at 31.82 percent, and the agriculture sector at 14.67 percent, respectively (figure 1 : GDP and Growth rates and 2: Sector-wise GDP contribution). In terms of employment generation, the agriculture is the topmost sector contributing to almost 50% of the employment, followed by Wholesale, retail trade and repair of motor vehicles & motorcycles and public administration and dfense, compulsory social security at 9 percent and 8 percent respectively (figure 3: Sector-wise employment)

In Bhutan, mountainous terrain limits agricultural land to just over three percent of the country, of which paddy cultivated area comprises 23 000 hectares, and is farmed by 28 000 households. There are three distinct rice ecosystems in the country, which are defined by three altitudes: low, mid, and high. Rice yield is dependent on altitude, with the highest yields being produced in the high-altitude areas. However, as the altitude grows steeper, the terrain gets rougher; and most paddy fields are on narrowly terraced slopes. This limits farm mechanization, and the construction of irrigation infrastructures is costly. In recent years, Bhutan has faced challenges such as climate change and shifting dietary preferences, which have influenced rice production and consumption patterns. However, rice continues to hold a special place in Bhutanese culture and remains an essential part of the country's culinary tradition.

Despite the challenges and constraints, rice cultivation is one of the primary agriculture activities in the country due to various factors such as- favourable climatic conditions, traditional practices, cultural significance, nutritional value, and availability. The terraced rice fields of Bhutan are not only a source of food but also a beautiful landscape that reflects the country's agricultural heritage. In Bhutanese culture, offering rice to guests is a sign of hospitality and respect. Despite the popularity of rice in Bhutanese cuisine, the country has also diversified its food sources to include other grains like barley, wheat, and buckwheat. This diversity reflects Bhutan's efforts to ensure food security and adapt to changing agricultural conditions. The rice cultivation in Bhutan is largely characterized by traditional farming, terraced fields, and organic farming practices. There is potential for increasing yield in low altitudes, with a more stable irrigation system and drought-tolerant rain fed rice varieties.

As evident from the National Statistics Bureau report, Bhutan (2022), the major cereal of Bhutan includes- paddy, maize, wheat, buckwheat, barley, millet, and quinoa. In terms of land use and cultivation, paddy, maize, and buckwheat has overtaken as the major source of livelihood of the people over other cereals. During the year 2021, paddy, maize and buckwheat production was recorded at 40,508 MT, 30,939 MT and 1855 MT respectively (Figure 4: Cultivated area, production, and yield of cereal crops). Almost all the districts have the capability to grow one or more varieties of rice and other cereals (figure 5: Cultivated area and production of cereal crops by District).

Even though the rice is preferred commodity over other cereals, Bhutan does not have enough rice and other cereal production. With an average consumption of 150 kg of rice per person annually, Bhutan requiresaround 115,000 metric tonsof rice per year to meet its needs. As per the trade statistics report (2023), the total rice import accounts for Nu. 3,060,883,026 worth of rice from India and Thailand. As per the National Statistical Report, Bhutan (2022), the Food Corporation of Bhutan as the major rice importer, has imported 19707.83 MT in year 2021 (figure 6: Import and Sale of rice and cereals).

In the agricultural segment of the country, cereals are a crucial part of the daily diet and include rice, maize, and wheat. These crops play not only a food security role but are also vital for the socioeconomic requirements of the population in Bhutan (Chakraborty, 2024). The nature of agriculture in Bhutan is relatively different from that of many other countries because its terrain is not very conducive for large scale farming operations (Chhogyel and Kumar, 2018). The arable land is restricted to approximately 2 percent of the total geography of the country. Modern farming practices are limited to the southern and central parts of the country, while the farming practices in other areas are still predominantly traditional (GIEWS, 2024, Muthamilarasan and Prasad, 2021).

Cereal crops are very important in food aid and income earners in farming households in Bhutan (Feuerbacher et al., 2018). However, there are factors, which include high transportation costs, inadequate storage facilities, and fluctuations in the market, which have significantly impacted negatively on the supply of cereal crops in Bhutan. Such a situation results in post-harvest losses of 20-25% annually (Rinchen et al., 2019) and high food prices that increase food insecurity. The above challenges are vital to food security and ensuring low post-harvest losses and improved quality of life for smallholder farmers.

The agriculture sector faces considerable pressure due to the changing climate conditions and the shift of labor force to urban areas. Over the last few years, Bhutan has experienced a challenge in sustaining its yields of cereal cropping. The cereal production was very poor in 2023 with the average yield of cereals being 70,000 tons (GIEWS, 2024). This has been estimated to be 30% below the average five-year average and this a worrisome sign considering the trend in decline of local cereal production. There are various factors that have contributed to its decline, factors that relate to the external environment as well as to the supply chain (Dora et al., 2022). For instance, localized crop losses in the year due to dry weather conditions in the southwestern and northeastern regions and flash floods and landslides in Lhuntse District (eastern region) had further compounded the situation (Dr. Rudra Bahadur Shrestha et al., 2019).

Several issues characterize the current state of the agricultural supply chain in Bhutan, as shown below. Transportation challenges come as a result of the country's geographical structure such that costs are high and transport is often delayed (Chhogyel & Kumar, 2018). The storage facilities need to be better established, thus leading to high post-harvest loss rates; post-harvest losses are estimated to be between 20-25% of total cereal production each year (Dorji et al., 2020). Fluctuations in the product market due to dependence on import and external trade policies compounded these challenges. The lack of technological tools and skills to operate modern technology is another challenge that hinders efficiency enhancement (Dorji et al., 2023). Besides, the long-term impacts of climate change, such as compactness and severe weather conditions, impact the yield and supply chain (Bibi & Rahman, 2023).

In the case of cereals, the picture is even grimmer, where the import dependence ratio has been gradually rising in Bhutan. Notably, it now sources a considerable part of its required cereal imports from India. In the 2023/24 marketing year, global import needs for cereal are estimated to be 160000 metric tons, which indicates that the importation of cereals will still be a requirement for the country to meet its consumption needs (Rasul, 2021). This is largely due to the difficulties that the local supply chain presents, including the lack of infrastructure, lack of technology and digitalization, high transportation costs and insufficient storage capacity (WFP, 2024; Borah et al., 2020; Mohanta,Chedup, Dehury, 2021). The prices had slightly increased in December 2023 at 50 percent higher than the previous year and these rates show the weakness of the food supply chain in Bhutan (Dora et al., 2022). These include- increase in prices of raw materials, which was due to disruptions of imports occasioned by India banning the export of wheat and high transportation costs of cereals into the country. The changing trend in cereal prices affects food security and the macro-economic environment in Bhutan in a big way (GIEWS, 2024)

Cereal crops are important for the countrys economy and can play a significant role in feeding the population. Rice, maize, and wheat are the primary food crops used by most people in their daily meals, and they can be considered as the staple foods of Bhutan. These crops are not only food sources but also cultural benchmarks and components of traditional indigenous societies (GIEWS, 2024). For instance, rice is considered a staple food and serves as a commodity used in cultural events such as traditional weddings, births, and harvest festivals. Agriculture and more so cereal farming is a dominant activity in Bhutan and a key source of employment. In fact, as highlighted in the 2016 Labor Force Survey Report, an estimated 57 percent of the nations population is in the working age (Thapa and Shrestha, 2019). Having established that the production of cereals has been on the decline, it can therefore be concluded that this aspect of agriculture constitutes a major threat to employment and income earners among the populace (Mughal and Fontan Sers, 2020).

This picture paints a clear situation of the cereal production in Bhutan especially in 2023 when the production was at 70,000 tons, which was severely low (GIEWS, 2024). These figures, a 30 percent deficit to the five-year average, only prove that there are deeper problems that require solutions. For example, the change from cereal based crops to other more productive crops such vegetables and cash crops has led to the reduction of the area under cereal crops (Wickramasinghe, 2019). Furthermore, other challenges such as poor weather conditions, specifically drought and flash floods, have further challenged production capabilities (Chhogyel and Kumar, 2018). The fact that Bhutan imports cereals more and has projected to import 160,000 tons for the 2023/24 marketing year shows the widening supply-demand gap. This has relied on imports, and therefore can be a bottleneck to market forces and trade policies of the neighboring countries, particularly India. The disruptions in 2022, particularly the ban on wheat export from India, had caused significant rises in the domestic cereal price, leading to worsened food and economic insecurity (WFP, 2024). The graph below provides an overview of cereal production and imports in Bhutan. The top section displays cereal production data in thousand tonnes for 2018-2022, 2022, and the 2023 forecast. It highlights a decline in rice (paddy) production by 2.6% from 2022 to 2023, while maize production remains stable with a slight increase of 0.1%, and millet and other cereals show no change. Overall, total cereal production is projected to decrease by 1.5% in 2023 compared to 2022. The bottom section shows cereal imports, indicating an increase from the 2018/19-2022/23 average to 2022/23, with a further rise forecasted for 2023/24. This suggests Bhutan is compensating for reduced domestic production 0530225000with increased cereal imports.

Cereal Production- Bhutan

2018-2022 2023 change average 2022 forecast 2023/2022

000 tonnes percent Rice (Paddy) 50 41 40 -2 Maize 40 26 26 0.1 Millet 2 1 1 0 Others 5 3 3 0 Total 96 71 70 -1.5 Figure SEQ Figure * ARABIC 1: Bhutan Agriculture Stats Source: https://www.fao.org/giews/countrybrief/country/BTN/pdf/BTN.pdfRelevance with the UNs Sustainable Development Goals

One of the priority development or programs Bhutan is working towards achieving the UN Sustainable Development Goals. These Goals are a global call to action to end poverty, protect the earths environment and climate, and ensure that people everywhere can enjoy peace and prosperity. As a holistic and responsible approach to sustainable development, Gross National Happiness (GNH) is, in the words of His Majesty the King, development with values. GNH is a development philosophy within which all the 17 Sustainable Development Goals are contained. The nations Five Year Plans are guided by GNH and resonates strongly with the SDGs, with clear synergies in vision and opportunities for practical application. Guided by the development philosophy of GNH, Bhutan is committed to realizing the 2030 Agenda for Sustainable Development. Having made great progress in its socio-economic development, the incidences of income poverty reduced from 23.2 per cent in 2007 to 8.2 in 2017, while multidimensional poverty fell from 12.7 per cent in 2012 to 5.8 in 2017 respectively. Income inequality, on average, has remained at a minimal level; and the economy has grown at an average of 7.5 per cent along with structural changes. The share of the industry to total GDP has increased to 41.5 per cent in 2016 from 11.5 per cent in 1980, and service sector contributed about 42 per cent to the total GDP. Bhutans population today is increasingly urbanized, young, and educated with half the population below 28 years; and unemployment under 2.5 per cent. Despite the progress made, Bhutan faces the last mile challenges such as poverty eradication, bridging the gaps in income inequality, economic diversification and addressing the needs of the vulnerable groups. With the objective of a Just, Harmonious and Sustainable Society through enhanced Decentralization, the Bhutans Five-Year Development Plan and its 17 national key result areas are drawn from the timeless vision and wisdom emanating from the Golden Throne. Reflecting Bhutans status as an active member of the global community, it also takes into consideration the SDGs and other regional and international commitments.

This study aligns with three key United Nations Sustainable Development Goals (SDGs): The goals recognized are SDG 2 Zero Hunger, SDG 12 Responsible Consumption and Production, and SDG 13 Climate Action. From this perspective, the research aligns with sustainable agriculture practices, including cereal crop supply chains for Bhutan's food security. Strengthening the supply chain benefits the food supply in Bhutan which is paramount to achieving SDG-2 of eliminating hunger and improving nutrition.

In addition, the analysis of responsible consumption and production practices also reflects SDG-12. Through optimizing storage, transportation, as well as the utility of technologies, the research provides direction in effectively protecting natural resources and minimizing wastage in the supply systems.

As far as SDG 13 is concerned, the study seeks to consider the effects of climate change on agriculture by proffering measures that bolster the vulnerability of the supply chain. This encompasses the implementation and use of measures and systems that reduce the impacts of climate variability and climate change.

The relevance of this study is that it can bring about sustainable changes to the agricultural sector of Bhutan through the enhancement of smallholder farmer's income, poverty alleviation, and economic development among the populace. Thus, by developing a more efficient and sustainable supply chain system, the study helps to achieve the objectives of national development and worldwide sustainability.

The cereal crop supply chain in Bhutan encompasses various stages, from production to processing, storage, distribution, and consumption. Efficient and sustainable management of this supply chain is critical for achieving several Sustainable Development Goals (SDGs). Below, we explain how the cereal crop supply chain can contribute to attaining specific SDGs in Bhutan, with a focus on SDG 2 (Zero Hunger), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action

SDG 2: Zero Hunger

**Objective:** End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.

**Strategies for the Cereal Crop Supply Chain:**

1. **Improved Seed Varieties:**

- **Action:** Introduce high-yielding and climate-resilient seed varieties to increase productivity.

- **Impact:** Higher yields can contribute to food security and reduce hunger by ensuring a stable supply of cereal crops.

2. **Efficient Distribution Networks:**

- **Action:** Improve transportation and logistics to ensure timely delivery of cereal crops.

- **Impact:** Reduces post-harvest losses and ensures that food reaches all parts of the country, enhancing food availability.

3. **Cold Storage Facilities:**

- **Action:** Establish cold storage facilities to maintain the quality of cereal crops and reduce spoilage.

- **Impact:** Enhances food availability and reduces wastage, contributing to food security.

4. **Nutrient Management:**

- **Action:** Implement integrated nutrient management practices to enhance soil fertility and crop yields.

- **Impact:** Increases productivity and ensures a stable supply of cereal crops, contributing to food security.

5. **Market Access:**

- **Action:** Develop platforms and cooperatives to enable smallholder farmers to access larger markets.

- **Impact:** Increases income opportunities for farmers, enhancing their ability to invest in better inputs and technologies.

SDG 12: Responsible Consumption and Production

**Objective:** Ensure sustainable consumption and production patterns.

**Strategies for the Cereal Crop Supply Chain:**

1. **Sustainable Farming Practices:**

- **Action:** Promote organic farming, integrated pest management, and conservation agriculture.

- **Impact:** Reduces the environmental footprint of cereal crop production and promotes soil health, contributing to sustainable agriculture.

2. **Waste Reduction:**

- **Action:** Implement practices and technologies to minimize post-harvest losses and food waste.

- **Impact:** Enhances resource efficiency and reduces the environmental impact of waste, contributing to sustainable consumption and production.

3. **Circular Economy:**

- **Action:** Promote a circular economy approach where agricultural waste is reused or recycled.

- **Impact:** Reduces waste and promotes sustainable resource use, contributing to responsible consumption and production.

4. **Value-Added Processing:**

- **Action:** Establish local agro-processing units to add value to cereal crops.

- **Impact:** Reduces wastage and increases the economic value of agricultural products, contributing to sustainable consumption and production.

5. **Consumer Awareness:**

- **Action:** Educate consumers on sustainable consumption practices and the importance of reducing food waste.

- **Impact:** Promotes responsible consumption patterns and reduces food waste.

SDG 13: Climate Action

**Objective:** Take urgent action to combat climate change and its impacts. **Strategies for the Cereal Crop Supply Chain:**

1. **Climate-Smart Agriculture:**

- **Action:** Adopt climate-smart agricultural practices such as crop diversification, conservation agriculture, and water-efficient irrigation systems.

- **Impact:** Enhances resilience to climate change and reduces greenhouse gas emissions, contributing to climate action.

2. **Early Warning Systems:**

- **Action:** Develop and deploy early warning systems for weather-related risks to help farmers prepare and adapt.

- **Impact:** Reduces vulnerability to climate-related shocks and enhances preparedness, contributing to climate action.

3. **Climate-Resilient Infrastructure:**

- **Action:** Develop infrastructure that can withstand climate-related shocks, such as flood-resistant storage facilities.

- **Impact:** Protects cereal crops from climate impacts and ensures a stable supply, contributing to climate action.

4. **Sustainable Land Management:**

- **Action:** Implement soil conservation techniques such as terracing, cover cropping, and agroforestry.

- **Impact:** Prevents soil erosion, maintains soil fertility, and enhances resilience to climate change, contributing to climate action.

5. **Renewable Energy:**

- **Action:** Promote the use of renewable energy sources in agricultural practices and processing units.

- **Impact:** Reduces greenhouse gas emissions and promotes sustainable energy use, contributing to climate action.

Integrated Approach for Bhutan's Cereal Crop Supply Chain:

1. **Data-Driven Decision Making:** - **Data Collection and Analysis:** Establish robust data collection and analysis systems to monitor and evaluate the performance of the cereal crop supply chain. - **Digital Platforms:** Develop digital platforms for real-time data sharing among stakeholders, including farmers, traders, and policymakers.

2. **Technology Adoption:** - **Mobile Applications:** Use mobile apps to provide farmers with real-time information on weather, market prices, and best farming practices. - **IoT and Blockchain:** Implement IoT devices for precision farming and blockchain for supply chain transparency and traceability.

3. **Capacity Building:** - **Training Programs:** Conduct training programs to enhance the skills and knowledge of farmers in modern agricultural practices and technology use. - **Extension Services:** Strengthen agricultural extension services to provide on-ground support and advice to farmers.

4. **Policy and Regulatory Support:** - **Supportive Policies:** Develop and implement policies that support sustainable agricultural practices, market access, and infrastructure development. - **Regulatory Reforms:** Address regulatory barriers that hinder the efficiency and sustainability of the cereal crop supply chain.

Conclusion: Aligning Bhutan's cereal crop supply chain with SDGs 2, 12, and 13 offers a pathway to achieving sustainable development, food security, and improved resilience to climate change. By addressing key challenges through data-driven decision-making, technology adoption, capacity building, and supportive policies, Bhutan can enhance the efficiency and sustainability of its cereal crop sector. This integrated approach not only contributes to national development goals but also supports the global agenda of achieving the SDGs.

1.2 Problem Statement

Supply Chain Inefficiencies in the Cereal Crop Sector of Bhutan Bhutan's cereal crop sector, which includes essential staples such as rice, maize, and wheat, faces significant supply chain inefficiencies that hinder its productivity, sustainability, and resilience. These inefficiencies manifest in various forms, including poor infrastructure, limited market access, high post-harvest losses, inadequate storage facilities, and a lack of technological adoption. These challenges not only impact the economic well-being of farmers but also threaten food security and sustainable development in the country. This problem statement aims to outline the key supply chain inefficiencies in Bhutan's cereal crop sector and propose technology-driven solutions to address these challenges.

Key Supply Chain Inefficiencies and Challenges:

1. **Poor Infrastructure:**

- **Transportation:** Inadequate and poorly maintained transportation networks lead to delays in moving crops from farms to markets, resulting in increased costs and post-harvest losses.

- **Storage Facilities:** Limited access to proper storage facilities causes significant post-harvest losses due to spoilage, pests, and adverse weather conditions.

2. **Limited Market Access:**

-**Market Information:** Farmers often lack real-time information on market prices, demand, and buyer preferences, leading to suboptimal selling decisions and reduced income.

- **Intermediaries:** The presence of multiple intermediaries in the supply chain reduces the share of profits that reach farmers and increases the final cost to consumers.

3. **High Post-Harvest Losses:**

- **Handling and Processing:** Inadequate handling and processing techniques contribute to significant losses during post-harvest stages.

- **Perishability:** The perishable nature of cereal crops, combined with delays in transportation and lack of proper storage, exacerbates post-harvest losses.

4. **Technological Gaps:**

- **Adoption of Modern Practices:** Limited adoption of modern farming practices and technologies hampers productivity and efficiency.

- **Digital Literacy:** Low levels of digital literacy among farmers restrict their ability to leverage technology for improving their farming practices and market access.

5. **Climate and Environmental Factors:**

- **Climate Variability:** Frequent climate-related shocks, such as droughts and floods, disrupt the supply chain and affect crop yields.

- **Environmental Degradation:** Unsustainable farming practices contribute to soil degradation, reduced fertility, and long-term environmental damage.

Technology Solutions: To address these supply chain inefficiencies, the following technology-driven solutions can be implemented, tailored to the specific context of Bhutan:

1. **Mobile Applications:**

- **Market Information:** Develop mobile apps that provide real-time market prices, demand forecasts, and buyer preferences. Examples include platforms like mFarms and eKutir.

- **Farming Advice:** Apps that offer farming tips, weather forecasts, and pest management advice can help farmers make informed decisions. Examples include iCow and Plantix.

2. **Digital Marketplaces:**

- **Direct Sales Platforms:** Implement digital marketplaces that connect farmers directly with buyers, reducing the need for intermediaries and ensuring fair prices. Examples include e-Choupal and FarmCrowdy.

- **E-Commerce Integration:** Enable farmers to sell their produce online through e-commerce platforms, expanding their market reach.

3. **IoT Devices:**

- **Precision Farming:** Deploy IoT sensors for real-time monitoring of soil moisture, temperature, and crop health, enabling precision farming and efficient resource use. Examples include sensors from companies like Arable and CropX.

- **Storage Monitoring:** Use IoT devices to monitor storage conditions and prevent spoilage, ensuring better quality and reduced post-harvest losses.

4. **Blockchain Technology:**

- **Supply Chain Transparency:** Implement blockchain solutions to ensure transparency and traceability in the supply chain, building trust among stakeholders and reducing fraud. Examples include platforms like AgriLedger.

- **Smart Contracts:** Use blockchain-based smart contracts to automate transactions and ensure timely payments to farmers.

5. **Data Analytics:**

- **Predictive Analytics:** Utilize data analytics tools to predict crop yields, market trends, and climate impacts, helping farmers plan better and reduce risks. Examples include IBM's Watson Decision Platform for Agriculture.

- **Resource Management:** Analyze farm data to optimize the use of water, fertilizers, and pesticides, promoting sustainable practices.

6. **SMS-Based Services:**

- **Information Dissemination:** Implement SMS-based services to deliver crucial information to farmers, such as weather alerts, pest warnings, and market prices. This is particularly useful in areas with limited internet access.

7. **Capacity Building and Training:**

- **Digital Literacy Programs:** Conduct training programs to enhance digital literacy among farmers, enabling them to effectively use ICT tools.

- **Extension Services:** Strengthen agricultural extension services to provide on-ground support and training in modern farming practices and technology use.

Conclusion: The supply chain inefficiencies in Bhutan's cereal crop sector pose significant challenges to productivity, sustainability, and resilience. By leveraging affordable and context-specific technology solutions, these inefficiencies can be addressed effectively. Mobile applications, digital marketplaces, IoT devices, blockchain technology, data analytics, and SMS-based services offer promising avenues to enhance the efficiency and sustainability of the cereal crop supply chain. Additionally, capacity-building initiatives are crucial to ensure the successful adoption and utilization of these technologies. This holistic approach not only improves the economic well-being of farmers but also contributes to broader sustainable development goals, ensuring food security and environmental sustainability in Bhutan.

Global agricultural supply chains face various challenges, including transportation constraints, limited access to storage facilities, market fluctuations, technology constraints, and climate change (Naik & Suresh, 2019). These problems are further compounded by the fact that Bhutan has a unique geographical and economic environment. Solving these challenges entails implementing measures that must enhance the functionality and stability of the supply chains in Bhutan. Through addressing these specific concerns, the study seeks to propose tangible strategies that can greatly improve Bhutans agricultural yield and stability.

The supply chain model for cereal crops in Bhutan is a multi- stage process that includes production, post-harvest handling, transport, storage, and distribution channels (Dorji, 2024). The climate and general geographical structure of Bhutan, not to mention the lack of proper development in this country, entails many problems at every step of this supply chain. Rice and other cereal crops are usually produced on small and scattered land areas and by small-scale farmers who rely on the produce, for instance, maize and wheat (Chhogyel and Kumar, 2018). Mechanization is challenging due to the geographical features, especially the steep topography, which also limits the possibilities of commercial agriculture (Poudel et al., 2023). The post-harvest is a critical but challenging stage for the country. Farmers cannot easily afford mechanized storage facilities and thus, most of them lose a considerable amount of produce post-harvest through pests and diseases or spoils due to inadequate storage mechanisms (GIEWS, 2024). The above-mentioned traditional storage methods are insufficient to maintain the quality of cereals, which enhances the above losses. Also, access to the transport is limited and the transport network remains underdeveloped. Small, meandering roads that exist in the mountains significantly delay and are costly in moving cereals from the peripheral farming regions to central business hubs (DISTRICT, 2023).

Mesterhzy, at el (2020) claims that global grain production needs a significant increase in output in the coming decades in order to cover the food and feed consumption needs of mankind. As sustainability is the key factor in production, the authors investigate global grain production, the losses along the value chain, and future solutions. Bhutan's agricultural sector plays a critical role in ensuring food security for its population. Rice, maize, and wheat are the cornerstone cereal crops, but their supply chains face inefficiencies that threaten this security and hinder overall agricultural development. Moreover, critical for food security, faces significant challenges within its supply chains for major cereal crops like rice, maize, and wheat. These challenges hinder the sector's potential and threaten food security for the nation.

One major obstacle is limited infrastructure. Poor storage facilities lead to spoilage and waste after harvest. Inadequate transportation networks make it difficult for farmers to get their crops to markets, further limiting their options and increasing spoilage risks. Additionally, a lack of processing capabilities restricts the value farmers can extract from their crops, limiting their income potential.

Market access is another significant hurdle. Smallholder farmers, the backbone of Bhutan's agricultural sector, often struggle to connect with reliable markets. This lack of access forces them to accept lower prices for their crops, hindering their income growth and discouraging investment in improved farming practices. The limited market options also restrict their ability to benefit from potential price fluctuations.

Compounding these issues is information asymmetry. Farmers may lack access to real-time information about market prices and weather forecasts. This lack of knowledge makes it difficult for them to make informed decisions about production strategies, planting schedules, and marketing tactics. Without this crucial information, farmers struggle to optimize their yields and secure the best prices for their crops.

Finally, climate change throws a wrench into the entire system. Changing weather patterns and extreme weather events pose a growing threat to crop yields. Droughts, floods, and unpredictable weather disrupt production cycles and jeopardize food security. These factors create uncertainty and make it difficult for farmers to plan effectively.

Addressing these inefficiencies in Bhutan's agricultural supply chain is essential. By improving infrastructure, facilitating market access, providing better information, and adapting to climate change, Bhutan can ensure food security for its population, improve the livelihoods of its farmers, and promote sustainable agricultural development.

The impact of these inefficiencies is multifaceted:

The consequences of these inefficiencies in Bhutan's agricultural supply chain create a ripple effect with far-reaching impacts. The most immediate concern is food security. Post-harvest losses due to poor storage and limited access to markets reduce the overall availability of food. This, combined with the challenges farmers face in getting their crops to buyers, can lead to food shortages and price fluctuations. These fluctuations disproportionately impact vulnerable populations who struggle to afford rising food costs.

Furthermore, limited market access and low bargaining power for farmers directly translate to reduced income. Farmers receive lower prices for their crops, hindering their ability to generate a sustainable income. This discourages them from investing in improved agricultural practices like better seeds, fertilizers, or irrigation techniques. Stagnant agricultural development is another consequence. Inefficient supply chains create bottlenecks that impede the growth and modernization of the sector. This limits Bhutan's agricultural sector from reaching its full potential, hindering its contribution to the national economy in terms of job creation, exports, and overall economic growth. In essence, these inefficiencies create a vicious cycle that threatens food security, discourages investment, and hinders economic development.

Addressing these challenges

Addressing the inefficiencies within Bhutan's agricultural supply chain is not just desirable, it is critical. By tackling these challenges, we can achieve several crucial goals.

First and foremost, ensuring food security for Bhutan's population is paramount. The current inefficiencies, particularly post-harvest losses and limited market access for farmers, can lead to food shortages and price fluctuations. This instability disproportionately affects vulnerable populations who struggle to afford rising food costs. By improving the supply chain, we can ensure a more stable and accessible food supply for all Bhutanese citizens.

Secondly, improving the lives and incomes of Bhutanese farmers is essential. Limited market access and low bargaining power currently leave farmers with lower profits, hindering their ability to invest in better practices and technology. This creates a cycle of stagnant productivity and low income. By addressing these challenges, farmers can earn more for their crops, allowing them to invest in improved seeds, fertilizers, and irrigation systems. This will lead to increased productivity and overall agricultural development, ultimately improving the livelihoods of Bhutanese farmers.

Finally, promoting sustainable agricultural development and economic growth in Bhutan is a key objective. Inefficient supply chains hinder the growth and modernization of the agricultural sector, limiting its contribution to the national economy. By improving efficiency and resilience, the sector can become a significant driver of economic growth. This can create more jobs, increase exports, and contribute to a more robust national economy.

Therefore, this research aims to investigate and propose solutions to improve the efficiency and resilience of the agricultural supply chain for major cereal crops in Bhutan. By addressing these issues, we can ensure food security, improve farmer livelihoods, and promote sustainable agricultural development, contributing positively to Bhutan's overall economic growth.

Transportation Challenges

The road network in Bhutan is very limited, given that the country has relatively difficult terrain (Tandin Dorji et al., 2020). Tight and winding corridors and high incidence of landslides raise fuel and vehicle operating costs, thus heightening transport costs. Research shows that in Bhutan, transport cost contributes to about 30% of the price of cereal whereas in other more accessible markets, transport cost is only about 10% (Dizon et al., 2019). These costs slow down the delivery process and end up affecting the quality of fresh produce and competitiveness. Some possible interventions include improving the road structure and quality to increase capacity and adopting GPS-enabled transport systems.

Storage Issues

The storage techniques being practiced in Bhutan at the moment need to be revised and more effective, hence leading to high post-harvest losses. Conventional storage facilities like earthen silos, and open storage exposes the produce to spoilage and pest attacks leading to post-harvest losses of 20-25 percent of the total cereal production (Reddington, 2023). These losses worsen food insecurity and economic challenges affecting farming communities. It's worth mentioning that modern trends in storage, such as airtight storage bags and metal silos. Further, there is a need to enhance training programs on post-harvest management to enhance the quality and durability of stored cereals (Reddington, 2023).

Market Volatility

The high level of dependency on imported cereal puts Bhutan at the mercy of volatile markets and external trade policies. These vulnerabilities are demonstrated by India's sudden ban on wheat exports in 2022, followed by an increase in cereal prices in the domestic market (USDA, 2022). Presently, about 160,000 metric tons of cereals will be imported into Bhutan in 2023, evidencing the imbalance between production and consumption (FAO, 2024). This dependency not only increases food insecurity but also puts a lot of economic pressure on the Bhutanese economy.

These are some of the vulnerabilities that indicate that Bhutan must strive to increase cereal production within the country. This can be achieved through proper farming practices, such as the use of improved seeds that are high-yielding, climate-smart, and adequate techniques in farming. Thus, the development of extensive domestic markets contributes towards stabilizing the cereal price and ensuring that producers get their due share. This includes reducing the dependence on intermediaries, enhancing access to markets through efficient physical infrastructure development, and implementing policies.

Furthermore, it requires a long-term focus on research and development on agricultural technologies as well as extension services aimed at sensitizing farmers on how they can enhance their yields. By eradicating these problems, Bhutan will be able to build a more independent and sustainable agriculture sector.

Technological Challenges

A major limitation that hinders agriculture in Bhutan is the relatively limited application of modern technology and digital tools (World Bank, 2017). Some of the barriers to the adoption of digital agriculture in Bhutan include costs and low literacy levels in the use of technology. Such critical interventions include applying ICT tools to support the automation of supply chain activities. Others include compulsory training to improve ICT literacy and the use of simple technologies such as mobile-based MISs. These interventions can improve the autonomy of farmers, enhance the efficiency of supply chains, and consequently enhance the performance of agriculture (Schroeder et al., 2021). Hence, these technological hurdles must be overcome in order to achieve long-term agricultural growth and food security in Bhutan.

Climate Change

Climate change, therefore, has a severe impact on Bhutan's agriculture and the food supply chain since it has led to unpredictable weather patterns that are more frequent disease and pest attacks on crops (Chhogyel & Kumar, 2018). The recent catastrophic events attributed to climate change, like flash floods and landslides, have directly affected some crops across the country, reaffirming the agriculture sector's fragility in Bhutan. Measures to build climate resilience and innovative solutions can reduce these effects and improve the supply chain, including water-stress tolerant crops and improved weather prediction technology.

High Prices of Wheat Flour Due to Import Disruptions and High Transport Costs

With ninety percent of its demand for wheat obtained through importation, Bhutan remains highly susceptible to instability in the global market. The wheat export ban by India in 2022 was able to cause a huge hike in the domestic prices of wheat flour, thus deepening food insecurity (GOI, 2022). Transport costs are high, contributing to about 30 percent of the price of cereals in Bhutan on account of its geographical location, and less infrastructure development increases food prices. This dependence and high cost determine the need for Bhutan. They include practicing sustainable agriculture as well as making necessary improvements in the structure. A more efficient level of local production can help to avoid possible adverse consequences of import dependence while the improvement of transport facilities can help farmers to decrease expenditures. These measures are crucial for reducing fluctuations in food prices, addressing food insecurity, and improving economic stability.

Table: Critical Inefficiencies in Supply Chain

Critical Inefficiencies Description Solutions

Technological and Digitalization Issues Bhutans agriculture sector is predominately using the primitive farming methods with limited access to modern technologies and digital tools, especially in remote and rural areas of Bhutan. This is further constraints by lack of technology and digital literacy and skills among the farmers (Mohanta,Chedup, Dehury, 2021; (Dorji, Jamtsho & Tobgay 2023). The majority of the farmers are small-scale farmers thereby affordability remains a significant barrier to adaptation of digital tools that can enhance productivity and efficiency (Dorji, Jamtsho & Tobgay 2023; Sheoran et al., 2022; WFP, 2024) The development of robust system of the supply chain management through digitization can enhance efficiency in terms of traceability and track records of farm produces (Mohanta,Chedup, Dehury, 2021). Bhutan can significantly reduce the economic hardships of the farmers and traders by customizing and piloting the supply chain systems with the use of IoT and artificial intelligence (Borah et al., 2020).

Recent scholarly works highlight the critical role of digital supply chain management in enhancing the flexibility of agricultural supply chain systems. The AI, IoT experts should be appointed to train the farmers and traders to efficiently utilize the supply chain systems to distribute their produce in different markets. Relevant stakeholders should be involved and trained to better understand on how the blockchain technology can be utilized to enhance transparency, and trust in Bhutan's agricultural supply chain, ultimately contributing to improved food safety, consumer confidence, and overall supply chain efficiency (Mohanta, Chedup & Dehury, 2021),

High Transportation Costs and Poor Infrastructure Bhutan's mountainous terrain poses significant logistical challenges, leading to high transportation costs. Transporting cereals from remote farming areas to urban markets often requires navigating narrow, winding roads, resulting in increased fuel consumption and vehicle wear and tear (Dora et al., 2022). According to the Ministry of Agriculture, transportation costs account for approximately 30% of the final price of cereals in Bhutan, compared to 10% in more accessible regions. Additionally, frequent landslides and road blockages further exacerbate these costs, leading to delays and spoilage of perishable goods. Investments in better road infrastructure are essential. Implementing GPS-assisted transport systems can optimize routes, reducing travel time and costs. Developing alternative transport methods such as cable cars or improved rural road networks can significantly enhance accessibility and reduce logistical expenses (GIEWS, 2024).

Inadequate Storage Capacity and Post-Harvest Losses Inadequate storage facilities lead to significant post-harvest losses. Traditional storage methods, such as earthen silos and open storage, are insufficient in preserving cereal quality, resulting in spoilage and pest infestation (Muthamilarasan and Prasad, 2021). A study by the Food and Agriculture Organization (FAO) estimated that post-harvest losses in Bhutan amount to approximately 20-25% of total cereal production annually. This not only reduces the available food supply but also incurs substantial economic losses for farmers. Introduce modern storage solutions such as hermetic storage bags, metal silos, and refrigerated storage units. Government and NGO support in providing subsidies or low-interest loans for storage infrastructure can help farmers adopt these technologies. Training programs on post-harvest management practices can further reduce losses and improve food security (Rasul, 2021).

Dependency on Imports and Market Volatility Bhutan's reliance on cereal imports makes it vulnerable to external market fluctuations and trade policies. The 2022 wheat export ban by India resulted in a significant spike in domestic cereal prices, illustrating the precarious nature of this dependency. In 2023, Bhutan imported approximately 160,000 metric tons of cereals, highlighting the growing gap between domestic production and consumption needs (Chakraborty, 2024). Improve domestic production through better agricultural practices, including the use of high-yield and climate-resilient seed varieties, sustainable farming techniques, and efficient irrigation systems (GIEWS, 2024). Develop local markets and reduce middlemen to help stabilize prices and ensure fair returns for farmers. Policies to incentivize local production and reduce import reliance, such as subsidies for local farmers and investment in agricultural research.

1.3 Significance of the study

This study aims to address critical issues in Bhutan's agricultural sector, particularly focusing on the cereal crop supply chain, and aligns with broader sustainable development goals. Heres a detailed explanation of the significance of this research study:

1. **Addressing Food Security and Nutrition (SDG 2):**

- **Food Security:** Bhutan's cereal crops, such as rice, maize, and wheat, are staple foods that form the backbone of the country's food security. By identifying and addressing supply chain inefficiencies, the study aims to improve the availability and accessibility of these essential food items.

- **Nutrition:** Enhancing the efficiency of the cereal crop supply chain can lead to better quality and more nutritious food reaching consumers, thereby contributing to improved nutritional outcomes.

2. **Economic Development and Farmer Livelihoods:**

- **Farmer Income:** Inefficiencies in the supply chain often result in higher costs, post-harvest losses, and reduced market access, which negatively impact farmer incomes. By evaluating these inefficiencies, the study seeks to identify ways to enhance farmers' profitability and economic well-being.

- **Market Access:** Improved supply chain efficiency can facilitate better market access for farmers, enabling them to sell their produce at fair prices and reducing their dependence on intermediaries.

3. **Sustainable Agricultural Practices (SDG 12):**

- **Resource Optimization:** The study aims to promote sustainable agricultural practices by identifying ways to optimize resource use, reduce waste, and minimize environmental impact. This aligns with SDG 12, which focuses on responsible consumption and production.

- **Environmental Sustainability:** By addressing inefficiencies, the study can help reduce the carbon footprint and environmental degradation associated with the cereal crop supply chain.

4. **Climate Resilience (SDG 13):**

- **Adaptation to Climate Change:** The study can identify strategies to make the cereal crop supply chain more resilient to climate-related shocks, such as extreme weather events and changing climatic conditions. This is crucial for ensuring long-term sustainability and aligns with SDG 13 on climate action.

- **Climate-Smart Agriculture:** Promoting climate-smart agricultural practices can help mitigate the impact of climate change on the cereal crop sector and enhance the resilience of farming communities.

5. **Policy and Regulatory Insights:**

- **Informed Policymaking:** The findings from the study can provide valuable insights for policymakers, helping them design and implement policies that address supply chain inefficiencies and promote sustainable agricultural development.

- **Regulatory Reforms:** The study can identify areas where regulatory reforms are needed to support a more efficient and sustainable cereal crop supply chain.

6. **Capacity Building and Stakeholder Engagement:**

- **Training and Education:** The study can highlight the need for capacity-building programs to enhance the skills and knowledge of farmers and other stakeholders in the supply chain.

**Stakeholder Collaboration:** By engaging various stakeholders, including government agencies, NGOs, private sector players, and local communities, the study can foster collaboration and collective action towards sustainable development.

7. **Case Study Approach:**

- **Context-Specific Insights:** Using a case study approach allows for an in-depth analysis of specific regions, communities, or supply chains within Bhutan. This provides context-specific insights that are crucial for developing targeted and effective interventions.

- **Replicability and Scaling:** The lessons learned from the case studies can be applied to other regions or sectors, facilitating the replication and scaling of successful interventions.

8. **Contribution to Academic and Practical Knowledge:**

- **Academic Contribution:** The study adds to the body of knowledge on supply chain management, sustainable agriculture, and development studies, providing a valuable resource for researchers and academics.

- **Practical Solutions: ** By identifying practical solutions to supply chain inefficiencies, the study offers actionable recommendations that can be implemented by farmers, policymakers, and other stakeholders.

Conclusion: The research study on evaluating supply chain inefficiencies in the cereal crop sector of Bhutan is significant for multiple reasons. It addresses critical issues related to food security, economic development, sustainability, and climate resilience. By using a case study approach, the study provides context-specific insights and practical solutions that can drive sustainable development in Bhutan's agricultural sector. The findings can inform policymaking, enhance farmer livelihoods, promote sustainable practices, and contribute to the broader goals of the United Nations Sustainable Development Goals.

Efficient supply chains are essential for improving agricultural productivity as it ensures food security and helps in uplifting economic sustainability in Bhutan. Agriculture is the cornerstone of Bhutans economy so if there is efficiency in the supply chain it will lead to economic benefits by cutting down transaction costs, improving market access, and improving the competitiveness of Bhutanese agricultural products in domestic as well as international markets. Risk associated with fluctuations in global markets, which have impact on Bhutan, can be mitigated by reducing dependency on imported food products by enhancing economic domestic production and distribution. Efforts to uplift supply chain efficiencies are aligned with Bhutans commitment to sustainable development goals, precisely SDG 2 Zero Hunger and SDG 12 Responsible Consumption and Production and SDG 13 (Climate Change).

It is for several reasons that correcting the inefficiencies in cereal supply chain in Bhutan warrants attention. First of all, it is quite useful for magnifying food security. The food supply chain is critical since a large population depends on agriculture as the source of income, therefore an efficient supply chain will guarantee adequate production of staple foods (Yoezer and Rungsuriyawiboon, 2019). However, the government must also focus on decreasing post-harvest losses, as well as on extending the access to better transport and storage conditions, which will lead to lower food prices and thus, making is essential products more accessible for the population. Supply chains are also in a way a key component of economic sustainability as well (Dr. Rudra Bahadur Shrestha et al., 2019). This paper reveals that by diminishing the dependence on import and improving the domestic production, Bhutan can depend less on other countries. This does not only help to moderate the economic instability, but also minimizes the risks, including the impacts of the trade barriers and fluctuations in global markets (Thapa et al., 2019).

It is noteworthy that there are various advantages associated with supply chain supply chain improvements. It is also economically beneficial since it can mean that farmers and distributors get better deals on food, which in turn can lower its price for consumers (Chhetri, 2019). A better storage and transport system will help in minimizing the losses and in making sure that the quality of cereals that reach the markets is up to the mark hence improving the competitiveness of the Bhutanese products (Jain et al., 2020). Economically, well-organized supply chains will go a long way in enhancing the well-being of smallholder farmers by enabling them to access more markets and fetching better prices for their produce (Chhogyel and Kumar, 2018). This can help to eliminate poverty in rural areas and bring new life into villages, thus boosting their economies. Moreover, through the application of technology in supply chain, the opportunities of developing skills and employment for people within rural regions can be achieved

1.4 Research Gaps

Research Gaps on Bhutan Cereal Crop Supply Chain and SDGs Despite the growing interest in optimizing agricultural supply chains and achieving the United Nations Sustainable Development Goals (SDGs), several research gaps persist in the context of Bhutan's cereal crop sector. Identifying and addressing these gaps is crucial for developing effective strategies to enhance productivity, sustainability, and resilience. Below are the key research gaps related to Bhutan's cereal crop supply chain and the SDGs:

1. **Limited Data and Baseline Studies:**

- **Data Availability:** There is a lack of comprehensive and up-to-date data on various aspects of the cereal crop supply chain, including production volumes, post-harvest losses, market prices, and transportation costs.

- **Baseline Studies:** Few baseline studies exist that provide a detailed understanding of the current state of the cereal crop supply chain, making it challenging to measure progress and the impact of interventions.

2. **Impact of ICT Interventions:**

- **Effectiveness of ICT Solutions:** Limited research has been conducted on the effectiveness of specific ICT interventions in improving the cereal crop supply chain in Bhutan. Studies that evaluate the impact of mobile applications, IoT devices, blockchain, and other technologies are needed.

- **Adoption Barriers:** There is a gap in understanding the barriers to the adoption of ICT solutions among farmers, including issues related to digital literacy, affordability, and cultural acceptance.

3. **Post-Harvest Losses and Waste Management:**

- **Quantification of Losses:** Detailed studies quantifying post-harvest losses at various stages of the supply chain are scarce. Understanding the extent and causes of these losses is essential for developing targeted interventions.

- **Waste Management Practices:** Research on effective waste management practices and technologies that can be applied in the cereal crop sector is limited. ###

4. **Market Access and Value Chains:**

- **Market Dynamics:** There is a lack of research on the dynamics of local and regional markets for cereal crops, including price fluctuations, demand patterns, and the role of intermediaries.

- **Value Chain Analysis:** Comprehensive value chain analyses that map out all the actors involved, their roles, and the value added at each stage are needed to identify inefficiencies and opportunities for improvement.

5. **Sustainable Agricultural Practices:**

- **Sustainability Metrics:** Research on the specific sustainability metrics relevant to Bhutan's cereal crop sector is limited. Studies that develop and apply these metrics can help in assessing the environmental, social, and economic impacts of agricultural practices.

- **Climate-Smart Agriculture:** There is a need for research on climate-smart agricultural practices that are specifically tailored to Bhutan's unique climatic and geographical conditions.

6. **Policy and Regulatory Framework:**

- **Policy Impact:** Limited research exists on the impact of existing agricultural policies and regulations on the cereal crop supply chain. Studies that evaluate the effectiveness of these policies can provide insights for necessary reforms.

- **Regulatory Barriers:** Identifying regulatory barriers that hinder the efficiency and sustainability of the supply chain is crucial for developing supportive policies.

7. **Socio-Economic Factors:**

- **Farmer Livelihoods:** Research on the socio-economic factors affecting farmer livelihoods, including income levels, access to credit, and social capital, is limited.

- **Gender Dynamics:** There is a gap in understanding the role of gender dynamics in the cereal crop supply chain and how interventions can be designed to be inclusive and equitable. ###

8. **Integration with SDGs:**

- **SDG Alignment:** Research that explicitly aligns supply chain interventions with specific SDGs is limited. Studies that map out how various interventions contribute to achieving SDGs such as Zero Hunger (SDG 2), Responsible Consumption and Production (SDG 12), and Climate Action (SDG 13) are needed.

- **Impact Measurement:** There is a need for robust methodologies to measure the impact of supply chain improvements on SDGs. Developing indicators and frameworks for this purpose can help in tracking progress and making data-driven decisions.

9. **Capacity Building and Training:**

- **Training Needs Assessment:** Limited research has been conducted on the training needs of farmers and other stakeholders in the cereal crop supply chain. Understanding these needs is crucial for designing effective capacity-building programs.

- **Extension Services:** Research on the effectiveness of agricultural extension services in disseminating knowledge and technologies is scarce.

Conclusion: Addressing these research gaps is essential for developing a comprehensive understanding of the challenges and opportunities in Bhutan's cereal crop supply chain. By focusing on data availability, the impact of ICT interventions, post-harvest losses, market dynamics, sustainable practices, policy frameworks, socio-economic factors, SDG alignment, and capacity building, researchers can provide valuable insights that inform policy and practice. This, in turn, can contribute to enhancing the efficiency, sustainability, and resilience of the cereal crop sector, ultimately supporting Bhutan's broader sustainable development goals.

Limited Research on the Specific Challenges Faced by Bhutan in Managing the Supply Chain of Cereal Crops

Ironically, while agriculture remains a vital sector in the economy of Bhutan, and while supply chain management of cereal crops remains a key issue of concern in the country, there is no exhaustive study of the subject in extant literature (DISTRICT, 2023). Previous literature offers only a general insight into the scenario of agriculture in Bhutan and does not address the supply chain management problems in detail. For example, although information addresses the issue of dependency on imports and the effects of climate change, these reports fail to examine the other challenges including the physical characteristics of the supply chain network in Bhutan, which includes mountains that act as barriers to the movement of goods and services (GIEWS, 2024). This lack of research means that interventions to address these challenges can be general and not specifically geared towards helping those in this situation.

Insufficient Analysis of the Impact of Traditional and Modern Technologies on the Agricultural Supply Chain in Bhutan

One of the major research gaps currently evident in the literature is that greater attention has not been paid to understanding how both the conventional and innovative technologies affect the agricultural supply chain in Bhutan (Yoezer and Rungsuriyawiboon, 2019). Although there are some theoretical reviews that mention the possibilities of using GPS tracking in optimizing transportation or MBS in using mobile-based market information systems, there is no qualitative research that describes their practical application and efficiency in the context of Bhutan. For instance, mobile apps can easily offer real-time weather forecast and market prices that are very crucial to Bhutanese farmers, yet there are no studies suggesting the level of usage of these technologies and the extent of their effectiveness in eliminating inefficiencies in the supply chain (WFP, 2024). Along the same vein, more conventional approaches, including community-based storage architectures, have been suggested, although they have not been well researched or put into practice (Chhogyel and Kumar, 2018).

Need for a Localized Approach to Understanding and Solving Supply Chain Inefficiencies, Considering Bhutan's Unique Socio-Economic and Geographical Context:

Another research gap is the lack of an adequate localized approach to addressing supply chain issues because of the specific socio-economic and geographical situation of Bhutan. Generalized solutions prove ineffective when it comes to the unique circumstances and requirements of nations like Bhutan (Muthamilarasan and Prasad, 2021). For example, the terrains of Bhutan are complex and vary greatly from other terrains, and thus, demand distinct logistics plans from those that would be applicable to flat terrains or easier terrains to traverse. However, the socio-economic realities of small and often subsistence farms, legacy farm management practices, and financial constraints in integrating new technologies among farmers call for practical, cost-effective, and culturally palatable solutions (GIEWS, 2024).

For instance, picking and choosing strategies such as community-based initiatives where local players are engaged in the design and implementation of supply chain solutions may be considered more advantageous than the conventional approach (Dora et al., 2022). Similar case studies in other mountainous contexts could be useful but it is necessary to have more focused research in the context of Bhutan to confirm the viability of these approaches. Also, problems such as high transport costs and lack of proper storage infrastructure cannot be effectively solved by global solutions, as they depend on local conditions (WFP, 2024).

Some observable research gaps in Bhutans cereal crop supply chains include There is little empirical research on the performance and/or impact of agriculture cooperatives (ACs) in Bhutan specifically. According to Shangshonet al. (2022), there are also no deep researches available based on the rate of adaptation and impact of the emerging technologies such as AI, Blockchain and IoT on supply chain efficiency as well as farmer productivity? Moreover, ACs have not been subjected to empirical studies to assess their productivity and performance in Bhutan with regard to their efficiency, access to markets and their effectiveness in enhancing farmers welfare and improving the countrys economic stability. It also has not and will not produce supply chain mapping that specifically focuses on rice, wheat, and maize which leaves vulnerabilities unchecked. In the COVID-19 pandemic, the problem of the absence of the complete supply chain mapping was revealed, which was the reason for the inefficiency and the weakness of the supply chains. Without detailed mapping and working together, farmers cannot easily locate and solve the problems of the vulnerabilities, which results in the inefficiencies and thus the reduced profitability. However, one of the primary gaps that is identified in the literature is the lack of available information about the implementation of emerging technologies like AI, Blockchain, and IoT within the cooperative agricultural supply chains. This gap includes the potential issues and advantages these technologies offer for better supply chain and member productivity management.

More studies need to comprehensively examine the supply chain dynamics within Bhutan's serial crop sector. In studies like agricultural supply chains or broader economics, generalized insights have been obtained rather than going into specific challenges and opportunities specific to Bhutan's agriculture (Rasul, 2010). There has been a delayed analysis of transportation logistics, distribution networks, and storage facilities regarding Bhutan's geographical factors. Climate change also poses a significant challenge to agriculture in Bhutan, affecting crop yields, water availability, and agricultural productivity. Understanding the importance of adopting strategies and resilient supply chain practices is crucial. A deeper exploration of the socioeconomic implications of supply chain inefficiencies is needed. Studies often overlook the factors influencing farmers' decisions, such as market access and the agricultural chain. The result of government policies, subsidies, and frameworks still needs to be explored. More studies are needed on how technological advancements and digitalization can transform Bhutans agricultural sector. Limited studies are available that emphasize sustainable agricultural practices that reduce environmental impacts, promote diversity, and ensure food security. Addressing the identified gaps will help advance knowledge and formulate policies to improve Bhutans cereal crop sector (Gupta & Bhatt, 2016).

1.5 Research Objectives

Main Objectives (one main objective)

To evaluate affordable interventions in Bhutan agriculture supply chain towards attaining UN Sustainable Development Goals (SDGs);

The objective "To evaluate affordable interventions in Bhutan agriculture supply chain towards attaining UN SDGs" aims to systematically assess and identify cost-effective strategies and solutions that can enhance the agricultural supply chain in Bhutan. This objective is aligned with the broader goal of achieving specific United Nations Sustainable Development Goals (SDGs). Heres a detailed breakdown of what this entails:

**Understanding the Current Supply Chain:

Mapping the Supply Chain:** Identify all the key components and stakeholders involved in the agricultural supply chain, from farmers and input suppliers to processors, distributors, and consumers.

Identifying Bottlenecks:** Analyze the existing challenges and inefficiencies within the supply chain, such as poor infrastructure, high transportation costs, inadequate storage facilities, and market access issues.

Evaluating Affordable Interventions:**

- **Cost-Benefit Analysis:** Conduct a cost-benefit analysis of various potential interventions to determine their affordability and effectiveness. This could include modern farming technologies, improved transportation and storage solutions, and digital tools for market access.

- Sustainable Practices:** Focus on interventions that promote sustainable agricultural practices, such as organic farming, climate-resilient crop varieties, and efficient water management systems.

3. **Aligning with UN SDGs:** -

- SDG 2 Zero Hunger:** Ensure that the interventions contribute to improving food security and nutrition by increasing agricultural productivity and reducing post-harvest losses.

- SDG 12 Responsible Consumption and Production:** Promote practices that minimize waste and optimize resource use throughout the supply chain, thereby ensuring responsible consumption and production patterns.

- SDG 13 Climate Action:** Incorporate measures that mitigate the impact of climate change on agriculture, such as adopting climate-smart agricultural practices and enhancing the resilience of the supply chain to climate-related shocks.

4. **Implementation and Scalability:

- Pilot Projects:** Implement pilot projects to test the feasibility and impact of the proposed interventions in different regions of Bhutan.

-Scalability:Assess the scalability of successful interventions to ensure they can be adopted widely across the country, benefiting a larger number of farmers and stakeholders.

5. Stakeholder Engagement:

-Collaborative Approach:** Engage with various stakeholders, including government agencies, non-governmental organizations, private sector players, and local communities, to ensure a collaborative and inclusive approach.

- Capacity Building:** Provide training and capacity-building programs for farmers and other stakeholders to enhance their skills and knowledge in utilizing the new interventions effectively.

6. **Monitoring and Evaluation:

- Performance Metrics:** Establish clear performance metrics and indicators to monitor the progress and impact of the interventions on the agricultural supply chain and the attainment of the SDGs.

- Feedback Mechanism:** Create a feedback mechanism to gather insights from stakeholders and make necessary adjustments to the interventions for continuous improvement.

7. **Policy Recommendations:

- Policy Support:** Develop policy recommendations based on the findings to support the adoption and scaling of effective interventions. This may include advocating for supportive policies, subsidies, and incentives for sustainable agricultural practices.

Conclusion: By evaluating affordable interventions in Bhutan's agriculture supply chain, this objective aims to create a more efficient, sustainable, and resilient agricultural sector. This, in turn, will contribute to the broader goals of poverty alleviation, food security, economic development, and environmental sustainability, in line with the United Nations Sustainable Development Goals.

Research sub-objectives (three sub-objectives)

Understand the most significant factors contributing to supply chain inefficiencies;

To identify and analyze the key factors that lead to inefficiencies within the agricultural supply chain in Bhutan, particularly focusing on cereal crops.

Key Areas of Focus:

- Infrastructure Challenges:** Assess the state of transportation networks, storage facilities, and market access points. Poor infrastructure can lead to delays, increased costs, and post-harvest losses.

- Technological Gaps:** Examine the extent of technology adoption in farming practices, logistics, and market information systems. Limited use of modern technology can hinder productivity and efficiency.

- Market Access and Integration:** Investigate how well farmers are connected to local, regional, and international markets. Barriers to market access can result in reduced income and market opportunities for farmers.

- Climate and Environmental Factors:** Analyze the impact of climate variability, natural disasters, and environmental degradation on agricultural productivity and supply chain stability.

- Policy and Regulatory Issues:** Review existing agricultural policies, regulations, and support mechanisms. Ineffective policies or lack of support can exacerbate supply chain inefficiencies.

- Human Resource Constraints:** Look into the availability and skills of the labor force involved in agriculture and supply chain management. A lack of skilled labor can impede the adoption of best practices.

- Financial Barriers:** Assess the availability of financial resources and credit facilities for farmers and supply chain stakeholders. Limited access to finance can restrict investments in infrastructure and technology.

Evaluate using case studies how these inefficiencies affect Bhutans cereal crop supply chain;

To provide a detailed analysis of how identified inefficiencies impact the cereal crop supply chain in Bhutan, using real-world examples and case studies.

Key Areas of Focus:

- Case Study Selection:** Identify specific regions, communities, or supply chains within Bhutan that exemplify the challenges faced. These case studies should cover a range of cereal crops such as rice, maize, and wheat.

- Impact on Production:** Analyze how inefficiencies affect crop yields, quality, and overall production levels. Include factors like delayed planting/harvesting, pest infestations, and inadequate irrigation.

- Economic Impact:** Evaluate the financial implications for farmers and other stakeholders. Consider aspects such as reduced income, increased costs, and market price volatility.

- Post-Harvest Losses:** Examine the extent of post-harvest losses due to inadequate storage, transportation issues, and poor handling practices. Quantify these losses where possible.

- Supply Chain Disruptions:** Investigate instances of supply chain disruptions caused by infrastructure failures, natural disasters, or market fluctuations. Assess the short-term and long-term impacts on the supply chain.

- Stakeholder Perspectives:** Gather insights from various stakeholders, including farmers, traders, policymakers, and consumers, to understand the broader implications of supply chain inefficiencies.

Propose practical solutions that will contribute to a more efficient and sustainable cereal crop sector

Assessment of impact of the intervention with case study stakeholders (stakeholders here means e.g., grower group/cooperatives)

To develop actionable recommendations and strategies that address the identified inefficiencies and promote a more efficient and sustainable cereal crop supply chain in Bhutan. Key Areas of Focus:

- Infrastructure Improvements:** Propose investments in transportation networks, storage facilities, and market access points. Highlight the potential benefits of these improvements in reducing costs and post-harvest losses.

- Technological Adoption:** Recommend the adoption of modern farming technologies, digital tools, and information systems. Discuss how these technologies can enhance productivity, efficiency, and market access.

- Market Integration:** Suggest strategies to improve market access and integration for farmers. This could include the development of cooperatives, market linkages, and value chain partnerships.

- Climate Resilience:** Advocate for climate-smart agricultural practices and infrastructure that can withstand environmental shocks. This may include drought-resistant crop varieties, efficient water management systems, and disaster preparedness plans.

- Policy and Regulatory Support:** Recommend policy changes and support mechanisms that can facilitate a more efficient supply chain. This could involve subsidies, incentives, and regulatory reforms.

- Capacity Building: Propose training and capacity-building programs for farmers and supply chain stakeholders. Focus on enhancing skills in modern farming practices, supply chain management, and the use of technology.

- Financial Access:** Suggest ways to improve access to finance for farmers and supply chain stakeholders. This could include microfinance, agricultural loans, and investment schemes.

- Sustainability Practices:** Recommend practices that promote environmental sustainability, such as organic farming, reduced chemical use, and conservation agriculture.

By addressing these research sub-topics, the study aims to provide a comprehensive understanding of the challenges faced by Bhutan's cereal crop supply chain and offer practical, sustainable solutions to enhance its efficiency and resilience. This, in turn, will contribute to the broader goals of food security, economic development, and environmental sustainability in line with the United Nations Sustainable Development Goals.

1.6 Research Questions

Main Research Question (one main research question)

How can affordable ICT interventions or strategies optimise Bhutan cereal supply chain in line UN Sustainability Goals (SDG goals relevant to the subject: SDG-2 (zero hunger); SDG-12 (responsible consumption and production); and SDG-13 (climate action)

The main research question, "How can affordable ICT interventions or strategies optimize Bhutan's cereal supply chain in line with UN SDGs," aims to explore the potential of Information and Communication Technology (ICT) to enhance the efficiency, sustainability, and resilience of Bhutan's cereal supply chain. This question is framed within the context of achieving specific United Nations Sustainable Development Goals (SDGs). Heres a detailed breakdown of the various components of this research question: ###

1. **Understanding the Context:**

- **Bhutan's Cereal Supply Chain:** The supply chain for cereal crops in Bhutan, which includes rice, maize, and wheat, is characterized by several inefficiencies such as poor infrastructure, limited market access, high post-harvest losses, and inadequate storage facilities. These inefficiencies impact food security, farmer incomes, and overall economic development.

- UN Sustainable Development Goals (SDGs):** The relevant SDGs in this context include: - **SDG 2 Zero Hunger:** Aiming to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture. - **SDG 12 Responsible Consumption and Production:** Focusing on sustainable management and efficient use of natural resources. - **SDG 13 Climate Action:** Taking urgent action to combat climate change and its impacts.

2. **Affordable ICT Interventions:**

- **Definition of ICT:** Information and Communication Technology encompasses a wide range of digital tools and platforms, including mobile applications, internet services, data analytics, blockchain, and Internet of Things (IoT) devices.

- **Affordability:** The focus is on cost-effective ICT solutions that can be easily adopted by smallholder farmers and other stakeholders within the supply chain without requiring significant financial investment. ###

3. **Potential ICT Interventions:**

- **Mobile Applications:** Apps that provide real-time market information, weather forecasts, and farming advice. These can help farmers make informed decisions about planting, harvesting, and selling their crops.

- **Digital Marketplaces:** Online platforms that connect farmers directly with buyers, reducing the reliance on intermediaries and improving market access.

- **Supply Chain Management Systems:** Software solutions that streamline logistics, inventory management, and transportation, reducing delays and post-harvest losses.

- **Blockchain Technology:** Ensuring transparency and traceability in the supply chain, which can help build trust and reduce fraud.

- **IoT Devices:** Sensors and devices that monitor crop conditions, soil health, and resource usage, enabling precision farming and efficient resource management.

4. **Optimization of the Supply Chain:**

- **Efficiency:** ICT interventions can streamline various processes within the supply chain, reducing delays, costs, and wastage. For example, digital inventory management systems can help in better planning and coordination.

- **Sustainability:** ICT can promote sustainable agricultural practices by providing farmers with data-driven insights on resource usage, pest control, and crop rotation. This aligns with SDG 12 by minimizing waste and optimizing resource use.

- **Resilience:** By providing real-time information and predictive analytics, ICT can help farmers and supply chain stakeholders anticipate and respond to climate-related shocks and other disruptions, aligning with SDG 13.

5. **Alignment with UN SDGs:** - **SDG 2 Zero Hunger:** ICT interventions can enhance food security by increasing agricultural productivity, reducing post-harvest losses, and improving market access, ensuring that more food reaches consumers. - **SDG 12 Responsible Consumption and Production:** By optimizing the supply chain and promoting efficient resource use, ICT can help reduce waste and ensure sustainable production practices. - **SDG 13 Climate Action:** ICT can support climate-smart agriculture by providing data and tools that help farmers adapt to changing climatic conditions and reduce their environmental footprint.

6. **Implementation and Scalability:**

- **Pilot Projects:** Testing ICT interventions in specific regions or communities to assess their feasibility, impact, and scalability.

- **Stakeholder Engagement:** Collaborating with government agencies, NGOs, private sector players, and local communities to ensure the successful adoption and scaling of ICT solutions.

- **Capacity Building:** Providing training and support to farmers and other stakeholders to enhance their digital literacy and ability to use ICT tools effectively.

Conclusion: The main research question seeks to explore how affordable ICT interventions can be leveraged to optimize Bhutan's cereal supply chain, making it more efficient, sustainable, and resilient. By aligning these interventions with the UN SDGs, the research aims to contribute to broader goals of food security, sustainable development, and climate resilience. This holistic approach not only addresses the immediate challenges within the supply chain but also supports long-term socio-economic and environmental objectives.

Research sub-questions (three sub-questions)

What are the primary ICT factors and how do they impact the overall productivity and sustainability of the agricultural sector in Bhutan?

To identify the key ICT factors that influence productivity and sustainability in Bhutan's agricultural sector and understand their specific impacts.

Key Areas of Focus:

**Primary ICT Factors:**

- **Connectivity and Internet Access:** Availability and quality of internet and mobile network coverage in rural and farming areas.

- **Digital Literacy:** The level of digital literacy among farmers and other stakeholders, which affects their ability to effectively use ICT tools.

- **Mobile Applications:** Usage of mobile apps for accessing market information, weather forecasts, farming advice, and financial services.

- **Data Analytics:** Utilization of data analytics for decision-making, including crop monitoring, yield prediction, and resource management.

- **IoT Devices:** Implementation of Internet of Things (IoT) devices for real-time monitoring of soil health, weather conditions, and crop status.

- **Blockchain Technology:** Adoption of blockchain for ensuring transparency and traceability in the supply chain.

- **Digital Marketplaces:** Platforms that facilitate direct transactions between farmers and buyers, reducing intermediaries.

**Impact on Productivity:**

- **Enhanced Decision-Making:** Real-time data and predictive analytics help farmers make informed decisions, leading to higher crop yields and better resource management.

- **Efficient Resource Use:** IoT devices and data analytics enable precision farming, optimizing the use of water, fertilizers, and pesticides.

- **Reduced Post-Harvest Losses:** Improved logistics and supply chain management systems minimize delays and wastage, ensuring more produce reaches the market.

**Impact on Sustainability:**

- **Sustainable Practices:** ICT tools promote sustainable agricultural practices by providing data-driven insights on crop rotation, pest control, and soil health.

- **Climate Resilience:** Real-time weather forecasts and climate data help farmers adapt to changing climatic conditions, reducing the risk of crop failure.

- **Market Access:** Digital marketplaces and mobile apps improve market access for farmers, ensuring fair prices and reducing the exploitation by intermediaries.

What affordable ICT interventions are most likely to impact the Bhutan cereal crop sector?

To identify cost-effective ICT interventions that can significantly improve the cereal crop sector in Bhutan.

Key Areas of Focus:

**Criteria for Affordability:**

- **Low Cost:** Solutions that require minimal financial investment and are accessible to smallholder farmers.

- **Ease of Use:** User-friendly tools that do not require extensive training or technical expertise.

- **Scalability:** Interventions that can be easily scaled to benefit a large number of farmers.

Potential ICT Interventions:**

- **Mobile Applications:** Apps that provide market prices, weather forecasts, farming tips, and financial services. Examples include mFarms, iCow, and eKutir.

- **Digital Marketplaces:** Platforms like e-Choupal or FarmCrowdy that connect farmers directly with buyers, reducing reliance on intermediaries.

- **SMS-Based Services:** Simple SMS services that deliver crucial information to farmers, such as weather alerts, pest warnings, and market prices.

- **IoT Devices:** Affordable sensors for monitoring soil moisture, temperature, and crop health, enabling precision farming.

- **Blockchain Solutions:** Low-cost blockchain platforms for ensuring transparency and traceability in the supply chain, such as AgriLedger.

- **Data Analytics Tools:** Tools that analyze farm data to provide actionable insights on crop management and resource use.

How can these ICT interventions/solutions be tailored to fit the specific financial, cultural, and agricultural conditions of Bhutan?

To adapt ICT interventions to the unique context of Bhutan, ensuring they are effective and widely adopted.

Key Areas of Focus:

**Financial Conditions:**- Subsidies and Grants:** Propose financial support mechanisms such as subsidies, grants, or microfinance to help farmers afford ICT tools.

- **Cost-Sharing Models:** Develop cost-sharing models where the initial investment is shared between farmers, cooperatives, and government agencies.

- **Affordable Pricing:** Ensure that ICT solutions are priced within the financial reach of smallholder farmers.

**Cultural Conditions:

- **Language and Literacy:** Develop ICT tools in local languages and ensure they are accessible to individuals with varying levels of literacy.

- **Community Engagement:** Engage local communities in the design and implementation of ICT interventions to ensure they meet cultural norms and practices.

- **Training and Support:** Provide training programs and ongoing support to help farmers and stakeholders effectively use ICT tools.

**Agricultural Conditions:

- **Crop-Specific Solutions:** Tailor ICT interventions to the specific needs of cereal crops such as rice, maize, and wheat, considering local farming practices and climatic conditions.

- **Local Partnerships:** Collaborate with local agricultural institutions, cooperatives, and extension services to ensure the relevance and effectiveness of ICT solutions.

- **Pilot Testing:** Conduct pilot tests of ICT interventions in different regions and farming communities to gather feedback and make necessary adjustments.

Conclusion: These research sub-questions aim to comprehensively explore the potential of ICT interventions to optimize Bhutan's cereal supply chain. By identifying primary ICT factors, evaluating affordable interventions, and tailoring solutions to fit local conditions, the research seeks to develop actionable strategies that enhance productivity, sustainability, and resilience in line with the United Nations Sustainable Development Goals.

Chapter 2: Literature Review

Chapter 3: Proposed Research MethodologyDetermine the baseline:

(types of research ) - Action-based Research

Quantitative data collection

Conduct personal interview or survey for the players involved in the supply chain to determine the baseline of the supply chain in Bhutan

Use the stratified sampling method to get involved the relevant organizations/players in the supply chain

Organizations/players involved in the supply chains would be: Farmers, retailers, wholesalers, Retailers, government organizations, storage facilitators, buyers groups etc.

Carry out focused group interviews???

Geographical area for the baseline study

Mapping of the supply chain

Data set collection

Research process ( to include the flow)

Sub-section:

Research Activity

( Situational analysis, Intervention, analysis of the result (intervention), implement the change)

Analysis of the research ( tools, qualitative or quantitative analysis)

The above tasks will give clear indications of the supply chain inefficiencies and the relevant interventions needed ( who, what, how and why?)

Case study:

Based on action one above, selecting a particular organization/players stakeholder for intervention.

Growers group/Cooperatives for instance

Apply solutions (basically the technology intervention)

Strategize the solutions or interventions

Based on literature review, what are some of the interventions------- ( Technology solutions for reliable information on market, weather forecasting, crop forecasting information, pricing etc..Chapter 4: Ethical Consideration

For focused groups

Data management

5. Research Timeline