Despite the country maintaining nearly 70 per cent forest cover, the forestry sector’s contribution to the country’s economy is insignificant. It accounts to just over 2.4 percent of the GDP in 2023. With much of the country’s forest resources remaining underutilised, the National Council is set to deliberate on the issue. The House will also consider recommendations aimed at increasing forest utilisation while maintaining environmental conservation.
At the press conference today for the upcoming National Council session, the Natural Resources and Environment Committee’s chairperson highlighted that although the country has a capacity to produce nearly 42 million cubic feet, which is around 69,300 truckloads of timber annually, Bhutan remains a net importer of wood-based products.
Imports continue to exceed Nu 4bn compared to export worth over Nu 700 M in 2024.
Only around 3 per cent of the country’s sustainable forest potential is currently harvested.
The MP said higher production costs, lower quality, and the lack of standardised domestic products are some of the reasons found for Bhutan’s continued reliance on imports.
Structural challenges such as harvesting restrictions, limited industrial capacity, and low value addition also contribute to the imbalance.
The MP said this figure could double if the country boosts its production capacity and resource utilisation.
Kelzang Lhundup, Chairperson of Natural Resources and Environment Committee said “There are furniture manufactured in the country but there is a lack of a certification lab. Therefore, we need to brand it as “Made in Bhutan” with good quality and value addition. It does not mean that we will not import. We will keep it as it but there is no need to completely import furniture all the way from Singapore and Germany. If we can use the one that are made here, it will be great.”
To address these gaps, a review report will propose several recommendations such as amending the Forest and Nature Conservation Act to allow quota-based commercial timber harvesting and branding local wood products and encouraging government to procure furniture made in the country.
The MP said “After maintaining the forest cover above 60 per cent, it is a waste to keep the rotten wood in the forest. Instead if people can be benefitted from it. In rural areas, there is certain requirements for firewood and construction. For sawmills and furniture, if there is a quota-based annually for sustainability and if we make slight changes to the Acts, it will benefit the people.”
Including this report, the National Council will deliberate on review reports on the State of Tourism, Rural Life Insurance Scheme and Youth and Substance Abuse, The House will also discuss on Interim Report on Penal Code (Amendment) Bill of Bhutan 2025, Excise Tax Bill of Bhutan 2025, Goods and Services (Amendment) Bill 2025, Income Tax Bill of Bhutan 2025, Introduction on the Annual Budget Appropriation Bill for FY 2025-2026 and Supplementary Budget Appropriation Bill for FY 2024-2025. The House will also deliberate on follow-up reports on the resolutions of the previous session.
The National Council will begin this Friday and end on 2nd July.
Devika Pradhan
Edited by Tshering Zam
