𝐎𝐆𝐎𝐏 𝐄𝐱𝐩𝐚𝐧𝐝𝐬 𝐭𝐨 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧 𝐑𝐮𝐫𝐚𝐥 𝐄𝐜𝐨𝐧𝐨𝐦𝐲 𝐚𝐧𝐝 𝐏𝐫𝐨𝐦𝐨𝐭𝐞 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐬𝐡𝐢𝐩

…𝒕𝒉𝒆 𝒔𝒉𝒊𝒇𝒕 𝒕𝒐𝒘𝒂𝒓𝒅𝒔 𝒊𝒏𝒅𝒖𝒔𝒕𝒓𝒊𝒂𝒍-𝒍𝒆𝒗𝒆𝒍 𝒎𝒂𝒏𝒖𝒇𝒂𝒄𝒕𝒖𝒓𝒊𝒏𝒈, 𝒏𝒆𝒘 𝒊𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 𝒎𝒐𝒅𝒆𝒍𝒔, 𝒂𝒏𝒅 𝒊𝒏𝒕𝒆𝒓𝒏𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝒔𝒕𝒂𝒏𝒅𝒂𝒓𝒅𝒔 𝒂𝒊𝒎𝒔 𝒕𝒐 𝒃𝒐𝒐𝒔𝒕 𝒓𝒖𝒓𝒂𝒍 𝒍𝒊𝒗𝒆𝒍𝒊𝒉𝒐𝒐𝒅𝒔 𝒂𝒏𝒅 𝒆𝒏𝒔𝒖𝒓𝒆 𝒔𝒖𝒔𝒕𝒂𝒊𝒏𝒂𝒃𝒍𝒆 𝒈𝒓𝒐𝒘𝒕𝒉.

By Kezang Choden

The One Gewog, One Product (OGOP) initiative is set to expand its support for projects that promote entrepreneurship, improve livelihoods, and strengthen the rural economy. The expanded initiative will focus on creating high-quality, authentic Bhutanese products that adhere to stringent quality standards, advanced production techniques, and regulatory compliance. OGOP is seeking collaboration with the private sector, farmers, artisans, startups, and entrepreneurs through various project implementation models.

Launched as a Royal Initiative under the Queen’s Project Office of Her Majesty The Gyaltsuen on November 11, 2015, OGOP aims to uplift rural communities by enhancing their socio-economic well-being. To date, OGOP has developed over 65 products, with ongoing efforts to introduce new offerings. Looking ahead, the Queen’s Project Office plans to scale up the initiative by enhancing its capacity to collect, process, package, and market a significant portion of farmers’ produce at the national level. This expansion aims to encourage farmers and producers to increase production in response to market demand, further strengthening the local economy and enhancing the livelihoods of rural communities, startups, and entrepreneurs.

The OGOP initiative is set for a major transformation, shifting from small-scale production to a commercial, industrial-level manufacturing model. This move is expected to improve market-driven approaches, attract investments, and contribute to the overall growth of Bhutan’s economy.

Under a newly developed engagement and investment framework, OGOP projects will transition from pilot initiatives to fully-fledged manufacturing enterprises. This change is designed to create significant investment opportunities while strengthening grassroots entrepreneurship. The framework seeks to promote production aligned with market demand, ensuring both sustainability and economic viability. Projects under this framework will operate in an entrepreneurship mode, fostering new business ventures.

A key focus will be on meeting international quality standards to improve product competitiveness in both domestic and export markets. Compliance with global norms will enhance product credibility, helping Bhutan establish a stronger presence in international trade.

Namgay Dorji, the advisor of the OGOP program, highlighted the initiative’s efforts to strengthen Bhutan’s agricultural sector by involving farmers and private businesses in expanding production, enhancing the value chain, and adding value to local products.

He emphasized that OGOP serves as a crucial link between high-quality Bhutanese goods and larger markets, ensuring better economic returns for producers. He explained that the framework is designed to promote rural entrepreneurship by supporting small-scale farmers and local businesses in processing and packaging their products to meet market standards. By focusing on value addition, OGOP enables traditional and organic produce to fetch higher prices, thereby increasing farmers’ incomes and encouraging sustainable agricultural practices.

According to Namgay Dorji, OGOP helps in branding and marketing Bhutanese products. With growing consumer demand for organic and ethically sourced goods, he noted that the initiative plays a vital role in positioning Bhutanese products competitively in domestic and international markets.

He said, “Efforts to promote and market authentic Bhutanese products, including agriculture, arts, crafts, and textiles, are being strengthened through value addition and innovative technology. The initiative focuses on several key areas to enhance market competitiveness, ensure quality, and support local producers.”

He said that the first step involves identifying critical focus areas that require attention for effective scaling. This will ensure that production aligns with market demands and the preferences of farmers. Investment models will be established to attract sustainable investments and stakeholders, ensuring long-term financial viability. Strengthening the management structure of OGOP is another priority, which will improve organizational efficiency and facilitate better coordination as operations expand.

Efforts will also focus on the collection, value addition, and marketing of products. Farmers and entrepreneurs will receive support to improve the processing and promotion of their products. In addition, training programs and access to modern equipment will be provided to ensure efficient and high-quality production techniques.

To prepare Bhutanese products for the global market, the initiative will focus on industry building, equipping local producers with the skills necessary to meet international standards. Innovative design will be encouraged to enhance product appeal and market relevance. Ensuring product quality and safety will remain a top priority. Systematic interventions, including quality testing, traceability, and certifications, will be implemented to meet consumer expectations and build trust in Bhutanese products. These measures aim to support farmers, youth, women, and startups in developing competitive business ventures while fostering collaboration among stakeholders.

OGOP has identified five key implementation models to promote economic development and sustainability. These include the Project Lead Model, Joint Venture Model, Foreign Direct Investment (FDI) Model, Youth, DeSuung, or Gyalsung Engagement Model, and the OGOP Entrepreneur Development Model for farmers and production houses.
Under the Project Lead Model, initiatives that may not attract private or foreign investment due to long gestation periods or low returns but hold significant socio-economic value will continue. This model ensures that critical projects benefiting the people continue despite limited commercial appeal. The Joint Venture Model will strengthen project execution through partnerships with private sector entities and startup entrepreneurs. By fostering collaboration, this model aims to enhance the effectiveness and reach of various initiatives.

He emphasized the FDI Model envisions long-term investment opportunities by engaging foreign investors in developing a green and sustainable grassroots economy. OGOP seeks to promote socially responsible and environmentally friendly industries through this initiative. FDI will be permitted with the following objectives: enhancing local production through improved agricultural practices, expanding international markets for OGOP products, investing in innovative solutions, fostering sustainable rural development by creating income opportunities, and preserving Bhutan’s cultural identity and ecological balance through the production of authentic, traditional, and eco-friendly products. These implementation models are expected to create a robust and sustainable framework for economic growth while safeguarding the country’s unique cultural and environmental heritage.

In an effort to promote innovation and create employment opportunities, several projects will be implemented as engagement and earning initiatives for youth, DeSuung, and Gyalsung members. These initiatives will foster economic opportunities and strengthen community participation in nation-building.

He said, “Projects under DeSuung engagement will be routed through the DeSuung Headquarters, while those involving Gyalsup will be facilitated by a designated agency. For youth-led initiatives, the respective dzongkhags will oversee project clearances, provide technical support, and address other necessary requirements.”

Meanwhile, the OGOP initiative continues to prioritize entrepreneurship development by linking produce to markets through a value chain system. OGOP will invest up to 70 percent of the total project cost, following a thorough technical evaluation. A plough-back mechanism, mutually agreed upon between OGOP and the client, will require a minimum reinvestment of 20 percent of the generated income. After three years of successful farm operations, OGOP will offer opportunities to scale up the initiative with additional investments under the same model. Farmers, processing units, and small-scale industries seeking support under this scheme must submit their proposals through the relevant Dzongkhag, adhering to the established norms.