Bhutan’s forestry sector contributes only 2.48 percent to the national GDP in 2023, despite covering 70% of the country’s land area. The low contribution is due to administrative transfers from the Department of Forests and Park Services to the Department of Geology and Mines, resulting in underutilization of renewable forest resources. Bhutan faces restrictions on timber harvesting, particularly in protected areas, due to conservation laws and government-fixed prices. Trade imbalance in wood-based products, underdeveloped wood processing industry, and regulatory barriers further complicate the situation.
The report highlights inconsistencies in timber measurement methods between Bhutan and India, resulting in undervaluation of Bhutanese exports and illegal practices. It also highlights the untapped potential of Non-Wood Forest Products and recommends urgent reforms for economic growth and sustainability. The NC deliberations suggested establishing forest-based industrial clusters, modernizing sawmills, establishing a national certification system, and investing in skills development. However, concerns over incomplete accounting of forestry-related incomes were raised.