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\hypersetup{pdftitle={Does Improved Market Access for Smallholders in Bhutan Affect Food Self"=Sufficiency?},pdfauthor={Kiran Subedi, Tim K. Loos, Arndt Feuerbacher, Harald Grethe},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={Bhutan, food self-sufficiency, propensity score matching, road infrastructure, rural development},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{Does Improved Market Access for Smallholders in Bhutan Affect Food Self"=Sufficiency?\footnote{\textbf{Contact Address:} Arndt Feuerbacher, Humboldt-Universität zu Berlin, International Agricultural Trade and Development, Unter den Linden 6, 10099~Berlin, Germany, \mbox{e-mail}: \email{arndt.feuerbacher@hu-berlin.de}}\\[0.8ex]}}
\normalsize{\textsc{Kiran Subedi$^{1}$, Tim K. Loos$^{2}$, Arndt Feuerbacher$^{3}$, Harald Grethe$^{3}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Ministry of Agriculture and Forests, Department of Agriculture, Bhutan}}}
\item[]{\small{\textit{$^{2}$University of Hohenheim, Inst. of Agricultural Sciences in the Tropics (Hans-Ruthenberg-Institute), Germany}}}
\item[]{\small{\textit{$^{3}$Humboldt-Universität zu Berlin, International Agricultural Trade and Development, Germany}}}
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\index[author]{Subedi, Kiran}
\index[author]{Loos, Tim K.}
\index[author]{Feuerbacher, Arndt}
\index[author]{Grethe, Harald}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
In Bhutan, a country with extreme mountainous geography, a large share of the rural and dispersed population has poor access to markets. As this impedes agricultural development, the construction of farm roads became a key priority of Bhutan's government during the last decade. This study investigates how the construction of farm roads between 2009 and 2012 has affected farmers' land use, marketing of output, income and food self"=sufficiency. The underlying hypothesis is that improved market access leads to increased output of cash crops and a simultaneous decline in cereal output. This would contradict the policy objective of achieving higher levels in rice self"=sufficiency, another key political priority. Employing propensity score matching (PSM) techniques, socio"=economic data of 834 farming household collected in 2013 was analysed and supplemented by qualitative information from expert interviews and field observations in 2015. The findings of this study suggest that the short"=term impact of farm roads has resulted in significantly increased cultivation of cash crops, while the cultivation of rice, the most relevant and highly valued cereal, did not decrease. In contrast, however, cultivation of low value cereals such as maize and wheat declined. Bhutan's land use policies, which constrain farmers to convert wetland used for paddy to dryland used for the cultivation of cash crops, could be a possible explanation of these mixed results. This is supported by the finding that dryland left fallow has significantly decreased, while wetland left fallow was not impacted by improved market access. Overall, the study concludes that the construction of farm roads does not contradict the policy objective of rice self"=sufficiency. Further research could assess the economic efficiency of farm road construction based on village specific cost"=benefit analysis. Long"=term impacts of farm roads may be analysed in the future, particularly with regard to the adoption of improved technology and effects on rural labour markets through an increased rural"=urban migration.



}

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\noindent \textbf{Keywords:} Bhutan, food self"=sufficiency, propensity score matching, road infrastructure, rural development
\index[key]{Bhutan}
\index[key]{Food!self"=sufficiency}
\index[key]{Propensity score matching}
\index[key]{Road infrastructure}
\index[key]{Rural!development}
\end{document}
