Strategy for Distribution of Commodities to Retail Shops in the Country

STRATEGY FOR DISTRIBUTION OF COMMODITIES TO RETAIL SHOPS IN THE COUNTRY

1. Background

In the wake of Covid19 outbreak in the world and lockdown in India, Bhutan had to close the entry and exit points in the border. While the Royal Government is facilitating the supply of essential items in coordination with the Government of India, market flow might be disrupted throughout the country due to supply chain disruption. If the situation continues and supply of essential goods diminished, retailers may be challenged to continue their business impacting their living and livelihood. In order to ensure that the market operates as usual and supply chain continues, irrespective of whatever may be the situation hereinafter, the Ministry of Economic Affairs hereby places a generic strategy to guide concerned agencies.

2. Flow diagram for supply chain a.

3. Explanation of operation modality

3.1. There is an identified wholesale distributor and an FCB store for each Dzongkhag, primarily responsible to retailer shops under the Dzongkhag for continuous supply. Wholesalers and FCB will ensure continuous supply of commodities to all retailers.

3.2. Wherever the Wholesalers do not have depot of their own and wishes to store for easy distribution, Dzongkhag Administration will facilitate with a space/store.

3.3. All wholesalers are encouraged to maintain running stocks for 6 months ensuring seamless supply and distribution to retailers.

3.4. Wholesalers have the responsibility of passing the credit-line benefits to retailers. Mutual arrangement on how to operate the business in terms of demand and distribution will be vested on the parties.

3.5. This strategy attempts to reach supplies to all Dzongkhags through retailers linked with wholesaler and FCB. The Dzongkhags in coordination with Regional FCB and MoEA offices will ensure seamless function of market structure.

3.6. It is also recommended to maintain Farm shops’ (Sanam Tshongkhang) supplies and operation by Food Corporation of Bhutan (FCB) in consultation with Dzongkhags/Gewogs.

3.7. The transportation of commodities between retailers and wholesaler (FCB) be worked out within themselves, and preferably, wholesaler facilitate with a store at a nearest point possible or a dedicated transport line.

3.8. The Dzongkhags assigned to wholesaler are not exhaustive meaning these are their primary responsibilities for this situation and can maintain supplying to their routine retailers as well.

3.9. In case of restriction in vehicle movement, respective Dzongkhags, in collaboration with other stakeholders (like RSTA), retailers and wholesalers may identify vehicles to ferry goods including but not limited to, government vehicles.

3.10. In case of emergency or should stricter restrictions apply in future, respective Dasho Dzongdas could take a call depending on the situation regarding supply, distribution, and reach to far-flung Chiwogs/villages.

3.11. The success of this strategy will depend upon the coordination in implementing this, between RTIOs, Regional FCB, and Dzongkhag focal officers. MoEA encourages and urges all responsible individuals to be proactive and innovative.

2 4. Assigned distribution network for wholesalers

Above illustration explained for clarity (Wholesaler could continue supplies to their routine customer(retailers) in those Dzongkhags not assigned but Dzongkhags assigned are their primary responsibility)

Address (HQs and Dzongkhags aassigned # Name of the Dealers Contact Person Mobile No. Branch Offices) (primary)

Phuntsholing (HQ) Phuntsholing, Paro, M/S Damchen Punakha 1 Mr. Sonam Tobgay 16551952 Wangduephodrang, Thimphu, Agencies Thimphu Punakha, Trongsa Gelephu Mongar ,Tashigang, Lhuntse, Tashi Wangyel Phuntsholing (HQ) 2 Mr. Tashi Wangyel 17661876 Phuntsholing, Bumthang, Tshongkhang Mongar Wangdue M/s Tamshing 3 Phuntsholing Mr. Pema Namgyel 17469087 Chhukha, Samtse, Wangdue Enterprise M/s Dugar Grocery Mr. Shri Chand Sarpang, Tsirang, Dagana, 4 Gelephu 17115403 Shop Dugar Zhemgang, Trongsa M/s Gelephu Grocery Mr. Manoj Kumar Tsirang, Dagana, Zhemgang, 5 Gelephu 17111511 Shop Jain Sarpang Chhukha, Haa, Samtse, 6 M/s My Mart Thimphu Mr. Thinley Dorji 17117560 Thimphu, Wangdue, Punakha, Gasa, Paro

3 M/s Damber Kumari Mr. Indra Bahadur 7 Lobesa, Punakha 17995138 Punakha, Wangdue & Trongsa Shop Sarki

Mr. Sonam 17164511/ Thimphu, Haa, Wangdue, 8 M/s Gahsel Store Thimphu Tsheing/Ms. Kencho 77482833 Punakha, Gasa Zam Thimphu Samdrup Jongkhar, Paro Trashigang, Trashiyangtse, 77190048/ Tashi Commercial Wangdue Phodrang Lhuentse, Mongar, 9 Mr. Dargo 77251607/ Corporation Pemagatshel (their routine Gelephu 77300003 retail shops could remain open Samdrup Jongkhar in addition) Phuentsholing (HQ) Phuentsholing Thimphu, Punakha, M/s Sherza Ventures 10 Gelephu Ms. Pema Choden 17127022 Phuentsholing, Haa, Gelephu, Limited Thimphu (HQ) Zhemgang Sarpang, Tsirang, Dagana, 11 M/s Big Way Pvt. Ltd. Gelephu Mr. Pem Tshewang 17979379 Zhemgang Thimphu Thimphu, Paro, Chhukha, Mr. Birkha Bahadur 12 M/s 8 Eleven 17114949 Samtse, Punakha, Wangdue, Gurung Phuentsholing Trongsa, Bumthang Samdrup Jongkhar S/jongkhar, Mongar, Lhuntse, Pemagatshel, T/Yangtse & M/s UT Trading Phuentsholing (HQ) 13 Mr. Narad Giri 17771231 Tashigang (their routine retail (Zimdra) Thimphu shops culd remian open in addition) Mr. Dasarath Sarpang, Dagana, Tsirang, 14 M/s DK Traders Gelephu 17125251 Karariya Trongsa, Bumthang Thimphu 15 M/s Paro Canteen Mr. Wangdi 17610796 Thimphu, Paro, Haa Paro (HQ) Samdrup Jongkhar Trashiyangtse, Pemagatshel M/s Jimmy 16 Nganglam Mr. Kinley 77102225 including Nanglam, Commercial Trashiyangtse (HQ) Samdrupjongkhar

Details of FCB outlets

Contact Sl.No FCB Outlets and Stores Number Sl.No FCB Outlets and Stores Contact Number

1 Phuentsholing Bulk 16 Paro Depot

2 Thimphu Bulk 17 Pling Wholesale Depot

3 Gelephu Bulk 18 Rangjung Depot

4 Samdrup Jongkhar Bulk 19 Samtse Depot

5 Bumthang Depot 20 Sarpang Depot

6 Dagapela Depot 21 Trashigang Depot

7 Daifam Depot 22 Trongsa Depot

8 Damphu Depot 23 Wamrong Depot

9 Gorgaon Depot 24 Wangdue Depot

10 Haa Depot 25 Paro retail

11 Khangma Depot 26 Samdrup Jongkhar retail

12 Khuruthang Depot 27 Thimphu retail changjiji

13 Mongar Depot 28 Trashiyangtse retail

14 Nangkhor Depot 29 Trongsa retail

15 Nganglam Depot

5. Worst case scenario – Partial or Total Lockdown

5.1 The above described strategy is for normal flow of market in which case supply chain remains intact and shops remain in the link encouraging normal market structure to continue (starting immediate).

5.2 In case of partial lockdown, Dzongkhags are already intimated on possibility of keeping few essential shops open besides in those bigger cities recognizing home delivery services network and distribution.

5.3 In case of total lockdown Thromdes/Dzongkhags and stakeholders may take a call to make essential items available to each community and locality depending on the ground realities and situations or their preparedness plan.

------final Draft………………………………………………………5/04/2020