To answer these questions, the Competition & Consumer Affairs Authority (CCAA) conducted a
Cross-Border Retail Competitiveness Study, combining a retail price survey of 91 products, a
consumer survey of 312 Phuentsholing residents, and discussions with 20 local retailers.
The findings are compelling. Nearly 95% of residents shop in Jaigaon for at least some of their
purchases, and 90% cite lower prices as the primary reason. Fresh vegetables were found to be,
on average, 155% more expensive in Phuentsholing. Yet the study also found that consumer
electronics are 6.3% cheaper locally, demonstrating that Bhutanese retailers can compete when
market conditions are favourable.
More importantly, the study goes beyond price comparisons to identify the structural barriers that
undermine retail competitiveness – including taxation, supply chains, informal trade, access to
distributors, and the cost of doing business – and presents practical, evidence-based
recommendations to strengthen local businesses and improve consumer welfare.
We invite everyone to explore the report and join the conversation on building a more
competitive retail sector for Bhutan.<\/p>\n\n\n\n