Monday, 15 September 2008

Bhutan : Land compensation multiplied

home 13 September, 2008 - Starting this month, compensation for crops on land acquired by the government will increase by 400 percent for fruit bearing trees and by 300 percent for non-fruit bearing trees.

The government announced the revised compensation rates, which varies for cash crops, fruit trees, and other crops, earlier this week.

Orchard owners, with one-year old apple trees, would be paid Nu 784 per tree under the revised rated, compared with Nu 196 earlier, according to a government press release. For fruit bearing apple trees, the owner will be paid Nu 4,105 a tree, unlike the previous rate where owners were compensated with Nu 821 per tree. A tree is considered fruit bearing in its fifth year.

The revised rate also includes compensation for annual crops like paddy, wheat and chilis. The government will pay about Nu 12,600 to the owner for acquiring an acre of paddy, while for an acre of wheat, about Nu 3,000 will be paid. The owner will be paid about Nu 48,000 for an acre of chilis.

The new rates were a requirement of the revised Land Act, which was endorsed by the 86th National Assembly in 2007. Finance Minister Lyonpo Wangdi Norbu at a press conference on September 5 said that the government would come up with similar revised land compensation rates.

He said that the government is working on the land compensation rates, which would soon be submitted to the cabinet.

By Phuntsho Choden

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