A young farmer transplants rice in the rain outside a village in the Valley of Paro in the central highlands of Bhutan. Bhutan is famous for its "red rice", grown only on terraces in the mountain valleys. - - Forestry and Agriculture Development. Bhutan, a small, landlocked, mountainous Himalayan Asian country between China and India, was all but closed to the outside world until about ten years ago. Its 1.2 million inhabitants are mostly subsistence farmers and poor rural folk who live mainly off the products of the vast forests. Thimphu, the capital, has but 20 000 inhabitants. Yet, Bhutan is rich in natural resources and could become a prosperous nation. The U.N. Food and Agriculture Organization is helping the Kingdom to develop its resources and, in 1985, had over 20 projects there providing aid and training to farmers and livestock owners, establishing modern forest industries, training extension workers, improving food security and commercial food processing and restocking the many inland lakes and rivers with hardier fish species.