GANGTOK, 30 July 2012: Sikkim traders are all set to resume trade with Tibetan Autonomous Region over the Nathula again this week whether it be via Rongli or through the JN Road, which it is informed, is open for light vehicles. However, this time the traders’ association has set up a committee to monitor the prices and seek to sort out the differences and disputes regarding different pricing of goods by traders engaged in border trade.
For the purpose of monitoring prices the traders’ association has come out with a rate chart of different goods and this chart is to be adhered to strictly by traders engaging in border trade. Anyone found selling goods at cheaper prices is to be ‘fined’.
However this remains a very controversial issue as there is no official mechanism or authority to fix selling rates of items to be sold at the border trade marts. So it is an open question as to with what authority this committee can monitor the rates fixed by the traders’ association and also as to how many of the active traders are willing to adhere to this.
This was decided upon by the association after the contingent of Indian traders returned from the trade mart on the Chinese side with the news that the Chinese authority were unwilling to cooperate – whether it be on the matter of fixing prices or on the matter of allowing more quantities of goods through and stop the confiscation of excess Indian goods.
Following the adamant attitude of the Chinese customs officials as well as the Chinese Trade Officer the traders’ association, sources inform, has also advised the Indian traders to refrain from exporting unlisted goods. The traders’ association has also called for all traders to cooperate and engage unitedly in trade with the Chinese for healthy association and business as well.
Cooperation from all traders would see some profits for the Indian traders who have been managing to keep the trade alive in spite of incurring huge transport costs resulting from the closure of JN Road and resorting to the Rongli route to Nathula.
As for the rates fixed by the Association, among the main items of trade, Sugar has been fixed at Rs. 2,400 per bag of 50 kg and Rs. 1,100 for 20 kgs; Vegetable oil has been fixed at Rs. 1,200 per jar; Rice at Rs. 1,350 for 25 kgs; the much in demand Aarti Rice has been fixed at Rs. 1,550 per 25 kgs and Parle G biscuits at Rs. 450 per carton.
Besides, the Traders’ Association has also decided to donate money for the reconstruction of the Shiva Mandir which has been dismantled /damaged due to the road widening works at JN Road. All members of the Association have been asked to contribute a like amount for the reconstruction of the mandir.
Source:SikkimNOW
TRADERS’ MEETING INCONCLUSIVE OVER PRICE WAR
GANGTOK, 22 July: There is a raging price war among Sikkim traders engaged in the Nathula Border Trade which is bringing down the price of goods being sold across to traders from Tibet. Involved in this price war are the Sikkim traders who, it seems, are a divided lot. A tussle has begun between old traders [who have been trading over the past seasons] and the new lot who have received trade passes this season.
This resulted in a meeting being called by the Traders’ Association in Gangtok on 20 July to come to some sort of understanding. Despite such hindrances this is the first season in 6 years which saw imports of Chinese goods into Sikkim and serves as an encouragement to traders of both sides.
With a view to carve a niche for themselves the new traders have reportedly been selling goods across the border at prices lower than the rates established by the traders thus far. This has led to the lowering of prices of main items of trade thus affecting the margin of profit and forcing the older traders also to bring down their ‘higher’ pricing.
Thus the price of a sack of sugar – about 50 kg – has come down from the “normal” [for Nathula thus far] of Rs. 2,600 to Rs. 2,200 and it is informed that new traders are also willing to sell it for Rs. 2,000. The actual price [in Sikkim] of 50 kg of sugar is just Rs. 1,700. Similarly, the other major item of trade, rice, a 50 kg sack of which was initially being sold across the border at Rs. 2,000 has seen a “fall” in rates as well. Sources inform that the new set of traders are even willing to sell it at below Rs. 1,500 with some even willing to sell it at its actual price of Rs. 1,110.
Not to be left out, the Chinese traders have also added their own dimension to this jamboree over prices. Seeing the price war among the traders here, it is informed that they are now declining from buying in bulk and refraining from buying some items altogether with the motive of inducing a further fall in prices.
The traders’ association meeting of 20 July among traders proved inconclusive as new traders could not be convinced to increase their rates. There was talk of refraining from engaging in trade for a week in order to get prices up again but this also was not finally decided upon. In fact the old traders were at a loss to understand how items could be sold at such low rates. Adding another twist some items are being returned by the Chinese traders as these are not accompanied by their dates of manufacture and expiry.
While the dilemma of the old traders continues, what comes as tremendous news for the government is the fact that for the first time in 5 seasons of trade the border trade has recorded imports. The month of June 2012 witnessed the first official imports since 2007 when Chinese traders stopped bringing in listed items as they had no market. This season, with a shallow increase in the items of trade, import figures have been recorded just over Rs. 1.8 lakh for the month of June. On the other hand, exports were a whopping Rs. 1.91 crore.
The main items of import are blankets, quilts, carpets and china clay the largest item of import for June being blankets which saw 200 pieces worth over Rs. 1,00,000 being imported. Source:SikkimNow
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