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Showing posts with label nathu la. Show all posts
Showing posts with label nathu la. Show all posts

Wednesday, July 20, 2011

Border Trade At Nathu La: Five Years After

By Bhim B Subba

It has been five years since the resumption of Nathu La border trade between India and China following a lull of four decades after the Sino-Indian War in 1962, yet neither has there been any mention of it in the print media both at the national and state levels, Sikkim in particular, nor has it been given any attention by the strategic community. Is the Nathu La fanfare over? Is the administration of the day interested in continuing this endeavour or is it just an aberration to boost India-China relations?

Over the past five years, bilateral border trade via Nathu La so far has overwhelmingly benefited traders from both sides of the border. Every year, trade begins from 1-2 May until 30 November, when the pass closes for the winter. This year it was proposed to open on 2 May, but the road blocks caused by severe landslides meant that trade could be resumed only from 16 May. This was a major setback for the traders. It is therefore imperative for road infrastructure to be developed to fully tap the potential of this exercise.


China India Relations
Nathu La, one of the three border trade points between India and China, faces a major hindrance during the monsoons, which play havoc between late April and mid-September. Although the state administered SPWD and the BRO-GREF have collaborated to keep the stretch worthy of transport, this temporary ad hoc fix measure cannot sustain the traffic flow as both trade and the peak tourist season coincide during this time. The double-laning of Jawaharlal Nehru Marg from Gangtok to Nathu La was started in 2007 by the Border Roads Organization (BRO) but has not been completed yet, leading to more chaos during the tourist season. This traffic choke can be eased with proper maintenance of the alternate route bypassing Gangtok from Rangpo-Rorathang-Rongli Road. It is an alternative to the 31/A National Highway to Gangtok from Sevoke in northern West Bengal. But the condition of the road is not all-weather friendly.

The locals in and around Gangtok face undue hardships because a vast majority of taxi-jeeps cater to tourists especially those going to Tsangu Lake, the same route that leads to Nathu La. The diversion of vehicles means that locals are sometimes left stranded, and at other times, are expected to pay more when commuting to and from Gangtok. The author experienced this recently on his visit to Pakyong, a sub-division town, where the only civilian airport in Sikkim is being developed. It is would be prudent for the state government to look into this problem to eases the traffic movement by building better roads and widening/back-cutting the existing road. This can be helpful in easing up traffic up to the lake area.

In addition, the four days of trading in a week leave the traders unhappy. Under the bilateral agreement between India and China, Sikkimese traders can export 29 items to and import 15 items from Tibet Autonomous Region (TAR). Thus, hardly anything from Sikkim is traded. In fact, the non-tradable items are more than the legally specified tradable items. The Sikkim government has repeatedly approached the Centre for a revision of the list of tradable items. Traders from both sides have also been demanding the revision of tradable items, saying that the present items listed in the schedule are obsolete and do not have commercial value.

Bilateral trade has increased from just INR 2 million in 2006 to INR 9.85 million with zero imports in 2010, which shows the vast potential of trade between two countries. This trend must be nurtured by increasing the list of tradable items, developing roads and communication infrastructure and the involvement of more customs officials on the Indian side of the mart. Also, to be more inclusive, the local trading community of Sikkim has to be encouraged as their business representation is much smaller than other business communities in the area. The potential that economic diplomacy holds, if exploited, will bring long-term benefits to people from both sides of the border.

Bhim B Subba
Research Scholar, DEAS, University of Delhi
email: subba.eas@gmail.com

source;Eurasia Review

Tuesday, September 28, 2010

China starts extension of Tibet railway to Nathu La


                                            red:chumbi valley


China starts extension of Tibet railway to Nathu La

China has begun to extend its controversial railway though Tibet with a new link from the provincial capital to the region's second-largest city, state media said Monday.    

Work on the 253km line from Lhasa southward to Xigaze began Sunday and was projected to cost 13.3 billion yuan (RM6.14 billion) by completion in 2014, the China Daily newspaper quoted officials as saying.    

"It will play a vital role in boosting tourism in the south-western part of Tibet and promoting the rational use of resources along the line," the newspaper quoted Liu Zhijun, China's minister of railways, as saying at a ground-breaking ceremony in Lhasa.    

The new single-track line has a designed speed of 120km per hour. About 115km of the route is to pass through tunnels or over bridges, the report said.    

The extension is the first since President Hu Jintao opened the 1,142km, high-altitude Qinghai-Tibet railway, which links Lhasa to China's national rail network, in July 2006.    

Earlier reports said China eventually hopes to build a link from Lhasa to the border with Nepal and construct at least two more branch lines as part of its plans for long-term economic development of Tibet.    

Officials also said they planned to build another line from Lhasa to the border town of Yatung in Chumbi Valley allowing the possibility of rail links between major Indian and Chinese cities via the Nathu La pass.

Incidentally, Yatung in Tibet and Gangtok in India are on the same altitude and hence a direct rail through tunnel link is also a possibility. Also by a slow grading , tunnel can also reach Siliguri too. Thus a direct railway link from Beizing to New Delhi via Nathula Pass can become a reality if everything goes as per plan.

Tuesday, May 4, 2010

Custom officials hit by boulders, no border trade takes place

NIRMAL MANGAR

GANGTOK, May 3: The fifth edition of Nathu La border trade between Indian State of Sikkim and Tibet Autonomous Region of China underwent from today but business could not take place as two Indian Customs officials were injured when a loose boulder crashed into their vehicle at 13th Mile near Kyongsla along the Jawaharlal Nehru Marg.

Havaldar AK Dey sustained leg injuries while inspector Prashant Rasaily sustained injuries in his face. However the injuries were not major.

The custom officials were heading towards the Nathu La border to supervise the border trade when their vehicles were hit by boulders slipping from the road above at 13th mile where road widening works are being done by Border Roads Organization.
“We decided to take the injured officials to Gangtok for treatment as a result, we did not proceeded towards the border for the trade”, said Customs superintendent PT Bhutia to reporters.

The vehicle has also been damaged and the Customs officials have decided to approach their superiors for an alternative arrangement. The officials said that they will be positioned for their duties from tomorrow as usual.

The unfortunate incident meant no business could take as no traders from both sides could cross the border due to non-clearance of Customs procedure.

Several Chinese traders had reached the gate at the international gate at 9 am in the morning returned back to TAR. The traders from Sikkim who were seeking to reach Renquingang trade mart in the TAR side also returned back from the gate.

“We have come with new aspirations and hopes to participate in the border trade”, said Pema Ledya Sandgerpa to reporters.

Officials from State Commerce & Industries department-director Kamal Kafley, deputy secretary Sumita Pradhan, joint secretary NT Bhutia-had represented the State government on the inaugural day.

According to the East District Admistration, around 160 traders had applied for trade licenses to participate in the trade out of which 52 were issued.

“The verification process is going on for the remaining applications and we will issue the same once it gets through the verification process”, District Collector (East) D Anandan.

Thursday, April 22, 2010

NATHU LA TRADE WILL BECOME FULL FLEDGED INTERNATIONAL TRADE FROM NEXT YEAR- SIKKIM CHAMBER HOPEFUL

Nathu La border trade to begin on May 3

by Sarikah Atreya
SOURCE;HINDUBUSINESSLINE

Gangtok, April 19

The fifth season of the Nathu La border trade between Sikkim and Tibet Autonomous Region (TAR) is scheduled to commence on May 3. It will go on till November 30.

An official release said that the trade beginning from May 3 will remain open four days a week - Monday to Thursday - from 7:30 am to 3:30 pm Indian Standard Time.

The release further said that there has been no change in the trade items and the present list remains same, i.e., 29 exportable items from India to TAR and 15 items from TAR to India through the Nathu La border trade.

According to the press release, the traders from Sikkim exported items worth Rs 1.35 crore while the TAR traders could export items worth Rs 2.96 lakh only during the last season.

Since the term border trade is to be construed that the trade is opened for the people of the border area only for the items produced in local area of limited value, the Centre India has fixed the currency value limit to Rs 1 lakh a day a trader from 2007-08, it is informed.

The State Commerce and Industries Department has also advised the DC (East) to issue the trade passes at the earliest to enable the traders to prepare for the border trade.

Till date, a total of 135 local traders have already applied for trade passes to the East District Administration.

Meanwhile, local traders here are hopeful of a good trading season despite non-fulfilment of the demand for revision of trade items.

“Though the list of items have remained same, the trade volume over the years have increased along with the number of traders participating in the border trade,” said local trader Mr Anil Kumar Gupta. He said that the traders are expecting export business over Rs 2 crore this season.

At the same time, traders here have reiterated their demand for the revision of the trade items so that traders from both sides could benefit.

Along with the State Government, both Sikkimese and TAR traders have been asking the Centre to include more feasible and marketable commodities.

According to the bilateral agreement, there are 29 exportable items such as tea, spices and biscuits which are allowed to be exported to TAR by the Sikkim traders while there are only 15 items like wool, goat skins and sheep skins which can be imported from TAR to India through the Nathu La border trade.

The State government and traders of Sikkim and TAR have been contending that these items especially those allowed to be imported from TAR are obsolete and have no market value.

Inclusion of local products

The State Government had been repeatedly demanded for inclusion of local products of Sikkim such as handicrafts and cash crops for the border trade.

Lok Sabha member from Sikkim, Mr P.D. Rai, has said that the Sikkim Government has been pressing ahead with the Centre for expansion of trade items for the Nathu La border trade.

He informed that he will be taking up the matter with the concerned Ministry in the Centre.

“The demand is under advanced stage of consideration and we are hoping that something positive will come out,” Mr Rai said. He also expressed his hopes that at least some amendments in the present list of items will be taken up.

However, traders here were of the view that revision of trade items could take place after the border trade infrastructure is completed in the Indian side.

Presently, the Border Road Organisation (BRO) is widening the 51 km Jawaharlal Nehru Marg connecting Gangtok with the Nathu La border. The Jawaharlal Nehru Marg double laning project had started from 2007 and is estimated to cost around Rs 780 crore.

Sikkim Chamber of Commerce (SCC) President, Mr S.K. Sarda, said that whenever the Centre is approached over the demand, the officials inform that the file is in process.

Mr Sarda said that while the SCC remains hopeful for revision of the trade items soon, traders would be benefiting more from the next season when the Nathu La border trade completes five years.

According to the bilateral agreement, the border trade is supposed to be declared as an international trade which means import and export of more items can be done after paying custom duty like in Mumbai and Kolkata ports, he said.

Tuesday, April 20, 2010

Nathu La border trade-V from May 3

No revision of trade items, traders optimistic of good season


GANGTOK, April 19: The fifth season of the Nathu La border trade between Sikkim and Tibet Autonomous Region (TAR) is scheduled to commence from May 3 till November 30 for this year.

An IPR release informs that the trade beginning from May 3 will remain open four days a week-Monday to Thursday-from 7:30 am to 3:30 pm as per Indian time and from 10 am to 6 pm as per Chinese time.

The release further informs that there has been no change in the trade items and the present list remains same ie 29 exportable items from India to TAR and 15 items from TAR to India through the Nathu La border trade.

As per the IPR release, the traders from Sikkim exported items worth Rs. 135 lakhs while the TAR traders could export items worth Rs. 2.96 lakhs only during the last season.

Since the term border trade is to be construed that the trade is opened for the people of the border area only for the items produced in local area of limited value, the Government of India has fixed the currency value limited to Rs 1 lakh per day per trader from 2007-08, it is informed.

The State Commerce & Industries department has also advised the DC (East) to issue the trade passes at the earliest to enable the traders to prepare for the border trade.

Till today, a total of 135 local traders have already applied for trade passes to the East District Administration.

Meanwhile, local traders here have expressed their hopes of a good trading season despite non-fulfillment of the demand for revision of trade items.
“Though the list of items have remained same, the trade volume over the years have increased along with the number of traders participating in the border trade”, said local trader Anil Kumar Gupta. He added that the traders are expecting export business more than Rs. 2 crores this season.

At the same time, traders here have reiterated their demand for the revision of the trade items so that traders from both sides could benefit.
Along with the State government, both Sikkimese and TAR traders have been demanding the Centre to revise the list by including more feasible and marketable commodities.

As per the bilateral agreement, there are 29 exportable items like tea, spices and biscuits which are allowed to be exported to TAR by the Sikkim traders while there are only 15 items like wool, goat skins and sheep skins which can be imported from TAR to India through the Nathu La border trade.

The State government and traders of Sikkim and TAR had been contending that these items especially those allowed to be imported from TAR are obsolete and have no market value. The State government had been repeatedly demanded for inclusion of local products of Sikkim like handicrafts and cash crops for the border trade.
It may be recalled that Lok Sabha member from Sikkim, PD Rai had told reporters on Saturday before leaving for New Delhi that the State government has been pressing ahead with the Centre for expansion of trade items for the Nathu La border trade. He informed that he will be taking up the matter with the concerned Ministry in the Centre.

“The demand is under advanced stage of consideration and we are hoping that something positive will come out”, Rai had said. He also expressed his hopes that at least some amendments in the present list of items will be taken up.
However, traders here were of the view that revision of trade items could take place after the border trade infrastructure is completed in the Indian side.
Presently, the Border Road Organization (BRO) is widening the 51 kms Jawaharlal Nehru Marg connecting Gangtok with the Nathu La border. The Jawaharlal Nehru Marg double laning project had started from 2007 and is estimated to cost around Rs. 780 crores.

Sikkim Chamber of Commerce (SCC) president SK Sarda said that whenever the Centre is approached over the demand, the officials inform that the file is in process.
Sarda said that while the SCC remains hopeful for revision of the trade items soon, traders would be benefiting more from the next season when the Nathu La border trade completes five years. As per the bilateral agreement, the border trade is supposed to be declared as an international trade which means import and export of more items can be done after paying custom duty like in Mumbai and Kolkata ports, he said.

Tuesday, September 1, 2009

DIAL CHINA VIA NATHU-LA

Dial China via Nathu-la

OUR CORRESPONDENT-Telegraph

Gangtok, Aug. 31: Reliance Communications and China Telecom have established the first direct terrestrial telecommunication link between Chinese and domestic markets through Nathu-la in Sikkim.

The link was provided on Friday when the two telecom companies completed the laying of over 200km-long cable that passes through the inhospitable terrain of the 14,200ft high mountain pass. Bilateral trade between India and China is conducted through Nathu-la.

The cable, linking Yadong in China with Siliguri in India, will provide direct connectivity between all major Indian and Chinese locations as well as expanding high-bandwidth coverage to more rural and urban areas in both the countries, sources in Reliance Communications said.

Prior to this link, the only connectivity option between the two countries was undersea cable routes through Hong Kong or Singapore. However, the undersea networks were vulnerable to disruption from typhoons and earthquakes, the sources said.

Both international traders and consumers in the region will benefit from the link, which is expected to improve Internet connectivity and voice clarity.

Punit Garg, the president of Reliance Communications, said: “India and China represent the largest growing economies in the world and the current global economic environment requires ever increasing high-bandwidth, converged applications to be run between two domestic markets.”

Describing the cable link as a “landmark”, Han YiHu, the managing director of China Telecom, said: “This represents many years of planning and hard work. We are very pleased with the increased dedicated bandwidth availability, connection speed and security this cable will provide to Chinese based enterprises and consumers.”

Countries like Nepal, Bhutan, Sri Lanka and even Pakistan and Bangladesh will also benefit in the long term.

The Sikkim Chamber of Commerce has congratulated the telecom companies for the feat. “This is another milestone in improving the relationship between the two Asian giants,” said S.K. Sarda, its president.

Monday, June 22, 2009

NATHU LA DISCUSSED AT DELHI MEET BY HCM SIKKIM

20 June 2009
New Delhi

Dr Pawan Chamling-Chief Minister of Sikkim met the Union Minister for Parliamentary Affairs, Shri P.K. Bansal on 19th June 2009. After the exchange of pleasantries, they discussed issues of development in the State.

Dr Chamling apprised Minister about the Nathu la trade deadlock.

The Union Minister agreed that the Nathula trade list should be revised so that commercially viable items could be incorporated for the present day trade transaction.

The Chief Minister apprised the Union Minister that the State Government has already approached the Central Government regarding the same.

Monday, June 15, 2009

CHINA BY ROAD THRU NATHU LA PASS

FROM TRAVELBIZMONITOR.COM

According to a UNI report, Union Minister of State for Tourism, Sultan Ahmed yesterday lashed out at the West Bengal government for its ”utter failure” to enhance the tourism sector and make the state more attractive for tourists. “’The state government failed to provide even basic facilities to the tourists, including road connectivity, proper guidance, hospitality, rest rooms and sanitation,” Ahmed told reporters at a tourism fair ‘Chalo Jaai TTE 2009′ at Netaji Indoor Stadium in Kolkata. “The ruling Left Front is also responsible for under development of tourist spots like Tarapith, Dooars, Darjeeling and Digha,” he maintained.

The Minister expressed his displeasure at the state government’s failure to participate in the tourism fair. “I will ask my officers to find out why the West Bengal government did not participate in the tourism fair where several other states and countries like China and Malaysia took part. If China can come to India to sell their tourism potential, why should we lag behind in marketing our products in China,” he questioned. Ahmed assured that he would try to explore the feasibility of the Nathula Pass to China by road.

Friday, June 5, 2009

NATHU LA BORDER TRADE GRINDS TO A HALT

Nathu-la border trade grinds to a halt
(TibetanReview.net, Jun 04, 2009) —

No trade had taken place so far between the Indian state of Sikkim and the Dromo (Yatung) County of Tibet across the Nathu-la pass since it opened for business this year, the fourth, on May 4, reported the UNI news service Jun 2.

Traders from both the sides complain that the number of items they are allowed to trade with each other under the terms of the Sino-India deal for the opening of the Nathu-la pass were obsolete, the report said. The deal, signed in 2006 allows Indians to export only 29 items can be exported to TAR from the Indian side while the Chinese traders can export only 15 items as per the prescribed scheduled items allowed for the border trade.Most of these items listed in the schedule are obsolete and do not have commercial value, a fact which both the Chinese and Sikkimese traders have highlighted in the past three years demanding that these be increased, the report said.

No traders from Dromo had crossed the mountainous border of 14,400 feet to reach Sherathang trade mart on the Sikkim side to do business since May 4, the opening day of the fourth Nathu La border trade, the report said. Sikkimese traders too hacstopped crossing the border and going to the Renquinngang (Tibetan: Rinchengang) trade mart located on the Tibetan side, the report said.

The development has effectively brought the border trade into a standstill and the PROBLEM lies in the list of trade items, the report added.

Monday, June 1, 2009

SIKKIM: Sikkim govt considering official decree to ‘Himalayan Viagra’ collection
Caterpillar Fungus
GANGTOK, May 31: Sikkim is seriously considering following the footsteps of its Himalayan neighbours, Nepal and Bhutan, by legalizing the collection of the medicinal herb, Cordyceps Sinensis from the forest areas.
For the uninformed, Cordyceps Sinensis is popular known as ‘caterpillar fungus’, widely known in the Himalayan belt as ‘Yarcha-Gombuk’ and its connoisseurs do not tire to sing the aphrodisiac properties of this ‘Himalayan Viagra’.
With one kg of raw caterpillar fungus fetching as much as 2000 US dollars, Cordyceps Sinensis had reportedly funded the successful Maoist battle against the monarchy in Nepal. Now the collection and trading of this medicinal herb is legal in Nepal.
Cordyceps Sinensis is also widely found in the highlands of Bhutan which made the collection and trading of the herb legal only in 2004. Only communities living in and around the high lands are allowed to collect it and sell it to traders through government organized auctions.
Bhutan sells this product in 3 grades, A, B and C at prices ranging from US $ 2685 to US $ 2485. Collection of the herb is strictly regulated and is done on rotation basis.
Nestled between Nepal, Bhutan and another giant producer of ‘Yarcha-Gombuk’ China, the Himalayan State of Sikkim also has fair quantities of this medicinal herb in its high altitude areas of North, East and West districts.
Now belatedly realizing that its bio revenue source has been lying untapped, the State government is now chewing over a proposal from the State forest department to legalize collection and trading of Cordyceps Sinensis abundantly stored in its highlands.
Sources from the State forest department inform that the department has sent a draft proposal for legalizing collection of Cordyceps Sinensis in the State. Collection of medicinal plants from the wild is prohibited in Sikkim.
The proposal is now being vetted by the State law department and after proper scrutiny, a government notification will be issued in due course of time, it is informed.
Apart from the enormous revenue potential for locals and government, the bid to legalize collection of this medicinal herb could have been prompted by an incident of not so recent past where around 17 kgs of ‘Yarcha-Gombuk’ had been seized from two smugglers by the forest officials.
On July last year, the forest officials seized the consignment derived from the highlands of the State at Singtam meant for delivery outside the State. The incident had created a furore in the State and demands for bringing this clandestine business above-board had been made leading to this latest bid of the State forest department.
Though the various points in the proposal are still under scrutiny, it is learnt that the department is keen to legalize collection of this medicinal herb in a controlled manner in the high altitude areas of Sikkim.
Cordyceps sinensis, a rare combination of a caterpillar and a fungus is found in the altitudes above 4,500 m in the Himalayas. In Sikkim, it is found in areas like Green Lake, Dzongri, Thamjey, Nathu La Pass, Doman Valley, Tholung Pass and other areas above 8,000 ft. All these areas are under the forest department.
Though no resource survey of this medicinal herb has been conducted in Sikkim, the forest department says that it knows where the herb is found in Sikkim.
One of the silent features of the proposal is that only Joint Forest Management Committees (JFMCs) registered with the forest department will be allowed to collect the caterpillar fungus. The JFMC will have to be from that area where the herb is found.
Collection from sanctuaries will not be allowed. A 25-75 percentage share has been proposed by the department which is being screened by the law department. The JFMCs will get 75 percent of the total Cordyceps sinensis they have collected while the remaining 25 percent will go to the State forest department. The department is also keen to market the forest produce through authorized dealers.
Experts on medicinal plants here have welcomed the proposal of the department. They also said that foreign technology is readily available to artificially produce the medicinal herb in Sikkim.
The experts have also endorsed the rationale behind the proposal. “People are already collecting Cordyceps sinensis and other forest produce from the forest. By legalizing the collection will mean that the present clandestine operations will come above-board leading to control and regulation. The locals will also benefit by earning money which will mean that they will have a stake in protecting the biodiversity. Right now they don’t have any stakes”, said one expert.
( source: sikkim express)

Monday, May 11, 2009

MATHU LA TRADE IN LOW RESPONSE

Nathu La trade draws low response in its fourth season
Nathula, Sat, 09 May 2009 ANI

Nathula (Sikkim), May 9 (ANI): The fourth season of trade between Sikkim and the Tibet Autonomous Region (TAR) through the Nathu La Pass of Sikkim has reflected disappointment among Indian traders who still haven't received travel passes since border trade was opened on May 4.
The travel passes of around 62 Sikkimese traders are still pending with the East district administration which is the prime agency to issue all such passes for the border trade causing a major disappointment.

Anil Gupta, General Secretary of Indo-China Border trade association of Sikkim said, " the low-key inauguration ceremony of May 4 and the delay of travel passes will create a unharmonious situation between the two countries and will refrain Indian traders from visiting the Tibetian side from next year."With the delay of travel passes a bitter international relation will be created affecting the trade. The identity of Sikkim will also be spoiled in the national scenario. The travel passes shouldn't have been delayed as it was declared officially that the international border trade would begin and every thing should have been well organized. Now because our traders can't go there creating a lot of disappointment on their side," he added.
Border trade between the two countries is also sluggish due to restrictions in tradable items. India can import 15 items from China including silk, yak pelts and horses, and export 29 goods that include textiles, tea, rice, vegetables and herbs.
Business people from both sides of the border are seeking a broadening of the list of items traded through the pass.
Kesang Diki, Tibet Autonomous Region (TAR) commerce official was unsatisfied with the facilities given to them on the Indian side and with the unfavourable weather causing further threat to their goods.
"When the fellow Indian traders come to our place to trade we provide all the basic necessities like carrying the good and picking from the bus stand and keeping inside the stall. We don't let them face problems but out here we face the trouble of carrying our own good to the mart. I also feel that a revamped list of items should be of prior concern if you want a good trade between India and China," she said.
In July 2006, the two Asian giants, re-opened trade across the Nathu La Pass as part of a broader rapprochement. The move marked the first direct trade link between the nuclear-armed neighbours since a bitter border war in 1962.
Under the agreement, trade takes place four days a week - Monday to Thursday - beginning May each year and lasting until November 30 when snow makes the area impassable.
Although two-way trade was slow in the first three seasons, about 1,900 Chinese traders crossed the border separated by a rusty barbed wire marker to the bazaar of Sherathang, five kilometers below the pass on the Indian side. About 1,200 Indian traders headed to the Rinchengang interim market in Tibet on the Chinese side, 16 km from the border, during the first three seasons. (ANI)

Tuesday, May 5, 2009

NATHU LA TRADE - FOURTH SEASON- INAUGURATED

GANGTOK:4 May 2009:
( Source: The Economic Times)

The fourth year of Indo-China peripheral border trade kicked off on Monday with a ceremony at Sherathang trade mart near Nathula border and Rinchengong trade mart on the Chinese side. Traders on both sides greeted each other and offered khada (silk scarf) and foodstuff.

The state department of commerce and industry officials with director Ujjal Gurung attended the ceremony. Indo-Tibet Border Police (ITBP) personnel handled the entire show at the checkpost and trade mart centre with immigration and customs department of the government of India. President of the Sikkim Chamber of Commerce S.K. Sarda and others were present too. Trade between the two countries will remain open till November.

It is reported that trade at Nathula border has not shown the expected progress as the merchandise listed by both the governments in 1990s has become obsolete now and do not command market demand these days. The other two border trade points in Himachal and Uttarakhand also have been experiencing the same problem. Only one item, silk yarn, is doing well in Sikkim.

In fact, reports pouring in suggest that these three border trade points have now become dens for international smugglers. With the connivance of officials of central agencies, responsible for supervising border trade, unlisted items are entering our country in huge quantities.

When legal trade in Sikkim last year amounted to Rs 96 lakh, smuggled Chinese electronic items saw a hefty business of Rs 15 crore at this border. Government of India has taken some action by suspending and transferring guilty officials who were assigned to monitor the border trade. This has not improved matters so far.

According to reports of central intelligence wings, smuggled Chinese mobile sets have created havoc in the Indian market. It is reported that in the recent Mumbai terrorist attack, Chinese mobiles without any code numbers were found to be used for blasting. The ministry of telecom recently has directed all concerned to ensure that no service providers should issue any SIM card without obtaining the IMEI (international mobile equipment identity) number of the handset. It is observed that for quite sometime, bordering countries are going out of their way to intercept our mobile network. The department of telecom is now taking steps to check that.
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Friday, May 1, 2009

INDO-CHINA TRADE THRU NATHULA TO RESUME ON 4TH MAY 2009L

Gangtok:1 may 2009: Bilateral trade between Asian giants India and China will resume through the Nathu La pass in Sikkim on the famed Silk Route Friday, with the government promising traders a new mart near the border, officials said.
Nathu La is one of the three trading border posts between India and China, the other two being Shipkila in Himachal Pradesh and Lipulekh in Uttarakhand.
While the list of items allowed for the border trade will remain unchanged this season, traders can expect a new trade mart at the border, work on which has already been started, said Sikkim Industries Secretary M.G. Kiran.
"The central government has promised us Rs.8.5 crore ($1.7 million) to construct the mart. Of this, we have already received Rs.1 crore ($202,600)," Kiran said.
He also said the trade mart was coming up at Sherthang near Nathu La pass.
An eight-room hotel is also being built in the area primarily for Indian traders. The state industries authorities are also building a new car park and more shops as part of the mart.
The department is also planning to construct cargo space in view of the expected enhanced volume of trade this year. A check post is being built at the Nathu La border, where immigration and customs checks will be under one roof.
Kiran added that the construction work would be supervised and managed by the roads and bridges department of the state government.
The sluggish border trade between the two countries is due to restrictions in tradable items - India can import 15 items from China including silk, yak pelts and horses, and export 29 goods that include textiles, tea, rice, vegetables and herbs.
However, as the government has now provided most favoured nation (MFN) status to trade through the Nathu La route, the trade volume is expected to increase this season, officials said.
The two Asian giants in July 2006 reopened trade across the 15,000-feet (4,545-metre) Nathu La pass, 52 km east of Sikkim's capital Gangtok, as part of a broader rapprochement.
The move marked the first direct trade link between the nuclear-armed neighbours since a bitter border war in 1962.
Under an agreement reached between India and China, trade takes place four days a week - Monday to Thursday - beginning May each year and lasting until Nov 30, when snow closes down the pass.
Bilateral trade in 2006 through Nathu La saw business worth about Rs.20 lakh ($40,200), with Indian traders doing business worth about Rs.11 lakh ($22,250). In 2007, the volume of trade was to the tune of Rs.26 lakh ($52,100).
Although two-way trade was slow in the first three seasons, last year about 1,900 Chinese traders crossed the border separated by a rusty barbed wire marker to the bazaar of Sherathang, 5 km below the pass on the Indian side. The total trade stood at Rs.96 lakh ($194,400) in 2008.
About 1,200 Indian traders headed to the Renqinggang interim market in Tibet on the Chinese side, 16 km from the border, during the first three seasons. (IANS)

Sunday, November 16, 2008

NATHU LA TRADE THIS SEASON

Gangtok, Nov. 14: Chinese trade through Nathu-la continues to falter compared to business on the Indian side. But it is not the global economic meltdown that has hit the neighbouring country.

Rather, it is the “obsolete” items, which China can export, that have made the trade a one-sided affair.

The volume of trade from May 19 to October 30 stood at nearly Rs 59 lakh as against Rs 34.6 lakh in the same period last year. The Sikkimese traders exported items worth Rs 57.6 lakh, while the imports from China were Rs 1.35 lakh. Edible items topped the list of articles sent to China in 2008, the third year since the reopening of the trade route located at 14,400ft above sealevel.

Official records of the trade through Nathu-la available with the Sikkim commerce and industries department reveal that the businessmen from the state have a monopoly over their counterparts in the Tibetan Autonomous Region (TAR) in China. While the Indian exporters can send 29 items, including tea, flour, vegetable oil, cigarettes and liquor, China can sell 15 items permitted by India.

Anil Kumar Gupta,General Secretary, India-China Traders’ Association, said the Chinese could have done better if silk was permitted to be exported by them. “The list of items that the Chinese can export includes obsolete articles like goat’s hair, yak’s tail, China clay and horses. Our exports could have touched the crore mark had we been allowed to sell Basmati rice.”

Quoting official figures, Gupta said this year, over a thousand traders from Sikkim had visited the Renquingang trade mart in TAR, 16km from the border, while double the number of their Chinese counterparts came to the Sherathang post near Nathu-la.

“If more Indian exporters had gone across the border, the volume of trade would have certainly gone up,” he said.

An official of the Sikkim commerce department said the state government had made several attempts to persuade the Centre to revise the trade list but did not get any response. “We had prepared the list and sent it to the Union commerce ministry,” the official said.

The trade through Nathu-la will close on November 30. The traders from both the countries will meet at Sherathang on that day and review the business conducted through out the year.