The Hindu Business Line : Ministry for full trade with Myanmar at Moreh

The Union Government is actively considering a proposal from the Ministry of Commerce to convert border trade with Myanmar at Moreh land custom station in Manipur into full-fledged trade, subject of course to a small negative list.

The Manipur government has already prepared a list of 18 new items, such as bicycle parts and life saving drugs, for exports to Myanmar via Moreh point. Different trade bodies in Moreh have already been demanding that the current limited list of items of trade should be expanded.

Problems galore

Problem of exchange of documents, poor postal facilities on the Myanmar side and inadequate banking systems have hindered full-fledged trade, which has been mostly of the barter variety.

Non-applicability of the ACU (Asian Currency Union) dollar mechanism in Myanmar, because of the sanctions by US government against that country, has prevented emergence of a proper LC system of trade.

It is learnt that RBI was already studying the problem, and may take it up soon with the Myanmar Economic Bank for an acceptable solution.

The ACU dollar account of the Economic Bank with UBI in India still remains frozen, according to a senior UBI official at the border point.

The proposal is now with the Government, which is expected to place it before the Union Cabinet for approval.

Expediting process

Talking to newspersons here recently, Mr Jairam Ramesh, Minister of State for Commerce & Industry, said the State government has been asked to speed up the land acquisition process (some 16.7 acres) for complete modernisation of the Moreh LCS, turning it into an Integrated Customs Check-post with all amenities, including food testing facilities.

Pointing out that informal trade with Myanmar at Moreh was close to Rs 2,000 crore (as per a recent Rites study), against the Rs 10 crore of formal trade, he said an integrated modern LCS will send a clear signal to the Myanmar government that India was keen to expand trade in a big way.

Two other LCS points with Myanmar at Mizoram and Arunachal Pradesh are now dysfunctional.

Myanmar has a 1600-km long border with Myanmar, and Moreh is the only one functioning now.

Rites Study

Rites has just submitted a detailed project study (including a report on expected trade traffic) on how Moreh LCS can be improved to push trade volumes. Border trade with Myanmar via Moreh is now restricted to only 22 items, all being agri produce items such as betel nut, rajma, moong dal, gram, ginger, garlic, wheat flour, cumin-seeds, chillies, agarbatti, bamboo and peas.

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