The Hindu Business Line : Export ban on primary articles eased to enable supplies to Bhutan

New Delhi, May 19 As a goodwill gesture, India has eased export ban on certain primary articles so as to ensure their supplies to Bhutan, which has been described as the “closest and most friendly neighbour”.

The Commerce Ministry has now allowed export of 1,750 tonnes of edible oil, 5,000 tonnes of non-basmati rice and 1,000 tonnes of pulses to Bhutan. This move came close on the heels of the Prime Minister, Dr Manmohan Singh’s recent two-day visit to Bhutan.

As an anti-inflationary measure, the Indian Government had placed export ban on pulses, edible oil except coconut oil and non-basmati rice in the recent past.

The Prime Minister had, during his two-day visit, addressed the first ever joint session of Bhutan Parliament and assured the “youngest democracy” that it could continue to count on India. He had also announced economic assistance to develop Bhutan’s hydro-power sector and build a rail line.

Bilateral trade during April-October 2007 stood at $162.63 million, representing a 70.40 per cent increase from $95.44 million in the same period of the previous year.

India and Bhutan had signed a free trade agreement (FTA) in July 2006, which will be in force for a period of 10 years with effect from July 29, 2006. Under this agreement, India also provides transit facilities to landlocked Bhutan to facilitate its trade with third countries and movement of goods from one part of Bhutan to another through Indian territory. The requirements of Bhutan are mainly met by imports from India.

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