The Hindu Business Line : One month on, Nathula border trade disappointing

Despite the efforts of the Sikkim Government in making it happen, actual trading through Nathula has failed to set the cash registers ringing. Sources reveal that during the past month, while exports were worth about Rs 3 lakh, imports have been a miserable zero.

The dismal start can be attributed to the items listed for trading between India and China through Nathula, which is a problem for traders on both sides. The items — listed for trade, which is still based on the exchange that used to take place in the fifties and sixties, — are practically redundant in today's market.

The list needs immediate revision and expansion. Some of the items listed for import from China include yak tail, goat skin, sheep skin, goats, sheep, horses, salt and butter.

With little or no business, Chinese traders are hardly seen at the Sherathang mart on the Indian side. The experience of Indian traders is no better. On an average five traders have been crossing over to the Donqingang trade mart in the Tibet Autonomous Region (TAR) on a daily basis.

"There is absolutely nothing we can bring over to India from Donqingang. Although we have done some business, it is the Chinese traders who are at a complete loss," one Indian trader said.

Earlier, on May 2, the Centre had raised the daily ceiling on trade, thus meeting one of the major demands of the local traders. The Union Commerce Ministry had lifted the restriction on the trade limit of Rs 25,000 per day per trader to Rs 1 lakh.

The Centre has also agreed to issue Import-Export code required for the traders without Permanent Account Number (PAN) based on VAT/Sales Tax registration issued by the Commercial Taxes Department of the Sikkim Government (PAN is not issued to Sikkim residents as Central direct taxes are not extended to the State).

Delegation

With a four-member Chinese delegation expected to arrive in Sikkim on June 3, some of the major problems faced by traders from both countries are expected to come up for discussion.

The Chinese delegation is scheduled to arrive at the Nathula Post on June 4 and visit Sherathang, 6 km ahead of Nathula on the JN Road.

Later, on the same day, the delegation will cross over and visit Donqingang before returning the next day.

They are also likely to inspect the trade infrastructure available on both sides of the border.

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