India has suspended cross LoC trade between Jammu & Kashmir and Pakistan-Occupied-Kashmir (PoK) with effect from April 19 on grounds that the trade routes were being misused for funnelling illegal weapons, narcotics and fake currency.

“During the ongoing investigations of certain cases by NIA, it has been brought out that a significant number of trading concerns engaged in LoC trade are being operated by persons closely associated with banned terrorist organisations involved in fuelling terrorism/separatism. Investigations have further revealed that some individuals, who have crossed over to Pakistan, and joined militant organisations have opened trading firms in Pakistan. These trading firms are under the control of militant organisations and are engaged in LoC trade,” a press release circulated by the Ministry of Home Affairs said on Wednesday.

The orders for suspending LoC trade have been issued by the Home Ministry.

The LoC trade at Salamabad and Chakkan-da-Bagh in Jammu and Kashmir will be suspended with immediate effect, the release added. Meanwhile, a stricter regulatory and enforcement mechanism is being worked out and will be put in place in consultation with various agencies. The issue of reopening of LoC trade will be revisited thereafter.

LoC trade is meant to facilitate exchange of goods of common use between local populations across the LoC in Jammu & Kashmir and is based on a barter system. It is carried out on a zero duty basis.

Facilitation centres

The trade is allowed through two trade facilitation centres located at Salamabad, Uri, District Baramulla and Chakkan-da-Bagh, District Poonch. The trade takes place four days a week. Reports were received that the LoC trade was being misused on a very large scale.

“It has been revealed that the trade has changed its character to mostly third party trade and products from other regions, including foreign countries, are finding their way through this route,” the release added.

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