Uncertainty hangs over India’s trade with China through the Nathu La (pass) in Sikkim that opened in 2006 after being closed for 44 years, traders and a minister in Sikkim said.
Sikkim-based international traders said the Covid-19 pandemic and latent tension between the two counties at various points along the international border, including Naku La in northern Sikkim, may make it impossible to resume trading. trade this year even if international flights and movement of people between the two nations are allowed.
Cross-border trading takes place four days a week from May 1 to November 30 of each year. Only Sikkim merchants can participate. They have to obtain a business license every year before May 1.
No changes were made to the licensing policy this year. Some merchants obtained them before the pandemic began in March and the borders were sealed.
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In 2018, goods worth around Rs 40 million were exported, while imports from China were worth around Rs 3.5 million, traders said.
Located at 1450 feet, Nathu La in East Sikkim is about 55 km from Gangtok, the state capital. The pass reopened on July 6, 2006. It was closed after the 1962 India-China War.
In Sikkim, many of those involved in international trade feel that mutual trust between people on both sides of the border is lost following the series of recent incidents of border fighting between neighboring forces.
“It will be difficult to revive that confidence in the current scenario,” said Anil Kumar Gupta, an exporter.
Naku La, in northern Sikkim, is one of the international border points that witnessed a clash between Indian and Chinese troops in May this year.
Kailash Agarwal, Secretary General of the Sikkim Chamber of Commerce, said: “The closure of border trade will not adversely affect India as Sikkim traders do not import commodities. It is China that will be affected by the import of food. ”
Rice, cookies, candy, canned food, items made of copper, etc. they are exported to China, while India imports blankets, clothing, jackets and hosiery, Gupta said.
“The volume of trade has steadily increased over the years. In 2006, the annual volume was only Rs 7 lakh. Today, the number of people who have trade passes has exceeded 600, “said Gupta, who exports food to China.
Pema Wangdi Bhutia, President of the Nathu La Border Trade Association, said: “This year, Indian businessmen initially decided not to trade through Nathu La because the pandemic started in China. It is not feasible to start trading for such a short time, even if bilateral relations normalize ”.
BS Panth, Sikkim Minister of Tourism, Trade and Commerce, said: “Trade through Nathu La is not possible this year. The future course of action depends on the decision made by the Indian government. ”
Former Prime Minister Atal Bihari Vajpayee and his Chinese counterpart signed an agreement to reopen the Nathu La trade route during the former’s tour of China in June 2003.
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