Despite unfavorable environment, Border Trade crosses Rs. 7 crore mark

TRADING SEASON ENDS OVER NATHULA
IMPORTS RETURN WITH A BANG – CHINESE GOODS WORTH Rs. 1 Cr COME IN
GANGTOK, 29 Nov: The Nathula Border Trade closed today for the seventh season bringing down the curtains to one of most unstable trading seasons, which was also the most productive thus far. Unpredictability in fact marked this trading season with GoI surprising everyone by first enhancing the list of items allowed to be imported over Nathula and then throwing a wet blanket over the announcement by not clarifying the Customs Duty status of these goods. And then there were border personnel here fighting traders and them arresting one on charges of espionage.
Many days were lost to boycotts, sometimes by traders from Sikkim sometimes by their counterparts from Tibetan Autonomous Region and then more days were lost to snapped roads. Despite all of this, year 2012 saw the highest trade turnover thus far, the consolidated accounts crossing the Rs. 7 crore mark. Even imports, which had remained officially zero for two years, returned with a bang this year and broke the Rs. 1 crore mark. It is obvious that trade will only pick up from here on.
Trading closed at Sherathang Trade Mart amidst the usual bonhomie and fanfare which accompanies the last day of trading both Indian and Chinese traders closed their accounts and said farewell to each other; this was marked with small picnic groups and finally khadas for each other.
After 6 seasons of an import drought the total worth of imports from China through Nathula for 2012 was over Rs.1 crore. The exact import value computed till 27 November from the start of the season comes to Rs. 1,00,24,982.
This figure includes imports of Chinese goods at the Sherathang trade mart as well as those imports brought in by Indian traders from Rinchengang, the trade mart on the Tibetan side of the border. Direct imports brought into Sherathang has been calculated at Rs. 67,10,732 and imports brought in by Indian traders from Rinchengang is at Rs. 33,14,250 as of 27 November.
The handsome showing on the imports side of the Nathula Border Trade ledger is thanks to the enhancement in the list of goods allowed for import over Nathula. This was done in May earlier this year, and after some initial confusion over Customs Duty, on 14 June 2012, the Government of India clarified that even these new goods were exempt from Customs Duty. The five items added to the list allowed for import are: readymade garments, shoes, quilts/ blankets, carpets and local herbal medicine.
As for exports, this season saw over Rs. 6 crore worth of goods being exported to China with the figure till 27 November coming to Rs. 6,06,87,685. The sales made at Rinchengang by Indian traders was calculated at Rs. 1,37,94,795 while sales recorded at Sherathang trade mart itself by Indian traders to their Chinese counterparts was worth Rs. 4,68,92,890.
In fact August 2012 was the first month when the Nathula trade recorded official imports of listed Chinese goods at Rs. 1.8 lakh. A total of 284 Chinese traders crossed over this season compared to around 260 Indian traders crossing over to Rinchengaang.
As for today, there were as many as 44 trucks from Tibet which crossed over to Sherathang and about 20 vehicles from India carrying Indian traders to the other side. In fact the last week or so has been witnessing a large number of Chinese traders crossing over to engage in trade. On average there were around 150 to 180 Chinese traders coming over every trading compared to 50 – 60 Indian traders crossing over.
This is largely due to the fact that many traders have to now close their accounts with each other or wait for the next 6 months; the other reason for the large number of Chinese traders coming over is also due to the fact that trade was shut for the whole of the second week of November. Traders could be seen huddling together with sheets of paper calculating their transactions for close of accounts.
There was lots of trade as well, even on the last day. And that is a good sign. For the past 6 seasons there was nothing much to trade and Nathula seemed a dead end as far as border trade and its growth was concerned. After this season, which also saw an expansion in the list of items of trade, we can expect much more transactions next year on as well as expansion of trade itself given the kind of response both Indian and Chinese traders have displayed this year despite several causes for tension.