Border Trade records first imports in 6 years at Rs. 1.8 lakh

TRADERS’ MEETING INCONCLUSIVE OVER PRICE WAR
GANGTOK, 22 July: There is a raging price war among Sikkim traders engaged in the Nathula Border Trade which is bringing down the price of goods being sold across to traders from Tibet. Involved in this price war are the Sikkim traders who, it seems, are a divided lot. A tussle has begun between old traders [who have been trading over the past seasons] and the new lot who have received trade passes this season.
This resulted in a meeting being called by the Traders’ Association in Gangtok on 20 July to come to some sort of understanding. Despite such hindrances this is the first season in 6 years which saw imports of Chinese goods into Sikkim and serves as an encouragement to traders of both sides.
With a view to carve a niche for themselves the new traders have reportedly been selling goods across the border at prices lower than the rates established by the traders thus far. This has led to the lowering of prices of main items of trade thus affecting the margin of profit and forcing the older traders also to bring down their ‘higher’ pricing.
Thus the price of a sack of sugar – about 50 kg – has come down from the “normal” [for Nathula thus far] of Rs. 2,600 to Rs. 2,200 and it is informed that new traders are also willing to sell it for Rs. 2,000. The actual price [in Sikkim] of 50 kg of sugar is just Rs. 1,700. Similarly, the other major item of trade, rice, a 50 kg sack of which was initially being sold across the border at Rs. 2,000 has seen a “fall” in rates as well. Sources inform that the new set of traders are even willing to sell it at below Rs. 1,500 with some even willing to sell it at its actual price of Rs. 1,110.
Not to be left out, the Chinese traders have also added their own dimension to this jamboree over prices. Seeing the price war among the traders here, it is informed that they are now declining from buying in bulk and refraining from buying some items altogether with the motive of inducing a further fall in prices.
The traders’ association meeting of 20 July among traders proved inconclusive as new traders could not be convinced to increase their rates. There was talk of refraining from engaging in trade for a week in order to get prices up again but this also was not finally decided upon. In fact the old traders were at a loss to understand how items could be sold at such low rates. Adding another twist some items are being returned by the Chinese traders as these are not accompanied by their dates of manufacture and expiry.
While the dilemma of the old traders continues, what comes as tremendous news for the government is the fact that for the first time in 5 seasons of trade the border trade has recorded imports. The month of June 2012 witnessed the first official imports since 2007 when Chinese traders stopped bringing in listed items as they had no market. This season, with a shallow increase in the items of trade, import figures have been recorded just over Rs. 1.8 lakh for the month of June. On the other hand, exports were a whopping Rs. 1.91 crore.
The main items of import are blankets, quilts, carpets and china clay the largest item of import for June being blankets which saw 200 pieces worth over Rs. 1,00,000 being imported.