Chinese firewall blocking export of in-demand goods at Nathula; U$ keeping trade alive

GANGTOK, 20 July: The fact that the Chinese traders pay in dollars is the only thing that is keeping the Nathula trade alive it seems. The road blockage at 17 Mile on JN Road, the arduous and treacherous ride via Rongli to Nathula, and most of all, the attitude of the Chinese custom officials have made trading quite difficult for the border traders and has brought down the margin of profit drastically, sources inform. On the other hand, the passage of unlisted goods is still making local traders raise their prices, which again, is another factor to consider for traders. 
And then there is the competition factor with the ingress of new traders which has also unsettled the balance. As the pool of those with trade passes increases, so does competitive pricing and has led the traders into a huddle to decide on how to proceed with trade.
Chinese custom officials are not allowing rice to go through, it is being alleged [only basmati rice is officially allowed for export from Sikkim to Tibet]. At the most, a trader is allowed only two sacks of rice, the rest is returned, sources contend.
The same is the case for sugar which, it is actually not even listed as an item allowed for trade over Nathula. Sugar and rice are among the major exports and made for most of the trade the previous season, sources inform.
Rice is very much a listed item of trade, but the Chinese authorities seem to have lost their appetite for it. This, sources inform, had led to a huge discussion among the traders and Chinese custom officials at Nathula; however the only thing the traders got was the Chinese non sequitur. The Chinese made known that rules in India did not apply to them and they were not concerned with what the Indian Government had allowed for the Indian traders. This has much affected the trade and there is not much the Sikkim traders can do even if they had the stomach for it.
Sugar too faces the same Chinese firewall at Nathula. However, sugar is not a listed item so complaints cannot officially be voiced even if substantial quantities are involved. How it still manages to get traded should be obvious.
However, this season, the rate of Sugar has come down by about Rs. 500. Last year it was selling at around Rs. 2,600 for 50 kg, while now the rate is about Rs. 2,200. The new traders are wiling to sell at lower prices. There is no official authority to decide on the rates of items traded through the border, it is for the traders to decide for themselves. This, among other issues, is expected to feature in the meeting that the traders have called and is expected to be held shortly.
The Nathula border trade has also been adversely affected by the blockage of the normal route. Traders who are willing to brave it, are taking the Rongli route which is a 7-hour drive and costs Rs. 7,000 per vehicle per trip. Vehicles crossing the border begin their journey as early as 2 AM from Gangtok.
The margin of profit has come down drastically due to this added expense and as some traders inform, it is only to sustain and keep the trade alive that they are willing to engage in trading despite the long and expensive detour. And there is also the fact that the Chinese pay in dollars. The only thing good that the economic downturn has brought about is that the border traders are benefiting from the runaway exchange rate of the rupee to the dollar. This hugely makes up for the attitude of the Chinese, which cannot be taken for granted anyway.