Chinese officials remain defiant to Indian traders’ requests; No more truancy of Indian traders to be tolerated

GANGTOK, 29 July: The Chinese trade officials have made it clear that they will have nothing do with the rates at which goods are sold by traders, either way, who are engaged in the Nathula border trade and more over, have laid down the rules of trade for the Indian traders in as much as the items and the quantity of items that they can bring over.
While there is no cap on the quantity of a particular item that can be traded on any day, the Chinese customs officials as well as the Trade officer at the trade mart on the Tibetan side at Tongchengaang have made clear that they will not allow more than 2 sacks of any particular good. The haughty attitude of the Chinese officials led the Indian traders into a huddle once again and a meeting was held today at Gangtok to come up with a response.
Sources inform that a contingent of 8 Indian traders crossed over to the trade mart at Tongchenqaang on the Chinese side earlier this week and had a meeting with the Trade officer there on the issue of prices and the confiscation of goods being brought into Tibet. “Excess” Indian goods being sold over the border at the Chinese trade mart have been confiscated and locked into a godown at the mart. This has led to losses to the Indian traders taking the goods over for export.
The Chinese trade officer is reported to have chastised the Indian contingent saying that the Indians were always ready to take advantage when the Chinese did not monitor their items and allowed them to trade freely (including in unlisted items). However now they would not permit it, especially the trade of unlisted items. Subsequently it was made clear that not more than 2 sacks of any item would be permitted through and any excess would be confiscated.  During earlier seasons Chinese officials used to only send back the excess goods but this time they have started confiscating them in a clear message that truancy would not be tolerated any longer.
The Indian traders had also wanted to seek intervention of the Chinese officials to regulate the prices which were falling drastically leading to losses to the Indian traders. However in this regard the Chinese customs as well as the Trade Officer washed their hands. It was mad clear to the Indian traders that prices and rates of goods and items were up to the traders of both sides to decide upon and not to be regulated by any official machinery. Earlier it had been reported that the introduction of new traders into the trade had led to the downfall in prices, especially in Rice and Sugar, major items of trade. Furthermore going via Rongli, the longer route due to the closure of the JN Road, had also led to an increase in transportation costs with a single journey up to the border costing as much as Rs.7000.
The trade had been suspended the past week in order to enable the Indian traders to engage the Chinese officials in dialogue over items of trade as well as prices.