India-China trade unlikely for fifth consecutive year

Pratibha Chauhan

Shimla, June 13

The India-China trade along the Shipki La in Kinnaur is unlikely to take place for the fifth consecutive year despite the traders being keen that the trade across the border is resumed.

The trade between India and China across Shipkila Pass has not resumed after the Covid pandemic. The traders who had gone into China with their goods in 2019 have pending dues to be collected from the Chinese traders under the barter system.

It was on April 18, 2024 that Hishey Negi, president of the Kinnaur Indo-China Trade Association, had written to the General Manager, Industries Department, to resume the trade. He, on behalf of the traders, had requested that arrangements may be made so that trade can be resumed after a gap of four years.

“The traders have been waiting for the last four years to collect goods which are part of the pending barter dues but till now there is no response from the authorities concerned,” lamented Negi. He said during Covid one could understand the halting of the trade but now there was no justification in not resuming trade with China.

“We are eagerly awaiting the resumption of trade as I have pending dues of 2019 which I thought I would collect but since then despite our repeated requests, trade has not been resumed,” said Jeevan Lal, a trader from Namgiya.

Trade is held along the Shipkila Pass from June 1 to November 30 after the local administration and the Industries Department issue permits to traders from the nearby villages. The traders make three to four trips with goods during this period mainly from the border villages of Namgiya, Chuppan, Nako and Chango. The goods brought in from China are in great demand, especially during the Lavi fair at Rampur.

Himachal shares a 240-km boundary with China — 160 kms in Kinnaur and 80 kms in Lahaul Spiti. The trade between the two neighbours after being resumed in 1992 has gradually increased in volume from Rs 8.59 crore in 2016 to Rs 59.21 crore in 2017 barring occasional dip due to standoff between the two nations like the Doklam issue.

A total of 36 items, including spices, carpets and tea, figure on the export list while there are 20 items that can be imported. Goods that can be traded are from time to time added on the demand of the traders and locals. However, the ban on livestock trade has proved to be the biggest hurdle in the quantum jump in volume of trade. There is huge demand for Chihu goat from Tibet on the India side.