Trade through Nathu La to increase

In a move that is likely to boost border trade between India and China, the commerce ministry is considering to expand the number of items traded through Nathu La in Sikkim.

Currently 15 items are permitted to be exported through Nathu La while 20 items are allowed to be imported from China.

The expanded list is expected to include significantly higher number of items as the Sikkim government wants at least 100 products in the export list.

It has been taking interest in increasing the list of items, currently being traded through Nathu La.

"We had submitted a petition to the Centre, asking them to increase the list, and to include at least 100 items in the export list," said Saman Prasad Subba, director of industry and commerce, government of Sikkim.

"We are currently reviewing the number of items being traded through Nathu La. An announcement is likely to be made in another month," said a commerce ministry official.

The review by the commerce ministry comes in the backdrop of displeasure expressed by the Chinese government officials on the low volume and value of trade through the strategic border post, located at a height of 1,44,000 feet.

Exports during May and June this year stood at around Rs 6.5 lakh (Rs 0.65 million) while import was a meagre Rs 32,000, which mostly consisted of yak tail. It is believed that trade is sluggish because of little demand for the items that India allows to be traded in.

The import list mostly comprises animal and animal products like yak tail, yak hair, sheep, horses and goat, while the export list included cycles, tea, vegetables and liquor.

The border post was opened for trade between the two countries on July 6, last year after remaining shut for more than 44 years.

The pass remains closed during winter and opens from May to November. Indian traders sell their goods in Renqingang, on the Chinese side, 16 km from the border, while Chinese merchants sell their produce in Sherathang, in Sikkim, around 5 km from Nathu La.