CHANDIGARH: After a gap of six years, the traditional Indo-China border trade through Shipki La, a strategic pass at an altitude of 3,930 metres in Himachal Pradesh’s tribal Kinnaur district, will resume from August 1.
The barter-based trade route, located near the Line of Actual Control (LAC), was originally scheduled to reopen on June 1 but was delayed due to pending modalities related to immigration procedures. The trade season will now continue until November 30.
The Kinnaur district administration received 88 applications from traders, of which 53 have been approved by the state home department after verification of antecedents. In the first phase, 15 Indian traders will cross into the Tibet Autonomous Region of China to begin trading.
Under the notified trade agreement, traders can exchange only approved commodities. The import list includes 20 items such as wool, pashmina, sheep skin, yak tails, yak hair, salt, shoes, blankets, quilts, carpets and herbal medicines.
The export list comprises 36 items, including coffee, tea, barley, rice, wheat, flour, dry fruits, tobacco, cigarettes, canned food, spices, watches, utensils, handloom and handicraft products. Livestock trading will not be permitted due to the absence of quarantine facilities.
Traders will transport goods by vehicles up to the India-China border, after which the consignments will be carried nearly two kilometres inside the Tibetan region on mules to a designated trading point where exchanges will take place. Indian traders will have to return to Kinnaur within 72 hours.
Security arrangements at Shipki La will be jointly supervised by the Indo-Tibetan Border Police (ITBP) and Himachal Pradesh Police. The Customs Department has deployed personnel at the Shipki La customs station and issued guidelines on permitted goods. All consignments entering and leaving the country will undergo mandatory inspection.
Revenue, Tribal Development and Horticulture Minister Jagat Singh Negi will attend the reopening ceremony and inaugurate the Chhuppan Trade Mart at Shipki La, which will facilitate customs clearance, trader registration and import-export procedures.
The Indo-China Trade Association of Kinnaur has been pushing for the revival of the route, stating that thousands of residents in border villages such as Namgiya, Chuppan, Nako and Chango depend on the barter trade for their livelihoods.
Association president Hishey Negi said the revival would provide a major economic boost to people living in the remote border region.
The Chhuppan Trade Mart, being developed as a central facility for registration and customs formalities, is expected to serve traders from upper Kinnaur before they cross the border.
Shipki La holds a unique position among India’s border trade routes with China as it continues to operate through the traditional barter system. Unlike trade through Lipulekh Pass in Uttarakhand and Nathu La Pass in Sikkim, where monetary transactions are used, Shipki La relies on exchange of goods.
The route was shut after the 1962 India-China war and reopened in 1992 following a protocol signed between the two countries. It was suspended again in 2020 due to the Covid-19 pandemic.
Trade through Shipki La recorded a volume of Rs 8.59 crore in 2016, rising to Rs 59.21 crore in 2017 before declining to Rs 3.05 crore in 2019 amid geopolitical tensions, including border standoffs.
Last year, the Ministry of External Affairs approved the reopening of Shipki La trade as a confidence-building measure between India and China. The Himachal Pradesh government has also proposed opening the Kailash Mansarovar Yatra route through the pass.
The reopening comes amid efforts to revive controlled economic engagement along the Himalayan border, where traditional trade routes were disrupted following geopolitical changes in the region.