CHANDIGARH: As the Ministry of External Affairs (MEA) has given political clearance to the Himachal Pradesh government, Indo–China border trade through the Shipki La strategic pass in Kinnaur district will resume from June next year after a gap of six years.
The barter-based trade will operate via the Land Customs Station (LCS) at Namgia–Shipki La near the Line of Actual Control (LAC). A trade mart is also likely to be set up near the pass to facilitate traders and tourists.
Imports and exports from this border point will be restricted to items notified by the Union government. Currently, 20 items are permitted for import, including wool, pashmina, sheep skin, yak tails, yak hair, salt, shoes, blankets, quilts, carpets and herbal medicines.
A total of 36 items are allowed for export, including coffee, tea, barley, rice, wheat, flour, dry fruits, tobacco, cigarettes, canned food, spices, watches, shoes, utensils, and handloom and handicraft items.
Sources said trader registration will be carried out by the Pooh tehsildar-cum-trade officer. Applicants will need to submit identity proof, residential certificate, past trade records (if any), and passport-size photographs.
Locals from 14 border villages, including Namgia, Chuppan, Nako, Pooh and Chango, are economically dependent on this cross-border barter trade conducted through Shipki La. Trade passes are issued by the Union Ministry of Commerce to facilitate the activity.
Kinnaur Indo–China Trade Association president Hishey Negi told the TNIE that the association has sought a minimum of 150 trade passes. “We have requested renewal of import and export codes issued by the Director General of Foreign Trade (DGFT) and demanded a single-window system for security clearances. We have also urged the district administration to organise skill-building workshops so traders can understand market potential, demand and supply, and how to sell items like borax, szaibelyite and china clay imported from China,” he said.
Negi added that reopening the trade route would benefit Kinnauri youth by providing alternative income opportunities. He also stressed the need to make the existing 7–8 km trade track motorable. “Currently, goods are transported on mules and horses, taking two to three hours. With proper road connectivity, trade volumes will increase,” he said, adding that the administration has been urged to help set up kiosks at Shipki La.
Sources said a review meeting of concerned departments and stakeholders was held on Monday by Kinnaur Deputy Commissioner Amit Sharma to assess logistical preparedness. Issues discussed included road connectivity in the Shipki La–Namgia area, trader registration, security arrangements to be jointly handled by the Indo-Tibetan Border Police (ITBP) and Himachal Pradesh Police, setting up a customs office, medical and emergency services, and inter-departmental coordination.
A senior officer said political clearance has been received from the MEA and efforts are underway to set up a trade mart near the pass by April. “Tourism in the region has increased manifold, and tourists will be able to purchase items from the mart,” he said, adding that trade is carried out annually between June and November 30.
Supporting the demand for a trade mart, Negi said, “There is a trade mart at the Nathu La border point, and we have been urging authorities to set up a similar facility here so tourists can buy imported items and trade gets a boost.”
In 2019, total imports through this border point were valued at Rs 1.71 crore, while exports stood at Rs 1.34 crore. Trade peaked in 2015, with exports worth Rs 5.01 crore and imports Rs 4.36 crore. In 2016, exports were Rs 4.03 crore and imports Rs 4.55 crore. Trade declined sharply in 2017 to Rs 22.45 lakh in exports and Rs 36.82 lakh in imports, before improving in 2018 with exports of Rs 1.14 crore and imports of Rs 1.38 crore. When trade began in 1994, export value was Rs 11.09 lakh and import value Rs 14.93 lakh.
Traders, mostly from Nako, Chuppan, Chango and Namgia, typically travel to China in September and October. In 2015, 71 Indian traders went to China via this route, followed by 75 in 2016, 34 in 2017, 37 in 2018 and 45 in 2019. The highest number was recorded in 1994, when 90 traders crossed through this border point.
The border trade between India and China through Shipki La in Himachal Pradesh, Nathu La in Sikkim and Lipulekh Pass in Uttarakhand came to a halt in 2020 after the Chinese army violated bilateral protocols in eastern Ladakh.