India-Tibet barter trade to resume next month

The annual barter trade between Indian and Tibetan traders, which was suspended during the Covid-19 pandemic in 2019, is set to resume on August 1 through the Lipulekh Pass in Uttarakhand’s Pithoragarh district, officials said on Monday.

Traders, however, said the delayed start of the cross-border exchange of goods will not benefit much as the trade is restricted until October, and Tibetan buyers start losing interest after August.

Indian traders travel to Tibet carrying items such as rock sugar, jaggery, cosmetics, and specific grocery items, and bring back wool, pashmina jackets, shoes and other products.

According to officials, Indian traders have been granted permission to enter the market in Purang (Taklakot), Tibet, and the trade will commence on August 1.

Information received from the Tibetan administration confirms that Indian traders will be permitted to enter Tibet starting August 1, said Ashish Joshi, Sub-Divisional Magistrate and Trade Officer of Dharchula. Around 28 Indian traders had been waiting for several days to receive permission from Chinese officials.

The Tibetan administration had earlier informed the Indian side that the delay in granting permission was due to the time required to prepare shops and residential facilities for Indian traders in Taklakot. Joshi stated that the list of goods to be traded is being sent to the Tibetan administration so that border trade is carried out smoothly.

Traders, however, expressed displeasure over the late start of the business, saying they have already lost one month.

Jeevan Singh Rongkali, President of the India-China Border Trade Association, said the loss of the entire month of July would result in significant financial losses as border trade continues only until October, and interest from Tibetan buyers wanes considerably after August.

“We have lost July, the most important month for business. Now, there is a fear that nearly 40 per cent of the stock will remain unsold by the time the trading season ends,” Rongkali said.

According to him, alongside selling new merchandise this year, traders also wanted to clear out old stock that had been lying in warehouses in Tibet since 2019.

This year, the Dharchula trade office has issued passes for border trade to 113 traders and an equal number of their assistants.

The traditional barter trade stopped following the 1962 India-China war, but the two countries resumed the practice in 1992 until suspending it in 2019 amid the spread of COVID.