Cash ban affects trade with Bhutan

NEW DELHI: The demonetisation drive has adversely impacted India’s border trade with Bhutan, Delhi’s closest neighbour in South Asia.

Farmers and exporters in Bhutan’s Phuentsholing town bordering India have been badly hit following the currency ban. Cardamom and potato supply from Bhutan to India has dropped drastically as Indian traders are struggling to make payments in cash, informed sources said.

Indian currency is used as a legal tender in Nepal and Bhutan. Phuentsholing is the main land border entry point between India and Bhutan.

Sufficient cash is not available for the export-oriented businesses in Phuentsholing market, sources said. Most of the transactions on the border are cash-based.