Nathula reopens in restricted fashion

NEW DELHI: The historic re-opening of the Nathula pass on Wednesday for border trade between India and China — signalling a thaw in bilateral relations — would initially benefit just people of Sikkim and businesses registered in the border state.

However, other states need not despair. According to government sources, other states too would be allowed to trade through Nathula once a stable trading environment got established between the two countries.

The list of tradable items, which is restricted to just 28 from India and 15 from China, too, would get expanded in the future. The government, however, does not have a specific time-frame for adding more items to the trade basket.

West Bengal has already expressed its interest in trading with China through Nathula pass. Chief minister Buddhadeb Bhattacharya had indicated to the commerce ministry that since West Bengal was close to Nathula, it should have a key role in trade access to the mountain pass.

A study commissioned by the Sikkim government points out that if unrestricted trade is allowed through Nathulla, volumes could touch Rs 206 crore by ‘07, Rs 353 crore by ‘10 and Rs 574 crore by ‘20.

However, unrestricted trade remains a thing for the future, as both China and India need some settling down time since the pass has been opened after a gap of 44 years. “Right now, the political implications of the move are greater than the economic implications. By agreeing to trade through Nathula, the Chinese government has officially recognised Sikkim for the first time,” an official said.

The list of items allowed by the Indian government for exports include agricultural implements, blankets, copper products, clothes, textiles, cycles, coffee, tea, barley, rice, flour, dry fruit, dry and fresh vegetables, vegetable oil, gur and misri, tobacco, snuff, cigarettes, canned food, agro chemical, local herbs, dyes, spices, watches, shoes, kerosene oil, stationery, utensils and wheat.

The Chinese side would be exporting wool, silk, goat cashmere (Pasham), goat skins, sheep skins, yak tails, goats, sheep, yak hair, horses, salt, borax, Szaibelyita, China clay and butter.

Initially only 60 trucks and 100 traders will be allowed a day from both sides and trading will be open for eight hours.