Trade ceiling lifted at Nathu-la

Gangtok, Sikkim: The Union commerce ministry has decided to increase the daily ceiling on trade through Nathu-la from Rs 25,000 to Rs 1 lakh.

The decision, which was prompted by a directive from the Prime Minister’s Office, was made known to traders through a notice issued by the directorate general of foreign trade yesterday. The news was confirmed by the Sikkim commerce and industries director, S.P. Subba, who admitted to receiving the official intimation.

Trade between India and China through Nathu-la was resumed in June 2006, but allowed only a limited basket of items both for exports and imports.

The raising of the ceiling has been a long-standing demand of traders on this route and the news brought cheer to businessmen who resumed trading through the pass after it opened for this year on Tuesday.

The demand had been placed by traders before Union minister of state for commerce Jairam Ramesh, during his visit to Sikkim last year. Traders feel that Ramesh had conveyed their demands to the Prime Minister’s Office. The decision to increase the ceiling comes days after a directive from the Centre to extend the trading season by three months. The season will now be from May 1 to November 30 instead of the prevalent schedule of June 1 to September 30.

“We are very grateful to the state and Union governments for increasing the trade ceiling. Because of the limit, business was hampered and hence trade along the route did not show the expected amount of growth,” Anil Gupta, the general secretary of the Indo-China Traders’ Association told The Telegraph, today. The Sikkim-based association is now hopeful that the other demands would also be met soon.

Source: The Telegraph