Sunday, March 11, 2012


 TRADE BETWEEN INDIA-CHINA
 THRU  NATHU LA  PASS :   THEN     &      NOW

 S.K.SARDA
(written on 6.7.2006)

 During the visit of Prime Minister Shri Jawaharlal
 Nehru in 1953 to Sikkim, a delegation of traders from
 Sikkim had a meet  under the leadership of Shri
 Motilal Lakhotia , the then President of Sikkim
 Chamber of Commerce.They urged him to  persuade
 Tibetian Government to permit opening of shops by
 Sikkim traders in Yatung .After a few days, permission
 was given and more than 200 shops came up in a couple
 of months which is just 30 kms from Nathula.

 Shri Motilal Lakhotia, Shri Khyaliram Singhi, Shri
 Prayagchand Sarda, Chaudhary Kor Singh, Shri Chandra
 Kiran, Mundhra,Thiranis & Agarwals families were one
 of the oldest veterans in Nathula trade operations
 during the 1954-61 period . During those days Yak
 tail, Kasturi, Silver dollars, wool were the major
 commodities to be imported from Tibet. The export
 mainly consisted of food items, cloth, CGI
 sheets,petrol, cycles and Geep-Willys and Cheverolet
 trucks in completely dismantled condition.

 Cycle was a major export  item ,with  lacs of them
 exported those days. Animal driven vehicle sets were
 in good demand those days in Tibet. Rolex and Omega
 watches used to be exported in weights of 10KG packs.

 An interesting feature of the trade those days was
 that Willys Jeeps and Cheverolet trucks came to
 Gangtok by road from India and then they were
 dismantled and taken by collies to Yatung ,on the
 other side of the border, and again those vehicles
 were reassembled and put on road for further journey.
 The payments were made in gold or in Chinese silver
 dollars. The business was roaring. Yatung and Phari
 towns were bristling with the visit of traders from
 Sikkim and Kalimpong.

 Traders   those days had taken great pains and Sikkim
 Chamber of Commerce today joins the Nation in saluting
 those great heroes who discovered the potential and
 laid the foundation of  today's  global trade between
 the  two super powers through the silk route via
 Nathula in Sikkim

 The trade continued till 1962. With the breakdown of
 Indo China relations in 1962 the business in Yatung
 finally ceased and all traders had to leave under
 24hrs Quit Tibet notice leaving behind shops with
 inventories. They all returned to Sikkim by 25.May
 1962.

 And for the next 44 years Nathula trade route remained
 closed.

 In the year 1994, Dr Pawan Chamling, Chief Minister of
 Sikkim initiated the need for reopening of  the
 Nathula Trade route and  he urged upon the Central
 Government to start negotiation with the Chinese
 counterparts.

 Similarly, the Industries & Commerce Dept of Govt of
 Sikkim under the leadership of Shri Karma Gyatso rose
 to built the Sherathang Mart in time bound period. The
 role of other departments like Power, PWD, PHE ,BSNL,
 IT must be appreciated who worked day and night for
 completing the project in time bound frame.

 The positive response of the Union Government and
 several round of talks held with Chinese counterparts
 finally brought this historic day- 6th July 2006 when
 the two great civilizations will reestablish the
 historical-cultural-commercial linkage through this
 shortest and most viable land route between China &
 India.

 About 100 traders from China and  100 traders from
 India will  interact on 6th July 2006 when they will
 enquire as well as see the products, their prices,
 quality and assess market demand in their respective
 countries, and decide upon the terms of trade.

 Though the initial list of items to be exported from
 Indian side will be restricted to 29 products, we will
 be able to import 15 items listed in 1994
 notification.

 The items to be imported into Tibet are of daily use
 and will find good market in the Chumbi Valley and
 South East Tibet. The long-term trade will depend on
 our competitive prices, quality and terms of business.
 Besides, integrity will play an important role.

 It has been informed that the trade will take place in
 US $ currency and importers will be provided foreign
 exchange  by  State Bank of India office at
 Sherethang. However,SBI,Gangtok branch will be dealing
 with larger foreign exchange requirements.

 The exporter will have to issue Bill of Export in
 quadruplicate. Similalrly for the import of items, the
 importer has to issue at Indian Customs Bill of Entry
 in quadruplicate.  For export/import of food items,
 the samples drawn will have to be approved by CFL,
 Calcutta and only after its approval  the stock will
 move from Sherathang to the other side of the border
 i.e.,Renquinggang and vice versa. For animals and
 plants, Quarantine requirements will have to be
 fulfilled before they could be exported.Animal
 Husbandary dept has already set up a Lab for this
 purpose at Sherathang.

 These things are not difficult to comply with and with
 the passage of time ,traders will gain experience
 which will enable them to carry the Export/Import
 trade in a smooth fashion.

 A important milestone will be achieved when freight
 train will be started in  the 1142 KM long railway
 line commencing from Golmud city in Quinhai in
 mainland China to Lhasa .

 Then the products of the mainland China will be
 available for export to India through this Land
 route.The products list will be  widened in due course
 of time by the customs department of both countries.

 The recent decision of the Union Cabinet to finance
 the widening of the 600 KMs Indo- China Border in the
 next five years at a cost of 600 crores will smoothen
 the infrastructural problems for speedy and bulky
 transportation of goods to Tibet and from Tibet from
 India.

 An immense economic, social. historical & political
 benefits will accrue to both  the nations due to
 reopening of the trade pass..

 Already entrepreneurs have started identifying
 products for which production facility could be set up
 in Sikkim or in Chumbi Valley. Vanaspati Units, Flour
 milling industry, fruit & vegetable cold storage
 plants, liquor manufacturing facilities, noodle
 manufacturing units, biscuit plants will be viable to
 be set up in Sikkim to meet the requirements of Tibet
 region.

 Due to closure of Nathula trade route since 1960 all
 the import/export business between India and Tibet is
 taking place through Khasa border in Nepal since the
 last 46 years. In fact most of the traders of
 Kalimpong  are in Nepal doing roaring business of
 export and import.

 Khasa about 120 Kms from Kathmandu have big
 warehouses, where goods from Tibet as well as mainland
 China comes for export to India through Nepal .

 With the opening of Nathula trade route their will be
 shift of  the business  from  Khasa bordering Nepal to
 Nathu-la.

 To sum up, a win win situation opens up for all the
 positive minded people of this region.

 Let us draw inspiration and rejinuvate the Old Silk
 route.

 ( Shri S K Sarda was then President of Sikkim Chamber of
 Commerce.)



NATHU LA- AFTER 6th JULY 2006

By S K Sarda*

The attention of the whole world was focused on the
reopening of the Nathu la pass - the pass for trade
between India & China- the two powerful Asian Giants .
And all eyes, be them of the Kings, Presidents, Prime
Ministers , politicians and their parties world wide
were focused on the 6th of July 2006 on Nathu La, for
the event that was going to change the history.

The two powerful giants are coming together. The cold
war is now history and we are in war of trade. Here no
more artillery power shall win. It is the
competitiveness, quality and devotion of the trade and
industry and commerce that will bring success and then
only we can win .

And  finally that historic day arrived- 6th July 2006.
 The world rejoiced that now peace shall prevail and
Asia will lead the torch of peace the world over. The
world will thank the great heroes who had worked hard
for that golden day .

Now Nathu la has been opened for border trade it will
finally culminate in the International trade.  Five
years down the line, ships at Kolkata and Chittagong
Ports will take load of goods arrived from mainland
China through the Tibetean  plateau, Nathula and then
thru the Gangetic Delta for onward shipment in the
Indian Ocean.

The rail link from  Gomud to Lhasa  is now being
extended to Chumbi Valley which will  make the
traveling time from mainland China to Nathula to a
week..

The spiritual Hindu & Buddhist devotees of the Indian
sub continent will get a chance to have a glimpse of
Lake Mansarovar and Mt Kailas, once the route opens
for Tourism in 2011. Lacs of  devotees will travel
thru Sikkim to get Moksha at the abode of Shiva at
Mansarovar. The present tourist flow of 3 lacs per
year to Sikkim will treble  by 2011 leading to a new
set of economic activity and enterprises benefiting
the local populace of Sikkim.

Tibet provides a beauty of its own. A cold desert on a
plateau with scanty rains and an average height of
10,000 feet and rocky mountains and massive water
bodies provides freshness to tourists visiting this
place.

The trade thru Nathu la pass has started , though in a
small scale, but with the passage of time this will
get transformed into a massive operation. The
infrastructure development plan for the next 4 years
will bring an excellent two lane strong road between
Siliguri and Nathu La to match the finishing touches
being given by the Chinese on their side by providing
rail and road link upto Chumbi.

The entrepreneurs who remain active thru this
difficult period of trial and error will ultimately
reap the rich benefits. The route to success in this
trade is thru hardwork, competitiveness and quality
and it cannot be otherwise. The youth of Sikkim who
constitute more than 50% of the population need to
understand this and make their lifestyle accordingly
and thereby win the battle of trade and tourism. Let
us respect the value of Labour and the economy of this
 Mountain State will shine for generations to come.

The present handicaps for a sustainable border trade
will be solved out in due course. The availability of
dollars from the banks for trade will have to be
lifted from $ 500 per trader to the requirements of
the trade. The IEC code should be available to
Sikkimese traders without asking for PAN. The
Extension counter of Central Food laboratory is
required to be set up at Sherathang and so an office
of CITES. The list of items which were listed for
border trade in 1992 for Shipkila and Gunzi land
customs stations in UP and Himchal have been copied
for the 2006 border trade for Nathula land custom
station. Import of Horses, Goats, Sheeps from Tibet is
now part of history and so the other items in the
import list except silk, borax and wool. This list
needs to be revised, expanded and modernized to suit
the need of the time to make trade through Nathu La
vibrant and viable.  Items which come to the
subcontinent from sea ports should be allowed to be
imported through this land route also. If imports thru
sea port cannot damage our economy, what more damage
can land route do.

The  plying of mini buses and mini trucks between
Gangtok and Rinchingang four days a week for four
months in a year can at best be organized by the State
only.The earlier they start plying, the better because
then even the smallest entrepreneur can participate in
the border trade. And these small entrepreneurs will
become the big traders of the future.

It is a great news that Sherathang will host a 100 bed
hotel and an l32 KVA power line will be extended to
Nathu La from Lower Lagyap.. As times passes, the
tradeline will be extended upto Yatung on the Chinese
side and Rangpo on the Indian Side. An underground
tunnel from Chumbi Valley to Singtam can also be
dreamt of which will make it  an all weather  route.
The modern technology can handle it..

The skill development year will go a long way in
making every Sikkimese youth equipped with the skill
of trade & enterprise. The visit of the Dutch and
Holland Consortiums and the infrastructure development
proposals of the Singapore team will make Sikkim the
richest land in India.

And finally leaders like Dr Pawan Chamling, the
visionary par excellence needs all praise. Let more
visionary be born in this land of Kanchenjunga to lead
us to the golden era.

 ( S K Sarda was then President of Sikkim Chamber Of
Commerce)


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