Focus on NE's border trade potential

Guwahati, May 24 (UNI) North East India's export figure to Bangladesh has crawled up to Rs 200 crore even as Commerce ministry has reignited hope of larger trade amidst stupendous growth of informal bilateral trade in the recent years.

Commerce Minister Jairam Ramesh's recent announcement aimed at increased trade activity in North East has once again shifted the focus of attention to the potentiality of the region as a major trading point.

During 2004-05, total export from the region was Rs 391.85 crore, with Bangladesh claiming the major share. Again, during the same period, import from international markets to the region stood at Rs 30.35 crore.

Currently, there are 18 Land Customs Stations (LCS) in NE with the potentiality for setting up more to encourage trade with Bangladesh, Myanmar, Bhutan, Nepal and China.

Joint Director General for Foreign Trade M.K.Mero informed that about Rs 200 crore had been exported to Bangladesh through NE via the LCS.

"Export to Bangladesh from our country is also conducted through other parts like West Bengal. Rs 200 crore does not include the export of those parts,'' Mr Mero said.

With the declaration of the Commerce minister that 12 new trading centres would be opened in NE, eight with Bangladesh and four with Nepal, the volume of trade with these countries was likely to go up substantially.

According to export figures for 2005-06 (April-September), Bangladesh accounts for 1.6460 per cent of India's total exports.

Similarly, Nepal accounts for 0.9322 per cent, Myanmar for 0.1216 per cent and Bhutan for 0.1022 per cent.

Mr Mero further informed that 22 items are listed for trade with Bangladesh by mutual agreement but lack of awareness among traders has emerged as an impediment in the growth of trade.

As a result, informal trade eats into the share of formal trade, making the countries lose valuable foreign exchange, he added.

The main items imported to NE from Bangladesh include gold, pirated CDs, processed food items, readymade garments, rapeseed oil, synthetic/fruit drink, fresh/dry fish, vegetable oil and cement.

Export items through the informal route include handmade bidis, sugar, pharmaceutical preparations, betel nuts/leaves, cattle, textiles, kerosene/diesel, motor parts, liquor, agricultural products and ganja.

Cotton yarn, woven fabric, bi-cycle parts, medicines, precursor chemicals, sewing machines, motor parts, fertilizers, insecticides, menthol, pan masala/zarda find way out of the country through informal routes along the India-Myanmar border.

The items imported through these route include precious/semi precious stones, cheap electronic items made in China, consumer items such as jackets, shoes, toys, cigarettes, alcoholic beverage, canned drinks and fish, garlic and onion, narcotic drugs such as heroin and amphetamine.

While lack of legal hassles encourage informal trade and is undertaken by small-time traders, lack of awareness regarding the incentives the government offers for trading with these countries under various agreements has also stood in the way, Mr Mero opined.

He added that the government has taken measures to educate the traders on the benefits of trading through the formal route and was trying to check the roaring informal trade in this part of the country.

Inadequate infrastructure and communication bottlenecks are serving as major impediments in the growth of border trade in NE, Mr Mero pointed out.

Union Minister Jairam Ramesh's recent announcement that Rs 9 billion has been sanctioned to build infrastructural facilities in the proposed 13 new trading centres has come as a welcome sign for the region. Besides the 12 in NE, one trading centre would be opened with Pakistan.

Rail links with Bangladesh and Myanmar, long mooted, are likely to be operational soon even as the region emerges as the new zone for economic activities in the country.

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