Mohinder Verma
JAMMU, Apr 13: Union Ministry of Commerce has yet not given approval to the proposal of Jammu and Kashmir Government regarding increase in the number of items for cross-Line of Control (LoC) trade mainly on the ground that only few goods among the already approved list are being traded ever since the commencement of this Confidence Building Measure (CBM) way back in 2008.
The decision to commence cross-LoC trade between J&K and Pakistan-occupied-Jammu and Kashmir (PoJK) was taken by the then Prime Minister of India and President of Pakistan on September 23, 2008 and trade actually started from October 21, 2008 after finalization of list of 21 items.
Till December 2015, 45,486 trucks crossed over to PoJK and 28,891 trucks reached Indian side through two routes—Srinagar-Muzaffarabad and Poonch-Rawalakote routes. The trade takes place from Tuesday to Friday (four days a week) and 303 registered traders are trading across LoC for 21 agreed items as per Standard Operating Procedure (SOP).
On the persistent demand of the traders, the J&K Government has been seeking inclusion of some more goods in the list of 21 items approved for export and import by the traders of both the sides at Chakan-Da-Bagh and Salamabad meeting points, official sources told EXCELSIOR, adding in the past the State Government in consultation with the traders identified 21 more items for inclusion in the already approved list of items for cross-LoC trade.
Among these proposed items are metal, alloy and chemical products, ready made garments, edible products, cricket bats, steel furniture, canned wazwan and chicken, plaster of Paris, juices and jams, packaged drinking water besides plastic and sanitary wares.
“After going through the list of items proposed to be included in the already approved list, the Union Ministry of Home Affairs took up the request of the J&K Government with the Ministry of External Affairs and Ministry of Commerce, which have an important role to play in facilitating cross-LoC trade, for their approval”, sources said while disclosing that Ministry of Commerce has not put any weight behind the proposal of the J&K Government and is yet to convey its approval to the Ministry of Home Affairs.
“The Commerce Ministry is of the observation that very few items among the already approved list are being frequently traded and unless all the 21 items are exported or imported up to the satisfaction there would not be any justification behind increasing the items to 42”, sources informed.
The Ministry has noted that among the 21 approved items only red chilly, dhania, imli, herbs, embroidery items, Rajmah, honey, onion, fresh fruits and spices are being frequently exported. Similarly, only dry fruits, herbs, embroidery items, Peshawari chappals, fresh fruits and vegetables are being frequently imported.
“It would be better if traders from both the sides first start making export/ import of all the 21 approved items instead of pressing for increasing the items”, sources said quoting the observations of the Commerce Ministry, adding “there is no doubt that Commerce Ministry too wants to give necessary fillip to this Confidence Building Measure but it at the same time wants traders to increase the number of frequently trading items. Moreover, Ministry wants to ensure that Trade Facilitation Centres are upgraded so that there would be hassle free trading activity even after increasing the number of items”.
“A proposal for up-gradation of Trade Facilitation Centre sites at Salamabad and Chakan-da-Bagh has already been approved by the SRE Committee and first installment of funds has been released to the concerned authorities”, sources said, adding “even the Ministry wants to have full body truck scanners in place before increasing the number of trading items”. As far as full body truck scanners are concerned, the process of global tendering is underway.
Ever since the start of cross-LoC trade in 2008, Indian side businessmen have traded items worth Rs 598.83 crore while as PoJK businessmen traded items worth 1021.43 crore in Pakistan currency (Rs 567.46 crore in Indian currency).
Among the other proposals submitted to the MHA include purchase of covered trucks for use in cross LoC trade at an approximate cost of Rs 25 crore and additional manpower required for Trade Facilitation Centres.
The items presently approved for export are carpets, rugs, wall hangings, shawls and stoles, namdas, gabbas, embroidered items including crewel, furniture including walnut furniture, wooden handicrafts, fresh fruits and vegetables, dry fruits, saffron, aromatic plants, fruit bearing plants, dhania-moongi-imli and black mushrooms, Kashmiri spices, Rajmah, honey, papier mache products, spring/rubberized coir/foam mattresses, cushions, pillows and quilts and medicinal herbs.
Similarly, the approved items for import are rice, Jahnamaz and tusbies, precious stones, gabbas, namdas, Peshwari leather chappals, medicinal herbs, maize and maize products, fresh fruits and vegetables, dry fruits, walnut furniture, wooden handicrafts, carpets and rugs, wall hangings, embroidered items, foam mattresses, cushions, pillows, shawls and stoles.
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