Explainer: Shipki La set for China trade

SUSPENDED since 2019, trade through the historic India-China border route of Shipki La in Himachal Pradesh’s Kinnaur district is showing signs of revival.Himachal Pradesh shares a 240-km border with China, 160 km of it in Kinnaur. Trade activity undertaken on a barter system through Shipki La, which was formally resumed in 1992, has steadily grown over the years, touching figures of Rs 9.72 crore in 2016.Historical importanceShipki La (3,930 mt) is a trade pass that dates back centuries. There is recorded history of centuries-old trade between the erstwhile Rampur Bushahar state, also known as ‘Khunu’, and Tibet. With similarity in traditions, culture, language and Buddhist belief, villagers from remote border hamlets shared a lot in common.Traders from the villages of Namgia, Nako, Chuppan, Pooh and Chango would cross over to the Tibetan region with their goods. The border was sealed in the aftermath of the 1962 India-China war, bringing the cross-border trade to a halt.Resumption of tradeIt was in December 1991 that India and China formally agreed to resume trade ties, following which trade along Shipki La resumed. The volume of trade, which had gradually increased, was temporarily affected because of the Doklam standoff. However, trade has remained suspended since 2019 owing to outbreak of the Covid-19 pandemic and the India-China tensions.Prior to this, trade activity was carried out annually from June 1 to November 30. It is only this year that the formal procedure for issuance of trade permits to the villagers has been initiated.Trade r9egulationsThe Pooh tehsildar in Kinnaur is designated as the Trade Officer. It is he who issues trade permits to the villagers to cross over to Tibet with their goods. These are bartered for items which are in demand on the Indian side. There is strict verification of the traders and the trade activity is undertaken under stringent regulations of the Ministry of External Affairs.The Trade Officer has started receiving applications in Pooh, a significant shift after years of inactivity. Prior to the disruption, nearly 190 traders had registered for passes, but the momentum was abruptly halted, leaving local economies in limbo.Items on the Trade ListThe trade basket currently includes 36 exportable items and 20 importable goods, with periodic revisions based on local demand. The import items primarily include pashmina, yak tails and hair, salt, shoes, blankets, carpets and herbal medicines. The exports from India include items like coffee, tea, rice, wheat, dry fruits, tobacco, cigarettes, spices and handicraft products.Traders’ demandsThe Kinnaur India-China Trade Association has strongly advocated for the establishment of a quarantine facility at Chuppan, a critical requirement for resuming livestock trade, currently the biggest missing piece in expanding trade volumes. “The absence of such a facility has halted the exchange of animals, despite strong demand in India for indigenous breeds like the Chihu goat from the Tibetan markets,” says Hishey Negi, president of the Association.Additionally, traders have called for streamlined security procedures, suggesting that all checks be consolidated at a single point in Chuppan to reduce delays and inconvenience.Kailash Mansarovar YatraThe Himachal Government is keen to seek resumption of the Kailash Mansarovar pilgrimage through the Shipki La route. Chief Minister Sukhvinder Singh Sukhu has written to the Centre to include Shipki La as it is one of the shortest routes. At present, the pilgrimage is undertaken through Nathu La in Sikkim and Lipulekh Pass in Uttarakhand.Traders also emphasise the need to integrate border trade with tourism, proposing the establishment of local stalls at Chuppan to cater to tourists. This dual approach, they believe, could unlock new economic opportunities for the remote region while preserving its unique cultural and commercial heritage.

Explainer: Shipki La set for China trade

Process for issuance of trade permits to villagers in HP begins, marking resumption after 2019

Pratibha Chauhan

Explainer: Shipki La set for China trade

Process for issuance of trade permits to villagers in HP begins, marking resumption after 2019

Pratibha Chauhan

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