11 years since inception, Cross LoC trade fails to reach full potential

Rs 2927 Crore worth consignments exported against Rs 2574 Crore import since 2008

JUNAID SIDIQ


IMPORT

Period Weight (Qtls) Trucks Consignments Value (in Cr)
2008-09 7293.39 219 29 No records
2009-10 193221.06 2662 70 54.3617
2010-11 159907.58 2413 70 153.1964
2011-12 201376.71 2960 104 239.8369
2012-13 298490.43 4119 175 333.3817
2013-14 238612.73 3299 143 238.3938
2014-15 164748.66 2458 165 359.5283
2015-16 503623.8798 2179 170 383.2781
2016-17 195235.541 2653 137 350.5800
2017-18 162630.20 2539 160 320.287
2018-19
(Till 17-10) 131961.39 1759 76 141.9128

Grand total
(21-10-08
to 17-10-18) 2257101.56 27260 1299 2574.7567
























EXPORT

Period Weight (Qtls) Trucks Consignments Value (in Cr)
2008-09 3987.31 180 29 1.3625
2009-10 119004.75 1830 70 71.8046
2010-11 247235.20 3650 70 156.4756
2011-12 350079.81 4406 104 244.3543
2012-13 623171.57 7519 175 324.7251
2013-14 434019.98 5152 143 272.3884
2014-15 494188.28 5476 166 377.755
2015-16 775854.11 4323 170 532.3651
2016-17 435391.601 4726 141 364.3072
2017-18 437464.71 5193 161 407.919
2018-19
(Till 17-10) 192928.706 2380 76 173.6857

Grand total
(21-10-08
to 17-10-18) 4113327.027 44835 1305 2927.1425


SRINAGAR: Even though the trade across line of control (LoC) was started with much pomp and show in October 2008-- being projected as one of the biggest confidence building measures (CBM) between New Delhi and Islamabad, continuous impediments followed by frequent ceasefire violations at border have hindered the trade to deliver to its full potential.

According to a report submitted by trade facilitation centre Salamabad Uri, a total of Rs 2,574 crore worth items were imported from LoC, while export business’ figures conducted up to date from 2008 stand at mere Rs 2,927 crore.

“This is not even 1 per cent of the trade we had expected when the LoC commerce was started,” said general secretary of the Salamabad-Uri trade union, Hilal Turkie.

Turkie said even though the trade volumes on both routes have increased but not without significant disruptions over the years.

The volume of the trade have declined significantly due to frequent protests, cease fire violations on LoC, supply of contrabands and curfews that occurred in the valley since the start of the trade.

In this year, the trade has seen a 100 percent downfall in comparison to last fiscal year.

In 2017-18, around 5,193 trucks were exported with 161 consignments worth Rs 407 crore, while in 2018-19 upto October a mere 2,380 trucks with 76 consignments worth Rs 173 crore have been exported.

Similarly, in 2017-18 around 2,539 trucks with 160 consignments worth Rs 320 crore were imported while in 2018-19 only 1759 trucks with 76 consignments worth Rs 141 were imported.

Turkie said the lack of the ability to visit the other side and conduct their own market research, build relationships and partnerships has also limited the trade prospects.

The downfall of LoC trade can be gauged from the fact that in standing operation signed in July 21, 2008, 21 items were approved for trade across the LoC which has now been reduced to only four to five items at present.

Among 21 items only Banana, Mirchi, Onions and Embroidery are being trade today.
The situation is no better on other side of Kashmir occupied by Pakistan, where traders are facing longstanding problem of confiscation of their goods they bring to Pakistani markets under a barter system.

PoK-based Jammu and Kashmir Joint Chamber of Commerce and Industry (JKCCI) former Secretary Information, Ajaz Ahmad Meer talking to The News Now from Muzaffarabad said that insistent raids and confiscations of their trucks and mercantile goods at the hands of Customs officials after they enter Pakistan was hampering their trade.

Meer said that the traders have raised the issue with federal Kashmir affairs minister Ali Amin Gandapur.

“We have also called upon President Arif Alvi and Prime Minister Imran Khan to direct the authorities concerned to work out a permanent solution to their longstanding problem,” Meer said.

Meer said that earlier there were 200 trucks that used to come and fro from the LoC in a week which has now reduced to only 50 to 60 trucks per week.

“Traders for last 10 years tried their best to keep the trade running but non-seriousness of both sides of the government has spoiled our all efforts,” he said.

Meanwhile, an official from Industries and Commerce Department said the acrimony between New Delhi and Islamabad has been the biggest cause that the trade has not flourished to its full potential.

“Our job is to remove the bottlenecks but we can’t do that unless both the leadership across the LoC comes to a mutual understanding,” official said.

“Every now and then trade gets suspended for one or the other reason,” he added.