By Firdoose ul Islam, IANS,
Uri (Jammu and Kashmir) : More than three years after it was launched, trade along the Uri-Muzaffarabad route across the Line of Control in Jammu and Kashmir has been an important facet of India-Pakistan relations. But the trade, estimated around Rs.600 crore (120 million USD) annually, is hampered by a barter exchange of goods and lack of banking and communication facilities, complain traders.
The mountainous road link, along the Jhelum river, had remained closed for six decades. It was reopened for trade on Oct 21, 2008, as part of confidence building measures (CBMs) between the two countries.
The governments of India and Pakistan agreed to trade on 21 listed items from the divided parts of Kashmir on barter system. Both sides agreed that the items produced by a third nation should not be allowed for export or import in order to promote demand for local goods.
Trucks laden with goods from both sides cross the LoC, the ceasefire line that serves as the de facto border, through Kaman Aman Sethu.
The main items exported from Salamabad in Jammu and Kashmir to Chakoti inside Muzaffarabad in Pakistan-administered Kashmir are: carpets, honey, rajma, papier mache products, dry fruits, saffron and medicinal herbs. The products imported from Chakoti are mainly: rice, tamarind, carpets, fruits and vegetables, moongi and black mushroom.
“Presently trade is done on 21 items by mutual agreement from both the sides of Kashmir,” trade official Nazir Ahmad Baba told IANS.
Earlier, the trade was conducted twice a week. But after traders from both sides demanded more days, the trading days were extended to four days a week last year.
“Now the trade is conducted four days a week i.e. Tuesday, Wednesday, Thursday and Friday. Every week, on an average goods worth Rs.7-9 crore are exported from this part of Kashmir to Pakistan-administered Kashmir,” said Nazir Ahmad.
According to government officials at the Trade Facilitation Centre (TFC) at Salamabad in Uri, the annual trade turnover is around Rs.600 crore. Around 50 trucks from Kashmir cross over to Muzaffarabad on each trading day, while 30 come from the other side.
The trucks have permit to enter upto the TFC, around 5 km inside the LoC, where the goods are unloaded and the trucks return.
The Trade Facilitation Centre office works out of a temporary shed made of fabricated sheets, and the godowns too are of the same material.
However, to government has earmarked Rs.16 crore for upgradation of infrastructure at the Salamabad trade centre. The upgrade includes construction of large cargo sheds to store goods and a modern truck scanning terminal.
Though 1,500 traders from Kashmir have registered with the Salamabad trade office, they are unhappy with the state of affairs. They want the trade to be in money as well as establishment of a banking system.
“The activity which was started with much fanfare has become the victim of symbolism due to lack of proper facilities, like communication links and banking system for money exchange,” Arshid Ahmad, a trader, told IANS.
Traders say the barter system and absence of communication links are the biggest hurdles. In order to communicate with the trading party on the other side, the mode of communication is through government officials.
Traders from both sides are demanding that the trade should not be restricted to only 21 items. Rather all items produced and manufactured in Jammu and Kashmir should be incorporated in the list. The traders are also demanding that the trade should be driven on demand-supply basis.
Anther grouse that traders have is that their trucks have to unload goods at the check point near the LoC. The goods are then reloaded onto local trucks for onward journey, which results in damage to goods, especially perishable items like fruits and vegetables.
The traders never get to meet their trading counterparts on the other side.
Some business experts say the cross-LoC trade could go beyond Rs.300 crore per week if both governments “show seriousness” in the trade by making available proper infrastructure.
However, head of department of economics at Kashmir University, Professor G.M. Bhat says the cross-LoC trade “is a very encouraging step for divided Kashmir”.
“This trade is hope for the economic development of Kashmir and will flourish,” Bhat told IANS.
As per the bilateral trade agreement, the truck drivers are given a temporary permit after proper official verification.
The TFC at Salamabad, Uri, has been a boon for locals. It has provided the youths jobs as porters while hotels and restaurants have also opened up in the area.
(Firdoose ul Islam can be contacted at [email protected])