Till April 2019, Rs 7500 Cr trade was recorded
Abrar A. Mattoo
Srinagar, April 2: Taking the renewal of bilateral relations between India-Pakistan as a positive signal, the traders are demanding the resumption of cross LoC trade between the two halves of Jammu and Kashmir at an earliest.
In April 2019, cross LOC trade was suspended by the Ministry of Home Affairs, citing narcotics, illegal weapons, and fake currency as the reason. Until then, the trade had survived a decade and recorded Rs. 7500 crore worth of transactions.
“The renewal of talks and relations between India and Pakistan have sparked hope on both sides of the LoC. We have been getting calls from across the line of control too. All of us are looking forward to the resumption of trade between the two parts of Jammu and Kashmir,” commented Sheikh Ashiq Ahmad, outgoing president of Kashmir chamber of commerce and Industries, while talking to Kashnir Despatch. The KCC&I has active members from the Traders community from both sides of the line of control.
According to research by the Bureau of Research on Industry and Economic Fundamentals, around 4229 families were alone found to be suffering at two trading points in J&K: Uri-Muzaffarabad and Poonch-Rawalkot.
“People who were engaged with cross LoC trade must see good days ahead, because they have suffered immensely,” Mr. Ashiq further told Kashmir Despatch.
The traders have witnessed a great deal of trouble as well in the past two years. The terms of the trade did not allow the banking system; therefore, the trade was based on the terms of goods exchange; on the barter system. This means that if ‘A’ was a trader from the Indian side of the Kashmir, and say he was buying dates from ‘B’ a trader from Pakistani occupied Kashmir, ‘A’ was supposed to pay ‘B’ in goods that value exactly the same as the price of commodity he was buying.
“The money is stuck between the traders on both sides. Since the trade stopped, the money couldn’t be paid back in goods. The traders have been suffering since the last two years,” Samiullah Bhat, a cross LoC trader, and Sr. vice president of Salamabad Cross LoC trader’s Union, said while talking to KashmirDespatch.
The trade that is happening between the traders or India-Pakistan, is happening Via a third country, therefore the prices of certain items have sky-rocketed.
“The month of Holy Ramadan is arriving, and you’d see what would be the prices of Dates, Miswaks (traditional tooth brushes), Prayer mats, etc. The cross-border trade was a relief. Therefore, we demand that the be trade restored before Ramadan,” Samiullah appealed while talking to Kashmir Despatch.
Though, the resumption of cross LOC trade is uncertain, the traders demand that if so happens, the trade must be resumed on certain conditions.
“Modifications are important. When the trade was started in 2008, we were not consulted. The SOP’s that we had to follow before, did not suit the trade. We want to be included in the GST portal because we taxed twofold without it. Another requirement is that since our trade is based on the exchange of goods, we also pay twofold income tax. The third is that a truck scanner is installed so that the anxiety does not have a room. A committee should be formulated that regulates the standard of currency exchange. Additionally, there are various other changes that we demand to be brought if the trade is restored,” demanded Hilal Ahmad, Chairman, Salamabad Cross LOC trader’s union, while talking to Kashmir Despatch.
