Bhutan further eases trade restrictions

Lockdown restrictions were eased in Phuentsholing where a number of Covid cases were reported, the Bhutan government has issued a notice, mentioning that trade across the borders will resume in a regulated manner, while ensuring full compliance with COVID19 containment protocols.

TT |  15 Oct 2020  |  Alipurduar: Some recent relaxations by the Bhutan government have brought back cheers for traders in Jaigaon and some other areas of Alipurduar, a Bengal district that shares borders with the Himalayan kingdom and Phuentsholing, its business capital.

After Covid-19 pandemic had hit India and cases were also reported in Bhutan, the neighbouring country had restricted entry of foreigners and was allowing movement of only essential commodities.

A few days back, as lockdown restrictions were eased in Phuentsholing where a number of Covid cases were reported, the Bhutan government has issued a notice, mentioning that trade across the borders will resume in a regulated manner, while ensuring full compliance with COVID19 containment protocols.

According to the notice, vehicles carrying hardware and construction materials will be allowed to enter Bhutan on Saturdays and Sundays.

On these days, maximum 60 vehicles carrying such goods will be allowed to enter and online registration of each vehicle with the regional trade and industry office in Phuentsholling has to be completed a day prior to the entry.

"It has been also mentioned in the notice that from Monday to Friday, 100 vehicles will be allowed every day which are carrying other goods like essential commodities and other grocery items. Vehicles carrying LPG and petro fuels however, will be allowed on all seven days," said a trader in Alipurduar.

The notice has left the traders in Jaigaon -- they are largely dependent on Bhutan and have suffered losses during the recent lockdown -- elated.

"Finally, there is some good news for us. This is because we can resume export of different items other than essential commodities to Bhutan. Also, there are thousands of Bhutanese who make their purchases from Jaigaon. As there was a restriction in movement, they could not cross the border and visit our markets during the past few months," said Ramashankar Gupta, secretary, Jaigaon Merchant Association.

For many years now, India has been one of the major exporters of Bhutan. Also, Bhutan sends a number of items, mostly construction materials, to India worth thousands of crores every year.

According to the data available with the directorate general of foreign trade that functions under the Union commerce and industry ministry, the total export to Bhutan from India in 2018-19 fiscal was of 657.3 US$ million while India's import from Bhutan was around 369.5 US$ million.

Also, the data available with Bhutan shows that out of the total imports of Bhutan, 84 per cent is sent from India while 74 per cent of Bhutan's total exports are sent to India.

The relaxation, which also indicates that work would commence in the construction sector of the country, has also brought some respite for thousands of Indian workers who serve in the construction sites of Bhutan. Most of them had returned to their homes and were sitting jobless for months.

While the traders and exporters have reasons to cheer, those associated with tourism are yet to get their good news. This is because even though entry of Indians has been allowed in Bhutan, the country is yet to open its doors for tourists..