Adverse affect: ‘Certain impositions by Nepal govt hurt traders at markets near Indian border’

Sanchita Aich Bag | MP | 13 Aug 2023 | Panitanki (Indo-Nepal border): Certain enactments and imposition by the Nepal government has left traders high and dry in the border market of Panitanki, on the Indian side of the border, and 30 km from Siliguri town. 

With currency exchange being the biggest problem faced by Indian traders, among a number of others, they have urged the Indian government to intervene in the matter. 

A thriving market exists here, depending mainly on cross border trade. The area comes under the Siliguri Mahakuma Parishad. 

“There is a major racket operating here which has resulted in huge losses for us. While Indian currency is not being accepted on the Nepal side, whenever one visits the Nepal Rashtriya Bank to exchange currency, they claim that they do not have cash. This is forcing the traders to visit private operators currency exchange. However, they do not give the authorised exchange rates. 

For Rs 100 Indian currency, the authorised exchange rate is Rs 160 Nepal currency. However, brokers give as less as Rs 140-150 Nepal currency which is resulting in huge losses for the traders as crores of rupees worth of transactions take place daily,” alleged Roshan Goswami, Assistant Secretary of Panitanki Market Committee, while talking to Millennium Post. 

From traders to tourists, all are being affected by this. The Nepal government is also collecting duty (Bhansar) from Nepal residents on all products they buy from India costing above Rs 100. This has further dealt a big blow to the Indian markets. 

“Owing to this, the number of customers has decreased drastically at the Panitanki market. Many shops have also closed down as people from Nepal are hardly visiting,” added Goswami. Established in 1982, the Panitanki Market, which is situated near the Indo-Nepal border, is one of the largest markets in that area and currently, about 1,200 shops operate from this market. 

This market is totally dependent on border trade. As the Indo-Nepal border is an open border, many people cross over to trade and shop. 

Earlier, anyone from Nepal could buy Indian goods worth upto Rs 15,000 and carry these goods back to Nepal without paying duty. For any social or religious functions, residents were allowed to take back products worth Rs 1 lakh without paying duty. However, all this has changed now. 

As many as 15,000 to 20,000 customers used to visit the market everyday. The daily turnover of the market was around Rs 2.5 crore. 

However, from July 17, the Nepal government issued an order whereby duty of 20 per cent to 40 per cent would be levied on Indian products above Rs 100. Pushkar Giri, a Nepal citizen, said: “The product cost is much higher in Nepal. Owing to this, we used to frequent Panitanki Market earlier. Now, as per the new Nepal government diktat, it is a loss for us to buy Indian goods. Thus, we have stopped buying Indian products from Panitanki.” 

Jiten Subba, another resident, said: “If I have to pay tax on buying something worth Rs 100, it is better I buy it in Nepal. It will cost me less.” 

The Panitanki Market Committee has demanded immediate intervention by the Government of India (GoI). “We have apprised our MP Raju Bista during his visit here and he has assured to take this issue up with the Union government,” added Goswami. 

Courtesy & source- Millennium Post

https://www.millenniumpost.in/bengal/adverse-affect-certain-impositions-by-nepal-govt-hurt-traders-at-markets-near-indian-border-529172