Protection money nightmare interrupting Bhutanese dream of trade with Assam, north Bengal

The priority of the Fifth King of Bhutan, Jigme Khesar Namgyel Wangchuk, is to ensure economic development of Bhutan, sources close to the Palace in Thimphu say

NIRMALYA BANERJEE, EOI, KOLKATA, FEBRUARY 20, 2024 : The Bhutanese dream of economic growth through increased trade and commerce with the adjoining Indian plains of Assam and north Bengal, and beyond with Bangladesh, has been rudely interrupted by the need for payment of protection money to run trucks carrying products from the Himalayan kingdom; and also by the alleged attitude of non-cooperation from a section of official agencies on the Indian side of the border.

The priority of the Fifth King of Bhutan, Jigme Khesar Namgyel Wangchuk, is to ensure economic development of Bhutan, sources close to the Palace in Thimphu say. It is important to create more economic opportunities in Bhutan to stop the migration of Bhutanese youths to the USA and West Europe in search of better income and livelihood; a trend that has started after the pandemic. In the course of his two visits to India last year, in April and in December, the King held extensive discussions with Prime Minister Narendra Modi to further the prospect of economic cooperation between Bhutan and India. Obstacles at the local level may, however, still, spoil this party between the two close neighbours. The obvious beneficiary in such a situation will be Bhutan’s northern neighbour which is knocking at the doors of Thimphu to gain an entry. In view of the strategic geo-political location of Bhutan, New Delhi should take note, the sources emphasize.

The on-going supply of boulders from Bhutan to Bangladesh through the plains of north Bengal and Assam and also of coal which Bhuran procures from India to run its cement plants are an instance how this practice of collection of protection money stands in the way of seamless cross-border trade and commerce.

Between Assam and Meghalaya, about 20 people are said to be controlling the 'business’ of collection of protection money from trucks. It is understood that some time trucks carrying boulders are overloaded, giving an excuse for the collection of protection money; at times in connivance with a section of official agencies. There are two routes for the export of boulders from Bhutan to Bangladesh, it is learnt. One is from Samtse in western Bhutan to Chengrabandha on the border of north Bengal and Bangladesh. The other is from Gelephu in eastern Bhutan to Dalu on the border of Meghalaya and Bangladesh. The trucks which carry these boulders from the Bhutan border to the Bangladesh border are Indian vehicles. About 800 trucks carrying boulders run on these two routes daily.

There is a grievance in Shillong that because of the supplies of boulders from Bhutan now there is not much demand in Bangladesh for boulders from Meghalaya. Sources say, however, that the grievance is misplaced. The demand for Bhutan boulders is more in Bangladesh because Bangladeshi importers of these boulders, under the terms of a trade agreement between Bhutan and Bangladesh, do not have to pay any import duty on supplies from Bhutan. Consequently, the Bangladeshi importers pay $17 per tone for boulders from Bhutan while they pay $11 per tone for boulders from Meghalaya.

Besides, when factors like “protection money” and the long route from Gelephu on the Bhutan border to Dalu on the Bangladesh border which these trucks have to traverse are taken into consideration, the profit of the Bhutanese boulder exporters is marginal, sources point out. On the route passing through Assam and Meghalaya, for instance, each truck has to pay “protection money” of about Rs 10,000 to private groups operating in these two states.

Taking into account the factors of the transport cost for traversing a 360 km long route and the protection money amount, the exporter of boulder in Bhutan is left with a profit of only about Rs 15,000 per truck. Compared to this, the transport cost from the Garo Hills of Meghalaya to the Bangladesh border at Dalu is much lower.

If the export of boulders from Bhutan to Bangladesh is disrupted because of the menace of protection money, the proverbial duck which lays the golden eggs may, however, die, it is feared. In such an eventuality, operators of the Indian trucks will suffer the most; not to speak of about 20,000 people engaged in Bangladesh for unloading these trucks and in the crushers which crush the boulders. In northern parts of Bangladesh, boulders from Bhutan, of which there are plenty in the rivers and mountain streams of the Himalayan kingdom, for the construction of roads, dams and buildings. Lately, Vice President of Bhutan – India Friendship Association Dasho Tshering Wangda had travelled to Assam, Meghalaya and Bangladesh and talked to common people, official agencies and top administrators to generate awareness about the importance of the Butan trade for the people of Bhutan, India and Bangladesh.

From eastern Bhutan, through gateways like Gelephu and Samdrup Jongkhar, agricultural products like ginger, potato, betel nut, cardamom and orange are supplied to Assam. Official agencies at the customs stations at the border monitoring these consignments from Bhutan often deny permission for entry to India in the absence of phyto- sanitary certificates declaring that these are not contaminated. Not all border towns in Bhutan have the facility for obtaining this certificate. Exporters of Bhutanese products often have to travel to Phuentsholing to get it, which means a long detour. Bhutan now has a surplus production of these vegetables and their smooth export to Indian market is important for the farmers of Bhutan to get a fair price. Cement plants located in towns in Bhutan near the Indian border are dependent on India coal.So are ferro silicon and calcium carbide factories and factories manufacturing steel rods and distilleries and breweries for their inputs.

Trucks carrying coal to these units from coal mines in upper Assam sometimes get into problems with customs authorities in the absence of complete documentation. Some time, trucks from Margherita carrying coal are sent to the nearest border town in Bhutan at Samdrup Jongkhar and the trucks are again sent to Gelephu and other destinations; now marked as Bhutanese coal.