Cross-loc Trade on Ventilator

By. Rameez Makhdoomi

1 On July 21, 2008 India and Pakistan agreed upon the trade of 21 items through LOC`s in Jammu & Kashmir and a Standing Operation Procedure (SoP) was signed.

2 At the beginning of this trade, there were about more than 600 traders involved, but gradually the number came down and today it is less than 50 traders.
3 “Whenever a trade of particular item picks up it is banned on one or the other pretext” : Traders
4 Traders allege that Amritsar-Lahore lobby are working against LOC trade.

Introduction
A new dawn seemed to have risen for the people of pain hit regions of Jammu & Kashmir when four years back the then Foreign Affairs Pranab Mukherjee and the then Pakistani Foreign Minister Shah Mehmood Qureshi met to discuss modalities of cross loc trade between Muzfarabad in Pakistan Administered Kashmir and Uri in Indian Administered Kashmir and from Poonch in Jammu region to Rawalakot in Pakistan Administered Kashmir. Following this historical meeting, both countries agreed upon the trade of 21 items and a Standing Operation Procedure (SoP) was signed on July 21, 2008 in which trade modalities were fixed. It was also decided in the SOP that after three months meeting would be held to revive the list of items so as to increase the items. But more than four years down the line hopes seem to have vanished in thin air as we through light on series of lacunas that have lent deathblow to cross-loc trade.
In Standing Operation Procedure signed on July 21, 2008, 21 items were approved for trade. It was also mentioned in the SOP to review the list after every three months. Import items of Jammu & Kashmir traders, as mentioned in SOP, were Rice, Jai Namaz and Tasbi, precious stones, Gabaaz, Namdaaz, Peshawari leather Chapals, medicinal herbals, maize and maize products, fresh fruits and vegetables and dry fruits, saffron, honey, Dal Moongi, Imli, black mushroom, furniture items, carpets and rugs, wall hangings, embroiders items, foam items, shawls and stools, whereas export items are Carpets, Rugs, Wall hangings, Shawls, namdaazs and Gabaazs. Emborodied items including crewels, furniture items including walnut , wooden handicraft, freshfruits and vegetables and dry fruits, aromatic plants, saffron, fruit bearing plants, Dhania, Moongi, Imli, Black Mushroom, Kashmiri spices, Rajmah , honey, paper mache products, spring,Rubberised coir and foam mattresses, cushions, pillows, quilts and medicinal herbals.
A labourer Mohammad Younis Awan greets us with these comments –“The trader is dying, the laborer is dying, the number of goods laden trucks is dying. I have seen with these eyes the cross-loc trade witnessing a silent death”.

The Kashmir Impact made a detailed research on the Cross LoC trade through Uri and Muzaffarabad trade route.
A number of factors especially the official apathy is lending a fatal blow to cross-loc trade:
1. Obsolete and restricted items
The cross-loc trade is being carried with mostly outdated items which seem to have no relevance in the current era. Some of the items included for trade like, Gabaaz, Namdaaz have no relevance in current era and are nowhere in use. As a matter of fact, the trade has simply continued only on account of the resilience of the few traders of Kashmir rather than to any other major factor. The fact that trade is restricted to just 21 items seems like a joke and is a major restriction on the overall trade volume. The list should have been more than 21 and some contemporary items should have been included in it.
II. No relook on Trade Item List
In Standing Operation Procedure signed on July 21, 2008, 21 items were approved for trade. It was also mentioned in the SOP to review the list after every three months, but all the concerned voices especially the cross-loc traders maintain that no such effort has been made by respective governments to revive trade item list despite repeated pleas made by traders and assurances given by concerned authorities in one to one meetings.
III. Banning coconut and Red chilies
The short history of trans-LoC trade records revealed that the coconut and red chili were the main export items of the trade. Around Rs 125 crore worth coconuts was exported to Muzaffarabad till 2011 when the export of both these items was banned by the Government of India. Despite repeated requests by the traders the ban has not been lifted and according to traders about Rs 15 crore coconuts meant for export is rotting in the godowns since 2011.

Red chilli was second major export item for the traders of the State but as its main exported specie “Phataki “ was banned by Pakistani authorities after found poisonous for human consumption which raised a question mark on the functioning of authorities in our part especially the concerned departments meant to test the quality of agricultural products before their export .
Even the lucrative items like garlic stand was also banned and according to cross-loc traders they are provided with no reasons on the logic behind these bans.
Shabir Ahmad, a trader started with cross-loc trade states –“Whenever a trade of particular item picks up it is banned on one or the other pretext as a result the cross-loc trade is constantly going down. They just state to us that this item is not of Kashmir origin which sounds abysmal to us.”
IV. Declining Traders and quantum
Any trade in globe is destined to survive when it has a handsome number of traders engaged in its fold. The representatives of cross-loc trade maintain that when the cross-loc trade started it had about 600-620 traders under its fold from the Indian Administered Kashmir and just four years down the line the number has been reduced by more than 95 percent which is worrisome and mind wobbling. It is learnt that number has declined from other side as well.
The cross-loc traders maintain that at one time hundreds of trucks used to ply every week to and fro for the trade purpose and now even that number has been reduced to single digits.
Afzal Ahmad, a driver from Pakistan Administered Kashmir who had just arrived on the Salamabad terminal states-“The number of trucks plying between two sides of LOC has gone down as most of the lucrative and tradable items have been banned. These are certainly tough times for the cross-loc trade.”
V. Barter System
Traders associated with the cross-loc trade state that the prevalence of barter system is among the biggest hurdles in the flourishing of trade. The trade is merely carried on the bases of exchange of goods which is not only cumbersome and turning trade into a loss making affair. The trade is greatly hampered by a barter exchange of goods. This reminds one of the days of “Early Man”. In the modern era of globalisation trade is flourishing with systems and forms but unfortunately the cross LOC trade here has been left on the mercy of centuries old ‘Barter System’.
VI. Lack of communication facilities
Communication channels is regarded as the trachea of trade in present era. It must be fast and reliable, but the nature of communication facilities here is quiet cumbersome and almost non-existent on ground zero for the Cross-loc trader which is among the big impediments for the trade. The need of the hour is to install sophisticated and modernized communication facilities for the traders as without effective communication facilities no trade activity can survive.

A conversation with President Cross- Loc Traders
Tariq Ahmad khan, President Cross- Loc Traders talks to Rameez Makhdoomi on different aspects of Cross-loc Trade.
Cross-Loc Trade is on Ventilator
How was the first experience with the cross-loc trade first?
When trade started four years back it started on smoother note and on the agreed 21 items. The cross-loc trade was meant to be great Confidence Building Measure but with passage of time it has declined and with no revival of the 21 items as agreed in Standard operating Procedure (SOP) as well, but with no actual implementation the cross loc trade is witnessing a constant death.
What is current status?
The cross-loc trade is dying for sure and you would be surprised to know that this trade is now limited just to 3 items. There have been about 11 items which have never been traded. Despite promises and laid out procedure in SOP to change the untraded items nothing has been done by the respective governments and authorities to implement the same. Instead of increasing the items a number of items have been banned thus lending a fatal blow to the cross-loc trade.
What is the quantum of trade especially the trucks going with goods from one side to the other?
First on a weekly bases more than 250 trucks used to go but now hardly 25 to 30 trucks go and the number as also declined from the other side of the LOC.
We have suffered immense loss as no effort has been made to revive the list of trading items. To add salt to our wounds, the items which are lucrative from trade point of view are banned.
Could you elucidate the some of the banned items?
One of the most traded item coconuts has been banned. The other items like Ajwain & Ginger have also been banned without giving any logic or reason to traders behind this ban.
Who according to you is creating hurdle for this trade?
It is without doubt the Amritsar-Lahore lobby who are making intrigues against our cross-loc trade. Especially the Amritsar lobby just because of jealousy is using New Delhi against our trade.
What according to you is reason for this alleged jealousy of Amritsar lobby?
They do not suffer any loss on account of our trade, but the only problem they have is cross-loc trade is Duty-Free and they are jealous of this fact.
Let me also state here that this cross-loc trade was meant to be historic Confidence Building Measure (CBM) and if it is shattered the entire peace process would come to halt.
Sources state that from Poonch-Rawalakot side traders have been facilitated to frequently meet to fix their ledgers. Do you have the same facilities?
No, not at all. We the cross-loc traders from the Kashmir side are given step –motherly treatment as we hardly have been able to meet our counter partner. Probably just once or twice that too were jam-packed with officials rather than traders. While you are absolutely right that from Poonch-Rawalakot the traders have met on number of times to fix their credit and debit related modalities.
What are your burning demands?
We want to make it clear to the government that when we were motivated for the cross-loc trade we not only acted as traders but also as peace ambassadors. As we motivated our brethren who had crossed the LOC for one or the other reason to give up path of confrontation and a number of them happily joined cross-loc trade. But on account of lackluster attitude of concerned governments the traders on other side are also facing starvation like situation.
We demand a proper and timely revival of trade items list as laid out in SOP. We demand banking facilities and modernized communication facilities. We demand a proper framework under which cross-loc trade can be carried as we have even noticed that concerned officials are unaware about the framework under which cross-loc trade has to function. But currently considering holistic paradigm the cross-loc trade is on ventilator.
You have during your business activity met number of higher authorities. What has been the outcome of such meetings?
We have definitely met higher authorities and they have always made lofty promises .I recall when our banana was banned Home Secretary RK SINGH came and the ban was lifted but there have been number of promises which have never been fulfilled. Even the Standard Operating Procedure framed by the Government is not implemented. The authorities promise a lot in meetings but on ground nothing is done.
Expert comment – Saimaullah Bhat, Prominent Cross-Loc Trader
“I have seen this trade dwindling both in terms of its quantum and traded items. If India says Kashmir is integral part of India then why double standards. Why no banking facilities, why the number of traded items kept so low from Kashmir side, why no effort to revive list of trade items and why much higher number of items allowed from Amritsar side and not from our side. At least from Pakistan side the scenario is bit improved but from this side it seems all efforts are directed to kill this trade.”
A Senior Face associated with Cross-Loc Trade on condition of Anonymity makes these strong points.
“Our cross-Loc Trade is the eighth wonder of the world as it is trade without items and a trade that is merely carried on barter system. Custom Department is misinterpreting the things. As a matter of fact, there is no custom officer but Trade Facilitation officer there at URI while as he is imposing custom rules there. In SOP it is clearly written any item traded other than 21 items should immediately sent back in the same vehicle. While in flouting of the rules if they find such thing they auction the items which they have did time and again which is clear violation of SOP. The authorities do not impose banking and then allege traders of Hawala .If I send goods worth half million the barter system cannot effectively yield me returns and same applies to the traders across the other side of the LOC .When coconut was banned the authorities gave absurd reason that you are trying to save custom duty while as in export you are given incentives. We were also told that it is banned because coconut is oilseed while as it is a dry fruit. As a result of ban on coconut our coconut trucks meant to be exported have rotten in godowns and thus we incurred huge losses. In barter system, we are literally forced to do trade on items which have no meaning.”
He further Adds –“Authorities are treating us as smugglers and rather than facilitating trade they are acting as impediments. We need to bear in mind that we are a consuming society and so all the consumable items should be included and thus there should be increase in items .If this is a confidence Building Measure then it calls for full amnesty from tax. The cross –loc traders who have incurred huge losses should be given compensation.
The custodian appointed from the state and trade Facilitation Officer from center are often at loggerheads from our side as a result the ultimate sufferer is trader. From Pakistan side they have just kept one officer and one Department which is a good thing for traders from that side. Similarly from Indian side we should also have just one officer and department so that no confrontation occurs.”
Official viewpoint
Nazir Ahmed Baba, custodian of Cross LoC Trade Facilitation Centre at Salamabad, URI States-“This trade is governed by Standard Operating procedure. It is a reality that only few items have been active in the Cross-Loc Trade. The number of items like rugs, honey, aromatic plants etc have rarely or never been traded.
From our side red chillies, coconut were most traded items and red chillies got banned after found not fit for human consumption after failing test in laboratory Pakistan and it was handed to us. We tested it and was here also found not fit for human consumption as it tested positive and we banned the phataki items of that chilli.
Nazir Ahmad Baba seems to agree that the concerned authorities should definitely revisit the list of trade items for flourishing the trade.
Conclusion- End Analysis.
The Cross-Loc Trade is direly requiring a serious attitude from all the concerned governments and give it a new outlook. Time realities urge upon the central Government and state government of Jammu & Kashmir to show more iron will while looking into grave problems confronted by the Cross-LOC Traders.
The obsolete items need to be kept out of tradable items; a concentrated and regular effort is required to revive the trade item list from time to time. Banking facilities should be provided to the traders and barter system of the trade should be immediately ended .The traders should be provided with the latest and sophisticated communication facilities so that the cross-loc trade runs on smooth basis.
The need of the hour is to also engage traders in a more dynamic way and organize more meetings between the Cross- Loc Traders.
One cannot disagree with the observation made by all the prominent voices of Cross –LOC Traders that any damage lent to cross-loc trade would mean fatal blow to the overall Confidence Building Measure (CBM). Hence, this trade should not be taken just as a economic or commercial activity, rather it should be viewed as the foundation step towards the establishment of peace and resolution of bigger political issues between India and Pakistan. (With inputs from M. Kaiser).
COURTESY: THE KASHMIR IMPACT MAGAZINE.