The Hindu Business Line : `Take Stilwell Road to boost trade in East'

Stilwell Road passes through China and Myanmar and if it could be restored, movement of goods among the three countries will be eased to a great extent.

Kolkata , Aug. 2

STRESSING on road connectivity between India and Myanmar via China to ensure goods flow in a smooth manner, the Federation of Indian Export Organisations (FIEO), eastern region, has suggested the reconstruction of the old Stilwell Road, built during the Second World War from Ledo in Assam to Burma Road connecting Kunming in China.

Making a presentation at a workshop here recently on `Trade with India's eastern neighbours: Issues & prospects,' organised by The Bengal Chamber of Commerce & Industry (BCCI), Mr S. K. Jain, Regional Chairman of FIEO, said if the road, which passes through China and Myanmar, could be restored, movement of goods between the three countries will be facilitated to a great extent.

On trade with Myanmar, which also has border trade arrangements with China, Thailand and Bangladesh, he said the poor infrastructure facilities within the region have led to a situation where each of the North-Eastern States is looking more to neighbouring countries rather than to mainland India for economic relations.

Following the signing of Indo-Myanmar border trade agreement in 1994, two trade routes at Champai in Mizoram and Moreh in Manipur were opened in 1995.

Indian exports consist mainly of items like cement, cycles, drugs and pharmaceuticals, auto parts and accessories and cotton yarn. Major items entering India from Myanmar are blankets, electronic goods, betel nut, pulses, teak, groundnut, iron scrap, gold, silver and precious stones.

Mr Jain said that although the large volume of illegal trade is still a problem, it shows the export potential of the North-East region as a whole.

On Bangladesh, Mr Jain said the recently created India-Bangladesh Joint Working Group (JWG) to identify obstacles and opportunities in bilateral trade is expected to enhance business and investment activities between the two neighbours in a big way.

The JWG tasks include easing of customs clearances, visa procedures, settling trade disputes and recognition to quality standards. He said Bangladesh is also willing to allow a pipeline through its territory to carry natural gas from Myanmar to India, if there is a `win-win" situation for that country. Lower duties following the obligations (faithfully adhered to by Bangladesh) under the Sapta agreement, Mr Jain felt, made it possible for a large number of Indian products to have easy market access in Bangladesh.

Pointing out that the north-east had a special importance in trade with Bangladesh, Mr Jain said it is a matter of concern that illegal trade far exceeded legal trade. Quoting a study by the South Asia Enterprise Development Facility (SEDF), a wing of the World Bank, he said illegal exports from north-east to Bangladesh in 2001-02 was almost through the legal channels. Legal imports into the north-east from Bangladesh for the same year was at $12 million, while illegal imports were said to be around eight times the above, at $97 million.

While items like coal, non-basmati rice, limestone and ginger mainly feature in the legal exports basket to Bangladesh, other goods like spices, textiles, sugar, drugs and pharmaceuticals, processed foods, cereals, fish, fruits, paper and products are sent illegally. On the import side, products like hilsa fish and chillies are illegally sent to the north-east, while products like elctronic items, jute, plastic products, palm oil and cosmetics are smuggled in. Indo-Bangla trade is conducted mainly through the land border routes along the international boundaries of West Bengal, Assam and Meghalaya.

Calling for major infrastructure development at some of the busy land customs stations in Bengal, like Mahedipur, for raising exports to Bangladesh, Ms Lipika Majumdar Roy Choudhury, Commissioner of Customs (Preventive), Kolkata, called for development of the riverine route to Bangladesh so that trade could use transaction costs.

Suggesting a joint venture between private transporters of both the countries, she said bulk products, if sent by the river route, can bypass the waiting time at customs points, as they could be moved out directly from Kidderpore Docks directly by barges to Haldia and then moved up. She also suggested container movement straight from the inland container depot (ICD) of one country into another for minimising border checks.

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