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The Reality Behind Mizoram's Trade Hotspot

Champhai, a town in Mizoram near the Myanmar border, has become a major trading hub driven almost entirely by illegal informal trade due to the open and unregulated border. It is one of the largest trading centers in Mizoram, catering to the state's needs as well as people in neighboring Chin State in Myanmar. Goods from Myanmar like cigarettes and consumer electronics are widely available at significantly lower prices than in India. In the other direction, Indian goods like medicines, fertilizers, and LPG cylinders fetch high prices in Myanmar. Despite investments to promote formal trade through border posts, informal trade continues to dominate due to poor infrastructure on the Myanmar side and the essentially open nature of

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Devansh Mehta
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67 views2 pages

The Reality Behind Mizoram's Trade Hotspot

Champhai, a town in Mizoram near the Myanmar border, has become a major trading hub driven almost entirely by illegal informal trade due to the open and unregulated border. It is one of the largest trading centers in Mizoram, catering to the state's needs as well as people in neighboring Chin State in Myanmar. Goods from Myanmar like cigarettes and consumer electronics are widely available at significantly lower prices than in India. In the other direction, Indian goods like medicines, fertilizers, and LPG cylinders fetch high prices in Myanmar. Despite investments to promote formal trade through border posts, informal trade continues to dominate due to poor infrastructure on the Myanmar side and the essentially open nature of

Uploaded by

Devansh Mehta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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07/11/2016

TherealitybehindMizoramstradehotspot|BusinessLine

TherealitybehindMizoramstradehotspot
PratimRanjanBose

ChamphaiisthesecondlargesttradingcentreinMyanmaraftertheAizwal,thestatecapital.

OpenbordermakingChamphainervecentreofinformalIndiaMyanmarcommerce

Champhai,July1:
Withapopulationof20,000,thedistricttownofChamphaihasadisproportionatelylargeandthrivingmarketplace
dottedwithstoressellingawiderangeofhouseholdappliances,electricalwares,medicines,smartphones,footwear
andothers.
Locatedamere28kmfromthebordergatesatZokhawthar,Champhaiisoneofthelargesttradingcentresafterthe
statecapitalAizwal,andcaterstotheneedsofthehillyNorthEasternstateofMizoramandtheborderingChinStatein
Myanmar.
Butthedisturbingfactisthatthehustleandbustleisalmostentirelydrivenbyillegaltrade.
Thereareover50registeredimportersatChamphai,butonlyafewareactive.Officially,tradeislimitedtoimportofa
singleconsignmentofbetelnutaweek,andafewparcelsofBurmeseenergydrink.Thereisnotraceofexportsfrom
India.
HardlyanytradetakesplacethroughZokhawthar,accordingtoLandCustomsStation(LCS)chiefVHangzo.
Allinformal
Therearenearly15majorcrossbordertradingroutesalongthe510km(accordingtotheHomeMinistry)unfenced
bordersharedbyMizoramwithMyanmar.Havingsharedthelongestboundary,Champhaiisthebiggestdrawofthem
all,saysStateexportcommissionerCLalZirliana.
Noonedarestoguessthesizeofthetrade.ThereisnotmuchinformationwiththeCommerceMinistryeither.
Butcheckanyapparel,footwearorcigaretteshopsalongthe200kmsstretchfromAizwaltoChamphaimostofthe
offeringsarefromMyanmar.WhencomparedtoIndianproducts,theyaresignificantlycheaper.
Apackof20kingsizeChineseFarStarcigarettesisavailableat40.Apackof20Winbodyis25.Incomparison,a
packof10Flakecigarettescosts50.
ConsumerdurablesmanufacturedinFarEasterncountrieslikeSouthKorea,China,andMalayasiaareavailablefreely.
Beitaninnocenttubelight,spectacleframesorsparesfortheoutdatedMaruti800thetouchofMyanmarisall
pervasiveintheeverydaylifeofaMizo.
TheexportsfromIndiatoMyanmararenolessimpressive.Indianmedicines,fertiliser(mostlyurea),motorcycles,
zarda,babyfood,LPG,smartphones,mosquitorepellents,pesticides,cycleparts,andsolargearsfetchhugemarginsin
Myanmar.Thesubsidised14.2kgLPGcylindersavailabletoIndianconsumersatlessthan450islappedupby
Burmeseat4000.Oneparacetamoltabletpriced1.5orlessinIndiafetches5atTiddiminMyanmar.Tiddim,
FalamandKalemyoarethethreelargestconsumptioncentresinWesternMyanmarwithin300kmsfromthe
Champhaiborder.
http://www.thehindubusinessline.com/economy/therealitybehindmizoramstradehotspot/article7375439.ece

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07/11/2016

TherealitybehindMizoramstradehotspot|BusinessLine

AccordingtoKLalminthanga,PresidentoftheMizoramChamberofIndustries,atleasttwotruckloads(eachcarrying
910tonnecargo)ofmedicines(analgesics,skinointmentsandantibiotics)andfivetruckloadsoffertiliserreach
Myanmareveryweek.LalminthangaisoneoftheearliestentrepreneursofMizoramwithfamilylinksinMyanmar.
Interestingly,whiletheofficialIndiaMyanmarbordertradeof$56million(201415)isinfavourofMyanmar($39.86
millioninIndianimports),LalminthangasaysinformaltradeisinfavourofIndiaduetoexportofrelativelyhighvalue
items.Zirliana,however,feelstradeisevenlysharedbetweenthetwonations.
Butisitpossibletoferrysuchhugevolumesofgoodsacrosstheborder?Zirlianahasaninterestinganecdotetoshare.
LikemostoftheMizosherelationsinMyanmar.OnarecentvisittoKalemyo,henoticedanIndianmadeJCB
earthmover.Thetradersdroveitthrough,hesays.
Whynoformaltrade?
Therearereasonsbehindthethrivingcrossbordertrade.
Nearly99percentofIndiasofficialbordertradewithMyanmariscurrentlyroutedthroughMorehinManipur,located
northofMizoram.Indiahasalsoinvestedheavilyinbuildingroadinfrastructure(AsianHighway)onbothsidesofthe
borderonthisroute.
Buttradeambitionsarehurtbyacoupleoffactors.
TheroadcrossesdisturbedareasinbothinIndia(ManipurandNagaland)andMyanmar(Sagaingdivision).Seventeen
insurgentgroupsinManipurandthreetofourinNagalandarecollectingnearly50,000intax(read:extortion
money)pertruck,saysZirliana.
Toavoidthehassle,tradersareshiftinginterestinMizoramthatpeacefulsincetheMizoaccordin1986.Thetrade
prospectshavefurtherbrightenedbythenewfoundpeaceinChinStateandproximityofmajorconsumptioncentresin
Myanmar.
Nearly30percentofcrossbordertradeisnowroutedthroughMizoram,saysLalminthanga.
AccordingtotheMizoramTradeandCommerceDepartment,NewDelhinoticedthestrategicadvantageduringthe
1994bordertradeagreementwithMyanmarandorderedsettingupoftheLCSatZokhawthar.Thefacilitywas
inauguratedinMarchthisyearafterprolongeddelay.Butitwasnotenoughtopromoteformaltrade.
TheroadfromRihlocatedrightacrossZokhawthartoKalemyoisasinglelanekuchharoad.AccordingtotheState
governmentpublications,IndiapromisedtobuildahighwayfromRihtoKalemyoviaTiddimandFalaminMyanmar,
buttheprojectisyettotakeoff.
TradepickuponcetheroadprojectsthatweareengagedinMyanmararecompletedinthenext23years,saysan
Indiangovernmentofficial.
But,willthatbesufficienttostopinformaltrade?Moreimportantly,whyinformaltradeflourishdespitepoorlogistics?
NeitherLalminthanganorZirlianahasaconvincinganswertothequestion.
ThereasonliesintheporosityofIndiaMyanmarborderespeciallyinMizoramwheretheborderpracticallyceasesto
exist.Asperlocalrule,peopleofeithercountrymaytravel16minsidetheforeignterritoriesbetween5amto5pm
withoutanypassportorvisa.Thedistrictauthoritiessaythelimitwasreducedfrom40kmsinthepast.
Butthatrestrictionismerelyonpaper.InrealitytheycangoanywhereinMizoram,andviceversa.Accordingtoa
seniorstateofficial,atleast30,000BurmeseChinsareengagedinmenialjobsinAizwal.Themovementisnotone
sided.AskanyMizo,chancesare,hehastravelleddeepinsidetheforeignterritories.ThereisnofencingorBorder
SecurityForce(BSF)here.
ThewritervisitedMizoramaspartofafieldstudyorganisedbytheJadavpurAssociationofInternationalRelations
andMaulanaAbulKalamAzadInstituteofAsianStudies.
(ThisarticlewaspublishedonJuly1,2015)

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