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MoICE Secretary to hold trade agreement with Indian counterpart to ease trade issues

June 27, 2024
in Business, Economy, Other Stories
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To address and solve trade-related issues between Bhutan and India, the industry, commerce and employment secretary will soon hold a high-level talk with his Indian counterpart. The industry, commerce, and employment minister shared this during yesterday’s question-hour session in the National Council. The minister said the government has already submitted all necessary recommendations for the meeting scheduled for next month aimed at promoting bilateral trade.

During the session, Sarpang’s Member of Parliament, Pema Tashi,  asked the industry, commerce, and employment minister whether the government has framed plans and policies for the export of areca nut between India and Bhutan.

The MP inquired whether there are ongoing discussions to formally include areca nut in the export list.

He added that including areca nut in the formal trade agreement will help increase the country’s exports by reducing costs incurred in transporting areca while exporting.

Currently, areca nut growers and exporters in the southern districts can export only via Phuentshogling and Samtse.

“Sarpang is one of the highest producers of areca nut, yielding approximately 4,835 metric tonnes. Currently, we are encountering issues exporting areca nut via Gelephu. Since the item is not included in the trade agreement between Bhutan and India, Bhutanese exporters have to pay between Nu 7,000 to 10,000 per truck. Therefore, such challenges discourage exporters in the southern regions,” said Pema Tashi, MP, Sarpang.

Responding to the question, the Industry, Commerce, and Employment Minister, Namgyal Dorji, said the government has officially requested the Indian government to allow the export of areca nut via Gelephu, Samdrup Jongkhar, Lhomoi Dzingkha in Dagana, and Nganglam in Pema Gatshel.

“Starting in 2021, the Indian government have allowed us to import 17 metric tons of areca nut. Moreover, they even allowed us to export areca nuts via Phuentsholing through the customs office. However, it gave rise to a lot of issues. Recently, the Indian government has approved our request to allow the export of area nuts via different locations. One is Chamurchi in Samtse,” said Namgyal Dorji, Industry, Commerce, and Employment Minister.

If the Indian counterpart approves the government’s request, areca nut growers and exporters in the country will be able to export betel nut via around six locations.

Tashi Dekar & Devika Pradhan

Edited by Phub Gyem

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