CROSS LoC TRADE

About:

• Objective of LoC trade: LoC trade is meant to facilitate exchange of goods of common use between local populations across the LoC in Jammu & Kashmir.
  
  
• Facilitation centres: The trade is allowed through two trade facilitation centres located at (1) Salamabad, Uri, District Baramulla and (2) Chakkan-da-Bagh, District Poonch.
  
  
• Features: The trade takes place four days a week. It is based on a barter system and is carried out on a zero duty basis.
  
  
• Recent suspension: The Ministry of Home Affairs has issued orders for suspending LoC trade at Salamabad and Chakkan-da-Bagh in Jammu and Kashmir with immediate effect.
  
  
• Reason for suspension:
  • The decision was taken on grounds that the trade routes were being misused by the Pakistan based elements for funnelling illegal weapons, narcotics and fake currency etc.
    
    
  • After the Pulwama incident, Government of India has withdrawn the "Most Favoured Nation (MFN)” status to Pakistan. So in order to evade the consequent higher duty, LoC trade is likely to be misused to a much larger extent.
    
    
  
  
  
• Way ahead: A stricter regulatory and enforcement mechanism is being worked out and will be put in place in consultation with various agencies. The issue of reopening of LoC trade will be revisited thereafter.