Himachal Pradesh Governor Urmila Singh Tuesday declared open the four-day-long, centuries-old International Lavi fair here.
Speaking on the occasion, she said the fair was a unique example of the glorious, social, cultural, economic and historical legacy of Himachal Pradesh.
"It is one of the oldest fairs, famous for promoting trade and other commercial activities with Tibet since centuries," she said.
The fair dates back to the 17th century when Raja Kehari Singh of Rampur Bushahr state signed a treaty to promote trade with Tibet.
Rampur, located 120 km from Shimla, was once a major trade centre as it is located on the old silk route connecting Afghanistan, Tibet and Ladakh in Jammu and Kashmir.
The governor lauded the efforts of the organisers in carrying forward the rich tradition of the fair.
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"The woollens, dry fruits and other traditional crafts and products exhibited in the fair are unique and it provides a good opportunity for their promotion and sale besides benefitting the traditional craftsmen and farmers," said Urmila Singh.
Chief parliamentary secretary Nand Lal said the fair, apart from possessing historical significance, has promoted commercial activities since centuries.
The main attraction during the attraction every year is the sale and purchase of Chamurthi horses - an endangered species known as the "Ship of the cold desert".
Being a surefooted animal, it is mainly used for transporting goods in the Himalayas.
The Chamurthi horse traces its origin to the Tibetan region. In India, it is bred in the villages of Himachal Pradesh bordering China.
According to the 2007 livestock census, there are around 1,300 Chamurthi horses in Kinnaur, Lahaul and Spiti districts of the state.