Business Standard

Urgent need to improve infrastructure in Wagah to boost trade

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Vijay C Roy New Delhi/ Amritsar
The thaw in Indo-Pak relations has increased opportunities for trade through Wagah. With the South Asia Free Trade Agreement (SAFTA) coming into force from July 1, it is expected that this route would not only boost bilateral trade but Amritsar's economy as well.
 
However, there is a pressing need to upgrade the existing infrastructure at Wagah. The Prime Minister's announcement on setting up quarantine facilities at Wagah is a positive step but a lot more needs to be done.
 
With Indian importers expecting fresh fruits from across the border, cold storage facilities need to be set up. Indian importers will be receiving fresh fruits from Afghanistan via Pakistan through Wagah.
 
Previously, the Pakistan government had allowed five items--onions, potatoes, tomatoes, garlic meat and livestock (including buffaloes, cows, goats, sheep and camels) to be imported duty-free from India through Wagah. But the absence of cold storage facilities is proving to be a hindrance in the import and export of perishable goods. Sources said there had been several instances when the vegetables got rotten due to this.
 
Talking to Business Standard, Rajdeep Uppal, president, Narain Exim Corporation, said: "At present, there are no cold storage facilities here, although perishable items are cleared on priority. But the need of the hour is to have cold storage facilities here, to avoid damage to consignment."
 
Indo Foreign Chamber of Commerce President B K Bajaj said, "The present capacity of the godown here is about 3,000 parcels or 120,000 kg but once Safta comes into force, a godown will be needed with a capacity about 20 times the existing one. It is unfortunate that nothing has been done in this regard."
 
"From time to time consignments have got stuck due to traffic congestion at the Wagah Joint Check Post. Traders also have to bear huge daily halting charges on trucks."
 
At present, trade between the two countries through Wagah is done by porters, through whose hands commodities are passed on. There are about 700 porters to take care of import and export as trucks are not allowed to enter each other's territory. An exporter suggested that there should be separate gates for import and export as there is only one gate which takes care of imports and exports.
 
He added that the trade time should be extended as it is less than six hours currently.
 
Wagah, which used to be a hub of international trade before the Partition, has been hit hard due to frequent visits of VVIPs from both the sides. Exporters from Amritsar say they are not opposed to traffic on the land route but measures should be taken to ensure smooth trade between both the countries.
 
They feel that efforts need to be made to revive the glory of this ancient trade route "" the Amritsar-Lahore road used to be the only caravan route for traditional trade in the Indian subcontinent for more than five centuries.

 
 

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First Published: May 04 2006 | 12:00 AM IST

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