Presentation on Border Trade Infrastructure of Meghalaya by Commerce & Industries Department Govt. of Meghalaya

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1 Policy Dialogue on Economic and Transport Development in Border Areas in Eastern South Asia at Pinewood Hotel, Shillong. Presentation on Border Trade Infrastructure of Meghalaya by Commerce & Industries Department Govt. of Meghalaya 4 th December

2 Meghalaya some facts Area :22,429 Sq. Km District : 11 Capital : Shillong Population :29,64,007 ( in 2011 ) Border :with Assam in the North, Bangladesh in the South International Border with Bangladesh : 443 Km Economy :Predominantly an agrarian economy. The important crops of the state are potato, rice, maize, pineapple, banana.

3 Meghalaya some facts The North Eastern Region including MEGHALAYA is endowed with natural Resources and also offers excellent potential for export for mineral resources, agro horticulture products, forest products, handloom and handicrafts etc. But due to various factors NER exports is not upto the marks, which are as below: (a) Locational disadvantage. (b) Extremely poor infrastructure. (c) Poor level of marketing information regarding export from this region. (d) No exports from Export Promotion Industrial Parks (E.P.I.P) set up in N.E.Region till now. (e) Lack of awareness regarding export import policies, facilities and other Govt. incentive available to the exporter to promote export to other countries.

4 Features in Meghalaya Bangladesh trade Export from Meghalaya to Bangladesh dominates NER Bangladesh trade Meghalaya exports raw materials like coal, limestone, stone chips, bamboo, etc to Bangladesh Imported items include cement, plastic goods, readymade garments, processed food and drinks Minerals of Meghalaya origin are exported to Bangladesh through LCS s of Assam and Meghalaya The resource structure of NER and demand structure of Bangladesh are complementary to each other. There exists a huge potential for trade between the two regions. Overdependence of exhaustible resources like coal and limestone leads to unsustainable Export basket. It is prudent to add value to export by switching to processed / semi-processed goods.

5 Export prospects of Meghalaya

6 Major Export Items from Meghalaya Coal Limestone / Quicklime Quartz stone Boulders Oranges Raw hide

7 Other Export Items Roses Anthurium Leather leaf Ferns Gerbera Orchids Capsicum

8 Development of Land Custom Stations Department of Border Management has prioritized 13 Land Customs Stations(LCSs) for their development as Integrated Check Posts (ICPs) under Land Port Authority India (LPAI). Dawki (Meghalaya) LCSs LCSs. is one of the 13 prioritized

9 Integrated Check Post (ICP) at Dawki Tamabil (Meghalaya) An Integrated Check Post (ICP) under ICP scheme of MHA is being developed at an estimated cost of Rs. 60 Crores. The Government of Meghalaya has already handed over possession of 30, Sqm of land at Dawki to GOI for establishment of the Integrated Check Post (ICP). Acquisition of 31,017 Sqm additional land is under process. Detailed Engineering Report has been prepared and is under examination of MHA/DBM.

10 Land Customs Stations : There are 10 Land Customs Station (LCS) at Indo-Bangladesh border in Meghalaya and the status of these LCS are as indicated below; Sl.No. Name of Land Customs Station Status 1. Borsora LCS Export only (Coal & Limestone) 2. Bholaganj LCS Export only (Limestone, Quartz Stone & Boulder Stones) 3. Dawki LCS Export Import & Passenger movement Export Items : Coal, Limestone, Quartz Stone, Raw Hides and skins, Fresh Ginger, Pears, Quick lime, Boulder Stones, Oranges Import Items : Food items and Fireclay bricks 4. Shellabazar LCS Export only (Limestone & Boulder Stones) 5. Baghmara LCS Export only (Coal) 6. Dalu LCS (under up gradation) Export Import & passenger movement Export Items : Coal Import Items : Synthetic Net Fabrics, Readymade Garments, Cotton Waste & Cement 7. Ghasuapara LCS Export only (Coal) (under up gradation) 8. Mahendraganj LCS Export Import only 9. Rynku LCS Non-functional 10. Balat LCS Non-functional Export Items : Coal, Bamboo, Tamarind, Fresh Ginger, Dry Fish, Crushed stone and Boulder stones Import Items : Food Items, Synthetic Net Fabrics & Cotton Waste

11 Up gradation of Land Customs Station Government of India has sanctioned Upgradation of two Land Customs Stations in Meghalaya Dalu, West Garo Hills District : Works in Progress Ghasuapara, South Garo Hills Districts : 90 % of the Works Completed.

12 Border Haat An MOU on Border Haats was initiated by India and Bangladesh. As per the MOU, both sides have agreed to start border haats on a pilot basis in Meghalaya at the following locations ; Baliamari (Kurigram District) Kalaichar (West Garo Hills District) Pillar No This Border Haat was inaugurated jointly by the Hon ble Union Minister for Commerce & Industry, Govt. of India, Shri Anand Sharma, the Commerce Minister, People s Republic of Bangladesh, Mr. Muhammad Faruk Khan and our Hon ble Chief Minister Dr. Mukul Sangma on 23 rd July, 2011.

13 Lauwaghar (Dalora) (Sunamganj District) Balat (East Khasi Hills District) Pillar No This Border Haat was operationalised pending inauguration on 1 st May, 2012 Trade has been allowed in respect of a list (to be modified through mutual consent ) of locally produced items, free of customs duties, with decisions in respect of operational issues on the ground having been left to the Haat Management Committee. The mode of trade is to be barter with the use of local currency having been permitted to the extent of 100 US $.

14 Border Haat inauguration

15 VIEW OF BORDER HAAT

16 Commodities allowed to be traded in the Border Haats Locally produced vegetables, food items, fruits, spices; Minor local forest produce e.g. bamboo, bamboo grass, and broom stick but excluding timber; Products of local cottage industries like Gamcha, Lungi etc; Small locally produced agriculture household implements e.g., dao, plough, axe, spade, chisel etc; Garments, melamine products, processed food items, fruit juice, etc.

17 JOINT BORDER HAAT MANAGEMENT COMMITTEE MEETING BETWEEN INDIA AND BANGLADESH

18 MARKET DAY AT THE BORDER HAAT

19 Business Transaction The Indian vendors are, however, doing brisk business through sale of their locally produced vegetables, fruits, spices and after conversion from Bangladeshi Takas to INR, the returns for our vendors have greatly improved from a humble start of Rs. 2,800/- on the first Border Haat to as high as Rs 2,70,413/- on a market day. Outgoing commodities: Ginger, tejpata, oranges, banana, pineapple, lemons, Shimla alu (potatoes), tamarind, black pepper, etc. Incoming commodities: Molasses (gur), brinjal, garlic, sugarcane, pillows, etc.

20 New Initiatives During the 12 th Five Year Plan ( ) the Government of Meghalaya has proposed Setting up of 22 New Border Haats along the Indo-Bangla International Border. The List has been forwarded to Government of Bangladesh through MEA for their kind perusal and approval. The Government of Meghalaya through the ASIDE Scheme has also taken up projects for building up infrastructure in the Border Areas to facilitate growth in trade and commerce, Upgradation of LCS, road connectivity, water supply has been taken up. In the 12 th Year Plan period critical infrastructure projects like setting up of testing laboratories, trade centres, cold strorage are being taken up.

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