The export of cardamom from Bhutan to India has been paused because of the issues in Indian official formalities which leads to the large-scale unlawful cross-border trade. And to come out of this problem, Bhutan pleaded India to remove the GST from the popular spice.
The change began from July 1, 2017, when the GST was launched and due to this new reign, Rs 65 crore of trade is paused.
It was a low-key matter but now it has turned to a diplomatic level. The foreign minister of Bhutan Dr. Tandi Dorji requested Indian foreign secretary Vijay Keshav Gokhale to exempt the cardamom from GST.
Also to note that the Indian customs department now follows now Indian e-Payment Gateway ICEGATE on all the Indo-Bhutan border gates.
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If anyone wants to export products from Bhutan they must produce PQSI (Plant Quarantine Services of India) Certificate because the system demands it.
Sonam Tobgay, an exporter from Bhutan said, “Indian customs has stopped allowing our consignments, bringing exports to a halt”. A Customs official at Indo-Bhutan border gate said, “We cannot allow anything without documents asked by the system”.
“The situation has resulted in large-scale illegal trade,” said Sange Wangdi, a trader from Phuentsholing. “Prices, high in India due to the shortage, have taken a nosedive in Bhutan, putting farmers and unorganized traders in a difficult situation,” he added.
As per the Bhutan Government Market Research Bureau, India, the largest buyer of Bhutan’s cardamom imported more than 700 metric ton in 2016 which worth approx. Rs 65 crore at the wholesale level, making it Bhutan’s national annual production.
BAFRA officials said, “This volume may reach twice as high with streamlined trade facility”.
