International agri-business is the fastest growing sector of Indian agriculture in the post-GATT era. The farmers and current or potential exporters have to develop expertise and continuously evolve strategies to take advantage of newly emerging opportunities and face the competition.

Indo-China Border Trade (ICBT) through Lipulekh Pass between Gunji, India and Takalakot, China was started in 1992. The export basket includes Gur, Misri, Tobacco, Spices, Pulse, Fafar Flour, Coffee, Vegetable Oil/Ghee and various miscellaneous consumable items, whereas import list is restricted to Sheep Wool, Passam, Sheep/Goats, Borax, Yak Tail, Chhirbi (Butter) and Raw Silk. Due to primitive infrastructure and apathetic attitude of government agencies, the trade transactions are around Rs 50 lakh per

SWOT Analysis Strengths -Committed traders with entrepreneurial abilities. -Traditional relationship between Huniya and Bhotiya traders. -Provides part-time employment. -Small Group and low investment activity. -Willingness to improve bilateral relations. Weakness -Primitive border trade infrastructure. - Poor co-ordination among various constituents of trade. -No credit and forex facilities. - Restricted import basket and weak forward linkages. Opportunities -To tap Chinese export market. - Source of additional income. - No competition among Indian traders. -Almost nil customs tariff. - Bright future prospects for both countries. Threats - Competition from efficient Nepalese traders. -Slackness and apathy of government. system. - No ECGC cover. -Unresolved border dispute. - Slow progress in Indo-China trade.

annum and the impact of trade is negative on India. China’s entry into WTO, would certainly provide opportunities for pastoral merchants engaged in trans-Himalayan trade to increase their share in Chinese markets available next door, provided export credit and foreign exchange facilities are made accessible.

The State Bank of India (SBI) started a branch in Gunji in July 1992 with the following objectives:

• Promote trans - Himalayan trade
• Inculcate saving habits
• Provide export credit support
• Arrange forex facilities.

Export Credit Support

To provide export credit support to pastoral merchants engaged in ICBT was one objective of opening a branch of the SBI at Gunji. The branch start banking operations during the trade period i.e. June to October and it remained closed from November to May.

The export credit support due to various reasons was not provided to the exporters and agricultural credit facilities were arranged through SBI, Dharchula, which is 101 kms away from Gunji. The export credit support issue was discussed in a meeting chaired by S M Acharya, joint secretary, ministry of commerce (MOC), in July, 1997 in New Delhi and it was decided to keep SBI, Gunji branch operational beyond October and provide soft term loans to traders. However, there has been no improvements in the banking services.

Pareto Analysis - More than 80 per cent (1998) traders were small farmers and contributed less than 20 per cent of trade volumes. - More than 70 per cent (1997) and 65 per cent (1998) traders were only exporters and contributed more than 50 per cent of trade volumes. -More than 80 per cent problems of traders will be solved if credit and forex facilities are provided.

As of October 31, 2001, the total term deposit was Rs 25,000 and saving account deposit was Rs 42,000. In advance accounts, no transactions took place. Chief Manager, regional office, SBI, Almora, L D Pandey, admitted that SBI has spent Rs 10 million on the maintenance of the Gunji branch in the last 10 years, without generating any business. The branch, which was maintained on skeletal infrastructure has been categorised as `loss incurring branch’. Hence the purpose of opening a branch in Gunji was defeated.

In 1998 a closure proposal was submitted to MOC through the local head office (LHO), Lucknow. But the closure proposal was turned down by the MOC, and returned to LHO for reconsideration with the following suggestions:

• Provide banking services round the year
• Extend credit support to exporters
• Arrange forex facilities
• Conduct feasibility study

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