Tiny Indo-Myanmar Free Trade Zone Thrives
May 27, 1999 - 0:0
NAMPHALONG, Myanmar Every day, buses and cars from the northeastern Indian city of Imphal labor up the hilly, final stretch of India's National Highway 39 to the Myanmar border. They drive 110 km (68 miles) to take hundreds of traders and shoppers to Namphalong market on the Myanmar side of the free trade zone straddling the two countries. There, they can buy everything from colorful plastic bowls and cans of Coca-Cola made in Thailand to car batteries and pocket radios.
The free trade zone is very important for Manipur because it is the state's largest trading center, says P.C. Lawmkunga, commissioner of industries and commerce for the state of Manipur. The prices there are very reasonable. Woollen blankets, for example, are much cheaper than in Delhi. Between December 1995 and September 1997, about 991 million rupees ($23.2 million) worth of goods were traded here, with the balance tilting slightly in favor of Indian exports.
There is only one gate now. We are planning to open a second gate at the border in three or four months to increase trade, Lawmkunga said. Closer to Bangkok than New Delhi the remote state of Manipur is one of the northeastern seven sister states linked to the rest of India by a narrow strip of land, sandwiched between Bangladesh and Bhutan. Manipur, with a population of about two million, is closer to Bangkok than it is to New Delhi, some 1,400 km (870 miles) away.
Most of the population engages in agriculture and the state can feed itself. But economic development in landlocked Manipur has lagged behind that of most other states because of inadequate communications, difficult terrain and political unrest. Shops in the state capital of Imphal stock all the usual household necessities, such as soap and toothpaste, but it takes time for new products to come to town.
We basically have everything, but sometimes when supplies of things which are not in great demand run out, it takes a while for the next batch to come, says one Imphal shopkeeper. The railroad does not come to Manipur, and goods such as water storage tanks and Indian commodities arrive strapped on top of buses. The vehicles are escorted by army convoys as the highway from the neighboring state of Assam winds its way through hills infested with separatist militants.
Asian Goods Galore I come to Namphalong three times a month to stock up on food, says Bila Sini Devi, a trader from southern Manipur. There is more variety here than in Imphal and it's much cheaper. India and Myanmar signed an agreement to form a free trade zone in 1994. One hundred Indian rupees is equivalent to 700 kyat at the border market, which is open from dawn to dusk.
Most of India's exports to Myanmar are medicines, spices and textiles, while its imports are mainly food, electronic goods and garments. Dozens of tiny, crammed stalls managed by Myanmar nationals and Nepali merchants spread out under a tin roof near the border checkpost. Numerous cafes have also sprung up in one corner of the market to cater to hungry vendors and buyers.
The most popular item is this pocket radio, says one Myanmar merchant, holding up a cigarette box-sized radio marked with the brand name Sunny. They are 230 rupees ($5.42) each, come in boxes of 50 and on a good day, I sell a couple of boxes to Indian traders, he says. Most of the business is done in bulk. Around him there are clean, new boxes of television sets, car stereos and tape recorders.
Most of the things come from China, but some come from Singapore and Malaysia, he says. The goods, which move from Namphalong to Moreh, the town on the Indian side of the border, are then sold at a clutch of shops in Imphal known as the Moreh Bazaar. Locals say goods at the Imphal market are about 10 percent cheaper than those sold in New Delhi or other parts of India. Trade Center Shifting Long before the Namphalong market opened, Moreh was the center of border trade.
Everything, from silk thread for Manipur's many handlooms to high-quality heroin, was smuggled through the town. People from all over India flocked to the town to make their fortunes, giving birth to numerous hotels and restaurants. Many Tamil traders from southern India, wearing blue-checked sarongs and thongs, still saunter up and down the dusty, main street. But they say business is not what it used to be.
Shops are closing down and Moreh is changing from an unofficial trading center into a bus depot for shoppers. Now there are only about 3,500 Tamils in Moreh. There used to be double the number before the border opened, says Kambo Madrasi, a Tamil cigarette shop owner. Business is getting worse day by day. Maybe it's time to go home. ($1 = 42.4 rupees) (Reuter)
The free trade zone is very important for Manipur because it is the state's largest trading center, says P.C. Lawmkunga, commissioner of industries and commerce for the state of Manipur. The prices there are very reasonable. Woollen blankets, for example, are much cheaper than in Delhi. Between December 1995 and September 1997, about 991 million rupees ($23.2 million) worth of goods were traded here, with the balance tilting slightly in favor of Indian exports.
There is only one gate now. We are planning to open a second gate at the border in three or four months to increase trade, Lawmkunga said. Closer to Bangkok than New Delhi the remote state of Manipur is one of the northeastern seven sister states linked to the rest of India by a narrow strip of land, sandwiched between Bangladesh and Bhutan. Manipur, with a population of about two million, is closer to Bangkok than it is to New Delhi, some 1,400 km (870 miles) away.
Most of the population engages in agriculture and the state can feed itself. But economic development in landlocked Manipur has lagged behind that of most other states because of inadequate communications, difficult terrain and political unrest. Shops in the state capital of Imphal stock all the usual household necessities, such as soap and toothpaste, but it takes time for new products to come to town.
We basically have everything, but sometimes when supplies of things which are not in great demand run out, it takes a while for the next batch to come, says one Imphal shopkeeper. The railroad does not come to Manipur, and goods such as water storage tanks and Indian commodities arrive strapped on top of buses. The vehicles are escorted by army convoys as the highway from the neighboring state of Assam winds its way through hills infested with separatist militants.
Asian Goods Galore I come to Namphalong three times a month to stock up on food, says Bila Sini Devi, a trader from southern Manipur. There is more variety here than in Imphal and it's much cheaper. India and Myanmar signed an agreement to form a free trade zone in 1994. One hundred Indian rupees is equivalent to 700 kyat at the border market, which is open from dawn to dusk.
Most of India's exports to Myanmar are medicines, spices and textiles, while its imports are mainly food, electronic goods and garments. Dozens of tiny, crammed stalls managed by Myanmar nationals and Nepali merchants spread out under a tin roof near the border checkpost. Numerous cafes have also sprung up in one corner of the market to cater to hungry vendors and buyers.
The most popular item is this pocket radio, says one Myanmar merchant, holding up a cigarette box-sized radio marked with the brand name Sunny. They are 230 rupees ($5.42) each, come in boxes of 50 and on a good day, I sell a couple of boxes to Indian traders, he says. Most of the business is done in bulk. Around him there are clean, new boxes of television sets, car stereos and tape recorders.
Most of the things come from China, but some come from Singapore and Malaysia, he says. The goods, which move from Namphalong to Moreh, the town on the Indian side of the border, are then sold at a clutch of shops in Imphal known as the Moreh Bazaar. Locals say goods at the Imphal market are about 10 percent cheaper than those sold in New Delhi or other parts of India. Trade Center Shifting Long before the Namphalong market opened, Moreh was the center of border trade.
Everything, from silk thread for Manipur's many handlooms to high-quality heroin, was smuggled through the town. People from all over India flocked to the town to make their fortunes, giving birth to numerous hotels and restaurants. Many Tamil traders from southern India, wearing blue-checked sarongs and thongs, still saunter up and down the dusty, main street. But they say business is not what it used to be.
Shops are closing down and Moreh is changing from an unofficial trading center into a bus depot for shoppers. Now there are only about 3,500 Tamils in Moreh. There used to be double the number before the border opened, says Kambo Madrasi, a Tamil cigarette shop owner. Business is getting worse day by day. Maybe it's time to go home. ($1 = 42.4 rupees) (Reuter)