China’s Delay Stalls Lipulekh Trade Revival, 28 Indian Traders Returns Empty Handed

Twenty-eight Indian traders have returned to Dharchula after waiting for permission to enter Tibet, while nearly 3,000 quintals of jaggery and sugar candy remain stranded at Gunji near Lipulekh Pass

DHARCHULA: The long-awaited reopening of the historic India Tibet border trade through Lipulekh Pass has suffered a major setback after Chinese authorities failed to provide final clearance to Indian traders.

Twenty-eight traders, who had travelled to Gunji in Uttarakhand’s Pithoragarh district, returned to Dharchula on July 11. They had been waiting for permission to cross Lipulekh Pass and enter Purang in Tibet, traditionally known among Indian traders as Taklakot.

The traders had hoped to take part in the first trading season since the route was closed during the Covid-19 pandemic in Lipulekh . However, despite completing the required formalities on the Indian side, they were not allowed to proceed because the final approval from China did not arrive.

The delay has created uncertainty over the revival of one of the oldest Himalayan trade routes. It has also placed the livelihoods of traders, porters, transporters, mule handlers and small businesses in the border region at risk.

Goods Stranded in the Rain

The most immediate concern is the large quantity of trading goods currently stored at Gunji.

Nearly 3,000 quintals of jaggery and sugar candy had been transported to the high-altitude village in preparation for the trading season. These products are traditionally taken from India to markets in Tibet.

With continuous rain and high moisture levels in the Himalayan region, traders fear that the goods may be damaged if the deadlock continues. Storing such a large quantity of food products safely in a remote border village is difficult, especially when transport and storage facilities are limited.

Traders said they could not remain at Gunji for an indefinite period because food, accommodation and other essential supplies were becoming difficult to manage.

They returned to Dharchula without completing the journey, but much of their stock remains behind.

For families that had invested their savings in purchasing and transporting the goods, the delay could result in heavy financial losses.

One Hundred Traders Issued Passes in Lipulekh

A total of 134 traders from the border region had applied to take part in the proposed reopening of the Lipulekh trade route.

After security checks and administrative verification by the Special Investigation Branch, the district administration issued official trade passes to 100 traders. Assistants, porters and mule handlers were also included in the preparations.

The first group was expected to begin its journey towards Tibet on July 8. However, the final permission required from the Chinese side was not received.

Dharchula Sub-Divisional Magistrate Ashish Joshi said the Indian administration had asked Chinese authorities to allow a small group of traders to visit Tibet without carrying goods.

The purpose of the visit would be to inspect the market, accommodation, storage facilities and other arrangements at the trading point in Purang.

“We have requested permission for Indian traders to visit Tibet without carrying goods and inspect the arrangements there. We are awaiting a response from the Chinese side,” Joshi said.

There is still no clear information about when, or whether, the approval will be granted.

Unequal Access Raises Concern

The delay has caused further disappointment among Indian traders because Nepalese merchants have reportedly been allowed to continue trading at the Purang market.

Indian traders believe that they should also be given clear information and equal access, particularly after receiving official passes and making costly preparations for the journey.

Transporting goods to Gunji is not an easy task. The region is located at a high altitude and can be reached only through difficult mountain roads and tracks. Traders depend on vehicles, porters and pack animals to move supplies.

Every additional day of delay increases the cost and the risk of damage to their goods.

A Centuries-Old Himalayan Route

Lipulekh Pass is located in the upper Himalayan region of Pithoragarh district, close to the India–Nepal–Tibet tri-junction. For centuries, it served as an important seasonal trade link between communities living on both sides of the Himalayas.

Traders from the Johar, Darma, Byans and Chaudans valleys travelled to markets in western Tibet during the summer months. They carried Indian goods such as jaggery, sugar, grains, spices, textiles, utensils and everyday household products.

In return, they brought wool, salt, borax, livestock products and other Tibetan goods to Indian markets.

The trade was not only a commercial activity. It created social and cultural connections between Himalayan communities. Families maintained trading relationships across generations, and the annual journey became part of the region’s way of life.

Trade through Lipulekh was suspended after the 1962 India–China war. It remained closed for nearly three decades before India and China agreed to resume border trade through the route in 1992.

The trade continued on a seasonal basis for several years. The last operational season was held in 2019. From 2020, travel and trade remained suspended because of the Covid-19 pandemic and continuing border restrictions.

Lipulekh Pass is also strategically important and serves as one of the recognised routes for the Kailash Mansarovar Yatra.

Local Economy Depends on Seasonal Trade

In 2019, the total value of trade through Lipulekh was close to ₹3 crore. Indian exports were valued at approximately ₹1.25 crore, while imports stood at around ₹1.90 crore.

These figures may appear small compared with India’s overall international trade. However, for remote border communities, the seasonal business is economically important.

The trading period creates work for porters, drivers, shopkeepers, mule owners, transport operators and local suppliers. Markets in Dharchula, Gunji and nearby villages become active during the summer season.

The possible reopening had therefore created hope across the region. Traders had invested money, arranged transport and prepared their goods after several years of inactivity.

Instead, they have returned without crossing the border.

Until China provides final clearance, the historic Lipulekh trade route will remain closed. For the traders of Uttarakhand, the uncertainty is no longer only a diplomatic issue. It is a direct threat to their goods, income and centuries-old trading tradition.

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Jun Hao

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