India Suspends LoC Trade Citing ‘Terror’ Activities

New Delhi: India on Thursday suspended, with immediate effect, trade across the Line of Control (LoC) in Jammu and Kashmir, saying it was being used by “unscrupulous and anti-national elements” for sneaking in hawala money and weapons from the territory under Pakistani occupation to “fuel terrorism and separatism in the country.”

The Ministry of Home Affairs said a probe conducted by the National Investigation Agency (NIA) had revealed that some individuals, who have crossed over to Pakistan and joined militant organisations, have opened trading firms there and these were under the control of militant organisations and were engaged in the LoC trade.

Noting that India had already withdrawn the Most Favoured Nation status to Pakistan after the Pulwama terror attack, it said the latest action has been taken after receipt of inputs that "in order to evade the consequent higher duty, LoC trade is likely to be misused to a much larger extent".

"It has, therefore, been decided by the government to suspend the LoC trade at Salamabad and Chakkan-da-Bagh in Jammu and Kashmir with immediate effect."

Meanwhile, "a stricter regulatory and enforcement mechanism is being worked out and will be put in place in consultation with various agencies", it said, adding the issue of reopening of LoC trade will be revisited thereafter.

The LoC trade, meant to facilitate exchange of goods of common use between local populations across the LoC in Jammu and Kashmir, is allowed through two trade facilitation centres located at Salamabad in Baramulla district and Chakkan-da-Bagh in Poonch district. 

The trade takes place four days a week and is based on barter system and zero duty basis.