6 years on, Shipki La trade resumes: Everything sells, but pashm is priced out

The fine undercoat of the Changthangi goat, found across the Tibetan Plateau and Ladakh’s Changthang region, pashm has for centuries travelled through Himalayan trade networks before being processed and woven into high-value pashmina products, particularly in Kashmir. Tibet has traditionally been an important source of the raw fibre, obtained from nomadic pastoral communities.

For the traders from Kinnaur and Lahaul-Spiti, therefore, pashm is not merely another commodity on a list of goods. It is one that gives the old trade route much of its economic significance. But their ability to acquire it is now constrained by another ceiling: the permitted trade value

The first batch of 16 traders from Kinnaur and Lahaul-Spiti returned Monday with carpets, shoes, watches, sweets and Chinese crockery, having bartered agricultural implements, rice, flour, dry fruits, spices, kerosene, handicrafts and handloom products.

“ We sold almost all the products we had carried… In return, we brought carpets, shoes, watches, sweets and Chinese crockery but not pashm wool,” said Pasang Cheering, a trader from Dubling village.

The reason is simple: pashm has become too expensive for a trade route that still runs on barter. Before the route was suspended, raw pashm cost around Rs 12,000-15,000 a kg, depending on quality. Traders now say sellers in Tibet are quoting Rs 30,000-35,000.

“The first batch has returned safely, but unfortunately we could not bring raw Pashm, which is the most sought-after commodity in this trade. It has become too expensive for our traders to procure through the barter system,” said Hishey Negi, president of the Indo-China Traders’ Union.

Under the Shipki La arrangement, traders cannot simply pay cash or transfer money digitally. Goods must be exchanged for goods. Over the last six years, the cost of raw pashm has gone up. The problem has been compounded by the appreciation of the Chinese Yuan against the rupee. “One Yuan is now worth around Rs 15, making purchases expensive for Indian traders,” Negi said.

There is another constraint. Indian traders are currently permitted to trade goods worth Rs 1 lakh each. Nima said traders had initially been told the limit would be Rs 2 lakh, only to be informed by customs officials before departure that it was Rs 1 lakh.

For pashm, the economics become even harder. After cleaning and carding, only around 150-250 grams of usable fine pashmina is obtained from a kilogram of raw fibre, Negi said.

The fine undercoat of the Changthangi goat has for centuries moved through Himalayan trading networks before being processed and woven into high-value Pashmina products, particularly in Kashmir. For traders in Kinnaur and Lahaul-Spiti, pashm has long been among the most valuable commodities on the route. The reopening of the route, while reviving the old trade has also exposed the limits of its traditional rules.

According to Kinnaur Deputy Commissioner Amit Kumar Sharma, Shipki La trade continues to follow the barter arrangement dating to 1697 between Tibet and the erstwhile Bushahr princely estate. The arrangement, locally associated with the traditional oath known as “Gamgya”, governs trade among registered traders from border villages including Namgia, Chhupan, Nako, Pooh and Chango. Unlike the Nathu La and Lipulekh routes, where monetary transactions are permitted under modern protocols, Shipki La continues to retain its barter-based character.

The route itself has had a chequered history. It was shut after the 1962 India-China war and reopened between 1992 and 1994 under a bilateral protocol. It was again suspended in 2019 after the outbreak of the Covid-19 pandemic, leaving traders on both sides cut off for nearly six years.

The first batch was flagged off from the Chupan Trade Centre in Kinnaur on August 1. Traders travelled by vehicles up to Indira Point, about 2 km from the trade centre, before using mules and walking down a roughly 5-km non-motorable stretch to reach Ship Ki. They were required to remain at the designated trade centre and were not permitted to carry mobile phones or cameras for security reasons. They were also directed to return within 72 hours.

For Nima, the journey itself brought back something the six-year closure had taken away. “It was like a fair on the other side,” he said, recalling the crowds and curiosity among residents on the other side.

The traders hope pashm can still return to the trade list in subsequent rounds. Some traders at Ship Ki have offered to arrange the fibre if Indian traders can commit to sufficient demand and accept the higher price. Cheering expressed hope. “The established cross-border traders were missing this time. They will come in the coming days,” he said.

Bhim Singh Negi, tehsildar Pooh and Indian Trade Officer, said all 16 traders in the first batch had returned safely after completing immigration, customs and security formalities. The next batch is expected to leave Wednesday, subject to clearances.

The trading season is scheduled to continue until November 30, weather and administrative conditions permitting.