Bordering on Happiness · Bordering on Happiness An Assessment of Socio-Economic Impacts of...

Bordering on HappinessAn Assessment of Socio-Economic Impactsof Bangladesh-India Border Haats

Bordering on HappinessAn Assessment of Socio-Economic Impactsof Bangladesh-India Border Haats

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Contents

Abbreviations 7

Contributors 9

Acknowledgements 11

Preface 13

Executive Summary 15

Chapter 1 Introduction 31Locations of the Border Haat 33

Objectives and Purposes 34

Economic Impacts of the Border Haat 34

Chapter 2 Border Markets: Insights from around the Globe 36Definition of Cross border Trade 36

Benefits of Cross-border Trade 37

Barriers to Cross-border Trade 38

Cross Border Trade Around the World 41

Chapter 3 Insights on Livelihood 50Impact of the Border Haat on Daily Livelihood 50

Impact of the Border Haat on Profits and Re-investment 54

Impact of the Border Haat on Total Income 56

Influence of Primary Occupation on Engagement at the Border Haat 61

Influence of Socio-economic Status on Engagement at the Border Haat 63

Status of Participation of vendors and vendees at the Border Haat 66

Influence of Ease of Location Access on Engagement at the Border Haat 68

Chapter 4 Insights on Safety and Informal Trade 71Status of Law and Order at the Border Haat 71

Status of Security Personnel at the Border Haat 73

Impact of the Border Haat on Local Informal Trade 73

Chapter 5 Insights on Gender Aspects 76Status of Gender Representation at the Border Haat 76

Status of Gender Specific Profits at the Border Haat 79

4 Bordering on Happiness: An Assessment of Socio-Economic Impacts of Bangladesh-India border haats

Influence of Educational Qualifications on Income at the Border Haat 81

Status of Women Participation at the Border Haat 82

Status of Women Participation When Issuing Vendor Cards 84

Status of Spending Pattern of Profits from the Border Haat 86

Status of Spending Priorities of Female and Male Vendors 87

Status of Decision Making Regarding Income from the Border Haat 88

Enhancing Female Participation at the Border Haat 90

Chapter 6 Insights on Items, Regulations and Procedures 92Status of Awareness among Vendors about the Item List at the Border Haat 93

Status of Vendor Decisions Regarding Items for Sale at the Border Haat 96

Status of Most Profitable Items Sold at the Border Haat 98

Status of Need to Alter Item List for the Border Haat 102

Status of Vendor Interaction with officials at the Border Haat 102

Impact of Socio-economic Status on Vendor Interaction with officialsat the Border Haat 103

Status of Addressal of Procedural Issues at the Border Haat 103

Status of Informal Mechanisms for Addressing Problems at the Border Haat 106

Status of Ease of Conducting Trade at the Border Haat 108

Chapter 7 Insights on Infrastructure 111Status of Various Physical Infrastructures at the Border Haat 116

Recommendations 117

Chapter 8 Positive Outcomes 119Impact of the Border Haat on People � to � People Connectivity 119

Impact of the Border Haat on Local Physical Infrastructure and Connectivity 122

Importance of the Border Haat in presence of Alternate Formal TradeChannels 122

Initiatives by Governments on Improving the Border Haat Mechanism 124

Chapter 9 Conclusion and Policy Recommendations 126

Glimpses of Border Haat Captured during Field Visits by CUTS 137

References 144

Endnotes 145


List of Tables and Charts

TablesTable 3.1: The direct impact of Border haats on Income of vendors(India and Bangladesh) 51

Table 3.2: Responses of transporters on their business on haat days 60

Table 3.3: Responses of transporters on their business on non-haat days 60

Table 3.4: Occupation wise average of border haat investments andcorresponding profits of the vendors 61

Table 3.5: Source of goods for sale at the border haats and their impact onborder haat earnings 62

Table 3.6: Cost components for vendors at border haats versus costsof selling in Local Markets 62

Table: 3.7: Observations on the actual responses of high income earnersat the border haat 64

Table 3.8: Mode of transport to Border haat for goods of vendors 69

Table 3.9: Mode of transport to other local markets for Vendors 69

Table 3.10: Modes of Transport availed by vendees to reach border haats 70

Table 5.1: Gender specific average income/profit from border haat andNon-Haat and the respective shares as a percentage of total income(Balat, Meghalaya, India) 80

Table 5.2: Classification of Income bands according to Gender acrossIndia haats 80

Table 5.3: Gender � wise education level and border haat Profit margins(India side) 82

Table 5.4: Spending patterns and its impact on average expenditure heads 89

Table 6.1: Containing list of items in each haat on both sides 93

Table 6.2 Major items sold at border haats in Bangladesh and in Indiaand their corresponding profitability 99

Table 6.3: Border haats in India: major problematic issues at each haatand frequency of BHMC meetings to address them 105

Table 6.4: Border haats in Bangladesh: major problematic issues ateach haat and frequency of BHMC meetings to address them 106

Table 7.1: Infrastructure: Srinagar (India) � Chagalnaiya (Bangladesh) 112

Table 7.2: Infrastructure: Kamalasagar (India) � Kasba (Bangladesh) 113

Table 7.3: Infrastructure: Kalaichar (India) � Kurigram (Bangladesh) 114

Table 7.4: Infrastructure: Balat (India) � Sunamganj (Bangladesh) 115

Table 7.5: Infrastructure: At a glance 116


Table 8.1 Perceptions of Indian stakeholders about people from Bangladesh 121

Table 8.2 Perceptions of Bangladesh stakeholders about people from India 122

Table 9.1: List of some functional and proposed border haats onIndia-Bangladesh border 127

Table 9.2: Income of Labourers 128

Table 9.3: Income of Transporters 129

Table 9.4: Occupation-wise average of border haat investments andcorresponding profits of the vendors 130

ChartsChart 3.1: Income of vendors (India) 52

Chart 3.2: Income of vendors (Bangladesh) 52

Chart 3.3: Percentage of Border haat income as a share of total incomefor the Vendors 57

Chart 3.4: Percentage of border haat income as a share of total monthlyincome of Labourers 59

Chart 3.5: Percentage of Profit (India and Bangladesh) 63

Chart 3.6: Average border haat profit in relation to the education level 65

Chart 3.7: Average non-haat income in relation to the education level 66

Chart 5.1: Indian respondents (by type and gender) 77

Chart 5.2: Bangladeshi respondents (by type and Gender) 78

Chart 5.3: Spending pattern on total income (India side Vendors) 87

Chart 5.4: Spending Pattern on Total Income (Bangladesh sideMale vendors) 88

Chart 5.5: Decision makers on haat income expenditure(India and Bangladesh side Vendors) 88


Abbreviations

ASEAN: Association of Southeast Asian Nations

BH: border haat(s)

BDT: Bangladeshi Taka

BHMC: border haat Management Committee

BSTI: Bangladesh Standards and Testing Institution

CUTS: Consumer Unity & Trust Society

FDI: Foreign Direct Investment

FSSAI: Food Safety and Standards Authority of India

FTA: Free Trade Agreement

GDP: Gross Domestic Product

GMP: Good Manufacturing Practice

GST: Goods and Services Tax

INR: Indian Rupees

JBHMC: Joint border haat Management Committee

MOU: Memorandum of Understanding

NTM: Non-tariff Measure

SAARC: South Asian Association for Regional Cooperation

SAFTA: South Asian Free Trade Area

SARSO: South Asian Regional Standards Organization

SPS: Sanitary and Phytosanitary

TBT: Technical Barriers to Trade

TR: Technical Requirement

US$: United States Dollar

UNCTAD: United Nations Conference on Trade and Development

VAT: Value Added Tax

WHO: World Health Organization

WITS: World Integrated Trade Solution

The exchange rates used in the report: 1US$ = INR70; 1US$ = BDT84 and 1INR = BDT1.20


Shaheen Ul AlamShaheen is Project Coordinatorof Unnayan Shamannay,Dhaka, Bangladesh. He hasmore than 20 years of workingexperience. He coordinatesresearch studies, field research,networking and donor mapping.He holds a Master�s in SocialScience from University ofRajshahi.

Sumanta BiswasSumata is a Senior ProgrammeOfficer at CUTS Internationaland has been associated withthe organisation since last 11years. He has been working inthe domains of field research,advocacy, networking andoverall project managementwhich has helped him to evolvehis capacity in severaldimensions of growth. He hadundertaken several fieldresearch assignments on theissue of regional trade andconnectivity, energy, health, etc.

Indranil BoseIndranil is an AssociateProfessor at Department ofPolitical Science in St. Xavier�sCollege, Kolkata. A recipient ofNational Scholarships and theJubilee Prize, he was awardedan International Fellowship byRotary International toparticipate in a Group StudyExchange Programme in Texas,USA in 1995. He has alsoparticipated at various nationaland international seminars and

his current research areasinclude Political Theory, PoliticalEconomy and InternationalRelations.

Bipul ChatterjeeBipul is Executive Director ofCUTS International and headsCUTS Centre for InternationalTrade, Economics & Environment.Prior to joining CUTSInternational, he worked atseveral economic policy thinktanks in New Delhi, such asNational Council for AppliedEconomic Research, and Institutefor Economic Growth. He hasmore than 20 years ofexperience on issues related tointernational trade anddevelopment, especially onpolitical economy of trade andeconomic policy reforms,particularly pro-poor aspects ofreforms.

Sayandeep ChattopadhyaySayandeep is a Senior ResearchAssociate at the AsianConfluence, an Indian think tank.He has research interests in thearea of trade and development,connectivity, regional integration,transboundary water governanceand political economy. He is oneof the authors of a recent booktitled, �A Glass Half Full � ThePromise of Regional Trade inSouth Asia�, published by theWorld Bank Group. His recentwork focuses on physical,institutional and people-to-peopleconnectivity with a major

Contributors


emphasis on political economyand cross-border trade and valuechains in the Bay of Bengalregion. He worked with CUTSInternational as a SeniorResearch Associate; and Institutefor Social and Economic Change,Bengaluru. He has done hisMaster�s in Economics fromSymbiosis InternationalUniversity.

Robart Shuvro GudaRobart is Senior Researcher ofUnnayan Shamannay, Dhaka,Bangladesh. He has experiencein field research, data analysis,monitoring etc. He holds MSS,Department of Economics,University of Dhaka.

Md. Mahabub HasanMd. Mahabub is SeniorResearcher of UnnayanShamannay, Dhaka, Bangladesh.He has experience in fieldresearch, coordination andimplementation. He has aDoctorate in Political Science,University of Rajshahi,Bangladesh.

Prithviraj NathPrithviraj is a Senior Fellow atthe Asian Confluence, an Indianthink-tank. He has researchinterests in the areas of regionalcooperation, connectivity, tradeand development. His recent andcurrent research focuses onphysical, institutional andpeople-to-people connectivity inthe Bay of Bengal region and thelarger Indo-Pacific, withparticular emphasis on politicaleconomy of transboundary water

governance and cross-bordertrade and their impact onregional integration parametersand local economicdevelopment. He is also engagedas a consultant with the AsianDevelopment Bank working onborder infrastructuredevelopment for regionalconnectivity. His other workspans energy governance,renewable energy andsustainable development issues.His earlier engagements includethose with CUTS Internationaland the Department of MunicipalAffairs, Government of WestBengal. He did his Master�s inBusiness Management aftergraduating in Economics fromUniversity of Calcutta and haspublished several researchpapers and articles. Prithvirajlikes birding, trekking, exploringnew cultures and cuisines andvolunteering for causes close tohis heart.

Sayantan SenguptaSayantan is Manager, ClimateChange Program, Earth DayNetwork. He has more than eightyears of working experience inthe areas of renewable energy,energy access, sustainability,climate change, regionalintegration, livelihood creation,poverty alleviation andgrassroots� development. He alsohas experience of working in theareas of facilitating internationaltrade. He is a B.Tech in ElectricalEngineering and has a Master�sDegree in Energy Management.He worked with CUTSInternational as an AssistantPolicy Analyst.


Acknowledgments

This publication is the result of anextensive study on �border haats�that have been set up along theborder between the north-easternpart of India and Bangladesh, bythe governments of the twocountries since 2010. The study,supported by the World Bank,has been carried out by CUTSInternational in partnership withUnnayan Shamannay,Bangladesh.

The work involved extensivefieldwork carried out on the basisof a questionnaire survey thatengaged the research team ininteracting with approximately400 respondents for the purposeof gathering data on variousaspects of activities in andaround these border haats.

Therefore, at the outset, we wouldlike to extend deep gratitude toall the respondents who sharedtheir views, perceptions,opinions, problems, difficultiesand stories with our study team.Without their contribution, thestudy would not have had theraw material for investigationand analysis. We cannot thankthem enough.

We are very grateful to theWorld Bank who providedsupport and intense involvementin conceptualising and executingthis study. However, all opinionsexpressed in the report are solelythose of CUTS.

Many subject experts andrenowned policy champions havemade their valuable suggestions.We offer our sincere thanks to allof them. They are:

� Bandhana Deori,Commissioner of Customs(Preventive), North EastRegion, Shillong, Departmentof Revenue, Government ofIndia

� Bhupinder Singh Bhalla, JointSecretary (SAARC/SouthAsia), Department of Customs,Ministry of Commerce andIndustry, Government of India

� Mohini Datt, OperationsOfficer, South Asia, RegionalIntegration, World

� Sanjay Kathuria, LeadEconomist & Coordinator,South Asia RegionalIntegration, World Bank.

� Nadeem Rizwan, Consultant,Macroeconomics, Trade, andInvestment Global Practice,World Bank

� Priya Mathur, Consultant,Trade and CompetitivenessGlobal Practice, The WorldBank Group

� Swapna Debnath, AdditionalDirector, Department ofIndustries & Commerce,Government of Tripura

� Swapan Mitra, Manager,Department of Industries &Commerce, Government ofTripura

� Shakti Sinha, Chairman, SouthAsian Institute for StrategicAffairs


� Md. Shafiqul Islam, AdditionalSecretary, Ministry ofCommerce, Government ofBangladesh

� Md Waliur Rahman, Director(South Asia-2), Ministry ofForeign Affairs, Governmentof Bangladesh

� A K Enamul Haque, Professor,East West University, Dhaka,Bangladesh

� Shirin Akhter, Member ofParliament, Bangladesh

� Pratim Ranjan Bose, Chief ofBureau, The Hindu - BusinessLine

� Szarita Laitphlang, ViceChairperson, MeghalayaResource and EmploymentGeneration Council, Shillong,Meghalaya

� Subir Bhoumik, South AsiaCorrespondent & SeniorEditor, BD News

� K N Syiem, Acting SyiemBhowal Syiemship, MawpenVillage, East khasi Hill,Meghalya

� Winfred Warshong, DeputyDirector, Directorate ofCommerce & Industries,Government of Meghalaya

� Sujit Chakraborty, BureauChief, Indo-Asian NewsService (IANS), Agartala

� District Magistrate andCollector, Belonia, SouthTripura

� Additional District Magistrate,Sepahijala District,Bishramganj, Tripura

� Inspector General, BorderSecurity Force, MeghalayaFrontier

� Inspector General, BorderSecurity Force, TripuraFrontier

We also thank our colleagues atCUTS Calcutta Resource Centrewho contributed to this project.The editing of this book is carriedout by Aparajita Gupta,proofreading and layout byMadhuri Vasnani and RajkumarTrivedi. We thank all of them.

Many other names deservespecial mention but preferanonymity. We thank them all fortheir support. Finally, any errorthat may have remained is solelyours.

Project TeamCUTS International


Preface

Bipul ChatterjeeExecutive DirectorCUTS International

The border haats (border markets) wereenvisaged by the governments of India and

Bangladesh as an instrument primarily to generatelivelihood for people at the border areas of the twocountries that are marred with limited access todevelopment. The Haats are also expected tochannelise a part of the informal trade that thrivesalong the borders of the two countries, viz, Indiaand Bangladesh.

Four such haats are presently in operation at theIndia-Bangladesh border: two in Meghalaya(India)-Rangpur/Sylhet (Bangladesh) sub-regionand the other two in Tripura (India)-Chittagong(Bangladesh) sub-region. These four haats havebeen reported to register a trade figure of Rs 17crore in the last five years. The achievement ofthese Haats has also been acknowledged by theIndia-Bangladesh Joint Committee on border haatsin its first meeting in Agartala, Tripura in July 2018.

CUTS, together with Unnayan Shamannay, ourpartner in Bangladesh, and with the support of theWorld Bank, has undertaken a study of borderhaats in order to understand and examine theireffects on poverty alleviation through income andemployment generation and other multiplier effectsincluding the formalisation of informal trade. Thestudy also seeks to comprehend the genderimplications of border haats.

This study involved several visits to all four haats, incourse of which attempts were made to gatherinsights into various aspects of activities in and

around those haats through interactions andconversations with different stakeholders:vendors, vendees, transporters, labourers,officials, opinion leaders, villagers and residentson both sides of the border. A comprehensivequestionnaire survey was done, coveringapproximately 400 respondents to gather dataand information on the economic, social andpolitical impact of haats. This survey wascomplemented by a video recording of variousfacets of border haat trade. The study teamencountered several families and relations whogot separated as a result of the fencing alongthe border. The border haats offered them anopportunity to meet up after years ofestrangement and renew their bonds andfriendships. One wonders if there is a betterway of strengthening ties between two countries!Indeed, border haats have impacted beyondeconomic and trade relations.

Our study has clearly shown that border haatshave cast a positive impact on the standards ofliving of the local people. By offering incomegeneration and enhancement opportunities toseveral categories of stakeholders, they havecontributed to poverty alleviation in the area.Besides, people-to-people connectivity, cross-border relations and security needs have beenaddressed, alongside lowering of informaltrade.

Border security officials have also confirmed thatbootleg informal trade has been arrested to a


large extent in those locations. The informal vendorsin Kalaichar has taken refuge to the formal route,while the volume of informal trade carried out in thenearby places of Mahendraganj and Dalu (there areno haats in these places) remains high, the CUTSstudy has found.

In this context, it is important to mention that it is onlyin the course of implementation of various policiesand plans, that inadequacies and loopholes in rulesand regulations get highlighted. This study on borderhaats has been able to bring to the forefront severalmanagerial deficiencies and infrastructuralinadequacies which need to be addressed even asthe governments of India and Bangladesh decides onthe establishment of more such haats.

A major area of improvement pertains toinfrastructure. When a haat is established in an areawhich is prone to climatic hazards like excessiverainfall or floods, one should consider the creation ofconcrete vending platforms and adequate shelters forvarious stakeholders to seek refuge. Other areas ofinfrastructural development that could contribute tobetter functioning of the haats include electricalconnectivity, improved approach roads, availabilityof water, particularly drinking water and properlyfunctioning toilets. One ought to bear in mind thatfamilies from both sides of the border come to thehaats not only for economic business but also tosocialise and meet up with family and friends.

While improved infrastructural facilities can boostefficiency in the conduct of business at haats, theycan also increase women participation. One could,in this regard, think of institutional arrangements

towards providing financial assistance or loans towomen vendors. Encouraging womenrepresentation in the border haat ManagementCommittee and also in the informal committees ofvendors that handle disputes and grievances athaats, could augment women participation.Mandating the inclusion of a specific number ofwomen vendors in the list of vendors could alsohelp in this regard.

Given the general ethos of trade facilitation thatis visible today, the institutionalisation of cross-border transactions trade through suchinstruments as border haats is a welcomeinitiative by governments of India andBangladesh. This study has highlighted findingsfrom the ground for policymakers in bothcountries to take note of. It acquires addedrelevance at a time when the governments ofboth countries are poised to establish many moreborder haats along the India-Bangladesh border.For people living in the remote border areas withlow indices of human and economicdevelopment, this disposition of governments isone that brings to them hope and the promise ofa better future.

In conclusion, I thank the World Bank forsupporting this project and Unnayan Shamannayfor partnering with us in carrying it out. I wouldlike to reiterate that all opinions expressed in thereport are solely those of CUTS. I thank mycolleagues who executed it on the ground. Welook forward to making further contributions tofuture policy discourse on this subject.


Executive Summary

India shares with Bangladesh 4,100 kilometresof the border and, thus, there is immense

potential for tapping and enhancing bilateraltrade relations. In fact, Bangladesh is India�sbiggest trade partner in South Asia; and ranks26th among all of the Indian trading partners. TheGovernments of the two countries had initiatedthe idea of border haats (local markets) along theIndo-Bangladesh border with the objective ofhelping people living in border areas to markettheir local produce and also as a confidence-building measure among the citizens of the twocountries. The commodities were, therefore,specified but the Governments are flexible withregard to the expansion of the list of items, whichcan be traded in these places. On the whole, theexperience of the existing border haats � in theTripura-Chittagong and Meghalaya-Rangpur/Sylhet regions � has been positive.

Livelihood Issuesborder haats have directly impacted incomegeneration for all the participating stakeholders(especially vendors). It has not only given rise tonew vocations of work in the interiors but hasalso created new opportunities for people toengage themselves with cross-border trade in thecapacity of labourers, transporters, etc. Trading inborder haats generally allows three to fourlabourers/staff/helpers for each of the 25officially authorised vendors from either side. Thisresults in the participation of at least 200 peoplefrom both sides of the border in each of theborder haats. In addition to these people who arelargely attached with the sellers, there are alsovendees who get involved in such trade not justfor self-consumption but for securing an incomeby selling goods purchased at the Haats, in otherplaces outside.

It is to be noted that the border haats, which areheld once a week at present, have not stood in theway of vendors so far as their participation in othereconomic engagements is concerned. Thus, thedirect impact of the border haats on vendors can beestimated by differentiating the present income fromHaats and other sources) and the previous incomethat used to accrue exclusively from their otherengagements.

Our field survey records that profit from theirengagement with trading in border haats constitutes73 per cent of the average monthly income of theIndian vendors. This explains the growing demandfor vendor cards on the Indian side of the border.Looking at the income figures of the vendors priorto the commencement of the Haats and after thecommencement of such trade, we find that theaverage growth rate of the income of these Indianvendors is nearly 300 per cent, with the maximumincrease being noticed in the case of the vendors ofSrinagar Haat in Tripura. This can be explained byless regulation and official intervention on the partof officials in Srinagar, an increasing demand forIndian products and supply to match. Indianvendors have also been found to trade in bulkquantities, particularly with regard to cosmetics andtoiletries, spices, baby food, and vegetables andfruits.

It is clear that on the whole other income ofBangladeshi vendors is much higher than that of theIndian vendors. Our fieldwork experiencecorroborates that people on the Bangladeshi sideare prosperous and display higher averagepurchasing capacities than their Indiancounterparts. border haats are a supplementarysource of income for Bangladesh vendors. However,for vendors in Kurigram, Bangladesh(corresponding to Kalaichar in Meghalaya, India) alittle under half of their total monthly income comesfrom profits they make at this border haat.


On the other hand, for those in Sunamganj(corresponding to Balat in Meghalaya, India), theHaat provides a little over a third of their monthlyincome. This may be explained by the fact that theBangladeshi vendors mostly sell melamine (bowls,dishes, etc.), plastic items (tables, chairs, etc.),vegetables, fruits, and processed food items forwhich there is a great demand among Indianvendees who buy those products not only for theirdomestic consumption but also for sale in local/nearby markets and even in distant Shillong withlucrative profit margins. It may be noted that thepercentage share of profit from trading in borderhaats in their total monthly income is greater incase of vendors of Baliamari haat in Bangladeshcompared to other Haats bordering Tripura inIndia.

On the question of whether vendors are keen to re-invest their profits from trading in border haats forfurther expansion of their business, it is found thatin Tripura, vendors generally re-invest such profittowards the expansion of their business in borderhaats. In fact, some of the �vendors� in the Srinagararea seem to be keen on re-investment as much aspossible because they are confident about havingtheir vendor cards renewed upon expiry of theirexisting validity.

It seems that vendor cards are more readilyavailable to those who can pursue the rightchannels and exert influence upon the issuingauthorities and also have the ability to carry out abusiness all year round. The keenness to securevendorship in future Haats cannot be de-linkedfrom their inclination to re-invest their profit fromtrading in border haats so that they can expandtheir business in border haats. It is also apparentthat they are beginning to look at border haats asa possible permanent source of income in thefuture.

Therefore, it is evident that the hope for therenewal of vendorship acts as a definite incentivefor re-investment to augment business at the borderhaats. This element of apprehension on the part ofthe vendors is not altogether unfounded. Forinstance, women vendors at Balat had beeninsisting on more vendorship in favour of womenand they were ultimately able to prevail uponmembers of the informal committee to include

more women vendors. On the basis of inputs fromthe informal committee, the local administration ofBalat (Meghalaya, India) has shuffled the vendors�list as recent as April 2016 to incorporate morewomen vendors. As a result, 12 out of the 25authorised vendors in this Haat are women. In theprocess, some of the male vendors had to facetermination of their vendorship.

On the Bangladesh side of Chaggalnaiya andKasba (corresponding to border haats in Tripura,India), vendors seem to re-invest more on businessother than border haats as the Haats continue tobe a secondary source of income. In general, thisis because of less demand for Bangladeshi goodson the part of Indian vendees and possiblybecause of comparatively less purchasing power ofthe Indian vendees. Bangladeshi vendors display aclear lack of enthusiasm about expanding theirbusiness for trading in border haats.

Our survey also reveals that vendors who haveagriculture as their primary occupation cansometimes earn profits as high as 50 per cent fromtheir trading in border haats. By contrast, localvendors who sell non-agricultural commodities likecosmetics and other consumer goods mostlyfunction as middlemen, buying goods fromdifferent places and then putting them up for salesat the Haats. In such cases, profit margins are less.These vendors, therefore, try to increase their profitmargins by increasing the quantum of goods fortrading at the Haats � buying in bulk and sellingwholesale because demand for these consumergoods never seem to deteriorate.

Our finding that there is no correlation betweenformal educational achievement and successfulbusiness stories at the Haats perhaps holds animplication for policy-makers. In this part of theworld, where means to afford formal educationare often unavailable with major segments of thepopulation, particularly those living in remoteareas, poverty alleviation is a major concern ofgovernments. Perhaps, more people can beencouraged to participate in income-generatingactivities like trading in border haats and thegovernment can even contemplate supportivemeasures and institutions to build their capacity toparticipate in such trade more meaningfully.


So far as the percentage share of income fromborder haats in the total monthly income of thelabourers is concerned, Indian labourers seem tobenefit more from participation in such trade. Thehighest paid labourers are seen to belong to theKalaichar-Baliamari region, particularly becauseof the demand for labour-intensive work there. Forexample, the last 200 meters of the approach tothe border haat at Kalaichar is undulating andrough terrain, without cement or concrete, makingit difficult even for hand-carts to traverse. Thisnecessitates substantial loads to be carried on theheads of labourers.

Baliamari Haat, on the other hand, is a flood-prone region with activities getting hamperedduring monsoon season. The existence ofwaterways makes transportation difficult andgoods are often carried on boats. Thus, the wagerates are understandably high in Baliamari wherethe share of labourers income from the Haat goesup to 27 per cent of their total monthly income.This is in contrast to Chhagalnaiya andSunamganj, where such income share hovers over16-19 per cent of their total monthly income.

As far as the participation rate in the border haatsis concerned, most of the vendors on the Indianside are found to be quite regular. The basicmotivation behind such regular participation is theprospect for earning substantial profits from suchtrade, which sometimes exceeds their otherincome. It may be recalled that vendors inBangladesh reap a substantial income from othersources and, in general, they are less participativethan their Indian counterparts. However, inChagalnaiya and Sunamganj, vendors were foundto be more participative and regular than at otherborder haats in Bangladesh. This regularity maybe attributed to better infrastructural conditions likeeasy access to the border haats and bettertransportation facilities.

For the vendees, 37 out of the 60 interviewed onthe Indian side regularly visited the Haats. Theyare mostly from Balat (corresponding toSunamganj, Bangladesh) and Srinagar(corresponding to Chhagalnaiya, Bangladesh),where certain Bangladeshi goods are in greatdemand. The average distance covered by thesevendees to reach the Haat premises is 2.7 Kms

from their residences. Of the rest, ten vendeesattend the Haat, twice a month, and they have tocover an average distance of 11.9 Kms. Thesevendees are mostly from Kamalasagar andKalaichar, respectively in Tripura and Meghalaya.

The trend of irregular participation is mainlyvisible at the Kamalasagar Haat, which is only 24Kms away from Agartala, the state capital ofTripura. The local folk are mostly tribals and poor,and their generally low purchasing powerexplains their irregular visits to the Haats. Also, inview of the proximity to the state capital, one canunderstand the motley crowd that can bewitnessed at the Kamalasagar Haat.

Apart from the regular stakeholders, occasionalvisitors also flow in from Agartala and as such thelocal vendees are not the only vendees. In theMeghalaya Haats, vendees also come not only forself-consumption but also often as vendors, buyingat the Haat for sale in other places with theprospect of reaping good profit margins. Distanceby itself is not a sufficient deterrent to regularparticipation on the part of vendees. Twosignificant policy implications follow: first, thestipulation of residence within the proximity of fivekilometres radius of the border haats should bewithdrawn in case of vendees; second,infrastructural facilities like improvement of roadsand approaches to the Haats and other facilities atthe Haats, like washrooms and restrooms, ought tobe looked into.

In the case of Bangladesh, we also notice that asubstantial number of vendees travel distanceswell beyond 5 Kms to reach the border haats.Since in many of the Bangladeshi Haats, bothvendors and vendees have drawn attention tohazardous journeys in flood-prone areas andbecause of the presence of water bodies,infrastructural facilities at those Haats need to belooked into with urgency and vigour.

Issue of Security and Informal TradeA number of stakeholders have drawn attention tocases of shoplifting and theft of goods within theHaat premises. This complaint has come mainlyfrom the vendors and the labourers. Vendors fromboth India and Bangladesh seem to suggest that


often a large quantity of goods is handled byindividual vendors stationed in their respectiveenclosures. During busy hours, when vendeescrowd around a particular Haat in large numbers,it becomes very difficult to detect cases ofshoplifting and this is becoming a recurrentproblem at the border haats.

However, the Haat officials, particularly the IndianBorder Security Force (BSF) personnel, who areresponsible for monitoring and managing activitiesat the border haats have confirmed that as yet theyhave not encountered any major legal offence, norany disruption of the prevailing order. They informthat in case of petty offences, the usual practice isto hand over the miscreant to the local police fornecessary action. However, the Haat officials andBSF personnel are also drawing attention to theincreasing volume of business at the border haats,in view of which they suggest that more personnelmust be deployed for ensuring improved securityand order at those places. Their counterpart -Border Guard Bangladesh � also acknowledges thegrowing volume of trade and business at theborder haats in view of which they too suggest theneed for additional personnel to strengthen securityand vigilance over various aspects of trade in theborder haats.

As far as informal trade is concerned, trading inborder haats has immensely benefited vendees andsellers from both sides of the border and it has alsoresulted in providing earning opportunities forother stakeholders like labourers and transporters.The institutionalisation of trade in such formalmechanisms has of course lessened the scope fortrade between the concerned people to flourishthrough informal channels. The Kalaichar Haat inMeghalaya is a case in point. Prior to thecommencement of this Haat, trade between theIndians and the Bangladeshis flourished throughthe well-known channel of Mankachar, situated at adistance of 15-20 Kms from Kalaichar. The goodsthat used to flow through Mankachar includedwine, local tobacco products like bidi (a smallerversion of cigarillo, which is popular among themasses in the Indian sub-continent), spices likejeera (cumin), sarees and other garments, sugar,and tea. The goods that travel to India form theBangladesh side included biscuits and bakeryitems, local fruit and vegetables, and fish.

Subsequent to the establishment of the Kalaicharborder haat, the volume of traffic that used to flowto Mankachar has substantially lessened and, infact, it is almost non-functional. Our contention thatinstitutionalisation of trade through border haatswill substantially diminish the flow of trade throughinformal channels is reinforced by the case ofDalu. Dalu in Meghalaya is another channel ofinformal trade between the two countries and hasflourished since a long time. But, unlike in the caseof Mankachar, there is no border haat in theproximity of Dalu, which allows informal trade toflourish through this location without much dilution.It is interesting to note that BSF personnel posted inDalu point out that no official step was taken todecrease the flow of trade that used to happeninformally through Mankachar. That happened asa natural consequence to the establishment of theborder haat at Kalaichar.

It is, therefore, logical to say that formal cross-border trade is a natural urge among those peopleresiding in border areas who are not self-sufficientand so when this need is recognised through theinstitutionalisation of formal channels, informalchannels either reconcile themselves to a much-reduced scope or they die a natural deathaltogether.

The trade that used to flourish informally hasdecreased substantially with the establishment ofborder haats. Most of the items that used to travelinto each other�s territory now happen throughborder haats. BSF personnel confirm that with theerection of the fence along the Indo-Bangladeshborder, problems of extortion and theft have alsocome down perceptibly. Smuggling of forbiddenitems like drugs and opium has also come down byabout 60-70 per cent. To combat this problem inparticular, BSF personnel contend that bordercheck posts in the vulnerable places ought to bemanned by local police personnel equipped withmetal detectors and sniffer dogs. The placesthrough which informal trade continues to persistinclude Sonamura, Radhanagar, Kathulia,Harbatoli and Chitabari in Tripura but what needsto be borne in mind is that smuggling has reducednoticeably in respect of all essential commodities.


Therefore, the institutionalisation of cross-bordertrade through formal channels like border haatsalongside the diminution of informal channels alsobrings with it the assurance that trade of unwelcomecommodities like drugs and explosives will besubstantially diminished if not be eradicatedaltogether.

Gender Dimensionsborder haats in Tripura are conspicuous by theabsence of women vendors and women labourers.When the male vendors at the Tripura Haats wereasked why they were not involving womenparticipants, they seem to suggest by and large that�Vending at a local shop is one thing, but vendingat the border haats is a different activity altogether.This is because all kinds of people throng at theHaat premises requiring the vendor to be a lot moreactive and agile while conducting business at theHaats. Vending at the Haats is, therefore, a lot morestrenuous making it unsuitable for women.�

The categorisation of various stakeholders in Indiain terms of gender alongside types of activity inborder haats helps us to note that although womenparticipate as vendees, they are not seen to functionas officials or transporters. Among the womenstakeholders interviewed, seven are operating asvendors (all from Meghalaya) and another seven aslabourers (six from Meghalaya and one fromKamalasagar, Tripura). Most of the womenlabourers are from Meghalaya Haats. By contrast,the participation of male members as vendors issignificantly high.

Thus, women in Meghalaya Haats are seen to beactive in border haats. They enter the Haats aslabourers or goods-carriers but often participate asvendees or even vendors, buying specificBangladeshi products, which they are authorised to,given the upper limit of US$100 per day, for saleelsewhere with a profit margin (As per the 2017MoU, the purchasing limit has now been increasedto US$200). This pro-active category includesmostly women, who are often found to be the mainworking member, if not the sole earner of theirfamilies. Indeed, border haats have contributed tothe livelihood of these vendees. For instance, Nancyof Dangar bazar has been participating as a�vendee� for more than two years. She explains:

�Previously there were limited work options in ourlocality. Things have actually started to changeafter the inclusion of �Bangla Haat� (the local termfor border haats) in 2011, especially for tribalwomen like us.�

As far as the Bangladesh side is concerned, 98per cent of the total number of vendors is male.Among vendees on the Bangladesh side, muchlike the case of India, there is pronounced maledomination. Women vendees are usuallyaccompanied by their fathers or husbands.However, it is interesting to note that Bangladeshiwomen vendees are keen to buy Indian products,particularly cosmetics, toiletries, garments,condiments and other luxury items. Such womenvendees have been found to carry from the Haatsa larger volume of goods in comparison to malevendees.

Out of the seven enlisted women vendors inIndia, six are specifically from Balat, Meghalaya,working as local vendors in their respectivevillages (namely Balat and Dangar village). Theother (than Haat) income for all of them averagesat Indian Rupees (INR) 6,900 (approximatelyUS$99) per month and constitutes roughly 28.5per cent share of their total income. On anaverage, men-folks in Balat in Meghalayaacquire a monthly income of INR 9,000(US$129) from other activities and most of themtravel to Shillong, the state capital of Meghalaya,where they purchase goods for local business.Our field perception alongside the primary datasuggest that females with pakka (permanent)shops (irrespective of the goods they sell) in thelocality tend to have a higher other income thanothers. The only exception has been a ladyvendor in Kalaichar, Meghalaya (Linda Marak),who despite being an agro-cultivator, profits themost from border haats (INR 25,000 INR/US$357 per month) and other (INR 8,000/US$114 per month) activities.

Our study also confirms that there is nocorrelation between education and profits fromthe border haats. This is perhaps because thekind of acumen that is desired for a successfulbusiness at the border haats is in no waydependent on nor reinforced by formaleducation.


The only female vendor operating on theBangladesh side of the border haats is a primaryschool pass out earning Bangladeshi Taka (BDT)7,554 (approximately US$90) per month. Ourstudy revealed that the Bangladesh Vendors earnedless from their trade in border haats (basic reasonssuggested being less variety and relatively inferiorquality of goods by the vendees in the Indian side)and border haats are not serving as a primarysource of income in most of their cases.

On the whole, we have found that border haatscan be treated as a platform to enhanceparticipation on part of women, in variouscapacities. Although there is limited scope forincreasing vendorships in view of persistingregulations, specific vendor quotas for women canboost their engagement. Our study recognisescertain general women-centric issues, which act asbarriers to their participation alongside certainregion-specific deterrents. In most of the borderhaat locations, sufficient encouragement has notbeen provided to women for participating inactivities in and around the border haats. As mostof the border areas are in the remote interiorswhere marginal urbanisation has occurred, womenfind it inconvenient to move about freely. Thisgeneral trend observed by the field investigatorsdoes not hold true for Meghalaya, (Balat andKalaichar side of the haats) where women aremore pro-active in working for their livelihoods.

Despite the initiatives taken by government toencourage women�s participation in variouseconomic activities in the formal sector, informaltrade flourishes in border areas owing to low risk,mobility constraints and no taxation. Hence, ourstudy perceives the need of local administrativebodies (who are an integral part of the Joint borderhaats Management Committee) like Panchayats(local self-governance body in India) and severalother informal committees (mostly lead by vendorsin the Indian side border haats) to take suchinitiatives towards boosting women�s participationin trading at border haats.

Items, Regulations and ProceduresIn India, the Director General of Foreign Trade(DGFT, India) of the Department of Commerce,Government of India identifies a list of items, whichcan be traded at the border haats. The customs

officials operating at local levels supervisewhether vendors on the Indian side are complyingwith the DGFT�s specifications in their dealings atthe Haats. The original list of items prepared bythe DGFT, India has been subsequently amendedmany times. But, there is asymmetry ofinformation among the vendors regarding the listof items permitted for sale at the Haats. Thespecific details in the amendments by DGFT takestimes to reach the ranks of offcials such ascustoms, Border Security Force (BSF, India) andBorder Guard Bangladesh (BGB, Bangladesh)posted at the Haats. Furthermore, border haatsbeing in remote areas the government offices areunderstaffed.

A related problem also needs to be consideredand this is in respect of the interpretation ofguidelines issued by higher authorities in thedomain of trading in border haats. Nowhere inthe original guidelines has wholesaling of goodsbeen forbidden. Yet, customs and BSF officialsofficiating at local levels often seem to find thebulk sale of goods offensive and unlawful. In theprocess, vendors feel constricted and are reluctantto re-invest their profits from trading in borderhaats towards expanding the scale of theirbusiness.

One of the professed objectives of trading inborder haats is to provide the people living alongthe border with an additional source of incomethat can help them to raise their standards ofliving. Initially the rules and regulations stipulatedby the DGFT, India required the Indian side to sell�local products� at the border haats. That is whyone of the qualifications for someone to beeligible for vendorship (and also for vendeeship)was residence within a radius of five kilometresfrom the border haat premises. Such rules andregulations pertaining to trading in border haatsas also the list of items officially approved forsuch trading are supposed to be obtained by localauthorities, particularly customs officials, from theDGFT, India and intimated to vendors who will betrading at the Haats. There is a system offeedback on the part of local authorities,officiating at the border haats, through which theDGFT, India seeks to maintain its connection withground realities and takes steps to accommodatedesired changes.


It has been seen from the time of commencementof border haats that with the exception ofMeghalaya, where local residents grow seasonalfruits (oranges in winter), dwellers along the Indianside of the border are hardly in a position to comeup with �local products� or produce any other itemsthat are officially approved for trading in theborder haats. In view of this reality, the stipulationof �local products� has been removed from theDGFT�s guidelines; thereby giving the vendors awider range of options for selling at the borderhaats.

In India, the decision of which items to be sold atthe border haats largely rests with the vendors.Vendors do not seem to face any problem as longas they carry items that are officially endorsed byregulations governing trading at the border haats.However, information gap among officials aboutthe latest amendments creates confusion at timeswith the vendors in deciding �what goods� and�how much� are permissible for entry to the Haats.

It is seen in the case of Indian vendors that thosewho sell items (specified earlier) in bulk, generallyinvest more in production/purchase of goods thanthose who sell in relatively smaller quantities.

Goods which are sold in bulk are usually notgoods that are locally grown and/or producedand the vendors basically serve as middlemen:buying goods from other markets and selling themat the Haats at moderate rates of profit. Thesevendors understand that per unit profit margin ofthe goods that they sell is modest and they,therefore, try to build up a larger profit forthemselves by selling those items in large or bulkquantities. Prospects of bigger profits often getdepressed when these vendors incur higher costsof transportation for having to travel to marketsthat are at a big distance.

There is yet another element of uncertainty thatneeds to be borne in mind when we consider theprofitability of items that vendors sometimes chooseto sell in bulk. Although the original guidelines ofDGFT, India do not put any restriction on quantitiesto be sold at the Haats, some local Haat officialshave a tendency to assume that just becausetrading at the border haats forbids wholesalepurchase, vendors are also not supposed to sale

beyond certain quantities. The situation getsfurther complicated by the fact that this assumptionis neither universally, nor regularly, enforced bythe Haat officials; hence, for vendors selling inbulk, profit margins can vary with variations inofficial interventions across border haats in India.

There is a related problem as well. It has beenobserved that Bangladeshi vendees at the BalatHaat have a tendency to purchase certaincommodities like baby food, diapers and healthdrinks, like Horlicks, in bulk and then sell themoutside the Haat, in local markets in Bangladesh atsteep prices. These items are so much in demandin Bangladesh that they are also sold at evenhigher prices in the black market. To curb thistrend, officials monitoring the Haat proceedingson the Bangladeshi side, the BGB, imposerestrictions on the quantity of these items thatBangladeshi vendees are permitted to buy. Thisintervention understandably depresses the profitmargins and the spirit of the Indian vendors whoare unable to sell in larger quantities despite risingdemand for their goods.

Indian vendors across the border haats are foundto carry items of their own choice and localofficials do not intervene as long as the items arewithin the category of officially approved goods.The Srinagar border haat records a tenfoldincrease in the volume of sales from INR 18 lakhsin 2014-2015 to INR 181 lakhs in 2015-2016,owing to the high demand for Indian productsamong the Bangladeshi vendees and also thegrowing interest of Indian vendors in procuringbetter business at the border haats. Table 1illustrates the point.

Kamalasagar is different from other border haatson the Indian side. Here, vendors are allowed todiscuss with local customs officials what item theywish to sell at the border haats. Vendor cards aredistributed only after the choices of vendors havebeen approved, and once these cards aredistributed, vendors are not allowed to substitutetheir original choices, nor add items to their list oftradable goods. Looking at the average monthlysales figures, we notice that the average monthlytransaction on the Indian side has increased bynearly 20 lakhs between 2016 and 2017. Thiscan be reasonably attributed to the growing


demand for Indian fruits and vegetables onBangladesh side along with the proportionallyhigh per capita income of Bangladeshi vendeesin regions of Kaba, Tarapur (Chittagong,Bangladesh: the corresponding side ofKamalasagar).

In contrast to the figures on the Indian side, theaverage transaction per month in case of theBangladesh side amounts to INR 3.475 lakhsbetween the year 2016 and 2017. Thecomparatively low figure can be explained bywhat we have drawn attention to elsewhere,namely that border haats is not the primarysource of income for Bangladesh vendors whodepend on other non-Haat sources as themainstay of their livelihood.

That, the flourish in the border haat transactionsis making an immense difference to the vendorson the Indian side is corroborated by our findingsat the Balat border haat as well, where the

average transaction per month has increased byalmost INR 9 lakhs per month between the financialyears 2013-2014 and 2014-2015. Our fieldperception confirms that this trend is going tocontinue in the years to come, particularly in view ofthe increased demand for vendorship amongwomen in Balat (in view of which the localadministration has reserved 12 vendorshipsexclusively for women).

For the corresponding side of Bangladesh, the totalsales figure reveals a declining trend in facilitatingborder haats transactions between the year 2013-2014 upto the end of 2016. This decline in thevolume can be explained by the source of Table 4,which only provides the data by highlighting thetotal amount of money being exchanged (from INRto BDT) through the Janata Bank counter, situatedinside the border haat premise. Our perceptionsfrom the field study reveals the fact that a lot ofBangladeshi vendors often exchange their money(which they receives in the form of INR from the

Table 1: Total Sales Figure: Srinagar-Chaggalnaiya border haat (2014-2016)

Financial Commodity India side Average Bangladesh AverageYear Amount in Transaction side Amount Transaction

INR Lakhs per month in INR Lakhs per month(INR Lakhs) (INR Lakhs)

2014-2015 Misc. 18.00 1.5 09.67 0.81

2015-2016 Misc. 181.00 15.08 70.00 5.83

2016-2017 Misc. 56.29 14.07 17.99 4.49(Upto August 2016).

Source: Department of Commerce and Industries, Government of Tripura

Table 2: Total Sales Figure: Kamalasagar � Kasba border haat (2014-2016)

Year Commodity India side Average Bangladesh AverageAmount in Transaction side Amount TransactionINR Lakhs per month in INR per month

(INR Lakhs) Lakhs (INR Lakhs)June 2015- Misc. 230.78 32.96 - -Dec 2015

Jan 2016- Misc. 632.67 52.72 41.70 3.475Jan 2017Source: Department of Commerce and Industries, Government of Tripura


Indian vendees) directly from their Indiancounterparts (who in turn receives BDT from theBangladesh vendees) to avoid unnecessary delays insupplementing paperwork and other documentationviz. exchange through formal bank counters. Thus,the volume of transactions on the Bangladesh salesfigure seems somewhat deflated.

The data pertaining to transactions at the KalaicharHaat seem to pale in contrast to the aforementionedfigures at Balat and Kamalasagar Haats. But twoclarifications are necessary: first, the region wasaffected by a flood in the year 2012-2013, whichimpacted the volume of transactions at the borderhaat adversely; second, the data presented does nothighlight the present scenario, which our field studyfound to be a lot more impressive and definitely animprovement from what the data till 2013 seemed toproject.

On the Kurigram part, data sheet reveals a morethan threefold increase in the total volume of salescatered by all the Bangladeshi vendors over the

period of 2013-2014 and end of 2016.Bangladeshi vendors are majorly selling plasticand melamine wares at bulk quantities apart fromselling vegetables and seasonal fruits to ensuretheir income from the border haats. In fact, theaverage monthly transaction for all the listedproducts marks upto INR 12.66 lakhs for the lastyear of 2016, despite having barriers of arelatively rugged approach road and adverseclimatic conditions during monsoons.

There are formal institutions like the Joint borderhaat Management Committee (JBHMC) and theborder haat Management Committee (BHMC),which exist for the purpose of redressinggrievances of vendors and other stakeholders, andgenerally looking into areas for bettermanagement and monitoring of trading at theborder haats. But for formal institutions bythemselves are not always adequate and in factthey are found to co-exist alongside variousinformal mechanisms, which play an importantrole in addressing problems and difficulties

Table 3: Total Sales Figure: Balat (corresponding toSunamgunj, Bangladesh) border haat

Financial Year Commodity India side AverageAmount in TransactionINR Lakhs per month

(INR Lakhs)2013-2014 All Listed Products 167.29 13.94

2014-2015 All Listed Products 274.90 22.90Source: Department of Commerce and Industries, Government of Meghalaya

Table 4: Total Sales Figure: Sunamganj(corresponding to Balat, India) border haat

Financial Year Commodity Bangladesh Averageside Amount Transactionin INR Lakhs per month

(INR Lakhs)2013-2014 All Listed Products 8.12 0.68

2014-2015 All Listed Products 0.47 0.03


2016 � upto All Listed Products 1.0 0.13DecemberSource: Janata Bank (Exchange Booth), Sunamganj, Bangladesh.


pertaining to day-to-day management of businessat the border haats.

However, these are not the only institutions thatregulate activities pertaining to trading at the borderhaats. For instance, in Kamalasagar and Balat,respectively in Tripura and Meghalaya in India,there is an informal group that looks into problemsand grievances of the vendors and vendees, Thisgroup is composed of local Panchayat (local bodyfor self-governance) officials and acts as a mediatoron behalf of vendors, putting across their problemsto members of the BHMC.

Similarly, in Srinagar in Tripura, there is an informalcommittee consisting of powerful and active vendorsand this often acts like an interest group trying toprevail over formal decision making bodies like theBHMC. In fact, so regular and prominent is thisinformal group that many vendors consider it notonly to be a formal body but also the only one thatoperates as a platform for safeguarding their

interests, particularly for the not-so-prominentvendors who seldom find a place in the BHMC. Atthe Kalaichar Haat in Meghalaya, however, wehave not encountered any such informal institutionthat operates for purposes of addressing problemsrelated to the management of border haats.

The policy implications are clear. There ought tobe mechanisms in the border haats that will beconcerned with the day-to-day and oftenunforeseen problems that are likely to emerge astrading activities unfold at the border haats. It isalso important to consider that there ought to berepresentation in these mechanisms not just ofvendors but also of vendees and other relevantstakeholders that will enhance the competence ofthe mechanism to oversee all aspects of trading atthe border haats. For instance, the labourers, whoplay a significant role at all border haatsgenerally have no forum, in which they can placetheir grievances.

Table 5: Total Sales Figure: Kalaichar (corresponding toKurigram, Bangladesh) border haat

Financial Year Commodity India side AverageAmount in TransactionINR Lakhs per month

(INR Lakhs)July 2011-2012 All Listed Products 32.90 4.11

2012-2013 All Listed Products 23.74 1.98Source: Department of Commerce and Industries, Government of Meghalaya

Table 6: Total Sales Figure: Kurigram (corresponding toKalaichar, India) border haat

Financial Year Commodity Bangladesh Averageside Amount Transactionin INR Lakhs per month

(INR Lakhs)




2016 � upto All Listed Products 101.28 12.66DecemberSource: Office to the Additional District Magistrate (ADM), Kurigram, Bangladesh


The Issue of InfrastructureThe idea of trading at the border haats revolvesaround the notion of providing an enablingenvironment to people, who reside in the vicinity ofthe Indo-Bangladesh border, to engage in tradingactivities among themselves. This will help the localresidents on the two sides of the border to engagein a sort of symbiosis and improve the conditionsand standards of their living. It is a fact that suchtrade has existed for a very long time, but anattempt on the part of the two governments toinstitutionalise such trade in a formal mechanismlike the border haat is a recent endeavour. To makesuch institutionalisation meaningful, it is imperativethat incidental facilities for such trade to take placebe ensured. It is in this sense that infrastructure andinfrastructural facilities at and for the border haatsbecome a crucial issue for consideration.

Major infrastructural inadequacies acrossthe border haats� Toilet facilities: It is to be borne in mind that

generally all border haats open around 9o�clock in the morning and continues till 5o�clock in the evening. In view of the long hoursof business that vendors and other stakeholdersmay have to carry themselves through, one canhardly exaggerate the need for adequate toiletfacilities. All the border haats fair rather poorly,if not miserably, on this count.

� Related to this, is the problem of unavailability ofregular supply of particularly drinking water. It isan unnecessary burden for vendors to carrywater and such necessities to the Haatsalongside their usual load of goods.

� It is worrisome that a forum, which involves theday-long participation of several people, men,women and children, and many of them travelsseveral kilometres from their home, has noprovision for medical and first-aid facilities.

� The border haat is an initiative to make formaltrade a more attactive option among theinformal vendors in the borders of twoneighbouring countries. A fully operationalcurrency exchange platform, should be essentialand inevitable component to ensure the successof all such cross-border initiatives. However, theoperation of currency exchange mechanism atthe border haat has been suboptimal and leavesa vast room for improvement.

� Absence of electricity and electricalconnectivity simultaneously hinders smoothtransaction of business at the border haats:vendors and labourers have to toil inside Haatenclosures without fans, toilets operatewithout lights and pumping facilities andoffice rooms are rendered unusable.

In considering infrastructural inadequacies at theborder haats, it needs to be highlighted that thetopography of the land in Meghalaya in Indiaand Rangpur/Sylhet region in Bangladesh isrough and generally the terrain is hilly on theIndian side. The border haats in Meghalaya arelocated at the base of the Southwest Garo hillsand the East Khasi Hills, and during prolongedmonsoon water gathers at these places anddrainage is not easy. This puts the border haatsof Kalaichar-Kurigram and Balat-Sunamgunj at adisadvantage. These geographical peculiaritiesand climatic hazards have also to be borne inmind while drawing up plans for infrastructuralimprovement of the border haats in this region.

RecommendationsIn view of the above-stated problems, wepropose the following policy recommendations:� Approach roads to particular border haats

need to be paved and/or repaired. This isparticularly true for the Kalaichar border haatin Meghalaya. Similarly, in Kurigram side ofBangladesh, there is no bridge on the riverthat runs in between the Haat premises andthe local neighbourhood. There was amakeshift bamboo bridge earlier, but it wasravaged by the floods in 2014. Moregenerally, if the quality of the approach roadsto all the border haats is improved, it willdefinitely boost greater participation andbusiness at the border haats.

� Electricity supply is vital so that, among otherthings, the availability of water can beensured in the toilets as well as for drinkingpurposes. However, the Haats being locatedon the zero line, it might be difficult to ensurethe supply of electricity through power-gridsdue to legal complications and problems ofpilferage. Off-grid solutions like solar powercould be explored to this end.


� The toilets in all the haats are in bad shape.Their maintenance has been bad, if notaltogether absent. The recommendation by theJoint border haats Management Committee thatmaintenance of toilets should be entrusted withIndian and Bangladeshi personnel alternately,each maintaining for three months at a time,has not been seriously considered by the localHaat officials.

� Families from both sides of the border arecoming to the Haats, to shop as well as meettheir respective acquaintances and familiesacross the border. This is an example of howthe Haats are functioning as platforms for trustbuilding and aiding people-to-people connect.To facilitate the same, it may be a good idea tobuild rooms/spaces where these families canmeet, rest and talk. This is particularlybeneficial for the children and elderly who arepart of such family meetings.

� In some of the Haats (Kalaichar and Balat inMeghalaya, the ones that were constructedearlier during 2011-12) the stalls are notelevated from the ground and the floor of theHaats is not paved. This poses a lot ofdifficulties during inclement weather,particularly during monsoon months. This hasresulted in changes in vendor behaviour inthese Haats, where they prefer not to displaytheir products. Instead they keep them packedin sacks or boxes and show samples to theirprospective vendees. This practice is reported tobe problematic by the security agencies sincethey face vendors, who are reluctant to opentheir packed products. This makes the checkingprocedure more laborious and time-consuming.Such problems are not seen in the newer Haatsof Tripura, where enclosures are more inkeeping with the needs of the vendors. Hence,enclosures will need to be revamped andrenovated, wherever required.

� Currency exchange counters are notoperational in all Haats. Governments of boththe countries must enforce and ensure not onlythe installation of foreign exchange boothswithin the Haat premises but also their regularfunctionality by appointed officials.

� Perhaps, one could think of a separate body tolook into infrastructure and its maintenance ineach of the Haats rather than entrusting thisresponsibility on Haat officials who are

supposed to manage and administer affairspertaining to the conduct of day-to-daybusiness at the Haats.

Positive OutcomesThe northeastern states of India and Bangladeshhave co-existed like natural neighbours andcommunities inhabiting these regions have tradedfreely between themselves in the past. Thisrelationship was suppressed by politicalboundaries and the institutionalisation of tradingat the border haats signifies the revival of theearlier relationship. Local people need these de-linked markets or fora for doing and enhancingtheir economic activities. If the natural propensitiesfor trade among these local people aredisallowed, people in the border areas will resortto other means. BSF personnel on the Indian sideof the border have also confirmed that in theabsence of border haats, people will takerecourse to such means as smuggling to carry ontheir exchange not only of forbidden items butalso of consumer necessities.

In view of this, a majority of the vendorsinterviewed were favourably disposed to theestablishment of border haats, instead of a formaltrade point. They have offered variousjustifications in support of their stance:� There was an overall sense that they lacked the

capacity to trade formally, especially becauseit would require a much bigger investment ofcapital. They felt �for marginalised vendors likeus�, the border haats are �a much betteroption�.

� Establishment of other formal channels mightrequire them to pay revenue, which woulddiminish the amount of profit that thesevendors could reap.

� border haats will also bring aboutinfrastructural development by way ofimproved roads, better transport facilities andpossibly electrical connectivity.

� Vendors are also hopeful that border haatswould in the long run lead to the establishmentof banking centres, which will help them totransact money locally.

� The institutionalisation of formal channels oftrade would require a wider scale ofinfrastructural and other arrangements.


This generally positive experience of the borderhaats has prompted both the Governments tomove towards revisions to the old Memorandum ofUnderstanding, drawing from lessons learnt so far.Six more haats have been approved by theGovernments of India and Bangladesh along theinternational border (two in Tripura and four inMeghalaya). The locations of these new haatshave been identified.

People � to � people connect among residents ofthe two sides of the border is a significant gain ofthe border haats. Thirty-three out of 40 vendorsfrom the Indian side affirm that the commencementof the border haats has enabled them to makefriends with people coming to the Haat from acrossthe border. Acquaintances have blossomed intofriendships and several stakeholders from bothsides of the border come to the Haats not just to dobusiness but also to socialise and engage with oneanother in a personal capacity. Many of thevendors and vendees with whom we interacted,narrated individual cases of such friendship andintimacy. Carrying gifts for one another on festiveoccasions alongside sharing delicacies cooked intheir homes is a regular feature.

As the Hon�ble Member of Parliament fromChhagalnaiya, Bangladesh, Shirin Akhtar,observed: �This exchange that border haatsfacilitate at the local levels, not just of goods andcommodities but of hearts and sentiments, is a sureway of improving relationships between the twocountries and something that Governments canhardly achieve through formal treaties anddiplomatic negotiations.� She looks upon borderhaats as �centres for nurturing relationships� suchthat differences in religion among people livingside by side get dissolved and they are able to co-exist in amity and goodwill. Indeed, trading at theborder haats is a sure way of enabling peoplefrom border areas of the two countries to engagewith one another at a personal level in the courseof their business and trading activities. Suchengagement allows them to open up to oneanother and cast off mutual misgivings andapprehensions.

Policy Recommendations

1. Distribution of vendorship� Increase vendorship in view of increasing

number of applications. Those allowed toset up stalls could be increased to at least50 from each side, given huge demandand the paucity of other marketopportunities.

� There should be quotas for women vendors,as done in the case of Balat, Meghalaya.

� Item-specific vendorship � where a vendoris listed for trading in garments, cannottrade in spices � should be removed, or atleast expanded to include multiple/broadgroups of products.

� The eligibility criteria should bestandardised. In some cases, applicantsneed to have a minimum bank accountbalance of INR 20,000 to be eligible forvendorship. This excludes moremarginalised vendors.

� If more than one day a week for thefunctioning of border haats is considered(there is strong demand for three or at leasttwo days in a week instead of one day aweek), there could be two/three(depending on the number of Haat days)separate sets of vendors for each Haat. Thiswill help in reaching the benefit to a largersection of the community.

2. Women�s participation and women�sissues

� Provide proper toilets with running water orpit toilets

� Explore possibilities of having financialassistance schemes/priority lending forwomen applicants to help with workingcapital requirement

� Encourage women representatives in theborder haats Management Committees andalso in informal committees of vendors thathandle disputes and grievances

� Consider separate queues for womenvendors, for they often reach the Haats lateafter attending to their domestic chores


3. Procedures, rules and regulations� Vendor selection rules could be simplified and

widely publicised; for example, on illustratedbillboards at the Haat locations or on officialnotice-boards of local self-governing body toreach those with poor literacy.

� Some Haats could operate twice a weekgiven high demand and profitability. But thiswill undoubtedly put pressure on agencieslike the border security personnel andcustoms.

� There could be an extension of the Haattimings. The current schedule of 9 am to 3 pmis inadequate given lengthy entry procedures.It could be changed to:- Entry of vendors and physical verification

of goods and vehicles: 7 am to 8.30 am- Stall set up time: 8.30 am to 9 am- Entry of Vendees: 9 am onward (with

ideally a separate desk/window forvendee entry)

� Current quantity restrictions prevent atakeover of the market by large vendors,which is good, but caps need to be raisedsomewhat; for example, of spices fromMeghalaya; juices from Bangladesh.

� Staff cards are to be provided for labourers/vendor staff/helping hands, who currentlyhave to enter as vendees and hence facerestrictions.

� There should be e-enabled Identity Cards (forexample, Aadhaar Card used in India) toallow quicker scanning at entry by hand-heldelectronic devices, with security agenciesbeing trained on the use of such devices.

� Certain services could also be allowed insidethe Haats. As food stalls are already allowed,additionally shops/services for/like mobilerecharge/repair, cobblers, barber stalls,mehendi (a form of beauty treatment popularin the Indian sub-continent), mobile medicalclinics and pathological diagnostic services,etc. may be considered.

� There should be improved securityarrangements inside the Haats to deter theft.

4. Items of trade� Asymmetry of information regarding items

allowed by official guidelines should beaddressed � relevant amendments shouldbe circulated among all officials promptlyand should also be disseminated across allstakeholders.

� There should be illustrated boards outsideand inside the Haat premises showing whatproducts are allowed. Currently there�sconfusion and arbitrary behaviour. Therelevant authorities should hold awarenessgeneration workshops to regularlydisseminate the relevant information.

� Fish and poultry are in high demand onthe Indian side, but not allowed due toquarantine and food safety regulations.This is encouraging high informal tradeand high prices are faced by Indian bordercommunities. Such items, which are high inlocal demand, should be allowed to beconsidered in small but adequate quantitiesfor local consumption.

� There could be a list of exclusions or anegative list instead of a positive list (as ispractised presently) to enable more items tobe traded between the people across theborder. More flexibility with the list willhelp to trade products as per localised andseasonal demand and supply scenarios,leading to higher interest from vendees aswell as sellers from both sides andconsequently higher gains for both.

5. Infrastructure� The approach roads to the border haats

need to be paved (especially in Kalaicharand Srinagar in India). At Kurigram inBangladesh, there is no bridge over theJinjira river on the Bangladesh side andthat should be constructed.

� There should be adequate availability ofwater, particularly drinking water.

� Electricity supply is vital, particularly so thatthe availability of water can be ensured inthe toilets as well as for drinking purposes.

� Solar power could be an effective way todeal with the lack of electricity.


� The toilets in all the Haats are in bad shapeor non-existent. Where built, maintenance istough in the absence of water and clear-cutmandates for, or enforcement of, rotationalmaintenance. Pit latrines should be built in allHaats.

� Maintenance of the Haat premises is animportant consideration because their presentcondition reveals perceptible deteriorationfrom what they were at the time of inception(mainly for the Haats bordering Meghalayain India and Rangpur/Sylhet region inBangladesh).

� Build resting rooms where families can meet,which will be especially beneficial to childrenand the elderly, and will also promote greaterpeople-to-people contact and trust building.This will also help vendees to withstandweather vagaries. Presently they find it verydifficult to find shelter when there is rain.

� Vendor stalls need to be elevated and theground under them be paved, else it becomesmuddy during the rains (especially in olderMeghalaya-Rangpur/Sylhet Haats). Currentlyvendors at these Haats cannot display theirproducts � causing monitoring problems forsecurity agencies.

� Currency exchange counters are notoperational in some cases (for example, inolder Haats in Meghalaya-Rangpur/Sylhet),and officials are not always present. Forexample, in Balat in Meghalaya, only the

Bangladeshi bank representative waspresent during our fieldwork. In Srinagar inTripura, only the Indian bankrepresentatives were present during ourfieldwork.

� There should be provisions for basicmedical facilities and first aid.

� There should be adequate publictransportation for catchment areas so as tofacilitate the villages to reach the Haats.

6. Haat management and monitoring� The meetings of the border haats

management Committees need to be moreregular and some formal mechanisms couldbe developed for interactions between theBHMC and the informal management/monitoring groups that exist in some Haats.

� Haat Management Committees should haverepresentation of stakeholders beyondvendors (such as labourers, transporters,vendees).

� Haat officials need to be equipped withmeasuring devices/machines to checkarbitrariness in deciding the quantity ofgoods allowed.

� A separate formal body must look into day-to-day problems as the established officialsof BHMC meet infrequently.

� Private players could be engaged againstfees to maintain and run Haat facilities andensure cleaning, sanitation, etc.


The border haats, located on thefringes of the Indo-Bangladeshborder, have been envisaged asa means of providing anenabling environment to peoplein this region, to engage intrading activities betweenthemselves. This will help them toimprove the conditions andstandards of their living. Suchtrade has existed for a very longtime, but an attempt on the partof the two governments toinstitutionalise such trade in aformal mechanism like theborder haat is a recentendeavour (2010).

India�s northeast region has hadstrong cultural, linguistic andtrade links with Bangladesh,Myanmar, China and othercountries in South East and EastAsia all through history.However, certain politicaldevelopments in the past fewdecades by way of new politicalboundaries and new regimesprecipitated misgivings andmistrust, as a result of which,cross�border trade suffered.India�s northeast, which used tobe its gateway to South East andEast Asia, now became land-locked with low indices of humanand economic development.

Recognising the potential of thenortheast region in terms of itsburgeoning economic activitiesand livelihood options, theGovernment of India in therecent past enunciated the LookEast Policy (1991), which seeksto develop the region as a hub of

economic activities and re-establish it as the gateway toSouth East and East Asia. Theinstitutionalisation of borderhaats is a part of this grandendeavour.

Although statistics on cross-border international trade alongthe Indo-Bangladesh border arelargely unavailable, variousstudies seem to suggest that thevalue of goods that are illegallyor informally traded across theIndo-Bangladesh border isalmost equivalent to the value ofofficial trade that exists betweenthe two countries. According tothe World Bank�s BangladeshDevelopment Series, Paper No.13, bootleg informal tradeaccounted for a whopping 41per cent (US$237mn) of totalimports of Bangladesh from India(US$580mn) through land routesin 2003.1

Initiatives, such as border haatscan contribute in no smallmeasure towards formalisingsuch informal trade activities. Theinitiation of border haats (localmarkets) along the India-Bangladesh border has shown alot of promise towards economicdevelopment of the bordercommunities, formalisinginformal trade, building trust andhigher trade openness. Two suchborder haats have beenfunctioning along theMeghalaya-Bangladesh bordersince more than a year withencouraging results and twomore have recently started

Chapter 1 Introduction

The Government ofIndia in the recentpast enunciated theLook East Policy(1991), which seeks todevelop the northeastregion as a hub ofeconomic activitiesand re-establish it asthe gateway to SouthEast and East Asia.The institutionalisationof border haats is apart of this grandendeavour


functioning along the Tripura-Bangladesh border.This has a particular and immediate impact onborder area development with remote territoriesgetting a much needed boost in livelihoodopportunities and also formalisation of informaltrade. With many more border haats proposedalong the India-Bangladesh border, there is hopeand promise for people living in the remote borderlocations and particularly in the northeast region ofIndia.

A haat is basically a rough-and-ready market,which allows local people to trade with locally-grown agricultural and manufactured finishedproducts. Such haats or markets are located on thezero line of the border between India andBangladesh and are called border haats, whichallow people from both countries to buy each other�sproducts.

The first border haat was opened on July 23, 2011in the West Garo Hills district of Meghalaya namedas Kurigram (Baliamari) - Kalaichar haat followedby the Dolora-Balat haat in Sunamganj, Meghalayain 2012. They are functioning since more than ayear with promising results. They open once a week,i.e., Wednesdays for Kalaichar (from 10 am to 4pm in summer and 10 am to 3 pm in winter) andTuesdays for Balat (from 10:30 am to 5 pm insummer and 9:30 am to 4 pm in winter). Two moreborder haats have been set up in 2015. The thirdone started functioning since January 2015 at

Srinagar of Tripura and Purba Madhugram ofBangladesh�s northeastern Feni district. Thefourth border haat or second border marketalong the India-Bangladesh border in Tripurastarted functioning in June 2015 at Kamalasagarin the Indian state of Tripura�s Sipahijala districtadjacent to Bangladesh�s Brahmanberia,Chittagong. Both border haats in Tripura followoperations similar to the Kalaichar and Balathaats.

According to the Memorandum of Understanding(MoU) signed between the two countries, onOctober 23, 2010, the border haats or bazaarsare to be established within 5 Kms on either sideof the international border. The border haatswere to be operated as per modalities that wouldbe agreed upon between the two countries andwould be established on a �pilot� basis. Theseborder haats allow the sale of locally producedagricultural and horticultural products, smallagriculture and household goods, e.g., spices,minor forest products (excluding timber), freshand dry fish, cottage industry items, woodenfurniture, handloom and handicraft items, etc.

The basic idea was to help people living inBorder areas to market their �local produce� andthat is why the commodities were specified.Subsequently however, the list of commoditieshas been expanded and the stipulation of �localproduce� removed from the guidelines. No localtaxes are imposed on trading, and both IndianRupee and Bangladeshi Taka are accepted inthese markets.

The initiation of borderhaats (local markets)along the India-Bangladesh border hasshown a lot of promisetowards economicdevelopment of theborder communities,formalising informaltrade, building trust andhigher trade openness

A haat is basically arough-and-ready market,which allows localpeople to trade withlocally-grownagricultural andmanufactured finishedproducts


Locations of the BorderHaatThese haats are located in theborder areas of Tripura-Chittagong and Meghalaya-Rangpur/Sylhet.

1. Srinagar (India) �Chhagalnaiya (Bangladesh)a. Inauguration/days of

operation: January 2015/every Tuesday

b. Distance from nearesttowns: 22 Kms (Sabroom,Tripura) � 15 Kms (Feni,Chittagong)

2. Kamalasagar (India) � Kasba(Bangladesh)a. Inauguration/days of

operation: June 2015/every Sunday (subject tochange)

b. Distance from nearesttowns: 15 Kms(Bishalgarh, Tripura) � 19Kms (Brahmanberia SadarUpazila, Chittagong)

3. Kalaichar (India) � Baliamari(Bangladesh)a. Inauguration/days of

operation: August 2011/every Wednesday

b. Distance from nearesttowns: 15 Kms (Ampati,Meghalaya) �10 Kms(Kurigram Sadar Upazila,Bangladesh)

4. Balat (India) � Sunamganj(Bangladesh)a. Inauguration/days of

operation: May 2012/every Tuesday

b. Distance from nearesttowns: 34 Kms (Ranikor,Meghalaya) � 66 Kms(Sylhet, Bangladesh)


On the whole, the disposition of people residing inclose proximity of the border haats to the wholeidea of border haat trade is positive. In fact, localresidents, those who have been dwelling in theseregions for over three or four decades, inform usthat there was a time (approximately 20 yearsago), when there was no fence along the Indo-Bangladesh border. It would be logical to assumethat during those days, there was a regularexchange of goods and commodities betweenpeople inhabiting these regions. And then a wallwas erected by way of a fence, which didsegregate people of the two countries, but not theirhabits and practices.

Hence, �informal trade� flourished across thefence. The goods usually exchanged included rice,wheat, flour, pulses, sugar, salt and othercommodities. In the more recent past, these goodswere supplemented by medicines, toiletries andpackaged foods. Despite the existence of a fenceof barbed wire, informal trade was possiblebecause one BSF guard was placed in charge ofpatrolling 2 Kms of fenced border. The point thatwe want to make is that the ethos of trade amongthe people in this region was firmly in place fromearly times and this process was not immenselyupset by the erection of a border between the twocountries.

One may, therefore, suggest that although borderhaat trade has taken off in a sure way, it is still afledgeling institution that needs to be improvedand amended in keeping with problems and

dilemmas expressed by the various categories ofstakeholders. For instance, there is a need forwider dissemination about border haat trading sothat many who have been left out can takerecourse to this means of livelihood to raise theirliving standards. Wherever possible, proceduresfor the submission of applications for vendorshipmust be streamlined and simplified in keepingwith the literacy levels and inadequacies of localresidents.

Objectives and PurposesThis project was envisaged with the followingbroad objectives:

� To understand and estimate the positiveimpacts of border haats on povertyreduction through income and employmentgeneration (and other multiplier effectsincluding the formalisation of informaltrade). It also sought to understand thegender implications through the study ofexisting border haats along the Indo-Bangladesh border. Some of the areaswhere these haats have been established(as in Tripura) are home to patriarchalsocieties, where women are occupied withhousehold chores. The study sought toexamine if border haats can offeremployment opportunities to women inthese regions to work as vendors,labourers, etc.

� To estimate the possible future benefitsfrom replication and up-scaling of suchborder haats in other locations along thenortheast India side of the India-Bangladesh border where such haats canbe instituted.

� Estimate the level of efficiency of theexisting border haats and understand theirlong-term sustainability if there are notrade restrictions along the Indo-Bangladesh border.

Economic Impacts of Border HaatOur study suggests that the haats already inoperation along the Indo-Bangladesh border arebenefitting the local people in several ways byway of helping them to procure items of day � to� day necessity, strengthening ethnic and cultural

The ethos of tradeamong the people inthis region was firmlyin place from earlytimes and this processwas not immenselyupset by the erectionof a border betweenthe two countries


bonds between people living close to border areasin both the countries and helping to generateemployment and open up new opportunities,especially for the youth. These haats promoteseveral cottage industries of Bangladesh: industriesproducing items such as Gamchha, Lungi, garmentsand mats. There are also plastic and melamineproducts, processed food items, juices, agriculturalproduce, household tools like spade, axe, plough,sickle, etc. The major benefits in terms of localdevelopment from these markets include: localpeople get commodities at low prices as goods areexempted from taxes and also due to lowertransaction and transportation costs, betteravailability of items of everyday requirement, workopportunities for the local folk including women,trading opportunities for villagers around the area,development and income from support services liketransport, labour and food stalls.

There are some features that make these borderhaats efficient and organised. The obvious and themost alluring feature of these markets is that, thecommodities sold in these haats are exempt fromcustoms duties. All transactions can be conducted inlocal currencies either in Indian Rupee orBangladeshi Taka. It allows consumers to makepurchases up to US$100 (BDT8,400/INR 7,060) ona single haat day (As per the 2017 MoU, thepurchasing limit has now been increased toUS$200). The rules and regulations of border haattrade require sellers and vendees to reside withinproximity of 5 km radius of a particular borderhaat. This is mainly for accomplishing the objectiveof securing improved standards of living andeconomic development of local residents.

However, in practice, people residing well beyondthe stipulated distance manage to travel to the haatand participate as vendees. Traders get a tradingpermit, which is usually valid for one year and theyare required to carry photo identity cards. Thecustoms officials, local police and border securitypersonnel are present during the days of trading inthe haats to oversee smooth conduct of trade andbusiness.

The winds of globalisation that are blowingacross the world at present have createdopportunities to establish global connections forvendors across the world. Who will be able toutilise these opportunities and who will not beable to do so is quite another matter. What isclear beyond doubt is that the world is tooheterogeneous to assume that all actors willparticipate in the global process on equal terms.Existence and instances of cross-border tradeacross the world confirm that informalmechanisms of trade, border markets and suchother instances of regionalism and localism arecompatible with globalisation and liberalisation.Institutional innovations like border haats thuscan be viewed as a means to address local needsand livelihood concerns of large numbers ofunemployed youth, women and others inhabitingremote corners of large countries like India.

Institutionalinnovations like borderhaats can be viewed asmeans to address localneeds and livelihoodconcerns of largenumbers ofunemployed youth,women and othersinhabiting remotecorners of largecountries like India


Definition of Cross-border TradeA Report prepared by the WorldBank on Cross-Border Tradewithin the Central Asian region,defines cross-border trade as theflow of goods and services acrossinternational land borders withinreach of up to 30 Kms. Asignificant feature of cross-bordertrade lies in geographicalproximity as a result of whichtransportation costs become almostirrelevant. This allows vendors totake advantage of differences inthe supply, demand, and prices ofvarious goods and servicesavailable on either side of theborder. However, although cross-border trade prevails across theworld, statistics pertaining to CBTactivities are generally not availablein foreign trade documents.

Often cross-border trading iscarried out by individuals/smallvendors and their families, whooften produce the goods theytrade in. Quantities traded areusually small, and less than a fewhundred US dollars in value.Agricultural products andconsumer goods are the mainkinds of traded goods. Since thevendors in two adjacent countriesare like neighbours, they moveon to the other side of the borderfor purposes of buying andselling. Small vendors trade theirgoods on foot, using a bicycle,taking a minibus or a car. But,cross-border trade is particularlysensitive to the treatment meted

Chapter 2 Border Markets: Insights from aroundthe Globe

out to vendors by conditionsimposed by national governments.Its success depends largely on theability of individual vendors toroutinely cross the border withoutpaying a large unofficial paymentor prohibitive tariff duties andborder charges, and to cross theborder with their own passengervehicles or with light vehicles frombordering regions.2 The success ofcross-border trade depends to alarge extent on various barriersthat vendors are likely to face andtheir ability to cope up with them.

There seems to be a general lackof consensus about the essentialattributes of cross-border trade.Jean-Guy and Ajumbo observe:�As a subject it is yet to be fullymainstreamed in trade policydisciplines, there is no universaldefinition of ICBT. It generallyrefers to trade in processed ornon-processed merchandise,which may be legal imports orexports on one side of the borderand illicit on the other side andvice-versa, on account of nothaving been subjected to statutoryborder formalities such as customsclearance.�3

Usually there are no establishedmeans of transportation and thegoods that are traded aresometimes carried with the help ofporters, at other times they arehead-loaded. Sometimes they arecarried by motorised vehicles andin places even carried on boats,or by animals or animal-drivencarts.

The success ofcross-border tradedepends on variousbarriers thatvendors are likely toface and their abilityto cope up withthem


Most baseline surveys indicate that the majority ofinformal cross-border vendors are women.According to the United Nations DevelopmentFund for Women (UNDFW), in the SADC region,women constitute about 70 per cent of the informalcross-border vendors. The World Bank Report(2007) also draws attention to the fact that womenconstitute nearly 60 per cent of informal vendors inthe Western and Central parts of Africa. Womenwho engage in such cross-border informal tradegenerally have no formal education, nor do theyhave access to bank loans or large capital. Theylook upon their engagement as a source of incomewhich depends on their own modest savings;sometimes they also manage to procure loans fromfriends and relatives to get into the business. Apartfrom this category of local residents, there are alsoformally registered firms and vendors who areable to carry on such trade informally, that is, theyavoid border crossing posts and evade regulationsand taxes.

Benefits of Cross-border TradeSeveral benefits accrue from cross-border trade.Local residents are able to derive/boost incomes.Cross-border trade also provides an impetus tolocal production and leads to the development ofvarious services like storage facilities,transportation and other ancillary services in localmarkets. People, otherwise poor and unemployed,get opportunities for income generation by

working as transporters, labourers and otherservice providers. It has been found that inremote areas where employment opportunitiesare less and salaries are low, cross-border tradeoften becomes an avenue for absorbingsometimes an entire household and contributes toan elevation of incomes and living standards.

Awang et al (2013) draw attention to howinformal cross-border trade in Sarawak(Malaysia) � Kalimantan (Indonesia) contributesto the development of the border communities.�Although there is no formal cross-border routeand no Checkpoint of Immigration andQuarantine (CIQ) exists, Serikin, as a smallborder town has developed as a WeekendMarket and serves as a channel of informaltrade. Indonesian vendors and Malaysianconsumers gather on weekends to carry outtransactions and this triggers localdevelopment.�4

The authors refer to the manifold benefits flowingfrom informal cross-border trade in the region �employment generation, contribution to taxrevenue and the development of infrastructureand transportation. Highlighting the direct andindirect benefits of informal cross-border trade,they observe: �Cross-border entrepreneurshipactivity plays an important role in the communityeconomic development programmes. Theemergence of business groups and trade activitieswill generate employment, create wealth,contribute to tax revenue and stimulate theconstruction of infrastructures such astransportation. Indirectly, this will improve thestandard of living in the border communities.Moreover, cross-border trade lowers importprices of goods available to consumers in

Most baseline surveysindicate that themajority of informalcross-border vendorsare women. Theygenerally have noformal education, nordo they have access tobank loans or largecapital

Cross-borderentrepreneurship activityplays an important role inthe community economicdevelopmentprogrammes


bordering areas (in the absence of cross-borderflows, prices and price differentials would be higher)and enables exporters to benefit from higher value-added.�5

The World Bank Report (2007) harps on thecomplementarities that cross-border trade facilitatebetween people living on the two sides of a border:�...driven by price gaps, cross-border trade lowersimport prices of goods available to consumers inborder areas (in the absence of cross-border flows,prices and price differentials would be higher) andenables exporters to benefit from higher value-added.�6

The Report illustrates this point by drawing attentionto the potato producers in the Osh region whoprefer to sell their produce in Uzbekistan becausethe selling price is much higher than in Kyrgyzstan,as Kyrgyzstan�s supply of potatoes far exceeds thedemand. Similarly, those cultivators in Uzbekistanwho grow tomatoes and cucumbers prefer to sellthem in Kyrgyzstan than in their own country.

Finally, cross-border trade has a gender dimension:women are more actively involved in border-tradingactivities, such as selling goods in bazaars, as wellas moving goods through border crossing points.The World Bank Report (2007) clarifies that thisgender dimension of cross-border trade isdiscernible across Central Asia, where severalvendors� associations involved in cross-borderactivities have women at their head.

In a country where there are constraints in formalpractices, informal activities normally arise. Whenpeople living in adjacent countries have to cope withdivergent regulatory frameworks, they may takerecourse to informal means of trading across theborder. This might make it seem that informal tradeis generally illegal. But Aung (2009) observes, that�informal practices are not necessarily illegal andbad, however some of them tend to occupy a greyarea and/or are illegal in accordance with localregulations. There are costs and benefits inminimising these informal practices in a country.While constraints and restrictions still exist in theformal economy, any attempt to crush informalpractices may realise more costs than benefits.Reduction of these constraints and restrictions in theformal economy may gradually erase informalpractices in most cases.�7

In Myanmar, Aung confirms, informal practicesin the trade have been in existence for quitesome time. The main motivation behind suchinformal practices is not necessarily taxevasion, although the tax levied on exports (i.e.10 per cent on the total export value) isconsiderably high. There are a number ofreasons for involvement in informal practicesand these include, among others: to avoid thelengthy licensing process; to import productswithout having earnings from exports; toimport/export products that are restricted on atemporary or permanent basis and to evadetax. Aung further clarifies, �Since economicsanctions were first imposed by the West in1997, and further stiffened in 2003 and 2007,cross-border trade has become more significantdue to the fact that direct imports from anddirect exports to the West have become muchmore difficult.�8

Consequently, Myanmar has relied more on itsneighbouring countries like China, Thailand,and India, where most products are exportedfor consumption and also for re-export to theWest.9

Talking about the advantages of cross-bordertrade, Little (2010) also points out howimprovements in infrastructure, security andcommunications come about in the course ofthe flourish of cross-border trade.10 He pointsout how several studies have revealed theextent, to which transaction costs andinefficiencies increase on account of lack ofinfrastructure and inadequate communicationfacilities resulting in poor dissemination ofmarket information.

Barriers to Cross-border TradeThe World Bank Report also points towardscertain problems about cross-border trade. Forinstance, cross-border trade is vulnerable togovernment policies. Since cross-border trade isparticularly sensitive to laws and regulationsprevailing in a country at a particular point oftime, governmental interventions can createboth facilitating conditions as well as barriers tosuch trade. True that sometimes, governmentshave intervened to facilitate cross-border trade.


Such arrangements, could involve variousmeasures like easing of visa requirements forborder residents and duty-free status beingaccorded to cargo within certain weight and valuelimits. Such measures have been highly effective instimulating local economies.

However, there are also occasions whengovernment intervention has proven to be a seriousbarrier to cross-border trade. Such government-imposed obstacles include visa and passportstamping requirements that are burdensome forborder communities, unduly strict restrictions onvehicular movements, and other inconvenienceslike regulations on opening hours for bordercrossings. Moreover, it is also seen that actionstaken on occasion to unilaterally close bordercrossing points (BCP), particularly where there is alarge potential for trade, have dampened tradeand adversely affected the wellbeing of poorpopulation. Similarly, the forcible closing orrelocation of bazaars supporting cross-bordertrade has tended to encourage smuggling.11

Little highlights how important unofficial orinformal cross-border trade is in the eastern regionof Africa. Several observers have seen the flourishof such trade as an inevitable outcome of exportregulations, that are both cumbersome and time-consuming, and regional price distortions. Informaltrade is seen as serving multiple ends: augmenting

intra-regional trade and thereforeregionalisation; catering to the local demandwhich is not being met by national productionand markets; and most important, ensuring foodsecurity in the region.

What is also interesting to note is that many ofthese trans-border markets have survivedthrough history and they predate colonial andpost-colonial times when state boundaries weredrawn. This confirms that trade among peoplewho have lived as natural neighbours is anatural urge, and one that cannot be easilystifled by fences and borders, which segregatethem into different political domains. Little(2007), therefore, justifiably comments thatmany trans-border markets �reflect longstandingindigenous patterns that make more sense thanformal trade channels.�12

But then, there are other scholars who opine thatincreased cross-border informal trade meansless foreign exchange and connivance atactivities that are �illegal�. Such trade is alsolooked upon as a source of unfair competitionfor vendors who are keen/willing to tradethrough official channels and in compliance withall formal requirements. These scholars,therefore, argue in favour of increasedregulations and taxes, more vigilance at theborder, greater policing at check-posts and theestablishment of formal market channels.

The advocates of liberalisation since the 1980sand 1990s argue that market liberalisation(�structural adjustment�) policies would have

Since cross-bordertrade is particularlysensitive to laws andregulations prevailingin a countrygovernmentalinterventions cancreate bothfacilitating conditionsas well as barriers tosuch trade

Informal trade is seenas serving multipleends: augmentingintra-regional trade;catering to the localdemand; and ensuringfood security in theregion


channelled most informal trade into formal marketchannels. But this has not happened in large partsof Africa. In fact, for many parts of Africa theoverall effect of market liberalisation has resulted in�a significant expansion of trans-bordertrade,�13especially by large numbers of unemployedyouth, women and others.

Awang et al (2013) point out that the value ofimports from Indonesia to Sarawak in Malaysia wasslightly reduced to MYR 456.1mn (US$102.5mn) in2010 compared to MYR 474 (US$107) in 2009.However, the exports of Sarawak to Indonesiareached MYR 349.2mn (US$78.5mn) in 2009 andcontinued to increase significantly. In their article oncross-border trade between Sarawak (Malaysia)and Kalimantan (Indonesia), Awang et al show howCBT has served as a catalyst for the elevation andliving standards of the border communities. Thus,although the advocates of liberalisation may see anincompatibility between CBT and liberalisation, thecase of Sarawak (Malaysia) suggests that CBT doesnot detract from informal trade, but creates furtheropportunities for growth in poor border areas thewhere the capacity for formal trade is low. Thisconfirms that informal mechanisms of trade, bordermarkets and other such instances of regionalismand localism are compatible with globalisation andliberalisation.

In the same breath Little (2010) comments in thecontext of CBT in the Horn of Africa, that �policiesthat acknowledge and encourage � rather thandiscourage � regional cross-border trade cancapitalise on comparative advantage for differentlocales; strengthen local food security; increasecollection of state revenues and investments in keymarkets, transport and infrastructure; and reduceprice volatility and market imperfections.�14

He, thus, concludes that governments will be a lotwiser in recognising the importance of CBT ratherthan in stifling it, for CBT can serve as a sure way ofexpanding their revenues through customs and taxcollections at borders and market towns while at thesame time catering to developmental needs andwelfare concerns of people living in the borderareas.

It is clear that globalisation has thrown up a web ofopportunities for formal trade to flourish across the

world, but all are not in a position to utilise theseto their advantage if they are left to themselves. Itwill be the responsibility of the state to as largeextent to ensure that these opportunities do notbecome challenges, and insurmountable ones atthat, for those lagging behind in the third world,in particular. As Elsenhans (1996) argues, �theso-called process of globalisation does notintroduce a worldwide equalisation of livingconditions and it does not abolish the capacity fornational determination of social structures andworking conditions�15

Because of this limit to the thrust of globalisation,the maintenance of a liberal world economydepends on the local solution of the problem ofunderdevelopment, as underdevelopment will notbe abolished through the globalisation process. Infact, development strategies for overcoming�marginality� are a precondition for themaintenance of the basis of a liberal worldeconomy. Globalisation requires appropriatelocalised strategies, which it allows.

Awang (2013) draws attention to twoapproaches, which have been used to developthe rural communities in Sarawak (Malaysia).While one considers �industrial development�, theother focuses on �self-development�. This latterapproach makes scientific knowledge available tofarming communities to help them understandhow to use their land efficiently. This concern forenhancing the capacity of local communities sothat they do not end up as losers in a globalisingworld, is echoed by Elsenhans (1996) as well :�The limits to the generalisation of capitaliststructures at the level of the world system due tothe continued existence of substantial �pockets� ofmarginality in the underdeveloped countries lendssupport to the conclusion that the realisation ofthe dream of an open world economy requiresregionally and locally implemented policies ofstructural transformation, which complement theoperation of the market mechanism by stateintervention or other economic interventions onthe basis of the non-market economy. They implya �restriction� of the liberal process in favour ofdevelopment policy, whether conceived by a Statestructure or other institutions of the non-marketeconomy.16


Given the manifold advantages of CBT, one mustaddress the various barriers that frustrate cross-border trade. It has been seen that restrictive limitson exemptions from different duties and taxes aswell as curbs on the movement of vehicles impedecross-border trade. Often rigid regulatoryframeworks are imposed by governments on thegrounds of security and discouraging contrabandtrade. But such government-imposed obstacles areusually a blunt and expensive instrument to attainsuch public policy aims, with a damaging impacton the income and welfare of the poor. With theaim of ensuring the welfare needs of the peopleresiding in border regions, governments couldrather open up border markets or bazaars andsimultaneously take steps to strengthen surveillanceover them. Rather than impose an outright ban,governments could impose stronger vigilance overgoods and vehicles that move across borders.

Moreover, one may find that the security benefits ofstronger community ties across borders may beconsiderable; after all, in a situation where trade isflourishing and resulting in the prosperity ofcommunities living around border areas, allstakeholders would be keen on suppressingcriminal behaviour and in promoting public order.Visa and passport stamping policies could beflexibly applied to fit the needs of small bordercommunities. The effectiveness of government-imposed obstacles can be weak (restrictions often

With the aim ofensuring welfareneeds of the peopleresiding in borderregions, governmentscould rather open upborder markets orbazaars andsimultaneously takesteps to strengthensurveillance over them

are countered by smuggling or unofficialpayments). Therefore, the World Bank Report(2007) justifiably points out the �the ultimatepublic policy aim of prosperity and security isperhaps best achieved through a combination ofliberal cross-border trading conditionsaccompanied by intelligent policing and customspractices.�17

Cross-Border Trade Around theWorldAwang et al (2013) in their article18onMalaysian-Indonesian cross-border trade focuson the business participation factors and reasonsbehind location selection, especially amongIndonesian vendors and the spill-over effects onlocal communities. The location of their researchis a small town named Serekin in Sarawak,Malaysia. The town is located about 5 Kms fromthe border of West Kalimantan in Indonesia.Earlier most of the communities living in theborder region used trails or mouse-paths (locallycalled �jalan tikus�) for cross-border labourimmigration, smuggling various commodities andalso visiting friends and relations.

But in 1967 a �Basic Agreement� was signedbetween the Governments of Malaysia andIndonesia, on the basis of which they agreed thatcommunities living in the immediate border areason either side would be allowed to cross theborder for short, non-work-related visits. For thispurpose, �Border Crossing Passes� would beissued by the respective governments to enableIndonesians and Malaysians to cross theinternational border without official documents orpassports. These passes however, limitedmovement to 30 Kms of the border areas.

The interests of the border communities werereinforced by complementary legislation on thepart of the Malaysian government in 1970 in theform of the New Economic Policy. Under thispolicy, the Malaysian government committeditself to the development of ruralentrepreneurship programmes. It was expectedthat such programmes would generateemployment, create wealth, contribute to taxrevenue, and stimulate the construction ofinfrastructures such as transportation.


Entrepreneurs would act as mediators combiningresources to generate output or products andservices. Entrepreneurship activities could becomethe basis for the community�s economicdevelopment.

The case of Malaysian-Indonesian cross-bordertrade illustrates how the vendors on both sides ofthe borders benefited through access to newmarkets, the source of supply, capital, labour andtechnology, although the type of opportunityreceived was influenced by the level of economicdevelopment on both sides of the border. In fact,this cross-border trade brought them out of thevicious cycle of poverty and improved the families�socioeconomic status and became the main sourceof income for the family. Indeed informal cross-border trade can be one of the mechanisms fordeveloping the economy of the local community.The case of rural border community developmentbased on entrepreneurship in Malaysia is a clearpointer in that direction.

Serikin is a small Dayak Bidayuh village inKuching Division, Sarawak, Malaysia. The town islocated about 15 Kms from Bau town and 80 Kmsfrom Kuching city. The majority of the communityliving in Serikin is the Video community, an ethnicgroup categorised under the Dayak group living inrural areas. Serikin started with a small-scalebarter trade in the early 1980s. Now, it hasbecome the focal point of local communities andvendors from Indonesia to sell their merchandiseover the weekend. This small town became anopen-space supermarket and offered a variety ofgoods at relatively cheap prices. The products soldare predominantly fabrics and garments (27.5 percent), vegetables and local fruits and beverages,furniture, handicrafts and herbs and electrical and

household goods. The business site is located onboth sides of the road for about 200 meters. Thestalls are simple, made of wood and roofed withzinc and leaves.

Traders are charged MYR80.00 per month for astall rental. The visitors to this Weekend Marketcome on Saturday and Sunday from 8 am to 5pm. Research showed that most of the vendors areIndonesians who come from different parts ofWest Kalimantan. The majority of them are fromPontianak (56.9 per cent) and Sangau Ledo (13.7per cent), about 17.7 per cent are fromSingkawan, Pemangkat, Seluas and the nearbyborder villages. For transport, they used their owncars, rental vans, or trucks which were parked onthe Kalimantan border. It took them about three toeight hours drive to reach Serikin town. Thevendors were confident and highly motivated tocarry out their business activities because ofprospects of better income and of course, theirdesire to be self-employed.

Communities of villages along the bordersreceived benefit from the business activities thatwere being carried out. An array of opportunitiesfor earning incomes opened up for the peoplearound. Local vendors set up stalls and leasedthem to the Indonesia vendors for MYR60-80(US$15-20) a month. They also made the openspace available in their house compound asparking space for rent. There were manyrestaurants and food stalls that were opened forbusiness, and at the same time there were privatehouses being rented to Indonesian vendors forMYR5.00 (US$1.50) per night. For storage ofgoods, there was an additional charge of MYR70(US$20). Some Indonesian vendors boughthousehold items such as sugar, cooking oil,cookies and other processed food for domesticconsumption from the local vendors because sugaris much cheaper in Malaysia than Indonesia dueto government subsidies. Private toilets were builtbehind the shophouses and the private houses andthe charges varied from MYR0.20 cents toMYR0.50 cents for a bath.

The study by Awang and others also highlightsseveral factors, which boosted cross-border tradein the region � vendors preferred to carry outbusiness in Serikin because they were familiar

Entrepreneurs wouldact as mediatorscombining resourcesto generate output orproducts and services


with the space provided by the locals; there was ahigh demand from the Malaysian consumersespecially during the weekends. The low averagecost of rental space (US$15-20 per month) alsoencouraged local vendors. The low rates of roomrents, like MYR 5 per day, encouraged vendors tostay longer in Serikin town. Rooms were alsoavailable for storing goods (at an average rentalof MYR 40 per month), which prompted severalIndonesian vendors to leave their goods in Serikin,and return to their villages after finishing businesson Sunday evenings.

The study by Awang suggests that systematiccross-border security, well-planned infrastructureand a good trade transaction procedure willbenefit all parties. Furthermore, state investmentsand comprehensive community developmentprogrammes, as reflected in Malaysia�s NEP, havehelped communities living on the fringes of theborder between two countries to cope withnumerous issues that render them economically,socially and politically vulnerable. Theestablishment of border markets as seen in thecase of Serikin, diminishes the scope of informaltrade, but does not eradicate it altogether. Serikintown has a small immigration post, customs office,police station and a military camp. It is theirresponsibility to ensure that the illegal movementof people and goods are under control. Throughthe intervention of the local municipal council andstakeholders, and aided by effective regulationslike tariffs and taxes, Serikin town has emerged as�a mall within the forest.�19

Myanmar is situated in South-east Asia and isbordered on the north and north-east by Chinaand on the east and south-east by Laos andThailand, and on the south by the Andaman Seaand the Bay of Bengal and on the west byBangladesh and India. Cross-border trade thrivesalong the borders of Myanmar. Despite theMyanmar government�s promotion of formal/official cross-border trade, informal cross-bordertrade activities continue to thrive largely onaccount of a complicated trade licensing systemthat requires various documents, including salescontracts, letters of credit, and bank transactionsin a single currency prescribed by thegovernment.

Although licences for trade are issued within aday in the border areas through one-stop servicecentres, preparation of the application documentsis time-consuming, sometimes requiring almost amonth, depending on the value and type ofcommodity. Such a lengthy process in tradelicencing and restrictions on imports and exportsimposed from time to time, depending on themarket and economic situation in Myanmar, haveresulted in increased informal cross-border tradeactivities. Informal cross-border trade refers toregistered or unregistered business activitiesundertaken across the borders.

The Indo-Myanmar Border Trade Agreementbetween the governments of the Republic of Indiaand the Union of Myanmar was signed onJanuary 21, 1994 with the goal of formalisationof border trade practices. The agreement initiallyprovided for cross-border trade in 22 products,mostly agricultural/primary commoditiesproduced in the trading countries. Bezbaruah(2007) draws attention to the fact that informaltrade across the border between India andMyanmar is mostly dominated by third countryproducts and that the volume of informal tradebetween the two countries is several times greaterthan that of formal trade. In 2001 a few moreitems were added to the list of tradable items.

The Indo-MyanmarBorder TradeAgreement initiallyprovided for cross-border trade in 22products, mostlyagricultural/primarycommodities producedin the trading countries


�In practice, the agreement actually does not gomuch beyond according to a formal sanction toexchanges traditionally going on between the localpopulations in the border areas of the two countries.But it holds significant symbolic value in terms offurthering economic ties between the twocountries.�20

The agreement specified that trade should beconducted through the designated custom posts, viz,(a) Moreh in India (Manipur State) and Tamu inMyanmar, (b) Champhai in India (Mizoram State)and Hri in Myanmar and (c) other places that maybe notified by mutual agreement between the twocountries. Following the signing of the agreement,the two land customs stations (LCS) at Moreh andChamphai on Indian soil were notified. However,the Champhai station has not become functional tilldate and all official or formal Indo-Myanmar bordertrade has been taking place through the Moreh-Tamu route. Similarly, Myanmar signed a bordertrade agreement with India on January 21, 1994,with Bangladesh on May 28, 1994, with China onAugust 13, 1994, and with Lao PDR on December06, 2000.

Aung (2009)21 aims at identifying the role thatinformal cross-border trade activities play infacilitating trade between Myanmar and Thailandand Yunnan province of China. Myanmar signed aborder trade agreement with Thailand on March17, 1996, covering border trade between the twocountries through the border trade posts of Maesai,Maesod, and Ranong on the Thai side andTachileik, Myawaddy, Kawthaung, and Myeik onthe Myanmar side. With a view to simplifyingfinancial transactions relating to border tradebetween Myanmar and Thailand, a Memorandumof Understanding (MOU) was signed in August2006 between each of Myanmar�s banks (theMyanmar Economic Bank and the MyanmarInvestment and Commercial Bank) and each ofThailand�s six banks (the Bank of Ayudhya, theBangkok Bank, the Krung Thai Bank, the Siam CityBank, the Thai Farmers Bank, and the Thai MilitaryBank).

Aung (2009) informs that there are two types ofinformal players in border areas. One is the brokertrading companies taking responsibility fordocumented trade, and another is smugglers (often

called carriers) who are responsible forundocumented trade. The route used by theformer is called the �upper channel� and theroute used by the latter is called the �lowerchannel.� Products restricted in the upperchannel simply go through the lower channel.Products that are expensive to get through theupper channel also go through the lowerchannel. The lower channel is sometimes riskyand there is always a chance of losing someproducts in this course. Carriers carryundocumented trade through unofficial routesacross Myanmar�s borders in order to bypasscheck-points in Myanmar.

Regarding undocumented trade, the value ofundocumented imports from China accountsfor approximately 41 per cent of Myanmar�stotal imports from China, whereas the value ofundocumented imports from Thailand accountsfor about 60 per cent. Kubo (2012) drawsattention to various restrictive controls on tradethat the Government of Myanmar introduced inorder to manage scarce foreign exchange inthe 1990s. One of such controls is the so-called �export-first and import-second� policy.As per this policy, import licences would beissued to private players on the possession of asufficient amount of export-tax-deducted exportearnings to cover the import bill. Analysinghow trade policies in Myanmar providedvendors with incentives to misreport trade,Kubo observes that �this policy might haveprompted vendors to adjust misreporting oftrade in accordance with the supply anddemand for export earnings.�22

Informal cross-border trade activities havebeen rampant in border areas and importantin sustaining a robust lower channel. Theseveral factors that have been instrumental tothis include the existence of an export firstpolicy, trade restrictions, and the complicatedtrade licencing system.

Aung (2009) opines that �in the short term,under the existing licensing system and theprevailing stringent requirements, the role ofbroker trading companies and their informalcross-border trade activities should berecognised. However, in the longer term, the


trade licencing system for some specificcommodities should be relaxed and/or replacedby a trade reporting system.�23

He also recommends that non-tariff barriers shouldbe reduced and that the process of banktransactions and transfers using a letter of creditshould be improved. Through �more relaxed� or�less stringent� requirements and increased tradefacilitation, real exporters and importers will beable to handle their exports and imports withouthaving to go through existing informal channelslike broker trading companies. Through capacitybuilding, training programmes, and tradepromotion, broker trading companies will expandtheir cross-border and international networks andhandle their own trading businesses.

Once that happens, Aung (2009) contends that�informal cross-border activities will be formalised,and the �lower channel� will be replaced by more�upper channel� trade activity, resulting inincreased documented cross-border trade. Forcross-border trade development to benefit peoplein border areas and contribute to povertyalleviation, policy should be revised to include apro-poor approach, through which moredisadvantaged people will benefit. Through thisapproach, cross-border trade development willcontribute not only towards the economicdevelopment of Myanmar but also towards povertyalleviation, at least around the areas close to theborders.�24

When it comes to CBT in Central Asia, the WorldBank Report (2007) draws attention to threefactors that play a crucial role to the flourish ofsuch trade in the region: (i) the ability of thepeople in the region to cross-borders withouthaving to make large unofficial payments; (ii) theability of the people in the region to routinelycross-borders along with their goods withoutpaying prohibitive tariffs, taxes or duties andother border charges; and (iii) the ability of thepeople in the region with their own passengervehicles or with light vehicles from borderingregions.25

A prominent example of CBT in Central Asia isthe Korgas bazaar, on the Kazakhstan-Chinaborder. It is one of the region�s largest cross-border markets providing platform to nearly1,300 vendors per day. The bilateral regimeallows visa-free entry for vendors entering for theday and limited duty-free privileges (on up toUS$1,000 of cargo, with a flat rate appliedthereafter). On the Kazakhstan side of the border,cross-border trading has become the mostimportant source of employment in Jarkent, thelargest border city in the district. Conservativeestimates indicate that 3,250 people workdirectly in cross-border trade activities. Sinceeach vendor requires one or two , sometimesmore, persons who are engaged in differentactivities like selling at the market stalls, or forwarehousing or local transport, the number ofpeople who get to earn incomes increasessubstantially.

The World Bank Report (2007) points out that�Cross-border trade in Jarkent involves almost 20per cent of the active population, as compared to10 per cent for agro-processing, 7 per cent forindustry, and 7 per cent for agriculture.Combined with official data for transport, mainlydedicated to serving Korgas by minibuses andtaxis, almost 30 per cent of Jarkent�s activepopulation depends on cross-border trade.Taking into account the total dependency ratio inKazakhstan, one inhabitant out of six in Jarkentdirectly depends on income generated by cross-border trade activities.�26

Informal cross-border tradeactivities have beenrampant in borderareas and importantin sustaining arobust lowerchannel


It is, therefore, to be inferred that in terms ofincome generation, cross-border trade is asprofitable as any other economic activity, despitethe fact that vendors work for only two-thirds of theyear. The same report also draws attention to thefact that �vendors state a 25 to 30 per cent grossmargin on any transaction, which signifies yearlymargins for the community of local vendors ofUS$3.31 million, or over US$1,650 for two-thirdsof the year. This is comparable to an averageyearly salary of US$2,100 in Jarkent. Theemployment and income benefits accruing toresidents of Korgas, the largest land transport portin western China � capable of handling threemillion passengers and 340,000 tonnes ofmerchandise annually, also seem to be enormous.

The World Bank Report (2007) makes twoimportant observations. First, it highlights that therehas been a sharp increase in the number of peopleengaged in business at the bazaar. The Korgasbazaar was said to employ in 1997 around 800people servicing 20,000 foreign vendors or 154persons per day. The number of people crossingdaily into China was around 1,300 in June 2007,or almost nine times more than in 1997. Second, ascan be easily observed by anyone crossing the BCPinto China, employment effects go beyond thebazaar itself.

There are hundreds of taxi drivers offering theirservices, including trips to Urumqi, capital ofXinjiang Uygur Autonomous Region. Moreover,bars and restaurants in areas surrounding thebazaar, as well as stores all over city appear to bethriving. The city appears to be prosperingessentially because of cross-border trade withKazakhstan. Observations of the movement ofgoods across other BCPs fully corroborate the

observation about the beneficial impact of cross-border trade on poverty reduction, especially inrural areas.27

The Chinese-Kazakh Korgas BCP is an exampleof advancing cross-border cooperation beyondthe level implied by the national framework,arrangements encouraging development of cross-border trade. The benefits accruing from theKorgas Bazaar for residents on both sides of theborder result from two key measures:

� No visa: Residents of the Kazakh Panfilovdistrict can enter China without any visa ifthey stay no longer than one day. The waivingof the visa requirement is important, as visascan be only obtained in Almaty, about 300Kms from Jarkent, and the process isexpensive.

� No Duty: Some cargo brought intoKazakhstan from China is duty-free. Cargowhose weight does not exceed 50 kilogramsand value not exceed US$1,000 can bebrought into Kazakhstan without paying anyborder charges.

This set of preferential arrangements hasbenefited the development of cross-border tradeand stands out as an illuminating case of howgovernmental interventions can facilitate CBT. TheKorgas bazaar, often described as a �showcaseof cross-border trade,� has emerged as one ofthe most important platforms supplying south-western parts of Kazakhstan.

Indeed Government intervention can serve as afacilitator of cross-border trade. As in the case ofstandard trade, cross-border trade in order toflourish, needs an institutional and legal basis, inthe form of agreements or treaties between/among the concerned countries. Such treaties/agreements may have special provisions that willfacilitate trade taking place in the border regions.For example, Eurasec and the CIS regionalintegration arrangements provided for duty-freetrade and visa-free movement of people. In somecases, of course there were restrictions wheregoods could not enter duty-free because of theimposition of differential excise taxes on imports,and where visa requirements were imposed insome cases on citizens of CIS countries.

In terms of incomegeneration, cross-border trade is asprofitable as anyother economicactivity


The movement of goods across borders usually facetwo kinds of barriers: first, border services aredistrustful of certificates of origin issued by aparticular country/countries, and second,regulations specifying customs procedures andtechnical norms depart at times from commitmentsmade under different treaties or agreements. Softmeasures aim at easing conditions governing themovement of residents of contiguous borderadministrative units, use of motor vehicles, andexempting cross-border trade from duties and othercharges collected at the border, and are likely tofacilitate cross-border trade activities. It is importantto note that all such facilitating measures have to bein place if cross-border trade is to be activated.Simplified procedures and visa-free entry forindividuals would not be sufficient by themselves ifBCPs remained closed or the government chargedexorbitant fees for entry of goods.

Two other cases offer illustrations of specialarrangements to stimulate cross-border trade: theAfghan-Tajik and the Kazakh-Kyrgyz borders. TheAfghan-Tajik cross-border project represents the firststage towards wider and deeper integration basedon cross-region cooperation. In 2003, theGovernment of Tajikistan launched a programmedesigned to facilitate cross-border trade withAfghanistan. The programme has enabled theopening of BCPs together with bazaars locatedwithin Tajik territory. The facilitating aspects include:Bazaars opened at several BCPs between Tajikistanand Afghanistan; Afghan citizens do not requirevisas to enter the bazaar; they just deposit their ID orpassport and collect it when they leave the fencedbazaar.

Free-trade arrangements, together with bilateralgovernmental agreements for visa-free movement ofpeople, underline relations in two pairings:Kazakhstan-Kyrgyzstan and Kyrgyzstan-Tajikistan.Citizens of Kazakhstan and Kyrgyzstan merely haveto produce their national Identity Card to enter theother country. In the second pairing, a nationalpassport is required. In the Kazakhstan-Kyrgyzstanpairing, the use of motor vehicles in the other�sterritory is allowed. In both pairings, cargo notexceeding 50 kilograms in weight and US$1,000 invalue is exempt from border charges.

But then, government intervention can also serveas an obstacle to cross-border trade.

Visa requirements: The cost of a visa alonecan pose as an insurmountable barrier to cross-border trade. Visa requirements or even visa-freeentry if combined with large stamps (covering attimes an entire page) to mark each entry and exitin the passport, constitute a barrier to engage intrading activities. For the purpose of applyingand obtaining a visa one may need to make atrip to the capital or the consulate in the city.Moreover, large stamps quickly lead to thenecessity of applying for a new passport orinserting extra pages. Both are costly and time-consuming, and returns from trade would have tobe high enough to justify such expenses. Cross-border trade is highly sensitive to all kinds ofborder payments.

Cost of a Visa Alone Can be a deterrentto Cross-Border Exchanges: Restrictions ofthe movement of local people may make anycross-border trade activity impossible. Irkeshtam,the BCP at the Kyrgyz-Chinese border, illustratesthis case. Fees for Chinese visas for Kyrgyzcitizens reach US$260. Moreover, local residentsfrom Nura (the Kyrgyz settlement at the border)must travel to Osh to have their visa issued, forwhich the fee is the equivalent of US$55. Thetotal cost of obtaining a visa, therefore, amountsto US$315, which is equivalent to more than 55per cent of the average annual salary in

Cross-border trade inorder to flourish, needsan institutional andlegal basis, in the formof agreements ortreaties between/among the concernedcountries


Kyrgyzstan. Needless to say, only a few localresidents cross the border to trade: on an average,two local people crossed the border daily in June2007 (compared to 1,300 in Korgas) and cross-border trade is non-existent. Yet, the infrastructureand market for cross-border trade exist: Nura islocated 6 Kms from the border, and could be a sitefor cross-border bazaars, given that 20 trucks crossthe border every day.28

Little (2007) draws attention to some of the hurdlesthat dampen unofficial cross-border trade in EasternAfrica.29

Since extremely poor infrastructure,communications, and security are typical of severalborder areas in eastern Africa, especially the Hornregion, cross-border trade in many cases remain asthe only market option. Thus, the harsh realities ofCBT, which distinguish it from other commerce in theregion need to be acknowledged.

The most important hurdles include poorinfrastructure and lack of adequate security. Despitethe political significance of borders, mostinternational border regions are generally isolatedand have poor transport, communications, andother infrastructure. They are distant from politicaland commercial centres of the country and in manyeastern African countries it can take several days totravel between the capital city and one or more ofits border areas. Infrastructural inadequacies arepronounced in several domains: road and railwaynetwork, lack of warehousing, absence of Internetfacilities for market information and intelligence; thecross-border vendors are crippled by lack of accessto market information pertaining to what is indemand, what is needed, where, in what quantitiesand packaging standards, etc. The lack of storageand warehouse facilities is reinforced by the factthat most merchants avoid investments in facilitiesthat would draw attention to them given theinformal nature of the trade, in which theyparticipate. In insecure areas these kinds ofinfrastructure become easy targets for bandits andother criminal elements, as has been the case in thesouthern Sudan/Uganda borderlands.

As Little (2009) comments, ��the irony is that therelative isolation and anaemic infrastructure inborder areas actually insulates CBT from officialand other types of detection.�30

For livestock-based CBT as in east Africa,infrastructure needs include veterinary facilities,holding grounds, and water points. Infrastructuraldevelopment is so abysmal in the border areas inthe African Horn, that even if governmentswanted to officially export livestock toneighbouring countries, they would be seriouslyconstrained to do so in border markets.

Another factor, which ails cross-border trade ineastern Africa, is inconsistent border enforcement.In eastern Ethiopia, officials sometimes so tospeak, �look the other way� when CBT in bulkfoodstuffs is involved but pursue punitive measuresfor other goods. This could be explained by thefact that the region suffers from food insecurity,but it still adds to the element of uncertainty.Random checks along the roads and routes of theregion regularly catch vendors running goodsacross the border. Occasionally even stricterborder surveillance is enforced resulting in virtualsealing of a border. Such blockages can beinconsistent and do not target all goods;exceptions are sometimes made, especially forbulk food imports, and blockages are sometimesremoved altogether. As a result the entireenvironment becomes confusing and beyond theestimate or anticipation of the stakeholders.

Sometimes government policies and directivesseeking to control CBT can be damaging to theinterests of both producers and merchants andaggravate an already risky market environment.The Ethiopian government�s decision in 2005 toban the use of Somali shillings (SoSh) in easternEthiopia is a case in point. Prior to this, the SoShcurrency was widely used in the area becauseCBT activities were calculated in SoSh, especiallybecause exports and imports transited throughports of neighbouring Somalia. When thecurrency ban was enforced, CBT merchantsstopped going to certain areas where the directivewas strictly enforced, resulting in large dips inlivestock prices and increases in prices ofimported foods.

Anybody found using Somalia currency wasliable to be imprisoned, and any Somaliacurrency found was confiscated, which was thedominant currency used to purchase small-portions of retail goods affordable for the poor.


The CBT is also faced with the disadvantage ofuncertainty about existing policies toward CBT;about what level of administration is responsiblefor regulating/licensing the activity; and about therights of CBT vendors to engage in trade of legalgoods. Traders engaging in cross-border tradeneed to be informed about official rules andregulations and also about their rights. They needto be empowered so that they can assertthemselves when faced with incorrect applicationof rules and arbitrary actions of officials.

Miti (2005) opines that efforts to counter theseshortcomings and information-gaps and establishmore formal policies toward CBT, especially formaize trade, seem to be further advanced insouthern than in eastern Africa. To exploit thepotential of a free trade zone in the region,COMESA (Common Market for Eastern andSouthern Africa) has endorsed the so-called�Maize without Borders� initiative and has reviewedcustoms documentation and procedures with aview to simplifying and facilitating cross-bordermaize trade.31

Both Uganda and Ethiopia have also tried tosimplify CBT issues by �decentralising� permitadministration to local levels and allowing smallvendors to practice informal CBT up to a certainvalue (> $1,000 per month in Uganda�s case) buteven here considerable confusion remains. In

eastern Ethiopia, regional and local authoritiesare often unaware of policy changes at thefederal level and, thus, some local actions mayactually contradict existing laws and policies.32 Incases of livestock, there is even more ambiguity inEthiopia after the legalisation of small volumes ofcross-border trade (eight head of small stock orless per trip). In the Horn region where some CBTrestrictions have been eased, the amount ofpaperwork and time required to qualify undernew regulations is so cumbersome that mostvendors do not bother with it.

Indeed, policy ambiguities and informationasymmetries are serious hurdles on the path ofcross-border trade. Additional factors thatincrease policy uncertainties surrounding CBT areconcerns about (1) illegal arms trade/terrorismand (2) potential competition with domesticindustries. Little (2007) concludes that policies thatacknowledge and encourage rather thandiscourage regional CBT can capitalise on thecomparative advantage for different locales; afterall border markets thrive on border differentials.By creating a more enabling environment andeven addressing capacity building measures oflocal stakeholders to participate in cross-bordertrade, governments can go a long way in securingrevenues while at the same time ensuringdevelopment of border areas and wellbeing of thegenerally poor people who inhabit them.


Chapter 3 Insights on Livelihood

The idea of border haats wasconceived by the governmentsof India and Bangladesh withthe aim of promoting thewellbeing of the peopledwelling in remote areasacross the border between thetwo countries. Theestablishment of these �localmarkets� would enable peopleof the two countries residing inthe border regions to buy andsell their �local produce�.border haats thus establish thetraditional system of marketingthat has existed among thesepeople who have co-existed asnatural neighbours throughhistory.

Key Findings� border haats have directly

impacted incomegeneration for all theparticipating stakeholders(especially Vendors)

� border haats have givenrise to new vocations ofwork and have significantlycontributed to the income ofseveral categories ofstakeholders like labourersand transporters

� border haat profitsconstitute the primarysource of income for Indianvendors, but forBangladesh vendors borderhaats remain a secondaryor supplementary source ofincome

� Indian vendors are keen onre-investment for expansion

of their business, but theyneed infrastructural facilitiesand assurance about therenewal of vendor cards.Bangladesh vendors are notso oriented towards re-investment

� There is no correlationbetween border haat successstories and other attributes ofvendors in terms ofeducational achievements,caste, tribe and religion

� In terms of participationrates, most of the Indian sidevendors are found to be quiteregular

· Most vendors on both sidesof the border prefer to hire avehicle for their goods. Onlya few share the vehicle, mosthire the whole thing for theirpersonal use. Profits aregood, possibly because thequantity of goods is greater

Impact of the BorderHaat on DailyLivelihoodborder haats have directlyimpacted income generation forall the participating stakeholders(especially vendors). It has notonly given rise to new vocationsof work in the interiors but hasalso created new opportunitiesfor people to engage themselveswith cross-border trade in thecapacity of labourers,transporters, etc. The borderhaat trade generally allows threeto four labourers/staff/helpers

The idea of borderhaats was conceivedby the governmentsof India andBangladesh with theaim of promoting thewellbeing of thepeople dwelling inremote areas acrossthe border betweenthe two countries


for each of the 25 officially authorised vendorsfrom either side. This results in the participation ofat least 200 people from both sides of the borderin each of the border haats.

In addition to these people who largely comprisethe group of sellers, there are also vendees whoget involved in border haat trade not just for self-consumption but for securing an income by sellinggoods purchased at the haat, in other placesoutside. This is seen particularly in Meghalaya.However, vendors (authorised and selected by thejoint BHMCs) are considered as the directbeneficiaries from the existence of border haats;Table 3.1 shows the impact of the border haattrade on the income of those participating asvendors.

The total income of the vendors on the Indian sideis INR 20, 089 per month. This figure includes theincome of a vendor from his non-haat-related

activities and the profit he earns from the borderhaats per month. The non-haat average incomeon the other hand is considered as the work,which was performed by the vendors for securingtheir livelihood, before the commencement of thehaat. It is to be noted that the border haats, whichare held once a week, at present have not stoodin the way of vendors so far as their participationin their non-haat economic engagements isconcerned. Thus, the direct impact of borderhaats on vendors can be estimated bydifferentiating the present income (haat and non-haat) and the previous income that used to accrueexclusively from the non-haat engagements.Chart 3.1 and 3.2 highlights these differences inincome for vendors in India and Bangladesh.

For the India side, Border haats have impactedmuch by way of creating and adding newavenues of income for vendors. This is primarilybecause of the better quality and variety of Indian

Table 3.1: The direct impact of border haats on Income of vendors (India and Bangladesh)

India

Vendors border haat border haat Non-Haat Total (income BH incomeLocations Average Income: Average from main as % of

INR per month Income: occupation total incomeINR per plus BHmonth profits) Average

Income: INRper month

Tripura (India) Srinagar 16,544 3,800 20,344 81

Kamalasagar 16,460 6,500 22,960 72

Meghalaya (India) Kalaichar 11,050 4,270 15,320 72

Balat 14,680 7,050 21,730 68

Average 14,684 5,405 20,089 73Bangladesh

Chittagong (Bangladesh) Chaggalnaiya 3,983 13,584 17,567 23

Kasba 4,107 11,958 16,065 26

Rangpur � Sylhet Kurigram 7,359 9,650 17,009 43(Bangladesh) Sunamganj 6,800 11,708 18,508 37

Average 5,562 11,725 17,288 32Source: Complied and calculated from the primary data set (The Bangladesh border haats have been listed in the same order as the India ones; forinstance: Srinagar corresponds to Chaggalnaiya).

Conversion rate: INR 1 = BDT 1.20

Calculations: border haat profits are calculated by adding up profits earned by vendors on each Haat day, which adds up to 4 Haats days a monthand then obtaining the arithmetic mean to show the monthly average figures for each of the Haat locations.


goods (not necessarily local), for which there is ahigh demand. In fact, most of the haatsexperience wholesaling of spices (mainly Jeera),branded cosmetics, baby food and health drinkslike Horlicks to vendees from Bangladesh. If oneconsiders haat income as the share of the totalincome of the vendors then we can see that theTripura haats have experienced a highermagnitude of average border haat income for the

vendors whose non-haat income constitutes only19 per cent (Srinagar) and 28 per cent(Kamalasagar) of the total monthly income. Theaverage non haat income of Balat (Meghalaya) iscurrently the highest, amounting INR 7,050(US$100) per month (As per the 2017 MoU, thepurchasing limit has now been increased toUS$200).

Chart 3.2: Income of vendors (Bangladesh)

Chart 3.1: Income of vendors (India)


One must clarify that for vendors across Indianhaats, haat income happens to be the majorcomponent of the household income and the caseis quite the contrary in case of Bangladeshvendors. The average border haat income ofKalaichar vendors is least, a fact which perhapscan be explained by the strict vigilance ofcustoms officials over the passage of goods intothe haat. Furthermore, the demand for Indiangoods on the Kurigram side (Bangladesh) is alsocomparatively less, because of their lowerpurchasing power and a difficult approach roadon the Bangladesh side, which makes thecarriage of goods strenuous. Tara Mia, a vendorfrom Kurigram selling garments, melamine andplastic goods comments: �I have to carry mygoods across a river whose embankments areeroding and the journey is tiresome, besides howmuch of goods can you carry in country-boats?�Hence, Bangladeshi vendors are not able to getas much from the haats as Indian vendors.

But a further reason might be the lack of a supplypush. While the average non-haat income ofIndia (for all four haat locations) is INR5,405(US$77) per month, Bangladesh averages INR11,999 (BDT14,399/US$171). It is clear that onthe whole non-haat income of Bangladeshivendors is much higher than that of the Indianvendors. Our field perception is that people on

the Bangladesh side (Chhagalnaiya and Kasba)display higher average purchasing capacities thanthe Indian counterparts. Border haats remain asupplementary source of income for Bangladeshvendors. Chart 3.2 clarifies this point.

Chhagalnaiya averages the highest total income ofBangladeshi vendors at INR18,941 (BDT22,729/US$271), although income of these vendorsincreased by 37 per cent after the commencementof haat in the locality. This is mainly because of thedemand for fish and vegetables that the borderhaat created. The non-haat average incomefigures are much higher for Bangladesh and infact constitute as much as 68 per cent of the totalaverage monthly income. This is indicated in Chart3.2. In fact, the Rangpur-Sylhet divisions,corresponding to Meghalaya (India) averageapproximately one-fourth of their total incomefrom the border haats. Thus, the direct impact ofhaat income in Bangladesh has been low owing toless variety of goods and certain other regulatoryobligations.

For instance, the BGB personnel, who officiateshaat proceedings in the Bangladesh haats oftenimpose restrictions on the volume or quantity ofitems that vendors are allowed to carry into thehaat. We go into more detail on this aspect in asubsequent section dealing with regulations andpractices. The low border haat income ofBangladesh vendors is also attributed in part to thecomparatively lower demand and purchasingpower of vendees on the Indian side. Fazul Akhter,a vendor in Kurigram region selling bakerybiscuits laments: �Vendees from our country take alot of interest in picking up varieties of things fromthe Indian vendors, but Indian vendees do notseem much interested in Bangladeshi products.They concentrate mainly on limited items likeplastic and melamine ware.�

For the India side,Border haats haveimpacted much by wayof creating and addingnew avenues of incomefor vendors. This isprimarily because ofthe better quality andvariety of Indian goods(not necessarily local),for which there is ahigh demand

Border haats remain asupplementary sourceof income forBangladesh vendors


Border haats have significantly contributed to themonthly income of the labourers. The rates of thelabourers are not fixed by law and are relativelyflexible for the local Vendors to decide, subject tothe availability and work efficiency. From the Indiaside, Kalaichar labourers (five from each of thehaats were interviewed randomly) earn INR3,060(US$44) per month from the border haats. Thedaily rates are higher owing to the small number ofthe efficient workforce in the locality together with adifficult terrain, which makes head carriage ofgoods more exacting. The average daily wage rateof labourers for both the Meghalaya haats is INR400, much higher than the Tripura ones. This isalso considered to be major reasons behind the lessprofit margins of the Kalaichar vendors.

The other three haats (Balat and Tripura) in Indiaaverage INR1,260 (US$18) per month for thelabourers. Therefore, border haats are undeniablyan important source of income for all these localinhabitants. In fact, the income that a labourerearns from a day�s work at the haat isapproximately equal to the amount he earns fromother avenues over the rest of the week. The labourcharges in the Chittagong division of Bangladeshare much less in view of the abundance of workforce available in these border regions.

The average monthly charges of the interviewedlabourers in this region of Bangladesh is INR796(US$11), less than the total Bangladesh average oflabourers interviewed across all Bangladesh haats,that is, INR1,137 (US$16). The wage rates ofSunamganj and Kurigram labourers are higherbecause the approach to the haats lies acrossdifficult terrains. On the whole the magnitude ofincome for labourers from border haat trade isgreater on the Indian side, owing to the largerdemand for work force necessitated by a muchlarger volume of goods that need to be transportedfor trade at the border haat.

Impact of the Border Haat on Profitsand Re-investmentAs in respect of some other issues (like gender), ourobservations with regard to the above questionhave varied with regions. In Tripura (India), vendorsgenerally re-invest their border haat profits towardsthe expansion of their border haat business. In fact,

some of the �vendors� in the Srinagar area seemto be keen on re-investment as much as they areconfident about having their vendor cardsrenewed upon expiry of their existing validity.

Subhasis, a vendor trading in cosmetics commentsthat: �Bangladeshi people have a great fancy forIndian cosmetics and I am doing better businesswith Indian cosmetics at the haat than in my ownlocality.� It needs to be clarified at this juncturethat there is an informal committee, consistingpredominantly of prominent vendors and localPanchayat officials in Tripura (particularlySrinagar), which gives its feedback on the regularfunctioning of the haats to an official committeecomprising the District Magistrate, AdditionalDistrict Magistrate, BSF personnel and localpolice, which has the authority to issue vendorcards. It is this informal committee, which takesthe majority of the decisions in this regard.

Responses of certain members seem to indicatethis trend. Manik is seen to be making goodbusiness, selling chocolates, biscuits and similarpackaged edibles and is confident of getting hisvendorship renewed: �If the authorities do notrenew our vendor cards, after we have put in somuch of effort to get into this trade, who else willthey consider for vendorship?�

Our survey team sees in Manik�s response, a hintthat vendor cards are more readily available tothose who can pursue the right channels and exertinfluence upon the issuing authorities and also tohave the ability to carry out a business all yearround. The keenness to secure vendorship infuture haats cannot be delinked from theirinclination to re-invest their border haat profits forexpansion of their border haat businesses. It isalso clear from some of their responses that theyare beginning to look at border haat as a possiblepermanent source of income in the future.

In Kamalasagar, although an unofficial committeeexists as in Srinagar, its role seems to becomparatively passive. This is because there is agreater degree of official involvement andsurveillance over border haat trading. In thecourse of our interactions with some of themembers of this committee, we found that thehead of this committee is the Additional District


Magistrate of Sepahijela, who generally operatesthrough an official � Gram Rojgar Shebok, whokeeps the committee informed about detailspertaining to haat activity on the basis of day-to-day observations. Under the circumstances, thescope for vendors to exert influence on theauthorities in respect of issuance and renewal ofvendor cards is less than that seen in Srinagar.Vendors in Kamalasagar, therefore, are not sooptimistic that re-investing border haat profit forfurthering border haat business will be anagreeable venture on their part. What if theirvendor cards are not renewed?

Shefal, who sells export quality garments in thehaat, comments �My border haat income is morethan six times what I earn from my regular localgarment shop and I am keen to expand mybusiness. But I shall be very badly hit if for somereason my entry to the haat gets discontinued�. Apolicy recommendation coming out of this finding isthat: there should be a cut off date, by whichvendors are informed about renewals. This isimportant as vendors need to make advancepreparations for setting up business at the Haat.

For the corresponding haats on the Bangladeshside, Chhagalnaiya and Kasba, vendors seem to re-invest more on non-border haat business as thehaats continue to be a secondary source of income.This is generally because of the less demand forBangladesh goods on the part of Indian vendeesand possibly because of the comparatively lesspurchasing power of the Indian vendees.Bangladesh vendors display a clear lack ofenthusiasm about expanding their business forborder haat trade, which is captured in some oftheir responses to the survey team.

Joshimuddin has a grocery shop in Chhagalnaiyabazaar, which is the main source of his income. Hecomes to the border haat because he has received avendor card and he has arranged for somebody tohold fort at his regular shop on haat days. He looksupon this border haat engagement only as asecondary means to supplement his income: �Myborder haat involvement is only incidental to mymain business in Chhagalnaiya bazaar. If it comesto expansion of business, I don�t think about thehaat business independent of my main shop.�Joshimuddin�s response is understandable for his

monthly non-haat income is more than ninetimes of whatever profit he earns from borderhaat trade. The survey team has also observedthat many of the enclosures reserved forBangladeshi vendors at the Kasba haatremained vacant. This seems to suggest thatthere is lack of sufficient incentive andenthusiasm on the part of vendors in Bangladeshto participate in border haats as vendors. It is forthis reason that re-investment of border haatprofit for expansion of border haat business isnot a serious consideration for the Bangladeshivendors.

For the Meghalaya side of the Indo-Bangladeshborder, vendors are keen to look at the issue ofre-investment for expansion of their border haatbusiness. Subendhu, a vendor at the Balat haatis a prosperous vendor, selling woollen garmentsand blankets. He has a stable non-haat incomefrom businesses in Shillong. He has been makinggood business at the Balat haat and his haatprofit is twice as much as his non-haat income.He is keen to expand his business at the borderhaat and he is hopeful that his vendorship willbe renewed. As he confirms: �Since there is ademand for my goods at the border haat, whyshould my vendorship not be renewed? And if Iam assured of permanent vendorship at the haatI will of course reinvest to expand my sales.�

It is seen that vendors whose non-haat income isstable and takes care of the basic livelihoodconcerns, are keen on re-investing their borderhaat profits for expanding their border haatbusinesses in the hope of reaping higher profits.Teidaline Khangni, a vendor at the Balat haathas a regular shop where she sells plastic andmelamine ware. She has been doing goodbusiness at the haat and is keen to boost herborder haat sales. She claims: �My �Pakka� shop(brick and mortar shop) sustains me all throughthe year. But it is my border haat trade, whichhas given me a much needed extra income andso I am willing to invest a part of it towards theexpansion of my business at the border haat.� Itseems that hope of a renewal of vendorship actsas a definite incentive for re-investment toaugment business at the border haat. Thiselement of apprehension on the part of thevendors is not altogether unfounded. Women


vendors at Balat had been insisting on morevendorships in favour of women and they wereultimately able to prevail upon members of theinformal committee to include more womenvendors.

On the basis of inputs from the informal committee,the local administration of Balat (Meghalaya) hasshuffled the vendors� list as recent as April 2016 toincorporate more women vendors. As a result, 12out of the 25 authorised vendors are women. In theprocess, some of the male vendors had to facetermination of their vendorship. This confirms thescepticism on part of certain male vendors at theBalat haat, which our survey team sensed withregard to their renewal of vendorships.

In Kalaichar, however, the officials confirmed thatvendor lists are valid for three years at a time andchanges are, therefore, not expected before 2017.Despite the relatively longer duration of placementat the haat for vendors of Kalaichar (in comparisonto Balat), people remain sceptical about re-investing in border haat trade for a number ofreasons. The financial turnovers for Kalaicharvendors are less because they trade primarily inspices, buying and selling in bulk at wholesalerates, consequently profit margins are less. Suchcommodities as Spices do not fetch high profitmargins per unit even when sold in bulk as wouldbe possible in case of commodities like cosmeticgoods. Also, we have noticed in Kalaichar thatcustoms officials have imposed a ban on a numberof items of �non-local� produce. Although this banhas been lifted in the latest addendums, the earlierorder continues to prevail in practice.

The Kurigram and Sunamganj haat vendors arenot oriented towards re-investment for border haattrade because demands are substantially less onthe part of Indian vendees. Bangladesh vendorshave often been seen to come to the haat withhybrid vegetables, which generally do not fetch ahigh price and understandably profit margins arelow. There is, however, demand on the part ofIndian vendees for fish, both dried and sweetwater varieties. But, Bangladesh guards often club�fish� with �livestock� and since there is a ban onthe latter, the vendors refrain from carrying fish tothe haat regularly, and even when they do,quantities are modest.

Impact of the Border Haat on TotalIncomeborder haats play a significant role inaugmenting the monthly income of variousstakeholders in general and of vendors inparticular. This section estimates the percentageof such increase. Our field survey records thatborder haat profit constitutes 73 per cent of theaverage monthly income of the Indian vendors.This explains the growing demand for vendorcards on the Indian side of the border. Lookingat the income figures of the vendors prior to thecommencement of haat and after thecommencement of border haat trade, we findthat the average growth rate of the income ofthese Indian vendors is nearly 300 per cent, withthe maximum increase being noticed in the caseof the vendors of Srinagar haat in Tripura. Thiscan be explained by less regulation and officialintervention on the part of officials in Srinagar,an increasing demand for Indian products andsupply to match. Indian vendors have also beenfound to trade in bulk quantities, particularlywith regard to cosmetics & toiletries and spices.

In fact, the haat administrative body (borderhaat Management Committee), which has stronglinks with the local Panchayat officials, plans toincrease the number of haat days in response tothe growing local demand for allowing haat onFridays in addition to the usual haat day atSrinagar (Tuesday). This is because Friday is anofficial weekly holiday in Bangladesh andvendors on the Indian side are hopeful ofattracting more vendees from Bangladesh if thehaat is held on a holiday.

Border haats play asignificant role inaugmenting themonthly income ofvarious stakeholders ingeneral and of vendorsin particular


On the Bangladesh side, vendors of Sunamganj(which corresponds to Balat) are seen to earn thehighest average total income � INR18,576 (BDT22,291/US$265) of which 37 per cent comesfrom border haat trade. This could be explainedby the demand of Indian vendees on this side forBangladeshi processed food items and fish. It is tobe mentioned in this context that the MOU onborder trade between Bangladesh and Indiaimposes a general ban on livestock for trade at theborder haat. However, there is an unresolvedcontroversy as to whether fish should be clubbedwith livestock. We have seen in the earlier sectionthat fish is clubbed with livestock in Sunamganjand Kurigram haats, but in Chhagalnaiya, usually,it is not so clubbed and that is why Bangladeshvendors are able to carry large quantities of fish tothe border haat where they are lapped up byIndian vendees. But the situation is not so simple.Sometimes, Border Guard Bangladesh (BGB) atChhagalnaiya is more inflexible and does notallow passage of fish.

Fazlul, a fish monger at the Chhagalnaiya haat,therefore, laments: �There is no consistency in therules that our Border Guards enforce- sometimeswhen I carry fish, they say nothing and on myunlucky days, they will not allow entry of even amodest quantity.� Modhu Mia, another fishmonger at this haat offers a different perspective:�If we are allowed to carry and sell fish on a

regular basis, at the border haat, we can hope fora steady profit because Indian vendees are notonly interested in our fish but in bulk purchase ofour fish.� This is corroborated by the perception ofour survey team, which has noted Indian vendeesat Srinagar buying fish from Bangladesh vendorsin large quantities for sale in the local markets onthe Indian side at higher prices. On the otherhand, Anwar Hossain, the BGB Commander at theChhagalnaiya haat informs that: �Wholesaletrade is forbidden at border haats and that is whywe cannot turn a blind eye when fish mongers tryto carry huge quantities of fish, which attractwholesale vendees from the Indian side.�

Among the border haat vendors on theBangladesh side, Kasba and Chhagalnaiya(Chittagong) have shown the least income growthwith border haat profits constituting only 26 and23 per cent of their total monthly averageincomes. The field researchers attribute thisprimarily to the small number of vendees on theIndian side together with a generally low demandfor goods that Bangladesh vendors makeavailable at the haats. It has also been pointed outin an earlier section that many of the enclosuresmeant for Bangladesh vendors remain vacant. Bycontrast, vendees on the Bangladesh side show upin large numbers because vendors on the Indianside have a wider variety of goods to offer. Evenwhere the variety is relatively less as in

Chart 3.3: Percentage of Border haat income as a share of total income for the Vendors (Calculated)


Kamalasagar (Tripura): corresponding to Kasbahaat in Chittagong, Bangladesh, the demand forwhatever available remains.

The two border haats in Meghalaya � Kalaicharand Balat � reveal similar patterns when it comesto how much a vendor makes from a border haatas a share of his/her monthly income. For vendorsin Meghalaya, border haats accounts forapproximately 70 per cent of their total monthlyaverage income, which is less compared to Tripuravendors. This is because in Balat, one of the majoritems sold by vendors, mostly tribals, happens tobe seasonal fruits, which are available only duringwinter months, when we visited the haat for thesurvey. They have limited goods to sell at othertimes of the year, like minor forest produce andspices, which yield less profit and in the processreduces the average haat income.

Therisia, a tribal vendor at the Balat haat confirms:�We look forward to the haat in winter becausethere is good demand for our fruits, especiallyoranges. But during other times, we don�t get toearn much�. Kalaichar vendors claim that thequantum of border haat profits could haveincreased if the customs officials were lessinterventionist and permitted the passage of agreater quantity of goods for trade at the borderhaat. There is also another problem, which theKalaichar vendors face. Vendees on the Kurigramside (Bangladesh) have to travel through roughterrain including waterways, which makes theirtransportation difficult particularly duringmonsoons when waterbodies overflow. Inclementweather conditions have often resulted in theclosure of the haat, which resumes only once theweather improves.

Bangladeshi vendors look upon border haat tradeas a secondary source of income. However, forKurigram vendors a little under half of their totalmonthly income comes from profits they make atthe border haat. But for Sunamganj, the haatprovides a little over a third of their monthlyincome. This may be explained by the fact that theBangladeshi vendors sell melamine (bowls, dishesetc.) and plastic (tables, chairs etc.) ware for whichthere is a great demand among Indian vendeeswho buy there products not only for their domesticconsumption but also for sale in local/nearbymarkets and even in distant Shillong with lucrative

profit margins. It may be noted that thepercentage share of border haat profits in the totalmonthly income is greater in the case of vendorsof Kurigram and Sunamganj compared to otherhaats in Bangladesh.

So far as the percentage share of border haatincome in the total monthly income of thelabourers is concerned, Indian labourers seem tobenefit more from participation in border haattrade. The highest paid labourers are seen tobelong to the Kalaichar-Kurigram region,particularly because of the demand for labour-intensive work there. For example, the last 200meters of the approach to border haat atKalaichar is undulating and rough terrain, withoutcement or concrete, making it difficult even forthelas/hand-carts to traverse. This necessitatessubstantial loads to be carried on the heads oflabourers. Thus, people work at a much higherrate with an average of INR3,060 (US$44) inwages per month, which is approximately 31 percent of their total monthly income. Kurigram haat,on the other hand is a flood-prone region withactivities getting hampered during monsoons. Theexistence of waterways makes transportationdifficult and goods are often carried on boats.Thus, the wage rates are understandably high inKurigram where the haat income share goes up to27 per cent of the total monthly income. This is incontrast to Chhagalnaiya and Sunamganj, wherethe haat income share hovers over 16 � 19 percent of the total monthly income.

The Tripura haats (on the Indian side) are muchbetter in terms of roads, infrastructure andapproaches. In fact, some of the vendors getfamily connections and acquaintances to performas labourers and are thus able to bring downwage rates. In Srinagar, our survey team cameacross a peculiar phenomenon. Given the ceilingon the number of vendors that are permitted at thehaat, some vendors have been found to strike adeal with a non-vendor who is for all practicalpurposes a partner in his border haat business.This partner gets entry as a labourer but functionsas a partner and the profits of the business areshared between the two. Such understandingbetween vendors and �so - called labourers�reduces the wage rate of labour. These labourerseither share stalls with regular vendors orsometimes sell their goods as footpath vendors.


At the Kasba haat (Bangladesh), whichcorresponds to Kamalasagar (India), vendors earnless from border haats. This is because the profitsearned by the vendors on the Bangladesh side areless and, therefore, the labourers are also paid lesswages. The earlier section has already drawnattention to the irregular demand for labour at thisparticular location and such irregular demanddepresses labour rates. It is estimated that forlabourers in Kasba, participation in border haattrade fetches them about one-fifth of their totalmonthly income. Chart 3.3 illustrates the scenario:

Balat is situated in the interior of Meghalaya andalthough there is a substantial workforce available,regular job opportunities are comparatively less.This situation compels labourers to take up ad-hocjobs at relatively low wage rates at the border haat.Thus, although labourers are paid less, the amountconstitutes 36 per cent of their total monthlyincome. In fact, women labourers are oftenstanding on the approach to the haat premises,seeking work from passing vendors. Women fromnearby villages like Pyndenkseh, Brithausaw andLithamsaw are often keen to make some extraincome once they are through with their domesticchores.

Linsda, a woman resident of Dangar, opines: �Thehaat allows us the opportunity for some extraincome, which is welcome and handy given our

generally impoverished condition.� Theabundance of such workforce not only ensures asteady supply of labour for the vendors at thehaat, but also enables the latter to depress wagerates to their advantage. For the labourers atSunamganj (Bangladesh), the haat does notconstitute the mainstay of the monthly income.Although the wage rate at this location is animpressive BDT400 (US$5) per haat day, itconstitutes only one-fifth of their total monthlyincome.

Interacting with transporters, our research teamfound that they look upon the border haats as alucrative source of income. What they earn onhaat days by way of transporting vendors alongwith their goods, is more than what they earn onnon-haat days. It is to be noted in the datapresented below that transporters generally carrya much greater volume of goods on haat days incontrast to non-haat days when they carry morepassengers. Greater business at the haat orincrease in the number of haat days will meanprospects of greater income for the transporters.

Md. Nurul Haque, the owner of a mini-van fromSunamganj region (Bangladesh), uses his vehicleonly on haat days for transporting vendors andtheir goods. He claims: �I operate my van onlyon haat days because I am able to charge morefor transporting goods and I am certain about

Chart 3.4: Percentage of border haat income as a share of total monthly income of Labourers


getting customers unlike non-haat days when there isuncertainty about the number of customers who will want toavail my services along the same route.� Md. Sansuddin fromKalaichar, Meghalaya (India) explains why he is keen onexpansion of border haat trade by way of more haat days: �Onnon-haat days, I make an average of four trips carrying morepassengers and less goods and earning half of what I manageto earn on haat days, when the trips are more and rates arehigher because I get to carry a much larger volume of goods�.

It appears from the responses of the transporters that borderhaat trade has boosted their income by enabling them to servenot just as carriers of passengers but also of goods, which areto be traded at the haat. One may recall in this context what wehighlighted in an earlier section, namely the grievances ofcertain transporters who are conscious of the nodal role thatthey play in border haat trade; yet there is no forum where theycan articulate their interests and demands for better facilities forthem.

Table 3.2: Responses of transporters on their business on haat days

Haats / No. of one No. of Volume of goods Charge for one �wayParameters of way trips passengers per trip trip (charge perPublic transport per trip (carried in Kgs) person* no. of

passengers per trip)

India side Tripura haats 2 17 275 1050 INR

Meghalaya haats 3 5 292 1108 INR

Bangladesh side Chittagong haats 10 14 43 504 INR (605 BDT)

Rangpur-Sylhet haats 8 5 153 272 INR (326 BDT)Source: Compiled from the primary survey dataConversion rate: INR 1 = BDT 1.20

It appears from theresponses of thetransporters thatborder haat tradehas boosted theirincome by enablingthem to serve notjust as carriers ofpassengers but alsoof goods, which areto be traded at thehaat

Table 3.3: Responses of transporters on their business on non-haat days

Haats / Parameters of No. of one No. of Volume of goods Charge for one �Public transport way trips passengers (carried in Kgs) way tripIndia side Tripura haats 4 45 33 700 INR

Meghalaya haats 3 46 25 887INR

Bangladesh side Chittagong haats 5 9 20 166 INR (199 BDT)

Rangpur-Sylhet haats 3 4 33 57 INR (68 BDT)Source: Compiled from the primary survey dataConversion rate: INR 1 = BDT 1.20


Influence of Primary Occupation onEngagement at the Border HaatThe primary occupation of most of the Vendors iseither agriculture or local trade, in case of both thecountries. We categorise job types into threesegments: agriculture, local trade and others, whichinclude non-agricultural activities and salaried jobs.Among the vendors interviewed, 29 out of 40 arelocal vendors in India and 31 out of 40 inBangladesh. Thus, those who are already running alocal business are typically the ones who take up avendor card. Either this is because of confidenceand know-how, or because they have the capitalfor investment. It could also be because the haatprocedures require vendors, who are able to run apukka vendor stall all year round, meaning thatlocal business people opt in. It could also be thecase that local vendors are better off in thecommunity, and have more clout, and thus are ableto acquire the vendor card.

Their border haat investment figures reveal thatlocal vendors in India invest the most in the borderhaats, on an average INR1.75 lakhs (US$2,500)per month for four haat days. Agriculturists haveinvested around INR1.64 lakhs (US$2,343) permonth on purchases, but with larger profit margins.Table 3.4 outlines these figures.

In all the Indian haats, except for Kamalasagar(Tripura), vendors are permitted to sell anycommodity at the haat, irrespective of their regularprofession, as long as the commodity is among the

items approved by official regulations for sales atthe haat. In Kamalasagar however, official haatmanagement authority consults the vendors andpre-assigns specific commodities/products tothem on the basis of their regular professions.Our data suggest that there is no appreciabledifference in the amount of investment on thepart of Indian agriculturists and local vendors.However, the profit margins reaped by the localvendors are less than that of the agriculturists.This is because there is always a demand forgood quality agricultural goods like seasonalfruits and vegetables, a superior quality of betelnuts and home grown spices. For some farmersthese are home-grown while for some others theyare procured from elsewhere. Farmers observethat the investment costs in case of theseagricultural commodities are less than thecommodities bought locally and that is whyagricultural producers are able to ensure higherprofit margins when they sell their produce at thehaats.

In this context, it is relevant to highlight LindaMarak�s opinion: �I grow my spices with careand that is why they are of such good qualityand vendees at the haat look forward to them.They are also prepared to pay the price Idemand.� No wonder then, that for an agro-producer like Linda Marak, sales from borderhaat trade can yield profits as high as 50 percent. By contrast, local vendors who sell non-agricultural commodities like cosmetics and otherconsumer goods basically function as middlemen,

Table 3.4: Occupation wise average of border haat investments andcorresponding profits of the vendors

India BangladeshVendors/Primary Average BH Average BH Average BH Average BHjob types investment per Profit per month investment per Profit per

month (in INR) (in INR) month (in INR) month (in INR)Agriculture 1,38,222 17,844 26,682 (32,018 BDT) 6,856 (8,227 BDT)

Local Trade 1,55,207 13,739 23,403 (28,084 BDT) 5,648 (6,778 BDT)

Others (Non-agricultural 87,500 14,150 20,819 (24,983 BDT) 4,376 (5,251 BDT)and Salaried)

Average 1,48,000 14,684 23,555 (28,266 BDT) 5,672 (6,806 BDT)Source: Calculated from the primary data setConversion rate: INR 1 = BDT 1.20


buying goods from different places in bulk andthen putting them up for sales at the haat. Thisfetches them a greater quantum of profit althoughper unit profit margins are less. These vendors,therefore, try to increase their profit margins byincreasing the quantum of goods for trade at thehaat buying in bulk and selling wholesale becausedemands for these consumer goods never seem todeteriorate.

It has been seen that for Indian vendors, borderhaat is a domain that constitutes the primarysource of their income. In the course of ourinteraction with several vendors across the borderhaats in Meghalaya and Tripura, we have foundthat most of them are keen to expand their sales atthe border haat. The appreciable profits that theyare able to earn are matched by a steady inflowand rise in the number of vendees that throng thehaat premises. It is, therefore, natural that several

vendors will be keen on larger investments forboosting their sales and profits through borderhaat trade. This also explains why vendors inaddition to homegrown products also procuregoods and commodities from other sources tocater to the demand that they experience atborder haats.

In comparing the various cost components ofvendors for border haat trade, our data, asevident in the table above confirms what we havehighlighted earlier, namely, that border haattrade constitutes the primary source of income forIndian vendors unlike in the case of theirBangladeshi counterparts. Indian vendors incur amuch larger investment in buying goods for saleat border haats and their expenses ontransportation and labour are also noticeablyhigher.

Table 3.5: Source of goods for sale at the border haats and their impact on border haat earnings

Source of goods India Bangladeshsold at the BHs/ No. of vendors Average BH No. of vendors Average BHaverage profit/income Income (in INR) Income (in INR)Produced by Self 4 9,650 3 6,528 INR (7,834 BDT)

Bought in own village 7 12,649 2 4,600 INR (5,520 BDT)

Nearest Market 28 15,964 14 5,457 INR (6,548 BDT)

Others (State Capitals/ 1 13,200 21 5,162 INR (6,194 BDT)through agent)Source: Compiled from the primary datasetConversion rate: INR 1 = BDT 1.20

Table 3.6: Cost components for vendors at border haatsversus costs of selling in Local Markets

Cost components : vendors

Countries/Markets Buying the Transport Labours Stall Rents Othersgoods for sale Cost Cost

India (in INR) BHs 1,48,000 3,025 2,836 120 45

Local Market 41,829 1,819 1,377 276 58

Bangladesh BHs 23,242 992 1,010 42 136(converted Local Market 1,13,434 1,357 753 638 72to INR)

Source: Compiled from the primary dataset


Our data indicate that the percentage of profit(which is the average profit percentage of thetotal average investment figures) is 11 per cent inthe case of agro-based vendors in India, which ismore than the case of local vendors who are ableto earn about 8 per cent and with a greaterinvestment. The non-agro and salaried ones (twovendors in India) however, reap a profit of 13 percent per month from their total haat investment.

On the Bangladesh side, investment on the part ofvendors selling agricultural goods is the highest.Their investment in border haat trade is INR37,003 (BDT 44,404/US$529). The local vendorson the other hand invest INR 30,539(BDT36,647/US$436) which is less by BDT7,752(US$92). But, surprisingly, the profit margins forboth the categories are similar as indicated inChart 3.5, which is 18 per cent. This can beaccounted by the fact that Bangladeshivegetables, which are considered an inferiorvariety by vendees, are sold at much cheaperrates, in fact at wholesale prices, particularly inthe Meghalaya-Rangpur/Sylhet region. Thegarments, sold by the local vendors on the otherhand (mostly of inferior quality/low-value) arealso sold at a cheaper rate, but for attracting

more Indian vendees. Bangladeshi vendors sellplastic and melamine-ware to Indian vendees atrelatively cheap rates. Indian vendees on their partdo not buy them for their own consumption but inbulk for sale outside at lucrative prices, therebyensuring for themselves a good profit margin.

Influence of Socio-economic Statuson Engagement at the Border HaatIn the previous section, the study has enquiredwhether the professional category or type of job ofa vendor has a telling effect on his/her haatincome. We now zoom in on other factors likeincome groups, caste, tribe, religion and educationto examine whether they impact border haatearnings. For this purpose, vendors have beencategorised who earn a profit of more thanINR20,000 (US$286) per month from border haattrade on the Indian side as the �high incomeearners�.

Given that unlike in the case of Indian vendors,vendors on the Bangladesh side look upon borderhaat trade as a secondary source of their incomeand are also seen to reap comparatively lowerprofits, Bangladeshi vendors have been bracketed

Chart 3.5: Percentage of Profit (India and Bangladesh vendors)


in the �high income category� if they have beenfound to earn a profit of BDT15,000 (INR12,500/US$179) and above. Having identified the highincome categories, in both the countries, we nowseek to examine if the variables mentioned in thequestion (income group, caste, tribe, religion,education etc.) has a dominant role in the incomeearning capacities of these groups.

Using the aforementioned INR20,000 (US$286)as the minimum monthly profit required forbracketing a vendor in the high income category,we have been able to identify nine such vendorson the Indian side. In terms of composition, fourof them belong to the �general� caste category (ofwho three are from Srinagar, Tripura and onefrom Balat, Meghalaya) and all these four areBengali Hindus as well. Two other vendors arealso Bengali Hindus, based in Kamalasagar,Tripura but they both belong to the ScheduledCastes.

The two women vendors (both from Meghalaya:one from Balat and one from Kalaichar) amongstthe nine identified in the high income categorybelong to the Scheduled Tribes and they areChristians. Finally there is a single Muslim vendorfrom Kalaichar, Meghalaya. In studying the socialcomposition of this group of nine vendors, it isevident that there is no correlation between highincome categories and caste and religiousaffiliations. While we have observed that themajority (six of the nine vendors in focus) belongsto the Bengali Hindu community, the presence ofthree others in the same income category standsin the way of a meaningful generalisation. This isalso because although all the six of these ninevendors are Bengali Hindus, they do not have thesame caste affiliation.

One clarification seems necessary. The ninevendors we have identified as the �high income

earners� have been so identified on the basis oftheir declared profits from border haat trade.However, our survey team felt that some of themwere understating their incomes. The perception ofthe survey team about general correctness of theirresponses has been tabulated below:

Perhaps, Table 3.7 will not allow us to draw anysignificant conclusion, more so because one mayargue that the tendency to deflate incomes is notuncommon. However, we wanted to put ourobservations on record, while also reaffirming theobjectivity in the selection of these vendors for thecategory of the high-income earners.

On the Bangladesh side, only three vendorsbelong to the category of high income earnerswhose average monthly income is approximatelyin the range of BDT15,000 (INR12,429/US$179)and above. Once again, we are in no position todraw any correlation between them and theiraffiliations in terms of caste or religion. All threeare Muslims of whom two are from Sunamganjand one is from Kurigram. It is to be rememberedthat of the 40 Bangladeshi vendors interviewed byour research team, only three are Hindus. Thisclarifies why it makes no sense to draw anycorrelation between the high income earners andtheir religious identity.

One must also bear in mind that border haatfetches only a supplementary portion of their totalincome for all vendors in Bangladesh with anaverage border haat share of 35 per cent of theirtotal average monthly income. However, it is to benoted that for the three vendors who have beenidentified as the high income earners at the borderhaat are all well-established vendors in theirrespective localities and the share of their borderhaat profits in their average total income is about45 per cent.

Table: 3.7: Observations on the actual responses of high income earners at the border haat

Observations Correct claim of Deflated claim of Correct claim of Deflated claim ofMiddle Income Middle income/ Higher Income Higher income/

(INR 10,000-25,000) actually earns more (INR 25,000 and above) actually earns more

Number of Vendors 1 2 3 3

Source: Compiled from the primary data set


We have classified seven levels of educationalachievements ranging from illiteracy to graduation.So far as the income of the vendors is concerned,we have looked at two components: averagemonthly profits earned by them at the border haatsand their average monthly non-haat incomeaccruing from other businesses, salaried jobs, non-agricultural activities, etc.

Our survey suggests that vendors with higheracademic credentials (graduation and above) onthe India side have earned less profits from borderhaat trade, the average monthly figure beingINR11,550 (US$165), which is lower than even theprimary school pass out vendors. This confirms thatthere is no correlation between educational levelsof vendors and their success stories at border haattrade.

Chart 3.6 shows the comparative graphs of Indianand Bangladeshi vendors in terms of their profits/incomes earned and their educational attainments.Arun, a vendor Amlighat (Srinagar), Tripura holdsa Master�s Degree from the Tripura State Universitymakes an average profit of INR11,200 (US$160)per month from border haat, whereas the averagemonthly profit of the Srinagar vendors, who areless qualified are able to earn higher profitsaveraging INR17,000 (US$243) per month.

Arun laments: �More than degrees, one musthave business acumen and the right contacts formaking it big at the border haat�. Theconfirmation that there is no correlation betweenformal educational achievement and successfulbusiness stories at the haat perhaps holds animplication for policy analysts. In this part of theworld, where means to afford formal educationare often unavailable with major segments of thepopulation, particularly those living in remoteareas, poverty alleviation is a major concern ofgovernments. Perhaps, more people can beencouraged to participate in arenas like borderhaat trade and the government can evencontemplate supportive measures and institutionsto build their capacity to participate in such trademeaningfully.

Regarding the non-haat incomes, Indian vendorsearn much less for all the haat locations,irrespective of region. They claim by and largethat ever since the inception of the haat, the lion�sshare of their family income come from borderhaat trade and this is at present as much as 73per cent of their total household income. It is tobe noted that most of these vendors, who dependon border haat trade as their primary source ofincome, live in the interiors and remote areasfrom urban localities. The only exception is

Chart 3.6: Average border haat profit in relation to the education level


Kamalasagar (located 55Kms from the Tripuracapital) where non- haat income figures arefound to be the highest and which is not a remotelocality nor poorly connected. Vendors who havenot been able to avail formal education beyondthe primary level are seen to earn the highestaverage non-haat income amounting to INR6,667(US$95) per month on an average. In the case ofnon-haat incomes therefore, we encounter thesame story namely, non-existence of anycorrelation between formal educationalattainments and incomes earned. This is equallytrue for the Bangladeshi vendors as evident inChart 3.7.

Status of Participation of vendorsand vendees at the Border HaatFour haats exist along the Indo-Bangladeshborder (two each in Tripura-Chittagong andMeghalaya-Rangpur-Sylhet sub-regions),presently operating on a weekly basis. TheSrinagar-Chaggalnaiya and Balat-Sunamganjborder haats are held every Tuesday while theKalaichar-Kurigram haat is held every Thursday.Recently the haat day for Kamalasagar-Kasba hasbeen changed from Thursday to Sunday onapproval from the joint border haatMC, in thehope of drawing more crowds from both sides ofthe border.

Chart 3.7: Average non-haat income in relation to the education level

NB: Zero points in Bangladesh data line means �no respondents� in those categories

As far as the participation rate in the border haatsis concerned, most of the India side vendors arefound to be quite regular. Of the 40 interviewed,36 respondents are found to have attended the last10 haats. The basic motivation behind such regularparticipation is the prospect for earning substantialprofits from border haat trade, which sometimesexceeds the non-haat income of the stakeholders,particularly vendors. Vendors are seen to beparticularly enthusiastic in Tripura, partly becausethe haat is a relatively recent development andpartly because the regulatory framework iscomparatively less rigid. That border haat incomehas resulted in a an improvement of livingstandards for most of these vendors as the surveyclearly indicates. This is reconfirmed by theeagerness of most of the vendors to have theirvendorship renewed.

Suman, a vendor selling grocery items at theSrinagar haat observed: �Ever since the haat hascome into operation, it seems better days havedawned on our lives and we only hope and praythat these haats become permanent along with ourvendorship�. The vendors are keen to ensurepermanence for their stay at the haat becomesclear from the way some vendors in Srinagar,Tripura have been seen to liaison with localPanchayat officials who are among the officialdecision makers regarding haat affairs. Some


vendors claim that they are regular at the haatbecause apart from the question of maintaining asteady inflow of profits, they are also keen toestablish their seriousness before haat officialsabout securing uninterrupted vendorship.

In Kamalasagar and Kalaichar, the scope forselling in bulk is comparatively less for Indianvendors than in other haats. This is because themain items that are put up for sale by Indianvendors include grocery items, garments and otherconsumer goods for which profit margins areconsiderable. These vendors claim that sale ofthese commodities is not very high at localmarkets. Shefal, a vendor at Kamalasagar said: �Itis very important for us to go to the haat becauseBangladeshi vendees seem to like our goods morethan our own countrymen. Also, the local peoplehave lot of choices because there are many localsellers offering grocery items or garments�. So,although these commodities are sold in relativelysmall quantities (compared to spices andcosmetics) on a particular haat day, vendors areable to increase their volume of profit bymaintaining regularity on all haat days.

There is also another dimension to the question ofregular participation at the haats on the part ofvendors. It has been seen recently at Balat that thelist of vendors has been revised to accommodatesix new women vendors thereby taking the numberof women vendors to 12. This has beenimplemented at the cost of discontinuingvendorship for some vendors largely on thegrounds of irregularity at the haats. The unstatedmessage seems to have travelled to relevantquarters that regular participation at the haat onthe part of vendors could be a favourable factorwhen it comes to renewal of vendorship. Needlessto add that vendors, for whatever individualreasons, are found to be regular at border haattrade.

For the Bangladesh Vendors, 36 (out of 40)registered their responses as particularly regular,attending the last 10 haats. In fact, all of themhave been quite regular in their participation. Thisclaim on part of the Bangladesh vendors is,however, not endorsed by our research team. Infact, the day we visited Kasba (Chittagong) andKurigram (Rangpur) haats, we encountered fewer

number of vendors than that assigned on theparticular haat day. The quantities of goodscarried by some of the vendors were negligible.The prescribed sitting arrangements inside thehaats seemed to be underutilised by theBangladeshi vendors in the sense that we found alot of enclosures either empty or the availablespace unutilised. Interestingly, at the Kalaichar-Kurigram border haat, we found that takingadvantage of this situation, some of the Indianvendors had occupied some of the places allottedto the Bangladeshi vendors.

In Chhagalnaiya and Sunamganj, however,vendors were found to be more participative andregular at the border haats. This is despite thefact that the average haat profit of Chhagalnaiyais least. It may be recalled at this juncture thatvendors in this region, reap a substantial incomefrom non-haat sources. One wonders if thisregularity can be attributed to betterinfrastructural conditions like easy access to theborder haats and better transportation facilities.

For the vendees, 37 out of the 60 interviewed onthe India side regularly visited the haats. They aremostly from Balat and Srinagar, where certainBangladeshi goods are in great demand, asdiscussed in a previous section. The averagedistance covered by these vendees to reach thehaat premises is 2.7 Kms from their residences.Of the rest, 10 vendees attend the haat, twice amonth and they have to cover an averagedistance of 11.9 Kms. These vendees are mostlyfrom Kamalasagar and Kalaichar. The localresidents (vendees) are mostly tribals and poorand their generally low purchasing powerexplains their irregular visits to the haats. In viewof the proximity to the state capital, one canunderstand the motley crowd that can bewitnessed at the Kamalasagar haat. Apart fromthe regular stakeholders, occasional visitors alsoflow in from Agartala and as such the localvendees are not the only vendees. In theMeghalaya haats, vendees also come not only forself-consumption but also often as vendors,buying at the haat to sale in other places with theprospect of reaping good profit margins. Thus,the distance by itself is not a sufficient deterrent toregular participation on the part of vendees.


On the Bangladesh side, one-fourth of the vendeesinterviewed do not come to the border haatsregularly. They are mostly from Kasba, asKamalasagar (the corresponding Indian side) oftenfails to deliver the supply of their needed goods.Interestingly, Kurigram is the only haat to havewitnessed the highest number of regular vendees(that is vendees who frequent the haat regularly).The analysis, however, has two facets; as Kurigramhaat has the most difficult approach including thehazardous Jhinjiram river, visitors areunderstandably fewer in number and most of theregular vendees are those who live in closeproximity to the haat.

What is noteworthy is that, despite the hazardsinvolved in the journey to the haat, vendees docome from the Bangladesh side to buy spices atwholesale rates, for which there must be aconsiderable demand on the Bangladesh side.They do not mind this hazardous journey becausethe goods they come to buy fetch them good profit.This is reaffirmed by the fact that Bangladeshvendees have also been seen to make purchasesbeyond the permitted US$100 as per establishedrules (As per the 2017 MoU, the purchasing limithas now been increased to US$200). One canhardly overlook the policy implication that thissituation has to offer: better infrastructure facilitiesfor participants by way of better roads and bettertransportation facilities will definitely provideborder haat trade with a much needed boost.

Influence of Ease of Location Accesson Engagement at the Border HaatThe mode of transport used by the vendors ofboth the countries seems to depend on the volumeof goods they carry to the haat. As per theexisting regulations, vendors are generallyselected from a radius of 5 kms surrounding thehaat premise. In this section, the study has tried tofind out any linkage between the mode oftransport used by vendors and their border haatprofit and total income per month.

In the following Table, we have categorised fourmodes of transportation and linked them to theprofits and incomes earned by their respectiveusers. It is to be noted that vendors mostly use thesame mode of transport for themselves along withtheir goods. Hence, the following table considerstransport of goods as the basis of analysis.

Most vendors on both sides of the border prefer tohire a vehicle for their goods. Only a few sharethe vehicle, most hire the whole thing for theirpersonal use. Profits are good, possibly becausethe quantity of goods is greater. We are unable todraw any generalisation about those who ownvehicle/cycle from the above data.

Those who hire vehicles claim to earn INR15,456(US$221) as average border haat profit permonth and INR20,800 (US$297) as the totalmonthly income. Tripura vendors do not seem toshare their hired vehicles with any of their fellowvendors, even if there is space foraccommodating more goods. The Balat vendorson the contrary indulge in such sharing. Balatvendors do so in order to bring down theindividual cost of hiring particularly when theyare carrying commodities in relatively smallquantities. This does not happen during seasonswhen popular fruits and vegetables grown for atsuch times individual vendors need the entirevehicle to load their produce. Another interestingfact is that, even if one-two vendors in Balat canafford to buy cars for their personal usage (fortransportation to the haat or otherwise), they arenot too keen because maintenance can becomevery expensive given the poor road conditions(mainly from Mawsynram to Balat). Maintaining avehicle often becomes more expensive than hiring

Despite hazards involvedin the journey to the haat,vendees do come fromthe Bangladesh side tobuy spices at wholesalerates, for which theremust be a considerabledemand on theBangladesh side


Table 3.8: Mode of transport to Border haat for goods of vendors

India BangladeshMode of No. of Average Average No. of Average Averagetransport to vendors BH Profit Total vendors BH Profit TotalBH and (in INR) Income (in BDT) Incomeaverage (in INR) (in BDT)profit/income

Hired Vehicle 30 15,456* 20,800* 39 6,715 20,607

Owned Vehicleexcept cycle 1 17,200 25,200 NA NA NA

Owned cycle 1 15,240 19,240 1 5,080 26,080

Hired Shared Vehicle 6 10,050 15,583 NA NA NA

*Vendors who walked to the border haats are included in the hired vehicle category as they have used hired vehicles tocarry their goodsSource: Compiled from the primary dataset

one. When it comes to reaching other localmarkets, Indian vendors mostly resort to walkingor avail free transport as highlighted in Table 3.9.

The Bangladeshi vendors on the other hand mostlyreserve auto-rickshaws and load them, perhapsover-load them, with goods for the border haattrade. Our field perception suggests that thequantum of goods carried by Bangladeshi vendorsis generally less than those of Indian counterpartsand, therefore, they do not need heavy vehicles.No one owns vehicle of his own, although therehas been a trend of owing bicycles, on whichvendors often travel to the haat premises (exceptfor the Kurigram haat, where the only mode oftransportation is the boat). As the border haatsprovide them with less income, vendors who

generally hire vehicles average a monthly profitof BDT6,715 (US$80) as against their totalmonthly average of BDT20,607 (US$245). Thecycle - owing vendors, however, earn less in theborder haats but much more, overall. Thetransportation system has improved appreciablyand the number of auto-rickshaws has increasedin the Chittagong division (across theChhagalnaiya and Kasba border haats) ofBangladesh.

Our survey team clearly perceives that noBangladesh vendor is inclined to buy a vehicle tofacilitate trade at the border haat. This is falling inline with our finding that for Bangladeshi vendorsthe border haat, at least till now, is a secondarysource of income. 23 out of the 40 vendors

Table 3.9: Mode of transport to other local markets for Vendors

India BangladeshMode of No. of Average Average No. of Average Averagetransport to vendors Non-haat BH vendors Non-haat BHlocal market Income Income Income Incomeand average (in INR) (in INR) (in BDT) (in BDT)profit/income

Hired Vehicle 9 7,000 13,922 23 13,587 6,721

Owned cycle 3 2,667 13,913 1 21,000 5,080

Walk/Free Transport 28* 5,378 14,781 16* 14,331 6,708*Those who walk/use free transport generally headload goods or use hired pick-up vansSource: Compiled from the primary dataset


interviewed in Bangladesh claim to use hiredvehicles for carrying goods to the local markets.Interestingly, their non-haat income is lesscompared to those vendors who walk down tolocal markets and resort to head loading ofgoods. It is possible that the non-haat income ofthis latter category is higher because it is able tosave on cost of the transportation. As Moidul ofSunmganj area explains: �I find it economicallyprofitable to hire two labourers for carrying mygoods rather than resort to hired transport.�

With regard to modes of transport availed byvendees for reaching border haats in India, it isseen that majority of the vendees travelconsiderable distances to reach the haats. Thisconfirms what we have highlighted elsewhere thatalthough DGFT guidelines stipulate that along withvendors, even vendees should reside withinproximity of 5 Kms radius of the haat premises,this stipulation is clearly bypassed in case ofvendees. Those who walk to the haats are not theonly vendees. If the stipulation was seriouslyobserved, then of the 60 Indian vendeesinterviewed by our survey team, only 12 wouldhave been eligible for vendee cards.

On the other hand, the fact that so many arewilling to travel distances to reach border haatsfor the purpose of buying commodities barestestimony to the variety and quality and evengood prices at which goods must be available atthe haats to make their effort worthwhile. Perhapsthis table carries with it two significant policyimplications: first, the stipulation of residencewithin proximity of 5 Kms radius of border haatshould be withdrawn in case of vendees; second,infrastructural facilities like improvement of roadsand approaches to the haat and other facilities atthe haat like washrooms and restrooms ought tobe looked into.

In the case of Bangladesh, we also notice that asubstantial number of vendees travel distanceswell beyond 5 Kms to reach the border haats.Since in many of the Bangladesh haats, bothvendors and vendees have drawn attention tohazardous journeys in flood prone areas andbecause of the presence of waterbodies,infrastructural facilities at the haat need to belooked into with urgency and vigour.

Table 3.10: Modes of Transport availed by vendees to reach border haats

Country/Modes of transport (BH) No. of Average Average DistanceVendees Time Taken Cost of covered

to travel to Transportation (in Metres)the BHs (INR � for both(in Mins) India &

Bangladesh)India Hired Vehicle 12 21 109 11,125

Owned Vehicle 14 13 12 9,785

Hired-Shared Vehicle 17 20 28 6,735

Public Transport 5 51 24 38,800

Walk 12 11 0 954

Bangladesh Hired Vehicle 40 28 35 5,448

Owned Vehicle NA NA NA NA

Hired-Shared Vehicle NA NA NA NA

Public Transport NA NA NA NA

Walk/Boat 20 9 2 925

Source: Compiled from the primary dataset


border haats are relatively recentphenomenon, the first such Haatbeing established in Meghalayaonly in 2011. They have beenconceived with the basic aim ofproviding a forum for residentson both sides of the Border tobuy and sell their �local�produce. But such business canhappen peacefully only if lawand order in the region prevailand if the Haat itself is free fromdisturbances and threats liketheft. Safety and security withinthe Haat premises are thusimportant preconditions forefficient transaction of business.

Key Findings� There seems to be no general

threat to law and order at theborder haats

� Cases of petty theft andshoplifting suggest the needfor more security personnel tostrengthen vigilance � andthis is communicated byvendors from both India andBangladesh

� Increased security will also benecessitated by expandingbusiness at the Haats

� border haats have loweredthe extent of informal trade inthe region � unlike the case ofMankachar, informal tradecontinues to flourish throughDalu, which has no borderhaat nearby.

� The institutionalisation oftrade through fora like borderhaats means not only the

Chapter 4 Insights on Safety and Informal Trade

lowering of informal trade butalso substantial diminution offlow of unwelcomecommodities like drugs andexplosives.

Status of Law andOrder at the BorderHaatWe have interviewed allcategories of stakeholders for thepurpose of gauging theirperception of the aforementionedsubject. The vendors seem tosuggest by and large that thereseems to be no problem inrespect of law and order at thehaat premises. Vendees,labourers, transporters andparticularly women participantsacross all categories ofstakeholders confirm this point.Our survey team has also notedthe more or less regular presenceof local policemen alongsideBSF/BGB personnel for thepurpose of maintaining law andorder. The fact that in the courseof our interviews, none of thestakeholders has recalled orshared any incident or case ofany threat to their securityconfirms that law and orderprevail across the haats alongthe Indo-Bangladesh border.

However, a number ofstakeholders have drawnattention to cases of shopliftingand theft of goods within thehaat premises. This complaint

Border haats havebeen conceived withthe basic aim ofproviding a forum forresidents on bothsides of the Borderto buy and sell their�local� produce


has come mainly from the vendors and thelabourers. Vendors from India and Bangladeshseem to suggest that often a large quantity ofgoods is handled by individual vendors stationed intheir respective enclosures. During busy hours,when vendees crowd around particular haat inlarge numbers, it becomes very difficult to detectcases of shoplifting and this is becoming arecurrent problem at border haats. Although someof the vendors, particularly those who trade inappreciable quantities, are often accompanied bylabourers or helpers are unable to deal with theproblem.

Manik, a vendor from Srinagar (Tripura, India)selling cosmetics, expresses irritation at thisproblem: �Shoplifting at the border haat hasbecome a regular hazard, which we have to takein our stride because often shoplifters pick up apacket of soap bars or a talcum powder and weare unable to detect such cases because of thecrowd in front of our enclosures.�

Liton, a labourer assisting a vendor atKamalasagar observed: �The other day I saw alady pick up a bottle of shampoo, which she hid inher costume and in a flash mingled with the crowdand it was impossible to detect the miscreant!�Despite the vigilance that is exercised by haatofficials, particularly the local policemen and theBSF personnel in India, vendors stress that suchcases of theft are hardly being controlled.Subhendu, a vendor from Balat offers anexplanation: �Shoplifters pick up this or that item,which they slip into their pockets or costume, and itbecomes impossible to detect; besides this is atendency that some people have, it has to do withtheir mentality and behaviour and no amount ofvigilance can check this problem.�

It is not that the vendors are not trying to doanything to control this hazard. When asked howhe intends to overcome this problem, Therisia, avendor from Balat opines: �It is upsetting when wesuffer losses on account of shoplifting and theft atthe haat. I have decided to engage more labourersto help me sell my goods and keep a check onshoplifting.� Of late, we have seen that somevendors on the Indian side who generally trade inbulk quantities are recruiting more labourers simplyto strengthen vigilance over their goods andmaterials.

We have already drawn attention in earliersections to the fact that border haats in Tripuraare conspicuous by the absence of womenvendors and women labourers. When the malevendors at the Tripura haats were asked why theywere not involving more women participants,they seem to suggest by and large: �Vending at alocal shop is one thing, but vending at the borderhaat is a different activity altogether. This isbecause all kinds of people throng at the haatpremises requiring the vendor to be a lot moreactive and agile while conducting business at thehaat.

Vending at the haat is, therefore, a lot morestrenuous making it unsuitable for women.� Thisis understandable because vending at the haat isstrenuous, requiring unpacking of goods, settingthem up in the stall and then again closing shopand taking everything down in the evening. Thiscontention of the vendors reinforces what wehave observed earlier, that the residents aroundthe Tripura haats are predominantly conservativeBengalis and their households generallyencourage the women folk to remain engaged indomestic chores.

So far as the problems of shoplifting and pettytheft are concerned, vendors on the Bangladeshside seem to have similar grievances. But giventhat the volume of goods that Bangladeshvendors usually bring to the haat is less both inrespect of the number of items and the quantities,in which they are brought to the haat, theintensity of the grievance is perceptively less. AsMadhu Mia, a vendor from Chhagalnaiya pointsout: �Yes, once in a while this or that goesmissing and that can happen anywhere.� BesidesBangladeshi sellers are known to bring fish andvegetables to the haat, popular as these itemsare, among Indian vendees and these items canhardly be shoplifted without drawing attention.

As Shah Alam, a fish vendor at the Sunamganjborder haat observes: �Fish is too slippery acommodity to steal and it doesn�t make sense topick up one brinjal or a cabbage!� Labourers onthe Bangladesh side are on the whole of theopinion that law and order have alwaysprevailed at the border haats enablingtransaction of business in a smooth andorganised way and there are no problems like


theft or shoplifting. Are the labourers contradictingthe vendors? One must keep in mind that thevolume of trade that Bangladeshi vendors indulge inis much less compared to what we have seen withthe Indian vendors. Under the circumstances,Bangladesh vendors require additional labour onlyto transport goods to the haat enclosures, and notso much to assist them with the selling. It is,therefore, natural that labourers will not beconscious of cases of theft and shoplifting that thevendors have to cope with.

Status of Security Personnel at theBorder HaatOur survey team wanted to find out if haat officialswere aware of the persistent problems pertaining totheft and shoplifting that had been brought toattention by the vendors, particularly Indianvendors. When asked to respond on the generalsafety and security that border haats offered to thevarious stakeholders, the officials confirmed thatfrom their inception, border haats have alwaysoffered a secured forum for trade among theparticipants. They are quite categorical that nodisruption of law and order has taken place in andaround the border haat premises till date. Yes, theyare aware of petty thefts and cases of shoplifting, towhich vendors have drawn their attention across allhaats. The BSF personnel on the Indian side aretrying to cope with the problem in two ways.

First, haat officials entrusted with the responsibilityof monitoring and managing haat proceedings areurging all vendors to engage more labourers andsupport staffs to maintain better vigilance and checkon their goods and materials. Second, the BSFpersonnel working with local policemen are alsostrengthening their own internal security system byrecruiting more guards who will try to exercisegreater vigilance over activities at the border haat.It is pertinent in this context to point out that recentlya separate resting quarter for women officials/guards is being constructed at the Balat Border Out-Post (BOP). This is clearly in recognition of the factthat internal security of the haat premises needs tobe beefed up to guard against thefts, shopliftingand other such malpractices, to which variousstakeholders have been drawing the attention oflate.

Haat officials, particularly the BSF personnelwho are responsible for monitoring andmanaging activities at the border haat haveconfirmed that as yet, they have not encounteredany major legal offence, nor any disruption ofthe prevailing order. They inform that in case ofpetty offences, the usual practice is to hand overthe miscreant to the local police for necessaryaction. However, the haat officials and BSFpersonnel are also drawing attention to theincreasing volume of business at border haats,in view of which they suggest that morepersonnel must be deployed for ensuringimproved security and order at the border haats.The BGB in Bangladesh also acknowledges thegrowing volume of trade and business at theborder haats, in view of which they too suggestthe need for additional personnel to strengthensecurity and vigilance over various aspects ofborder haat trade. However, they did not sayanything about whether they have the capacityto provide such extra personnel.

Impact of the Border Haat on LocalInformal TradeLocal residents, those who have been inhabitingthese regions for over three or four decades,inform us that there was a time (approximately20 years ago), when there was no fence alongthe Indo-Bangladesh border. It would be logicalto assume that during those days, there wasregular exchange of goods and commoditiesbetween people inhabiting these regions. Andthen a wall was erected by way of a fence,which did segregate two peoples alright, but nottheir habits and practices. Hence, �informaltrade� flourished across the fence. The goodsusually exchanged included rice, wheat, flour,pulses, sugar, salt and other commodities. In themore recent past, these goods weresupplemented by medicines, toiletries andpackaged foods.

Despite the existence of a fence of barbed wire,informal trade was possible because one BSFguard was placed in charge of patrolling 2 Kmsof fenced border. The point that we want tomake is that the ethos of trade among thepeople in this region was firmly in place, from


early times and this process was not immenselyupset by the erection of a border between the twocountries.

That informal trade was rampant prior to theestablishment of border haats in Meghalaya andTripura is confirmed by official personnel of theBSF as well as by the respective StateGovernments. In the course of our interactions, weare informed that rich landlords on the Bangladeshside were regular customers of various luxury itemsfrom the Indian side, particularly Baluchari sareesand �English wine� (English wine is the localcoinage for imported/foreign liquor). Trucks wouldalso ply regularly from the Indian side, carryingcattle, particularly from Srinagar.

A few vendors at Srinagar also recall the regularflow of biscuits, fish and melamine products fromthe Bangladesh side to the Indians in Tripura andMeghalaya. Earlier, Indian sugar was a muchsought after item on the part of Bangladeshis andlarge quantities of sugar would be smuggled intoBangladesh through the routes of Srinagar andKrishnanagar. This declined perceptibly withBangladesh increasing its production of sugar(Bangladeshi sugar output rose by 20 per cent in2013-2014).

With the erection of the fence along the border,there was a decline in informal trade. Earlier, 25-30 persons were engaged in smuggling of luxuryitems like sarees, dresses and �English wine�, andabout 55 people were involved in the smuggling ofsugar. The number of people who remain involvedin informal trade has come down to a handful,approximately two to five, after the erection of thefence. Nikhil Sarkar and Samar Mitra, residents ofMadhavnagar Tripura, are vendors at the Srinagarborder haat. They contend: �Previously 80 per centpeople in this region were involved in informal andillegal trade, but at present not more than 1-2 percent are so involved.�

Of the 854 Kms of the border that Tripura shareswith Bangladesh, 10 Kms in the region ofSonamura remain unfenced, and it is through thisstretch that illegal trade continues to persist.Informal trade intensifies particularly during festiveseasons like Id and Durga Puja. During such times,there is a rising demand for sarees, dresses,cosmetics, toiletries, diapers (Huggies) and fish.

However, the scope of such informal trade hasperceptibly diminished with the establishment ofborder haats. A number of vendors in bothTripura and Meghalaya confess that they haveabandoned their involvement in informal tradeafter their engagement in border haats. This is notto suggest that border haat trade has brought acomplete stoppage to any kind of informal tradingbetween the two communities.

For example, during Id, when there is a risingdemand for Indian Baluchari sarees on the part ofBangladeshi people, the border haat itselfbecomes a forum of such exchange ofcommodities. Indian vendors carry such items tothe haat. Since there is a cap on the purchasinglimit of every vendee, interested and wealthycustomers in Bangladesh come to the haat withmore number of people with them to offset thepurchasing restriction/limit imposed on eachvendee. The same thing happens on the Indianside during Durga Puja festival when Indians havea rising demand for Dhakai Jamdani sarees anddelicacies like Hilsa fish and prawns.

Given this backdrop, people in this regionresponded to the institution of border haat withenthusiasm and fervour. The border haat in factoffered them a much needed forum to exchangetheir local produce. Border haat trade wassubsequently consolidated to include not merelytrade of items that are locally produced but alsoother commodities and items that graduallyassumed the proportions of regular business. This

Institutionalisation oftrade through borderhaats will substantiallydiminish the flow oftrade through informalchannels is reinforcedby the case of Dalu.(Channel of informaltrade between India-Bangladesh)


has immensely benefited vendees and sellers fromboth sides of the border and it has also resulted inproviding opportunities to earn for other incidentalstakeholders like labourers and transporters. Theinstitutionalisation of trade in such formalmechanisms has of course lessened the scope fortrade between the concerned people to flourishthrough informal channels.

The Kalaichar haat in Meghalaya is a case inpoint. Prior to the commencement of this haat,trade between the Indians and the Bangladeshisflourished through the well-known channel ofMankachar, situated at a distance of 15-20 Kmsfrom Kalaichar. The goods that used to flowthrough Mankachar included cows, wine, localtobacco products like Biri, spices like Jeera, sareesand garments, sugar and tea. The goods thattravel to India form the Bangladesh side includedbiscuits and bakery items, local fruit andvegetables and fish. Subsequent to theestablishment of the Kalaichar border haat, thevolume of traffic that used to flow to Mankacharhas substantially lessened and in fact it is almostnon-functional.

Our contention that institutionalisation of tradethrough border haats will substantially diminish theflow of trade through informal channels isreinforced by the case of Dalu. Dalu is anotherchannel of informal trade between the twocountries and has flourished since a long time. Butunlike in the case of Mankachar, there is noborder haat in the proximity of Dalu, which allowsinformal trade to flourish through Dalu withoutmuch dilution.

In fact, BSF personnel of Meghalaya point out thatno official step was taken to decrease the flow oftrade that used to happen informally throughMankachar. That happened as a naturalconsequence of the establishment of the borderhaat at Kalaichar. It is, therefore, logical to surmisethat trade is a natural urge among people who arenot self-sufficient and so when this need isrecognised through the institutionalisation offormal channels, informal channels eitherreconcile themselves to a much reduced scope orthey die a natural death altogether.

The trade that used to flourish informally hasdecreased substantially with the establishment ofborder haats. Most of the items that used to travelinto each other�s territory are now traded throughborder haat. BSF personnel confirm that with theerection of the fence along the border, problemsof dacoits and theft have also come downperceptibly. Smuggling of forbidden items likedrugs and opium has also come down by about60-70 per cent. To combat this problem inparticular, BSF personnel contend that bordercheck-posts in the vulnerable places ought to bemanned by local police personnel equipped withmetal detectors and sniffer dogs. The places,through which informal trade continues to persistinclude Sonamura, Radhanagar, Kathulia,Harbatoli and Chitabari in Tripura but whatneeds to be borne in mind is that smuggling hasreduced noticeably in respect of all essentialcommodities.

The institutionalisation of trade through formalchannels like border haats alongside thediminution of informal channels also brings withit the assurance that trade of unwelcomecommodities like drugs and explosives will besubstantially diminished if not be eradicatedaltogether.

The institutionalisationof trade throughborder haats alongsidethe diminution ofinformal channels alsobrings with it theassurance that trade ofunwelcomecommodities like willbe substantiallydiminished if not beeradicated altogether


Chapter 5 Insights on Gender Aspects

The border haats, located on thefringes of the Indo-Bangladeshborder, have been contributingsignificantly to the livelihood ofthe people, inhabiting the borderareas of Tripura-Chittagong andMeghalaya-Rangpur/Sylhet. Inthis particular section, the studyattempts to indicate the genderspecific participation rates in theborder haats. The male Vendorsinterviewed during the surveywere drawn on the basis ofrandom sampling, but given thepaucity of female participants(especially as Vendors) in theborder haats, all availablefemale Vendors (seven from Indiaand one from Bangladesh) wereinterviewed. The fact of malepredominance in border haatactivity was evident from thebeginning and across all borderhaats, except Balat (Meghalaya,India)

Key Findings� Male predominance is evident

in all the select categories ofstakeholders

� Greater encouragement andawareness generation amongwomen will contribute togreater women participationin border haat trade

� Several women villagers havespecifically highlighted theinadequacy of financialcapital as a major constrainton their participation inborder haat trade

� border haats are contributingto income generation andelevation of living standardsof women vendors

� There is growing enthusiasmamong tribal women aboutparticipation in border haattrade because many of themare already working for theirlivelihoods

� There should be morefacilitation and promotion offemale vendors throughseveral mechanisms likevendorship quotas, separatequeues for women and otherinfrastructural facilities

� border haats can be treatedas a platform to enhancewomen�s capabilities andcontribute to womenempowerment

� Women on the Bangladeshside seem less enthusiasticabout active participation inborder haat trade

Insights on GenderAspectsOf the 40 Vendors interviewed inIndia, the percentage of maleVendors across Haats is 83 percent (33/40 respondents). Therewere only seven women (onefrom Kalaichar and six fromBalat, Meghalaya) among the100 currently operating Vendorsin India. Tripura border haats donot record even a single womanparticipant as Vendor from theinitial days of the Haat. Of the

The border haats,located on thefringes of the Indo-Bangladesh border,have beencontributingsignificantly to thelivelihood of thepeople, inhabitingthe border areas ofTripura-Chittagongand Meghalaya-Rangpur/Sylhet


60 vendees interviewed, 18 were female, i.e. 30per cent of the total vendee sample in haats acrossIndia. In fact, a perceptible extent of femaleparticipation is found in the Meghalaya haats, whoare mostly �working� as Vendees. Interestingly, inthe Meghalaya haats, women Vendees were foundto purchase at the haat not for domesticconsumption, but rather for purchasing to sellthereafter (mainly Plastic and Melamine items) thusfunctioning as �working women� rather than�consumers�. In contrast, women vendees in Tripurahaats are oriented towards purchase for domesticconsumption and not towards sale of thosepurchased items elsewhere.

The two female officials, Panchayat Pradhan ofKamalasagar Block (Tripura) and Customs Officerof Balat (Meghalaya) recommended that greaterencouragement and awareness generation amongwomen will ensure more women participation inborder haat trade. From the field perception, ittranspires that female members of Bengali Hindufamilies are more engaged in household activitiesand are not oriented towards trade related activitiesat border haats. This is particularly true for theTripura haats. Talking to some of them, such socio-cultural constraints on Bengali women becomeclear. A middle aged home-maker, Rachana, fromSrinagar observed: �If we women indulge in borderhaat or other such activities, who will take care ofall our domestic chores?� Negative thoughts andresponses are also captured while interviewing the

stakeholders at Tripura haats. They largelythought that the haat is a tedious engagementand a difficult option for women (most of theresponses came from male members).

As Subhasis, a local Bengali vendor of Srinagaropined, �Trade related activities are much toolaborious for our womenfolk.� In Meghalaya, thesituation is somewhat different as most of thewomen (mainly tribals) work hard for theirlivelihood. Thus, the nature of femaleparticipation at the border haats seems to varywith the locality or region. There are certainwomen SHGs on the Indian side (mostly inMeghalaya), but most of them are into livestockfarming, and livestock is strictly forbidden for saleat the border haats.

For the Meghalaya women, another interestingfield perception is that, although a lot of womenwant to involve themselves in various tradingactivities at border haats, there remains theproblem of shortage of capital, which needless toassert is an essential pre-requisite for starting upa business/trade. Many (about 50-60 in each ofthe FGDs) of the women, in the villages ofLithanshaw and Dangar have specificallyhighlighted the inadequacy of financial capital asa major constraint on their participation inborder haat trade. Some vendees at Kalaichar,like Anthadi, Dolina and Sadhana expressed theview that if they were given Vendor cards, they

Chart 5.1: Indian respondents (by type and gender)

From the fieldperception, ittranspires that femalemembers of BengaliHindu families are moreengaged in householdactivities and are notoriented towards traderelated activities atborder haats. This isparticularly true for theTripura haats


would even try to secure loansfor creating a substantial capitalbase that would enable them toparticipate in border haat trademeaningfully.

The categorisation of variousstakeholders in terms of genderalongside types of activity inborder haat trade, helps us tonote that although womenparticipate as vendees, they arenot seen to function as officials ortransporters. Among the womenstakeholders interviewed, sevenare operating as Vendors (allfrom Meghalaya) and seven aslabourers (six from Meghalayaand one from Kamalasagar,Tripura). Most of the womenlabourers are from MeghalayaHaats. By contrast, theparticipation of male members asVendors is significantly high. Allthe transporters and most of thelabourers interviewed in thesurvey are males although thenumber of these stakeholders ismuch less in comparison to thevendees/visitors across theHaats, in terms of absolutefigures.

As far as the vendees on theIndian side are concerned, 30per cent of the interviewedrespondents are female. Balat(Meghalaya) records themaximum number of womenparticipants across haats in India,followed by Kamalasagar,Tripura, which being closer to thestate capital attracts urbanvendees and visitors as well. Interms of participation, as vendorsand vendees, there is a clearmale domination in the Tripurahaats, which is explained by thefact that women in Tripura,remain engaged in householdactivities. But women in

Meghalaya haats are seen to be active in border haat trade. Theyenter the haat as labourers or goods-carriers but often participate asvendees or even vendors, buying specific Bangladeshi products,which they are authorised to, given the upper limit of US$100, forsale elsewhere with a profit margin (As per the 2017 MoU, thepurchasing limit has now been increased to US$200). This pro-activecategory includes mostly women, who are often found to be the mainworking member, if not the sole earner, of their families. Indeed,border haats have contributed to the livelihood of these vendees.

For instance, Nancy of Dangar bazar has been participating as a�vendee� for more than two years now. She explains, �Previouslythere were limited work options in our locality. Things have actuallystarted to change after the inclusion of �Bangla haat� (the local termfor border haat at Balat) in 2011, especially for tribal women like us.Vendee cards enabled us to buy seasonal fruits at a cheaper rate,along with other plastic and melamine products at a wholesaler rate.In fact, more Vendee cards should be issued for the betterment of thelocal dwellers.� Some of them like Mina Nongbeth even mourned,�No proper currency exchange facilities are available and this leadsto monetary losses for the Indian vendees.�

As far as the Bangladesh side is concerned, 98 per cent of the totalnumber of Vendors is male. Chart 5.2 shows the different categoriesof stakeholders in border haat trade on the Bangladesh side. Onlyone female vendor participant was available and details about herwill be outlined subsequently. Among the vendees interviewed, 78per cent were male. Thus, comparing the absolute figures of theIndian and Bangladesh datasets, the participation of male vendorsand vendees across border haats is much higher on the Bangladeshiside.

Chart 5.2: Bangladeshi respondents (by type and Gender)


Among vendees on the Bangladesh side, much likethe case of India, there is pronounced maledomination. Women vendees are usuallyaccompanied by their fathers or husbands.However, it is interesting to note that Bangladeshiwomen vendees are keen to buy Indian products,particularly cosmetics, toiletries, garments,condiments and other luxury items. Such womenvendees have been found to carry from the haat alarger volume of goods in comparison to malevendees. Buying Indian goods at the haat andselling them elsewhere is seen in the case ofKurigram haat (adjoining Kalaichar, Meghalaya).Here, some of the Bangladeshi people buy Indianspices and a superior quality of betel nut inwholesale amounts with less price per unit in orderto sell them outside the haat in retail and therebyensure a good profit margin. Women seemreluctant to actively participate as Vendors inBangladesh. This is borne out by the responses ofNasma of Chhagalnaiya and Kulsum of Baliamari:�More vendee cards should be provided towomen.� Any demand for Vendor card appearsconspicuous by its absence.

Surprisingly, there are no female Labourers,transporters and officials participating in the borderhaats on the Bangladesh side. The perception of thesurvey team as well as the views expressed by therespondents confirm that generally Bengali Muslimsare more orthodox in their social and culturalbeliefs, which restrict their female members fromworking outside the confines of their homes. Thus,working in border haat as vendors and labourers isa much more complicated issue on the Bangladeshside. The locality of Chhagalnaiya and Kasba(Tripura side collaterals) experience more femalevendees due to the variety and better quality ofwomen centric goods from the Indian side. This isreinforced by the fact that they are relativelyaffluent and have the capacity to purchase evenbeyond US$100 (BDT8,400), which is the ceilingobserved across all haats (As per the 2017 MoU,the purchasing limit has now been increased toUS$200). Compared to vendees on the Indian side,these vendees on the Bangladesh side carry a lotmore in quantity from the haat, although mostly forself-consumption and distribution amongst relatives,not for outside sale.

Status of Gender Specific Profits atthe Border HaatThe study dwells upon vendors on the India andthe Bangladesh side separately. It also needs tobe borne in mind that only eight vendors (sevenfrom India and one from Bangladesh) could beinterviewed, and of these, six were from Balat.So many of the observations will be specific toBalat and generalisations would not be prudent.As per the present regulations, 25 vendors areofficially allowed from each side of the borderfor trade on the basis of a regular procedurethat will be discussed later.

From the primary analysis of the interviewedindividual vendors across haats, it is evident thatthe average total income (which includes theirborder haat Profit figures: Sales minus Cost andnon-haat income figures from primary sources ofoccupation) of the women Vendors is INR22,043(US$315) per month; 74 per cent of the incomebeing the share of border haat profits. Theaverage border haat income for male Vendors isINR14,410 (US$206) per month, slightly less incomparison to that of their female counterparts �possibly because there are simply many moremale vendors and hence a wider variation inincome. The share of border haat profit from thetotal income for male Vendors is 72 per centacross Haats.

Some of the Bangladeshipeople buy Indian spicesand betel nut in wholesaleamounts with less priceper unit in order to sellthem outside the haat inretail to ensure a goodprofit margin


For further clarity, it is to be noted that outliers havea significant impact on the average figures offemale Vendors in India, as most of the respondentsare from the same haat (Balat, Meghalaya). Thestudy specifically considers Balat Vendors forfurther investigation. Table 5.1 shows the genderspecific absolute monthly figures of averageincome/profit from border haat and non-haatlivelihoods respectively, before calculating the totalaverage monthly income figures for the BalatVendors.

Out of the seven enlisted women vendors in India,six are specifically from Balat, Meghalaya workingas local vendors in their respective villages (namelyBalat and Dangar village). The non-haat income forall of them averages at INR 6,900 (US$99) permonth and constitutes roughly 28.5 per cent shareof their total income. Balat males acquire anaverage monthly non-haat income of INR 9,000(US$129) and most of them travel to Shillong, thestate capital, where they purchase goods for localbusiness. In fact, some of the male Vendors evenhave businesses set up outside the village, whichseem absent in the case of females, who have alsoto shoulder household work.

Inconsistent local demands for goods andcommodities within the village account for thelower per capita (non-haat) income and standardof living, especially for these women Vendors.There is little variation in the quantum of borderhaat profit for the Balat Vendors, althoughaverage cost of purchase remains higher for themale Vendors by an approximate figure ofINR70,000 (US$1,000) per month.

Our field perception alongside the primary datasuggests that females with Pakka shops(irrespective of the goods they sell) in the localitytend to have a higher non-haat income thanothers. The only exception has been theKalaichar lady Vendor (Linda Marak), whodespite being an agro-cultivator, profits the mostfrom border haat (INR25,000/US$357 permonth) and non-haat (INR8,000/US$114 permonth) proceedings � and hence skews the dataand generalisations one can make about womenvendors.

For the male vendors, data could be gatheredacross the haats and they were by and largesimilar. The average monthly total income (haat +

Table 5.1: Gender specific average income/profit from border haat and Non-Haat and therespective shares as a percentage of total income (Balat, Meghalaya, India)

Average income/profit parameters Male Share as a percentage Female Share as a percentage(INR per month)/Gender (Balat Vendors) of total income (in %) of total income (in %)

Average profit from BH 15,000 62.5 14,467 71.5

Average income from Non-haat 9,000 37.5 6,900 28.5

Average total income (Haat income 24,000 100 20,217 100+ Non-haat income)Source: Calculated and compiled from the primary survey

Table 5.2: Classification of Income bands according to Gender across India haats

Higher Income group Middle Income group Lower Income group(>INR 25,000 p.m.) (INR 10,000 -25,000 p.m.) (<INR 10,000 p.m.)

India Vendors (Male) 5 24 4

India Vendors (Female) 2 5 0

Source: Calculated from the primary field survey


non-haat) for the male respondents across the haatsis INR 19,674. The fact is that there are too manymale vendors, with incomes, therefore, moreskewed, which might be what drives their averageincome down. It, therefore, seems more appropriateto divide profits/incomes into bands and indicatethe number of male/female Vendors falling in eachone of these bands. The study highlights threeincome bands on the basis of their total monthlyincomes (ceteris paribus): higher income group(with total income above INR25,000), middleincome group (INR10,000-25,000) and lowerincome group (less than INR10,000).

Most female Vendors (five/seven respondents) arein the middle group. The data gathered from thefemale vendors is also corroborated by our fieldperceptions. But in the case of male vendors,although on the basis of their disclosed incomes, 24belong to the middle income group, the field surveysuspects that 11 of those 24 are probably under-reporting their total monthly income (majorly fromSrinagar and Balat areas) to the field investigators.The point is that border haats are contributing toincome generation and elevation of living standardsof vendors.

In Tripura, the average monthly border haat incomeis INR16,502 (US$236), much higher that theMeghalaya Haat areas (calculated from the haat-specific data). This is primarily because of feweradministrative interventions and wholesalemarketing of specific goods (mainly cosmetics andspices in Srinagar area). In Tripura, particularlySrinagar, the administrative intervention, whichrestricts the types of goods allowed to be sold isdefinitely less; also the vendors physically manageto supply wholesale because transport costs are lowon account of a more level terrain unlikeMeghalaya, which is more hilly. Besides, cheaperlabour enables greater quantities of wholesalegoods to be carried to the haat. The non-haatincome for men is slightly higher in the Meghalayaregion, with a monthly average of INR5,438(US$78). Most of the respondents are involved inlocal trade in both the regions, apart from a fewagriculture and non-agriculture (Mason andseasonal employee) based jobs.

For the Bangladesh side, only one female memberis identified out of the 40 currently assignedVendors concerning all the border haats. Thus, a

generalised analysis of gender specific earningsis not possible. The average monthly income(which consists of non-haat income and borderhaat profits per month) for the male Vendors isINR 17,848 (BDT21,848 BDT/US$255).Accordingly, the border haat profit of the maleVendors is INR5,670 (US$81) on an average,which is less than one-third of their totalaverage monthly income. This is in sharpcontrast to what we see on the Indian side,where monthly vendor income derivessubstantially from haat profits.

As far as participation of women as vendors isconcerned, in Bangladesh we encounter a singlefemale Vendor from Baliamari, Kurigram with atotal approximate income of BDT16,039(US$191) and border haat profit of BDT8,454(US$101) per month, which seems to besignificantly higher than the male average. Afterthe death of her husband, this lady procured theVendor card from the Zilla Panchayat memberswith the help of local administrative officials. It isalso to be considered, she does not belong tothe marginalised category and endowed withfamily assets, she is able to invest in border haattrade. This naturally increases the profit margin.For the Bangladeshis, non-haat income is 2/3rd

of their total monthly income. So for theBangladeshis, border haat income is asecondary supplement to their primary non-haatincome. This is because of less demand on thepart of Indian vendees for Bangladeshi goods,which are usually of inferior quality and lessvariety.

Influence of EducationalQualifications on Income at theBorder HaatA significant component in assessing incomeranges has always been the level of educationalqualification. Differences in earnings may beattributed to the likelihood of enhanced skillsand/or higher productivity. But the general ideaof such linkages often gets challenged as hashappened in the border haats case. Table 5.3seeks to portray a gender specific frequencydistribution analysis of different education levelsand their corresponding border haat profitmargins per month.


It is evident from the Table that there is nocorrelation between education and haat profits.This could be because all that is required is a�head for business� or because most respondentssit in the middle of the distribution anyway.

Status of Women Participation at theBorder HaatOur primary survey reveals that the overallparticipation of women as various stakeholders inthe border haats is largely location specific. Thestudy captures general trends on the basis ofobservation across haats in Meghalaya andTripura; it is also possible that this will revealcharacteristics peculiar to a border haat or aregion, alongside or instead of general trends.

India sideIt does not seem that there are any threats tosecurity for women in any of the border haats onthe India side.

Coming to their responses on more womenengagement in such trade, the Kalaichar(Meghalaya) woman, Linda Marak explains thegrowing enthusiasm among Tribal women inengaging themselves in the border trade as mostof them are working for their livelihoods either onthe fields as cultivators or as a local vendor andwant their products to be sold on the Bangladeshiside, where there is a higher demand for theirgoods. In Kalaichar, when the haat initially started

it was difficult to get people to participate,particularly the Tribal people. Some Bengalibusinessmen (mostly men) were then included tokeep the haat running. However, with time,people started seeing the gains from the sameand some of them evinced interest to do businessthere. For Balat, the women participation is by farthe highest amongst all the four haats, andwomen participation has been �good� accordingto the female Vendors.

The responses of male Vendors on the issuevaried with regions. Most of the MeghalayaVendors considered the possibility of greaterwomen participation through several channels.Given the fact, that women are quite free toparticipate in these regions of India, womenshould be coming up in more numbers asVendors and play a leading role in such borderhaat trade. There has been a lot ofencouragement from the local administrativebodies in this regard in Balat. The lady customsofficial at Balat noted that �there should be morefacilitation and promotion of female vendorsinstead of encouraging vendees at border haattrade�.

In fact, some of the Kalaichar vendorsrecommended assignment of vendor quotas forwomen (on the basis of formal and regularprocedures) to guarantee their participation.Presently in these locations, it has been observedthat women are increasingly applying for vendee

Table 5.3: Gender � wise education level and border haat Profit margins (India side)

Education Frequency Average BH Profit Frequency Average BH ProfitDistribution in INR per month Distribution in INR per month

(Female) (Female) (Male) (Male)

1 (Grad & above) - - 2 11550

2 (Diploma & cert.) - - 1 20000

3 (HS) 1 14000 3 14300

4 (Secondary) 2 18500 9 18549

5 (Middle School) 3 14933 10 14500

6 (Primary) - - 3 11600

7 (Illiterate) 1 16000 5 8560

Source: Compiled from the Primary Data set


cards (much easier for them to get, as compared tothe vendor card), which serves as a ticket for entry tothe border haat. Using the card, most of the Balatpeople (a lot of them are women) are seen to sharestalls with the authorised vendors to sell theirproducts, often seasonal fruits and vegetables and insmall quantities. Individuals have been found tomake arrangements with authorised vendors, andenter the haat as labourers, and once inside, sell thegoods which they have been allowed to carry insidein modest quantities. In fact, some of them (mostlywomen) carry seasonal fruits and vegetables to sellnear the gates (inside the haat space).

Entering the haats premises remain arguably easy,although at times they are restrained by the customsand on-duty border guards from carrying too manygoods. As the number of vendor cards issued isrestricted to 25, some who wish to sell, enter thehaat as labourers, carrying a certain number ofgoods, to which the authorities turn a blind eye. Butthat vigilance naturally varies. In Kalaichar, vendeecards are mainly being used by the local women forpurchasing Bangladeshi products (melamine andplastic ware) for outside sales via wholesalers. Someof them even go to the nearby market on �localhaat� days for selling those items with nominal profitmargins. On local haat days, such vendees, mostlywomen, buy goods at the haat, and instead ofpassing them onto wholesalers, themselves proceedto Tura (the headquarter of the SW Garo hills), sellthem at retail prices that give a larger margin ofprofit.

Silne and Bideng are amongst the flock of vendeesin Kalaichar, who were personally interviewed togauge the perceptions of women vendees. Theyexplained: �Getting a vendor card and �maintaining�it for years (In Kalaichar, vendor cards need to berenewed every three years) is difficult, given that wedo not have an assured monthly income. We arehappy to be participating in this manner # buying acertain amount of specific Bangladeshi goods to sellthem outside via wholesalers or by ourselves # andthis does not require a prior commitment or hugecapital investment.�

In contrast, the women participation in the TripuraHaats is much less and restricted. The major reasonhas been socio-cultural in nature. Although there areno hazards to the safety of women in engagingthemselves in border haats, most of the Vendors

responded against their full-time involvement,for most women (hailing from the dominantBengali Hindu families) remain engaged inhousehold chores and livestock farming. Theirinvolvement as vendees (buying for self-consumption largely) is endorsed byprevailing norms of their society. In someparticular instances, although there arewomen working as helpers for their Vendorhusbands, perceptions about women asentrepreneurs seem quite restricted. Theresponses in the Tripura region hover aroundunwillingness of women as a general deterrentto active women participation, as Vendors.These have been the responses of the maleVendors.

Some of them even uttered: �Our wives do notwant to leave the children and go out to workin the market place.� Thus it seems thatparticipation of women as Vendors in theborder haats is impeded by their unwillingnessfostered by reasons of engagement in othervocations and also by the prevailing ethos of apatriarchal society that encourages women toconfine themselves to domestic chores.

Bangladesh sideThere is only one woman working as Vendoron the Bangladesh side, for all the four Haats.As per the field investigation, she lives inBaperipara, Balimari, Kurigram (adjacent toBalat, Meghalaya border in India). Shepossesses a modest tailoring shop with a tin-roof and she managed to procure a vendorcard to sell garments and other cottonproducts in the border haat only after herhusband�s death. Speaking to women vendeesfrom Bangladesh, it seems that, Bangladeshiwomen lack enough encouragement forgreater participation as Vendors in the bordertrade. There has been no initiative on the partof either Government or any localadministrative body towards promotion oftrade benefits in favour of women.

However, Chittagong haat officials areoptimistic about involving womenstakeholders. They suggest separate Vendorquotas in favour of women, although suchsuggestions are still to be implemented.Women urinals and haat infrastructure in


terms of shades and proper rest rooms areamongst the other primary concerns highlightedby the Baliamari and Kurigram haat officials. Adifferent perspective is seen in the responses ofJafar, the presiding customs officer of Sunamganj:�True, we do not have proper urinals inside thehaats, but why should the Government take theseresponsibilities? Is the Government getting revenueout of border haat trade or making any profit fromthis kind of informal trading?� Such sentiments areexpressed by customs officials at the Indian haatsas well.

In the border haats of Sunamganj and Kurigram(the haats adjacent to Meghalaya) overall womenparticipation remains negligible. Suggestions foraugmenting women participation have beenthrown up mostly by the male stakeholders in thesehaats:

a. A woman representative in the Jointborder haat Management Committee(JBHMC) should be included to addressmore women specific issues at theadministration level.

b. Preferential treatment in the form of aseparate quota could help to promote thenumber of women Vendors.

c. Capacity building programmes, accordingto several vendors and haat officials,should be adopted at block levels tofacilitate women participation; they shouldalso be encouraged to join as labourersand helpers.

d. Women�s participation rate will increasewith proper maintenance of latrines andurinals with water and electricity facility.

Sunamganj vendees (adjacent to Balat) remainedapprehensive about women participation atborder haat trade. They pointed out theinadequacy of promotional measures on the partof the Government in this regard, although noneclarified what such measures could specificallyinclude. The vendees of Kurigram felt that morewomen need to be encouraged to come to thehaat as vendees. They could also join in aslabourers, assisting their male heads, in order togain the experience necessary for participating asvendors in future.

Apart from these responses, the Chhagalnaiyaand Kasba side of the borders are much moreconservative in their approach. Most of themwant women to be participating as Vendees. Thegeneral opinion seems to be that, women cannothandle this type of border trade as they are notaccustomed enough to running a business in theborder haats. The rising incidents of petty theftcases (although more of a problem for the Indiaside) might also be a deterrent to womenparticipation (according to the field perception).Thus, there seems to be limited scope for womenparticipation (considering the responses in someof the haat locations) given the context of robustsocio-cultural constraints, in Bangladesh.However, this should not evoke pessimism forthere remain possibilities for accelerating womeninvolvement (especially in the Rangpur andSylhet divisions).

Status of Women ParticipationWhen Issuing Vendor CardsVendor cards are generally issued by therespective border haat committees in each of thehaat locations. This committee comprises of theDistrict Magistrate, Additional District Magistrate,local Panchayat leaders (Panchayat Pradhan,Up-Pradhan, Block members etc.), Customsofficials, Border Security Force (in India)/ BorderGuard Bangladesh (in Bangladesh) and the localpolice. On the Meghalaya (India) side, there isactive involvement of Nokhmas (head of theGaro (tribes) village community) and Gaoburas(village head-men) who co-operate with thePanchayat members in implementing variousdevelopmental programmes in the locality as wellas in taking administrative decisions pertainingto border haat activities. Interviewing the officialsfrom both sides, it is gathered that Vendor cardsare issued on the basis of a regularised process.

Firstly, the applications are short-listed on thebasis of an overall assessment of how theindividual will perform, if given an opportunity totrade in the haats. The pattern and kind of workhe does, the seriousness and sincerity involved indoing that work and other qualitative aspects areconsidered while evaluating a case. Once, the


screening is done, the selected applicants areasked for a personal interview, wherein theiroverarching objectives in trading at border haatsand other long-term goals are tested, and then thelist of candidates is finalised. Vendor cards arenon- transferrable and have a specific period ofvalidity, which is decided by the administrativeofficials.

Despite these broad regulations in respect ofissuance of vendor cards across haats in India,there are region specific stories also. In Kalaichar,vendor cards need to be renewed every threeyears; this period is one year for other haats. Thereare instances in Srinagar, of a supplementary cardbeing issued alongside a vendor card to suitableapplicants of the same family; the supplementarycard holder can assist the regular vendor at borderhaat trade, or work as a substitute and carry onthe business, if the regular vendor is unable toattend haat on a particular day.

India sideThe field perception, suggests that several vitaldecisions are taken by the local bodies involved inthe border haat committees. In most of the places,it is seen that the higher officials (DistrictMagistrate, Additional District Magistrate andothers) are not directly involved in ground levelmonitoring and this task devolves mostly on thelocal Panchayats and Zilla Councils. As such, thesurvey team has tried to capture the views not onlyof the higher level Government officials, but also ofPanchayat Pradhans and Gram Rojgar Sheboks(villagers employed by the local Panchayat to serveat the haats on payment).

As far as the responses of interviewed officials areconcerned, there remains a fair bit of enthusiasmin terms of involving women stakeholders(especially as Vendors/Vendees) for the borderhaats. Many women (mostly tribals of Meghalaya)are beginning to show interest in working asVendors. When asked about ways to encouragewomen to participate in border haat activities,respondents across border haats have expressed adesire for awareness generation and capacitybuilding programmes for women in variouslocations, as a sure means to boost femaleparticipation in border haat trade. In fact, the statelevel official (ADM, Sipahijela) of Kamalasagar

(Tripura) pledged implementation of suchprogrammes in the near future, with thecollaboration of Joint border haat ManagementCommittee (JBHMC).

For the Meghalaya haats, encouragement forwomen participation in border haat trade isalready visible. A barrier, particularly for womenin this region (and some parts of Kamalasagar,Tripura) is their engagement in cultivation andfarming of livestock, which restricts them fromparticipation in border trade � because of nothaving time. For Kalaichar (Meghalaya), womenparticipate mostly as Vendees, but of late theyseem to be eager to procure Vendor cards. This isbecause Vendors are seen to reap better profits,which are also reflected in their improvedstandards of living, including that of the onlyoperating female Vendor, Linda Marak, whoseems to be meeting almost 50 per cent of hertotal expenditure from border haat trade. Balataccounts for the maximum number of femaleVendors from the India side and the customsofficial expressed the need for greater facilitationand encouragement to women participants. Infact, the BSF has already initiated the constructionof a female quarter in the Balat Border Out-Post(BOP) for recruiting more female office guards inthe border haats.

As far as the technical part is concerned, issuingVendor cards is largely location specific. For boththe Tripura haats and Balat (Meghalaya) haat,Vendor cards are renewed on a yearly basis.Only for the Kalaichar haat, cards remain validfor three years. This is completely a localadministrative decision for the Meghalaya borderhaats and there remains no official involvementbehind such decisions.

As per field study, it does not seem that there hasbeen any major discrimination in respect of thedistribution of Vendor cards among maleparticipants. On the whole, the scenario ofparticipation in terms of gender changes withregion. For the Tripura haats, women themselvesremain passive and do not consider themselvesas potential Border haat stakeholders. However,the present scenario suggests the possibility ofchange for the better. For the Meghalaya ones,however, women participation has been much


better and the women seem to be doing well asVendees (selling goods outside after buying it fromthe border haats). But, most of the tribal womencannot be given Vendor cards owing to the smallscale of their business, irregular attendance andseasonal nature of their engagement (since they aremostly agricultural producers and are interested inselling agricultural produce depending on aparticular season, winter). Issuing a permanentvendor card restricts usage to those who are in aposition to run a business all year round. Smallscale farmers are thus not benefitting. Specialpermits, or something similar, should therefore, beissued just for seasonal produce.

Bangladesh sideOn the Bangladesh side, officials of Baliamari andSunamganj (haats adjacent to Meghalaya) mainlycited several infrastructural inadequacies, whenasked about women participation. Several measureshave been suggested for augmenting womenparticipation: building proper resting rooms andurinals with appropriate water and electricityfacilities; improving and increasing transportfacilities; improving the existing communicationsystem and recruitment of more women BorderGuard Bangladesh (BGB) for strengthening security.

But, owing to such technical impediments, the fieldsurvey captured a general pessimism about womenparticipation in the border haat activities. There hasbeen a clear male dominance in the approach ofdistributing Vendor cards in this region, which trendis confirmed by the responses of Mazeda Begum,the only woman Vendor (from Baliamari), who isdesirous of greater women participation andengagement in these locations. As she claims,�Women in Bangladesh are no less competent thanmen, and it is time that they get the highestencouragement and support not only from theGovernment but also from their families to getinvolved in the business.�

The other region of Chhagalnaiya and Kasba seemsto be more conservative, at least from the Vendors�perceptions. However, officials appear pro-active intheir approach as most of them expressed thegrowing need of more women turn-out (asVendors). In fact, the Upa Pradhan (Deputy Head,official in the local administration) at Chhagalnaiya,who is also the Chairman of the border haat

Management Committee and the Upa ZillaNirbahi Officer (Deputy Excutive Officer in thelocal administration heirarchy) of Kasba, amongothers, narrated the need for a separate quotasystem in favour of women vendors. Thequestion remains whether women are reallyready for the challenge.

Status of Spending Pattern ofProfits from the Border HaatAlready endorsing the fact, that womenparticipation has the potential to boost borderhaat trade in the economic and social realms,the study now delves into an examination of therole of adult female engagement in theaugmentation of the household income.Considering the interviewed Vendor families (80individuals from both India and Bangladesh),the contribution of female adults is in focus inthe following discussion. It has been observed inthe course of the survey that even when womendo not participate directly in border haatactivity, hard-working as they are (as evidencedin Meghalaya), they not only remain engaged inhousehold chores, but also take time to performvarious unremunerated activities (like helping inthe production of agricultural goods or, holdingshop for their husbands in their localities) fortheir husbands and other family members whoare thereby facilitated in performing activitiesthat boost their participation in trade at borderhaats.

Among all the households surveyed, nine Indianfamilies (mostly from Balat, Meghalaya) andfour Bangladeshi families (from Sunamganj,Sylhet border areas) had adult women, workingfor their livelihood. On the basis of dataavailable, we are able to arrive at somecalculations. The monthly average haat incomefor the Indian Vendor families with womenengagement is INR15,993 (US$228) and that ofBangladeshi Vendor families is BDT8,606(US$102). The amount in Bangladesh is muchless as border haat is basically treated as asecondary and supplementary source of income,as discussed earlier. Given the list of productspermitted for trade at border haats, it has beenseen that most of the Bangladeshi goods are


comparatively unattractive to the Indian Vendees except for someinexpensively-priced vegetables, food items (chips, biscuits etc.) and afew other locally produced commodities.

Vendor households in India with working women, tend to show ahigher monthly income, as compared with vendor households withoutworking women, but the robustness and causes are unknown, sincethe study did not focus on this point.

Status of Spending Priorities of Female and MaleVendorsIndian Vendors prioritised food as their major category ofexpenditure. For the male Vendors, 37 per cent of the total monthlyincome is spent on food. A similar trend is observed for the femaleVendors, who spent 36 per cent of their total monthly income on thesame. The expenditure on household essentials is ranked second forboth sets of Vendors with the female vendors taking an edge over theirmale counterparts by 6 per cent. Chart 5.3 highlights the spendingpatterns in more details:

Chart 5.3: Spending pattern on total income (India side Vendors)

These two components areregarded as major expenditurequotients for all the householdsand our field survey affirms thatthese proportions have no directlinkages with border haats andtheir associated incomes. As faras child education is concerned,female vendors seem to havespent more than the male ones,with 19 per cent of their totalmonthly income. In fact, theyounger son of Linda, the onlyKalaichar lady vendor is atpresent, pursuing higher degreesin Guwahati (Assam). Of course,she�s richer to begin with, butone can reasonably infer, thatshe has been facilitated in thisregard by the additional incomeaccruing from border haattrade, which increase isestimated at 76 per cent of hertotal monthly income share.Balat vendors (females inparticular) also seem to besending their children to nearbyschools. Even male vendors sendtheir children to school, but theirmonthly expenses on children�seducation are comparatively lessthan that of female vendors(Male vendors: 15 per centversus Female vendors: 22 percent). The field survey suggeststhat the additional incomegeneration from the border haathas made things much easier forthem in terms of coping with therecurring expenses of education.

For the Bangladesh side, onlyone female vendor wasavailable. Vendors are mostlymale and incur an averageexpenditure of 48 per cent oftheir total monthly income onfood.


Chart 5.4: Spending Pattern on Total Income(Bangladesh side Male vendors)

Chart 5.5: Decision makers on haat income expenditure (India and Bangladesh side Vendors)

The only female Vendor from Baliamari spendsaround 60 per cent on food, which is higher incomparison, given that her family consists of fivemembers, which is less than the usual size ofmost vendor families in Bangladesh. However,no generalisation can be drawn from this.

Status of Decision MakingRegarding Income from the BorderHaatFor the India side, 61 per cent of the maleVendors (20/33 interviewed) take decisionsindependently on how to spend the haat income.Out of those categorised as Vendors, 14 areTripura based and mostly belong to HinduBengali families, and their role in householddecision making is limited and restricted. Threemale Vendors (all from Meghalaya) respondedthat their wives were the sole decision makers

about spending the haat income. On the other hand, for theMeghalaya haats, more female Vendors decide on the expenditureheads on haat income with their average border haat profitaveraging INR17,450 per month. Interestingly in Meghalaya, womenvendors report greater autonomy in decision making regarding theirhaat income. Females with less average income from border haathaats (INR14,000 per month) are more inclined towards theresponse �dictated by circumstances�. The factual details are shownin Chart 5.5.

For the Indian side, our perception is strong that, female participantsare more active not only as Vendors but as other stakeholders as wellwith the higher profit earners opting independent decision makingand the comparatively less earners spending on the basis of feltneeds.


For the Bangladesh side, the pattern is ratherlocation specific. On the Kasba side (adjoiningKamalasagar, Tripura), all Vendors seem to spendon the basis of necessity. This is particularlybecause Kasba has a fair balance between maleand female participation. As far as the aggregatedata set is concerned, more than 50 per centVendors spends their haat income on the basis ofnecessity, except the Sunamganj (adjoiningKalaichar, Meghalaya) region, where the Vendors(all males) spend their additional income in anindependent and autonomous manner.

The study will now seek to probe the significanceof such decision-making on existing expenditureheads and look for particular patterns (if any) to

substantiate the analysis. The male Vendors ofIndia, who independently decide on their haatspending, their haat income are seen to allocate39 per cent of their average total monthlyexpenditure (of total income) on food and 27 percent on house expenditure. In contrast, lessproportion of haat incomes are being spent onthese expenditure heads by Vendors who spend onthe basis of circumstantial needs. For the housingpurposes, no Vendor (either male or female) hasspent anything as yet for everybody has got his orher dwelling Kaccha or Pakka). The majordifferences in average spending on the part of themale Vendors lie in the categories of health andchildren�s education. Male vendors who arecompelled to spend their border haat income by

Table 5.4: Spending patterns and its impact on average expenditure heads

Expenditure heads Male Vendorson total income

Average Total Expenditure Average Total ExpenditurePercentage (India Male) Percentage (Bangladesh Female)

Dictated by self Dictated by necessity Dictated by self Dictated by necessity

Food 39 34 49 47

Housing (Rent and Construction) 0 0 0 0

Household expenditure 27 18 22 19

Health 5 12 14 10

Children�s Education 10 18 8 13

Savings 11 5 7 11

Others 1 0 0 0Source: Compiled from the primary dataset


need, seem to allocate more money towardschildren�s education and health, less on savingsand marginally less on food.

It is observed from Table 5.7 that there has been asignificant shift of trajectory from 5 to 12 per centfor health expenditure and 10 to 18 per cent forchildren�s education for the male Vendors whospends according to circumstantial necessity(which also includes their wives� decisions in somecases). Chart 5.4 sums up the findings.

Women spend their income on three categoriesonly, and the proportions vary according to theneed. The latter suggests greater poverty, andspending is correspondingly higher on food.Those who can autonomously decide how tospend their money, may have said that becausethey have a higher income, which some are alsoable to save.

Enhancing Female Participation atthe Border HaatBorder haats can be treated as a platform toenhance participation on part of women, invarious capabilities. Although, there is limitedscope for increasing Vendor-ships in view ofpersisting regulations, specific Vendor quotas forwomen can boost women engagement. The studyhighlights certain general women-centric issues,which act as barriers to women�s participationalongside certain region-specific deterrents.

In most of the border haat locations,encouragement has not been provided to womenfor participating in border trade. As most of theborder areas are in the remote interiors wheremarginal urbanisation has occurred, women findit inconvenient to move about freely. This generaltrend observed by the field investigators does nothold true for Meghalaya, India region (Balat andKalaichar side of the haats) where women aremore pro-active in working for their livelihoods.Not only that, this particular region (only in theIndian side), seem to harbour a different workculture altogether, suggesting strongly a significanttrend towards re-defining women empowerment.

In fact, the number of vendees and labourers ismuch higher in these border haat locations,compared to the other Indian side. Localadministrative interactions further clarified thatthere is a certain degree of flexibility in issuingVendee cards and allowing more Labourers toVendors in keeping with the growing demand. Thebasic difference lies in growing aspirations of theIndian tribal women, who are more eager toengage themselves in Border haat trade unlikeBengalis (irrespective of whether Hindu or Muslim)dwelling in the border areas of Tripura. In fact, inBangladesh, one encounters such socio-culturalconstraints towards involvement and participationof women. On the Bangladesh side, one mostlyexperiences women operating as Vendees,coming with their families and buying Indianproducts in the form of branded cosmetics,toiletries and garments.

Lack of proper rest-rooms/latrine, especially forwomen has been a major concern in all the haats.There has not been any infrastructuralupgradation in terms of installing proper facilities(for pumping water) and electricity shelves formaking those usable. The condition of existingurinals across borders is unhygienic and in fact,deplorable and unfit for use. Although,stakeholders point to the lack of Governmentinitiatives in this regard, there has also been amutual blame-game amongst the participatingmembers from both the countries. Some of thehaats even charge monthly payments from theVendors and pass-charges from the visitors forhaat maintenance (Kamalasagar, Tripura), butprecious little gets done.

Despite the initiatives taken by government toencourage women�s participation in variouseconomic activities in the formal sector, informaltrade flourishes in border areas owing to low risk,mobility constraints and no taxation. Hence, thestudy perceives the need of local administrativebodies (who are an integral part of the JointBHMC) like Panchayats and several other informalcommittees (mostly lead by Vendors in most of theIndia side haats) to take such initiatives towardsboosting border haat trade.


The haat specific problems are as follows:

Tripura (India)-Chittagong (Bangladesh): Thetwo border haats experience less involvement ofwomen as stakeholders. The main reason is thesocio-cultural milieu, which is a serious restraint onwomen participation in the haat proceedings.Females mostly perform household chores with noreal inclination towards border haat trade.Although some of them participate as vendees, thenumber remains small and irregular, mostly limitedto buying household condiments (on the India side)and branded products: cosmetics and likes (on theBangladesh side). Participation of women aslabourers is limited on both sides of the border inthis region. Apart from the general issues,discussed above, respondents suggest that lack ofawareness and capacity building is the basicreasons for less participation.

Meghalaya (India)-Rangpur/Sylhet(Bangladesh): The women on the Indian side arequite active in participating as various stakeholders

in the haats. For Balat, recent developmentssuggest inclusion of six additional womenvendors (out of 25) in the revised list, publishedin April 2016. The local administration has beenencouraging interested women to trade at theborder market. Although there is a lack oftransparency in the selection of vendors inKalaichar (India), women are becoming awareof the potential benefits of border haat trade. Inboth these haats, Indian side vendees buyBangladeshi products (plastic and melamineware) and sell those in the local and distantmarkets and are thereby able to earn a muchwelcome weekly profit. Although there areceilings on the purchase of goods, this is usuallyUS$100 per haat day, administrative loopholesand oversight help these local people to makepurchases beyond the prescribed limits (As perthe 2017 MoU, the purchasing limit has nowbeen increased to US$200). The local peopleclaim to have got used to such practices for quitesome time now. On the whole, women on theBangladesh side seem less enthusiastic aboutborder haat trade.


Chapter 6 Insights on Items, Regulations andProcedures

In India, the Director Generalof Foreign Trade (DGFT)identifies a list of items, whichcan be traded at the borderhaats. The customs officialsoperating at local levelssupervise whether vendors onthe Indian side are complyingwith the DGFT specifications intheir dealings at the haat. Thispractice was initiated when theborder haats first commencedat Meghalaya (India) �Rangpur - Sylhet (Bangladesh)and continues to remain invogue to this day. Border haatson the Indian side of the borderare expected to operate basedon rules and regulationsenunciated by the DirectorGeneral of Foreign Trade(DGFT).

The Customs Department isprimarily responsible fordisseminating relevantinformation of rules andregulations, includingprovisions of amendments,across all stakeholders. Thereare problems, highlighted bystakeholders - particularlyvendors, relating to theimplementation of rules andregulations drawn up by theDGFT (India)/ FTA(Bangladesh) at the local levels.These local authorities areconstituted by Panchayatofficials working alongsidecustoms officials and personnelof the BSF (India) and BGB(Bangladesh).

Key Findings� There is asymmetry of

information among vendorsabout items officially approvedfor border haat trade

� Amendments do not reachHaat officials and vendors ontime

� Haat officials are notequipped with measuringdevices � availability of thesecould expedite inspectionprocedures at border haats

� Rules and regulations areenforced by Haat officialsuniformly and many of theseare often assumed and do notreflect the latest amendments

� Lack of uniformity is discernedboth among haat officials (oneis more interventionist than theother); and also in respect ofgoods � the bulk sale isallowed in case of one item,but not in case of another

� Women vendors suggest theneed for a separate queue forwomen and also for womensecurity personnel

� Customs officials and localpolicemen are not presentregularly and it largely falls onthe BSF/BGB personnel tomonitor Haat proceedings ona day-to-day basis

� With the exception of theKalaichar Haat, informalparallel institutions are seen inall the Haats, which cater tothe crucial role of addressingday-to-day problems

The CustomsDepartment isprimarily responsiblefor disseminatingrelevant informationof rules andregulations,including provisionsof amendments,across allstakeholders


Status of Awareness among Vendorsabout the Item List at the Border HaatThe original list of items prepared by the DGFT has beensubsequently amended a number of times. But, there isasymmetry of information among the vendors regardingthe list of items permitted for sale at the haats. The specificdetails in the amendments by DGFT takes times to reach theranks of offcials such as customs, Border Security Force(BSF, India) and Border Guard Bangladesh (BGB,Bangladesh) posted at the Haats. Furthermore, borderhaats being in remote areas the government offices areunderstaffed. When customs officials are not present, norare their representatives, it largely devolves on BSFpersonnel to take decision on �permissible� goods. Thevendors are often victims of such confusion for they do notknow if a particular good, which was allowed at aprevious haat will be permitted at another.

Customs officials andBorder Security Force(BSF, India) andBorder GuardBangladesh (BGB,Bangladesh), whohave the expressresponsibilities ofmonitoring haatproceedings, do notpossess the latestdocuments

Table 6.1: Containing list of items in each haat on both sides

List of Items soldat the border haatsSrinagar �Chaggalnaiyaborder haat

Kamalasagar �Kasba border haat

Kalaichar �Kurigram borderhaat

Balat � Sunamganjborder haat

Indian vendors

Spices, Cosmetics and Toiletries (wholesaleitems), Food Items (cooked by Bengalihouseholds), Packaged drinks, Cookware,Cotton fabrics, sarees, woollens andgarmentsPopular items: Tea, Baby food, milk powderand Horlicks

Fruits (bananas and jackfruits, and seasonalvarieties like apples and oranges),Cosmetics and toiletries, Cultivationequipment likes axes and ploughs,Vegetables and superior quality garmentsPopular items: Tea, Baby food, milk powderand Horlicks

Spices, mainly Jeera or Cumin (wholesaleitem), Seasonal Fruits, Vegetables, betelleaves and food itemsPopular item: superior quality betel nuts

Cosmetics and Toiletries, Food items(including dried fish), Spices (wholesale),good quality garments, seasonal fruits, minorforest products.Popular items: seasonal fruits and wintergarments

Bangladeshi vendors

Aluminium cookware, plastic items, Processedfood items (Litchi drinks, chips and biscuits), Fish(both dried and sweet water), Melamineproducts, Fruits (mainly Green apples) andvegetables (non-seasonal)Popular items: Dry fish/Fish, plastic items,Electronic items (1 Bangladeshi vendor -mobileaccessories, small LED lamps)

Processed food items (Chips and locally bakedbiscuits, Food items, Garments, Cookware,Fruits (green apple and other non-seasonalvarieties)Popular items: Dry Fish, Plastic items

Aluminium Cookeries, Plastic wares (tables andchairs), Melamine wares (dishes and bowls),Cotton Industry Products (Lungi and Gamcha),inferior quality garments, inferior quality betelnutsPopular items: Plastic and Melamine wares

Food items and dried fish, Hybrid vegetables,plastic and melamine productsPopular items: plastic and melamine wares

Source: Compiled from the primary survey data


This confusion pertains not only to the item, butalso to the quantity that will be permitted forcarriage into the haat. Farooq of Upper Kalaichar(Meghalaya) laments: �My spices were selling wellat previous haats and I was so encouraged by thesales that I started carrying bigger quantities. Butall of a sudden today, I am told by the guards (re:customs officials) that carrying so much is notpermitted by the law!� When asked to respond onthis issue, the customs officer clarified: �borderhaat is not the place for wholesale trade and oftenit becomes very difficult to convince the vendorsthat they can only trade in modest quantities at thehaat; despite warnings and words of caution, theyare often seen to overstep their limits.�

Besides, officials monitoring haat proceedings arenot equipped with measuring devices and oftenrely on their visual assessments for judgingquantities of goods carried by the vendors. Underthe circumstances, what kind of goods will bepermitted for carriage into the haat as well as thequantity that will be allowed for the same becomesa matter of discretion of whoever is officiating atany point of time. Ranjan, a vendor from Srinagar,expresses awareness that the invigilating officialsat the haat are themselves not clear about the listof items that is officially sanctioned for trade atborder haats. He comments: �The other day, whenI brought in hand sanitisers, the officials keptasking each other if this should fall undermedicinal goods or toiletries and although theywere unable to come to a conclusion, they did notallow me to carry the item into the haat.�

Despite this anomalous situation, it is possible toidentify the items that are found to be tradedacross haats along the Indo-Bangladesh border.

Indian vendors across the border haats are foundto carry items of their own choice and localofficials do not intervene as long as the items arewithin the listed category of officially approvedgoods. There is, however, one exception and thatis the case of Kamalasagar. Here, the question ofwhich vendor will be permitted to sell what item(s)is decided prior to the commencement of the haatby local officials on the basis of prior consultationwith the vendors and in consideration of theirregular trade. So, if a vendor earns his livelihoodby selling garments at a regular garment shop, he

is allowed to sell only garments at the haat.Vendor cards are distributed only after suchdecisions are made. Vendors who have a regularthriving business find the haat as a welcomeextension to their trade, but not every vendor atKamalasagar is happy with the existingarrangement. Juton Dash sells fruits at the haatbut he laments: �If I was allowed to sell cosmetics,for which I see a great demand at the haat,perhaps I could have earned a higher profit!�

The DGFT guidelines forbid trade in respect to afew items at the border haats. These arecontrabands, drugs & pharmaceuticals andlivestock. Customs officials and BSF personnelofficiating at border haats ensure strict vigilancein this regard, making it mandatory for everyentrant to the haat to go through a regularmanual check. Apart from some isolated attemptsat drug trafficking in the Srinagar haat, nobreach of regulations has been recorded in therecent past. The trading of livestock (mainly fromIndia) and fish, both dried and sweet watervarieties, (from Bangladesh) seems to be the mostcontentious issue in this regard.

Our survey team in the course of FGDs with localvillagers has found that there are several Self-Help Groups (SHGs), often initiated and operatedby women members, in the region of Kamalasgarand Meghalaya who are engaged in livestockrearing and poultry farming. They have learntfrom their vendor friends at the haat thatBangladeshi vendees often look for poultry andeggs, but they regret that although they are eagerto sell these at the haat, these items are notallowed inside. Johny Kanya of Kamalasagarobserves: �We could have a regular business atthe haats if only eggs are permitted for sale. Iffruits and vegetables can be allowed along withfish and packaged foods as well, then why thisban on eggs?�

It may be relevant in this context to highlight thatin Srinagar, Tripura, where vigilance andinterventions by customs officials and BSFpersonnel are less strict, some vendors have beenfound to occasionally sell eggs and poultry,although in modest quantity. Shilton, a friend andassistant to a vendor at the Srinagar haat,explains how once in a while he manages to


carry a chicken or two along with a few eggs insidethe haat: �There are days when I come to the haatwith a couple of chickens and a few eggs in thehope of finding a permissible official; if I am lucky Iget through and make some money. In the worstcase, I will be sent back and as such have nothingto fear.�

Indian vendees, mostly in Bengali localities (Tripura-based haats) are generally interested to buy sweetwater fishes particularly Hilsa and Katal from theBangladesh vendors. The supply of these from theBangladesh side, however, remains irregular, exceptfor the Srinagar-Chhagalnaiya border haat. It is tobe remembered in this context that in Bangladesh,as in India, there is a general ban on livestock fortrade at the border haat. However, there is anunresolved controversy in Bangladesh as to whetherfish should be clubbed with livestock. We havepointed out in an earlier section that fish is clubbedwith livestock in Sunamganj and Kurigram haats,but not so in Chhagalnaiya (which corresponds toSrinagar), which is why Bangladesh vendors areable to carry fish to the border haat atChhagalnaiya.

We have also noticed in the case of Bangladeshivendors that there is a general lack of clarity aboutthe items that are approved by the higher authoritiesfor trade at border haats. As in India, inBangladesh as well, amendments to the original listof items do not percolate to local levels in time. Thisresults in confusion, both among vendors and localofficials and creates asymmetry of information. Forinstance, one of the Kasba, Tarapur officials do notseem to be aware that items that vendors carry forsale at the haat need not be �locally produced�anymore. This stipulation, which featured earlier inthe official document was subsequently removedthrough an amendment. It is evident that localofficials do not keep themselves informed aboutsuch amendments and such lack of information canwell restrict trading activities at the haats. This isalso the case in Kalaichar, Meghalaya, where thecustoms official did not seem to be aware of thelatest guidelines for border haat trade.Consequently, local trade at this haat was restrictedin terms of varieties permitted for sale at the haat.

A related problem also needs to be considered andthis is in respect of the interpretation of guidelinesissued by higher authorities in the domain of border

haat trade. Nowhere in the original guidelineshas wholesaling of goods been forbidden. Yet,customs and BSF officials officiating at locallevels often seem to find the bulk sale of goodsoffensive and unlawful. In the process, vendorsfeel constricted and are reluctant to re-investtheir haat profits towards expanding the scale attheir business.

Shilne of Kalaichar opines: �Vendees areinterested in my goods and I can feel the risingdemand but whenever I carry a large quantity ofbetel nuts, the officials are full of questions andthreaten to disallow me in the future if I do notrestrict the quantities I carry to the haat. Underthe circumstances, I wonder if it will be prudentof me to invest more to expand my sales.�

However, sometimes the lure of a thrivingdemand from Bangladeshi vendees impelsIndian vendors to get a little carried awaytowards the expansion of their sales. Thistendency is nourished by the Indian vendorsparticularly when officials at a haat seem morepermissive and less interventionist. The case ofTripura side haats illustrates the point. Vendorsin Srinagar can hardly resist themselves fromyielding to the demand of Bangladesh vendeesfor spices and cosmetics, which are often sold inlarge quantities, in fact wholesale. In fact,several vendees in Bangladesh are keen topurchase certain goods wholesale, or in bulk;these include soaps, toiletries, chocolates anddiapers.

Nowhere in theoriginal guidelines haswholesaling of goodsbeen forbidden. Yet,customs and BSFofficials officiating atlocal levels often seemto find bulk sale ofgoods offensive andunlawful


This impact positively on the Indian vendors by wayof boosting their profit and prodding them towardsmore investment in the hope of expanding theirborder haat businesses. In Bangladesh, customs andlocal officials, supervising border haat trade appearmore interventionist and stringent when it comes toobservation of rules and regulations pertaining toborder haat trade. Perhaps, this depresses thevariety of items that are available with Bangladeshivendors. We have already drawn attention to thelukewarm responses of Bangladeshi vendors toborder haat trade as evidenced by several emptyenclosures at the border haats.

One wonders if this is in some measure caused bythe strict posture of vigilant officers on theBangladesh side. Moidul of Kurigram drawsattention to this situation: �We have to go throughsuch rigorous checking and so many questions

every time we come to the haat that we fear thatif we bring new kinds of goods like LED bulbs,imported from China, which might interestIndian vendees, we may not be allowed entry.�This problem is compounded by the fact that likethe Indian supervising officials, the Bangladeshiofficials do not seem to have a clear consensusabout the latest regulations in terms of itemspermitted for border haat trade. Thus, improperand inadequate information on the part of theofficials impede border haat trade inBangladesh. Consequently, vendors are left withless profit margins and this decreases the flow oftrade that could otherwise have been possible atthe border haats.

Status of Vendor DecisionsRegarding Items for Sale at theBorder HaatOne of the professed objectives of border haattrade is to provide the people living along theborder with an additional source of income thatcan help them to raise their standards of living.Initially the rules and regulations stipulated bythe DGFT required the Indian side to sell �localproducts� at the border haats. That is why one ofthe qualifications for someone to be eligible forvendorship was residence within a radius of 5Kms from the border haat premises. Such rulesand regulations pertaining to border haat tradeas also the list of items officially approved for theborder haat trade are supposed to be obtainedby local authorities, particularly customsofficials, from the DGFT and intimated tovendors who will be trading at the haat.

We have already drawn attention to theasymmetry of information among vendors,resulting from the inadequacy of informationamong local authorities about localamendments. This problem apart, there is asystem of feedback on part of local authorities,officiating at the border haats, through which theDGFT seeks to maintain touch with groundrealities and takes steps to accommodate desiredchanges. It has been seen from the time ofcommencement of border haat trade that withthe exception of Meghalaya, where localresidents grow seasonal fruits (oranges inwinter), dwellers along the Indian side of the

There is asymmetry ofinformation not onlyamong vendors, butalso among those, likecustoms officials andBSF personnel, whoofficiate at andsupervises border haatproceedings. Ome ofthe observed rules atthe border haat tradeare assumed byofficiating personnel,who tend to applythem at their owndiscretion, and that tooinconsistently, todecide �what goods�and �how much� arepermissible for entryto the haat


border are hardly in a position to come up with�local products� or produce any other items that areofficially approved by border haat trade. In view ofthis reality, the stipulation of �local products� hasbeen removed from the DGFT guidelines therebygiving the vendors a wider range of options forselling at the border haats.

In India, the decision as to what items to be sold atborder haats largely rests with the vendors. Vendorsdo not seem to face any problem as long as theycarry items that are officially endorsed by borderhaat trade regulations. We have drawn attention tothe problem relating to �quantity� of goods permittedfor sales at the border haats in the previous section.

We would like to reiterate two particular problems:first, there is asymmetry of information not onlyamong vendors, but also among those, like customsofficials and BSF personnel, who officiate at andsupervises border haat proceedings. We havehighlighted lack of information among customsofficials about latest amendments to the list oftradable items.

Second, some of the observed rules at the borderhaat trade are assumed by officiating personnel,who tend to apply them at their own discretion, andthat too inconsistently, to decide �what goods� and�how much� are permissible for entry to the haat.This problem has been highlighted with reference tothe idea of �wholesale� trade at border haats in theprevious section.

The policy recommendations are clear. Theasymmetry of information needs to be plugged;rules and amendments initiated by the DGFT oughtto reach local authorities and particularly those whoofficiate over haat proceedings, in time, so thatvendors and vendees do not suffer. It is alsonecessary to ensure that there is promptdissemination of information across stakeholders,particularly vendors and vendees regarding relevantchanges to rules governing border haat trade.Without such timely dissemination, vendors andvendees, will not be in a position to take timelydecisions to their advantage. It is also important thatrelevant aspects of border haat trade are thoughtand clearly stipulated. This will reduce the scope forpersonal discretion, even assumptions, on part ofhaat officials, as seen on the issue of �wholesaletrade�.

The Kamalasagar border haat (Tripura) isdifferent from other border haats on the Indianside. Here, vendors are allowed to discuss withlocal customs officials what item they wish to sellat the border haat. Vendor cards are distributedonly after the choices of vendors have beenapproved, and once these cards are distributed,vendors are not allowed to substitute theiroriginal choices, nor add items to their list oftradable goods.

At Kalaichar, one encounters a growing demandon part of Bangladesh vendees for Indian spices,some of which are locally grown in Meghalaya.Spurred by this demand, Indian vendors haveresponded with a flourishing wholesale trade inspices. This has also happened because customsofficials monitoring the Kalaichar haatproceedings continue to nurture the hangover ofearlier regulations, which required that goodsbe �locally produced� in order to be eligible fortrade at border haats. That �local production� isno longer a requirement is not always seriouslyobserved by officials. Whatever it is, by offeringgood quality spices at competitive rates (thoughall spices are not locally produced), the Indianvendors have fed a steady and growingBangladeshi market. This has caused spicegrowers on the Kurigram side of Bangladesh todepress their cultivation and shift to other waysof earning their livelihood.

Indian vendors havefed a steady andgrowing Bangladeshimarket. This hascaused spice growerson the Kurigram sideof Bangladesh todepress theircultivation and shift toother ways of earningtheir livelihood


The vendors on the Indian side also sell brandeddiapers, baby foods and health drinks and thereseems to be a rising demand for thesecommodities across all Indian haats from theBangladesh vendees. However, at Srinagar(Tripura), the sale of these commodities used toassume wholesale proportions. These goodswould, thereafter, be sold in Bangladesh at muchhigher rates and that too not always in the openmarket. To bring the situation under control, theBangladesh Border Guards have come downheavily on vendees allowing them to buy thesecommodities only in very restricted quantities.

Mosibuddin, a Bangladeshi vendee fromChhagalnaiya draws attention to this situation:�Earlier, we could buy several packets of Horlicksand after keeping some for my own consumption,I was able to make a few pennies by selling themto interested neighbours. But now, our guardsmanually check us to ensure that I am notcarrying more than one packet.� This view iscorroborated by a few Indian vendors like Manik,who regrets that closure on certain items on thevendees of the Bangladesh side stands in the wayof bigger profits: �Previously, I would make moremoney by selling Indian packaged foods byHorlicks and baby food, for which the demandkept steadily rising. But all of a sudden, with theBangladeshis changing their rules, I can sell muchless quantities of these items.�

Markets at the border haats on both sides of theIndo-Bangladesh border seem to be demanddriven. The point could be illustrated with specialreference to the production of betel nuts. The hillyregions of Meghalaya are well suited to thecultivation of good quality betel nuts and thesurplus that is produced in the Indian sidecompliments the growing demand for edible betelnuts on the part of Bangladeshi vendees. On theother hand, Bangladesh grows an inferior qualityof betel nuts, inedible and locally branded as�third graded variety�, for which there is athriving demand on the Indian side, becausethese are meant for use in �varnish� andwoodworks, and are available at a cheap rate. Itis clear that the cultivation of both varieties ofbetel nuts � the superior-quality edible variety onthe Indian side and the inferior-quantity inediblevariety on the Bangladesh side � is largely driven

by the growing demand for the respective varietieson the two sides of the border.

This is complementarity between goods offered byvendors from one country and the demands ofvendees from another, is seen in other cases also.Local businesses on the Bangladesh side flourish onaccount of demand of Indian vendees for biscuits,cakes and other confectionary items. Similarly, amarket is growing up on the Bangladesh side forvegetables, which Indian vendors make available atinexpensive rates, even many of these vegetablesare not locally produced in proximity of the borderhaat on the Indian side. It seems that vendors onboth sides are keen to carry a load, even over-load, of those items for which there is a highdemand for consumers and vendees (mostly fromthe other side of the border), rather thanconcentrate on goods, which offer comparativelyhigher profit margins but for which the demand isperceptibly less.

Status of Most Profitable Items Sold atthe Border HaatThe DGFT guidelines offer the Indian vendors awide range of products to choose from the purposeof selling at the haat. This choice gets somewhatrestricted for vendors at Kamalasagar andKalaichar. This is because the local authorities, whosupervise the proceedings at these haats are notaware of the latest amendments of the DGFTguidelines. Thus, although recent amendments donot require that items for sale at the haat be �locallyproduced�, the haat officials continue to enforcethis requirement under the hangover of the earlierregulations. One may also reiterate that in respectof Kamalasagar, vendorship is distributed by theconcerned authorities on the basis of two

if someone sells fruitsround the year, it isexpected that he will sellfruits if grantedvendorship at the haatas well


considerations: consultation with vendors prior tothe commencement of the haat and the usual non-haat business of someone aspiring to vendorship.Thus, if someone sells fruits round the year, it isexpected that he will sell fruits if grantedvendorship at the haat as well.

The vendors on the Bangladesh side operatingunder the Foreign Trade Authority (FTA) are subjectto a set of guidelines, which is quite similar to thatwhich governs border haat trade for the Indianvendors. In fact, the similarity is not just in the caseof guidelines for vendors but for all stakeholdersconcerned with trade at the border haats. Even inrespect of amendments, the similarities arenoteworthy and this is not surprising becauseamendments are initiated and brought into effecton the basis of discussions and deliberations of theJoint border haat Management Committee(JBHMC) involving participants and representativesfrom both sides of the border. In view of this basiccongruence between India and Bangladesh inrespect of rules and regulations governing borderhaat trade as a whole, it is not surprising that likethe vendors on the Indian side, the vendors fromBangladesh can also choose from a wide list ofitems for sale at the border haat.

In this section, we are concerning ourselves withthe possible correlation between goods sold at theborder haat and their profitability for the vendors.We have split the goods that are sold by bothIndian vendors and Bangladeshi vendors into twobroad categories. First, we have clubbed togetherall those goods like fruit and vegetables, garments,

woollens, blankets and others which are not soldin bulk but relatively small quantities. Second,there is another category of goods includingcosmetics and toiletries, spices, superior betel nutsetc (from India) and fish (both dried and sweetwater in certain haats), plastic and melamineproducts and betel nuts, etc. (from Bangladesh),which are sold in bulk and, therefore, can bedubbed as wholesale items. This categorisation ispresented in the Table below. The Table alsohighlights the corresponding investments/costsincurred and profits earned by vendors of the twocountries for each category of items that arepredominantly traded:

It is seen in the case of Indian vendors that thosewho sell items (specified earlier) in bulk, generallyinvest more in production/purchase of goods thanthose who sell in relatively smaller quantities. Theaverage monthly investment of these vendors whosell primarily fruits, vegetables and other non-wholesaling items is INR1.33 lakhs (US$1900),while for those who sell items in bulk, the averagemonthly investment is INR 1.66 lakhs (US$2,371).It is seen, therefore, that items, which are not soldin bulk tend to fetch a higher proportion of profit.This is not without reason. Items, which are notsold in bulk like seasonal fruits and vegetables areoften cultivated by the vendors themselves (mostlyin Meghalaya) and their quality is good,attracting vendees for Bangladesh. In Bangladeshalso, we find that profit is higher in case of non-bulk commodities because these include sought-after items like confectionaries and fruit juice. Notonly is there a good demand for these locally

Table 6.2 Major items sold at border haats in Bangladesh andin India and their corresponding profitability

India (in INR) Bangladesh (converted to INR)Vendor specifications/ Vendors Vendors Vendors VendorsBH sales parameters primarily primarily primarily primarily

selling non- selling selling non- sellingbulk items bulk items bulk items bulk items

Average cost of production/ purchase 1,33,045 1,66,278 13,360 29,771(per haat day in INR)

Average BH profit (per month in INR) 14,491 14,919 3,880 7,074

Normal Profit percentages 11 9 28 22(calculated, in %)

Source: Compiled from the primary data


grown products, but the cost of production is alsorelatively low allowing a higher profit margin forthe vendors.

The case of Sita Mary Walang, a vendor at theBalat Haat merits attention. She grows certainvarieties of fruits along with spices in smallquantities and their good quality draws vendeesregularly. This also ensures her a high profitmargin which is almost 35-40 per cent of her totalcost of production. In comparison, goods, whichare sold in bulk are usually not goods that arelocally grown/produced and the vendors basicallyserve as middlemen, buying goods from othermarkets and selling them at the haat at moderaterates of profit.

These vendors understand that per unit profitmargin of the goods that they sell is modest andthey, therefore, try to build up a larger profit forthemselves by selling those items in large or bulkquantities. Prospects of bigger profits often getdepressed when these vendors incur higher costsof transportation for having to travel to marketsthat are at a great distance. There is yet anotherelement of uncertainty that needs to be borne inmind when we consider the profitability of itemsthat vendors sometimes choose to sell in bulk.Although the original DGFT guidelines do not putany restriction on quantities to be sold at the haat,

some local haat officials have a tendency toassume (this tendency has been highlighted in anearlier section) that just because border haat tradeforbids wholesale purchase, vendors are also notsupposed to sale beyond certain quantities. Thesituation gets further complicated by the fact thatthis assumption is neither universally, norregularly, enforced by the haat officials; hence,for vendors selling in bulk, profit margins canvary with variations in official interventions acrosshaats in India.

The normal profit reaped from border haat tradeby the Indian vendors and the Bangladeshivendors who sell primarily fruits and vegetables,is 11 per cent and 28 per cent respectively. Thesevendors do not cultivate these fruits andvegetables themselves, but procure them fromnearby markets at wholesale rates and, therefore,the margin of profit that they generally earn is nothigh. It is also to be noted that vegetables inTripura and Meghalaya are more expensivecompared to the price, at which they areavailable in Assam or nearby West Bengal. Assuch, even the wholesale rates, at which thesevendors buy vegetables in their local markets arehigh, which stand in the way of high profitmargins at the border haat.

However, the profit margins increase for theIndian vendors during winter, especially inMeghalaya, where good quality oranges areproduced. There is a higher demand for theseoranges at the border haat. The Bangladeshivendors, who sell fruit and vegetables at the haat,buy them from the local markets in Bangladesh atlower rates compared to what Indian vendorsspend for buying fruit and vegetables from localmarkets on the Indian side. As a result, thenormal profit earned by these Bangladeshivendors goes up to as much as 28 per cent. Thisis also reinforced by the fact that the relatively lowprices, at which Bangladeshi vendors offer theirfruit and vegetables attract Indian vendees,although these vendees are reconciled to the factthat they are not of a high quality. Margritsta, anIndian vendee at the Balat haat opines: �We cometo the haat regularly to buy vegetables from theBangladeshi vendors because their rates arecheaper than in our local markets but the qualityis definitely not very good.�

Goods, which are soldin bulk are usually notgoods that are locallygrown/produced andthe vendors basicallyserve as middlemen.Hence, for vendorsselling in bulk, profitmargins can vary withvariations in officialinterventions acrosshaats in India


Another clarification is necessary. Vendors whohave been linked up with a particular category ofitems for trade at the border haat, do not alwaysrestrict themselves to those items alone. In otherwords, a vendor who deals primarily withgarments is also at times seen with a small basketof seasonal fruits, like oranges in winter, which isput up for sale at his sales enclosure. Therisia, alady vendor at the Balat border haat drawsattention to this aspect: �I normally bring footwearto the haat and that is what I am known to sell.But once in a while when I have a good harvest oforanges or lemons, I carry some to the haat forsome additional income�. Haat regulations shouldideally allow for this flexibility.

Bangladeshi vendors are seen to invest less in theborder haats owing to the declining demand fortheir local products in India. In an earlier sectionwe have already drawn attention to the fact thatfor most Bangladesh vendors, vending at the haatis only a subsidiary source of their householdincome. They naturally do not have the sameimpetus as seen in the case of those Indianvendors, for whom border haat trade has evolvedas the mainstay of their family income. The majorselling items in Bangladesh, apart from fruits andvegetables, are fish (both dried and sweet watervarieties), particularly in Chhagalnaiya andKasba haats. We have already discussed in someof the earlier sections, that there is good demandfor Bangladeshi fish on part of Indian vendees.This sometimes prods some fish vendors inBangladesh to carry fish in large quantities to thehaat. But their attempts in this direction aresometimes thwarted by the vigilant andoccasionally strict and interventionist personnel ofthe BGB, who have a negative view of any tradein bulk quantities at border haats.

We would like to draw attention to yet anotheraspect of the profitability of the items that vendorschoose for selling at the border haat. It would beusual to expect that vendors who sell in bulk orare able to sell their goods at wholesale rates, arethe ones who earn a profit than vendors who sellsmaller quantities of goods. This is seen in thecase of Bangladesh but not in the case of India.The reason for this lies in the fact that Indianvendors who sell in bulk at the border haat incurtwo major expenses in carrying in their wholesale

trait: One, transportation costs are heavy becauseoften the goods have to be procured from distantmarkets. We have calculated on the basis of dataavailed from the Indian vendors that the cost oftransportation of goods is as much as INR3,611per month on an average. Two, costs of hiringlabour are also substantial and we have drawnattention to this reality in an earlier section. It isestimated that Indian vendors incur expenses ofINR3,659 per month on an average towards costof labour. Expenditure in these two domainsincreases the investments on part of the vendors,which of course has a telling effect on the profitmargin. The average monthly costs incurred bythe Bangladeshi vendors who sell in bulk orwholesale at the border haats are INR1,235(BDT1,482) in the domain of transportation andINR1,335 (BDT1,602) in the domain of hiredlabour. As a result, these Bangladeshi vendors areable to reap a higher margin of profit, 22 percent in contrast to the feeble 9 per cent earned bytheir Indian counterparts.

In assessing the overall picture of the border haatsin terms of items traded and their profitability, weare led to the conclusion that those vendors whosell fruit and vegetables earn profits almost asmuch as those vendors who sell in bulk, althoughtheir cost of production/purchase is less. Bycontrast, those vendors who seem to make bigbusiness at the haat selling cosmetics and spicesin bulk or wholesale are able to reap a lowermargin of profit. While this trend is captured byour survey, we would also take this opportunity tohighlight that more vendors are keen to sellcommodities like cosmetics and spices in bulkrather than take to selling fruit and vegetables.One wonders if this could be attributed to thereluctance on the part of many to take to thecultivation of fruit and vegetables, which involvesless cost of production alright but is at the sametime more labour-intensive and uncertain.

Biswamitra, a fruit seller at Kamalasagar isthinking about shifting from fruit selling to sellingconsumer item in bulk. He explains: �I do make agood profit by selling fruits and cost of productionis also not much because I grow most of it myself.However, one is always wary about a goodharvest and there are also problems related topreservations. Given these uncertainties, I am


thinking of shifting to selling consumer items. I will ofcourse have to invest more compared to what I donow, but I will be able to plough that back, even ifwith less profit, but without a time lag.�

Swapan, a wholesale vendor selling cosmetics andtoiletries at the Srinagar haat confirms: �Rather thanshifting to fruit selling or even pursuing itsimultaneously, I will rather expand my sale ofcosmetics and toiletries because I am assured of readyreturns and although the per unit profit that comes tome from sale of these items is less, I am sure thatincreasing demand of Bangladeshi vendees for theseitems will leave me with a larger volume of profit inthe long run.� Under the circumstances, it is notsurprising that existing and aspiring vendors at theborder haat are counting on expanding their volumeof sales in respect of consumer items like cosmeticsand health drinks, for which the demand is likely toremain steady, if not greater, in the near future. Thistendency is seen in the case of Indian vendors as well.

Status of Need to Alter Item List for theBorder HaatAt the Srinagar haat (Tripura), the officiatingauthorities appear to be less strict in terms ofintervention in matters of goods that are carried toand from the haat. At least on the Indian side, thereseems to be very little restriction on both the type ofgood and quantity, in which that is traded at theborder haats. Haat officials at both the Srinagar andKamalasagar haats are seen to intervene only inrespect of antiseptic and antifungal creams andointments, because these items are fall in the categoryof �drugs and pharmaceuticals�, over which there is ageneral ban for the purpose of trade at border haats.

Our survey team has observed that all items officiallyendorsed for border haat trade, are generallyplentiful at all border haats along the Indo-Bangladesh border. It is to be noted that there isplenty of all kinds of commodities at theChhagalnaiya haat in Bangladesh (corresponding toSrinagar, India). This is because vendees fromBangladesh at this haat have an array of demandsranging from crockery and cosmetics to garments andsarees. It seems that these vendees have a fascinationfor Indian brands, and are interested to pick up items,even when their preferred brands are unavailable.Akhtar Begum, a vendee at the Kasba haat

comments: �There is a lot of demand on ourside for Indian products like Horlicks, Cerelacand Lactogen. But sometimes, we are happy tobuy any brand that is Indian.�

Lack of uniformity is discerned both amonghaat officials (one is more interventionist thanthe other); there is also lack of uniformity inrespect of goods � the bulk sale is allowed incase of one item, but not in case of another.On the other hand, there is a rising demandfor various kinds of fish on the part of Indianvendees from Bangladeshi vendors. This isabsolutely not surprising as there are manyresident Bengali families on the Indian side ofthe border and Bengalis are known for theirlove for fish. Their demand is supplemented bythe indigenous tribal people who also consumefish. But Bangladeshi vendors are often unableto take advantage of this demand becauseBGB often intervenes and restricts the quantityof fish that they wish to carry to the haat.

Once the much needed clarity in respect ofrules and the uniformity of their implementationon part of local officials are ensured, borderhaat trade will shed its region specific traitsand emerge as a more universal phenomenon.

Status of Vendor Interaction withofficials at the Border HaatWhere there is direct communication betweenthe haat officials and the vendors, as inKamalasagar, informal committees of vendorsfunctioning like interest groups have notevolved. By contrast, at other haats where wehave encountered informal committeesconstituted by the major vendors, whichfunction like interest groups trying to prevailover the haat officials to ensure that the officialdecisions at the haat are to the advantage ofthe vendors.

Several vendors have drawn attention to howtired they become while waiting in queues forinspection and checking by haat officials.Perhaps, availability of measuring devicescould expedite the checking procedure. Use ofsuch devices will also ensure uniformity inofficial interventions at the Bangladesh Haats.


Subhendu, who has been selling cosmetics at theBalat border haat observes: �I have been sellingcosmetics since the inception of the haat and Idon�t understand what is there to check with suchtime consuming intensity! I have been standing inthe queue from 8 am in the morning and by thetime I set foot in the haat, it was 11:30 am and Iwas already drained!�. Ronu Roy, another sellerat the Balat haat points out: �Excessive checkingand suspicion on the part of the BSF officialsdrastically curtail effective business hours at thehaat.�

Impact of Socio-economic Status onVendor Interaction with officialsat the Border HaatWe wanted to examine additionally if differentialtreatment on part of the haat officials is anoutcome of any social attribute � gender, incomeclass, status, caste, religion � of the vendor. Wefind that although haat officials often use theirown discretion in dealing with vendors and in thatsense vendor are apt to feel discriminated, it doesnot seem that this discrimination is caused bydifferences in the levels of financial prosperity ofthe vendors.

In respect of gender it is seen that 28 of the 33male respondents are satisfied with theinteractions of haat officials vis-à-vis tradingactivities at the haat. It is to be remembered thatall our female vendors on the Indian side are fromMeghalaya and mostly from Balat. Therisia, awomen vendor of Balat opines: �By the time wefinish our domestic chores and come to the haatwith our goods, several men have already queuedup before us and nobody thinks about us or showus any special consideration because we arestanding at the far end of the queue.� A similaropinion is expressed by Sita Mery: �Men arealways lucky and get to stand in front becausethey can come to the haat as soon as they wakeup. It is we, women who have to toil at home andthen find time to toil outside.�

Perhaps there is need to consider the possibility ofhaving a system of a separate queue for womenvendors and correspondingly place womenpersonnel from the BSF and local police tomonitor and supervise the entry of women

vendors into the haat. Dipali, a �new� vendor atBalat is hopeful: �With more women beinggranted vendorship, the number of womenvendors has gone up to 12 in Balat and we nowhope that there will be separate queues forwomen and better facilities for us to cope withthe day-long strains of carrying trade at thehaat.� No discrimination on part of Haat officialshas been noticed, whether in India or inBangladesh, in respect of religion, caste orincome.

Status of Addressal of ProceduralIssues at the Border HaatWe have tried to examine the operations at eachof the haats separately in order to come to aconclusion about procedural problems in borderhaat trade under current rules and regulationsstipulated by the DGFT in India and the FTA inBangladesh. Under the existing rules, there is aBHMC headed by a DM, who often delegates hisresponsibilities to an ADM to look into problemsand prospects of border haat trade. Thiscommittee consists of local panchayat officials,personnel of the BSF, customs officials, localpolicemen and prominent vendors and they meetregularly (number of meetings vary across haats)

Perhaps there is need toconsider the possibilityof having a system of aseparate queue forwomen vendors andcorrespondingly placewomen personnel fromthe BSF and local policeto monitor and supervisethe entry of womenvendors into the haat


to address specific problems faced by thestakeholders. This committee also considers itemsto be traded and the general guidelines to befollowed in the conduct of border haat trade. Inhighlighting the specific traits pertaining toprocedure at each of the haats, we are also ableto notice problems that are specific to particularhaats and those that generally cut across them.

We have visited two haats in Tripura on the Indianside of the Indo-Bangladesh border. These are:Srinagar and Kamalasagar. At the Srinagar haat,proceedings are monitored by customs officialsand personnel of the BSF. The haat commences at9 am with vendors allowed to enter first. Oncethey have settled down in their respectiveenclosures, the vendees and visitors are allowedentry. All entrants need to produce valid passes �vendor cards in case of vendors, vendee cards incase of vendees; and passes (INR 10 each) foreach visitor alongside the presentation of a validID card. Proceedings at the haat are generallysmooth and we have not witnessed any rigorouschecking procedure in respect of vendors and thegoods that they carry into the haat. We have alsonoticed that customs officials and local policemenare not present regularly, i.e., on all haat days. It,therefore, largely falls on the BSF personnel tomonitor haat proceedings regularly.

At Kamalasagar, so far as managing andmonitoring haat proceedings are concerned, wehave found the DM taking keen interest andplaying an active role. It is at his initiative, that the�gram rojgar sheboks� have been appointed withthe responsibility of examining the validity ofpasses for all entrants, maintaining records ofgoods being traded at the haat and generallymanaging all activities in the haat premises. Theyoperate together with customs officials, who arealso regularly present.

Under the circumstances, the personnel of the BSFremain largely responsible for ensuring securityand do not need to engage in any administrativeor managerial work. We have seen that allactivities at the Kamalasagar haat are conductedsmoothly and there is seldom any conflict over thepermissibility of goods that vendors carry into thehaat. This is largely because vendor cards inKamalasagar are distributed only after due

consultation with aspiring vendors, to which wehave drawn attention in earlier sections.

In contrast to Tripura, the haats of Meghalayaseem to throw up some problems, which need tobe addressed for more organised functioning ofthe haats. At Kalaichar, there seem to beinformation gaps among customs officials aboutitems that are officially approved for border haattrade. This creates confusion and controversybetween haat officials and vendors precipitatingdelay, which is significant because the haat doesnot commence before 10 am. The number ofpersonnel from the BSF and local police is alsoinadequate for purpose of monitoring haatproceedings. It is, therefore, not surprising thatvendees at this haat find it easy to buy in bulk,particularly items like plasticware and melamineproducts.

Unlike in Kalaichar, we have seen that the BSFpersonnel are quite active at the Balat haat andthey are able to monitor and manage activities ofthe proceedings at the haat efficiently. The relativeirregularity and activeness on the part of customsofficials allow the BSF personnel to enlarge thescope of their activity in terms of overseeingpermissibility of goods alongside other affairs ofthe haat. This also precipitates conflicts anddifferences between the officials and the vendorsand more so because the BSF personnel have aclearly negative disposition to wholesale trade,which the Balat vendors are eager to indulge in.

What appears more striking about the Kasba haatis that the number of officials monitoring haatproceedings is few and unable to cope with themanagement of the large number of vendees whothrong this haat. Otherwise activities pertaining totrading are conducted smoothly and withoutconfusion.

In comparison to other haats in Bangladesh, theborder haat at Kurigram is passive in terms ofvolume of activity concerning trade. On account ofrelatively low turn outs at the haat (as a result of itsremote location), both in terms of vendors andvendees, management and monitoring of theaffairs of the haat is never a problem for theofficials.


The haat at Sunamganj is a forum for easy going trade andthere seems to be no incompatibility between vendors andvendees, on one hand, and those managing and monitoringtrading activities at the haat on the other. This is largelybecause the BGB personnel are less interventionist and morepermissive allowing vendors and vendees to engage in bulkor wholesale trade of vegetables.

It can be said with reference to border haats in Bangladeshin general that the volume of trade both in terms of types ofgoods and the quantities, in which they are traded appearless than what we see on the Indian side. This could explainto a large extent why procedural problems are less on theBangladesh side and why the difficulties and problems facedby the stakeholders on the Indian side are both numerousand intricate.

Although there is a BHMC for each haat, the number ofmeetings and issues that need to be addressed vary fromone haat to another. Vendors express awareness about suchcommittees on both sides of the border. Some of theprominent vendors on both sides are also inducted in theirrespective haat committees. It is from some of them that wecould gather the major issues that are addressed at suchmeetings. A summary of these details pertaining to the twocountries are highlighted in the following tables:

In addition to the border haat committees that we havehighlighted, there is also a Joint BHMC for each set ofcorresponding haats on the two sides of the border. TheseJBHMCs consist of the administrative heads of the respectivedistricts/blocks alongside customs officials, local police and

The haat at Sunamganjis a forum for easy goingtrade and one wherethere seems to be noincompatibility betweenvendors and vendees onone hand and thosemanaging andmonitoring tradingactivities at the haat onthe other

Table 6.3: Border haats in India: major problematic issues at each haat andfrequency of BHMC meetings to address them

Haats Number of meetings of Major issues addressed(India side) BHMC held last year (as highlighted by the vendors)

Srinagar 1 Theft issuesDiscretionary role of customs officials in enforcing DGFT guidelinesInter-vendor conflictsCurrency exchange problem (no person from the Indian side)Rules governing the distribution of vendor cards

Kamalasagar 3 No major problem identified or discussed

Kalaichar 2 Currency exchange issuesPetty Theft issues

Balat 1 Infrastructural amenitiesCurrency exchange problems



personnel of the border security staff of the twocountries. The meetings are generally held once ayear, within the respective haat premises and issuesand problems of border haat management arediscussed and addressed. Representatives ofvendors of both the countries also findrepresentation at these meetings.

However, despite the admitted seriousness of thesemeetings, the fact that they are so few and farbetween, makes one wonder how promptlyremedial actions are enforced to address problemsemerging from border haat trade and in particularthe grievances of the main stakeholders. This isimplicit in the observation of Monu Mia, a vendorat the Kalaichar haat: �Yes, I know that there is ajoint committee for considering our problems, butthey meet after such long intervals, that many of theissues are forgotten in the wake of new problems.�

Status of Informal Mechanisms forAddressing Problems at the BorderHaatIn the course of our interview with vendors on theIndian side, we have found that there is anoverwhelming awareness on their part about formalinstitutions like the JBHMC and BHMC. However,these are not the only institutions that regulateactivities pertaining to border haat trade. Forinstance, in Kamalasagar and Balat, there is an

informal group that looks into problems andgrievances of the vendors and vendees. Thisgroup is composed of local panchayat officialsand acts as a mediator on behalf of vendors,putting across their problems to members of theBHMC.

Similarly, in Srinagar, there is an informalcommittee consisting of powerful and activevendors and this often acts like an interest grouptrying to prevail over formal decision makingbodies like the BHMC. In fact, so regular andprominent is this informal group that manyvendors consider it not only to be a formal bodybut also the only one that operates as a platformfor safeguarding their interests, particularly forthe not-so-prominent vendors who seldom find aplace in the BHMC. As Arun, a vendor sellinggrocery items at Srinagar border haat opines:�We have our own union of vendors, which triesto protect our interests so that we don�t fall victimto unwelcome interventions on the part ofofficials regarding trading at the haat.�

At the Kalaichar haat, however, we have notencountered any such informal institution thatoperates for purposes of addressing problemsrelated to border haat management. This couldbe explained by the relatively low volume oftrade that participants at this haat engage in. It isnot that problems pertaining to procedure andmanagement have not cropped up at this haat.

Table 6.4: Border haats in Bangladesh: major problematic issues at each haat andfrequency of BHMC meetings to address them

Haats Number of meetings of Major issues addressed(India side) BHMC held last year (as highlighted by the vendors)Chagalnaiya 1 Issues pertaining to wholesaling or trade in bulk

Lack of transparency in distribution of vendor cardsDemand for a management committee that will function objectivelyand without bias towards the powerful vendors.

Kasba 1 Demand for a more representative managerial committee to redressgrievances of and conflicts among vendors.More flexibility in application of rules governing border haat trade.

Kurigram 1 Wholesaling or bulk trade of goodsTime consumption in issuing cards to vendeesSubletting/sharing of stalls by vendors

Sunamganj 1 No major problem highlighted



There are grievances on the part of vendors and vendees aboutthe currency exchange system (unavailability of personnel forconducting currency exchange) and absence of currencyexchange counters inside the haat premises. But such problemsare discussed and addressed at the meetings of the BHMC,where in addition to the DM, or the ADM, the DC, customsofficials and BSF personnel, Nokhmas and Gauburas(headmen/chiefs of local tribal villages, from which the bulk ofthe vendors and vendees hail) are also present. Perhaps it is forthis reason that no informal institution to protect vendor interestseparately has grown up at the Kalaichar haat.

With the exception of the Kalaichar haat, we have encounteredinformal parallel institutions in all the haats, which cater to thecrucial role of addressing day-to-day problems that vendors andvendees encounter in the course of their trading activities. Theformal committees are found to be more concerned with issuesthat are relatively long term and hence not suited to address theimmediate and the urgent problems that emerge every now andthen between and among the various stakeholders of borderhaat trade.

The policy implications seem clear: there ought to bemechanisms in the border haats that will be concerned with theday-to-day and often unforeseen problems that are likely toemerge as trading activities unfold at the border haats. It is alsoimportant to consider that there ought to be representation inthese mechanisms not just of vendors but also of vendees andother relevant stakeholders that will enhance the competence ofthe mechanism to oversee all aspects of border haat trade. Forinstance, the labourers, who play a significant role at all borderhaats generally have no forum, in which they can place theirgrievances. Although informal institutions to represent theinterest of the labourers have not evolved as yet, one canreasonably expect that it will not take the labourers, given theircontribution to the border haat trade, long to forge some sort ofa mechanism, which will articulate their interests in meaningfulways.

Sankar Debnath, a labourer at the Srinagar border haat,articulates his grievance in no uncertain terms: �It seemseverybody is concerned about vendors and vendees. Do wehave no role to play? How many vendors and how manyvendees would be carrying their goods into and out of the haatif we were not there?�

Examining the border haats on the Bangladesh side, we do notsee any informal institution that exists alongside the formal onesthat have already been highlighted. This could be a result of thegenerally and comparatively low volume of trade that one getsto witness on the Bangladesh side. In Sunamganj, vendors and

There ought to bemechanisms in theborder haats that willbe concerned with theday-to-day and oftenunforeseen problemsthat are likely toemerge as tradingactivities unfold at theborder haats. It is alsoimportant to considerthat there ought to berepresentation in thesemechanisms not justof vendors but also ofvendees and otherrelevant stakeholdersthat will enhance thecompetence of themechanism to overseeall aspects of borderhaat trade


vendees seem to be supportive of the way, the BGBacts and remain convinced that proceduresimplemented officially are transparent and devoidof political interference.

Md. Al Hasan, a vendor at the Sunamganj haatclarifies: �No, we do not have any problems assuch in participating in border haat trade. The lawsare fairly clear and we are generally law abidingand so there is no tension between the haatofficials and us.� In Kurigram, however, thevendors did draw attention to some of theproblems, which they feel need to be addressedurgently. These problems include ambiguity overthe volume of trade that is permissible on part of asingle vendee or vendor; the problem of sublettingor sharing stalls by vendors, the procedure ofdistribution of vendor cards, which is perhaps notas transparent as it should have been. However,vendors and vendees at the Chittagong haats �Kasba and Chhagalnaiya � have expressed theneed for a separate committee to look intoproblems of day-to-day management at the haats.They consider the BHMC or even the JBHMC to beuseful but for purposes of addressing long termissues. Also several vendors in Bangladesh suspectthat these existing institutions suffer from a biastowards the elite businessmen and the morepowerful vendors.

As Madhu Mia of Chhagalnaiya comments: �Weknow that the BHMC is looking after problemsrelated to trading at the haat. But this committeemeets so infrequently � how can it addressproblems and controversies that erupt on a dailybasis?� One hopes that such needs, and as theyare increasingly felt by more and more, will pavethe road to the emergence of informal institutionsalongside the existing ones.

Status of Ease of Conducting Trade atthe Border HaatThe question basically boils down to how easy it isor how simple is the procedure for a personinterested in selling goods at the border haat, toget a vendor card. The DGFT guidelines originallysuggested that local residents, living within theproximity of a radius of 5Kms from a particularborder haat, could sell items of local produce at theborder haat. It is to be remembered that some of

these stipulations have been amendedsubsequently and participants at border haattrade are no longer required to sell items that are�locally produced�. That such amendment isneither clearly understood nor enforced acrosshaats with uniformity, is another story, which wehave highlighted elsewhere. What we would liketo emphasise that the whole concept of borderhaat trade has been envisaged as a means touplift the living standards of people residing inremote areas along the Indo-Bangladesh borderby providing them with a regular, or at least anadditional means of livelihood. It is, therefore,reasonable to expect that the procedures forsecuring eligibility for participation in borderhaat trade will not be cumbersome and within thecompetence of people, whose literacy levels areusually very low.

The procedure for distribution of vendor cards onthe Indian side appears both transparent andstraight-forward. In fact, 38 out of the 40vendors interviewed confirmed that they obtainedtheir vendor cards on the basis of procedures thatwere intimated to them prior to their application.However, there is one particular vendor atSrinagar, who admitted help from a Panchayatofficial may have been instrumental to the grantof his vendorship. There is one other vendor fromSrinagar who felt that the process of distributionof vendor cards is complicated and long-drawn.We have already drawn attention to the fact thatwhen it comes to distribution of vendorship, theSrinagar haat stands out from all other Indianhaats. This is because at Srinagar, there is priorconsultation and discussion between and amonghaat officials and prospective vendors on whichbasis, the list of vendors is finally drawn up.

The procedure fordistribution of vendorcards on the Indian sideappears both transparentand straight-forward


It is, therefore, possible that some vendor will findthis process complex. It needs to be reiterated thatas we saw elsewhere, those who have the capacityto do business all year around get the vendor card.They tend to be locals who already have somestanding. If the haats are going to cater to poorerpeople too, there should be an option to allow�squatters� or �footpath vendors� into the haats eachtime, selling possibly smaller quantities of goods,every now and then. They need not have �pucca�stalls.

It also needs to be highlighted that an effort is beingmade to encourage more women participation atthe border haats. This comes out clearly from arecent alteration in the Balat BHMCs approach todistribution of vendorship. This relates to thereservation of 12 of the 25 vendorships in Balat infavour of women. One hopes that haat officials andrelevant decision making authorities will increase thescope for participation on part of more and morelocal residents, who can avail the opportunitiesthrown up by border haat trade for improving theirstandards of living.

We have seen in the case of Bangladesh and also inthe case of Kalaichar, Meghalaya that comparativelyless volume and intensity of trade stands in the wayof efficient conduct of border haat activities. We feelthat enthusiasm on part of vendors on one side ofthe border needs to be complemented by similarenthusiasm on the other side. Or else, the mismatchaffects the otherwise possible intensity and

Procedures for thesubmission ofapplications forvendorship must bestreamlined andsimplified in keepingwith the literacy levelsand inadequacies oflocal residents

increased volume of trade at the border haats,adversely. For instance, there are clearindications that vendors in Srinagar (Tripura,India) are keen to boost their trade and this iscomplemented by parallel enthusiasm on part ofvendors on the Bangladesh side. Thiscomplementarity finds expression in the jointproposal for adding another haat day to theweek, preferably Fridays for that happens to bea weekly holiday in Bangladesh.

So far as the procedure for obtaining vendorcards in Bangladesh is concerned, our datainforms that almost every one of the interviewedvendors (39 out of 40) got his vendor card onthe basis of clearly outlined and fairly straightforward procedures. However, not everyonefound the procedure involved in submittingapplications of vendorship sufficiently simple.The only lady vendor on the Bangladesh side,Mazida Begum of Kurigram, complains thatthere are decisive obstacles towards securingvendorship like lack of knowledge aboutapplication procedures and illiteracy. In her ownwords: �For people like us, who are generallyhome-bound and illiterate, finding access toborder haat trade is not an easy task. I got helpfrom the concerned authorities only when I wasable to draw their sympathy after my husband�sdeath.� A few other vendors, five fromChhagalnaiya and one from Kasba also suggestthat illiteracy and general ignorance aboutdevelopments like border haat trade deprivemany people from participating in border haattrade.

There are clearindications thatvendors in Srinagar arekeen to boost theirtrade and this iscomplemented byparallel enthusiasm onpart of vendors on theBangladesh side


Joshimuddin, a vendor at the Chhagalnaiya haatinforms: �I would have missed out on myopportunity to sell at the border haat, if I was notinformed in the nick of time and assisted by myneighbour friend to submit my application forvendorship.� One may, therefore, suggest thatalthough border haat trade has taken off in a sureway, it is still a fledgeling institution that needs tobe improved and amended in keeping withproblems and dilemmas expressed by the variouscategories of stakeholders. For instance, there is aneed for wider dissemination about border haattrading so that many who have been left out cantake recourse to this means of livelihood to raisetheir living standards. Wherever possible,procedures for the submission of applications forvendorship must be streamlined and simplified inkeeping with the literacy levels and inadequaciesof local residents.


Chapter 7 Insights on Infrastructure

The whole idea of border haattrade revolves around the notionof providing an enablingenvironment to people, whoreside in the vicinity of the Indo-Bangladesh border, to engage intrading activities betweenthemselves. This will help theresidents on the two sides of theborder to engage in a sort ofsymbiosis and improve theconditions and standards of theirliving. We have drawn attentionin an earlier section to the factthat such trade has existed for avery long time, but an attempt onthe part of the two governmentsto institutionalise such trade in aformal mechanism like theborder haat is a recentendeavour. To make suchinstitutionalisation meaningful, itis imperative that incidentalfacilities for such trade to takeplace be ensured. It is in thissense that infrastructure andinfrastructural facilities of borderhaats becomes a crucial issue forconsideration.

Key Findings� Infrastructure is largely the

responsibility of theconcerned State Government

� Some of the infrastructuralinadequacies are haatspecific

� Major infrastructuralinadequacies across the haatsinclude poor toilets,unavailability of regular anddrinking water, lack of

currency exchange boothsand absence of electricity.

� Need for a separate body tolook into infrastructuralfacilities and theirmaintenance at each haat.

We are informed that improvinginfrastructure is largely theresponsibility of the StateGovernment concerned and onehopes that with greater flourishof border haat trade and in viewof the rising demand forincreasing haat days, therespective state Governments willtake appropriate measures toboost infrastructural developmentthat will further stimulate borderhaat trade. It is to beremembered in this context, aspointed out by representatives ofthe Tripura Government that theGovernment of India allots INR2.5 crore for the purpose ofestablishing a border haat andthis does not include cost forexternal infrastructuraldevelopment like the approachroad or electrical connectivity,which is the responsibility of thestate Governments. Teethingproblems in respect offunctioning of the border haatswill be overcome by bettersynergy between central andState Governments.

In the course of our survey of thefour haats along the Tripura �Chittagong and Meghalaya �Rangpur/Sylhet sub-divisions,we have noticed some limitations

Teething problemsin respect offunctioning of theborder haats will beovercome by bettersynergy betweencentral and StateGovernments


and inadequacies which are specific to particularhaats, while there are some lacunae that traverse allthe haats. We would, therefore, like to offer acursory glance of each of the four haats about whatinfrastructural facilities are available and what areseriously lacking in each of them. This will help us tocognise what ails particular haats and what are theinfrastructural inadequacies pertaining to borderhaat trade in general.

Lahana Das, a vendee from Srinagar haatobserves: �How much of water can we carry?And when you have children with you, can youpredict the quantity of water that will be needed?Why are the haat authorities so negligent aboutbasic necessities?� Clearly, the commentcaptures a major infrastructural inadequacy ofborder haats. Several vendors have similarcomplaints about the lack of not only drinkingwater but also regular water. Related to this is

Table 7.1: Infrastructure: Srinagar (India) � Chagalnaiya (Bangladesh)

border haats

Srinagar (India) �Chagalnaiya(Bangladesh)

InfrastructuralFacilitiesToilets (General)

Toilets (Ladies)

Medical and First Aidfacilities

Availability of DrinkingWater

Availability of Water forregular use

Electricity

The approach road tothe haat

Currency exchange/banking facilities

Enclosures for vendors

Equipment forchecking/measuringgoods

Observations of the survey team

There is a toilet alright but maintenance is deplorable. Also, number oftoilets must be increased and they must be provided with running water.

There is no separate toilet for women. Several women stakeholders havepointed to the urgent need of a separate washroom for ladies.

Not available

No provision for drinking water at the haat premises. Several vendors,vendees and labourers have urged the installation of a tubewell toaddress this inadequacy.

Not available. Vendors and vendees have complained that this is aserious inadequacy of the border haat and they feel that installation ofpumping facilities will greatly facilitate all those who come to carry outtrade at the border haat.

There is only one electrical connection available in the room allotted forofficials and higher authorities to use as and when they are present at thehaat.

The approach roads to the haat from both Indian and Bangladesh sidesare in good condition making transportation of goods comfortable forvendors on both sides.

There is a currency exchange centre inside the haat premises, but unlikethe Bangladesh counter, the Indian counter remains invariably unmanned.

Enclosures for the vendors, both Indian and Bangladesh, are inreasonably good condition. Vendors however complain that in theabsence of any electrical connection, there are no fans and this becomesa serious inadequacy when temperatures rise. Vendors have alsocomplained that the tin roofs are not sufficiently extended to protect themand their goods from spray during heavy downpours.

There are no devices to facilitate the checking of goods by haat officials.Assessments about quantity or permissibility are based entirely on visualestimates.



the problem of unavailability of electrical connections,which several stakeholders have drawn attention to.As Subhashis opines: �If electricity was available,pumping sets could have addressed the problem ofunavailability of water in our toilets.� Mojibuddin, aBangladesh vendor selling electronic goods drawsattention to a pertinent problem: �So many willingvendees ultimately don�t buy because they cannot testwhether a particular electronic item is functional.� Itgoes without saying that unavailability of electricity isa serious deterrent to the flourish of border haat tradein this region.

The fact that the haat is a day-long affairobviates the need for water on part of thevarious stakeholders. Since the border haatshave just been operational in recent past,facilities like restrooms with uninterruptedwater supply, availability of drinking water etc.are non-existent. However, the haatmanagement assured that such infrastructuralinadequacies will be remedied, as border haattrade picks up momentum.

Table 7.2: Infrastructure: Kamalasagar (India) � Kasba (Bangladesh)

border haats

Kamalasagar(India) � Kasba(Bangladesh)

InfrastructuralFacilitiesToilets (General)

Toilets (Ladies)




Electricity

The approach road tothe haat



Equipment forchecking/measuringgoods

Observations of the survey team

There are two separate toilets for men and ladies and they look relativelyclean. However, people hardly use them because of unavailability of water.

Several women vendees have complained that it doesn�t make sense tohave toilets in place but have no facilities for water connections. Somehave even drawn attention to the existence of a non-functional tubewell.

Not available

No provision

No arrangements

No electricity. Although there is a room for use by officials and higherauthorities, that is always under lock and key. This is because even thisroom is without any electrical connection, and officials prefer to sit outdoor.

The approach to the haat from the Indian side needs improvement. It isundulating and vendors compliant that although motorable, the roadsurface could be smoother. The approach to the haat from theBangladesh side is in good condition, but surrounding water bodiesrender the approach narrow and motor vehicles have to stop about 200metres from the haat entrance.

No official currency exchange booth either on the Bangladesh side or onthe Indian side. Various stakeholders have been seen to indulge ininformal exchanges of currency among themselves.

Enclosures for vendors on both Indian and Bangladesh sides are in goodcondition. Some vendors are sceptical that unless there is adequatemaintenance, the present condition may deteriorate.

There are no measuring devices to facilitate the checking of goods byhaat officials. Assessments about quantity or permissibility are basedentirely on visual estimates.



In taking note of the infrastructural inadequacies,the research team was also struck by the completeabsence of any electrical connectivity in the haatpremises. There is one large room at the haatpremises bearing the caption �common room�, butfor all practical purposes, this is meant for use byhigher officials. Even this room did not have anyelectrical connection, which is why officials wereseen sitting outdoor during the time that they werepresent at the haat premises. Perhaps, the proximityof Agartala, the capital of Tripura from the haatpremises (55Kms, requiring a travel time of 1.5hours by road) enabled officials to commute to thehaat regularly for conducting business withouthaving to stay on for long durations.

The absence of official booths for currencyexchange is a serious problem. This is becausethere is no institution to implement officialexchange rates and as a result of informalexchanges, some end up losing more than theothers.

In considering the major infrastructuralinadequacies, one cannot overemphasise the lackof electricity, usable toilets and water, for bothdrinking and regular use. The condition of thetoilets is so bad partly because they weredamaged by floods and not renovated thereafter.When the haat commenced, the toilet wasequipped with an electrical connection, but the

Table 7.3: Infrastructure: Kalaichar (India) � Kurigram (Bangladesh)

border haats

Kalaichar(India) �Kurigram(Bangladesh)

Infrastructural FacilitiesToilets (General)

Toilets (Ladies)




Electricity

The approach road to thehaat



Equipment for checking/measuring goods

Observations of the survey teamWe have found the existence of separate toilets for men and women inone corner of the haat. But once again the usual problem of unavailabilityof water renders these toilets unusable. Vendors, vendees and labourersare quite vocal about this problem and they insist that officers must lookinto this inadequacy and arrange for the installation of pumping facilities.

Lady stakeholders are quite categorical that the ladies washroom isunusable. This is not so much of a problem for Indian stakeholdersbecause they reside within close proximity of the haat. But forBangladeshi stakeholders, the lack of proper and adequate toilet facilitiesis a major hindrance, particularly for women.

Not available

There is a tubewell but it is non-functional. There is no other facility fordrinking water.

Not available.

Not available.

The approaches to the haat from both the Indian and Bangladesh sidesare fraught with hazards.

No formal enclosures for currency exchange. But it seems that informalexchange of currency is smooth for a general understanding aboutprevailing exchange rates permeates all stakeholders.

The enclosures are rather low and the floors are not cemented. Duringfloods, they often get submerged and even when the water recedes, thedamage remains.

No mechanical devices are in the possession of haat officials.



floods damaged all electrical connections and theyhave remained in that dilapidated state ever since.It is surprising that stakeholders at this haat havenot raised a serious demand for installation ofelectrical connections. On probing, we found thatmost stakeholders are reconciled to the fact that thisregion is prone to natural calamities and any driveto install electrical posts and wires is bound to betemporary and short-lived.

This is a basically flood-prone region and theapproaches to the haat from both the Indian andBangladesh sides need to be looked into. Theapproach on the Indian side is located at thefoothills of the southwest Garo range in Meghalayaand the terrain is difficult. Moreover, the last 200metres of the approach to the haat is not concreteand the undulating �kachha� road makes it ratherdifficult for vehicles to reach the doorstep of the

haat. The situation seems even more grim on theBangladesh side. This is because there is anintervening river, Jhinjira on the approach to thehaat from the Bangladesh side and the bridgeacross this river is in a dilapidated conditionmaking it unsuitable for use. Under thesecircumstances, people travelling to the haat haveno option but to use small country-boats or�dinghis�. This also makes carriage of goods inlarge quantities, impossible.

Balat is noteworthy among all Indian borderhaats by the presence and participation ofwomen vendors. Not only that, we have drawnattention in previous sections to the increase ofwomen vendorship here to 12 out of 25. Underthe circumstances, women vendors here seem tohave a more audible voice and they areemphatic about introducing necessary changes

Table 7.4: Infrastructure: Balat (India) � Sunamganj (Bangladesh)

border haats

Balat (India) �Sunamganj(Bangladesh)

Infrastructural FacilitiesToilets (General)

Toilets (Ladies)




Electricity

The approach road to thehaat




Observations of the survey teamThere are separate toilets for men and women. But in view of theunavailability of water, stakeholders insist that pumping facilities must beinstalled for enabling people to use them.

Lady stakeholders observe that women�s needs are rarely considered bysociety as such and when it comes to toilets there is no exception.

Not available

There is no facility for drinking water.

Not available.

There is only one electrical connection available in the room allotted forofficials and higher authorities to use as and when they are present atthe haat.

The approaches to the haat from both the Indian and Bangladesh sidesare generally alright. However, on the Indian side, there is a particularundulation which becomes problematic for Indian vendors duringmonsoons and the flooding that is caused.

Formal enclosures for currency exchange are visible but they areinvariably unmanned on the Indian side. Hence, the problems associatedwith lack of formal exchange procedures are in evidence.

Lack of adequate maintenance.

No mechanical devices are in possession of the haat officials.



in keeping with women�s needs. These includeprovisions for separate queues for womenvendors, adequate washroom facilities for womenand even a separate resting place for womenwhere women can attend to personal needs likefeeding their babies.

It needs to be mentioned that although enclosuresfor vendors at the haat are adequate in number,their maintenance and upkeep have not beensufficient. There are clear signs of wearing and thetin roofs are also rusty. A good five years havepassed since the inception of the haat and it isevident that there has been no sustained effort atregular maintenance of the various structureswithin the haat premises.

Status of Various PhysicalInfrastructures at the Border HaatWhen we look at border haats across Tripura-Chittagong and Meghalaya-Rangpur/Sylhet sub-divisions of the two countries from the point ofview of infrastructure, some key problems surfacewithout doubt:a. Toilet facilities: It is to be borne in mind that

generally all border haats open around 9 amand continues till 5 pm. In view of the longhours of business that vendors and otherstakeholders may have to carry themselvesthrough, one can hardly exaggerate the needfor adequate washroom facilities. All theborder haats fair rather poorly, if notmiserably, on this count.

Table 7.5: Infrastructure: At a glance


border haats(Infrastructure facilities)

Vending platforms

Approach Road


Toilet General

Ladies

Water Drinking

Regular use

Electricity

Medical and First Aid


Srinagar-Chagalnaiya

Raised and cemented;reasonably goodcondition

Overall in good shape

Available- Indian counterremains unmanned

Deplorable maintenance,no running water

No separate womentoilet

No provision

Not available- a seriousinadequacy

Only one electricalconnection in the roomassigned for the haatofficials

Not available

No devices to facilitate

Kamalasagar-Kasba

Raised and cemented;very good condition

Needs improvement-India: undulating androughBangladesh: narrow(last 200 mts)

No official currencyexchange

Separate toilets formen and ladies-relatively clean-unused due tounavailability of water

No provisions

No arrangements

No electricity

Not available

No measuring device

Balat-Sunamganj

Cemented but notraised from ground

Generally alright:In India- particularundulation becomesproblematic duringmonsoons

Formal enclosures-visible; unmanned onthe Indian side

Separate toilets: nopumping facilities =unavailability of water

No facility for drinkingwater

Not available

In one room assignedfor higher authoritiesand officials

Not available

No mechanical device inpossession

Kalaichar-Kurigram

Low with non-cementedfloors; during floods,often get submerged

For both sides: fraughtwith hazards

No formal enclosuresfor currency exchange

Separate toilets in onecorner of the haatpremise- hardly useddue to water andelectricity inadequacy

Tubewell- non functional

Not available

Not available

Not available

No devices to facilitate


b. Related to this, is the problem of unavailabilityof regular and particularly drinking water. It isan unnecessary burden for vendors to carrywater and such necessities to the haatalongside their usual load of goods.

c. It is worrisome that a forum, which involves theday long participation of several people, men,women and children, and many of them travelsseveral kilometres from their homes, has noprovision for medical and first-aid facilities.

d. The border haat is an initiative to make formaltrade a more attactive option among theinformal vendors in the borders of twoneighbouring countries. A fully operationalcurrency exchange platform, should beessential and inevitable component to ensurethe success of all such cross-border initiatives.However, the operation of currency exchangemechanism at the border haat has beensuboptimal and leaves a vast room forimprovement.

e. The absence of electricity and electricalconnectivity simultaneously hinders smoothtransaction of business at the border haats:vendors and labourers have to toil inside haatenclosures without fans, toilets operate withoutlights and pumping facilities and office roomsare rendered unusable.

In considering infrastructural inadequacies ofborder haats, it needs to be highlighted that thetopography of the land in Meghalaya � Rangpur/Sylhet region is rough and generally the terrain ishilly on the Indian side. The border haats inMeghalaya are located at the base of thesouthwest Garo hills and the East Khasi hills, andduring prolonged monsoons water gathers atthese places and drainage is not easy. This putsthe border haats of Kalaichar � Kurigram andBalat � Sunamgunj at a disadvantage. Thesegeographical peculiarities and climatic hazardshave also to be borne in mind while drawing upplans for infrastructural improvement of the borderhaats in this region.

RecommendationsIn view of the above highlighted problems, wewould like to reiterate the following policyrecommendations:a. Approach roads to particular haats need to

be paved or repaired. This is true for theKalaichar border haat. Similarly in Kurigram,Bangladesh, there is no bridge on the riverthat runs in between the haat premises andthe local neighbourhood. There was amakeshift bamboo bridge earlier, but it wasravaged by the floods in 2014. Moregenerally, if the quality of the approach roadsto all the border haats is improved, it willdefinitely boost greater participation andbusiness at the haat.

b. Electricity supply is vital, so that, among otherthings, availability of water can be ensured inthe restrooms, as well as for drinkingpurposes. However, the haats being locatedon the zero line, it might be difficult to ensuresupply of electricity through power-grids dueto legal complications and problems ofpilferage. Off-grid solutions like solar powercould be explored to this end.

c. The restroom and sanitary facilities at thehaats, though present, is unsanitary andunhygienic, due to poor maintanence. Therecommendation of the Joint border haatManagement Committee, to entrust themaintenance of toilets with Indian andBangladeshi personnel alternately, eachmaintaining for three months at a time, hasnot been fully implemented at the local haatlevel.

d. Families from both side of the border arecoming to the haats, to shop as well as meettheir respective acquaintances and familiesacross the border. This is a positive exampleof how the haats are functioning as platformsfor trust building and aiding people-to-peopleconnect. To facilitate the same, it may be agood idea to build rooms/spaces where thesefamilies can meet, rest and talk. This isparticularly beneficial for the children andelderly who are part of such family meetings.


e. In some of the haats (Kalaichar and Balat, theones that were constructed earlier during 2011-12) the stalls are not elevated from the groundand the floor of the haat is not paved. Thisposes a lot of difficulties during inclementweather, particularly during monsoon months.This has resulted in vendor behaviour changingin Kalaichar haat, where they prefer not todisplay their products. Instead they keep thempacked in sacks or boxes and show samples totheir prospective vendees. This practice isreported to be problematic by the securityagencies since they face vendors, who arereluctant to open their packed products. Thismakes the checking procedure more labouriousand time consuming. Such problems are notseen in the newer haats of Tripura, whereenclosures are more in keeping with the needsof the vendors. Hence, enclosures will need tobe revamped and renovated, whereverrequired.

f. Currency exchange counters are notoperational in all haats. Governments ofboth the countries must enforce and ensurenot only the installation of foreign exchangebooths within the haat premises but alsotheir regular functionality by appointedofficials.

g. Perhaps, one could think of a separate bodyto look into infrastructure and itsmaintenance for each of the haats ratherthan entrusting this responsibility on haatofficials who are supposed to manage andadminister affairs pertaining to conduct ofday-to-day business at the haat.


The MoU signed in 2010, on thebasis of which the Governmentsof India and Bangladesh hadestablished border haats,provided that these haats wouldbe so established on a �pilot�basis. Our study concludes thatthe positive impacts of the borderhaats is perceptible in terms ofincome generation and elevationof the living standards of thepeople and have contributed toborder area development. Theyhave also promoted people � to� people connectivity, andboosted cross-border confidencebuilding and goodwill. The casein favour of replication and up-scaling of border haats is therebyestablished.

Key Findings� border haats are fora that

enable people from bothIndia and Bangladesh,residing close to the border,to engage with one anotherat a personal level in thecourse of their businessdealings

� border haats have contributedto border area development �certain areas have witnessedimprovement in the quality ofroads leading up to the Haat

� border haats have contributedto the lowering of informaltrade in the region

� border haats have alsopromoted people � to �people connectivity, and

boosted cross-borderconfidence building andgoodwill

� Government officials andrepresentatives in both thecountries are favourablydisposed towards increasingthe number of border haatsalong the Indo-Bangladeshborder

Impact of the BorderHaat on People � to �People ConnectivityThe northeastern states of Indiaand Bangladesh are naturalneighbours. The absence of anykind of fencing along the borderbetween the two countriesfacilitated communication andtrade between these people formany years. Spurred by feltneeds, people residing in theseregions have indulged in mutualexchange of goods andcommodities for as long as theycan remember. Such co-existence has cementedrelationships and strengthenedbonds, which may have fadedbut have not been forgotten.Our survey team capturedseveral stories of such bondingsand friendships that have not gotobliterated by the erection offences. There are movinginstances of person�to�personconnect that our survey teamcame across at the border haats.

Chapter 8 Positive Outcomes

Positive impacts ofthe border haats isperceptible in termsof incomegeneration andelevation of theliving standards ofthe people and havecontributed toborder areadevelopment


Md. Mosibur Mia from Kasba, Feni,Bangladesh comes to the haat with theadditional incentive of meeting up withSwapan Debnath. Their association goesback to the time of the Bangladesh war ofliberation of 1971 when Mosibur Mia�s fathersought refuge with his friend across theborder, the father of Swapan Debnath. Nonarrow thoughts like caste or class, religionor language could dampen the spirit andstrength, with which such friendships tookroot. Both Mosibur and Swapan look uponthe border haat not just as a forum forearning some economic gains but as a God-sent opportunity for rekindling friendshipsand bonds that were meant to stay.

Mitali was a young girl residing in that partof the territory, which today falls inBangladesh. When she was married off, 15years ago, she moved over to her in-lawsliving in the neighbouring area, which isIndian territory. When the fence came upalong the Indo-Bangladesh border and theborder was no longer porous, therequirement of passports and visas stood inthe way of Mitali�s visits to her parental homeand family. The Srinagar � Chhagalnaiyaborder haat offered the two families anopportunity to reconnect after almost twodecades. Our research team capturedmoving images of mother and daughterembracing with tears of joy, their familiesunable to contain their emotions andoutbursts on re-connecting after so long. Itwas evident that the border haat was not justa forum where new relationships emergebetween neighbouring communities, but alsoone where old ties and bonds, temporarilysubmerged by the tides of time, would berejuvenated and get a new lease of life.

33 out of 40 vendors from the Indian side affirmthat the commencement of the border haat hasenabled them to make friends with people coming tothe haat from across the border. Acquaintanceshave blossomed into friendships and severalstakeholders from both sides of the border come to

the haat not just to do business but also tosocialise and engage with one another in apersonal capacity. Many of the vendors andvendees with whom we interacted, relatedindividual cases of such friendship and intimacy.Carrying gifts for one another on festiveoccasions alongside sharing delicacies cooked intheir homes is a regular feature.

As the Hon�ble MP from Chhagalnaiya,Bangladesh, Shirin Akhtar, observed, thisexchange that border haats facilitate at the locallevels, not just of goods and commodities but ofhearts and sentiments is a sure way of improvingrelationships between the two countries andsomething that Governments can hardly achievethrough formal treaties and diplomaticnegotiations. She looks upon border haats as�centres for nurturing relationships� such thatdifferences in religion among people living sideby side get dissolved and they are able to co-exist in amity and goodwill. Indeed, border haattrade is a sure way of enabling people from thetwo countries to engage with one another at apersonal level in the course of their business andtrading activities. Such engagement allows themto open up to one another and cast off mutualmisgivings and apprehensions. Our researchteam felt prudent to draw this inference from themany stories of friendship and sharing thatpeople from both sides of the border related incourse of our interactions with them at the borderhaats.

However, cases of bonding and friendshipbetween people from the two countries are tosome extent haat/region specific. We havewitnessed a higher degree of intimacy andcomradeship between the two communities in theTripura haats (Srinagar-Chhagalnaiya andKamalasagar-Kasba). One wonders whether thisis because people living on the two sides of theborder in this region speak Bengali even thoughthe dialects are not entirely similar. Languageseems to become a barrier to such intimatebondages in case of the Meghalaya-Rangur/Sylhet haats, where some Bengali-speakingstakeholders are available from the Indian sidealright, but where the tribal folks also exist andthey are more comfortable with their local tribaldialect. The positive opinions about people from


Bangladesh expressed by more number of vendeesand vendors in Meghalaya compared to those inTripura can be explained by the fact thatstakeholders in Meghalaya have had more years toget to know the people on the other side. Even iflanguage stands in the way of a greater degree ofintimacy (as referred to in the previous paragraph),it does not seriously hamper regular professionalrelations at the haat.

When we tabulate the data on the responses of theIndian stakeholders about their perceptionsregarding people on the other side, we find that themajority of the stakeholders, primarily vendors andvendees, have a positive disposition to people fromthe other side of the border. The transportershowever, by and large, seem to displayindifference, which is understandable given thatthey don�t get as much contact time with peoplefrom the other side since they don�t necessarily evenenter the haats.

Keeping in mind that majority of the stakeholderson the Indian side have a positive dispositiontowards people from the other side of the border,our research team was interested in probingwhether the haat experience has been instrumentalin fostering such a positive disposition. Whenasked, 17 out of 40 vendors across Tripura andMeghalaya claimed that they had similar positiveperceptions even before their engagement in borderhaat trade. However, 23 others claimed that theirinteractions with people across the border at the

haat encouraged them to nurture betterperceptions about the people from Bangladesh.This latter perception on the part of the majorityseems to indicate that engagement with borderhaats have contributed towards positiveperceptions on part of Indian stakeholders aboutthe people from Bangladesh. It is not only aquestion of positive perceptions, but our data alsoreveal that 16 out of 20 vendors in Meghalayaand 17 out of 20 vendors in Tripura have struckchords of friendships with people from the otherside of the border. Indeed, border haat trade hasstrengthened perceptions as well as people-to-people connect on part of Indian stakeholders vis-à-vis participants at the haat from across theborder.

The data on perceptions about Indians on the partof stakeholders in Bangladesh reveal a similarpicture of positive disposition. This re-affirms whatwe gathered from the Indian stakeholders. Themutual accord and favourable disposition thatboth communities harbour may predate theemergence of haats along the Indo-Bangladeshborder, but they have definitely been strengthenedand augmented by their engagement with eachother in border haat trade.

On the question whether business relationsemerging at the border haats are getting extendedoutside the haat, 33 out of 40 vendors on theIndian side and 36 out of 40 vendors on theBangladesh side observed that there has been no

Table 8.1 Perceptions of Indian stakeholders about people from BangladeshStakeholders (no. of respondents)/ Known Nice Indifferent Okay Not much DislikePerceptions from before contact

Tripura haats Vendors (20) 2 2 1 15 0 0

Vendees (30) 3 7 6 13 0 1

Transporters (6) 0 0 0 4 2 0

Labourers (10) 1 4 5 0 0 0

Meghalaya haats Vendors (20) 7 13 0 0 0 0

Vendees (30) 1 25 2 0 0 2

Transporters (6) 0 0 0 5 1 0

Labourers (10) 0 4 6 0 0 0

Source: Compiled from the field survey


such extension. Their business dealings have tillnow remained confined to the haat premises.However, six vendors in India and four vendors inBangladesh commented that although they engagein business at the haats, their relationships haveprogressed to more intimate terms of friendship.

Enamul Haque, Economist from Bangladesh opinesthat border haat trade should be looked at from thebroader perspective of Indo-Bangladesh relations,not simply as an economic institution, for it has asmuch political and social implications as it haseconomic content. In that sense, the border haatscould well be likened to some kind of a stethoscopein the hands of the Governments for feeling thepulse of ground realities and for gauging what ishappening at the border.

Impact of the Border Haat on LocalPhysical Infrastructure andConnectivityEstablishment of border haats must be paralleled bycertain infrastructural facilities for trading to flourishat the haat. We have highlighted various issuespertaining to infrastructure, whatever is availableand what is ailing or inadequate in the sectiondealing with infrastructure. However, in consideringpositive externalities of border haat trade, one mustacknowledge that certain haats have witnessed animprovement in the quality of roads and availabilityof public transport leading up to the haat. Forexample, in Balat, Meghalaya, the approach roadto the haat, which was previously unpaved, has

been presently cemented and this has greatlyfacilitated vendors carrying loads of goods.Similarly, a by-lane connecting the arterialapproach to the Srinagar haat has beenrevamped and cemented.

As yet, border haat trade has not resulted in theestablishment of any bank, either on the Indianside or on the Bangladesh side of the border. Thebanks that exist in the concerned regions predatethe establishment of the border haats.

Importance of the Border Haat inpresence of Alternate Formal TradeChannelsLet us begin by reminding ourselves of the case ofthe Kalaichar haat in Meghalaya. Before thishaat came into operation, informal tradebetween people on the two sides of the bordertook place at Mankachar, which is situated at adistance of 15-20 Kms from Kalaichar village.The commodities, which were usually tradedthrough this channel included sugar, salt, cereals,fruits and other consumer items. The volume oftrade that used to take place through this channelhas got substantially reduced with the installationof the haat at Kalaichar. The fact that opening upof formal channels of trade will correspondinglyreduce the scope of informal trade seems to beclearly suggested by the case of Dalu, wheretrade continues to flourish through informalmechanisms because there is no such borderhaat located nearby.

Table 8.2 Perceptions of Bangladesh stakeholders about people from IndiaStakeholders (no. of respondents)/ Known Nice Indifferent Okay Not much DislikePerceptions from before contact

Chittagong haats Vendors (20) 0 19 0 0 1 0

Vendees (30) 0 30 0 0 0 0

Transporters (6) 0 2 1 0 0 0; NA (3)

Labourers (6) 0 6 0 0 0 0

Rangpur- Vendors (20) 0 18 2 0 0 0Sylhet haats Vendees (30) 0 27 1 1 1 0

Transporters (6) 0 3 0 0 0 0; NA (3)

Labourers (6) 0 6 0 0 0 0

Source: Compiled from the field survey


Of the 40 vendors interviewed on the Indian side,35 were favourably disposed to the establishmentof border haats, instead of a formal trade point.They have offered various justifications in supportof their stance:a. There was an overall sense that they lacked the

capacity to trade formally, especially because itwould require a much bigger investment ofcapital. They felt �for marginalised vendors likeus�, the border haats where �a much betteroption�.

b. Establishment of other formal channels mightrequire them to pay revenue, which woulddiminish the amount of profit that these vendorscould reap.

c. Border haats will also bring aboutinfrastructural development by way ofimproved roads, better transport facilities andpossibly electrical connectivity.

d. Vendors were also hopeful that border haatswould in the long run lead to the establishmentof banking centres, which will help them totransact money locally.

e. The institutionalisation of formal channels oftrade would require a wider scale ofinfrastructural and other arrangements.

The vendors who seem favourably disposed toborder haat trade have been found to earn anaverage monthly income of INR14,413, whilethose who seem to have no problems with theinstitutionalisation of other formal channels oftrade have an average monthly income ofINR16,580. This perhaps indicates that those whoearn more are in a position to pay taxes or duties,which formal trade may entail. By contrast, themarginalised sections and relatively low incomeearning vendors are reluctant to diminish theirincome and, therefore, are more favourablydisposed to border haat trade where taxes andduties are not required.

The north eastern states of India and Bangladeshhave co-existed as natural neighbours andcommunities inhabiting these regions have tradedfreely between themselves in the past. Thisrelationship was suppressed by politicalboundaries and the institutionalisation of borderhaat trade signifies the revival of the earlierrelationship. Local people need these delinkedmarkets or fora for trade. If the natural

propensities for trade among these local peopleare disallowed, people in the border areas willresort to other means. BSF personnel have alsoconfirmed that in the absence of border haats,people will take recourse to such means assmuggling to carry on their exchange not only offorbidden items but also of consumer necessities.

K N Syiem, a local chieftain at Balat, Meghalayaand also a member of the border haatmanagement committee there, informs that tradebetween people inhabiting these regions hasflourished over a long period. Close toCherrapunji, he refers to the existence of a�Golden Haat�, through which large quantities oforanges were transported to Bangladesh. Theestablishment of border haats in recent timescomes as a re-affirmation of the need to facilitatelocal people to indulge in regular trade. This isimperative because most of these hill-folks,almost 90 per cent, are dependent on agricultureand need to sell agricultural products and forestproduce in order to promote their livelihoodstandards. Closure of mines in Meghalaya hasprecipitated problems of unemployment andpeople have found the border haats to be ablessing that enables them to address theirlivelihood concerns.

We have already drawn attention to the fact thatunlike in the case of Indian vendors, forBangladeshi vendors, border haat trade operatesas a supplementary source of income, given thattheir non-haat income is greater than what theyearn at the border haats. We have, therefore,kept both the haat income and the non-haatincome of Bangladesh vendors in mind whileconsidering their responses to the question onwhether they are keen on institutionalisation ofother formal channels of trade. The border haatincome of all the 40 vendors interviewed on theBangladesh side is similar, ranging from BDT6,663 (US$79) to BDT 6,680 (US$80). Thedifference among them becomes conspicuous inrespect of their non-haat income. The 12 vendorswho have a greater non-haat income of BDT16,583 (US$197) are the ones who arefavourably disposed to the institutionalisation ofother formal channels of trade while those whohave a less non-haat income, i.e. BDT12,992(US$155) are keen on continuance and


furtherance of border haat trade in preference ofother formal channels. It is evident that those whoare lagging in terms of their non-haat income arekeen on furtherance of border haat trade, whichgives them an opportunity to earn profits withoutfacing the burden of taxes and duties. While thosevendors who are better off in respect of their non-haat incomes are keen on institutionalisation ofother formal channels, which they feel will givethem a wider platform to carry on their cross-border trade.

Initiatives by Governments onImproving the Border HaatMechanismIndia shares with Bangladesh 4,100 Kms ofborder and there is thus immense potential fortapping trade relations. In fact, Bangladesh isIndia�s biggest trade partner in South Asia; andranks 26th among all of Indian trading partners.The governments of the two countries had initiatedthe idea of border haats along the Indo-Bangladesh border with the objective of helpingpeople living in border areas to market their localproduce and also as a confidence-buildingmeasure among the citizens of the two countries.The commodities were, therefore, specified, butthe governments are flexible with regard to theexpansion of the list of items.

On the whole, the experience of the existing haats� in Tripura-Chittagong and Meghalaya-Rangpur/Sylhet regions � has been positive. This hasprompted both the governments to move towardsrevision of the old Memorandum of Understanding.Six more haats have been approved by theGovernments of India and Bangladesh along theinternational border (two in Tripura and four inMeghalaya). The locations of these new haats havebeen identified. Following the success of these newhaats, a more ambitious revision of the MoU isintended, in the hope of building many more haatsalong this long border.33

It is in the knowledge of both the Governmentsthat products other than those identified in theoriginal list of items contained in the firstMemorandum of Understanding have beentransacted at the existing border haats. The IndianGovernment puts a premium on the non-income

benefits that are going to accrue to the localcommunities through such initiatives, especiallycross-border confidence building and goodwill,and that is why it is categorical that the borderhaat should not be looked upon as a forum forduty free trade between the two countries. Theexisting regulations regarding border haat traderequire both vendees and vendors to residewithin the proximity of 5 Kms radius from theborder haat. The Government is apprehensiveabout increasing this distance for that might resultin trade meant to flourish through land customs toflow through border haats.

Representatives of the Bangladesh Governmentare keen on building upon the experiences of thefour border haats that have been established.They feel that the validity of the MoU between thetwo countries could be extended to five years withprovisions for auto renewal. To broaden thescope of border haat trade they also feel that thecap on the purchasing limit should be moved upto US$200. These suggestions on auto-renewal ofthe MoU after every five years as well asincreasing the purchase value limit equivalent toUS$200 has been implemented with the MoUsigned on 8 April, 2017. They also observe thatthere is potential for establishing border haats atnumerous points along the border between

Representatives of theBangladeshGovernment are keenon building upon theexperiences of the fourBoder Haats that havebeen established. Theyfeel that the validity ofthe MoU between thetwo countries could beextended to five yearswith provisions for autorenewal


Tripura � Chittagong and Meghalaya � Rangpur/Sylhet. In fact, they contend that opening ofborders in the form of border haats is a wonderfulway to integrate communities who have beenresiding in these regions. Although the firstproposal for border haats was put forward asearly as 2002, the idea was implemented afteralmost a decade.

Despite field visits prior to the establishment of thehaats and despite taking detailed notes on whatneeds to be done, so much remains to beaddressed even after the establishments of theborder haats. Although a nodal role in haatmanagement is played by the JBHMC, there is alack of sufficient communication between theBangladesh and the Indian sides. Enamul Haque,an economist from Bangladesh, opines that localresidents in the region are definitely benefitingfrom border haat trade, as evident from theincreasing demand for expansion of border haats.The border haats have addressed the issues ofimprovement/growth in the living standards of the

people and women participation. However,infrastructural issues need to be looked into inorder to provide a more enabling environment forborder haat trade to flourish. Governments of thetwo countries need to address some of theregulatory differences. As he succinctly puts it:�Smuggling invariably happens when twocountries have widely divergent regulatoryframeworks.�

Both Governments seem convinced that theborder haats are extremely significant forenhancing people � to � people connectivityamong residents along the border regions.Infused with a healthy dose of optimism, on thebasis of the experience of the existing haats,Governments of both the countries are movingtowards a new Memorandum of Understandingthat will include inter alias provisions for thespeedy implementation of the original plan ofestablishing 10 border haats between the twocountries.


Chapter 9 Conclusion and PolicyRecommendations

One of the problemsencountered in the study ofinformal cross-border trade is thedearth of reliable statistics. Thefact that a substantial volume ofinformal trade is carried outthrough border routes betweenIndia and Bangladesh is commonknowledge. Most estimatessuggest that the value of goodsillegally or informally tradedacross the Indo-Bangladeshborder is almost equal to thevalue of official trade betweenthe two countries. According tothe World Bank�s BangladeshDevelopment Series, Paper No.13, bootleg informal tradeaccounted for a whopping 41per cent (US$237mn) of totalimports of Bangladesh from India(US$580mn) through land routesin 2003.34

One of the main reasons behindsuch informal trade is the hightariff and non-tariff barriers onimports. Undue paperwork,customs formalities, requirementslike testing and certification resultin delays and clearance ofconsignments from border posts.To bypass such hazards, vendorsoften find it convenient to takerecourse to informal practicesand illegal routes. Currentliterature35 on the subjectsuggests four motivations behindsuch informal trade: quickrealisation of payments, absenceof paper work, absence ofprocedural delays and lowertransportation cost.

Trade is a natural propensityamong people residing ingeographically contiguous areas.People residing on the two sidesof the Indo-Bangladesh borderhave been trading with eachother since history. Politicalinterventions and fencesdisrupted such trading andprecipitated two categories ofinformal trading. One is called�bootleg smuggling� and theother one is �technicalsmuggling�. The local peopleusually involved in transportingsmall quantities of goods viaheadloads or bicycle rickshawsfall in the first category. On theother hand when the tradehappens in large quantitiesthrough trucks by formalchannels with customs and otherofficials indulging in illegalpractices such as under-invoicing, misclassification andbribery, it is called technicalsmuggling (World Bank 2013).

Both kinds of smuggling havepersisted along the border andthey continue to persist. In thiscontext, the Governments of bothIndia and Bangladesh recognisedthat initiatives such as borderhaats can go a long way ininstitutionalising such informaltrade activities while reducing thescope of illegal trade.

According to the security forcesof India and Bangladeshguarding their respectiveborders, these haats could play a


crucial role in minimising illegal trade and smuggling andthus help in better managing the border. Thus, the BSF hassent a proposal to the Ministry of Home Affairs to set up 60more haats on the eastern border to help people from bothsides to trade. Out of the 60 border haats, 22 have beenproposed to be set up in Meghalaya, 32 in West Bengal,four in Tripura and two in Assam (Chatterji 2015).36 Table9.1 shows currently functioning and some proposed borderhaats by the State Government on Indo-Bangladesh border.

Border haats have a fixed day of functioning, usually oncea week, while vendors may engage themselves in othereconomic and social activities on non-haat days. Sinceseveral categories of stakeholders have benefitted fromborder haats, there have been demands on part of vendorsand vendees to increase Haat days in some of the Haats.

The volume of trade at the existing border haats has alsoincreased; locally manufactured commodities apart,vendors are also seen to trade in commodities produced inother parts of both the countries. It is evident that borderhaats have gone a long way in addressing the basic

Not provided by theState Government

Table 9.1: List of some functional and proposed border haats on India-Bangladesh borderborder haat District in India Location in Bangladesh Status

MeghalayaKalaichar West Garo Hills Baliamari

FunctionalBalat East Khasi Hills Dolora

MizoramMarpara Mamit Longkor

Sillsury Lunglei Mahmuam Suggested by State GovernmentTuipuibari Mamit Not proposed

Nunsuri Lunglei Not proposed

TripuraKamalasagar West Tripura Brahmanbarhia Functional

Boxanagar West TripuraNot provided by the Suggested by State GovernmentState GovernmentBamutia West Tripura

Srinagar South Tripura Purba Madhugram Functional

Ekimpur South Tripura

Suggested by State GovernmentPal Basti (Raghna) North Tripura

Hiracherra (Kailasahar) North Tripura

Kamalpur Dhalai

Source: Ministry of development of north eastern region, Government of India

The volume of trade atthe existing border haatshas also increased;locally manufacturedcommodities apart,vendors are also seen totrade in commoditiesproduced in other partsof both the countries. It isevident that border haatshave gone a long way inaddressing the basicobjective, with whichthey were envisaged.


objective, with which they were envisaged:improvement of living standards of people residingin remote interiors of the two countries along theIndo-Bangladesh border. Local people are able toget the necessary things and amenities at low pricesand vendors from other parts are able to interactwith people residing near the border.

Impact on Livelihoodborder haats have directly impacted incomegeneration for all the participating stakeholders(especially vendors) by giving rise to new/additionalopportunities of work in the remote border areas.

A win-win situation for all stakeholdersThe haats have generated additional economicavenues for local vendors and created newopportunities for some local farmers to sell theirproduce directly, local women to earn additionalincome by either selling local produce (fruits andother natural products) or working as labourers inthe haats. It has helped local transporters toenhance their fleets and days of operation in thehaat areas and created additional income avenuesfor villagers as helpers/staff/labourers for haatvendors.

Border haat income contributes 73 per cent of theaverage monthly income of the Indian vendors and

32 percent of the average monthly income ofBangladeshi vendors. This is primarily because ofthe better quality and variety of India goods, forwhich there is a high demand. In fact, most of theIndian haats experience wholesaling of spices(mainly Jeera), branded cosmetics and baby foodand health drinks like Horlicks to vendees fromBangladesh. While the average non-haat incomeof India (for all four haat locations) is INR5,405(US$77) per month, Bangladesh averagesINR11,725 (BDT14,070/US$168). It is clear thaton the whole, non-haat income of Bangladeshivendors is much higher than that of the Indianvendors. On the Indian side, Tripura haats haveexperienced a higher magnitude of averageborder haat income for the vendors, whose non-haat income constitutes only 19 per cent(Srinagar) and 28 per cent (Kamalasagar) of thetotal monthly income. This may be attributed tobetter infrastructure (in contrast to the Meghalayahaats, here the vending platforms are cementedand wider and allow a greater display of goods)at the more recently established Tripura haatsand to the high demand for Indian goods on theBangladesh side.

Several vendors have commented that borderhaats accommodate the small and the relativelypoor vendors who are circumstantially not in aposition to compete with big vendors in other

Indiaborder haat locations Average Income (INR per month) Haat income as a % of(India-Bangladesh) Haat days (4 per month) Non-haat days (20-26 per month) total monthly income

Srinagar 1,220 2,180 36

Kamalasagar 1,300 3,070 30

Kalaichar 3,060 6,900 31

Balat 1,260 2,240 36

Average 1,710 3,598 33Bangladesh

Chagalnaiya 964 5,248 16

Kasba 658 2,695 20

Kurigram 1,589 4,326 27

Sunamganj 1,362 5,389 20

Average 1,143 4,412 21

Table 9.2: Income of Labourers


formal channels and many added that they wouldprefer to trade through the haats even if otherformal trading channels emerge. Such preference isalso because many find the haats to be a forum notjust for trade but also for meeting up with oneanother.

Haat trade has also been influenced by factors likeaccess to state capitals or nearby towns from haatlocalities. For example: vendees may find it moreconvenient to procure consumer items and othernecessities from the haat instead of having to travelto nearby towns situated several kilometres away.

Border haats have significantly contributed to themonthly income of the labourers. In fact, theincome that a labourer earns from a day�s work atthe haat is approximately equal to the amount heearns from other avenues over the rest of the week.Women from nearby villages of Balat (India) likePyndenkseh, Brithausaw and Lithamsaw are oftenkeen to make some extra income once they arethrough with their domestic chores. Linsda, awoman resident of Dangar, opines: �The haatallows us the opportunity for some extra income,which is welcome and handy given our generallyimpoverished condition.� The labourer incomeswere found to be particularly high at the Kalaichar-Kurigram haat. This was because the approachroads on both sides of the haat for the last stretch is

�kaccha� and labourers are required to carry thegoods on their head or use hand-carts, resulting inhigher rates.

On the whole, the magnitude of income fortransporters from border haat trade is greater onthe Indian side, owing to the larger demand forworkforce necessitated by a much larger volume ofgoods that need to be transported for trade at theborder haat. Transporters, therefore, are amongthe major stakeholders of border haat trade.

Keenness to re-invest border haat incomeby Vendors:Some of the �vendors� in India seem to be keen onre-investing their earning from the haats to furtherenhance their business in the haats. Subhasis, avendor trading in cosmetics comments that:�Bangladeshi people have a great fancy for Indiancosmetics and I am making better business withIndian cosmetics at the haat than in my ownlocality.� By contrast, there seems to be a lack ofsufficient incentive and enthusiasm on part ofvendors in Bangladesh to participate in borderhaats as vendors, probably due to the lowerreturns when compared to the Indian side. Thelower returns can arguably be attributed todemand-supply mismatches. For example, fish andpoultry, which are high in demand on the Indianside are mostly not allowed to be traded because

Indiaborder haat locations Average Income (INR per month) Percentage increase(India-Bangladesh) Before commencement of haat After commencement of haat

Srinagar 533 783 47

Kamalasagar 483 900 86

Kalaichar 317 1,133 257

Balat 300 717 139

Average 408 883 130Bangladesh

Chagalnaiya 433 (361 BDT) 700 (583 BDT) 62

Kasba 400 (334 BDT) 567 (472 BDT) 42

Kurigram 250 (208 BDT) 433 (361 BDT) 73

Sunamganj 270 (225 BDT) 593 (494 BDT) 119

Average 270 488 96

Table 9.3: Income of Transporters


of SPS-related concerns. Also in many cases theBangladeshi vendee is economically better off thanthe Indian vendee, owing to the location-specificeconomic scenarios. It is for these reasons that re-investment of border haat profit for expansion ofborder haat business is not a serious considerationfor the Bangladeshi vendors.

Since poverty alleviation is a major concern ofgovernments and because the study confirms thatthere is no correlation between formal educationand success stories at border haat trade, morepeople living in the remote areas can beencouraged to participate in border haat trade.The government can contemplate supportivemeasures and institutions to build their capacity toparticipate in such trade meaningfully.

Correlation between primary income typeand haat success:From the primary set of interviewed vendors, 29out of 40 are local vendors in India and 31 out of40 in Bangladesh. Their border haat investmentfigures reveal that local vendors in India invest themost in the border haats, on an average INR1.55lakh (US$2,214) per month for four haat days.Participants at border haat trade inform us thatthey have managed this capital from their savings,family assets while some others have procuredloans from friends and relatives. Agriculturists haveinvested around INR1.64 lakh (US$2,343) permonth, but with larger profit margins. There is noappreciable difference in the amount of investmenton the part of Indian agriculturists and localvendors. However, the profit margins reaped by thelocal vendors are less than that of the agriculturists.

This is because there is always a demand for goodquality agricultural goods like seasonal fruits andvegetables, a superior quality of betel nuts andhome-grown spices.

Items of trade at border haatsWhat is to be traded?The MoU between India and Bangladeshgovernments and subsequently Director General ofForeign Trade (DGFT), India and Foreign TradeAuthority (FTA), Bangladesh notifies list of items,which can be traded at the border haats. Thecustoms officials operating at local levels supervisewhether vendors are complying with the list. Thispractice was initiated when the border haats firstcommenced and remained in vogue. The originallist of items prepared by the DGFT has beensubsequently amended a number of times.

Changes in the list of items andother stipulations for border haatregulationOn the basis of the MOU between India andBangladesh signed in 2010, the DGFT Indiastipulated the major rules and regulationsgoverning border haat trade in India. These rulesand subsequent amendments are highlightedchronologically in the following table:

There is asymmetry of information among thevendors regarding the list of items permitted forsale at the haats. This is not only becauseamended lists do not reach the vendors in time,

India BangladeshVendors/Primary Average BH Average BH Average BH Average BHjob types investment Profit per investment Profit

per month month per month per month(in INR) (in INR) (in INR) (in INR)

Agriculture 1,38,222 17,844 26,682 6,856

Local Trade 1,55,207 13,739 23,403 5,648

Others (Non-agricultural 87,500 14,150 20,819 4,376and Salaried)

Average 1,48,000 14,684 23,555 5,672

Table 9.4: Occupation-wise average of border haat investments andcorresponding profits of the vendors


but also because the customs officials and BorderSecurity Force (BSF, India) and Border GuardBangladesh (BGB, Bangladesh), who have theexpress responsibility of monitoring haatproceedings, do not possess the latest documentsat times.

Apart from the anomaly over items listed forborder haat trade, there is confusion overcertain rules and regulations and also someconcerns about haat trade. These pertain toquantity restrictions and its impact; lack ofmeasuring devices for officials, making the

IssuingAuthorityMemorandum ofUnderstanding(Establishing borderhaats across theBorder betweenIndia andBangladesh): signedby the Ministries ofCommerce of Indiaand Bangladesh onbehalf of theirrespectiveGovernments

IssuingAuthorityDGFT on theMeghalaya haats

Ministries ofCommerce (Indiaand Bangladesh)

DGFT on theMeghalaya haats

DGFT on the Tripurahaats



MoU betweenGovernment of Indiaand Government ofBangladesh

Date ofIssue

October23, 2010

Date ofIssue

July 1, 2011

May 15,2012

October15, 2012

November7, 2014

June 3, 2015

September9, 2015

April 8, 2017

Major Provisions

Articles: Article 1 (Haat Management Committee),Article 2 (Area, fencing and construction of border haats),Article 3 (Commodities),Article 4 (Joint Meetings of the Haat Management Committees),Article 5 (Vendors), Article 6 (Vendees),Article 7 (Time and frequency),Article 8 (Photo Identity Cards),Article 9 (Record of entry/exit),Article 10 (Law enforcement and jurisdiction),Article 11 (Suspension of Tariff Duties and NTBs),Article 12(Entry of Security Forces),Article 13 (Oversight by customs officials and health officials),Article 14 (Medium of Exchange)

Issues addressed/Amendments made

Article 3: CommoditiesArticle 5: Vendors

Article 3: CommoditiesArticle 14: Medium of

ExchangeArticle 3: Commodities

Article 5: Vendors

Article 14: Medium ofExchange


Article 3: Commodities

Article 5: Vendors



Validity of the MoU.


Perceived Change

� Stipulation of �local produce� remains;� Requirement of residence within 5Kms of

border haat for vendors remains.

� Stipulation of �local produce� removed;� Purchasing limit of vendees raised from local

currency equivalent of USD 50 to USD 100

� Reiteration that items need not be locallyproduced;

� Residential requirement for the vendors (5kmsproximity of the border haats) remains;

� Reiteration of USD 100 as the purchasing limit

� Stipulation of �local produce� regarding items;� Requirement of residence within 5Kms of

border haat for vendors

� Stipulation of �local produce� reaffirmed;� Requirement of residence within 5Kms of border

haat for vendors reaffirmed� Stipulation of �local produce� removed;� Requirement of residence within 5Kms of border

haat for vendors reaffirmed;� Purchasing limit of vendees raised from local

currency equivalent of US$50 to US$100� MoU shall be automatically extended for

successive tenures of five years. Purchasing limitof vendees raised from local currency equivalentof US$100 to US$200.


checking and entry process that much longer andvariation in the stringency of the officials/guards,and the impact this has on business. Additionally,there are reports of �wholesale� trade wherein moreinfluential vendors in cities are reportedly buying atthe haats through local villagers, at times limitingaccess to certain items for the common vendees.

Status of Infrastructure and theimplicationsOverall there is a need to improve infrastructure atthe haats. Vendors have drawn attention to severalinfrastructural inadequacies. Unsuitable vendingplatforms stand in the way of business because allgoods cannot be displayed. Vendees complain thatthere are no shelters/rooms where they can takerefuge during downpours. It was observed thatbetter infrastructure in Tripura haats (since theywere newly constructed with learning from theMeghalaya experience), have arguably translatedinto higher participation and earnings for thestakeholders.

As apparent from the table above, there areinfrastructure inadequacies, which once taken careof, will positively impact gains from the haats.While taking infrastructure-related decisions, it isalso important to give due consideration togeographical terrain and climatic conditions forspecific locations. For example, the haats inMeghalaya receive heavy rainfall owing to theirgeographic locations and inclement weatherconditions have often resulted in the closure of thehaat, which resumes only once the weatherimproves. Such geographical and climaticpeculiarities (e.g. prolonged and intense monsoonin Meghalaya) have also to be borne in mind whiledrawing up plans for infrastructural improvement ofthe border haats in this region.

Selection of Vendors andManagement of Haat functioningHow is vendorship decided?The rules and regulations stipulated by the MoUand maintained subsequently by DGFT (India) �FTA (Bangladesh) requires the vendors to residewithin a radius of 5 Kms from the border haatpremises.

Vendor cards are generally issued by therespective border haat committees in each of thehaat locations. This committee comprises theDistrict Magistrate, Additional District Magistrate,local Panchayat leaders (Panchayat Pradhan, Up-Pradhan, Block members, etc.), customs officials,Border Security Force (in India)/Border GuardBangladesh (in Bangladesh) and the local police.On the Meghalaya (India) side, there is activeinvolvement of Nokhmas (head of the Garo(tribes) village community) and Gaoburas (villageheadmen) who co-operate with the Panchayatmembers in implementing various developmentalprogrammes in the locality as well as in takingadministrative decisions pertaining to border haatactivities.

Vendor cards are issued on the basis of aregularised process. At first, applications areshort-listed on the basis of an overall assessmentof how the individual will perform. The patternand kind of work he does, the seriousness andsincerity involved in doing that work areconsidered while evaluating a case. After thisinitial screening, the selected applicants areinterviewed, and then the list of candidates isfinalised. Vendor cards are non-transferrable andhave a specific period of validity, which isdecided by the administrative officials. Despitethese broad regulations, there are region specificstories also. In Kamalasagar, distribution ofvendorships is preceded by a consultation withprospective vendors. During such consultation,the item that a vendor will sell is also decidedand fixed. However, deciding beforehand, whichproduct a vendor can sell becomes a hurdletowards robust business in all seasons/demandchange scenarios.

Vendorship: What accounts for success?Vendors are being chosen based on theircomparative advantage and ability to do year-round business at his �pucca� (construction ofbrick and cement) stall in the haat, meaning thatlocal business people opt in. Those who arealready running a local business are typically theones who take up a vendor card. Local vendorsare those who are better off in the community, orhave more clout, are the ones who are usuallyable to acquire vendor cards. Some of the�vendors� in India seem to be keen on re-


investment as much as they are confident abouthaving their vendor cards renewed. Hence,predictability and timeliness of renewal informationhelp vendors make these investment decisions.While such renewals help in continuity andpredictability of business, it limits the reach of thebenefits within some sections of the community.

Management of Haat FunctioningFormal mechanismsUnder the existing rules, there is a border haatManagement Committee (BHMC) on both sides ofthe border. Consisting of local panchayat officials,personnel of the BSF/BGB, customs officials, localpolicemen and prominent vendors, this committeemeets regularly (number of meetings vary acrosshaats) to address specific problems faced by thestakeholders. This committee also considers items tobe traded and the general guidelines to be followedat the haat.

There are also haat specific instrumentalities. AtKamalasagar, the DM has initiated the appointmentof �gram rojgar sheboks� who have theresponsibility of examining the validity of passes forall entrants, maintaining records of goods beingtraded at the haat and generally managing allactivities in the haat premises. In this situation, thepersonnel of the BSF remain largely responsible forensuring security and do not need to engage inadministrative or managerial work.

In contrast to Tripura, the haats of Meghalaya seemto throw up some problems, which meritconsideration. At Kalaichar, there seem to beinformation gaps among customs officials aboutitems that are officially approved for border haattrade. This creates confusion and controversybetween haat officials and vendors causing delay,which is significant because the haat does notcommence before 10 am. The number of personnelfrom the BSF and local police is also inadequate forpurpose of monitoring haat proceedings.

Informal mechanismsAlongside the formal institutions, there are informalparallel institutions as well and these are haatspecific. For instance, in Kamalasagar and Balat,there is an informal group that looks into problemsand grievances of the vendors and vendees. This

group is composed of local panchayat officialsand acts as a mediator on behalf of vendors,putting across their problems to members of theBHMC. Similarly, in Srinagar, there is aninformal committee consisting of powerful andactive vendors and this often acts like aninterest group trying to prevail over formaldecision-making bodies like the BHMC.

Examining the border haats on the Bangladeshside, we do not see any informal institution.This could be a result of the generally andcomparatively low volume of trade that one getsto witness on the Bangladesh side.

Issues with haat managementThe formal committees are not sufficientlyrepresentative. For instance, there is norepresentation of vendees, transporters andlabourers. They are found to be moreconcerned with issues that are relatively long-term and hence not suited to address theimmediate and the urgent problems thatemerge every now and then between andamong the various stakeholders of border haattrade. The policy implications seem clear: thereought to be mechanisms in the border haatsthat will be concerned with the day-to-dayproblems of management and conflictresolution. There ought to be representation inthese mechanisms not just of vendors but also ofvendees and other relevant stakeholders.

Women participationMale dominance is evident in all the categoriesof stakeholders. A notable barrier, particularlyfor women in some of these localities (someparts of Kamalasagar, Tripura) is theirengagement in cultivation and farming oflivestock, which restricts them from participationin border haat trade. Alongside, women�spreoccupation with their domestic chores doesnot leave them with time/energy to participatein trade. Socio-cultural constraints, whereconservatism restricts women to householdactivities, also deter women participation intrading activities. The vendees are, however, inmany cases, women. This is owing to the socio-cultural construct that is fine with women buyingfor their households as opposed to them selling


for their household�s betterment. Meghalayawomen, being from a more matrilineal society,are an exception and are more open to out-of-the-household activities. This is reflected in thehigher number of women vendors on the Indianside in the Meghalaya haats.

Other than socio-cultural barriers, infrastructuralissues like inadequate resting rooms and toilets,unavailability of water and insufficient transportfacilities, also work as deterrents to overallwomen participation.

How to enhance women participation?There have not been sufficient Governmentinitiatives/programmes for encouraging womenparticipation, according to many stakeholders.Local administrative bodies (who are an integralpart of the BHMC) like Panchayats and otherinformal committees (mostly lead by vendors inmost of the India side haats) need to takeinitiatives towards raising the level of awarenessamong women about border haat trade, whichcan encourage women to participate. In certaincases, lack of financial strength is a deterrent forwomen and other marginalised sections of theborder communities. Several women vendees atKalaichar expressed their eagerness to vend atthe border haats but they also drew attention to aserious handicap � lack of financial capital. Thegovernment could explore possibilities ofinitiating schemes/priority loans for workingcapital requirements targeted at women andmarginalised sections of the border communities.

Encouraging developmentsAn effort is being made to encourage more womenparticipation at the border haats. The BHMC at theBalat haat in Meghalaya has recently reserved 12of the 25 vendorships in Balat in favour of women.Such reservations, if mandated for all haats, canhelp in enhancing women participation in the haats.

Impact on Informal tradeThe study reveals and Border security agencies fromboth sides confirm that the haats have helped lowerinformal cross-border transactions. For instance, theKalaichar haat (Meghalaya) has helped insubstantially lowering of informal cross-border tradethrough Mankachar (Meghalaya), situated at adistance of 15-20 Kms from Kalaichar. There areother locations, like Dalu (Meghalaya) where suchinformal trade continues in the absence of similarsetups. BSF personnel confirm that people are notengaged in as much of informal trade as was thecase when borders were more porous. Then,domestic needs were fulfilled informally and therehas been a perceptible decline in such exchangesever since the fence was erected in 2004.

The BSF personnel of Meghalaya point out that noofficial step was taken to decrease the flow of tradethat used to happen informally through Mankachar.That happened as a natural consequence to theestablishment of the border haat at Kalaichar. Thusthe institutionalisation of formal channels of tradewill reduce if not erase other informal channels oftrade.

Impact on people-to-peopleconnectivityOne of the perceptible benefits of border haat tradeis the opportunity that it provides for people on bothsides of the border to connect with each other. Thestudy found several instances where people havecome to the border haat with the additionalincentive of meeting up with friends, families andacquaintances from whom they have got distanced(sometimes more than decades) as a result ofpolitical barriers. As Shirin Akhter, MP fromBangladesh opines, �Border haats can, therefore,be viewed as a platform at the grassroots levelwhere the bilateral relations of India andBangladesh can be cemented.�

The government couldexplore possibilities ofinitiating schemes/priority loans forworking capitalrequirements targeted atwomen andmarginalised sections ofthe border communities


Policy Recommendations1. Distribution of vendorship

� Increase vendorship in view of increasingnumber of applications. Those allowed toset up stalls could be increased to at least50 from each side, given huge demand andthe paucity of other market opportunities

� Quotas in different haats for womenvendors, as done in the case of Balat(Meghalaya) recently

� Item-specific vendor-ship � where a vendorlisted as trading in garments, cannot tradein spices � should be removed, or at leastexpanded to include multiple/broad groupsof products

� The eligibility criteria should bestandardised. In some cases applicants needto have a minimum bank account balanceof INR 20,000 to be eligible for vendorship.This excludes more marginalised vendors

� If more than one haat day a week isconsidered (there is strong demand for threeor at least two days in a week instead ofone day a week), there could be two/three(depending on the number of haat days)separate sets of vendors for each haat. Thiswill help in reaching the benefit to a largersection of the community.

2. Women�s participation and women�sissues

� Providing proper toilets with running wateror pit toilets

� Explore possibilities of having financialassistance schemes/priority lending forwomen/marginalised applicants to helpwith working capital requirement

� Encouraging women representatives in theBHMC and also in informal committees ofvendors that handle disputes and grievances

� Improving the security inside the haats todeter theft

� Consider separate queues for womenvendors, for they often reach the haat lateafter attending to their domestic chores

3. Procedures, rules and regulations� Vendor selection rules could be simplified

and widely publicised, e.g. on illustratedbillboards at the haat location or localPanchayat official notice-boards to reachthose with poor literacy

� Some haats could operate twice a weekgiven high demand and profitability. Butthis will undoubtedly put pressure onagencies like the Border Security personneland Customs

� Extend the haat timings. The currentschedule of 9am-3pm is inadequate givenlengthy entry procedures. Could bechanged to:- Entry of vendors and physical

verification of goods and vehicles:07.00am-08.30am

- Stall set up time: 08.30am-09.00am- Entry of Vendees: 09.00am onward

(with ideally a separate desk/windowfor vendee entry)

� Current quantity restrictions prevent atakeover of the market by large vendors,which is good, but caps need to be raisedsomewhat, e.g. of spices from Meghalaya;juices from Bangladesh

� Provide staff cards for labourers/vendorstaff/helping hands, who currently have toenter as vendees and hence facerestrictions.

� Use e-enabled Identity Cards (e.g.Aadhaar card) to allow quicker scanningat entry by handheld electronic devices,with security agencies being trained on theuse of such devices

� Services could also be allowed inside thehaats � as food stalls are already allowed,additionally shops like mobile recharge/repair, cobblers, barber stalls, mehendi,mobile medical clinics and pathologicaldiagnostic services, etc may be considered.


4. Items of trade� Asymmetry of information regarding items

allowed by official guidelines should beaddressed � relevant amendments should becirculated among all officials promptly andshould also be disseminated across allstakeholders

� Have illustrated boards showing whatproducts are allowed. Currently there�sconfusion and arbitrary behaviour. Holdlocal capacity building workshops todisseminate information

� Fish and poultry are in high demand on theIndian side, but not allowed due toquarantine and food safety regulations. Thisis encouraging high informal trade andhigh prices are faced by Indian bordercommunities. Consider allowing these insmall quantities for local consumption.

� There could be a list of exclusions or anegative list instead of a positive list (as ispractised presently) to enable more items tobe traded between the people across theborder. More flexibility with the list will helpto trade products as per localised andseasonal demand scenarios, leading tohigher interest from vendees from both sidesand consequently higher gains.

5. Infrastructure� The approach roads to the haats need to be

paved (esp. Kalaichar and Srinagar, India).At Kurigram (Bangladesh), there is nobridge over the Jinjira river on theBangladesh side

� Availability of water, particularly drinkingwater

� Electricity supply is vital, particularly so thatavailability of water can be ensured in therestrooms, as well as for drinking purposes

� Solar power could be an effective way todeal with the lack of electricity

� The toilets in all the haats are in bad shapeor non-existent. Where build, maintenanceis tough in the absence of water and clear-cut mandates for, or enforcement of,rotational maintenance. Pit latrines shouldbe built

� Maintenance of the haat premises is animportant consideration because theirpresent condition reveals perceptible

deterioration from what they were at thetime of inception (mainly for theMeghalaya-Rangpur/Sylhet haats)

� Build resting rooms where families canmeet, which will be especially beneficial tochildren and the elderly, and will alsopromote greater people-to-people contactand trust building. This will also helpvendees to withstand weather vagaries.Presently they find it very difficult to findshelter when there is rain.

� Vendor stalls need to be elevated and theground under them paved, else it becomesmuddy during the rains (esp. true in olderMeghalaya-Rangpur/Sylhet haats).Currently, vendors at these haats cannotdisplay their products � causing monitoringproblems for security agencies

� Currency exchange counters are notoperational in some cases (eg. in olderhaats in Meghalaya), and officials are notalways present (e.g. in Balat only theBangladeshi bank representative waspresent when the team visited; in Srinagaronly the Indian bank representatives waspresent when the team visited)

� Provision for basic medical facilities andfirst aid

� Provide public transportation for catchmentarea villages to reach the haat

6. Haat Management & monitoring� The meetings of the BHMC need to be held

regularly and some formal mechanismscould be developed for interactionsbetween the BHMC and the informalmanagement/monitoring groups that existin some haats.

� Haat Management Committees shouldhave representation of stakeholdersbeyond vendors- like labourers,transporters and vendees

� Haat officials need to be equipped withmeasuring devices/machines to undertakechecking of the quantity of goods allowed

� A separate formal body must look intoday-to-day problems as the establishedofficials of BHMC meet infrequently

� Private players could be engaged againstfees to maintain and run haat facilities andensure cleaning, sanitation, etc.


Glimpses of border haatcaptured during field visits by CUTS

Srinagar (India) � Chhagalnaiya (Bangladesh)


Srinagar (India) � Chhagalnaiya (Bangladesh)


Kamalasagar (India) � Kasba (Bangladesh)


Kalaichar (India) � Baliamari (Bangladesh)


Balat (India) � Sunamganj (Bangladesh)


Awang, Abd Hair, Junaenah Sulehan, NoorRahamah Abu Bakar, Mohd Yusof Abdullah, andOng

Puay Liu. 2013. �Informal Cross-Border TradeSarawak (Malaysia)�Kalimantan (Indonesia): ACatalyst for Border Community�s Development.�Asian Social Science 9 (4): 167�73.

Brenton, Paul, Celestin Bashinge Bucekuderhwa,Caroline Hossein, Shiho Nagaki, and Jean BaptisteNtagoma. 2011. �Risky Business: Poor WomenCross-Border Traders in the Great Lakes Region ofAfrica.� Africa Trade Policy Notes 11, World Bank,Washington, DC.

Brenton, Paul, Elisa Gamberoni, and CatherineSear, eds. 2013. Women and Trade inAfrica:Realizing the Potential. Report 82520.Washington, DC: World Bank.

De, Prabir, and Manab Majumdar. 2014.�Developing Cross Border Production Networks ofNorth Eastern Region of India, Bangladesh, andMyanmar: A Preliminary Assessment.� Researchand Information System for Developing Countries,New Delhi.

DES-Tripura (Directorate of Economics and Statistics,Tripura). 2016. Economic Review of Tripura 2015�16. Report 17 (March 31). Agartala, India:Directorate of Economics and Statistics, Planning(Statistics) Department, Tripura State, India.

Higgins, Kate. 2012. �Gender Dimensions of TradeFacilitation and Logistics: A Guidance Note.� April,International Trade Department, World Bank,Washington, DC.

Kaminski, Bartlomiej, and Saumya Mitra. 2012.Borderless Bazaars and Regional Integration inCentral Asia: Emerging Patterns of Trade and Cross-Border Cooperation. Directions in Development:Trade Series. Washington, DC: World Bank.

References

Kashyap, Samudra Gupta. 2017. �MizoramWants Open Border, Visa-Free Entry Up to 60Km.� Indian Express (June 14), Guwahati, India.http://indianexpress.com/article/india/mizoram-wants-open-border-visa-free-entry-up-to-60-km-4702791/.

RIS (Research and Information System forDeveloping Countries). 2011. �Expansion ofNorth East India�s Trade and Investment withBangladesh and Myanmar.� RIS, New Delhi.

Shepard, Wade. 2016. �An Inside Look at Chinaand Kazakhstan�s �Absurd� Cross-Border FreeTrade Zone.� Asia: ForeignAff airs (blog), July26. https://www.forbes.com/sites/wadeshepard/2016/07/26/an-inside-look-at-icbc-khorgos-china-and-kazakhstans-cross-border-free-trade-zone/#3b5580d75c8f.

Trilling, David. 2014. �Kazakhstan: On China-Kazakhstan Border Lies a Lopsided Free-TradeZone.� Eurasianet, September 5. https://eurasianet.org/node/69856.

World Bank. 2006. �India-Bangladesh BilateralTrade and Potential Free Trade Agreement.�Bangladesh Development Series, Paper 13(December), World Bank, Dhaka, Bangladesh.

2007. �Border Trade within the Central AsiaRegional Economic Cooperation.� Interim report(August 20), Central Asia Regional EconomicCooperation, Asian Development Bank, Manila;World Bank, Washington, DC.

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1 World Bank (2006), India-BangladeshBilateral Trade and Potential Free TradeAgreement, Bangladesh Development Series,Paper No. 13, The World Bank Office,Dhaka, pp. xxiv.

2 World Bank (2007), Cross-Border Tradewithin the Central Asia Regional EconomicCooperation

3 Afrika, Jean-Guy K. & Ajumbo, Gerald(2012), �Informal Cross Border Trade inAfrica: Implications and PolicyRecommendations� ( Africa Economic Brief, 3,10)

4 Awang, Abd Hair, et al (2013) �InformalCross-Border Trade Sarawak (Malaysia)-Kalimantan (Indonesia): A Catalyst for BorderCommunity�s Development� (Asian SocialScience,9,4)

5 Ibid6 Supra Note 2.7 Aung, Winston Set (2009), �The Role of

Informal Cross Border Trade in Myanmar�(Asia Paper, September)

8 Ibid9 Ibid10 Little, Peter D. (2007), �Unofficial Cross-

Border Trade in Eastern Africa� (Presented atthe FAO workshop on �Staple Food Trade andMarket Policy Options for PromotingDevelopment in Eastern and Southern Africa,�March 1-2, 2007, FAO Headquarters, Rome,Italy)

11 Supra Note 2.12 Supra Note 1013 Meagher, K. (2003), �Informal Integration or

Economic Subversion? Parallel Trade in WestAfrica� in Lavergne,R (ed) Regional Integrationand Cooperation in West Africa: aMultidimensional Perspective. (Trenton, NJ,Africa World Press)

14 Supra Note 10

Endnotes

15 Elsenhans, Hartmut (1996) �Myth ofGlobalization and Necessity of DevelopmentPolitics� (International Studies, 33/3) pp.254-272.

16 Ibid17 Supra Note 218 Supra Note 419 Supra Note 220 Bezbaruah, M.P. (2007), �Indo-Myanmar

Border Trade: The stakes for North-East India�(Dialogue, July-September, 9,1)

21 Supra Note 722 Kubo, K (2012), �Trade Policies and Trade Mis-

reporting in Myanmar� (IDE Discussion PaperNo 326, Feb)

23 Supra Note 724 Ibid25 Supra Note 226 Supra Note 227 Ibid28 Supra Note 229 Supra Note 1030 Ibid31 Miti, C. (2005), Maize Marketing and Trade

Policies in Southern Africa: TowardDefiningAppropriate and Mutually SupportiveRoles for the Public and Private Sectors.(Lusaka,Zambia: COMESA.)

32 Supra Note 1033 More details are available in the link http://

pib.nic.in/newsite/PrintRelease.aspx?relid=155324http://pib.nic.in/newsite/PrintRelease.aspx?relid=180900

34 Supra Note 135 Pohit, S and N, Taneja (2003), India�s Informal

trade with Bangladesh: A quantitativeAssessment, Article in World Economy

36 Chatterji, R. et al (2015), Proximity toConnectivity: India and its Eastern and SouthEastern neighbours, ORF Kolkata

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