Guwahati: Given the Himalayan Kingdom's close trade and economic ties, India has decided to make special trade concessions to Bhutan.

According to a statement issued today by the Indian Embassy in Thimphu, the Indian government has made a special exemption for Bhutan by lifting the restriction on the import of potatoes only from Bhutan with effect from July 4, 2022, to June 20, 2023, easing the difficulties faced by Bhutanese traders in exporting potatoes to India. Bhutan's most important cash crop is potato, and India is the country's top export destination for potato exports.

The open international border separating Bhutan and India is known as the Bhutan-India border. The border is 699 kilometres (434 metres) long and runs through the Indian states of Assam (267 kilometres; 166 metres), Arunachal Pradesh (217 kilometres; 135 metres), West Bengal (183 kilometres; 114 metres), and Sikkim (32 km; 20 m).

In 2020-21, India formally notified 12 additional Bhutanese agri-exports, including potatoes, in the Plant Quarantine Order of India, allowing these Bhutanese products formal market access in India. In order to facilitate bilateral agri-product trade, India established a new plant quarantine Indioffice in Jaigaon in 2020.

The Indian government recently revised its import policy to permit the import of fresh wholly produced ginger from Bhutan beginning May 19, 2022. This will address the difficulties that Bhutanese farmers and traders have in exporting ginger to India.

The Government of India will provide 10,000 litres of Nano urea/nano nitrogen fertiliser (liquid) to Bhutan at a special concessional rate through the Indian Farmers Fertiliser Cooperative Limited (IFFCO). This is intended to benefit Bhutanese farmers who rely on agriculture for a living, both for domestic consumption and for export.

The Indian government will supply 111,000 metric tonnes of coal per year to Bhutan through Coal India Limited in order to meet the needs of Bhutan's coal-dependent industry and to allow for uninterrupted supply and export of related products to India. It is hoped that the supply of coal from India will significantly alleviate Bhutan's current coal shortage, which has an impact on cement production and consumption activities.

Despite the challenges posed by the Covid 19 pandemic and disruptions in global supply chains, the Embassy stated that India has extended full cooperation and support to Bhutan in order to ensure the smooth movement of commodities during this period.

"Our close trade and economic ties reflect India and Bhutan's exceptionally close and friendly relations. In light of the special relationship, and despite global supply chain disruptions and commodity shortages, India has decided to accommodate Bhutan's special requests "According to the statement.