Trade in Uttrakhand

Uttarakhand has been placed at 15th position in terms of mobility of goods and efficiency of logistics chain, according to the newly launched Logistics Ease Across Different States (LEADS) index by the Ministry of Commerce & Industry in January 2018. ▪ Uttarakhand stood at the 11th position in ease of doing business ranking conducted by Department of Industrial Policy and Promotion (DIPP) in collaboration with World Bank under Business Reform Action Plan (BRAP) 2017. The State witnessed a fall of 3 places in its rank from BRAP 2016.

Logistic support in the State

Airport

There is an urgent need to upgrade the Jolly Grand Airport, Dehradun. The state government may take up with the matter with AAI to have discussions with leading players who are operating flights from various destinations to this airport to examine possibility to start some late evening flights to Delhi and other destinations as the airport is about 60-75 minutes’ drive depending upon traffic from main city and in the interest of business travellers, late evening flights to Delhi and other destinations would be an added advantage.

Land customs stations ( LCS)

Land Customs Stations (LCS) also play a vital role in terms doing EXIM trade with the neighbouring countries. Strengthening the facilities, connectivity etc at LCS could also helping in pushing exports. The State, due to its geographical location, has four Land Customs and their profile is placed below:

LCS Banbasa

It is important station for indo-Nepal trade.

Main Exports from this station are Fresh Fruits, Green Vegetables, Potatoes, Stationary, Male goats, Onions, Fabrics, Footwear, Machine & Machinery parts, Hardware goods, Automobile parts, Agricultural machine & tools, Tractor trolley, E-rickshaws.

LCS Gunji

It is Important station for trade in Indo-China border.It is located in Pithoragarh disctict. It opens only some time in a year and is mainly used for daily use items.

LCS Dharchula & Jhulaghta

It is major trade point at Indo-Nepal border. The people from both sides usually use this LCS for their daily use items.

Inland container depots

The state has 2 Inland container depot – one in Pantnagar and other in Kashipur. They are located near the industrial hubs of the state. In spite of being located near the industrial hubs, these ICDs witness very less amount of cargo due to various infrastructural and connectivity issues leding exporters to send their cargo by road to other dry ports or directly to ports which add on to their transaction cost as well as time.

Pharmaceutical trade cluster

The pharmaceutical cluster is located at about 25 kilometers from Dehradun in Selaqui industrial area. The industrial is area is spread in about 50 acres of land. The pharmaceutical industries were set up during 2003-04 when a policy stimulus package including new industrial policy and other concessions were announced for the state of Uttarakhand, Himachal Pradesh and Jammu & Kashmir to encourage the setting up of industry in these states and help in creating jobs.

More than 50 pharmaceutical units are situated in the cluster of which more than 30 units belong to small scale category. The major product of the cluster is bulk drugs and formulations in various dosage forms such as tablets, capsules, liquid orals, ointments and injectable. The State exports Pharma products worth over USD 100 million in 2017-2018 observing the growth of 11%. Some companies are manufacturing for big companies like Cipla and their products are sold domestically or indirectly exported. Most of the units have medium sized production facilities, however some enterprises have enhanced the level of their facilities and are in the process of overseas registrations for initiating their exports.

Tea export

Orthodox variety of tea grown in State has a distinct taste and aroma is also good for health owing to its anti-oxidant properties. The agro-climatic condition in the state is also suitable to the Orthodox variety of tea. Undulating topography, which doesn’t retain water, is yet another local condition favourable for tea cultivation. At present the state has around 1100 hectares under tea cultivation with only five tea estates, four of which are state owned and the remaining one is a privately-run tea estate. While the privately-run tea estate lies unproductive, the remaining four tea estates, each equipped with a tea processing unit, produce 70,000 kg of tea.

There is an immense scope for production of Tea in the state due to favourable climatic conditions. During stake holders’ interactions with members of the trade engaged in this sector and with the representatives of Uttarakhand Tea Development Board, it was pointed that the board has developed about 1185 Hectares of Tea Farming in Hilly areas of the state which further paves the way of export opportunities of this sector.

Basmati Rice

The state has a rich variety of Doon Basmati Rice and its famous for its rich aroma and distinctive flavor. The land where it was being grown has reduced massively and have been limited to areas like Haripur, Dgakrani, Dharmwala, Pratitpur, Amabawadi to name a few.

The Doon valley have agro climatic conditions where the rice can be grown organically and have good markets in various parts of the world. The State Government may engage with APEDA for promoting it as the farmers are switching to other sectors due to lack of marketing support and other subsidies.

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