A recent decision by the Bhutan government that involved the introduction of a new distribution system of certain products in the country has come as a fresh poser for hardware merchants of Jaigaon, the town in Alipurduar district that sits on the Indo-Bhutan border.

“From January 1, retailers in Bhutan who sell electrical wires, electrical cables, and pipes will have to buy the items from wholesalers based in their country. So far, many of these retailers were our customers. It seems we would lose a business of around Rs 2 crore a month because of this new decision,” said Sunil Moda, general secretary of Jaigaon Hardware Merchants’ Association.

On December 4, the ministry of economic affairs of the neighbouring country held a meeting with wholesalers and retailers who sell these products in the country.

At the meeting, it was decided to roll out a new product-based distribution system next year.

“The initiative is aimed to further streamline and strengthen the existing distribution system in ensuring the availability of the quality of products at fair and competitive prices in the market,” said a release of the ministry.

As per the new system, these items can be imported into Bhutan only by wholesalers who have been licensed by companies that make these products. “The retailers and other importers have been asked to get these items from such wholesalers,” said a source.

The ministry has also appended a list of 45 authorised wholesalers who deal in electrical wires and cables and pipes of various kinds and has mentioned that more such wholesalers can come up in due course.

The hardware traders of Jaigaon — there are 60-70 of them in the bordering town — are apprehensive that their loss might mount further. They pointed out that there are hundreds of ancillary items which are used with these three products.

“We apprehend that the retailers will also buy these ancillary items, for example, brackets needed to fix a pipe, from the wholesalers of their country. It is unlikely that they will purchase the pipes in Bhutan and turn up in our place to get other items,” said a senior trader.

They mentioned that the trade in Jaigaon, which is largely dependent on Bhutan, has taken a beating during the past two and half years because of the Covid-19 pandemic.