Traders of Panitanki, the locality of Siliguri subdivision on the India-Nepal border which is some 35km from here, are facing severe economic distress over the past few days as the Nepal government has started collecting duty from its people on the purchases they make from this side of the border.

The sudden decision by the Nepal government since mid-July has affected Panitanki traders who are largely dependent on buyers from Nepal.

Dipak Chakraborty, the joint secretary of the Panitanki Byabsayee Samiti, said that since July 17, the Nepal government has been collecting duty from its residents on all products they buy from India costing above Rs 100.

“The rate of duty varies on the basis of items, right from garments and grocery to kitchen utensils and furnishings. In some cases, the duty can be around 40 per cent. That is why a considerable section of people from Nepal has stopped visiting our market these days,” Chakraborty said.

Earlier, any individual from the neighbouring country could buy Indian products worth up to Rs 15,000 and carry them to their country without paying duty.

Chakraborty said that before the new rule came into effect, every day around 25,000 residents from places of eastern Nepal such as Kakarvitta, Damak and Birtamode would cross the border via the bridge over the Mechi river, which connects Panitanki and Kakarvitta, to make their purchases at Panitanki. People from Nepal would buy high-value items such as electronic goods and building materials, apart from household and other items from the Panitanki market.

“Ahead of the Covid-19 pandemic, the daily turnover in the market was around Rs 2.5 crore. In all, there are 1,000 traders here. During the pandemic, we all suffered as trade was badly affected. Over the past few months, trade had started showing some signs of revival but this latest decision (of the Nepal government) has again put us in trouble,” said Chakraborty.

A trader said these days the daily turnover in the Panitanki market was merely around Rs 2 lakh.

“Some traders are even keeping their shops closed because there are hardly any buyers,” he said.

Traders have decided to speak to Nisith Pramanik, the Union minister of state for home affairs and Cooch Behar MP, and Raju Bista, the Darjeeling MP, as Panitanki comes under the Darjeeling Lok Sabha constituency.

“We will request them to take up the issue with the Nepal government and ease the cross-border trade through the Panitanki-Kakarvitta route. On Sunday, we will send letters to the two MPs,” Chakraborty said.