China's Delay Forces 28 Indian Traders To Return From Lipulekh, Border Trade Revival Remains Uncertain

Dharchula, July 17, 2026: Hopes of reviving the historic India-Tibet trade through Uttarakhand's Lipulekh Pass have suffered another setback, with 28 Indian traders returning from Gunji without being allowed to cross into Tibet. The traders came back to Dharchula on July 11 after the Chinese authorities did not grant the final clearance needed to enter through the border.

The traders had travelled to Gunji, the last Indian village near the China frontier in Pithoragarh district, as part of preparations to restart the seasonal trade that has remained suspended since the Covid-19 pandemic.

However, the uncertainty has left them returning empty-handed, while nearly 3,000 quintals of jaggery and sugar candy remain stranded at Gunji, exposed to rain and moisture.

Border Trade In Limbo

The 28 traders were part of a larger group of 100 traders and assistants who had been issued official passes by the district administration to resume trade with Taklakot (Purang) in Tibet. They were scheduled to leave on July 8, but the final approval from the Chinese side never arrived.

Dharchula Sub-Divisional Magistrate Ashish Joshi said the administration has requested the Chinese authorities to allow Indian traders to visit Tibet without carrying goods so they can inspect the arrangements at the trading point.

"We have requested permission for Indian traders to visit Tibet without carrying goods and inspect the arrangements there. We are awaiting a response from the Chinese side," Joshi said.

With no clarity on when permission would come, traders said staying back at Gunji had become difficult because of shortages of food and other essential supplies. Their biggest concern now is the stock of jaggery and sugar candy left behind.

"Nearly 3,000 quintals of jaggery and sugar candy are stored at Gunji. With persistent rain, we fear heavy losses if the deadlock continues," one of the traders said, The New Indian Express reports.

The prolonged wait has also fuelled disappointment among traders because Nepalese merchants have reportedly been allowed to continue trading at the Purang market, while Indian traders remain in limbo.

Historic Route Awaits Revival

Lipulekh Pass, located in Uttarakhand's Pithoragarh district near the India-Nepal-China (Tibet) tri-junction, is one of the oldest Himalayan trade routes. For centuries, it has served as a seasonal trading corridor between Indian border communities and Tibet. The strategically important pass is also one of the routes used for the Kailash Mansarovar Yatra.

Trade through Lipulekh was first suspended after the 1962 India-China war before resuming through Taklakot in 1992. The route was halted again in 2019 because of the Covid-19 pandemic, and despite renewed efforts this year, its revival remains uncertain.

This year, 134 traders from across the border region applied to participate. After security and administrative verification by the Special Investigation Branch, the district administration issued passes to 100 traders along with their assistants, porters and mule handlers. Tourists are not permitted to travel on trade passes.

In 2019, the last year the trade was operational, commerce through Lipulekh was valued at nearly Rs 3 crore. Exports stood at about Rs 1.25 crore, while imports were around Rs 1.90 crore.

Also Watch:

For villages such as Dharchula and Gunji, the trade is more than just commerce. It supports transporters, porters and local markets that come alive for a few weeks every summer. Until the border reopens, however, that seasonal economic activity remains on hold, leaving traders and border communities waiting for a breakthrough.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/