Archive · 5 Aug 2026
Shipki La barter trade resumes; raw pashm priced out
A very old road between India and China that was closed for six years has just opened again.
The road, called Shipki La, goes through the mountains between India and a region called Tibet.
When it closed in 2019, the two sides could not trade like they used to.
Now, 16 traders made the first trip across the pass.
They traded things like rice, spices, flour and tools for carpets, shoes, watches and sweets, which is called bartering because they swapped goods instead of using money.
But there was one special thing they could not get: pashm, the soft wool used to make expensive Pashmina shawls.
Pashm has become too expensive, costing about three times more than it did before the route closed.
The traders are also not allowed to pay with cash or phones, only with goods, and one Chinese yuan is now worth about 15 rupees, making things costlier.
The traders hope they can bring back pashm on later trips, and the trading season lasts until the end of November.
The Shipki La trade route between Himachal Pradesh's Kinnaur district and the Tibet Autonomous Region reopened this month after being suspended since 2019 due to the Covid-19 pandemic.
The first batch of 16 traders from Kinnaur and Lahaul-Spiti bartered agricultural implements, rice, flour, dry fruits, spices, kerosene, handicrafts and handloom products for carpets, shoes, watches, sweets and Chinese crockery.
Traders could not bring back raw pashm, the fibre used for premium Pashmina, because its price has risen from Rs 12,000-15,000 per kg to Rs 30,000-35,000 per kg, making it unaffordable under the barter system.
Trade at Shipki La remains strictly barter-based under the arrangement dating to 1697 between Tibet and the erstwhile Bushahr princely estate, and Indian traders are limited to goods worth Rs 1 lakh each.
The trading season is scheduled to run until November 30, and traders hope that established cross-border sellers will return and that pashm can be traded in future rounds.
- Who
- Traders from Kinnaur and Lahaul-Spiti districts of Himachal Pradesh, including Hozer Nima and Pasang Cheering, along with sellers at Ship Ki village in the Tibet Autonomous Region and officials of the Indo-China Traders' Union.
- What
- The historic barter trade across the Shipki La pass resumed after six years; the first batch sold nearly all its goods but could not bring back raw pashm because of its high price.
- When
- The first batch was flagged off from the Chupan Trade Centre on August 1 and returned Monday; the next batch was expected to leave Wednesday, and the season runs until November 30.
- Where
- Shipki La pass between Kinnaur district, Himachal Pradesh, India, and Ship Ki village in the Tibet Autonomous Region.
- Why
- The route reopened after being closed since the outbreak of the Covid-19 pandemic in 2019, reviving the traditional barter arrangement that dates to 1697.
- Trade route
- Shipki La pass between Kinnaur (India) and Ship Ki village, Tibet Autonomous Region
- First batch
- 16 traders from Kinnaur and Lahaul-Spiti
- Trade system
- Barter only, per the 1697 Bushahr-Tibet arrangement known as 'Gamgya'
- Raw pashm price
- Rs 12,000-15,000 per kg before closure; Rs 30,000-35,000 per kg now
- Per-trader goods limit
- Rs 1 lakh
- Exchange rate
- 1 Chinese Yuan worth around Rs 15
- Suspension period
- Closed since 2019 (Covid-19 pandemic); reopened this month
- Trading season
- Until November 30