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Why in News?

  • Traders and politicians in Kashmir have criticised the government over the sudden suspension of cross-Line of Control trade, which the government said had been triggered by issues including illegal trade,funneling of counterfeit currency, and the funding and promotion of terror groups and anti-India operations though the trade.


  • The trade route has created 1.70 lakh job days so far.
  • We hired services of 6,170 trucks and hundreds of labourers are involved directly. The move will only contribute to unemployment and desperation
  • Sources in the Ministry of Home Affairs said the government
  • was particularly alarmed by the case of U.S.-origin California almonds, which was not just a violation of the barter arrangement but also was under-invoiced to provide funds to anti- national elements and terrorist organisations in the Valley to fuel anti-India operations.
  • Listing the reasons for the move, the MHA sources said they included the problem of goods being traded from other countries like the U.S., channelling of funds for terror groups like the Hizbul Mujahideen, drug trade, smuggling arms and ammunition and pumping in fake currency notes.
  • The sources indicated that the trade was “only suspended and not cancelled permanently.” “The government will revisit the issue of resuming trade after stricter measures are put in place,

Line of control:

  • LOC stands for Line of Control. It defines the boundary separating parts of Kashmir controlled by India and Pakistan
  • LOC is a demarcated border marked by the militaries.
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