A year later, shortages and rising prices have hurt businesses in Manipur

“This was one of the main trade routes for Chinese goods sold on e-commerce websites such as Flipkart and Amazon. While the products are available at huge discounts online, these goods were available at an even higher discount in stores in Moreh. With supply dwindling, prices of electronics items have skyrocketed,” said one of the shopkeepers DH.

Senior government officials in the state confirmed that Myanmar products, including electronics from Southeast Asia, were previously widely sold in the state.

Crippling fuel shortage

In Churachandpur, the state’s second largest city, bottled fuel is being sold in standalone shops and supermarkets as the supply route from Imphal is blocked.

This was said by District Deputy Commissioner Dharun Kumar S DH“Oil companies like Indian Oil have stopped risking sending fuel on this route as tankers en route to Churachandpur are being looted by various tribes. The drivers are also at risk of being attacked. Only two of the seven petrol pumps operate four hours a day in the district. Most of the fuel supply is done via Aizawl in Mizoram, about 330 km from Churachandpur.”

Petrol rates in Churachandpur range from Rs 110/litre to Rs 150/litre.

The battle extends beyond logistics. DH spoke to several small business owners in Imphal’s Ima Market, who claimed that when goods pass through the hills along Nagaland and Assam, they encounter several checkpoints on the way to the Imphal Valley, where exorbitant fees are often imposed by various armed groups to allow trucks to continue, further driving up prices.

These unofficial fees, amounting to Rs 20,000-25,000, significantly impact the affordability and availability of products, especially food essentials, resulting in three times the normal rates elsewhere in India. Senior police officials at the Imphal police headquarters refused to comment on what they were doing to counter extortion by various militias.

The influence of the local militia

Arambai Tenggol, a militia group belonging to the Meitei community, exerts a chilling influence on commerce in the state, mainly targeting non-local entrepreneurs. For example, shopkeepers from Bihar claimed extortion demands of up to Rs 35,000 in the guise of ‘welfare money’ for relief camps. They fear that non-compliance could lead to violent consequences such as arson.

The state’s overall economy has seen a slowdown since ethnic clashes began last year. Local vendors in both the Hill and Valley claim their sales have fallen by more than 50% due to reduced footfall.

In the heart of Imphal, the Ima Market was usually packed with customers on the eve of ‘Cheiraoba’ – the New Year celebration for the Sanamahi Meiteis. This unique marketplace is run exclusively by women.

This year, however, the crowd was only a quarter of its usual size. The Cheiraoba New Year was overshadowed by the harsh reality of the conflict that affected both the Kuki and Meitei communities.

However, despite looming threats and financial stress, some industries are finding a way to thrive. With major brands such as Nykaa temporarily halting deliveries due to the ethnic conflict, local cosmetics stores have seen a boom in sales. “With less accessibility to discounted products and brands online, locals are turning to our stores, providing an unexpected boost in these challenging times,” said Tayal, a cosmetics seller at Ima Market.

Senior government officials at the State Secretariat that DH spoke to said, “The government is taking steps to improve business prospects in the region,” but they did not elaborate on what these steps are.

(With inputs from Shakshi Jain, DHNS)