Hundreds of merchants stuck as India-Arakan trade route closed

By Admin 22 Aug 2025

DMG Newsroom

22 August 2025, Mrauk-U

Hundreds of traders are reportedly stranded after India closed the main border route for trade between India and Arakan State.

A merchant said that the Assam Rifles paramilitary force has been blocking entry into India at Lawngtlai district in Mizoram state, India, for about a week.

"The border trade route has been closed for a week, but it is not known when it will reopen. If you come from India to Arakan State, you are allowed. If you go to India, you are not allowed at all and are asked to turn back. Hundreds of traders are stuck there," said an Arakanese merchant, and that the exact reason for the closure is unknown.

The closure has caused difficulties for traders traveling to India to import goods.

A trader said that the closure of the road could lead to further price increases in areas controlled by the Arakan Army (AA).

"If the road is closed like this, the flow of goods will be cut off and the prices of goods that were previously stored will increase. Some traders have goods that are stored at a lower price. This will cause prices to increase even more," said another trader.

The military regime has banned the flow of goods into Arakan State since November 2023, so the basic food, medicine, and fuel needs of the people of Arakan State are mainly met by imports from Lawngtlai district in Mizoram via the Paletwa border route.

The Central Young Lai Association (CYLA) blockaded the trade route used to import goods from Lawngtlai to Arakan State through Chin State's Paletwa Township in 2024. The Arakan Army had to negotiate directly with the Mizoram government regarding the issue.

Previously, basic food and clothing were imported from Yangon and Mandalay to Arakan State via the Minbu-Ann-Sittwe road, the Padaung-Taungup-Kyaukphyu road, and the Ayeyarwady-Ngathingyaung-Gwa road, while construction materials and other equipment were distributed by sea via large cargo ships via Sittwe.

With regular trade routes to Arakan State blocked, people are suffering from rising prices and shortages as essential basic goods cannot easily reach the region.