"Trading was earlier scheduled to begin June 1 and last till September 30," said Saman Prasad Subba, director of industry and commerce in the tiny state of Sikkim, wedged between India and Tibet.

"But the two countries agreed to demands by traders to allow business from May 1 to November 30," Subba told AFP by telephone.

"A total of 29 Chinese traders came to the Indian side with items while 13 people from India crossed over to China in the first two days of trading."

India and China first started trade across the 15,000-feet (4,545-metre) Nathu La Pass, 52 kilometres (32 miles) east of Sikkim's capital Gangtok, last July as part of efforts to mend ties dogged by a bitter border war in 1962.

Indian officials say the move marked Beijing's recognition of India's sovereignty over previously disputed Sikkim state.

Tibet's commerce department says bilateral trade last year through Nathu La totalled about 190,000 dollars.

While about 900 Chinese traders crossed into India through the border marked by a rusty barbed wire to the bazaar of Sherathang, 400 Indians headed to the Renqinggang interim market in Tibet.

Businessmen from both sides of the border were now seeking a broadening of the list of items traded through the Nathu-La pass.

At present India imports 15 items from China including silk, yak pelts and horses, and exports 29 goods that include textiles, tea, rice, vegetables and herbs.