Border trade between India and Myanmar was disrupted on Sunday for several hours along the international border in Manipur due to protest by villagers on the Indian side.
However, the stand-off was resolved after talks at the official level.
Police said a large number of villagers of Haollenphai near the international border shouted slogans against Myanmarese authority earlier in the day to demand return of saw mill machinery seized by officials of the neighbouring country.
While the Myanmarese officials claimed that the saw mill was in their territory, the villagers said it lies in Indian territory.
After the protesting villagers locked the gate on the Indian side, Myanmarese officials did the same after a few hours, leaving hundreds of Indian tourists and traders stranded at Namphalong and Tamu.
Official sources said the issue needed to be discussed at the diplomatic level.