They need to make it harder for the smuggler to smuggle. 40-60km to the border , all the subsidised items should be abolished. The local there to be compensated via cash aid to recoup the losses from the unsubsidised items (cooking oils, petrol, etc). It is easier to coordinate the smaller population at the district levels.

Yes, they can but it will be harder. The travelling distance of 40-60km from border will expose the smugglers more time on the road to be intercepted by the enforcers. If now at border, they can straight away cross in less than 10-15min. Before enforcers could do anything , they already escaped. 40-60km distance will at least make the smugglers to stay on the road at least 45-60min longer before reaching the border.