Global Rice News

India Prepares to Counter Pakistan’s Bid for Basmati Rice GI Tag Expansion

India is gearing up to challenge Pakistan’s attempts to expand the geographical indication (GI) tag for its Basmati rice. Pakistan’s bid to include 48 districts, up from the previous 14, could have significant implications for India’s rice exports to the European Union (EU).

According to sources, the Union commerce ministry is actively strategizing to counter Islamabad’s bid at the European Commission (EC).

Key stakeholders, including the Basmati Export Development Foundation, the Agricultural and Processed Food Products Export Development Authority (APEDA)-affiliated organization, alongside the Indian Agricultural Research Institute (IARI) and association of rice exporters, are finalizing a comprehensive report to refute Pakistan’s claim.

It is important to note that India is currently working towards resolving all outstanding issues with the European Union for a bilateral free-trade agreement. The eighth round of negotiations is expected to take place in May or early June.

GI registration is crucial for accessing the European markets, offering benefits such as tariff relief within the 27-member bloc.

India submitted its GI registration application on July 20, 2018, preceding Pakistan’s application on August 24, 2023. Stakeholders can oppose a registration within three months under the standard intellectual property rights (IPR) registration process.

While the EC is yet to reach a final decision on India’s application, Pakistan’s application was quickly published for potential opposition on February 23, 2024. The commission is now considering registration based on all available information from both countries.

Basmati rice is grown in 81 districts across India, including Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand, and western Uttar Pradesh. The Seeds Act of 1966 officially recognizes 34 varieties of Basmati rice.

In a meeting led by commerce secretary Sunil Barthwal in early April, all stakeholders were directed to defend the case against Pakistan in a manner that sets a precedent for similar situations.

India will submit its response opposing Pakistan’s claims to the EC in the fourth week of May.

India’s basmati exports to the EU have consistently increased over the past three years. In FY23, India exported 152,857 metric tonnes (MT) of Basmati valued at $167 million, significantly higher than the previous year’s 88,452 MT worth about $93.4 million.

Between April 1, 2023, and January 31, 2024, India exported 130,122 MT ($168 million) of Basmati to the EU, indicating robust demand for Indian basmati in the EU market. This reflects the superior quality and popularity of the aromatic rice variety among member countries.

In FY22-23, India’s basmati trade reached $4,787.50 million, with volumes of 4,558,972.23 MT, solidifying India’s position as the world’s top exporter of Basmati rice. Major export markets included Saudi Arabia, Iran, Iraq, the United Arab Emirates, and Yemen.

Industry experts believe that Pakistan’s case lacks a solid foundation and is unlikely to be upheld in the EC. Pakistan’s sudden increase in the number of Basmati rice-producing districts from 14 to 48 without providing any scientific evidence will likely face significant criticism in the EU.

According to an EC official, both India and Pakistan are seeking European GI protection for Basmati rice. The EC will strive to find a “balanced solution” that benefits all parties while complying with existing rules.

While Pakistan plans to defend its case, including the 48 Basmati-growing districts, citing a verdict of the Delhi High Court on April 25, 2019, regarding Basmati cultivation restrictions in the Indo-Gangetic Plains, it remains to be seen how the EC will evaluate both countries’ claims.

Source: [LiveMint](https://www.livemint.com)