Battle for Basmati
- Basmati
rice is produced largely in Punjab and western Uttar Pradesh and in
neighbouring Pakistan- making these two countries the major exporters of
Basmati rice to the world. India has always been involved in protecting
the name, ‘Basmati’, as a geographical indicator. In other words,
‘Basmati’ is a term that should be restricted to the product from its
geographical location. Geographical indicators are a useful concept since
they protect native wisdom, technologies, and traditional efforts from
being stolen.
- On
the 16th of February, 2016, Basmati rice obtained the geographical
indication certification. Earlier in 2008, the Union Commerce Ministry’s
Agriculture and Processed Food Products Export Development Authority
(APEDA), had applied to the geographical indications registry of India, to
acquire an exclusive commercial use of the name, ‘Basmati’ for the rice
grain varieties grown within the boundaries of the Indo-Gangetic plains.
- This
GI protection in India, would lead to similar recognition of Basmati in
other countries, including the European Union and the United States of America,
which implies that India’s competitors would would be barred from using
the Basmati tag. In the absence of such a GI tag, many private companies
had been trying to register their products under this title, which
commands a premium in the global market.
- Basmati
rice from the Indo-Gangetic plains has a special aroma attributable and
unique to it. India dominates with an 85% share in the global trade of
Basmati rice at present.
India-Pakistan on Basmati Rice:
The issue of protecting Basmati rice as a product of Pakistan
came to the forefront after India submitted an application to the
European Union (EU) claiming sole ownership of the commodity in
September 2019.
India also claimed that the region producing basmati is
a part of northern India, below the foothills of the Himalayas forming
part of the Indo-Gangetic plain.
The Indian claim to the EU was challenged in December 2019 and
the main argument by Pakistan was that Basmati rice was a joint product
of India and Pakistan.
Pakistan enacted the Geographical Indications
(Registration and Protection) Act in March 2020, which gives it the
right to oppose Indian application for registration of Basmati rice exclusive
rights.
Significance of Pakistan’s GI tag for its Basmati:
A GI tag would strengthen Pakistan's case in the EU.
Pakistan exported 5,00,000-7,00,000 tonnes of Basmati rice
annually to different parts of the world out of which 2,00,000 tonnes to
2,50,000 tonnes is being shipped to EU countries.
Effect on India:
Basmati rice was a joint heritage of India and Pakistan and
Pakistan is as entitled to secure its Basmati rice trade as India.
However, Pakistan securing the GI tag for its basmati rice
would, in no way, affect India’s Basmati exports.
Since Basmati rice fetches higher prices in the international markets, India had attempted to block Pakistan’s trade in the EU by declaring that its Basmati was the geographically original one.
Recently (7/6/2021)
India has applied for an exclusive trademark that would grant it sole ownership of the basmati title in the European Union, setting off a dispute that could deal a major blow to Pakistan’s position in a vital export market.
“It’s like dropping an atomic bomb on us,” said Ghulam Murtaza, co-owner of Al-Barkat Rice Mills just south of Lahore, Pakistan’s second-largest city.
Pakistan immediately
opposed India’s move to gain Protected
Geographical Indication (PGI) from the European Commission.
