Another twist to the India-Pak battle over Basmati rice tag

Shared ownership for the branding rights of the Basmati rice variety between India and Pakistan seems to be in the works in European Union (EU) markets.

India had filed a claim in the EU on September 11, 2020, seeking Geographical Indicator (GI) status for its basmati from the union’s Council on Quality Schemes for Agricultural Products and Foodstuffs. This would have provided India monopoly over basmati rice markets in Europe. Pakistan filed a counter-petition in late 2020.

A geographical indication is a label applied to products with a specific geographical origin that has qualities or reputation essentially based on the natural and human factors of their origin.

Basmati rice is produced on both sides of the border. Media reports quoting trade sources said both nations are likely to reach an agreement after opposing each others’ claims for getting Protected Geographical Indication (PGI), or GI tag, for the product in the EU.

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Sources said joint ownership is in their (EU buyers) own interests for two reasons: First, demand for Basmati has been increasing over the past three years, and second, they want an alternative in case one country’s production is reduced.

In 2006, the EU had recognized basmati as a joint product of India and Pakistan but New Delhi has been trying to be the sole owner of the GI tag. The EU buyers also prefer the joint ownership of the rice as they want to keep both New Delhi and Islamabad on board in terms of commodity exports.

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Turkish Anadolu news agency quoted Nathi Ram Gupta, president of the All India Rice Exporters Association, as saying that Pakistan should not have raised any objection to India’s geographical indication claim.

“We would have had the geographical indication tag by now if Pakistan had not objected,” he told the news agency.