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"Basmati Rice: A Battle for GI Tag and Trade between India and Pakistan"

India and Pakistan's ongoing dispute over the GI status of basmati rice reflects deep cultural and economic stakes, with both nations vying for exclusive rights to market the rice in the European Union.

"Basmati Rice: A Battle for GI Tag and Trade between India and Pakistan"
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TLDR

Since their independence in 1947, India and Pakistan have had conflicting histories both on the battlefield and in economic disputes. One of the most recent debates is over basmati rice's geographical indicator (GI) status, a product with significant cultural and commercial value. This battle depicts the complexities of international trade and intellectual property rights and reveals strong cultural and historical ties between the two countries. The ownership dispute involves significant economic and cultural investment on both sides as they compete for exclusive control of this coveted commodity in the European Union (EU). 

The struggle between India and Pakistan over basmati is not new, with Pakistan seeking GI designation for basmati in the EU as early as 2022. This prompted India to oppose and request that Pakistan's application be cancelled. India's application for GI status has been pending with the EU since 2018, demonstrating the enduring nature of this argument.  Basmati rice is an integral part of India's agricultural tradition and identity, providing a living for 1.5 million farmers. Losing this GI designation might harm its reputation and market price. Meanwhile, Pakistan plans to enhance its market position in the global basmati rice market by attaining GI designation, which will allow it to claim and sell its rice as a premium product in the EU. The economic consequences of this situation are not limited to the two nations, but may also affect European rice growers 

Basmati rice has long grains and is famous for its smell. It has been produced for centuries throughout the Indo-Gangetic plains that run across India and Pakistan. There are two Sanskrit words: "vas" or scent, and "mati" which means innate quality. This deduction leads to the conclusion that the term "basmati" refers to rice that has an intrinsic property, namely aroma. Indeed, those references may be discovered as early as the 18th century, in Waris Shah's Punjabi love epic Heer Ranjha. Such a great heritage underlines the enormous cultural importance of basmati rice for both countries. 

Image Source: TOI

In 2008, India and Pakistan considered submitting a single application to the EU for GI certification for basmati rice. However, the terrorist attack on Mumbai that same year derailed the project and seriously strained relations between the two countries. As a result, India's APEDA promptly submitted a nationwide application for GI designation. The Geographical Indications of Goods (Registration & Protection) Act of 1999 conferred GI recognition in 2016. 

In July 2018, India formally applied for Protected Geographical Indication (PGI) status for basmati rice before the EU's Council on Quality Schemes for Agricultural and Foodstuffs. It claimed that basmati rice is specifically cultivated in northern India's Indo-Gangetic Plains, with distinctive characteristics to the regional climate and soil. India The application further emphasised the historical and cultural ties with the product, seeking exclusive rights over the product in the EU market. 

However, in 2022, Pakistan retaliated with its application for GI status, stating that the two counties share a common cultural heritage of growing basmati rice, while the word itself had always referred to long-grain rice coming from both regions.  As a result, narratives clashed, with India stressing its distinct cultural ties and Pakistan pressing for acknowledgement of a common agricultural past. 

Geographical indications are regarded as critical tools for the establishment of IPRs for items originating in a certain geographical area to attribute distinctive features, reputations, or qualities to that region. A Protected Geographical Indication (PGI) is defined in the Paris Convention for the Protection of Industrial Property and the Agreement on Trade-Related Aspects of Intellectual Property Rights as the link between geographic location and the name of a product.  PGI status provides legally recognised protection against derivation and exploitation not just inside EU member states, but also in non-EU countries that have signed protection agreements. 

Source: Nikki Asia

In the following years as the dispute over basmati GI Status intensified, India faced substantial challenges in obtaining exclusive rights. In 2023, New Zealand and Australia denied India's trademark registration equal to GI for basmati rice, citing the fact that fragrant rice is farmed in several nations, making it difficult for any single country to claim exclusive rights. This setback sparked worries about India's ability to preserve its cultural and economic interests in the lucrative global basmati industry, valued at over ₹50,000 crores (around $6.1 billion) every year. 

Pakistan’s aggressive pricing strategy has managed to capture a significant portion of the basmati market of the EU, with exports reaching around 200,000 tons in 2022 as compared to the the previous year. This has further stretched India's export capacities, with basmati rice shipments to the EU falling to around 1.7 million tonnes in 2022-23, down from 2 million tonnes the previous year. Despite the establishment of a minimum export price (MEP) last year, India's competitiveness has suffered because the majority of its basmati exports go to the UAE, Iran, and other Gulf nations. Securing GI designation is critical to assuring higher pricing for millions of farmers in India's designated basmati-producing areas. 

After learning of Pakistan's EU application for basmati GI status, India quickly mobilised its government, including the Ministries of Commerce, Agriculture, and ICAR, to strategise. Proposals to extend India's basmati districts were met with opposition, with authorities arguing for the preservation of existing areas based on geography and climate. India openly contested Pakistan's claim, citing the 2008 Joint Group agreement, which limited Pakistan's recognised basmati areas to 14 districts. Three objections were made by the Indian government, Nepal, and Madhya Pradesh. While India's legal appeal is ongoing, recent denials of its basmati trademark applications by New Zealand and Australia have raised concerns. 

The European Commission plays a pivotal role in adjudicating geographical indication (GI) disputes, with the current status of Basmati's PGI application at the consultation stage. India initially sought a three-month extension and has now requested additional time. If an amicable resolution is not reached, the next step will involve a tribunal within the Directorate-General for Agriculture of the European Commission. The outcome of this decision will significantly impact the dynamics of basmati exports and pricing in the EU market. Italy's opposition to Pakistan's PGI claim, supported by several EU member states, underscores the complexities of international negotiations and the competing interests involved. 

The GI status of basmati rice encapsulates broader themes of cultural identity, economic rivalry, and the complexities of international trade between India and Pakistan. As both nations navigate the challenges posed by intellectual property rights, the stakes are high. Despite the potential for a collaborative approach, similar to the Maasvallei Limburg wine cases, reaching a mutual solution seems unlikely given the historical tensions. Consequently, the ongoing dispute over basmati rice will continue to be a significant issue, affecting not only its future but also shedding light on the intricate relationship between culture and agriculture within an increasingly interconnected global trading landscape.


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References:

Biswakarma, S. (2021, July 6). Who owns basmati rice? India-Pakistan battle over GI rights. IP Watchdog. https://ipwatchdog.com/2021/07/06/owns-basmati-rice-india-pakistan-battle-gi-rights/id=135213/

Cascone, S. (2024, September 25). Zoo seeks to trademark the image of Moo Deng, the baby pygmy hippo who has become an online sensation. Artnet News. https://news.artnet.com/art-world/zoo-trademark-moo-deng-hippo-image-2542741

Dieterich, C. (2024, February 26). The basmati rice war between India and Pakistan. Le Monde. https://www.lemonde.fr/en/economy/article/2024/02/26/the-basmati-rice-war-between-india-and-pakistan_6558917_19.html

Ghosh, S. (2024, October 5). Delhi HC rules in favour of Pak firm, directs cancellation of J&K company’s trademark. The Indian Express. https://indianexpress.com/article/cities/delhi/delhi-hc-rules-in-favour-of-pak-firm-directs-cancellation-of-jk-companys-trademark-9604326/

Haq, M. (2020, October 21). Basmati rice row marks latest front in India-Pakistan rivalry. Nikkei Asia. https://asia.nikkei.com/Politics/International-relations/Basmati-rice-row-marks-latest-front-in-India-Pakistan-rivalry

Janjua, H. (2020, November 4). Pakistan and India in row over the right to basmati rice. The Times. https://www.thetimes.com/world/asia/article/pakistan-and-india-in-row-over-the-right-to-basmati-rice-t7bjtps0b

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Phan, B. (2024, October 2). What the "Flowers" lawsuit teaches us about copyright. The Fordham Ram. https://thefordhamram.com/opinion/what-flowers-lawsuit-teaches-us-about-copyright/

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TOI Tech Desk. (2024, October 6). Apple wins iPhone security patent dispute in US: Here’s what happened. The Times of India. https://timesofindia.indiatimes.com/technology/tech-news/apple-wins-iphone-security-patent-dispute-in-us-heres-what-happened/articleshow/113966841.cms


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