Indian Exporters Demand Basmati GI Protection
Indian basmati rice exporters are demanding the creation of a dedicated government board to protect the country's Geographical Indication (GI) tag for basmati. The push comes amid non-recognition of the GI in markets like Australia, New Zealand, and Kenya, as well as slow progress in the EU. Exporters are concerned about competition from Pakistan and are advocating for stronger quality control to safeguard the premium status of Indian basmati.
- India, which accounts for approximately 65-70% of the global basmati rice trade, received its domestic Geographical Indication (GI) tag for basmati in 2016. Pakistan, responsible for the remaining 30-35%, secured its own domestic GI tag in January 2021. This move was crucial for Pakistan to formally contest India's application for exclusive recognition in the European Union. - The dispute in the EU began after India applied for an exclusive GI tag in 2018. Pakistan filed a notice of opposition in late 2020, arguing that basmati is a product of joint heritage. The EU has urged both nations to negotiate a joint application, a solution that was previously discussed in 2008 but abandoned after the Mumbai terrorist attacks. - In the fiscal year 2024-25, India exported basmati rice worth approximately $5.87 billion, an increase from the previous year. The top importers of Indian basmati are Middle Eastern countries, with Saudi Arabia, Iraq, and Iran being the largest buyers. - The European Union is poised to implement a "safeguard mechanism" starting January 1, 2027, which could trigger higher import duties on rice from India, Pakistan, and other Asian suppliers if import volumes significantly exceed historical averages. This measure is intended to protect EU farmers and millers. - India's efforts to gain exclusive GI recognition have been challenged in other key markets. In a significant ruling, New Zealand's High Court dismissed India's appeal for exclusive certification in November 2025, recognizing that basmati is grown in both India and Pakistan. This decision is expected to strengthen Pakistan's position in ongoing disputes in other jurisdictions like Australia. - European food regulations on pesticide residues have impacted both countries. In 2018, the EU lowered the maximum residue level (MRL) for the fungicide tricyclazole, affecting Indian exports. The frequency of pesticide testing for shipments from both India and Pakistan has fluctuated, creating shifts in market competitiveness. - The All India Rice Exporters' Association (AIREA) has previously raised concerns about government-imposed minimum export prices (MEP), arguing that such measures impact competitiveness. In August 2023, India set an MEP of $1,200 per ton, which was later reduced to $950 in October of the same year following industry pressure.
