May 19, 2021
India has now got the opportunity to protect the Geographical Indication (GI) tag for Basmati rice in the European Union (EU) after the EU-Indian officials’ summit on May 8.
Soon after the summit, an EU-India joint statement was issued in which there was a clear indication of India adamant to get the GI tag for Basmati or at least get concessions in marketing the long grain rice in the EU.
The joint statement said: “We recognized our mutual interest in protecting geographical indications. In this regard, we underlined the benefits of a balanced bilateral agreement on the protection of geographical indications. We look forward to the early conclusion of the Memorandum of Understanding between the EU Intellectual Property Office and Department of Promotion of Industry and Internal Trade.
Both the sides have also left themselves ample scope to negotiate the issue of GI tag for Basmati rice as well as EU demand for market access to its products in the joint text. These issues are expected to be followed up and carried forward in subsequent interactions, negotiations, and talks.
India and the EU have agreed that to create the required positive dynamic for negotiations, it is imperative to find solutions to longstanding market access issues and also for the launch of negotiations on a stand-alone investment protection agreement. The two zones have also agreed to start negotiations on a separate agreement on geographical indications which could be concluded separately or integrated into the trade agreement, depending on the pace of negotiations.
This is seen as an indication where India could seek GI tag for its Basmati rice, besides exclusive marketing rights for Alphonso mangoes and Darjeeling tea.
Basmati exports are key for India as they contributed $4.06 million (₹29,849 crores) during the last fiscal. Its per-unit value at $868 (₹63,575) per ton was more than double that of non-Basmati rice whose value was $366 (₹26,800).
The issue over the GI tag for Basmati in the EU is that Pakistan has also laid claim to it. India registered for the GI tag in August last year and Pakistan led a counter in December last year. As per EU regulations, both nations had six months till May 8 to negotiate the issue but the deadline expired without any progress.
During the same time, the India-EU summit was held, raising hopes of a political settlement. Indian authorities believe that Basmati exports to the EU could double from the current $250 million (₹1,831 crore). Last fiscal, the EU imported nearly 2.88 lakh tonnes of Basmati rice than the previous one compared with 2.11 lakh tons.