New Delhi. India and Pakistan are locked in a dispute over the Protected Geographical Indication (PGI) status of Basmati rice. This has stalled India’s trade agreement with the European Union (EU). The European Union is hesitant to take a decision on this matter, fearing it could escalate diplomatic tensions between India and Pakistan.

Application and Opposition
India applied for protection of the Basmati name in the European Union seven years ago. The aim was to allow only rice grown in specific regions of India to be called “Basmati.” In response, Pakistan filed a separate application in 2023, registering its opposition.

Pakistan’s claims refuted.
Pakistani media has claimed that countries like Australia and New Zealand have rejected India’s claim on Basmati rice and that the European Union will soon rule in Pakistan’s favor. India has completely rejected all these claims, calling them unsubstantiated misinformation.

India’s Historical Claim
India clearly believes that Basmati rice has historical and cultural ties only to India’s Himalayan foothills and Gangetic plains. India argues that Pakistan’s claim to it is completely baseless.

What is the impact on the export market
? – India is the world’s largest exporter of Basmati rice. In 2022-23, India exported 4.561 million tonnes of Basmati rice, worth $4.79 billion.
– Pakistan’s exports are lower than India’s, but due to the depreciation of its currency, the price of its rice in the international market has become more competitive than India’s.
– Pakistan’s share in markets like the European Union and the UK has reached approximately 85%.
– However, India still maintains a strong position in the markets of Iran, Saudi Arabia and other countries in West Asia, where there is a high demand for parboiled rice.