EU to decide soon on GI tag for basmati but European mills oppose the move
The EU is reviewing PGI applications for basmati rice from India and Pakistan, but opposition from the Federation of European Rice Millers (FERM) complicates approval. India emphasizes cultural and traditional GI protection, while the EU focuses on premium marketing. Negotiations are slow, with disputes over sovereignty, FTA links, and SPS standards, delaying broader market access.
The European Union (EU) is in the final stages of evaluating the applications filed by India and Pakistan for the Protected Geographical Indication (PGI) tag for basmati rice, but the Federation of European Rice Millers (FERM) is against giving the tag.
If India gives the PGI or GI tag, it gives it exclusive rights to market the long-grained rice in the European Union. However, the European Commission told the Civil Dialogue Group (CDG) at a July 7 meeting that the progress on GI negotiations is slow.
The EU said it would take into consideration the arguments (for and against) to “deliver a fair and equitable decision” on the PGI application. FERM, a lobby of European rice millers, vehemently opposes the PGI tag for basmati as some of its members may not be able to sell basmati under brands they have created.
Setbacks
This creates more hurdles for India in getting the PGI tag in major economies such as the EU. “We seem to be having a serious problem with getting GI tag basmati as we are losing our cases in countries such as Kenya, New Zealand and Australia,” said an international trade analyst, who did not wish to be identified.
India and Pakistan are in a tussle to get the PGI tag from the EU for basmati rice. New Delhi filed its application for the PGI tag in July 2018. The EU notified it only in 2020.
Pakistan, on the other hand, filed its application for the GI tag in January 2024. The EU republished it in April 2024 under a different clause that gave Indian an advantage.
The EU has accepted Italy’s opposition, which means Pakistan could find it tough to get the PGI tag from the EU. Italian agricultural entrepreneurs’ associations Coldiretti and Filiera Italia argued with the EU that Pakistani Basmati poses risks such as “child labour, illegal pesticides, and dumping”.
Difference in approach
On the other hand, the EU has been pressuring India and Pakistan to jointly apply for the PGI tag. New Delhi, however, has rejected this since Pakistan has included Indian regions in its application, and this questions the sovereignty of the country.
The EU has been asking India to decouple the issue of PGI tag for basmati from the purview of the Indo-EU free trade agreement (FTA). But New Delhi will likely not agree with this proposal.
A trade analyst said there is a basic difference in the approach to GI between India and the EU. For the EU, the GI for a product is seen as an opportunity to fetch a premium. In the case of India, GI is linked to its culture and tradition, something which it will not be ready to compromise.
A trader wondered why any understanding on basmati rice with the United Kingdom is taking time, despite the FTA being signed.
GI tag in 21 nations
Recently, the Commerce Ministry told Parliament that it has got the GI tag for basmati in 21 countries. However, most of them are in Africa.
“Getting a GI tag for basmati in Africa won’t help our cause as they totally import less than 10,000 tonnes. We need a GI tag in countries in the Gulf,” said a trader.
The analyst wondered if EU negotiations of FTA can be held up for cars and steel, why can’t India insist on GI tag for basmati to move ahead with the deal?
“If the EU can hold up its deal with Mercosur (a trading block comprising Brazil, Argentina, Uruguay, Paraguay, Venezuela and Bolivia) on concerns over agriculture and food, why is it not sensitive to Indian agriculture and farmers?” the trader wondered, suggesting that India can follow the same strategy on EU’s demand for market access to its wines and spirits.
Trump’s remarks
Rice industry sources said though it is good on the part of India to get PGI registration in African countries, there is a need for protection in countries which import the long-grained rice in a big way.
The analyst said India is mixing basmati marketing strategy with trademark registration and PGI. “India needs a concerted approach rather than a piecemeal one,” he said.
The recent remarks ot US President Donald Trump on India dumping rice have surprised the rice industry.
On Monday, Commerce Secretary Rajesh Agrawal said India’s basmati rice export prices in the US are “very high compared to general export prices”.
“So prima facie there is no case of dumping in the US,” he told the media.
SPS clauses to remain
However, the industry suspects that Washington is probably trying to put hurdles in basmati exports. Recalling the incident in which rice grown in the US was claimed to be basmati, stakeholders wonder if Washington’s strategy is to foray into the Indian basmati market through tariffs and non-tariff barriers.
“Suppose if Trump imposes a 50 per cent tariff on basmati imports, its prices could be the same as US rice,” said the analyst.
In another development, the EU has told CELCAA, an umbrella organisation of European agricultural and agri-foods traders, that its sanitary and phyto-sanitary (SPS) rules are not negotiable in the FTA talks with India. “ …(They) will remain in place even after the FTA comes into force,” it has said.
CELCAA has been demanding strict Maximum Residue Limits (MRLs) for pesticides such as tricyclazole in imported basmati rice from India and Pakistan.
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Source : The Hindu Business line
