The article is written by Neha Gupta, Institute of Management Studies, CCS University, 4th semester of 3-year Law college during her internship with Ledroit India.
Scope of Article
- Basmati
- Geographical Indication
- Filing of Application
- Areas of Cultivation of the Basmati Rice
- A grain of contention between India and Pakistan may shape EU trade
ABSTRACT
This article highlights the importance of geographical indication which is a part of intellectual property rights. Geographical Indication is a sign and an identification of a product that, the specific product belongs to a particular specified region and it has attributes and qualities denoting the nature, name, identity of that particular region. For examples Darjeeling tea, Champagne belongs to unique specific regions, hereby they have their unique specification and qualities. The article is based on worldwide famous Basmati rice, which had conflict of interest related to geographical indication issues and the conflict that arose between India and Pakistan and concluded to which country the Basmati rice belongs. There were real clashes, contradictions and arguments regarding this issue.
Basmati Rice
Basmati rice has made the presence world famous with its uniqueness, fragrance, fluffy texture, taste, distinctive nutty flavour. A Basmati rice is derived ‘Sanskrit’ meaning fragrance and is famous due to its aromatic qualities. It is not like a common rice, it has special attributes, uniqueness, aromatic qualities, fluffy texture, distinct shape, distinctive fluffy texture, softness while eating that, makes it distinctive and unique in nature. Basmati rice is being commonly used in various Indian and Middle East cuisines and is multi-famous and is used in various dishes. Basmati rice is a long grain aromatic rice traditionally grown in the Himalayan foothills of the Indian subcontinent particularly in northern India and Pakistan.
Geographical Indication
Geographical Indication is a sign a particular product or thing that, the product belongs to a specific area/ region. Therefore, that product has distinctive character, uniqueness and characteristics that they belong to that particular specific region. The product has its own uniqueness and attributes that highlights its existence stating their uniqueness and a sign that they belong to a particular region. For example, Darjeeling tea, Champagne etc. It is the identification and sign of a product that make it distinctive and in specific characteristics and attributes and highlights the uniqueness of the product that, states that, the product belongs to a particular specific region.
Filing of application
Please check whether the indication comes within the ambit of the definition of a Gl under section 2(1)(e).
The association of persons or producers or any organization or authority should represent the interest of producers of the concerned goods and should file an affidavit how the applicant claims to represent their interest.
- Application must be made in triplicate.
- The application shall be signed by the applicant or his agent and must be accompanied by a statement of case.
- Details of the special characteristics and how those standards are maintained.
- Three certified copies of the map of the region to which the GI relates.
- Details of the inspection structure if any to regulate the use of the GI in the territory to which it relates.
- Give details of all the applicant together with address. If there is a large number of producers a collective reference to all the producers of the goods may be made in the application and the G.I., If registered will be indicated accordingly in the register.
Areas of Cultivation of Basmati Rice
The country has exported 6065483.45 MT of Basmati Rice to the world for the worth of Rs. 50312.01 Crores/ 5944.42 US$ Millions during the year 2024-25.
India has been a leading exporter of Basmati Rice in the global trade market all over the world and has arise profits and revenue via the generation and growth of Basmati rice and cultivation of Basmati Rice. India is widely contributing to the trade market of the world and has been a huge exporter of Basmati Rice.
Basmati Rice is not a normal rice, it is unique and have its own unique attributes, qualities and characteristics. Basmati rice is world widely famous due to its presence and existence all over the world. The import and export of Basmati Rice is also been done all over the world and many countries are generating wealth, increasing their gross domestic product via the sale, purchase, export, import and cultivation of Basmati Rice all over the world and the trade is done.
A grain of contention between India and Pakistan may shape EU trade
In the 2024-25, India had exported basmati rice worth ₹6,374 crores to Iran, which accounted for 12.6% share of India’s total basmati exports in 2024-25.
There has been huge tension, conflicts, disputes and disagreements between two worldwide nations Pakistan and India, they both are cultivators and producers of basmati rice and have been producing Basmati Rice a traditional mark and making it exports all over the world. Both Pakistan and India have exclusive rights over the production and cultivation of Basmati Rice, therefore, there is a rising dispute two nations that is Pakistan and India to whom the Basmati rice and under which jurisdiction and premises it comes.
There are a huge dispute and disagreement which has been raised between the two nations. Hence, European Union will take a step further in deciding to whom the Basmati Rice belong and to whom the geographical indication of intellectual property rights will be provided. They will take a further step in deciding to which nation that is, Pakistan and India the geographical indication of Basmati rice belongs to.
The conflict and tension between the two nations that are Pakistan and India, has been led to disputes among the nations, for the protected status of Basmati Rice, to which nation does the basmati rice belongs. It is posing challenges to New Delhi’s efforts to execute a trade agreement with European Union.
Both the nations want to limit the label of Basmati Rice as a geographical indication to their respective jurisdictions. Both the countries claim exclusive rights over the production, cultivation, import and export of the Basmati Rice. They want to address Basmati Rice as their geographical indication in respect to intellectual property rights. Therefore, the selling, exports of Basmati rice will be considered of their jurisdiction. This would allow producers in those areas to sell it at higher prices.
Geographical Indication plays a crucial role in these objectives. With increasing market competition and consumer demand, manufacturers must protect products like tea and coffee through the trademark system. The Basmati dispute is a complex issue with significant economic and political implications for India and Pakistan. Finally, it is the EU that will finalize the future of the basmati rice market.
The GI system can play a supportive role in achieving these objectives. A comprehensive assessment of potential GIs and their impact on communities and markets is crucial. This will provide valuable insights supporting the need for legislative measures to boost rural entrepreneurship in agriculture-dependent economies like Pakistan.
EU can issue GI to both India and Pakistan if both countries agree to a joint GI, which will allow both to use the name but with specific quality standards and geographical restrictions. Alternatively, the EU can issue separate GIs to both countries for their respective basmati rice varieties, with different names or geographical designations. More interesting is are expected as the case progresses in the EU which will likely determine the future of the basmati rice market and the potential of both countries to protect their interests.
Basmati is recognized since 2006 as a product of both India and Pakistan in the European rice regime and its duty-free regime. Wikipedia and Cambridge dictionary indicate basmati origin from Pakistan and India. Pakistan is partner of the repute and origin of Basmati outside India, as recognized in EU’s 2004 agreement16 with India and Pakistan, APEDA’s own observations in the ‘Sir Basmati’ trademark dispute before the CJEU17, and several scholarly works (Saxena and Surabhi 2020). Both countries fought jointly against RiceTec in USA. Hence, attesting that ‘the geographical area’ under Article 8 of the Regulation is restricted to India appears challenging (Saxena and Surabhi 2020). APEDA application for a certification trademark for basmati in Australia was rejected in 2023 as Basmati rice is not grown only in India. Pakistan did not contest the India’s application in Australia (Abbas 2024). During prosecution, and at a hearing before a delegate of the registrar of trade marks, basmati was found not to be capable of distinguishing rice goods certified by APEDA from uncertified rice goods based on the ordinary signification of the word being a specific variety of rice. Delegate indicated that other traders have a legitimate desire to use ‘Basmati’ for rice, and rice derived products that are not certified by APEDA. The decision stated “at most, the evidence demonstrates that Basmati may distinguish, amongst a proportion of the Australian market, particular rice of Indian origin from rice of Indian origin that is not so certified. However, it does not demonstrate that Basmati more broadly distinguishes rice certified by [APEDA] from rice not so certified by other traders who have an equally valid claim to use the same term” (Currey and Mathew 2023).
India is gearing up to challenge Pakistan’s attempts to broaden the geographical indication (GI) tag for its Basmati rice. The extension of the GI tag for the premium variety of rice, from 14 to 48 districts in Pakistan, could have significant implications on India’s export prospects to the European Union (EU).
According to people in the know, the Union commerce ministry is actively strategizing to counter Islamabad’s bid at the European Commission (EC).
“A comprehensive report to completely refute Pakistan’s claim is being finalized through consultations with key stakeholders, including the Basmati Export Development Foundation, which is affiliated with the Agricultural and Processed Food Products Export Development Authority (APEDA), alongside the Indian Agricultural Research Institute (IARI), and association of rice exporters,” one of the people said.
The development comes amid New Delhi’s efforts to resolve all outstanding issues with the European Union (EU) for a bilateral free-trade agreement, with the eighth round of negotiations expected in May or early-June.
GI registration is key to access the European markets, offering benefits such as tariff relief within the 27-member bloc.
India submitted its GI registration application on 20 July 2018, predating Pakistan’s application on 24 August 2023. According to the standard intellectual property rights (IPR) registration process, stakeholders can oppose a registration within three months.
However, while the EC is yet to reach a final decision on India’s application, it was quick to publish Pakistan’s application for potential opposition on 23 February 2024. The commission is now considering registration based on all the available information from both countries.
Between 1 April 2023 and 31 January 2024, India exported 130,122 MT ($168 million) of Basmati to the EU, indicating robust demand for Indian basmati in the EU market. It also reflects the superior quality and popularity of this aromatic rice variety among member countries.
In FY22-23, India’s basmati trade soared to $4,787.50 million, with volumes of 4,558,972.23 MT, cementing India’s position as the world’s top exporter of Basmati rice. Major export markets included Saudi Arabia, Iran, Iraq, the United Arab Emirates, and Yemen.
“The case presented by Pakistan lacks a solid foundation, and is unlikely to be upheld in the EC. Pakistan had initially identified 14 districts as Basmati rice-producing districts, but suddenly increased this number to 48 without providing any scientific base,” said Vijay Setia, director, Chaman Lal Setia Exports, and the former president of All India Rice Exporters Association.
“Pakistan will face significant criticism over the issue in the EU, which may lead to embarrassment for their actions, Setia added.
According to an EC official, both India and Pakistan are seeking European GI protection for Basmati rice. “The EC will do its utmost to find a “balanced solution”, which could represent a win for all parties, in full compliance with existing rules,” he said in an email reply.
“If either any party opposes, the EU will ensure it is examined in line with standing procedures, and ensure the rights of all parties,” the EC official said.
However, Hamid Malik, a Lahore-based rice commodity specialist and founding partner, Agri Policy Research Institute, Islamabad, said: “Pakistan has always supported India at global forums in the fight against GI protection for Basmati, paving the way for the recognition of PUSA 1 as Basmati, that accounted for 60% of India’s total Basmati exports during 2008.”
“Pakistan will defend its case, including the 48 Basmati-growing districts, citing a verdict of the Delhi High Court pronounced on 25 April 2019 regarding the restriction of Basmati cultivation in the Indo-Gangetic Plains,” Malik said.
The book of specifications mentions 24 varieties, 49 growing districts and 13 principal features for basmati rice. ‘Basmati’ rice is grown in Pakistan from varieties that must comply with the following cumulative requirements of having at least one tradi tional ‘Basmati’ rice variety/land race in the lineage tree of breeding history; and registered under Pakistan’s Seeds Act 1976. Varieties having minimum one traditional ‘Basmati’ rice variety/land race in the lineage tree of breeding history are registered as ‘Basmati’ varieties under Pakistan’s Seeds Act 1976. Hence, all registered varieties should be derived from the “mother” variety ‘Basmati 370’ or a related land race.
