Pakistani rice exporters challenge Indian claim over basmati in EU

Commerce Adviser Razak Dawood says Pakistan will defend its case with due diligence and commitment

By
Web Desk
|
Flies sit on rice being sold in a market in Karachi. Photo: AFP

KARACHI: Pakistani exporters have filed a "detailed response” to the European Union in a Notice of Opposition against the Indian claim over the geographical indicator (GI) tag of Basmati rice in the bloc.

Last month, India had asked the EU to recognise the fragrant, long-grain staple as originating in seven Indian states and territories, which would give its producers exclusive rights to the Basmati label in the lucrative European market. 

Pakistan rejected India’s claim, arguing that its farmers also grow Basmati rice.

“Rice Exporters Association of Pakistan [REAP] has filed a Notice of Opposition on (December 7) against India’s claim on GI of Basmati in the EU,” the association said on Tuesday in a statement.

Read more: Significant growth in home textiles, pharmaceuticals & other exports: Abdul Razak Dawood

“REAP has taken this step on behalf of rice exporters and farmers of Pakistan who are at the risk of losing a billion-dollars’ worth of income,” the statement read, according to a report byThe News.

Since 2006, the EU has applied zero tariffs on rice imported into the bloc that has been authenticated by either Pakistani or Indian authorities as genuine Basmati.

Pakistan has a thriving export industry of Basmati, making the country one of the top five exporters of rice in the world.

REAP said it has previously been involved in developing and revising the UK Code of Practice and arranging trade delegations abroad to foster the export of Basmati from Pakistan.

“India had sought the protection of its Basmati as a GI product in the EU in a mala fide attempt to deter Pakistan’s growing export and appreciation of Basmati.”

Commerce Adviser Abdul Razak Dawood confirmed that Pakistan has filed its claim and assured exporters that the government will support their stance.

“I wish to inform that Pakistan has filed its opposition against the Indian application to European Commission for granting exclusive rights on the use of Basmati for its rice exports to European Union. We assure the rice community that we will defend our case with due diligence and commitment," he wrote on Twitter.

Read more: Pakistan among top five countries with most investment in first half of 2020: World Bank

‘EU importers favour Pakistani rice’

Pakistan’s export of Basmati to EU has almost doubled in the last five years and it has outpaced India’s exports of it.

The importers and customers in the EU appreciate Pakistan’s Basmati more than that of India due to its exotic aroma, sweeter taste and soft texture and above all in terms of food safety including pesticides which has resulted in increased demand.

Basmati, being a centuries-old heritage of Pakistan, could not be allowed to be monopolised by India in the European market.

“Such a gross misrepresentation by India on the origins of Basmati is an attack on the values of fair competition among farmers and exporters in EU,” the statement added.

Pakistan has a legal right to export Basmati with its original name in accordance with the practice in the EU which is decades old. The European importers have also raised their objections against the Indian stance, and in support of Pakistan.

The statement said REAP is striving for an early legislation on the GI rules in Pakistan along with the Ministry of Commerce.

“It will enable Pakistan’s exporters and farmers of Basmati to prevent their product from being used by the same name in international markets.”

REAP said an internally registered GI of Basmati will strengthen Pakistan’s case in the coming legal stages in the EU.