Rice exporters prepare case to retain share in EU market

KARACHI: Pakistani rice exporters are bulking up arguments to thwart India’s bid to obtain exclusive geographical indication (GI) tag for basmati rice in the European Union (EU), an industry’s representative said on Thursday.

The spokesperson of Rice Exporters Association of Pakistan (Reap) said the association is fighting the battle against India’s claim on GI of Basmati in the EU. After the announcement of application of India for GI in European Journal, the first step was to stop India from proceeding further in its registration of GI in European Commission by filing a notice of opposition.

“This is the first step which effectively maintains the status quo, whereby making the applicant’s approval of GI conditional on the decision of DG Agriculture European Commission (DG Agri),” said the spokesperson.

Last week, Reap filed a notice of opposition against India’s claim on GI of Basmati in European Union. The European Union has also acknowledged the filings of the ‘notice of opposition’ by Reap,

“Reap is at this second step and preparing a reasoned statement to file, within 60 days as required. At the third step, hearings and other proceedings will start after this period of 60 days elapses, which will be in February 2021,” said the spokesperson. “The final decision on the registration of GI of Basmati will be delivered after the hearings. As the case in the EU progresses, Reap will keep on updating on all the developments.”

India, last month, 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 rejects India’s claim, arguing that its farmers also grow basmati rice.

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.

Rice exports from Pakistan amounted to $2.3 billion, up five percent year-on-year during the last fiscal year of 2019/20, according to the State Bank of Pakistan’s (SBP) foreign trade report. Overall, food exports fell more than 5 percent to $4.3 billion in FY2020 from $4.6 billion in 2018/19, according to the PBS.

“Basmati could not be allowed to be monopolised by India in the European market. Such gross misrepresentation by India on the origins of Basmati is an attack on the values of fair competition among farmers and exporters in the EU,” said the Reap’s spokesperson.

“Pakistan has a legal right to export Basmati with its original name in accordance with the practice in the EU which is decades old.”