This article is written by Srishti Sinha, a student at the Institute of Law, Nirma University. This article is concerned with the GI application of Basmati Rice from India’s side to the European Union. Also, it mentions various hurdles and opposition claims.

Introduction

From Biryani to Pulao, Pakistan and India’s shared culinary landscape is defined by Basmati, distinctive long-grain rice at the center of the latest tussle between the bitter rivals. But what is the cause behind this tussle? India applied to the European Union’s Council on Quality Schemes for Agricultural and Foodstuffs for a unique Geographical Indications designation for Indian-origin Basmati Rice. 

Basmati cultivation is governed by geography in India. The states and union territories of Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Chandigarh, Delhi, Uttarakhand, and Uttar Pradesh make up the ‘Basmati growing region.’ This region’s chilly climate is ideal for Basmati production. 

So, what role does Pakistan play in all of this? The Kalar bowl, a piece of territory in the interfluve between the Ravi and the Chenab rivers that includes, Narowal, Sialkot, Gujranwala, Hafizabad, and Sheikhupura in Punjab province, appears to have a Basmati belt as well. It turns out that India controls 65% of the worldwide Basmati market, while Pakistan controls the remaining 35%.

In reality, since the EU decreased the allowable amounts of pesticides on imported agricultural goods in 2018, Pakistan’s exports to the EU have nearly doubled in three years, while India has regularly failed the tests. Basmati is a product that both India and Pakistan export. According to the Union Ministry of Commerce and Industry, India produced 7.5 million tonnes of basmati in 2019-20, 61% of which was exported, earning the country Rs 31,025 crore. According to the Pakistan Bureau of Statistics, Pakistan exported 0.89 million tonnes of basmati in 2019-20. Even though Pakistan is a large producer of Basmati Rice, if India receives the GI label, it would essentially be shut out of the European market for Basmati Rice. This is the major reason for the tussle between the two countries.

Geographical Indications : An overview

A geographical indication (GI) is a label applied to items that have a specific geographical origin and have attributes or a reputation related to that origin. A sign must identify a product as coming from a certain location to serve as a GI. Furthermore, the product’s features, attributes, or reputation should be primarily owing to its origin. There is an obvious relationship between the product and its original site of production since the characteristics are dependent on the geographical location of production.

Article 22 of the TRIPS Agreements defines Geographical Indication as “indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristics of the good is essentially attributable to its geographical origin“.

In 1999, India implemented sui-generis law for the protection of geographical indications after becoming a member of the TRIPS Agreement. The Geographical Indications of Goods (Registration and Protection) Act of 1999 has three main objectives, namely: 

• By enacting particular legislation in the nation that governs the geographical indication of goods and sufficiently protects the interests of producers of such items.
• To prevent unauthorized individuals from abusing geographical indications and deception of customers.
• To promote items carrying Indian Geographical Indications in the overseas market.

A registered Geographical Indication prohibits a third party from using the Geographical Indication in any way in the designations or presentations of products that suggest that the items are from a certain geographical location. For example, Darjeeling Tea (Word) is a recognized Geographical Indication under Geographical Indication Registration No. 1 or Geographical Indication Registration No. 2. As a result, the Tea Board, Registered Proprietor of Darjeeling Tea, has the authority to prohibit any third party from using the term “Darjeeling” for tea that does not originate in their gardens or is not produced under the standards outlined in the registered Geographical Indication’s code of practice. Apart from Darjeeling tea; Kandhamal Haldi (Chennai), Gobindobhog Rice (West Bengal), Pochampally Ikat (Andhra Pradesh) and Banaganapalle Mangoes (Andhra Pradesh) are some of the recent GI tagged items from India. 

Protection of Geographical Indications

Sui generis systems (i.e., unique protection regimes), collective or certification marks, and techniques concentrating on business activities, such as administrative product approval schemes, are the three major approaches to preserve a geographical indicator. There are variations in these methods when it comes to crucial issues like the prerequisites for protection and the extent of protection. Sui generis systems and collective or certification mark systems, on the other hand, share certain common aspects, such as the fact that they provide rights for collective use by those who conform with established criteria. 

In general, geographical indications are protected in different nations and regional systems using many techniques, with many of the approaches mentioned above being used in combination. These methods were created in line with various legal traditions and within the context of unique historical and economic circumstances.

Importance of Basmati Rice in India and Pakistan economy

Agriculture, manufacturing, and commerce are the three primary sectors that support the country’s economy. Rice is important in the country’s agricultural economy and plays a significant part in the agro-based economy. Let us look over the importance of Basmati Rice in India’s as well as Pakistan’s economy.

Indian economy

The Indian economy’s most important industry is agriculture. India’s agriculture employs half of the country’s workers. India is the world’s largest rice grower. It is regarded as the most fundamental food crop, and it thrives in hot and humid climates. Rice, a key food grain, is a significant producer and exporter in India. The growth of rice production is prioritized in terms of economic development. In India, several rice suppliers play an important part in the country’s economic growth. 

Rice consumption is the most important commodity and has a significant impact on poverty levels. As a result, the impoverished can meet their necessities. Also, investing in necessities such as food, might be advantageous to the Indian economy.

Price fluctuations in rice can influence people’s purchasing decisions and, as a result, on poverty levels. The timing of the rice harvest has a significant impact on price fluctuations. Rice prices will fall if the supply of grain increases. In other words, the amount of income influences the demand for rice in the form of a function of pricing.

Rice farming places Basmati in a unique position. It’s a fragrant rice type with long, thin grains. Basmati Rice is mostly cultivated in India for export. This product’s export generates a significant quantity of revenue. India is the world’s leading producer and exporter of Basmati Rice. It produces 75 percent of the world’s Basmati Rice. India exported 4.4 million tonnes of Basmati Rice worth USD 4.7 billion in the fiscal year 2018-19. Comparatively, even if we sell 7.5 million tonnes of non-Basmati Rice, which is nearly double the quantity of Basmati Rice sold, our country generates USD 3 billion. As a result, the significance of Basmati Rice production in our country and on our country’s economy is very important.

Pakistan economy

Agriculture, manufacturing, and commerce are the three primary sectors that support the country’s economy. Cotton, wheat, rice, and maize are Pakistan’s main cash crops. Rice is the country’s second most significant commodity, bringing economic success to growers and farmers while also earning billions of rupees through export. Rice was important in the country’s agricultural economy and played a significant part in the agro-based economy. Pakistan is the 11th largest producer and exporter of rice in the world. In Pakistan, rice contributed 3.2 percent of agricultural value-added and 0.7 percent of GDP. In Pakistan, two varieties of rice were being grown. Basmati Rice was well-known in the country for its exceptional cooking quality and strong national and worldwide commercial potential. During the 2014-15 growing season, rice was planted on 2.847 million hectares, up 3.1 percent from the previous year. Rice output was estimated at 6.9 million tonnes during the same period, up 1.5 percent from the previous year’s 6.7 million tonnes. Rice exports generated USD 1.848 billion in foreign exchange during the same time. The assessment noted the importance of Basmati Rice as well as its export implications.

The battle between India and Pakistan

The fragrant, long-grain rice known as ‘Basmati’ has recently been another point of contention between India and Pakistan. It isn’t the first time a European GI registration for Basmati has made headlines, nor is it the first time India and Pakistan have clashed over a GI. The GI registration of Pashmina has previously been a controversial subject. At the time, India had intended to register Pashmina as a GI in India, and a Pakistani organization had objected, claiming that Pashmina was also made in Pakistan. In the end, India got the GI tag for Pashmina. 

In 2008, India and Pakistan discussed submitting a combined application to the EU to register Basmati as a GI. However, due to growing tensions between the two countries following the 26/11 Mumbai attacks, it was unable to be realized. Coincidentally, the Agricultural and Processed Food Products Export Development Authority (hereafter ‘APEDA’) applied for Basmati’s domestic GI registration on the same day, and the GI was granted in its favor in 2016.

Later in July 2018, India applied to the European Commission for Basmati to be designated as a Protected Geographical Indicator (PGI). This registration application was published in the Official Journal of European Union on September 11th, 2020, and it can be challenged within three months after publication, with a reasoned statement of opposition due within two months following the notice. India’s GI registration in the EU will impact Pakistani exporters, and hence, Pakistan intends to fight the application vigorously.

India’s application to European Commission

In its application, India stated that “Basmati is produced in a particular geographical region of the Indian-subcontinent”. This demonstrates that India has not claimed to be the only country that grows Basmati or the only country qualified for a Basmati Geographical Indication. However, granting this proposal in India’s favor might result in it being granted sole GI status. Also, in the application, India has complied satisfactorily with the requirements for product specification provided under Article 7(1) of the Regulation (EU) No 1151/2012 of The European Parliament and of the Council (hereinafter ‘the Regulation’). 

In December 2019, the Indian claim to the EU was contested, with Pakistan’s primary point being that Basmati Rice was a joint product of India and Pakistan. However, International laws say that before registering a product on the worldwide market, it must first be protected by the country’s geographical indication regulations. So, in March 2020, Pakistan passed the Geographical Indications (Registration and Protection) Act, 2020, which allows it to contest India’s claim for exclusive rights to Basmati Rice. The significance of the GI tag for its Basmati would strengthen the case of Pakistan in the EU. 

Possible grounds of opposition by Pakistan

Pakistan may use several arguments in objection to India’s application. The method for filing an objection is outlined in Article 51 of the Regulation, whereas the reasons for filing an objection are outlined in Article 10. Four reasons for objection are listed in Article 10(1):

• First, Article 10(1)(a) requires the opposing party to prove that the fundamental eligibility requirements (under Art 5) and product specification requirements (under Art 7(1)) have not been satisfied — yet India appears to have met all of the requirements for PGI status on the surface. 
• Second, Article 10(1)(b) examines whether the proposed name is incompatible with the names of plant types and animal breeds, as well as homonyms and trademarks. Basmati does not clash with the names of any of the above-mentioned groups, thus this basis cannot be used.
• Third, according to Article 10(1)(c), the opposing party must show that the registration will jeopardize the existence of items that have been legitimately on the market for at least five years before the publication date. Pakistan may prove this claim since, under a 2004 European Council resolution relating to a Pakistan-EU agreement, duty-free imports of specific kinds of Basmati from Pakistan are permitted into the EU.
• Fourth, Article 10(1)(d) addresses the supply of evidence that can be used to determine if Basmati is a generic word. APEDA’s aggressive pursuit of attempted registrations across the world, as well as its involvement in preventing dilution of the Basmati GI, might be a significant case in India’s favor. But Pakistan can claim that APEDA Act has power under Section 10A of the Act to protect the Basmati’s GI status “in India and outside India”.

These grounds of opposition by Pakistan can act as hurdles in the GI application of India on Basmati Rice.

Conclusion

From the above discussions, we can conclude that if Pakistan’s resistance fails, India stands to benefit greatly as the EU’s sole GI holder for Basmati Rice. There are several advantages to having a PGI designation, and Article 13 of the Regulation outlines the “protection” that a registered GI holder in the EU has. It stipulates that a PGI ‘shall not become generic’ and even prohibits the use of the term ‘Basmati’ in conjunction with phrases like “style,” “type,” “method,” “as produced in,” “imitation,” or similar. This implies that if India receives GI protection, Pakistan will be unable to sell its Basmati in the EU, even if it is labeled as “Pakistan Basmati” or “Basmati made in Pakistan.” 

References

• https://www.ssibasmati.com/role-of-rice-in-indian-economy
• https://www.mondaq.com/india/trademark/688456/protection-of-geographical-indications
• https://doi.org/10.4172/2375-4338.1000192
• https://spicyip.com/2020/11/india-vs-pakistan-dispute-over-basmatis-gi-registration-in-the-european-union.html

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