ISLAMABAD: While Pakistan is going to officially challenge the Indian application for exclusive Geographical Indication (GI) tag for basmati rice in European Union (EU), the importers of Pakistani rice in the EU are also set to challenge the Indian move.
According to official sources at the Ministry of Commerce, Pakistan will be challenging the Indian application in the EU by the first week of December as almost all the required homework in this regard has been completed.
The process of appointing consulting firms for the same would be completed soon, they added.
Apart from the country’s formal objection to Indian application, brown rice millers in Europe, who import raw rice from Pakistan, would also file objection to Indian application, as granting the exclusive GI tag to Indian rice would damage their business.
“Indian rice off late has been facing resistance in European countries due to pesticides’ issue. This has forced the importers of brown rice to look towards Pakistan to meet their demand,” said a rice exporter.
He informed that India’s rice export to Europe had plunged by over 40 per cent during 2018-19 due to issues pertaining to maximum residue level (MRL). “India apparently wants to exclusively register its basmati so as to keep Pakistani products away from lucrative markets.”
According to sources, brown rice millers of Europe, especially in the UK, are concerned about the Indian application. The EU may take the millers’ application more seriously as compared to that of Pakistan since the EU would give priority to the interests of its millers, they added.
Compared to the finished rice being imported from Pakistan and India, the duty is relaxed on the import of raw rice. European millers usually prefer to import brown rice and sell the same after processing.
According to officials of Intellectual Property Organization (IPO) Pakistan, an attached department of Ministry of Commerce, the ministry has shortlisted two Brussels-based international law firms, Messrs Altius and Messrs Liedekerke Wolters Waelbroeck Kirkpatrick, to fight the country’s basmati GI tag case in the EU. Prime Minister Imran Khan is expected to announce the finalised option in the regard soon.
The government had decided to oppose India’s application demanding exclusive rights of claiming a GI tag to basmati rice in the EU on September 22. India had applied for the tag under Article 50(2)(a) of Regulation (EU) No 1151/2012 of the European Parliament and of the Council on Quality Schemes for Agricultural Products and Foodstuffs, mentioned in the EU official journal dated September 11.
The protection of geographical indications is aimed at boosting exports, helping support rural development in the country, and enhancing the livelihood of agriculture producers and skilled craftsmen.
The marketing of GI products also enhances secondary economic activities and boosts regional economic development. GI law protects local products such as the Peshawari chappals, Multani blue pottery, Hunza apricots, Hala ajrak, Kasuri methi, Chaman grapes, Turbat dates etc.
Currently, India and Pakistan have 65pc and 35pc shares of basmati in the world rice trade, respectively. Basmati rice fetches Pakistan around $800 million to $1 billion annually.
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Aside from OPPOSING Indian application in EU, Pakistan should also grant geographical indication protection to basmati at home. This could be done through stand alone/sui generis legislation.