On 26 January 2021 Pakistan attained the Geographical Indicator (GI) tag for Basmati rice. This will assist their case against India, claiming GI for Basmati in the EU.
Basmati GI Tag
Basmati rice fetches a high price in the international market. Bearing that in mind, both India and Pakistan registered GI for Basmati at the EU. Initially, India, planning to block the Pakistan Basmati trade in EU, declared that India produced the geographically original Basmati. However, Pakistan, after taking notice of India’s move quickly tried to acquire GI Tag. As of now, Pakistan succeeded in obtaining the GI tag and thus strengthened its cases against India in the EU.
Pakistan Acquiring the GI Tag for Basmati Rice
After noticing India’s GI registration, Rice Exporters Association of Pakistan (REAP) quickly strategised. Accordingly, it prepared Basmati specifications along with the criteria of Basmati characteristics for every Pakistani Basmati producers. Following that, due to its involvement in the global export of Basmati, its insight regarding Basmati trade, characters, and regions is valuable. Subsequently, the Trade Development Authority of Pakistan (TDAP) proceeded with the registration of Basmati with IPO. Further, IPO with REAP mapped Basmati growing regions from all Pakistan provision. Finally, on 26 January Pakistan received the GI Tag for Basmati.
Pakistan Saves Export Revenue
By attaining the GI tag, Pakistan has saved over $1 billion from Basmati rice export to the EU. In 2020, Pakistan exported Basmati rice worth $2.2 billion. Further, now the GI Tag will protect their product, says PM Adviser Abdul Razak Dawood. Also, as an added benefit, their share in the international market is guaranteed.
In all, Pakistan is trying to block India from obtaining the Basmati trade rights because it will lose billions in rice export if India attains the trade rights.