India Appeals EU Court Over Basmati Rice PGI Dispute
India has escalated its basmati rice dispute with Pakistan by filing an appeal with the European Court of Justice. This legal move comes after the European Union declined India’s request to access supplementary documents submitted by Pakistan for its Protected Geographical Indication (PGI) application. The EU justified its decision by citing Regulation 1049/2001, which protects commercial interests and international relations, particularly with Islamabad.
The dispute began when India’s Agricultural and Processed Food Products Export Development Authority (APEDA) sought confirmation of Pakistan’s PGI application. The EU’s refusal to share critical appendices has raised concerns over transparency in the geographical indication process. India argues that access to these documents is crucial to challenge Pakistan’s basmati rice claims effectively.
Basmati rice, known for its unique aroma and long grains, holds significant economic and cultural value for both India and Pakistan. It is a key export commodity to markets such as the Middle East, the United States, and Europe. Pakistan has recently achieved record-breaking rice export growth, with volumes rising by 62% and values by 83% during the fiscal year 2023-2024. This growth is largely attributed to Pakistan’s highest-ever domestic rice production and India’s restrictive export policies, including an export ban on certain rice varieties and a 20% tax on parboiled rice. These policies have inadvertently allowed Pakistan to capture a larger share of the global rice market by offering high-quality basmati at competitive prices.
The legal dispute over PGI status underscores the broader economic and geopolitical dynamics between India and Pakistan. Securing PGI recognition for basmati rice is critical for both countries as it enhances market access, establishes authenticity, and protects the reputation of the product in international trade. While Pakistan has gained momentum in global rice exports, India’s appeal seeks to ensure that the geographical indication process remains fair and transparent.
The outcome of this case at the European Court of Justice could significantly impact both countries’ export strategies and their standing in the global rice market. For India, it represents an opportunity to safeguard its long-standing association with basmati rice, while for Pakistan, it is a chance to solidify its position as a key player in basmati exports. The dispute highlights the complexities of international trade regulations and the importance of geographical indications in protecting regional specialties.