India’s Basmati rice is a highly regarded agricultural product known for its long grains and unique aroma. Recently, the All India Rice Exporters’ Association (AIREA) called on the government to safeguard the integrity of this flagship product. This appeal comes in response to efforts by the Madhya Pradesh (MP) state government to secure a Geographical Indication (GI) tag for Basmati rice grown in 13 districts of MP.
The Contention Over Geographical Indication Tag
A GI tag, as defined by the Agricultural and Processed Food Products Export Development Authority (APEDA), is awarded to an agricultural, natural, or manufactured product that originates from a specific geographical area and possesses distinct characteristics and qualities. It functions as a form of trademark in the international market, guaranteeing consumers that the product is sourced from the specified geographical region.
Currently, premium Basmati rice is exclusively produced in India and in certain districts of Pakistan’s Punjab. These areas, located in the Indo-Gangetic Plains (IGP), were granted the GI tag for Basmati in May 2010 following strenuous efforts to protect the ‘Basmati’ name from encroachment by other nations seeking to develop their versions of the grain.
Madhya Pradesh’s Claims and Efforts
In contrast to the IGP designation, MP state asserts that its Basmati rice shares the same distinctive features as rice from the IGP, arguing that some 80,000 farmers in 13 districts produce and export Basmati rice worth Rs. 3,000 crore each year.
The Madras High Court rejected MP’s application for a GI tag in February 2020, affirming a 2016 decision by the Intellectual Properties Appellate Board (IPBA) in Chennai that sided with APEDA. Despite these setbacks, MP continues to advocate for a GI tag through various political and bureaucratic channels.
Reasons for Rejection of Madhya Pradesh’s Claims
The foundation of the rejections lies in the guidelines stipulated under the World Trade Organisation’s Trade-Related Aspects of Intellectual Property Rights (WTO TRIPs) agreement and the Goods (Registration and Protection) Act 2003. Both mandate that mere physical attributes are insufficient grounds for awarding a GI tag; the product must also have a ‘reputation’ associated with the geographical area.
MP, situated on the Madhya Bharat Pathar plateau, began cultivating Basmati rice variants only around the mid-first-decade of this century. Though its rice may possess all necessary characteristics, it cannot qualify as Basmati without the requisite reputation.
Potential Impact of Including Madhya Pradesh in GI List
Broadening the GI tag to include MP could undermine APEDA’s extensive efforts since 1995 to secure and promote Indian Basmati, an endeavor involving over 1,000 legal actions in nearly 50 countries and costing around Rs. 250 crores. Extending the GI tag could open the door for countries like Pakistan and China to start growing Basmati, while other nations previously barred from labelling their aromatic rice with ‘Basmati’ or even ‘Basmati-like’ names might also enter the fray.
This scenario would likely dilute the economic premium currently enjoyed by over 2 million farmers across seven states who grow this unique product. Thus, the interest of commercial expansion must be carefully balanced against the need to maintain the integrity and reputation of the GI.
