GI benefits: MP demands inclusion of 13 districts in ‘basmati-growing geography’

Six months after the Geographical Indications (GI) tag was given to basmati rice, allowing exclusive rights to farmers of 77 districts on the Indo-Gangetic Plain to grow this long-grained aromatic rice, Madhya Pradesh has filed a fresh demand for inclusion of the state’s 13 districts in the “traditionally basmati-growing geography” which could entitle them to the GI benefits.

The move has evoked a strong reaction from rice exporters, as it could dilute the whole purpose of granting GI certification for cultivators in the Indo-Gangetic Plain who are now commanding a premium for their grain in the global markets.

Besides, MP’s demand for expanding the GI geography for basmati rice could facilitate Pakistan, which also grows basmati rice, to claim that larger areas in the country are eligible for the GI tag. Islamabad is in the process of setting up a GI registry.

“The move will open the advocacy for inclusion of Madhya Pradesh, Rajasthan, then Bihar, etc. thereby diluting the philosophy of the GI concept and the premium associated with a GI product,” MP Jindal, president of the All India Rice Exporters Association (AIREA), wrote in a recent letter to the agriculture and commerce ministers. Jindal said calling rice from other areas “basmati” will run counter to the economic interest of the traditional growing areas.

Also, it would amount to committing a fraud on the consumer.

In February this year, seven years after filing the application, Chennai-based GI registry granted GI certification for basmati rice to the Agricultural and Processed Food Exports Development Authority (APEDA), under the commerce ministry. The registry also allowed stakeholders from Madhya Pradesh to submit fresh documents for inclusion in basmati grown areas.

Subsequently, the Madhya Pradesh government approached the Madras High Court, which is set to give its order on August 16. According to the state government, gazetteers from British times refer to cultivation of basmati rice and that climatic conditions in the state are as favourable as in other states. Districts such as Morena, Bhind, Gwalior, Sheopur, Vidisha, Raisen, Sehore, Hoshangabad, Jabalpur and Narsingpur used to grow basmati rice. The APEDA has already contested the evidences of Madhya Pradesh describing those as unscientific and without any proper verification.

India’s basmati rice exports, which had touched a record Rs 29,000 crore in 2013-14, fell to Rs 22,714 crore in FY16 due to a decline in shipments to Iran. However, the value of exports is to set to rise in the current fiscal because of global demand and lower production last year.

In the absence of GI for basmati rice, many private companies had been trying to register their products under the title for many years. Vijay Setia, a leading basmati rice exporter, said for protecting exclusivity of basmati, exports of its seeds have been banned.

India commands an 85% share in global basmati trade at present. Following the GI notification, farmers in 77 districts of seven states — Punjab, Haryana, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Delhi and Jammu and Kashmir — have the right to grow basmati rice.

GI, a form of intellectual property right, is distinct from other forms of Intellectual Property Rights (IPR) as it ascribes the exclusivity to the community in a defined geography rather than to an individual as in the case of trademarks and patents. According to official data, more than 237 products have got GI certification for preserving their uniqueness.