India and Pakistan’s Basmati rice GI tag battle is audible to the world but EU granting GI tag to India is a definite blow to already struggling Pakistan .–EU Granted GI Tag
Impact of EU GI Tag on India’s Basmati Rice
The recent decision by the European Union to grant Geographical Indication (GI) status to basmati rice from India could have significant implications for Pakistan’s export market. With India being the world’s largest producer of basmati rice, this move may result in a detrimental impact on Pakistan’s basmati exports. The application was published in an official EU journal on September 11, 2020, after clearing internal evaluations.
In India, basmati cultivation is dictated by geography. There is a ‘Basmati growing region’, one which includes the states and Union territories of Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Chandigarh, Delhi, Uttarakhand and Uttar Pradesh.
How the factor favors India
The cold weather of this region is suitable for Basmati cultivation. So, what does Pakistan have to do with all this?
Well, apparently, Pakistan too has a Basmati belt, the Kalar bowl, a tract of land in the interfluve between the Ravi and the Chenab rivers, comprising the Narowal, Sialkot, Gujranwala, Hafizabad and Sheikhupura districts in Punjab province.Turns out that India has a 65 per cent share in the global Basmati market while Pakistan has the rest.
In fact, Pakistan’s exports to the EU have almost doubled over three years since permissible levels of pesticides on imported agricultural products to the bloc were reduced in 2018, while India has repeatedly failed the tests.
Basmati is an export-oriented item for both India and Pakistan
Increased Competition in the Global Market
Pakistan has long been a major player in the basmati rice market, with its aromatic long-grain variety being well-known and in demand worldwide. However, the GI tag awarded to India’s basmati rice could potentially shift the dynamics of the global market, leading to increased competition for Pakistan.Observed by AIRRNEWS based on insights from Pakistan.
Quality Assurance and Market Perception
The GI tag serves as a mark of authenticity and quality assurance, signifying that the product possesses unique characteristics attributed to its geographical origin. In the case of basmati rice, this tag adds prestige and value to the Indian product, potentially overshadowing Pakistan’s offerings in the eyes of consumers. As per AIRRNEWS rsearch.
Economic Ramifications for Pakistan
Given the significant economic contribution of basmati rice exports to Pakistan’s economy, any adverse effects resulting from increased competition with India could have far-reaching consequences. The loss of market share or decline in demand for Pakistani basmati rice may impact the country’s agricultural sector and overall export earnings. All such consequences might play vital role observes AIRRNEWS.
Strategic Response and Future Outlook
In response to the EU’s decision, Pakistan may need to reassess its marketing strategies and focus on highlighting the unique qualities of its basmati rice to differentiate itself from the competition. Building stronger branding efforts and emphasizing the distinct flavor profile of Pakistani basmati could help mitigate the potential impact of India’s GI-tagged rice.
The EU granting a GI tag to India for basmati rice has the potential to disrupt Pakistan’s basmati exports and pose challenges to its market position. As the situation unfolds, Pakistan will need to adapt its strategies to navigate the competitive landscape and secure its position in the global basmati rice market.
Stay tuned for further updates on the evolving dynamics of the basmati rice industry in light of this recent development as AIRRNEWS is tracking all the updates.
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Queestion:
- Why India is awarded with GI tag?
- Why Pakistan lost the chance?
- Will India get benefitted with GI?
- How could this impact Indian Basmati prices?
Will basmati be another Alphonso for India?
