According to reports, a dispute over the protected status of basmati rice has increased the tensions between India and Pakistan. Now, this has threatened New Delhi’s efforts to seal a trade deal with the European Union.
India and Pakistan are the world’s largest producers of Basmati Rice
Both of the nations are the world’s largest producers of basmati rice, as they claim exclusive rights to the term basmati. They want to restrict the label to Basmati rice grown in specific regions, allowing producers in those areas to sell it at higher prices. According to officials, EU negotiators who are in New Delhi to seal a trade agreement are being asked to accept India’s right to use the designation basmati rice. “However, it would cause a rift with Islamabad, so Brussels is playing for time,” one official said.
Pakistan filed its own application to define the rice’s production area and methods, including four districts in Pakistan-Occupied Kashmir in 2023. As per EU officials, sanctioning Pakistan’s claim would unofficially accept its control over the area, which could disappoint New Delhi.
What did the Union Commerce Minister state?
The grain has remained a symbol of national pride. It is mostly cultivated in the paddies of historic Punjab, the breadbasket region now divided between the two countries. The EU delegation in Pakistan said in a statement that proceedings in relation to both Indian and Pakistani applications are running in parallel. On Friday, September 12, Union Commerce Minister Piyush Goyal stated that India was working with the bloc to seal a free trade agreement that would benefit businesses and consumers on both sides, followed by a visit of an EU delegation.