Twists and turns in MP-Punjab Basmati row, with little signs of an end

The issue is sensitive for the MP chief minister, especially in the light of the coming bypolls in the state's farming zone

The contentious issue of whether basmati rice grown in Madhya Pradesh should be eligible for the GI tag, just like the kind grown in the foothills of Himalayas, has once again reared its head with state chief Minister Shivraj Singh Chouhan writing a series of letters opposing his Punjab counterpart Amarinder Singh’s views on the matter.

The Madhya Pradesh government has also decided to approach the Supreme Court to challenge an order by the Madras High Court rejecting the state’s claim over the GI tag for basmati grown on its soil.

The Madras High Court gave its decision on two petitions; one filed by the state government and the other by a basmati rice growers’ association in the state.

Several observers and experts are also linking MP’s belligerence to the coming bypolls to the 27 vacant assembly seats, something which will decide the fate of the Shivraj Singh Chouhan government.

As most of the seats in the bypolls fall in the Gwalior-Chambal region, which is predominantly a farming zone, many feel Chouhan is in no mood to compromise in the matter for fear of being branded anti-farmer.

This, in fact, was a tag that the opposition Congress successfully managed to stick on him, causing his defeat in the last assembly elections in MP.

Madhya Pradesh’s argument

Basmati rice in the state is largely grown in and around the 13 districts of Morena, Bhind, Sheopur, Gwalior, Datia, Shivpuri, Guna, Vidisha, Raisen, Sehore, Hoshangabad, Narsinghpur and Jabalpur.

An estimated 80,000-100,000 farmers cultivate the crop in these areas in over 200,000 hectares of land, as per the state government’s assessment.

Madhya Pradesh contends that it has historical records since 1908 of basmati production in the 13 districts and has records of supplying seeds to farmers in MP in the year 1944 by the erstwhile Scindia State.

It also argues that the Indian Institute of Rice Research, Hyderabad, had recorded production of basmati rice in MP in its Production Oriented Survey Report for the past 25 years.

"Basmati exporters in Punjab and Haryana are procuring the rice from MP. This is also supported by Government of India data of export from the Mandideep industrial area in Madhya Pradesh," Chouhan recently tweeted.

The GI tag is for PUSA-1 and PUSA-1121 basmati rice varieties cultivated in Madhya Pradesh.

Apart from Punjab, other states that already have GI tagging for basmati include Haryana, Himachal Pradesh, Uttarakhand, Delhi, western UP, and select districts of Jammu and Kashmir.

Punjab and exporters' contention

Basmati is among the top three agricultural exports from India and has consistently been a show-stopper, irrespective of global market dynamics.

In 2019-20, India exported around 4.45 million tonnes of of the grain, valued at over Rs 31,000 crore.

Basmati’s long-aromatic grain, smooth texture and special qualities has over the last several decades made it one of the most adorable and signature food items of India.

The Central government, along with the states, has fought a long legal and diplomatic battle to retain the specificity and uniqueness of Indian basmati rice amid stiff competition from neighbouring Pakistan, which has long claimed that the crop grown on its soil is the real basmati.

Exporters say granting the GI tag to basmati grown in Madhya Pradesh districts will lower its value in the international market and give a window to Pakistan to strengthen its claim over the variety grown in its territory, impacting India’s marketability and premium.

“If someone starts growing Darjeeling tea in Chennai will it command the same price as the original grown in the Darjeeling valley. A GI tag or certification is the region-specific identity of a product. No one can simply grow the same crop in some other place and claim it to be the same as original. However, it might be near to the original one,” a leading basmati rice exporter said.

He said expanding the GI tag to basmati grown in Madhya Pradesh will diminish its international market and lead to fall in the premium it commands over other rice varieties.

Whether or not Madhya Pradesh deserves a GI tag for the basmati grown in its state is now to be decided by the country’s highest Court of Law.

But as it deliberates on the matter, getting a GI in itself is cumbersome and many times controversial and tricky in India. This probably explains why India has less than 500 GI-certified items, despite having one of the world’s most diverse agriculture produce and culinary items.

Problems of getting GI tag in India 

Be it ‘Basmati Rice’, or ‘Darjeeling Tea’ or ‘Hyderabadi Biryani’, getting Geographical Indication tag (GI) for items exclusive to India has long been a contentious issue.

Though, the GI Act that commenced from 2003 (Geographical Indications of Goods (Registration and Protection) Act, 1999) has brought much-needed transparency and clarity into the entire field, but experts said a lot of confusion and complications originates primarily due to lack of quality control once the tag is obtained and also limited hand-holding prior to applications are made to the Registrar that leads to half-baked attempts to seek a GI certification.

Darjeeling tea became the first GI tagged product in India, in 2004–05, since then over 300 goods had been added to the list.

India’s vast and vibrant agricultural and food varieties along with inter-regional variations also make it a ‘nightmare’ while applying for GI.

Experts said a big factor in granting a GI tag for any product is ‘public perception’ about the same.

This is easier for products which are associated with a particular area like Darjeeling Teas, or Champagne of France, but when it comes to generic items like Pashmina which is not usually associated with a particular area or region by the virtue of its name, granting a GI becomes highly challenging.

GI Act and its implementation in India is relatively new – it started from 2003 onwards – while in other countries the concept has been in existence since long.

The other big challenge in getting GI in India, experts said is the improper filing and lack of proper knowledge which sometimes leads to half-baked applications being filed increasing their chance of rejection by competent authorities.

In India there are no provisions for quality control in the GI Act once GIs are registered, which is why there is a proliferation of applications in India.

In Europe, one of the pivotal issues is quality control. Once a product is granted GI, there is little possibility of fakes, which is not the case in India.

A GI tag brings its own brand equity for the product and it commands a premium in the market, but to get that a lot of background work needs to go into before a formal application is made, something which is absent in India leading to higher number of rejections.

A case in point is ‘Hyderabadi Biryani’ which failed to get the GI tag as the applicant could not prove the historical origin and data relating to the dish with supporting documents.

The application was filed by Deccani Biryani Makers Association (DBMA) a few years back.

"The existing GI tribunal order has not been implemented in letter and spirit. The existing application and grant of GI of Basmati contains a number of glitches.  In the interest of the nation, there is a requirement to review the entire matter based on ‘GI principles’ without going into the subject whether MP or any other area is to be included and examination of subject just not based on selective references and interpretations," S Chandrasekaran, trade policy analyst and author of the book Basmati Rice - The Natural History Geographical Indications,  told Business Standard. 

Table: Basmati rice exports from India

Year	Quantity (million Tonnes)	Value (Rs crore)
2019-20	4.45	31,026.00
2018-19	4.41	32,804.30
2017-18	4.05	26,870.17
2016-17	3.98	21,513.00
2015-16	4.04	22,719.00

Source: Agriculture & Processed Food Products Export Development Authority (APEDA)