Italy's Opposition Puts Pakistan at a Standstill

The European Commission (EC) recently rejected Pakistan’s request for a Protected Geographical Indication (PGI) tag for its Basmati rice in the European Union. Italy strongly opposed the request, gaining support from countries like Bulgaria, Romania, Spain, and Greece. Pakistan, hoping for a positive outcome, had filed its application earlier this year.

Why the PGI Tag Matters for Basmati Rice

The PGI tag is crucial because it allows a country to market its agricultural product exclusively within the region where it's approved. Italy’s Agriculture Minister, Francesco Lollobrigida, shared the EC’s decision on September 23, calling it “good news” for Italy. Italian farming groups, Coldiretti and Filiera Italia, raised concerns over issues like child labor, illegal pesticide use, and price dumping linked to Pakistani Basmati. They argued that giving Pakistan the PGI tag would negatively impact the European rice industry.

Child Labor and Pesticide Issues Raise Alarms

Coldiretti expressed alarm over Pakistan's Basmati rice, pointing to concerns such as child labor and illegal pesticide use. They also fear that if Pakistan gets duty exemptions, it could lead to lower prices for European Indica rice. For Italian rice farmers, this would create an unfair disadvantage, forcing them to shift towards growing less profitable rice varieties.

India Takes the Lead in Basmati Exports

In the period from April 2023 to March 2024, Pakistan exported about 0.74 million tonnes of Basmati rice globally. In contrast, India managed to ship over 5.2 million tonnes of Basmati. India further exported 164,000 tonnes of Basmati rice to the EU in 2023-24, while Pakistan could only manage to export 47,776 tonnes to Europe. Major buyers included the Netherlands, Germany, and Italy.

Environmental and Social Concerns Cloud Pakistan’s Future

Another significant reason for Pakistan’s struggle is the growing environmental and social concerns linked to its rice production. Italian rice associations also pointed out human rights issues within Pakistan’s Basmati industry. To make things worse, genetically modified rice was found in one of Pakistan’s Basmati consignments sent to Germany in July. These issues made the opposition to the PGI tag even stronger.

India Holds a Strong Advantage

India, which applied for the PGI tag in 2018, markets traditional Basmati rice at prices that are 50 percent higher than Pakistan’s varieties. On top of that, India’s ongoing discussions with the EU have bolstered its position. With all these developments, it seems India will continue to hold a competitive advantage in the global Basmati rice market.

Conclusion: Pakistan Faces an Uphill Battle

Pakistan's failure to secure the PGI tag shows the mounting challenges it faces in the global Basmati rice market. As India strengthens its grip, Pakistan will need to address pressing issues like social and environmental concerns to remain competitive.

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