Date: 06/03/2023
Relevance: GS-3 : IP Related Issues
Key Phrases: GI Tags, Basmati Rice, Ind-Pak Disputes over Basmati Rice, PGI, PDO, TRIPS, IPRs, APEDA
Reference:
- Recently, Australia rejected India’s application seeking a geographical indication (GI) tag for its basmati rice in what could turn out to be an interesting trade tussle.
Key Highlights:
- India filed the application in February 2019 for Basmati’s name and logo.Australia has rejected the application on the grounds that it is “not grown only in India”.
- India has moved the Federal Court of Australia in appeal and hopes it will succeed in its efforts.
- Agricultural and Processed Food Products Export Development Authority (APEDA) is the authority that promotes exports and takes care of GI registration for Indian products abroad.
India and Pakistan Battle for GI Rights:
- APEDA of India filed for domestic GI status of Basmati and the application was granted in 2016 under the Geographical Indications of Goods (Registration & Protection) Act, 1999.
- India, in July 2018, had filed for PGI status for Basmati before the EU’s Council on Quality Schemes for Agricultural and Foodstuffs to claim exclusive rights over the commodity in the EU.
- A Notice of Opposition was filed by Pakistan, the second-largest exporter of Basmati against India’s claim over Basmati in late 2020.
- The main grounds for opposition were that both Pakistan and India produce Basmati, and, thereby it was a joint product of both the countries.
- The laws demand that a product has to be protected by the country’s GI laws before it may be registered on the international market.
- In 2021, Pakistan announced that Basmati was granted GI status under the Geographical Indications (Registration and Protection) Act 2020.
- The European Commission asked India and Pakistan to come to some solution through talks but no solution was reached. As a result, the issue is still pending.
- The issue might now figure in Europe’s FTA talks with India with the former trying to bargain something in the talks.
Geographical Indication
- A geographical indication (GI) is a sign used on products that have a specific geographical origin and ensures good qualities or a reputation in the region.
- GI tag is issued to a specific geographical location (area, or country, or state).
- A protected geographical indication does not entitle the holder to prevent someone from making a product using the same techniques that are used in the standards for that indication.
- Any individual producer, the association of persons, organization, or authority established by or under the law can apply to get GI tag.
- The registration of a geographical indication is valid only for a period of 10 years although it can be renewed from time to time for a further period of 10 years each.
- Objectives of Geographical Indication (GI) Tag:
- To prevent unauthorized use of a Registered Geographical Indication by others.
- The GI provides security to the new or unique goods manufactured or produced by an individual or association of persons etc.
- Issuance of GI Tag in India:
- GI tags are issued as per the Geographical Indications of Goods (Registration and Protection) Act,1999.
- This tag is issued by the Geographical Indication Registry under the Department of Industry Promotion and Internal Trade, Ministry of Commerce and Industry.
- Internationally GI is covered as a component of Intellectual
Property Rights (IPRs) under the Paris Convention for the Protection of
Industrial Property.
- The Paris Convention was adopted in 1883.
- It is being applied to industrial property in the widest sense, including patents, trademarks, industrial designs, utility models, service marks, trade names, geographical indications and the repression of unfair competition.
- GI is also governed by the World Trade Organisation’s (WTO’s) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
- Protected Geographical Indication (PGI):
- It is a component of GI, emphasizes the relationship between the specific geographic region and the name of the product.
- PGI status protects the names of products linked to a specific region, where at least one of the stages of production, processing or preparation takes place.
- Protected Designation of Origin (PDO):
- In this every part of production, processing and preparation have to occur in a particular region.
Benefits of Registration of Geographical Indications:
- It confers legal protection to Geographical Indications in India
- Prevents unauthorized use of a Registered Geographical Indication by others
- It provides legal protection to Indian Geographical Indications which in turn boost exports.
- It promotes the economic prosperity of producers of goods produced in a geographical territory.
Basmati Rice
- About:
- Basmati '' is long grain aromatic rice grown for many centuries in a specific geographical area, in the Himalayan foothills of the Indian subcontinent.
- It is blessed with characteristics of extra-long slender grains that elongate at least twice their original size.
- It is soft and has a fluffy texture upon cooking, delicious taste, superior aroma and distinct flavor.
- Basmati rice is unique among other aromatic long-grain rice varieties.
- It has a unique fragrance and flavor due to the presence of a chemical called 2-acetyl-1-pyrroline.
- Areas of Cultivation:
- The areas of Basmati Rice production in India are the states of J & K, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and western Uttar Pradesh.
- Facts and Figure:
- India is the leading exporter of Basmati Rice to the global market.
- The country has exported 3,948,161.03 MT of Basmati Rice to the world for the worth of Rs. 26,416.49 Crores/ 3,540.40 US$ Mill.) during the year 2021-22.
- Major Export Destinations (2021-22) : Iran, Saudi Arabia, Iraq, United Arab EMTs, US and Yemen Republic.
- India has a 65 per cent share in global basmati trade.
- India has applied for an exclusive GI tag to Indian-origin basmati rice with the EU’s Council on Quality Schemes for Agricultural and Foodstuffs.
Conclusion:
- The current rejection of Basmati GI tag by Australia is a missed opportunity by India to incorporate Basmati rice GI protection in the first round.
- India needs to take this up in the second stage. This could help India to address the long-pending issue over GI tag in the US too.
- Basmati exports of both the countries (Indo-Pak) will be heavily disrupted until the conflict is resolved by an amicable agreement.
- The possible solution is for the countries to submit a joint application. Joint ownership is a practical and mutually-beneficial option, since India and Pakistan are the only two Basmati rice producers in the world.
- Many commodities, such as the “Maasvallei Limburg” (wine), have been granted transactional GI status.
Source: The Hindu BL
Mains Question:
Q. Discuss the possible advantages of registration of geographical Indications for a product at global level.(150 Words).
