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The move to include some districts of Madhya Pradesh in the Geographical Indication (GI) area for basmati could spell doom for the basmati growers in Punjab region. Though the prices of basmati have increased now by almost 50 per cent over last year, expanding the GI area is likely to not just see a drop in basmati prices in the domestic market, but also impact export of Indian basmati to West Asian and European markets.
Regions growing basmati rice: As of now, only seven states — Punjab, Haryana, Himachal Pradesh, Delhi, Uttarakhand, Western Uttar Pradesh, and two districts of Jammu and Kashmir, all lying in the Indo-Gangetic plains — have the GI certification rights for growing basmati.
Controversy: MP has asked for 13 of its districts to be included in the GI area and submitted evidence that basmati was grown there for almost a century. MP never had any tradition of growing basmati — a prerequisite for grant of GI — and they started growing it only from the start of this century. The Punjab Government has reportedly shot off a letter to the Agricultural and Processed Food Products Export Development Authority (APEDA) and to the GI registry, asking it not to include the area of Madhya Pradesh into the GI area for basmati.
Concerns: By including more area under the GI area of basmati, the gap between demand and supply will narrow down, thus prices in the domestic market will fall. Once India expands the GI area, Pakistan will follow suit. A judicial order favouring expansion of the GI area will also mean that China, Ethiopia and Philippines, who have been claiming to grow basmati, will get precedence and they too will start selling their paddy as basmati.
By: Dr. Vivek Rana ProfileResourcesReport error
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