GI Tag Dispute in India–EU Trade Talks: Basmati Rice vs Wines & Spirits

🌾 The Core Dispute: GI Protection at the Heart of India–EU Trade Talks

The European Union’s long‑standing demand for Geographical Indication (GI) protection for its wines, spirits and cheeses is running into stiff opposition from India. New Delhi has made it clear that any progress on GI protection for European products must go hand‑in‑hand with the recognition of India’s own GI products — especially Basmati rice and Darjeeling tea.

At the heart of the standoff is India’s objection to an EU–Pakistan joint communiqué issued on 1 June 2024, which referred to a United Nations resolution on the Jammu & Kashmir issue. India, which considers J&K an integral part of its territory, strongly rejected the reference and warned that parties with “no locus standi” should refrain from commenting on its internal matters. Since then, trade negotiators have struggled to find a middle ground.

🏷️ What is a GI (Geographical Indication) Tag?

A Geographical Indication (GI) is a sign used on products that have a specific geographical origin and possess qualities, reputation or characteristics inherent to that origin. Well‑known examples include Champagne (France), Roquefort cheese (France), Parmigiano Reggiano (Italy) and Darjeeling tea (India).

For the EU, GI protection is a powerful tool to protect the cultural and commercial value of its traditional food and drink products. European wines, spirits and cheeses command premium prices in global markets precisely because of their GI status. Under the World Trade Organization’s TRIPS Agreement, Article 23 provides additional protection for wines and spirits, preventing misuse even when the public is not misled.

🍚 India’s GI Application for Basmati Rice: A Long‑Pending Demand

India first submitted its application for a GI tag for Basmati rice to the European Union in July 2018. The EU officially notified the application only in 2020, but a final decision has been repeatedly delayed. In the meantime, Pakistan filed its own application in January 2024, claiming that basmati has been cultivated for centuries in the Punjab region that spans both countries.

According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported 6.07 million tonnes of Basmati rice worth ₹50,312 crore (approximately $5.94 billion) during 2024‑25. The EU basmati rice market alone is worth $766 million, of which India currently exports about $237 million.

India’s position is that the exclusive right to the “Basmati” GI should belong to India. Pakistan, on the other hand, argues that basmati rice is also grown on its side of the border and has objected to India’s claim, urging the EU to recognise a “cross‑border” GI.

⚔️ Pakistan’s Opposition – A Joint GI Application?

The EU has been caught in the middle of the India‑Pakistan dispute. European officials have suggested a “joint application” that would give both countries shared rights to the basmati GI, but India has rejected this outright. New Delhi’s objection stems from the fact that Pakistan’s GI application includes parts of Kashmir — Mirpur, Bhimber, Poonch and Bagh — which India considers to be its own territory. India views any attempt to share the GI as an infringement on its sovereignty.

Italian rice millers and producers have also formally opposed Pakistan’s application, arguing that allowing Pakistani basmati to enter the EU market under a GI label would harm Italian rice cultivation. The EU has accepted Italy’s opposition, meaning Pakistan may not be granted the GI tag.

🍷 EU’s Counter‑Demand: GI Protection for Wines, Spirits & Cheeses

In exchange for recognising India’s GI products, the EU is seeking robust GI protection for its own agricultural and food products. European negotiators have emphasised that the ₹5,000 crore market for EU wines, spirits and cheeses in India remains largely untapped due to high tariffs (150% on wines and spirits). The FTA aims to phase down these duties to as low as 20‑30% over time, but the EU insists that tariff cuts should be accompanied by strong GI enforcement to prevent imitation products from flooding the market.

However, New Delhi is in no mood to grant unilateral concessions. Indian trade officials have repeatedly stated that any agreement on GI protection must be “mutually beneficial”. As one analyst put it, “India’s GI is linked to its culture and tradition, something which it will not be ready to compromise”.

🌏 Beyond the EU: Other Countries Have Also Refused GI Protection

India’s battle for GI recognition is not confined to the European Union. Countries such as Australia, New Zealand and Kenya have also declined to grant GI protection to India’s Basmati rice. These nations, which are themselves agricultural exporters, have cited competing domestic interests and a lack of consensus on the definition of “Basmati” as reasons for withholding recognition.

This leaves India in a difficult position. While the country has successfully protected several GI products — including Darjeeling tea, Alphonso mangoes and Bikaneri bhujia — the Basmati rice GI remains the most contentious. The EU’s decision could set a precedent for other markets, making the outcome of the India‑EU trade talks crucial for India’s long‑term GI strategy.

📉 Why the EU Is Pushing Hard for a GI Deal

The EU’s food and beverage industry has been facing mounting pressure. In 2025, China imposed anti‑dumping tariffs on EU pork and brandy, and an anti‑subsidy investigation is ongoing for dairy products. At the same time, the EU has been excluded from Washington’s tariff exemptions, hurting its exports. With India home to 18% of the world’s population and a fast‑growing middle class, the EU sees the Indian market as a critical outlet for its agricultural surplus.

Yet the EU’s chief negotiator, Christophe Kiener, admitted after a round of talks in Delhi that “no real breakthrough was achieved” and that agriculture, including the GI issue, remained a sticking point.

🔮 What Lies Ahead for India–EU GI Talks?

With the FTA deadline fast approaching, both sides may need to compromise. The EU could agree to fast‑track India’s Basmati GI application, while India might offer limited GI protection to a subset of European wines, spirits and cheeses as a test case. However, India has shown little willingness to delink the GI issue from the broader FTA.

As the dispute continues, one thing is clear: the outcome of the India‑EU GI talks will shape the future of agricultural trade between the world’s largest democracy and the world’s biggest trading bloc. For Indian farmers, basmati exporters and traditional food producers, a favourable outcome could open doors to premium markets worldwide; a negative one could leave India’s GI ambitions stalled for years to come.

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