India cannot conclude a trade deal with the EU due to a dispute with Pakistan over basmati rice

The dispute over the protected status of basmati rice is heightening tensions between India and Pakistan and could complicate New Delhi’s efforts to strike a trade deal with the EU, the Financial Times reported. Both countries are the world’s largest producers of the grain and each claims exclusive rights to use the name, seeking to limit the use of the term “basmati” to rice grown only in a designated area. This allows producers to charge higher prices. According to sources, EU negotiators in New Delhi to sign a free trade agreement are under pressure to accept India’s right to use the term “basmati”. But that would cause a diplomatic conflict with Islamabad, so Brussels is delaying. In 2018, India applied for exclusive rights, which angered Pakistan. New Delhi has been waiting seven years for its application to protect the term in the market. In 2023, Pakistan submitted a competing bid to define the region and methods of rice production, including four districts of ...