Indian and Pakistani Exporters Agree to Share Basmati Rice Ownership

28 June 2021
India Pakistan Export Data

India and Pakistan are known as rival countries, which have a history of long-time disputes on every front from sea to land and terrorism to trade. In a rare agreement, exporters from the both sides mutually agreed to share the ownership of the basmati rice, a solution considered the most workable to reach the European markets. According to Export Genius data, India is the world’s top-most exporter country of rice and Pakistan is the fourth-largest exporter country of rice. India had the highest export volume of rice worldwide, at 15.5 million metric tons and Pakistan had export volume of rice to 4 million metric tons in 2020.


What is India and Pakistan Claim on Basmati Rice?


The fight between India and Pakistan over the claim of origin of basmati rice has a long history, as this variety of rice is produced largely on both sides of the border. India has filed a claim in the European Union seeking a geographical indication (GI) tag for basmati rice. Pakistan, on the other hand, has opposed India’s claim and has filed a request for a protected GI tag.


The EU buyers are in the favor of joint ownership of the rice variety as they want to keep both New Delhi and Islamabad on board in terms of commodity exports.


The Punjab Rice Millers Export Association in India suggested that both the countries should jointly protect the basmati heritage. Both India and Pakistan make good money from their respective exports of basmati rice. According to India export data of rice, India annually earns around $6.8 billion from basmati rice exports. Pakistan export data of rice shows Pakistan earns about $2.2 billion from basmati exports annually.


India’s Rice Exports to EU 2016-2020


How much India exports rice to EU markets? According to India export data, India exported rice valued USD 327.7 million to EU countries in 2020. In last 5 years, India exported rice the most in 2017. Below given chart shows dollar amount of India rice exports to EU nations from 2016 to 2020.



Year

Value USD Million

2016

288.1

2017

447.6

2018

235.5

2019

235.6

2020

327.7

 


Pakistan’s Basmati Rice Exports to EU 2016-2020


As far as Pakistan is concerned, Pakistan exported more rice than India in 2020. Since 2016, the value of rice shipments from Pakistan to EU countries have been on the rise. As per Pakistan export data, Pakistan exported rice to EU totaled USD 446.1 million in 2020. Below given chart shows dollar amount of Pakistan’s rice exports to EU countries from 2016 to 2020.



Year

Value USD Million

2016

140.8

2017

168.2

2018

344.5

2019

384.2

2020

446.1

 


India’s and Pakistan’s Top 10 Export Partners of Rice 2020


India’s top export partners of rice in 2020 were Saudi Arabia, Iran, United Arab Emirates, Benin and Nepal. Pakistan’s top export partners of rice were China, Kenya, Afghanistan, United Arab Emirates and United Kingdom. Below given chart shows value in percentile of India and Pakistan top 10 export partners of rice recorded in 2020.



India’s Rice Top Partners

Value USD %

Pakistan’s Rice Top Partners

Value USD %

Saudi Arabia

13.7

China

12.2

Iran

11

Kenya

7.6

United Arab Emirates

7.4

Afghanistan

6.9

Benin

4.8

United Arab Emirates

6.9

Nepal

4.4

United Kingdom

5.6

Yemen

4.1

Saudi Arabia

4.6

Togo

3.9

Mozambique

3.6

United States

3.4

Belgium

3.3

Senegal

3.3

Italy

3.3

Côte d'Ivoire

2.7

Oman

3.1

 


India’s rice exports to the world totaled USD 7,980 million in 2020, while Pakistan’s rice exports to the world totaled USD 2,101 million. This agreement between the two countries is a solution to EU markets and will give a new way to global trade of rice.

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