• Export uncertainty risks basmati earnings and rural employment
  
• Brussels pressed to acknowledge Pakistan’s heritage in premium rice trade
  

Pakistan has urged the European Union (EU) to fast-track the long-pending geographical indication (GI) registration for basmati rice, while also calling for the restoration of duty concessions on ethanol. Commerce Minister Jam Kamal Khan told a hearing of the European Parliament’s Development Committee that the current regulatory limbo is exposing growers across Pakistan’s Punjab belt to commercial risk and threatening one of the country’s core agri-export streams.

GI decision hangs over Pakistan’s premium rice exports

Pakistan is arguing that basmati cultivation has roots in both Indian and Pakistani Punjab, and that exclusive GI recognition for India would distort market competition and weaken Pakistan’s brand positioning in Europe. With the GI still unresolved, Pakistani exporters face potential labelling restrictions, higher compliance costs and displacement risks in Europe’s high-value aromatic rice shelf space.

Ethanol concessions hit rural livelihoods

Khan also pressed the EU to restore duty-free access for Pakistani ethanol under the GSP+ tariff regime. He said the withdrawal of preferential treatment has squeezed margins for exporters and added stress on sugarcane-based agribusinesses already reeling from flood damage. With ethanol representing a value-added export that supports rural jobs, its tariff treatment has become a key aspect of Pakistan’s trade diplomacy.

Compliance reforms and climate linkages

Reaffirming Pakistan’s commitment to GSP+ eligibility, Khan pointed to recent governance and social reforms including new legislation on child marriage and bodies for human rights and minority protection and noted Islamabad’s election to the UN Human Rights Council for 20262028. EU officials welcomed the reform momentum, while in a separate meeting Senator Sherry Rehman underlined the impact of climate shocks on export-oriented agriculture and the need for resilient supply chains.

Branding power and market share on the line

With the basmati GI dispute unresolved, Pakistan argues that a balanced decision is essential to preserve its centuries-old identity in the global premium rice market. India currently leads global basmati exports estimated at around 5.7 million tonnes (mnt). However, Pakistan warns that any delay or one-sided recognition could diminish its access to Europe’s premium rice aisle, raise compliance burdens and reduce its ability to compete on origin branding.

Brussels is carefully weighing its options. A joint GI listing appears the most practical solution, allowing consumers continued access to basmati from both origins while mitigating a geopolitical flashpoint. Yet neither country is prepared to relinquish branding advantage, prolonging a stalemate that may increase trade friction at a sensitive time for India-EU free trade negotiations.

For policymakers the balancing act lies between intellectual-property norms and diplomatic dynamics. For farmers across the Punjab region, the outcome will directly shape their commercial prospects in a premium-grain value chain built on generational cultivation and origin identity.

Published Date: October 30, 2025