United we gain

In the New Year, the scenario of aromatic rice exports to the European Union (EU) may not be the same. A new legislation passed by the EU early this month, restricts duty derogation of €250 to only traditional basmati.

As a result, the varieties evolved from basmati, which constitute nearly a third of the Indian basmati exports and almost the whole of Pakistan's, would become ineligible for this duty concession.

Though, prima facie, it is well within the EU's rights to take this kind of a decision, its logic is unsound.

For, the purpose behind offering this duty concession in 1996 was to make the premium long-grain scented rice affordable for the European consumers and not to distinguish between old and new basmati varieties.

Many of the basmati varieties that have been axed from the original list of notified types are almost as good as true basmati from the consumer point of view.

The trade, too, has little objection to lifting the evolved varieties, such as India's Pusa Basmati-1 and Pakistan's "Super", because of excellent consumer acceptance.

Indeed, though this move will hurt Pakistan the most, India, the only other player in the global basmati bazaar, will not remain unscathed either.

That is why the two countries need to combat the EU move jointly. This aside, basmati is a common heritage of these two countries and almost the entire future expansion of these exports depends on evolved varieties.

In any case, Pakistan's loss of market does not straightaway become India's gain if evolved varieties were not to be traded.

For, India, too, cannot increase its supply of traditional basmati as there has been no breakthrough in raising the productivity and production of genuine basmati though the possibilities of expanding the output of evolved basmati varieties are immense.

What the EU needs to realise is that its move is against the European consumers of basmati. While India and Pakistan may be able to find other markets for their evolved basmati rice, the EU consumer will be denied access to relatively cheaper basmati.

Under the circumstances, the All India Rice Exporters Association seems to have done the right thing by inviting its Pakistani counterpart to evolve a joint strategy on this issue.

But, it is a pity, that the response from the Pakistani side is not as encouraging as was expected. Though it has not said no to a joint move, it is trying to impose pre-conditions (such as refusing to equate Pakistan's "Super" with Pusa Basmati) which may prove counter-productive.

Its stand may have been based on the hope that the EU might show a softer corner for Pakistan because of its centrality in tackling terrorism.