Why Punjab’s exporters are against including Madhya Pradesh in Basmati GI zone

A fresh controversy over the proposed inclusion of Madhya Pradesh in the Geographical Indication (GI) area for Basmati rice has triggered strong opposition from Punjab’s exporters, rice millers, and farming community. Industry leaders in the state have argued that the issue concerns the future of India’s premium agricultural export brand, farmer livelihoods, and the credibility of Basmati in global markets.

Ashok Sethi, Director, Punjab Rice Millers Exporters Association, has written a letter to the Union minister of commerce and industry, and urged the Centre to retain Basmati cultivation within the traditional Indo-Gangetic belt comprising Punjab, Haryana, western Uttar Pradesh, parts of Uttarakhand, and the Kathua region of Jammu. Eighteen districts of Pakistan also fall under the GI area for Basmati.

In his letter on July 2, Sethi flagged that a group of political leaders from Madhya Pradesh had proposed including areas in the state under the GI area for Basmati rice and urged against such a move.

Why Punjab exporters are concerned

At the heart of the dispute lies the GI status granted to Basmati rice in 2016. Like Champagne in France or Darjeeling tea in India, Basmati’s identity is linked to a specific geographical region whose climate, soil conditions, and irrigation patterns are believed to produce its distinctive characteristics.

Punjab’s exporters fear that expanding the GI area beyond the traditional Indo-Gangetic plains could weaken the very attributes that have made the rice a globally recognised premium product.

According to industry stakeholders, Basmati’s reputation has been built over decades on a unique combination of factors, including alluvial soil conditions of the Indo-Gangetic plains, specific climatic patterns and monsoon cycles, river-fed irrigation systems, and traditional cultivation practices passed down through generations. Exporters argue that these factors collectively contribute to Basmati’s hallmark aroma, grain elongation, and cooking quality.

“The value of Basmati lies in its origin story as much as in the grain itself,” an exporter said. “If that identity becomes diluted, global buyers may begin questioning the authenticity of the product.”

Story continues below this ad

At stake: a Rs 60,000 crore export industry

The debate comes at a time when Basmati exports have become one of India’s most successful agricultural export stories. From a niche product exported in limited quantities during the late 1970s, India’s Basmati trade has expanded into an industry exporting nearly six million tonnes annually, generating revenues estimated at around Rs 60,000 crore.

Punjab, particularly Amritsar, has played a central role in this transformation. Several leading and renowned Basmati brands built their early business networks from the region, helping establish India’s presence in markets across the Middle East, Europe, and North America.

Industry veterans point out that the first major export consignments from Amritsar to Dubai in 1978 helped create a trade route that later evolved into a global market for premium Indian rice.

While 80 per cent of India’s Basmati export is from Punjab and Haryana, the remaining 20 per cent is from other states, including Madhya Pradesh.

Story continues below this ad

Punjab’s exporters argue that any alteration in the GI framework could have significant implications for farmer sentiment. “Basmati farmers in Punjab, Haryana and western Uttar Pradesh have invested decades in developing specialised cultivation systems. Many believe the premium they receive for Basmati is linked directly to the protected geographical identity of the crop,” said Sethi.

Industry representatives also fear that expanding the GI zone could increase supply without necessarily maintaining the same quality standards, potentially exerting downward pressure on prices and reducing returns for existing growers.

For farmers already grappling with rising input costs, groundwater depletion, climate variability and stricter export regulations, any uncertainty around the GI framework is viewed with concern.

Why this matters beyond Punjab

The issue extends beyond regional politics because Basmati is one of India’s most valuable agri-export brands. Global consumers often associate Basmati with a specific geographical origin. Maintaining that association is critical in international markets where premium pricing depends heavily on authenticity and traceability.

Story continues below this ad

Exporters warn that if international buyers perceive a dilution of standards or geographical identity, competitors from other rice-producing countries could exploit the uncertainty. The concern is particularly relevant because food-importing countries are increasingly demanding stronger proof of origin and quality certification.

Exporters already face multiple challenges

The timing of the debate has added to industry anxiety. “Basmati exporters are currently navigating several challenges. Erratic rainfall patterns, rising temperatures and groundwater stress have increased production risks across north India,” said Sethi, pointing to strict pesticide residue limits imposed by markets such as Europe, the United States, and other premium destinations. Failure to meet maximum residue limits can lead to shipment rejections and financial losses, he added.

“The recent tensions in West Asia have heightened concerns as several shipments either got stuck or delayed. The Middle East remains the largest destination for Indian Basmati, accounting for an 80 per cent share of total exports. Any disruption to shipping routes, higher freight costs or delays in cargo movement can directly impact exporters, millers, and farmers,” an exporter said.