Basmati Gets Duty-Free Entry To EU
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By basmati reporter on Monday, August 30, 2004 - 11:13 am:

Traditional varieties of basmati rice from India and Pakistan will enter the 25-nation European Union (EU) duty-free from September 1.

At present, EU applies a special, reduced import duty of Euro 65 PMT on husked rice. Six specific varieties of basmati rice are entitled to duty-free entry under an agreement between EU and India signed here on Saturday.

Exports will have to be accompanied by authenticity certificates issued by the competent Indian authorities. They will be subject to DNA analysis, facilities, for which already exist in Hyderabad.


Six specific varieties of basmati rice are entitled to duty-free entry under an agreement between EU and India signed here on Saturday. Exports will have to be accompanied by authenticity certificates issued by the competent Indian authorities. They will be subject to DNA analysis, facilities, for which already exist in Hyderabad.

In case of Pakistan, only two specific varieties of basmati rice from Pakistan are entitled to duty-free entry, on the same terms as imports from India.

India currently exports some 140,000 tonne of basmati rice to EU, and Pakistan another 40,000 tonne. Indian exports should not suffer, as they consist almost entirely of traditional varieties.

Exports from Pakistan may decline at first, as they consist of evolved varieties. The notified traditional Indian varieties are Basmati 370, Basmati 386, Type-3 (Dehra Dun), Taraori Basmati (HBC-19), Basmati 217, Ranbir Basmati, Pusa Basmati and Super Basmati.

EU has reserved the right to apply the bound duty rate of 65 euro per tonne should exports from India or Pakistan result in market disturbance.

The negotiations with India and Pakistan took place under Article 28 of GATT 1994, following changes to the EU’s common agricultural policy for rice. Negotiations are on with the US as regards imports into the EU of American long-grain rice.

Sourve: Indian Express

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