New Delhi, June 6 - India plans to broaden its premium basmati brand to include other varieties of rice in a move that will exempt 400,000 tonnes of long-grain aromatic grain from an export ban and help farmers get a better price.
India, the world's biggest exporter of rice after Thailand in 2007, allows exports of basmati but has banned shipment of other grades since March, when dwindling stocks and soaring prices encouraged many countries to halt exports to boost local supply.
Exporters, hit by the ban, demanded that the government allow export of premium non-basmati grades, Pusa 1122 and CSR 30, as controls on exports of premium grades did not help the poor.
For export markets, the commerce ministry currently regards 11 varieties of rice as basmati.
A farm ministry official, who did not want to be identified, said other varieties of rice would be regarded as basmati if they met parameters on grain length, aroma, thickness and are cultivated in regions where basmati is grown.
"The definition has changed ... but to include any new variety, the grain will have to pass through a rigorous set of tests," he said.
"For any new category to be included in the list of basmati varieties, it has to be ensured that there is linkage between the variety and the geographical indication," the official said.
Analysts said this was important because India wanted to protect the brand and allow its use only for grain cultivated in parts of India and Pakistan, in a similar manner to French Champagne or Darjeeling tea.
"If you redefine basmati, it may create some problems in the WTO," said T.K. Bhaumik, an economist and the chairman of the economic affairs committee at Assocham, a leading industry chamber.
But rice exporters cheered the government's move to broaden basmati and said the two varieties being considered would qualify.
"For all practical purposes these two varieties are nothing else but basmati and I'm very sure they will be declared basmati very soon," said Vijay Setia, president of the All India Rice Exporters' Association.
India's farm minister, Sharad Pawar, told Reuters last month that he wanted to encourage the export of premium grades as these were either exported or consumed by the wealthy, not used for subsidised supply to the poor.
He said export of high-quality rice also boosted earnings of farmers -- a sensitive issue in India, where thousands of impoverished and indebted farmers facing soaring fuel and fertiliser prices have committed suicide.
Last month, leading rice exporters said the curb on overseas sales, including a tax on basmati exports, may prompt shippers to pay a lower price to farmers and encourage them to switch to oilseeds or other crops.
Setia said broadening the basmati brand would change this.
"Ultimately, farmers will benefit as Pusa 112 and CSR 30 will fetch good returns from export markets. Our realisation will be higher and farmers will be paid better."