Move to monopolise Basmati exports to be challenged

02 May, 2006

Reacting strongly against growers' association move for acquiring trademark for Basmati rice, traders and exporters of rice called it an attempt to monopolise the Basmati rice trade by a particular segment, depriving the real stakeholders.
They said that Basmati rice, a pride and heritage of Pakistan has been grown in this region for centuries. Pakistan's Basmati rice varieties are differentiated world wide for their special fragrant aroma, distinct taste and long slender grain.
Basmati with a fine texture is considered luxury rice variety and fetches premium price among all other varieties of rice in the world. It is a vital source of foreign exchange earnings for Pakistan and endows livelihood of millions of people engaged in its cultivation, milling, processing, trading and exporting.
After bio-piracy at international level now it has come under a new threat of monopolisation by a few high-handed people. The present scam came to light when an application No 216742 for registration of 'BASMATI' as collective mark was advertised before acceptance in the Trade Mark Journal which is a mandate procedure of Trade Marks Registry.
The TMR initiated the procedure immediately and advertised the application in the Journal No 649. The application remained challengable from the trade for two months but no one sensed the gravity of situation to file any objection due to limited circulation of the Journal of TMR.
As soon as the trade knew about the sensitivity of the issue, they vehemently reacted by becoming active within their respective associations--Rice Exporters Association of Pakistan (REAP) and Karachi Wholesale Grocers Association (KWGA)--for its reversal.
The trade associations approached TMR for extension in time for filing objection because if trademark is allotted to any association it is highly likely that it would monopolise the entire Basmati rice exports from Pakistan. It will have multifarious implications like that no exporter will be able to export rice after the termination of the grace period (two years) without paying premium to the association. It would lead to monopolisation of the billions of dollar rice trade which has much potential to further expansion.
Basmati is the heritage of Pakistan and its rights can not be entrusted to a few selected ones belonging to any association/region.
This is a joint property of Pakistan and rice exporters hailing from any part of the country have equal right on this joint property. The rice exporters have made the world aware of Basmati, developed taste and liking for it in every niche and corner of the globe. One can hardly find a place in the world where Basmati is not being consumed.
They managed to reach up to this point by sheer hard work, investment of millions of dollars, marketing and by maintaining quality. This class of rice exporters will be main sufferers and losers if rights of usage are given to any single part/association.
According to the regulations filed with the application of the group applied for the registration of Basmati as a collective mark, "persons, currently engaged in growing, processing, trading or export of Basmati shall be authorised by Board of Directors of the company (association) for a period of two years to continue their respective businesses relating to Basmati in accordance with these regulations; however, after the said period, they shall not be allowed to continue use of collective mark unless they have obtained permission from the Company in this regard".
"This condition is very damaging," a leading rice exporter Shamsul Islam told Business Recorder. He is also filing opposition against this trademark application. He said that the application was a potential threat for the entire Basmati trade to the world.
The applicant has sought exclusive rights of Basmati as collective mark for its members and users authorised by the applicant only which is not only an act of depriving rice exporters who are real stake holders but also is an attempt to monopolise entire billion dollars Basmati rice trade, he said.
Abdul Majeed, Chairman of Rice Exporters Association of Pakistan, said that REAP is also going to file opposition against the trademark application. He demanded extension to file objections against the said application.
While opposing the registration of trademark of Basmati rice to anyone association and said if the trademark application is accepted it would be an attempt to monopolise the Basmati rice trade in the country.

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