Search the Internet          Tips  Sites: Finance, Investment

India wins basmati rice battle against US firm

Lola Nayar in New Delhi

Contrary to reports, India has won a major legal battle against Texas-based RiceTec Inc for exporting basmati to the United States.

In a recent ruling, the United States Patent and Trademark Offices, while granting RiceTec Inc patent for three strains of superfine rice developed by it, has not granted it the patent for the generic and pseudo-generic strains of basmati, Anil Swarup, chairman of the Agricultural and Processed Food Products Export Development Authority, clarified on Tuesday.

Describing reports about India having lost ground on basmati patent, the official said they had not understood the issue.

"In fact, now no one can deprive us of selling our rice as basmati."

"What the US Patent Office has now done is to accept APEDA's objections and has restricted the patent to only those three rice strains which do not impinge upon India's interest in exporting basmati rice to the United States," Swarup said.

To strengthen India's claims to basmati, the government has concluded DNA tests to set in process the registration of basmati varieties and lines.

"With the Geographical Indications Act finally in place, within a month we hope to finalise the regulation for certification of basmati varieties with geographical indications," Swarup said.

In 1997 RiceTec was granted a patent for certain strains of rice. It related to the crossbred rice lines and grains developed by the US company.

In all, the company made 20 claims in the patent application, including a method for the development of novel rice lines.

"What was threatening to India's interest were claims 15 to 17 of the patent which defined rice grains without any limitations or territory or photoperiod insensitivity," said Swarup.

"The claims, which were subsequently withdrawn by RiceTec, were broadly worded so that they included 90 percent of rice germplasm and even traditional rice lines like Bas 370, Taraori Basmati, Karnal local and other varieties."

Realising the threat posed by the patent claims to Indian basmati exports to the US, India had filed a request on April 28, 2000, urging the US Patent Trade Office to re-examine the claim.

Following this move, RiceTec surrendered four of the contentious claims including 15 to 17.

"Based on the documentary evidence provided by us, the US Patent Office found a substantial question of patentability affecting all the remaining claims, and issued a formal notice on March 27, 2001, to RiceTec."

Subsequently, RiceTec withdrew all the claims except those related to the specific rice lines developed by it and not to any varieties or lines grown in India, added Swarup.

Despite fears of fallout of the legal tussle on Indian basmati exports to the US, the value of exports has grown from Rs 700 million in 1999-2000 to Rs 1.20 billion in 2000-2001.

While of late Pakistan basmati is posing a threat to Indian basmati rice with plans to step up exports to traditional markets like Saudi Arabia and the US, APEDA is confident of India expanding market share with better quality rice.

India has set a target of netting a minimum of Rs 20 billion through basmati exports this fiscal year, while for non-basmati rice a target of two million tonnes has been set as against exports of 1.2 million tonnes last year.

Indo-Asian News Service

Money
Business News

Tell us what you think of this report