As India and Pakistan compete for geographical indication rights, Nepal is drafting its first GI law to protect products from basmati rice to Ilam tea.
Across South Asia, basmati rice has long been associated with prestige. It is the mainstay of parties during special occasions—from weddings and religious ceremonies to Dashain, Tihar and Eid celebrations. The fragrance of basmati—the word ‘basmati’ means ‘fragrant’ in Sanskrit—often defines dishes such as pulao and biryani, adding a sense of occasion to meals served at family kitchens, restaurants and five-star hotel buffets.
This famous aromatic rice is now at the centre of a long-running dispute over its origins, geographical indication (GI) rights and ownership of its global identity. India, Pakistan and, in recent years, Nepal have all entered the race to claim basmati as their own.
As the three countries continue their competing claims, Nepal is preparing to introduce its first standalone legal framework for geographical indications.
The government is moving ahead with an Industrial Property Bill that would provide legal recognition to GI products. The proposed law is expected to create a foundation for protecting Nepali products such as basmati rice, Ilam tea, Jumla beans and Bhaktapur’s juju dhau—literally translating to ‘king of yoghurt’—in domestic and international markets.
Nepal currently has no separate law governing geographical indications. Article 25 of the constitution guarantees property rights, including intellectual property, while the Copyright Act 2002 provides some protection for intellectual creations.
However, the government is seeking to replace the outdated Patent, Design and Trademark Act 1965 with a broader industrial property law. The bill was previously introduced in the House of Representatives on June 6, 2025, by then-industry minister Damodar Bhandari, but became inactive after Parliament was dissolved on September 12 following the Gen Z protests. The government has now revived the draft as part of its list of priority legislation to be enacted within a year.
The proposed law defines a geographical indication as “any sign or geographical name identifying goods produced or processed in a specific geographical location or region where those goods possess qualities, reputation or characteristics associated with that area.”
The bill outlines the criteria for granting GI protection and includes provisions allowing Nepal and other countries to recognise each other’s GI-protected products through bilateral agreements. It also proposes a separate national symbol or logo for GI products.
The long-running basmati dispute
The international battle over basmati gained global attention in 1997, when the Texas-based company RiceTec registered a patent with the United States Patent and Trademark Office (USPTO) for basmati rice and named it “Texmati.”
India contested the claim through the Agricultural and Processed Food Products Export Development Authority (APEDA), while over 50,000 people staged a protest outside the US Embassy in New Delhi. Environmentalist Vandana Shiva termed RiceTec’s claim ‘absurd’.
Following India’s challenge, RiceTec withdrew 15 of its original 20 claims. The remaining rights were limited to three specific hybrid varieties developed by the company itself: Basmati-867, RT-1117 and RT-1121.
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