Indian subsidiaries in Europe are sourcing Pakistani basmati despite the DGFT ban
On May 2, 2025, the Directorate General of Foreign Trade (DGFT) imposed a ban on Indian firms from sourcing any goods originating in or exported from Pakistan, following the April 22, 2025 Pahalgam attack in Kashmir. However, despite the restriction, several Indian subsidiaries based in Europe continue to trade Pakistani Basmati rice to European markets and other destinations.
Concerns for India
India asserts that the aromatic Basmati rice originates within its own borders, making it a significant concern for the country that certain firms are exporting the grain from Pakistan. The issue is further compounded by the fact that India holds the Geographical Indication (GI) tag for Basmati in European markets, a status that could be undermined by the continued export of Pakistani rice.
Since the ban, companies have imported Pakistani Basmati rice worth $13.5 million. Over the past decade, these firms have brought in Basmati valued at $2.5 billion, a practice viewed as unethical. Pakistan has profited by ₹11,000 crore from exporting the 1121 variety — originally the Indian-developed Pusa-1121.
APEDA maintains that no Indian companies are engaged in this trade, as any firm found involved would face blacklisting. According to the agency, the imports may be carried out by individuals of Indian origin based in Europe who are not linked to Indian firms.
