At its core, it's about a prolonged economic dispute between India and Pakistan – the two largest producers of the crop – where both parties want to get exclusive rights to use the name basmati rice and thus be able to put a premium on the prices for their rice.
EU negotiators on site in New Delhi to negotiate a trade agreement are currently being subjected to pressure on the issue from the Indian government, according to sources for Financial Times. But if the EU were to give in to the Indian demands, it would cause a conflict between the EU and Pakistan.
Brussels is now trying to gain more time, says a source to the newspaper.
The issue is connected to the disputed area of Kashmir, which has been a territorial conflict between Pakistan and India since 1947.
