The international trade of Basmati rice has become not only an agricultural, but also a political issue in recent years. Basmati rice is primarily grown in the foothills of the Himalayan mountains in the Indian-Pakistani regions of Punjab, Haryana, and Uttar Pradish. The long stemmed rice has a distinct nut-like flavor that has been favored by emperors and aristocrats for years. In 1997 an American company, RiceTec Inc. was granted a US patent (#5663484) to call its American grown rice Basmati and label it as such for export. In response Indian and Pakistani officials were outraged because of their vast economic reliance on the Basmati export. Approximately 45,000 tons of Basmati rice was exported to the US before the patent (ten percent of the total export) and much else was sent to Europe, the Middle East, and West Asia. The Indian government has since been fighting to nullify the patent. .
The most important effect of globalization pertaining to this issue is the risk of population expansion and poor quality of life in the central Basmati regions. Many third world farmers base their entire income on the production of this food and with new competition comes a loss of demand and thus a reduction in employment opportunities. This is a significant factor when, according to Bradshaw and Wallace, the population in India is expected to double by 2014. Conversely, the US population is increasing at an exponentially slower rate. The biggest cost to the Indian-Pakistani countries is the US production of the product at a lower cost to other countries for import. An Indian newspaper called the Economic Times was quoted to have stated, " Patenting Basmati in the US is like snatching away our history and culture." Rice has been the basis of Southeast Asian food and culture for centuries so many view this "biopiracy" as having not only an economic blow, but a cultural impact as well.
