The European Union has approached the World Trade Organisation to initiate the process of negotiating a new rice import regime. The move is expected to have serious implications on India's basmati exports.

Exports of brown basmati to the EU have enjoyed zero duty for the last six years due to a tariff concession of euro 250 a tonne, which run the risk of being withdrawn in any new rice import regime, industry and government officials said in New Delhi.

"The European Union intends to renegotiate its commitments for market access to rice under Article 28 of the agreement. The idea is to continue domestic protection and reduce import," RS Seshadri, director, United Riceland Company, said at a seminar on agricultural negotiations organised by the Federation of Indian Chambers of Commerce and Industry.

R Gopalan, joint secretary in the commerce ministry, said the request for negotiation has to be accepted and both the industry and government will now have to sit together and chalk out a strategy to deal with the situation.

The All India Rice Exporters Association said it was too early to form a response to the new development, and the latest EU move seems to have been the result of increasing domestic rice production due to which the region feels the imports need to be controlled.

Further, he said the United States was keen to push its own rice exports to the EU which have fallen in proportion to the rise in India's brown basmati exports to the region.

Experts, however, said the negotiation mandate given by the European Council suggests that there should be favourable treatment of the developing countries and creation of a new tariff line for rice.