Guwahati: Assam is reaping the benefits of GI Tags and evidence points to better prices for products with a geographical identity.
As the importance of product genuineness and its role in marketing endures to rise, industry specialists are emphasizing the need for augmented focus on Geographical Indication (GI) tagging. GI tags, which confirm products as initiating from exact regions, are becoming a key in upholding product genuineness and endorsing local goods in the global marketplace.
According to Rajiv Ashok, Managing Director of North Eastern Regional Agricultural Marketing Corporation (NERAMAC), consumer awareness is key to solving the full potential of GI-tagged products. Speaking to Business North East (BNE), Ashok emphasized, “Full value unlocking of GI products can happen only when the consumer is as aware of the significance of a GI tag as the producer.”
In Assam, the value of Muga silk mekhela in 2024 ranges from Rs 10,000 to Rs 50,000, depending on the complexity and workmanship involved. This exclusive and tough silk is extremely appreciated for its cultural and artistic meaning.
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The labour-intensive production procedure and limited obtainability subsidize to its high cost. Muga silk provisions the native economy and delivers livings for many rural relatives. In Guwahati, popular shops display Muga mekhela chadars starting from Rs 38,000, while Muga gamosas are obtainable for Rs 5,000 near the AIDC bus stop.
GI tags have pointedly impacted the value and market presence of Tezpur Litchi and Lakadong Turmeric in Meghalaya. The GI tag for Tezpur Litchi has protected its genuineness and enhanced its standing for quality and flavor, leading to exports to universal markets like London.
Lakadong Turmeric's GI tag has augmented its worth by up to 30-50 percent in certain stores, helping local farming groups and improving the monetary conditions of agriculturalists.
Professionals trust that as consumers start to understand the worth of these local crops, the marketplace for them will continue to grow. “The authenticity of the product increases, so people are not hesitant to pay the price,” said Jaydeep Baruah, Director of Assam Science Technology and Environment Council (ASTEC).
Before the GI tag, many products were sold at lower values due to being varied with non-authentic goods. “Products without GI tagging will still have the same lower worth,” he clarified.
In 2024, 19 traditional Assamese products and crafts were granted the GI tag, including Assam Bihu dhol, jaapi, and Sarthebari metal craft. Other Northeast products with GI status include Karbi Anglong ginger, Tezpur litchi, Joha rice, Boka Choul, Kaji nemu, Chokuwa rice, and Judima.
The GI tag is used for a variety of products, including agricultural properties, foodstuffs, wines, spirits, craft, and industrial items, all of which must meet certain principles tied to their geographical origin.
A GI tag pledges a product’s unique makings, standing, or features related to its geographical origin, safeguarding genuineness and cumulative value. The GI tag recovers a product’s brand standing and serves as an influential advertising tool, the creation of local goods appear as niche, premium items.
For example, products like Darjeeling Tea and Mysore Silk have long been associated with excellence and excellence, commanding significantly higher prices than their non-GI counterparts due to their recognized brand value.
The same is true for GI-tagged products from the Northeast, which are feeling similar success in the global market.
These products also benefit from increased demand in global markets, opening up new spread probabilities and heavy achievement for creators.
One of the most crucial welfares of GI tagging is its ability to protect against counterfeit goods. The GI tag ensures that consumers receive genuine products, safeguarding the authenticity and reputation of the product.
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As a result, producers can maintain premium pricing, as seen with GI products like Darjeeling Tea, Kashmiri Saffron, and Basmati Rice, all of which have experienced a significant rise in market value due to their cultural and geographical importance.
Despite the many compensations, experts caution that challenges remain in fully realizing the potential of GI-tagged products. Producers must focus on enhancing their marketing strategies, ensuring reliable quality control, and establishing efficient delivery channels to exploit the benefits of GI tagging.
As consumer awareness continues to grow, industry experts believe that the GI tag will further enhance the global recognition and market value of regional products, contributing to their long-term success in both domestic and international markets.
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