Wrapping up the two-day Commerce Secretary-level talks here on Wednesday evening, the two countries decided to work together on using geographical indication for basmati rice to check against its patenting.

Geographical indications like those made available to champagne or Scotch whisky factor in the specific characteristics of a product produced in a certain part of the world and ensure it is not copied in the form of a patent on variants.

Pakistan had questioned India's recent notification to allow Super Basmati rice with Islamabad claiming that it had developed the variety and India has no right to export the same under that brand name.

A joint statement issued after the talks said the two countries intended to set up a technical committee for filing joint geographical indication application for basmati.

Basmati rice has a lucrative market in Europe and the United States and India and Pakistan are eyeing for a slice of that.

India also agreed to expedite the process relating to certification of cement import from Pakistan by making changes in regulation to accept third party certification for import of the commodity.

The two countries also decided to allow their banks to open two branches each in the other country. The State Bank of India and Bank of India have applied for opening branches in Pakistan whose United Bank and National Bank want to start operations in India.

The applications of these banks would be processed either by December 31 this year or within six months, said the statement.

The bilateral trade between India and Pakistan is officially estimated at two billion dollars now but much more trade takes place through third countries like Dubai and Singapore.