India agro-tech industry flays GM seed licensing policy

The India agro-tech industry, including seed companies and biotech licensees, have strongly opposed the proposed GM seed licensing policy, which was introduced for public comment in May.

The guidelines have been criticised as introducing a regime of 'compulsory licensing' for patented technology. They are also said to hamper innovation and adversely affect future investment in farm technologies in India.

"If such guidelines are implemented, India may forgo the benefits of having innovative seed companies based on its territory", said Michael Keller, secretary general of the International Seed Federation, whose members comprise 96% of the international seed trade. "By putting in place a compulsory licensing system, the Ministry of Agriculture will greatly decrease the interest of seed companies to invest in India."

CII, in its submission to the ministry, questions the price control order as, according to it, Bt Cotton does not fit in to the definition of an essential commodity as described in the Essential Commodities Act 1955, the basis of the price control order. Salil Singhal, on behalf of CII, further added, "Government of India should encourage competition in both public and private sector to develop new technologies and issues related to price or royalty should be left to the market forces to decide."

Clauses in the guidelines such as payment of trait fee linked to "effectiveness of technology" and capping the royalty value or the GM trait value to the maximum sale price of GM cotton seeds at 10% for the first five years and then decreased by 10% every year have also been highlighted as myopic moves by the government which are anticompetition and against global IP policy.

"We are concerned about the contradictory impression such laws will create when the Government is trying to build investor confidence, enhance ease of doing business through multiple initiatives and unveiling of the National IPR Policy", said DS Rawat, secretary general, Assocham.

"It sets a regressive precedent that can be extended across various crops in the future," said Dr Shivendra Bajaj, ED of ABLE-AG.

ET View: Foster innovation

The government needs to overhaul its innovation policy on seeds. It makes no sense to place binding restrictions on seed developers, pecuniary or otherwise. There may be a case for MRP on the seeds of seed companies, but biotech developers who license to seed companies need proper incentives and the right environment to germinate new seed varieties. And putting onerous restrictions on the returns of biotech trait developers would nip innovation in the bud.