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Saturday / February 22. 2025
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Agribusiness leaders advocate for reduced compliance burden and clearer regulations.

The sustainable food and agriculture alliance Soluble Fertilizer Industry Association (SFIA) and the Vidarbha Industries Association (VIA) successfully organised a high-level conference in Nagpur, bringing together over 70 agribusiness leaders, policymakers, and sustainability experts. The event addressed key challenges faced by Micro, Small, and Medium Enterprises (MSMEs) under India’s Biodiversity Act, with a strong demand for policy reforms, including an exemption of MSMEs from Access and Benefit Sharing (ABS) obligations and greater clarity in regulatory definitions.

Industry leaders highlighted that MSMEs—integral to India’s agrarian economy—lack the resources to navigate the complex compliance requirements imposed by ABS contributions under Section 7 of the Biodiversity Act. Participants argued that applying ABS obligations to small-scale enterprises would significantly increase their operational costs and administrative burden, potentially stifling growth and innovation. Drawing from global examples, industry representatives pointed to countries like Brazil and South Africa, where MSMEs are exempt from similar obligations, urging India to adopt a more supportive policy framework.

Dr Suhas Buddhe, Advisor, Soluble Fertilizer Industry Association (SFIA), stated, “MSMEs are already struggling with rising input costs and market uncertainties. Imposing additional compliance requirements under the ABS framework could push many businesses towards financial distress. We urge the government to align policies with global best practices to protect and promote these enterprises.”

Stakeholders also underscored the urgent need to refine key definitions within the Biodiversity Act, particularly terms such as “bio-utilisation,” “commercial use,” and “value addition.” The lack of precise terminology has led to inconsistent interpretations, legal uncertainties, and reluctance among businesses to invest in biodiversity-related ventures. A collective call was made for a structured dialogue between the industry and the National Biodiversity Authority to streamline definitions and foster trust. One of the participants noted, “Effective regulation is built on clarity. Without well-defined terms, compliance becomes a challenge, leading to hesitation in adopting biodiversity-friendly business models. A consultative approach between industry and regulators is essential for a balanced and transparent framework.”

The conference concluded with a strong consensus on the need for immediate policy intervention. Attendees resolved to submit a formal proposal to the Ministry of Environment, Forest and Climate Change (MoEFCC), advocating for the exemption of MSMEs from ABS contributions to reduce regulatory pressure and support small businesses. They also recommended the formation of a dedicated committee to review and clarify ambiguous definitions in the Biodiversity Act, alongside regular consultation mechanisms between agribusiness stakeholders and regulatory bodies to ensure policies remain practical and aligned with industry realities.

SFIA and VIA, as leading industry bodies committed to sustainable agriculture and policy advocacy, will spearhead efforts to engage with policymakers and ensure the concerns of MSMEs are addressed. The conference reinforced the need for a balanced approach that safeguards biodiversity while enabling economic growth and ease of doing business.

Agribusiness leaders advocate for reduced compliance burden

Innovations including GM, hold great potential to make crops resistant to pests and diseases, enhance climate resilience, and contribute to sustainable agricultural practices.

Recently the Supreme Court reopened its hearing on several petitions contesting the central government’s decision to commercially grow genetically modified (GM) mustard. In wake of the ongoing proceedings in the Supreme Court of India on GM mustard, the Federation of Seed Industry of India (FSII) has expressed that FSII is optimistic about the regulatory process adopted for scrutinizing GM crops in India.

Ram Kaundinya, Advisor, Federation of Seed Industry of India (FSII) said, “We are optimistic that a holistic picture emerges by recognising the significant role of technology in increasing agricultural production, solid scientific evidence, India’s robust regulatory systems and the nation’s long-term interests.

It is essential that the country’s aspirations in terms of reducing the huge edible oil imports, saving huge foreign exchange, boosting productivity and farmers’ incomes are given due importance as discussions progress. Hence, we are hopeful that the cultural, social and nutritional importance of mustard for India are recognised while deliberating the issue holistically.

We also reiterate that the regulatory process adopted for scrutinizing GM crops in India including the biosafety protocols adhered to by GEAC and RCGM for GM approvals, are not only robust but align with globally accepted and benchmarked standards.

Innovations including GM, hold great potential to make crops resistant to pests and diseases, enhance climate resilience, and contribute to sustainable agricultural practices. Thus, India needs to be open to exploring such innovative technologies to transform its agrarian sector, which forms the basis of livelihoods of nearly two-third of the population.

Kaundinya also added that we at FSII, continue to closely watch the developments in this regard. We hope that science will prevail and ultimately, farmers will be able to access and benefit from scientific and technological innovations in future.

Innovations including GM, hold great potential to