Skip to main content

Indian pharma cos 'resisting to pay' required 3-5% on extracted bioresources: Study

By Souparno Banerjee*

Biodiversity conservation is an absolute imperative today, but is India serious about it? Notwithstanding the alacrity that the country has shown in ratifying and supporting international biodiversity conventions or in enacting domestic laws and regulations, India’s record in conservation and use of its bioresources has been quite dismal – finds an investigative analysis done by "Down To Earth" (DTE) magazine.
Thirty years ago, in 1992, the world had agreed on a landmark global treaty: the Convention on Biological Diversity. Says Sunita Narain, editor of DTE and director general of Centre for Science and Environment (CSE), which helps publish the magazine:
“What became clear very soon is that the conservation of bioresources, and particularly their utilisation, require active involvement of local communities. These communities need to be active partners and also share the profits of the use of their resources and knowledge.”
In 2010, as a result, came the Nagoya Protocol, designed as an instrument for fair and equitable sharing of benefits with communities.
India has been quick to act in terms of ratification of the Convention and the Protocol. In 2002, the country adopted the Biological Diversity Act and set up an elaborate institutional framework to protect bioresources and to share benefits with knowledge-holders.
The National Biodiversity Authority was established; each state now has its own biodiversity board, and each village its biodiversity management committee (BMC). The BMCs are required to prepare the People’s Biodiversity Registers, and have powers to impose charges and fines for extraction of resources found in their villages. Says Narain:
“But our analysis, based on field visits and conversations with experts, finds that the entire effort to share benefits with communities has been reduced to, at best, a meaningless bureaucratic exercise and at worst, a charade.”
Says Vibha Varshney, associate editor, DTE and the lead writer of the analysis: “The system of access and benefit sharing can work only if the traditional knowledge holders are recognised; if the traders and manufacturing companies that use their knowledge are held liable for payments; and if this payment is then transferred to the community or traditional-knowledge holder.”

Key findings

No data on funds: 

The DTE investigation says there is no data available – other than from a few states – on the money received from companies and traders for access and benefit sharing (ABS). It is not clear if all companies have paid for the use of resources and knowledge, or on what basis and how much.
In the case of the Irula Cooperative in Tamil Nadu – traditional knowledge holders of the method of collecting snake venom used for pharmaceutical products – only one company had agreed to pay, but even that promise remained unfulfilled.

No disbursal to communities: 

The state boards have informed DTE that the money collected has not been disbursed to communities – the reason they give is there is no information available about the knowledge holders.
The law provides that if the information is not available, then funds should be spent on conservation in the region from where the knowledge-bioresources come. As of now, the funds are lying unutilised, say the state boards.

Poor quality of People’s Biodiversity Registers (PBRs): 

Following the directions of the National Green Tribunal, as many as 2,66,135 PBRs have been made at break-neck speed within two years. Says Varshney: “Given the speed of this ‘exercise’, our assessment is that the quality of these registers is poor, and defeats the very purpose of documentation of biodiversity for conservation and knowledge for its utilisation.”

Legal hurdles and challenges: 

As per law, Indian pharmaceutical companies are required to pay between 3-5 per cent on the extracted bioresources or between 0.01-0.05 per cent on the annual gross ex-factory sales. But companies have resisted paying.
Sunita Narain
In most cases, the courts have held that these companies have to seek prior approval and make payments to the National Biodiversity Authority or the state boards. But the matter has not moved much. It is not clear who was required to pay, how much or what has already been paid.

Amendments to the National Biodiversity Act

Narain points out that it is important at this stage to review the recently introduced amendments to the National Biodiversity Act, which are currently being discussed by the joint committee of the Parliament. She says: 
“We believe these amendments do not address the substantive issues that would fix the current problems that we have outlined in our analysis. What is needed is to strengthen the accountability of the state boards; to share benefits with communities; and to undertake conservation of bioresources. There is little to suggest that these will be done.”
According to CSE, the amendment would weaken the system of access and benefit sharing by changing the definition of who is required to take approval for access or commercial utilisation. As per the 2002 Act, there is a provision defining a non-Indian entity, which would mean that an entity that is non-resident or a corporate body that is not incorporated or registered in India would require to take prior approval from the national board.
The amendment proposes that the provision defining the non-Indian entity be substituted with “foreign controlled company”. Adds Varshney: “It is not clear why this change has been brought about and so it seems the purpose is to limit the prior approvals by the National Authority.”
The amendments have also included the term “codified traditional knowledge” – under which the users, including practitioners of Indian systems of medicine will be exempted from the provisions of approvals for access or sharing benefits. Says Narain:
This is an issue that needs to be discussed further. We realise that the global framework of access and benefit sharing has never considered the issue of codified knowledge – and that this is important for countries like India where traditional medical systems are rich and relevant.
"But it is not clear how this codified knowledge will be distinguished from the local community held knowledge and if this will not defeat the very purpose of the Biodiversity Act. What needs to be done is to clarify this even as the Amendments strengthen the provisions for sharing benefits with communities and knowledge-holders.”

Narain adds:
“But all this will not add up unless we can resolve how the bioresources in the wild and under strict prohibitory regulations – which do not allow for their cultivation, collection or trade – will be made part of these efforts to conserve resources through their utilisation.
"In the case of the Kani tribals and their knowledge of Arogyapacha – a medicinal plant – this was the fundamental flaw. After all the negotiations were done for access and benefit sharing, the plant could not be collected or grown; in fact, cases were filed against the tribals for doing so.”

The 2021 Amendment Bill has a provision for identification of such cultivated biodiversity. But Varshney says this needs to be elaborated on, so that all the strenuous efforts made to set up the paraphernalia for biodiversity conservation and for access and benefit sharing does not go waste.
Says Narain:
“It is important that we discuss this issue as we need to learn from what has been done till now, so that we can strengthen conservation and make sure communities and traditional knowledge holders benefit from these efforts.
"This is critical in the fight to protect bio-resources from loss and extinction. The global community will meet later in 2022 to discuss these issues and to evolve the way ahead. It is important that the world has new learnings to share and ways to strengthen the Convention on Biological Diversity and the Nagoya Protocol.”

---
*With Centre for Science and Environment (CSE)

Comments

TRENDING

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Two more "aadhaar-linked" Jharkhand deaths: 17 die of starvation since Sept 2017

Kaleshwar's sons Santosh and Mantosh Counterview Desk A fact-finding team of the Right to Feed Campaign, pointing towards the death of two more persons due to starvation in Jharkhand, has said that this has happened because of the absence of aadhaar, leading to “persistent lack of food at home and unavailability of any means of earning.” It has disputed the state government claims that these deaths are due to reasons other than starvation, adding, the authorities have “done nothing” to reduce the alarming state of food insecurity in the state.

What's behind Donald Trump's 'narco-state' accusation against Venezuela

By Manolo De Los Santos  The US government has revived its campaign to label Venezuela a "narco-state", accusing its top leadership of drug trafficking and slapping hefty bounties on their heads for capture. This campaign, which only momentarily took a backseat, is a strategic fabrication, not a factual assessment. This accusation, particularly amplified under the Trump Administration, is a calculated smokescreen to justify a long-standing agenda: the overthrow of the Venezuelan government and the seizure of its vast oil and mineral resources. A closer examination of the facts reveals a country that has actively fought drug trafficking on its own terms and a US government with a clear and consistent history of destabilizing independent countries in Latin America.

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

1857 War of Independence... when Hindu-Muslim separatism, hatred wasn't an issue

"The Sepoy Revolt at Meerut", Illustrated London News, 1857  By Shamsul Islam* Large sections of Hindus, Muslims and Sikhs unitedly challenged the greatest imperialist power, Britain, during India’s First War of Independence which began on May 10, 1857; the day being Sunday. This extraordinary unity, naturally, unnerved the firangees and made them realize that if their rule was to continue in India, it could happen only when Hindus and Muslims, the largest two religious communities were divided on communal lines.

Ground reality: Israel would a remain Jewish state, attempt to overthrow it will be futile

By NS Venkataraman*  Now that truce has been arrived at between Israel and Hamas for a period of four days and with release of a few hostages from both sides, there is hope that truce would be further extended and the intensity of war would become significantly less. This likely “truce period” gives an opportunity for the sworn supporters and bitter opponents of Hamas as well as Israel and the observers around the world to introspect on the happenings and whether this war could have been avoided. There is prolonged debate for the last several decades as to whom the present region that has been provided to Jews after the World War II belong. View of some people is that Jews have been occupants earlier and therefore, the region should belong to Jews only. However, Christians and those belonging to Islam have also lived in this regions for long period. While Christians make no claim, the dispute is between Jews and those who claim themselves to be Palestinians. In any case...

Fate of Yamuna floodplain still hangs in "balance" despite National Green Tribunal rap on Sri Sri event

By Ashok Shrimali* While the National Green Tribunal (NGT) on Thursday reportedly pulled up the Delhi Development Authority (DDA) for granting permission to hold spiritual guru Sri Sri Ravi Shankar's World Culture Festival on the banks of Yamuna, the chief petitioners against the high-profile event Yamuna Jiye Abhiyan has declared, the “fate of the floodplain still hangs in balance.”