The National Gene Fund plays an important role in India’s legal framework for the protection of plant varieties and farmers’ rights.

Established under Section 45 of the Protection of Plant Varieties and Farmers’ Rights Act, 2001 (PPVFR Act), this fund serves as a repository of resources aimed at ensuring equitable benefit sharing, conservation of genetic resources, and support for agricultural sustainability.

The Act emphasizes the importance of recognizing the contributions of farmers and communities in preserving plant genetic diversity, encouraging innovation, and ensuring that the benefits derived from plant variety development are distributed justly.

Also Read: Procedure and Effect of Registration of Plant Variety under the Protection of Plant Varieties and Farmers Rights Act, 2001

Creation of the National Gene Fund

Section 45 of the PPVFR Act mandates the establishment of the National Gene Fund by the Central Government.

This fund collects various forms of financial contributions that are essential for supporting farmers’ rights, rewarding communities for their contributions to plant breeding, and fostering the conservation and sustainable use of plant genetic resources.

The Fund is designed to ensure that farmers and local communities, who have traditionally preserved and developed plant varieties, are recognized and compensated when their efforts contribute to the development of new plant varieties.

The PPVFR Act recognizes the need for benefit sharing with farmers and communities, which is facilitated through the National Gene Fund.

It is a critical mechanism for upholding the principle that genetic resources and traditional knowledge are invaluable assets that must be safeguarded for future generations.

Also Read: India has Adopted a New Sui-Generis System for the Protection of Plant Varieties in India

Sources of the National Gene Fund

The fund is constituted from multiple sources as per Section 45, which outlines the following financial streams:

#1 Benefit Sharing (Section 26 and Section 45(1)(a))

A significant source of the Gene Fund is the benefit-sharing payments made by breeders of new plant varieties.

When a breeder registers a new variety, they must share a portion of the benefits accrued from the sale or commercialization of that variety.

The amount to be paid is determined by the Protection of Plant Varieties and Farmers’ Rights Authority after taking into consideration the contributions made by the farmers or communities in developing the plant variety.

This contribution is then deposited into the Gene Fund.

#2 Annual Royalty Fees (Section 35 and Section 45(1)(b))

Breeders are required to pay an annual royalty fee for maintaining the registration of their plant variety. This fee, determined based on the commercial success and market demand of the variety, is deposited into the Gene Fund.

Failure to pay this royalty could lead to the forfeiture of the registration, and these unpaid dues are also recovered as arrears of land revenue.

#3 Compensation for Communities (Section 41 and Section 45(1)(c))

When a community has made a significant contribution to the evolution of a plant variety, compensation is provided by the breeder and deposited into the Gene Fund.

Section 41 allows for claims to be made by individuals or organizations on behalf of local or village communities for their role in conserving genetic resources that have contributed to the development of a registered variety.

Once verified, the breeder is ordered to pay the compensation, which is deposited into the Gene Fund.

#4 Contributions from National and International Organizations (Section 45(1)(d)

Contributions may also come from national or international organizations and other sources, which further strengthen the resources available in the Gene Fund.

These contributions can support broader goals of genetic resource conservation and sustainable agricultural practices.

Utilization of the National Gene Fund

The utilization of the National Gene Fund is governed by Section 45(2) of the PPVFR Act.

It lays down the specific purposes for which the fund can be used:

1. Benefit Sharing Payments (Section 45(2)(a)): One of the primary purposes of the Gene Fund is to disburse benefit-sharing payments to farmers and communities who have contributed genetic material or traditional knowledge that was used in developing new plant varieties. This ensures that the contributions of these stakeholders are recognized and rewarded, promoting fairness in agricultural innovation.
2. Compensation to Communities (Section 45(2)(b)): Compensation granted under Section 41 for communities that have contributed to the development of a variety is disbursed from the Gene Fund. This serves as an important financial incentive for communities to continue conserving and improving traditional plant varieties.
3. Conservation of Genetic Resources (Section 45(2)(c)): A significant portion of the Gene Fund is dedicated to supporting the conservation and sustainable use of genetic resources, both in situ (on-farm conservation) and ex situ (gene banks and other collections). The fund may also be used to strengthen the capabilities of local bodies such as Panchayats, enabling them to participate in conservation efforts more effectively. This highlights the importance of safeguarding India’s vast biodiversity for future generations.
4. Schemes for Benefit Sharing (Section 45(2)(d)): The Gene Fund is also used to finance schemes framed by the Central Government under Section 46 for benefit sharing. These schemes are designed to ensure that farmers, breeders, and communities receive the benefits they are entitled to, and the fund supports the administrative and logistical aspects of implementing these schemes.

Importance of the National Gene Fund

The National Gene Fund is a crucial instrument in achieving the objectives of the PPVFR Act. By ensuring that farmers and communities who contribute to plant breeding are compensated fairly, the fund promotes the continued conservation of genetic diversity, which is essential for food security, climate resilience, and sustainable agriculture.

It also encourages innovation by ensuring that breeders receive recognition and financial rewards for developing new varieties, thus stimulating research and development in the agricultural sector.

Moreover, the Gene Fund helps to address issues of social justice by recognizing the historical contributions of farmers and local communities, who have often been overlooked in the formal processes of plant breeding and intellectual property rights.

The compensation mechanisms provided by the Gene Fund represent a step towards a more equitable distribution of the benefits arising from the use of genetic resources.

Verdict

The National Gene Fund is a vital component of India’s efforts to balance the interests of plant breeders and farmers while promoting sustainable agriculture and biodiversity conservation.

By facilitating benefit sharing, supporting genetic resource conservation, and ensuring fair compensation for communities, the Gene Fund fosters an environment of cooperation and innovation in agriculture.