Seeds Bill 2004

The Seeds Bill was introduced in the Rajya Sabha on 9 December 2004. It has been referred to the Standing Committee on Agriculture (Chair: Prof Ram Gopal Yadav).

HIGHLIGHTS OF THE BILL
(Read this section in detail)

• The Seeds Bill, 2004 aims to regulate the quality of seeds sold, and replaces the Seeds Act, 1966.

• All varieties of seeds for sale have to be registered. The seeds are required to meet certain prescribed minimum standards.

• The Bill does not restrict the farmer's right to use or sell his farm seeds and planting material, provided he does not sell them under a brand name. All seeds and planting material sold by farmers will have to conform to the minimum standards applicable to registered seeds.

• 
  This page is organised as follows: The highlights of the Bill and the key issues to be considered are listed briefly first; the details of each are presented thereafter. Click here to see the highlights in detail, and here to see the detailed analysis of key issues.
  If a registered variety of seed fails to perform to expected standards, the farmer can claim compensation from the producer or dealer under the Consumer Protection Act, 1986.

• The Bill permits self certification of seeds by accredited agencies and allows the central government to recognise certification by foreign seed certification agencies.

• Every seed producer and dealer, and horticulture nursery has to be registered with the state government.

KEY ISSUES AND ANALYSIS
(Read this section in detail)

• Some provisions of the Seeds Bill, 2004 contradict and overlap with the Protection of Plant Varieties and Farmers' Rights Act, 2001 (PPVFR Act).

• Although farmers are exempt from registering their seed varieties, the seeds have to conform to standards prescribed for commercial seeds. Farmers may find it difficult to adhere to the standards required of commercially sold seeds.

• Compensation for underperformance of seeds will be governed by consumer courts. This provision is unlike the PPVFR Act, which allows compensation to be decided by the Authority established under that Act.

• Seed inspectors can take samples from anyone selling purchasing or transporting seed. They have the power of search and seizure without a warrant.

• It is not clear whether the Bill bans certain genetic engineering technologies such as 'genetic use restriction technology' and 'terminator technology.' These technologies preserve intellectual property rights by either requiring specific additives, or by making the next generation seeds sterile.

Context

Agricultural growth in India averaged just 2.8% per annum during the period of 1991-2005, much lower than the average annual GDP growth of 6.2% during this period. Given that about two-thirds of the country's population is dependent on farm related income, increasing agricultural growth rate will be beneficial not just for the country's food security but also for improving the livelihood of a large proportion of the population. Availability of good quality seeds to farmers is a necessary condition for boosting agricultural output.

Currently, the seed sector is governed by the Seeds Act, 1966, the Seeds Control Order, 1983 (under the Essential Commodities Act, 1955), and the Protection of Plant Varieties and Farmers' Rights Act, 2001 (PPVFR Act). The Seeds Act, 1966 regulates the quality of certified seeds; the Seeds Control Order, 1983 regulates and licenses the sale of seeds; and the PPVFR Act protects the intellectual property rights of plant breeders.

The seeds sector has witnessed many changes since 1966 when the existing Seeds Act was passed. These include new technologies such as genetically modified seeds, and the entry of private and foreign seeds companies. In order to address these changes, the proposed Seeds Bill, 2004 seeks to replace the Seeds Act, 1966. The principal changes include regulation and registration of all seeds to be sold (instead of only notified kinds), provisions for self-certification and accreditation of private seed testing laboratories, and regulation of transgenic seeds [*].

Key features

• Registration and Certification

  The Bill proposes to establish a Central Seed Committee (CSC), which may appoint as many Sub-Committees as needed. One of the sub-committees that would be established is the Registration Sub-Committee, which shall maintain a National Register of Seeds for all varieties of seed. Every state government would establish a State Seed Committee which would have an advisory role. The CSC may, after consulting with state governments, establish a State Seed Certification Agency in the respective states.

  Any type of seed for sale has to be registered with the Registration Sub-Committee. The registration is valid for 15 years for annual/biennial crops (such as paddy, where harvesting is done once or twice a year) and 18 years for long duration perennial crops (such as mango). On expiry, the registration can be renewed for a similar period. All registered seeds need to meet minimum standards with respect to the proportion of seeds that must germinate, levels of genetic and physical purity, and the permitted proportion of diseased seeds.

  No transgenic variety of seed would be registered unless the applicant has obtained clearance under the provisions of the Environment (Protection) Act, 1986. A variety of seed containing any technology considered harmful or potentially harmful shall not be registered.

  Any seller of seeds can get the seed certified by the State Seed Certification Agency or any other accredited certification agency; self certification may also be permitted to accredited agencies. The central government may recognize certification by a foreign seed certification agency.

  Every seed producer and dealer, and horticulture nursery has to be registered with the state government. Seed producers need to meet specifications regarding infrastructure, equipment and qualified manpower. An owner of a horticulture nursery has to keep records such as the origin of every planting material, a layout plan as well as the performance record of every mother tree in the nursery.

• Rights of farmers

  Exemption: The Bill protects the right of a farmer to save, use, exchange, share or sell his farm seeds and planting material. However, the farmer cannot sell seeds or planting material under a brand name. Also, all seeds sold by farmers need to conform to the minimum standards regarding germination, physical purity and genetic purity applicable to registered seeds.

  Compensation: For all registered varieties, seed producers, distributors and vendors have to disclose the expected performance under certain given conditions. If the seed fails to perform to expected standards, the farmer can claim compensation from the dealer, distributor or vendor under the Consumer Protection Act, 1986.

• Regulatory structure
  

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  The central government shall establish the Central Seed Committee (CSC), consisting of a Chairperson, seven ex officio members and thirteen members nominated by the central government. These include two members each to represent the seed industry and farmer interests. The CSC would advise the central and state governments on matters related to seed planning, seed development and production, export and import of seeds, standards for registration, certification and seed testing, and seed registration and its enforcement. CSC may also specify the details to be stated on the label of seed container to indicate minimum standards and expected performance.

  State Seed Committees would advise the CSC and the state government on issues related to the registration of local seeds, and of producers, dealers and nurseries. They will maintain a district-wise list of seed dealers, seed producers, seed processing units and horticulture nurseries.

  The Registration Sub-Committee would register the varieties of seeds after scrutinizing their claims in the prescribed manner. It will maintain a National Register of Seeds for registering all kinds of seeds and publish the list at appropriate intervals.

  The central government shall constitute an appellate authority consisting of a single person or three persons. This authority will hear appeals from persons aggrieved by the decision of the Registration Sub-Committee or the State Seed Certification Agency.

  Central and State Seed Testing Laboratories, would analyse all varieties of seed. Every Seed Testing Laboratory would employ Seed Analysts who have the prescribed qualifications.

  State governments would appoint seed inspectors. The Seed Inspector may (a) take samples of any variety from a seed seller; (b) send the samples for analysis to the Seed Analyst; (c) enter and search any place where he has reason to believe that an offence has been committed against the provisions of the Act; (d) examine any record or document and seize it if he thinks that it may be necessary for providing evidence against an offence punishable under this Act; and (e) break open any container of seeds or any door where any such seed may be kept for sale.

• Import and export

  Import of seeds would be subject to the Plant Quarantine (Regulation of Import into India) Order, 2003 or any corresponding order under the Destructive Insects and Pests Act, 1914. Such seeds also need to conform to the standards of germination, genetic and physical purity and seed health, as applicable for registered seeds. The central government can restrict export of seeds if it is deemed to affect the food security of the country.

• Penalties

  Any person who contravenes any provisions of the Act or imports, sells or stocks seeds deemed to be misbranded or not registered, can be punishable by a fine between Rs 5,000 and Rs 25,000. The penalty for giving false information is a prison term up to six months and/or a fine up to Rs 50,000. In case of companies, the person(s) in charge of conduct of the business of the company will be held accountable.

PART B: KEY ISSUES AND ANALYSIS

The Seeds Bill, 2004 should be seen in the context of the Seeds Act, 1966 which it replaces, and the PPVFR Act, 2001. The main objective of the Seeds Bill is to ensure availability of quality seeds to farmers. The proposed Bill seeks to update the existing Act in order to address changes in technology and the structure of the seeds sector. The PPVFR Act sets up a framework to protect the intellectual property rights of breeders, while safeguarding the rights of farmers. We list below the main changes in the Seeds Bill 2004 from the Seeds Act, 1966.

Table 1: Comparison of Seeds Act, 1966 and Seeds Bill, 2004

There are several contradictions and overlaps between the PPVFR Act and the Seeds Bill, 2004. We list these below. Unless these are reconciled and there is clarity on which of these two legislations will supercede the other in cases of conflict, there would be scope for litigation.

Table 2: Comparison of Seeds Bill, 2004 and PPVFR Act, 2001

• Protection of farmers' rights

  Exemption for farmers: This Bill exempts a farmer from compulsory registration of seed varieties in order to use, exchange, share or sell his farm seeds or planting material. However, it stipulates that he cannot sell any seed under a brand name. Also, any seed sold by a farmer has to conform to the minimum limits of germination, and physical and genetic purity as applicable to commercially sold seeds. This last proviso (minimum standards of germination and purity) could be difficult to implement. It is estimated that seeds saved and exchanged by farmers constitute above 80% of the seeds planted [1], and there would be a need to establish the physical infrastructure required to test these. Such testing would also lead to an increase in the cost of seeds.

  In contrast, The PPVFR Act, 2001, only restricts the farmer from selling branded seed. There is no other requirement for a farmer to sell seeds. The exemption clause given in the PPVFR Act is easier to implement [2].

  Compensation: The farmer has to approach the Consumer Courts to claim compensation if the seeds do not perform to expected levels. There is a contradiction between this provision and the PPVFR Act which permits farmers to claim compensation through the Authority set up under that Act. Given the number of factors (such as climate, fertilizer, water) that affect the performance of a crop, it may be difficult to prove that underperformance of a crop was on account of poor quality of seed. Indeed, there have been recent cases where the issue has not been fully resolved [3]. Furthermore, it is not clear whether the compensation would include the value of the crop or only the cost of the seed [4].

• Registration and certification

  Exclusivity: Only those varieties of seeds that are registered may be sold. The Bill does not clarify whether a seed producer may sell seed which is registered by a different producer. The absence of a non-exclusivity requirement could lead to a monopoly on existing and common varieties by the first mover on any registration. Issues regarding intellectual property rights may be addressed through the provisions of the PPVFR Act.

  Disclosure of Parentage: The Bill leaves it to regulations to specify the information that an applicant has to furnish, such as data about the source and geographical origin, in order to register a seed variety. It might lead to a situation where seeds could be registered without disclosing the parentage or origin of the seed. Although the PPVFR Act, 2001, makes it mandatory for the applicant to issue specific details about the parental lines of a variety, it is not clear which legislation would take precedence in case of conflict. In such a case, an applicant might be able to register a variety of seed which has traditionally been used by a farmer (i.e., farmers' variety). The Bill also does not have the provision of benefit-sharing [*] (as mentioned in the Convention on Biological Diversity and the PPVFR Act), in which case any applicant can register and use a farmer's variety of seed without compensating the farmer [5].

  Traceability and Quality Assurance: The Bill does not provide for a mechanism to trace back a packet of seed to the dealer, processor and producer. Also, there is no specification of quality assurance systems. This would make it difficult to trace back a defective lot, and rectify any deficiencies in the supply chain.

  Transgenic Varieties: The Bill forbids the use of any technology that may be harmful or potentially harmful, and includes 'genetic use restriction technology' and 'terminator technology' [*] in the definition of 'technology'. It is not clear whether both these technologies are explicitly banned in this Bill. A farmer planting seeds containing terminator technology cannot use the seed from his crop for the next generation, and has to purchase new seed every season. The PPVFR Act, 2001 does not permit registration of any variety containing terminator technology.

  Self Certification and Testing before Registration: Seed producers would be permitted to self-certify the performance of their seeds under certain conditions. The seed companies need to provide the results of multi-locational trials before registration. This opens up the possibility of false declaration by seed companies. To prevent this, there could be a case for allowing only government agencies to conduct these trials and grant certification.

• Horticulture Nurseries

  Every horticultural nursery has to be registered with the state government and has to maintain records of layout plan, source of every planting material etc. The argument is that performance of horticultural planting material (such as mango) is known only after a number of years, and these trees are harvested for a number of years. The investment and risk for the farmer is significantly higher than in the case of one-season grain, and this justifies stricter norms. That said, nurseries in the unorganized sector may find it difficult to adhere to these conditions.

• Role of Seed Inspectors

  The Seed Inspector has the power to enter and search as well as break open container or break open doors, without a warrant. This is different from the provisions under the Code of Criminal Procedure, 1973 under which a warrant signed by the district magistrate, sub-divisional magistrate or first class magistrate is necessary for search and seizure.

• Penalties

  The penalty for selling substandard seeds is between Rs 5,000 and Rs 25,000. This may not prove to be a deterrent for a large seed company but which may be significant for a farmer or a small dealer.

• Finances

  The financial memorandum estimates that Rs 36 lakh may be required to meet the recurring and non-recurring expenditure during the financial year 2004-05. It does not estimate the expenditure that would be required to establish central and state testing laboratories and appointing seed inspectors and seed analysts.