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TITLE Biotechnology in Indian Agriculture

AUTHORS Food and Agribusiness Strategic Advisory and Research (FASAR) Group, YES BANK Ltd.

No part of this publication may be reproduced in any form by photo, photoprint, microfilm or

any other means without the written permission of YES BANK Ltd. & ASSOCHAM.

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Maps depicted in the report are graphical representation for general representation only.

I am pleased to note that ASSOCHAM is organizing Bio Agri 2013 Summit - Towards Productive Efficiencies and

Farmers Growth on July 30, 2013.

This Summit is significant and important not only for farmers but also for all the stakeholders in agriculture and its

allied sectors. Biotechnology in agriculture holds immense potential as it can facilitate increased production thereby

contributing towards national food security.

I extend my heartfelt thanks to YES BANK for bringing out a very informative study. This extensively researched

publication will highlight various issues in the application of biotechnology to meet the current challenges in

agriculture and a way forward in its implementation.

ASSOCHAM extends its earnest gratitude to the Ministry of Agriculture, Department of Biotechnology, Ministry of

Earth Sciences, National Bank of Agriculture and Rural Development (NABARD) and the Council for Scientific and

Industrial Research (CSIR) for their support in making this programme a grand success.

This Summit would not be the same without due support from our corporate and media partners who have done an

outstanding job in mobilizing participation for this Summit. Last but not the least, I would like to acknowledge the

hard work put in by my colleagues Dr. Ombeer S. Tyagi, Sr. Director and his team members Mr. Vipul B. Gajingwar

and Mr. Vicky Pandita.

I wish the Summit all the success and also assure all stakeholders that ASSOCHAM shall continue to organize such

programs for greater public benefit with a greater degree of excellence.

MESSAGE

Best wishes,

D.S. Rawat

Secretary General

Critical challenges like growing population, stagnating crop yields, nutritional security and complex climatic changes stand in the way of holistic sustainable development. These interrelated factors disrupt the growth and development of a country and have detrimental effects on the population. As the world stands at this critical juncture facing challenges which need immediate attention, it is critical to manage our natural resources and utilize them in a more effective and sustainable manner.

In this context, biotechnology offers promising avenues. New, innovative and technology-driven tools of genetics and genetic engineering in particular, help increase crop productivity and lower cost of production, thereby increasing farm income considerably. The future offers huge potential in biotechnology as a revolutionary approach for inducing a quantum increase in productivity of livestock, fisheries, medicinal and aromatic plants and plantation crops, besides conventional agricultural crops. Biotechnological inputs into crops will go a long way towards meeting the nation's incremental food demand in the future, while simultaneously ensuring that the people move up the value chain in terms of the quality of food they consume.

Biotechnology is proving its worth as a technology that can contribute to sustainable agricultural development. Genetically modified crops have proved their effectiveness and efficiency in increasing crop yields, reducing post-harvest losses and making crops more tolerant to stress. Biotech crops have also helped in improving nutritional value of foods and reduced the reliance on chemical pesticides. However, divergent views regarding the commercialization of biotech crops continue to challenge the sector's overall growth prospects.

The need of the hour is visionary thinking amongst industry, Government as well as research and environmental communities towards a sustainable ecosystem that will yield optimal economic, environmental and societal benefits for developed and developing countries. Progressive measures need to be implemented to ensure that farmers are fully aware of the benefits of this technology and how it can serve their cause, thereby eliminating the widespread mistrust that exists over the use of biotech crops. Further the presence of several stakeholders in this field in an unregulated environment poses risks on the safe usage of this complex technology, which requires extensive study and testing before being mainstreamed. In this context, the introduction of the Biotechnology Regulatory Authority of India (BRAI) Bill in the Lok Sabha by the Ministry of Science and Technology is a welcome move. The formalization of this regulatory authority will ensure that all stakeholders adhere to the necessary regulations and ensure that biotechnological processes do not result in any adverse effects.

The ASSOCHAM-YES BANK knowledge report 'Biotechnology in Indian Agriculture' outlines the current scenario of agricultural biotechnology globally and provides a snapshot of risks, challenges and opportunities in the sector. The key objective of this report is to present the facts related to biotechnology and highlight its key advantages while outlining the risks associated with it.

I am confident that the contents of this knowledge report will provide important insights to policy makers, industry leaders and stakeholders in the biotechnology sector, which will take us further along the road towards achieving food security for the nation.

FOREWORD

Thank You.

Sincerely,

Rana Kapoor

President, ASSOCHAM

Founder, Managing Director & CEO, YES BANK

C O N T E N T SIntroduction 3

The Indian Biotech Industry 7

Current Status of Agri Biotech 18

Need for Agri Biotech 33

Socio Economic and Environmental Impact of GM Crops 39

Introduction 8

Biotech Industry Segmentation 10

Region wise Spread of Biotech Industry 15

Global Scenario 20

Dominant Biotech Crops in 2012 24

Conventional vs. Biotech Crops 25

Indian Scenario 25

Bt Brinjal in India 29

Farmer and Consumer Benefits 29

Snapshot of Development and Regulation of Bt Brinjal in India 30

Highlights of Global Biotech crops 31

Status of Biotech Crops in Africa 31

Economic Impact 40

Environmental Impact 43

Economic Impact of Bt Cotton in India 44

Opportunities, Risks and Challenges in Agri Biotech 45

Policy Environment for Biotechnology in India 51

Future of Agri Biotech in India 63

Opportunities 46

Challenges 47

Risks Associated with GM crops 48

thBiotechnology in the 12 Five year plan 54

thNew Institutions Proposed During 12 Plan Period 56

thBudget for Biotechnology in the 12 plan 58

Biotechnology Regulatory Authority of India 59

C O N T E N T S

Exhibit 1: Top 10 Countries in Biotech Crop Production (2012)................05

Exhibit 2: Indian Biotech Industry Revenues (INR crores) .......................08

Exhibit 3: Biotech Industry Growth Rate .................................................09

Exhibit 4: Segment wise Revenues.........................................................10

Exhibit 5: Classification of Indian Biotech Industry ..................................11

Exhibit 6: Bio-agri Growth Rate ...............................................................12

Exhibit 7: Bio-pharma Growth Rate .........................................................13

Exhibit 8: Bio-services Growth Rate........................................................13

Exhibit 9: Bio-informatics Growth Rate....................................................13

Exhibit 10: Bio-industrial Growth Rate.......................................................14

Exhibit 11: Segment wise Growth Rate Comparison ................................15

Exhibit 12: Region wise Revenue (INR crore)............................................16

Exhibit 13: Biotech Clusters in India -2011.................................................17

Exhibit 14: Segment wise Exports Share - 2011-12 ...................................17

Exhibit 15: Global Area under Biotech Crops (Million hectares) ................20

Exhibit 16: Countrywise Area under Biotech Crops ..................................21

Exhibit 17: Increase in Number of Countries Planting Bt Crops................22

Exhibit 18: Increasing Share of Developing Countries for Area of.............23Biotech Crops

Exhibit 19: Area and Share of Biotech Crops (Global)................................24

Exhibit 20: Percentage Share of Major Biotech Crop in ............................25the Global Acreage

E X H I B I T

Biotechnology in Indian Agriculture | i

Exhibit 21: Area under Bt cotton in India and ............................................26

Adoption Rate since 2002

Exhibit 22: Farmers Growing Bt Cotton in India- 2002-2012 (in million) ....27

Exhibit 23: Adoption of Bt Cotton in Major States of India (in '000 ha) .....27

Exhibit 24: Cotton Production (million MT) in Major Cotton ......................28

Producing Nations

Exhibit 25: Trends in Production, Consumption and .................................28

Exhibit 26: Additional Crop Production Arising from..................................35

Positive Yield Effects of GM Crops

Exhibit 27: Global Farm Income Benefits in 2011 .....................................41

Exhibit 28: GM Crop Farm Income Benefits in Select ..............................41

Exhibit 29: GM Crop Farm Income Benefits 2011: Developing vs.............42

Developed Countries in Million USD

Export of Cotton in India

from Growing GM Crops (Million USD)

Countries between 1996-2011 (in million USD)

ii | Biotechnology in Indian Agriculture

Executive Summary

In the present agricultural scenario, even at current levels of technology, significant yield

gaps exist in many places. It is here that biotechnology can play a revolutionary role in

achieving the desired yield levels across crops, livestock, fisheries and forestry.

Biotechnological tools can also address the issue of inadequate nutritional security in

developing countries by enhancing the crop quality.

Realizing the significance of the sector, globally, biotech crops were grown over a record

area of over 170.3 million hectares in 28 countries in 2012. This was around 10.3 million

hectares more than in 2011. There has been an exponential increase of 100 times since the

commercialization of biotech crops in 1996.

In 2012, India grew Bt Cotton over 10.8 million hectares, maintaining its pole position in Bt

cotton area globally. The adoption rate of Bt technology was recorded at 93% which stands

favourably at par with countries like Australia (99.5%), USA (94%) and China (80%). The

area under Bt cotton has been rising consistently since its adoption in 2002. The number of

farmers undertaking cotton farming has also increased appreciably in the country. The

number rose from a mere 0.05 million in 2002 to 7.2 million in 2012.

The biotech industry comprising Bio-Pharmaceuticals, Bio-Services, Bio-Agriculture,

Bio-Industrial and Bio-Informatics is among the country's sunrise sectors and is growing

at an average rate of 20%. The market size of this sector was estimated at around INR

20,440.7 crores in 2011-12. India is amongst the top twelve biotech destinations in the

world and ranks second in Asia, after China. The Indian biotechnology industry has evolved

over the last three decades and the sector's revenues have rapidly increased from INR

2,345 crores in 2002-03 to INR 20,440.7 crores in 2011-12.

However there are many challenges that need to be addressed. The major ones include

lack of technology, low level of skill development, stringent regulatory framework and low

level of understanding of biotechnology. These challenges are obstacles to smooth growth

of the sector and a roadmap needs to be developed to overcome them and drive the

sector to greater heights.

2 | Biotechnology in Indian Agriculture

Executive Summary

Introduction

Biotechnology refers to the application of scientific techniques using living organisms or

their parts to make or modify plants, animals, micro organisms or environment to enhance

their performance and value. Biotechnology consists of a gradient of technologies, ranging

from the long established and widely used techniques of traditional biotechnology to novel

and continuously evolving modern biotech techniques.

In the recent years biotechnology has emerged as a major focal point for the developed as

well as the developing nations of the world. It has given a greater vision to sectors like

human health, agriculture and environmental science for the future.

Agriculture has been a major beneficiary of the emerging modern biotechnology. The

spectrum of biotechnology application in agriculture is very wide and includes production of

improved crops, animals, medicinal plants, microbes; acceleration of the breeding process,

DNA based diagnostics for pests /pathogens of crops, etc. Biotechnology also has a critical

role to play in developing and processing value added products of improved nutritive quality

and ensuring food quality and safety. However, despite recent advances, there still lies

huge potential in agri biotechnology that needs to be explored.

The technology has given emphasis on improving efficiency and lowering the cost of

production and has been able to meet the expectations of the farmers in terms of yield and

farm income and consumers in terms of quality standards. As a result nearly 29 countries

undertook biotech crop production on nearly 170.3 million ha in 2012. The top ten countries

resorting to this technology included USA, Brazil, Argentina, Canada, India, China, Paraguay,

South Africa, Pakistan and Uruguay.


Introduction

For a country like India, biotechnology is a powerful technology that can revolutionize

agriculture, healthcare, industrial processes and environmental sustainability. Realizing the

significance and potential of the sector, the R&D capability has been enhanced appreciably

through policy and infrastructure support provided by the government as well as private

sector. There are ongoing efforts by scientists to develop inherent crop protection, enhance

the nutritional value, augment yields and develop hardy crops which can grow under varied

climatic conditions. However, the transfer of technology to the fields has been at a slow

pace and the application is still in the nascent stage due to which the benefits have not yet

reached majority of the population. In most cases, research outputs have still not reached

the commercialization stage, for varied reasons, and hence their full potential benefits have

not been realized either by farmers or consumers.

Considering its strengths of a strong and experienced pool of scientists and engineers, vast

institutional networks, numerous national research laboratories and cost effective

manufacturing, India shall definitely emerge as a major biotech hub of the world.

Biotechnology in Indian Agriculture | 5

Exhibit 1 : Top 10 countries in biotech crop production (2012)

8. South Africa - 2.9 million ha

5. India-10.8million ha

9. Pakistan - 2.8 million ha

6. China - 4 million ha

4. Canada-11.6million ha

1. USA-69.5million ha

2. Brazil-36.6 million ha

7. Paraguay - 3.4 million ha 3. Argentina

23.9 million ha10. Uruguay - 1.4 million ha

Source: International Service for the Acquisition of Agri Biotech Applications (ISAAA)

The Indian Biotech Industry

Introduction

The biotechnology sector is among the country's sunrise sectors and is

growing at an average rate of 20%. The market size of this sector was

estimated at around INR 20,440.7 crores in 2011-12 by Association of

Biotechnology Led Enterprises (ABLE) and is poised to increase to INR

59,600 crores by 2015. India is amongst the top-12 biotech destinations in

the world and ranks second in Asia, after China. India has the potential to

become a global R &D and manufacturing hub in biotechnology.

The Indian biotechnology industry has evolved over the last three decades

and the sector's revenues have rapidly increased from INR 1,830 crores in

2002-03 to INR 20,440.7 crores in 2011-12. The average growth of the

Biotech sector in India has been around 18-20% over the past few years.

This sector has the ability to play a vital role in the transformation of the

Indian economy by offering solutions to challenges like food security, fuel

security and healthcare. Improved infrastructure, expanding regional

markets, supporting policies and a growing pool of skilled manpower will

help in stepping up the growth in future. However, challenges related to

infrastructure, regulations and skills have to be overcome.

The revenue generated by Indian Biotech Industry over the years is shown

in the succeeding graph. The CAGR over the last decade has been

close to 30%.


The Indian Biotech Industry

Biotech industry witnessed maximum growth rate of 48% during 2003-04 which were the

initial years of commercialization of Bt cotton. The growth rate during 2011-12 was 19% and

over the years the industry has grown at an average rate of 20%.


Exhibit 2 : Indian Biotech Industry Revenues (INR crores)

Source: Biospectrum and Association of Biotechnology Led Enterprises (ABLE) Survey (2012)

Exhibit 3: Indian Biotech Industry Growth Rate


1,830 3,265

4,745

6,521

8,541 10,272

12,137

14,199

17,249

20,441

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Revenue (INR crores)

48%

37% 37%

31%

20%18% 17%

21% 19%

60%

50%

40%

30%

20%

10%

0%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

A total of 350 companies operate in the biotechnology sector in India. Some of the

successful biotechnology companies in India are Biocon, Sanofi India, Concord Biotech,

Pfizer, Serum Institute of India, Panacea Biotech, Nuziveedu Seeds, Reliance Life Sciences,

Shantha Biotechnics, Indian Immunologicals Ltd., TransAsia Biomedics, Monsanto and

Mahyco. Foreign players like Novozymes, Lonza are also establishing their presence in the

Indian biotech space.

The Indian Biotechnology sector is presently divided into five segments based on the

products and services offered. These segments are Bio-Pharmaceuticals, Bio-Services, Bio-

Agriculture, Bio-Industrial and Bio-Informatics. Bio-Pharma is the largest sector contributing

to 62% of the total revenues followed by the Bio-Services, Bio-Agri and Bio-Industrial

sectors which contribute 18%, 15% and 4% respectively. Bio-Informatics is still at a

nascent stage contributing to only 1% of the total revenue. Biopharma sector has attracted

an impressive level of FDI worth USD 3,208 million between April 2011 and January 2012

as reported by Department of Industrial Policy and Promotion (DIPP).

Biotech Industry Segmentation

Exhibit 4: Segment wise Revenues



62%18%

15%

4%

1%

Bio pharma

Bio services

Bio agri

Bio industrial

Bio informatics

Agricultural Biotechnology: Agricultural biotechnology is the area of biotechnology

involving applications to agriculture. The spectrum of biotechnology application in

agriculture is very wide and includes generation of improved crops, animals, plants of agro

forestry importance; microbes; accelerating of breeding through marker; DNA based

diagnostics for pests and pathogens; embryo transfer technology for animal breeding; food

and feed biotechnology etc. Biotechnology has a critical role in developing, processing and

monitoring the quality of value added products.

Agri Biotech constitutes 15% of the total biotech industry with revenues amounting to INR

3,050 crores. Major products of this segment include hybrid seeds, transgenic crops,

biopesticides and biofertilizers. Hybrid seeds and transgenic crops are the major segments

of this sector and contribute the maximum share to the revenues, followed by

Biopesticides and Biofertilizers. The highest growth in the Bio-Agri sector took place in the

year 2004-05 when the industry grew by almost 154%.

Exhibit 5: Classification of Indian Biotech Industry


Bio Pharma Bio AgriBio

Industrial

Vaccines Diagnostic Therapeutic

Contract Research Organiza-

tions

Custom Manufact-

uring

Hybrid Seeds

Bio Pesticides

Bio fertilizers

Industrial enzymes

Database Services

Softwares

Bio ServicesBio

Informatics

Biotechnology

Exhibit 6: Bio-Agri Growth Rate



Agricultural biotechnology will play a crucial role to overcome major challenges like

declining per capita availability of arable land, lower productivity of crops, livestock and

fisheries, heavy production and postharvest crop damage, depletion of water resources for

irrigation thus helping in achieving food and nutrition security. Investment in agricultural

biotechnology has resulted in significantly enhanced R&D capability and institutional

building over the years. However, the gap between research and implementation needs to

be bridged. Uncertainties regarding IPR management and regulatory requirements, lack of

effective management and commercialization strategies have been significant impediments

of the industry.

This constitutes the largest segment of the Indian biotech industry

both in terms of domestic and export revenues. In 2011-12, bio-pharma generated revenues

of INR 12,680 crores comprising approximately 62% of the domestic biotech industry. The

Bio-Pharma sector includes vaccines, therapeutics and diagnostics. The highest growth was

witnessed in the year 2003-04 when the growth crossed the 50% mark. The growth rate

dwindled thereafter reaching a low of 12% in 2009-10. However in 2010-11, the growth saw

positive signs and again increased to over 20%.

Bio-Pharmaceuticals:

154%

81%

55%

30%18%

37%28% 23%

18%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%


Exhibit 7: Bio-Pharma Growth Rate


Bio-Services: Bioservices is the second largest sector of the Indian Biotechnology Industry

with revenues amounting to INR 3,749 crores. The growth rate of this segment could be

attributed to the fact that India has become a popular destination for clinical trial, contract

research and manufacturing activities. The sector witnessed a growth of 16% in 2011-12.

The highest growth of 104% was witnessed in the year 2003-04.

Exhibit 8: Bio-Services Growth Rate

0%

10%

20%

30%

40%

50%

60%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

54%

30% 32%27%

16%14% 12%

21% 19%


104%

55%

69%

53%43%

31% 28%23%

16%

0%

20%

40%

60%

80%

100%

120%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Bio-Informatics (BioIT): This sector deals with the creation and maintenance of extensive

electronic databases on various biological systems and constitutes only 1.3% of the biotech

industry generating revenue of INR 266 crores. The growth in this sector is yet to see a

surge. In 2011-12 the sector grew at 10% while the highest growth of 31% was recorded in

2007-08.

Exhibit 9: : Bio-Informatics Growth Rate


Bio-Industrial: This industry generates 3.4% of the revenues of the biotechnology industry

and predominantly consists of enzyme manufacturing and marketing companies. These

enzymes are used in industries such as detergents, textiles, food, leather, paper and

pharmaceuticals. The sector grew by 11% in 2011-12, while the highest growth was

recorded in 2004-05 of 34%.

Exhibit 10: : Bio-Industrial Growth Rate



7%

25%

20% 21%

31%

16%

5% 5%

10%

0%

5%

10%

15%

20%

25%

30%

35%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

1%

34%

17%

5% 4%

17% 18%

11% 11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Comparing the growth of all segments, the highest growth was recorded by the Bio agri

sector in the year 2011-12 due to an increased demand of hybrid seeds, bio fertilizers and

bio pesticides, followed by Bio-Pharma and Bio-Services. Bio-Pharma segment has the

second highest growth rate due to the increase in demand of vaccine and therapeutics. In

2009-10 and 2010-11 the highest growth was witnessed by the Bio-Agri segment. However,

in the year 2008-09 the Bio-Services sector stood out witnessing a growth of 31%. This

was followed by the Bio-Agri sector which grew by 18%.

Exhibit 11: Segment wise Growth Rate Comparison

Region-wise Spread of Biotech Industry

The biotech companies are located in three major clusters across the country. Western

cluster including Ahmedabad, Aurangabad, Mumbai and Pune is the largest in terms of

revenue generated, followed by the Southern cluster including Bangalore, Chennai and

Hyderabad and the Northern cluster including Delhi, Gurgaon and Noida.

South India, with biotech hubs such as Bangalore in Karnataka and Hyderabad in Andhra

Pradesh, represents the biggest hub for biotech companies. The number of biotech

companies in this region was 172 in 2010. Apart from Karnataka, states such as Andhra

Pradesh, Maharashtra, Tamil Nadu and Kerala have been proactive in supporting the biotech

sector by establishing world-class biotech parks and clusters.


31%28%

23%

16%14%

12%

21% 19%18%

37%

28%

23%

17% 18%

11%11%16%

5% 5%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2008-09 2009-10 2010-11 2011-12

Bio-Services Bio-Pharma Bio-Agri Bio-Industrial Bio-Informatics


Exhibit 12: Region wise Revenue (INR crores)



Both Western and Southern regions generated revenues amounting to INR 8,319 crores

each followed by Northern region with a revenue of INR 1,740 crores in 2011-12.

Karnataka has biotech SEZ's in 9 districts, a biotechnology park spread over 86 acres and a

knowledge park spread over 52 acres in Bengaluru. The biotech cluster in Bangalore makes

the city the leading biotech destination in the country. 60% of biotech companies in India

have a base in Bengaluru contributing to 50% of total revenues of the biotechnology sector.

The city has 12 biotechnology finishing schools and more than 100 R&D centers. The state

has also devised an industrial policy supporting development of the industry. For creation of

biotech parks under PPP model a financial support of 20% of the project cost is also

provided. The above mentioned policy support, skilled manpower and infrastructure makes

Karnataka the biotech capital of India. Hyderabad is another preferred destination having

knowledge park, biotech park, genome valley and many other upcoming projects to boost

growth of biotechnology sector.

4,100 4,452

5,261

6,631

7,521

8,319

3,416

4,369 5,084

5,538

7,628

8,319

1,025 1,453 1,792 2,030 2,101

1,740

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

West South North


Exhibit 13: Biotech Clusters in India -2011

Source: - Indian Brand Equity Foundation (IBEF)

Exports

The biotech exports grew to INR 9,842 crores during 2011-12 and accounted for 48% of

total revenue of the biotech sector. Bio-Pharma exports alone accounted for over 63% of

the total exports amounting to INR 6,213 crores. Bio-Services sector contributed 33% to

total exports having a value of INR 3,224 crores followed by Bio-Industrial sector which

contributed 1.7%, Bio-Agri contributing 1.6% & Bio-Informatics contributing 0.9%.

Exhibit 14: Segment wise Exports Share - 2011-12


Bangalore

Hyderabad

Pune

Mumbai

NCR

Ahmedabad

Others

19%

17%

10%26%

8%

7%13%

Bio pharma

Bio services

Bio industrial

Bio agri

Bio informatics

1.60% 0.90%1.70%

63.04%

32.77%

Current Status of Agri Biotech

Global Scenario

Biotechnology has become the fastest adopted technology in the agriculture sector

worldwide in the recent past due to the ability of Biotech crops to deliver desired and

consistent results.

Globally, biotech crops were grown over a record area of 170.3 million hectares in 28

countries in 2012. This was around 10.3 million ha more than 2011, recording a 6% growth.

Over the last decade there has been an increase of over three times in cultivated area

under biotech crops from 44.2 million ha in 2000 to over 170 million ha in 2012 and a

startling increase of 100 times since the commercialization of biotech crops in 1996.


Current Status of Agri Biotech

Exhibit 15: Global Area under Biotech Crops (Million hectares)

Source: International Service for the Acquisition of Agri-biotech Applications (ISAAA)

44.2 52.658.7

67.781

90102

114125

134148

160170.3

0

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

In 2012, the highest area under biotech crops was recorded in USA covering 69.5 million

ha. However, the increase in area in USA from 2011 was not very significant and stood at

around 0.5 million ha. To second the position, Brazil cropped around 36.6 million ha under

biotech crops. India ranked 5th with an area of 10.8 million ha under biotech crops.


Exhibit 16: Countrywise Area under Biotech Crops

Rank Country Area (million Ha) Major Biotech crops

2011 2012

1 USA 69 69.5 Maize, Soybean, Cotton, Canola, Sugarbeet, Alfa alfa, Papaya, Squash

2 Brazil 30.3 36.6 Soybean, Maize, Cotton

3 Argentina 23.7 23.9 Soybean, Maize, Cotton

4 Canada 10.4 11.6 Soybean, Maize, Canola, Sugarbeet

5 India 10.6 10.8 Cotton

6 China 3.9 4.0 Cotton, papaya, Poplar, Tomato, Sweet Pepper

7 Paraguay 2.8 3.4 Soybean

8 South Africa 2.3 2.9 Soybean, Maize, Cotton

9 Pakistan 2.6 2.8 Cotton

10 Uruguay 1.3 1.4 Soybean, Maize

11 Bolivia 0.9 1.0 Soybean

12 Philippines 0.6 0.8 Maize

13 Australia 0.7 0.7 Cotton, Canola

14 Burkina Faso 0.3 0.3 Cotton

15 Myanmar 0.3 0.3 Cotton

16 Mexico 0.2 0.2 Cotton, Soybean

17 Spain 0.1 0.1 Maize

18 Chile less than 0.1 less than 0.1 Soybean, Maize, Canola

19 Colombia less than 0.1 less than 0.1 Cotton

20 Honduras less than 0.1 less than 0.1 Maize

21 Sudan less than 0.1 less than 0.1 Cotton

22 Portugal less than 0.1 less than 0.1 Maize


In 2012, the highest growth in terms of area under cultivation was recorded by Brazil with

an absolute increase of 6.3 million hectares in 2011-12. Second highest growth was

recorded by Canada with an increase of 1.2 million ha.

The number of countries opting for biotech crops has also increased significantly since

1996, when only 6 countries undertook biotech crop cultivation. This number doubled in

1999 and reached 21 in 2005. In 2010 and 2011 the number reached a maximum of 29

countries which amplified the growth to over 350% since 1996. However, in 2012 the

number declined to 28 because Germany and Sweden could not plant the biotech potato

"Amflora" as it ceased to be marketed and Poland discontinued planting Bt Maize because

of regulatory issues. However, at the same time two new countries- Sudan and Chile

started the cultivation of biotech crops for the first time, planting Bt Cotton and Bt Maize

respectively.

Exhibit 17: Increase in Number of Countries Planting Bt Crops

23 Czech Republic less than 0.1 less than 0.1 Maize

24 Cuba less than 0.1 less than 0.1 Maize

25 Egypt less than 0.1 less than 0.1 Maize

26 Costa Rica less than 0.1 less than 0.1 Cotton, Soybean

27 Romania less than 0.1 less than 0.1 Maize

28 Slovakia less than 0.1 less than 0.1 Maize



No. of countries

6

12

17

21

25

29 29 28

1996 1999 2004 2005 2009 2010 2011 2012

Rank Country Area (million Ha) Major Biotech crops

2011 2012


Of the 28 countries which planted biotech crops in 2012, 20 were developing and 8 were

industrial economies. The corresponding numbers stood at 19 and 10 in 2011. The major

biotech crops grown by these countries comprised Maize, Soybean, Cotton, Canola,

Sugarbeet, Alfa alfa, Papaya, Squash, Tomato and Sweet pepper.

In 2012, developing nations surpassed the industrial countries in terms of biotech crop area.

The developing nations comprising 20 countries grew biotech crops over an area of around

88.5 million ha, which accounted for 52% of the total area under biotech crops. In 1997, the

developing countries accounted for a meagre 14% of the total area under biotech crops

which eventually increased to 24% in 2000 and to 50% in 2011.

The increase in hectarage during 2011-12 was more in the developing nations than industrial

ones. The total hectarage grew by 11% in developing countries while it grew by only 3% in

industrial ones. The strong growth in the developing countries is expected to persist in the

future.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

14 16 18 24 26 27 30 34 38 40 43 44 46 48 50 52

86 84 82 76 74 73 70 66 62 60 57 56 54 52 50 48

Industrial Developing

1997

1998

1999

2000 1

200

2020

2003

2040

2050

2060

2070

2080

2009

2001

2011

2012


Exhibit 18: Increasing Share of Developing Countries for

Area of Biotech Crops


Dominant Biotech Crops in 2012

In 2012 the most preferred biotech crop was herbicide tolerant soybean. This crop covered

an area of around 80.7 million ha and accounted for 47% of the total biotech crops' area.

The crop was grown commercially in 11 countries- USA, Brazil, Argentina, Paraguay,

Canada, Uruguay, Bolivia, South Africa, Mexico, Chile and Costa Rica. The crop area

recorded a growth of 5% over last year.

The second most popular biotech crop was maize with stacked traits. The crop occupied an

area of almost 40 million ha accounting for 23% of the total biotech crop area in 2012. The

crop was cultivated in 10 countries - USA, Brazil, Argentina, Paraguay, Canada, Uruguay,

South Africa, Philippines, Honduras and Chile.

The third most dominant crop was Bt cotton which occupied 18.8 million ha, covering 11%

of the total global biotech area. The area witnessed a growth of 5%over last year (2011).

The crop was planted in 13 countries namely India, China, Pakistan, Myanmar, Burkina

Faso, Brazil, USA, Argentina, Australia, Columbia, Sudan, Paraguay and Costa Rica.

Crop Area (million ha) Percentage of Biotech crops

Herbicide Tolerant Soybean 80.7 47%

Stacked traits Maize 39.9 23%

Bt Cotton 18.8 11%

Herbicide Tolerant Canola 9.2 5%

Herbicide Tolerant Maize 7.8 5%

Bt Maize 7.5 4%

Stacked traits Cotton 3.7 2%

Herbicide Tolerant Cotton 1.8 1%

Herbicide Tolerant Sugarbeet 0.5 Less than 1%

Herbicide Tolerant alfalfa 0.4 Less than 1%

Others Less than 0.1 Less than 1%

TOTAL 170.3 100%

Exhibit 19: Area and Share of Biotech Crops (Global)



Conventional vs. Biotech Crops

It is quite interesting to note that of the total soybean and cotton sown globally, only 19%

is conventional and the remaining 81% is the biotech crop. Although, other two popular

crops- maize and canola do not have such significant area under biotech crop, but it is

expected to increase in the near future. As of now 35% of maize and 30% of canola is

under the regime of biotech.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Soybean Cotton Maize Canola

19 19

65 70

81 81

3530

Biotech

Conventional


Exhibit 20: Percentage Share of Major Biotech Crop in the Global Acreage

Indian Scenario

India, today, holds a small share of the global biotech hecterage, but has all the capabilities

to become a dominant player. The production of biotech crops in India is expected to show

a considerable increase in the coming years.

Bt Cotton is the only biotech crop commercialized in India as of now and has come a long

way covering a journey of more than a decade. The year 2013 will be the twelfth successful

year of its commercialization in the country.

In 2012, India grew Bt Cotton under 10.8 million ha area, maintaining its numero uno

position in the Bt cotton hectarage globally. The total area under cotton cultivation in the

country was 11.6 million ha in 2012, which directed the adoption rate of the Bt technology


to 93% which is the highest ever adoption rate and stands favorably at par with countries

like Australia (99.5%), USA (94%) and China (80%). The area under Bt cotton has been

rising consistently since its adoption in 2002. However the area increased marginally by 0.2

million ha since 2011.

Exhibit 21: Area under Bt cotton in India and Adoption Rate since 2002


The Bt cotton has been able to successfully control the infestation of a pest known as

Helicoverpa armigera which was a huge concern in the past due to its vast devastating

effect on the crop.

Considering its consistent results and multiple benefits, over 2,00,000 additional farmers

resorted to growing Bt cotton in their fields in 2012.

The number of farmers undertaking cotton farming has also increased appreciably in the

country. The number rose from a scanty .05 million in 2002 to 7.2 million in 2012. Initially

when Bt cotton was launched in India only 54,000 farmers took up the challenge to grow it

on a minimal area of 50,000 ha. The number doubled the next year with nearly .1 million

farmers resorting to cultivation of Bt cotton on their fields.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ad

op

tio

n R

ate

Are

a in

Millio

n h

a

Total area under cotton Area under Bt cotton Percentage of Adoption


Exhibit 22: Farmers Growing Bt Cotton in India- 2002-2012 (in million)


Within the country around 66% of the Bt cotton is grown in the central zone which

includes the states of Maharashtra, Gujarat, M.P and Odisha. The Southern Zone consisting

of states of AP, Karnataka and Tamil Nadu contributes to around 22% of the total cotton

area and the Northern Zone (Punjab, Haryana and Rajasthan) contribute to around 12%.

In 2012, Maharashtra accounted for 37% of the total area under Bt cotton, followed by

Gujarat (19%) and Andhra Pradesh (18%).

0.05 0.1 0.3

1

2.3

3.8

55.6

6.2

7 7.2

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

State 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CAGR

Maharashtra 25 30 200 607 1840 2800 3130 3396 3710 3960 3995 66%

AP 8 10 75 280 830 1090 1320 1049 1650 1820 1935 73%

Gujarat 10 36 122 150 470 908 1360 1682 1780 1930 2015 70%

MP 2 13 80 146 310 500 620 621 610 640 605 77%

Northern Region 60 215 682 840 1243 1162 1340 1390 37%

Karnataka 3 4 18 30 85 145 240 273 370 570 520 67%

Tamil Nadu 2 7 5 27 45 70 90 109 110 220 220 60%

Others 5 5 5 8 8 120 120 37%

TOTAL 50 100 500 1300 3800 6200 7605 8381 9400 10600 10800 71%

Exhibit 23: Adoption of Bt Cotton in Major States of India (in '000 ha)



The global production of cotton (Bt as well as conventional) stood at around 26.3 million MT

in 2012-13, to which India contributed around 22%, while China contributed around 29%.

The other major producer countries include USA, Pakistan and Brazil.

Exhibit 24: Cotton Production (million MT) in

Major Cotton Producing Nations

Source: U.S. Department of Agriculture, YES BANK Analysis

From the trade perspective India is an exporter of cotton. The total cotton production of

India has reached around 5.8 million tonnes in 2012-13, while the consumption remained at

4.9 million tonnes. India stands amongst the top three exporters of cotton. In 2012-13, India

exported around 1.5 million tonnes of cotton which was around 37% lower than the

quantity exported in 2011-12. However, since 2008-09 the cotton export from India has

increased by over 200%

Exhibit 25: Trends in Production, Consumption and Export of Cotton in India

Source: U.S. Department of Agriculture, YES BANK Analysis

8.0 7.0 6.6 7.4 7.6

4.9 5.2 5.7 6.0 5.8

2.8 2.73.9 3.4 3.8

1.9 2.01.9 2.3 2.01.2 1.22.0 1.9 1.3

2008-09 2009-10 2010-11 2011-12 2012-13

Brazil

Pakistan

USA

India

China

4.95.2

5.7 6.0 5.8

3.94.3 4.5 4.3

4.9

0.5

1.41.1

2.4

1.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2008-09 2009-10 2010 -11 2011 -12 2012 -13

Production Consumption Exports

in m

illio

n t

on

nes


Bt Brinjal in India

Farmer and Consumer Benefits

Brinjal is the fourth most important vegetable grown after potato, onion and tomato in

India. It is an excellent source of minerals and vitamins and is rich in water soluble sugars

and proteins among other nutrients.

Brinjal is a favored crop amongst the small and marginal farmers and is an important source

of income for them. However, brinjal production faces a number of problems which cause

enormous yield losses. Fruit and shoot borer (FSB) is the most devastating insect-pest of

brinjal, which causes 60-70% yield loss, besides deteriorating product quality. Farmers rely

mainly on the application of chemical pesticides to control the pest leading to several side

effects to the crop as well as farmers.The other control methods like integrated pest

management, and mechanical control are not much popular among farmers due to lack of

collective action, high labour requirements and complexities involved in their application.

Several attempts were made to develop resistant varieties of brinjal through plant breeding,

but all of them have met limited success. However, transgenic/genetically modified

technology has emerged as an alternative to solve all these problems. The Bt brinjal is the

first Genetically Modified food crop in India. It was developed by using a technique similar

to the one used in Bt cotton. It was created by inserting a crystal protein gene (Cry1Ac)

from the soil bacterium Bacillus thuringiensis into the genome of brinjal cultivars. This is

said to give the Brinjal plant resistance against the Brinjal Fruit and Shoot Borer Leucinodes

orbonalis and Fruit Borer Helicoverpa armigera.

Bt brinjal hybrid is expected to provide benefits to the producers as well as consumers. The

producers would benefit from higher yield due to reduction in damage from FSB infestation

and reduction in cost due to savings in insecticides used to control FSB.

Bt brinjal was found to be very effective against FSB, with 98% insect mortality in brinjal

shoot and 100% in the fruit. The multiple research trials conducted by ICAR and its

institutes have shown results of 77% lesser usage of insecticides for control of FSB in Bt

crop as compared to the non Bt counterparts. Scientists have estimated that Bt brinjal will

deliver farmers a net economic benefit of INR 16,299 - 19,744 per acre with national

benefits exceeding USD 400 million per year.

Consumers are anticipated to benefit from increase in output supply, reduction in price and

quality produce, free from FSB-infestation and chemicals used for its control.


Snapshot of Development and Regulation of Bt Brinjal in India

• Inception of the transformation work on Bt Brinjal2000

• Preliminary greenhouse evaluation to study growth, development and efficacy of Bt brinjal2001-02

• Confined field trials to study pollen flow, germination, aggressiveness and weediness, biochemical, toxicity and allergenicity studies of Bt brinjal

2002-04

• RCGM approves conducting multi-location research trials of seven Bt brinjal hybrids.

2004

• Mahyco shares the technology with TNAU, DAU and IIVR to develop open pollinated varities of Bt Brinjal.

2005

• Biosafety data on the effects of Bt brinjal on soil micro-flora, efficacy against fruit-shoot borer, pollen flow, germination, toxicity and allergenicity etc submitted to the Review Committee on Genetic Modification (RCGM). RCGM recommends large scale trials to the GEAC.

2004-05

• Mahyco submits bio-safety data to Genetic Engineering Approval Committee (GEAC) and seeks permission for large scale trials.

• GEAC constitutes a sub committee to look into the concerns raised by civil society.

• Supreme Court stops ongoing field trials of GM crops due to a PIL filed by civil society representatives.

2006

• The subcommittee recommends 7 more studies on biosafety for reconfirmation of data but gives a green signal for large scale trials.

• Supreme Court lifts ban on GM crop field trials subject to conditions such as isolation distance etc.

• GEAC approves large scale trial.

• Indian Institute of Vegetable Research takes up the responsibility of large scale trails

2007

• Trials at 10 research institutions across the country in 2007 and 11 in 20082007-08

• IIVR submits the results of the large scale trails.

• GEAC constitutes a 2ndsub-committee to look into adequacy of biosafety data generated as well as the concerns raised by all stake holders.

• The Subcommittee submits its report based on which GEAC approves the environmental release of Bt Brinjal.

• Responding to strong views expressed both for and against the release of the Bt Brinjal, the MoEF announces a nationwide consultation in January and February of 2010 pending a final decision on this issue.

2009

Source: International Service for the Acquisition of Agri-biotech Applications (ISAAA) and National Bank of Agriculture and Rural Development (NABARD)


th2012 was the 17year of

commercializationof biotech

crops

• Biotech crops were first commercialized in 1996

• Area under biotech crops increased by an unprecedented 100–fold from 1.7 million hectares in 1996, to over 170 million hectares in 2012

• In 2012, hectarage of biotech crops grew at an annual growth rate of 6%.

• Substantial increase in number of farmers adopting Bt crops reflects the confidence and trust of millions of risk-averse farmers around the world, in both developing and industrial countries.

For the first timein 2012, developingcountries outpacedindustrial countries.

in GM crops'acreage

•

• Of these 20 were developing and 8 were industrial countries

• Developing countries grew 52%, of global biotech crops in 2012 while industrial countries grew 48%.

• Two new countries, Sudan (Bt cotton) and Cuba (Bt maize) planted biotech crops for the first time in 2012.

A total of 28 countries planted Biotech crops in 2012

• In 2012, a record 17.3 million farmers, up 0.6 million from 2011, grew biotech crops

• Over 90%, or over 15 million, of these were small resource-poor farmers in developing countries.

• 7.2 million farmers in India, preferred to plant almost 15 million hectares of Bt cotton in 2012

A record17.3 million

farmers opted forbiotech crops

• USA- 69.5 million hectares

• Brazil-36.6 million hectares

• Argentina -23.9 million hectares.

• Canada -11.8 million hectares

• India- 10.8 million hectares

Top 5 countriesplanting biotech

crops

Highlights of Global Biotech crops

Status of Biotech crops in Africa

•

•

•

•

South Africa witnessed an increase in its biotech crops 'area by a record 0.6 million

hectares, taking it to 2.9 million hectares

With Sudan, Burkina Faso and Egypt, the total number of African biotech countries

commercializing biotech crops has reached to four.

Five countries, Cameroon, Kenya, Malawi, Nigeria and Uganda conducted field trials

of biotech crops, the penultimate step for approval for commercialization.

The lack of appropriate, science-based and cost/time-effective regulatory systems

continue to be the major constraint to adoption.

Need for Agri Biotech

Need for Agricultural Biotechnology

(1) Crop productivity:

One of the key challenges India is facing today is of food security through sustainable

growth. The country is striving to meet the current food needs without undermining the

ability of future generations to meet theirs. Contradictory viewpoints have been coming up

regarding the role of biotechnology for sustainable agricultural growth. While one approach

states that biotechnological developments are the source of many environmental

problems, the other views biotechnology as a support system for sustainable agriculture.

Biotechnology cannot be a panacea for all the problems associated with agricultural

production but it definitely has a potential to address specific set of problems which may

include:

Poor soil, unfavorable climatic conditions, substandard seed

varieties, depleting water table and prevalence of crop pests and diseases continue to

challenge productivity in India. Productivity has witnessed a constant decline on account of

depletion of soil nutrients and poor availability of water in many parts of the country.

Biotechnology can help in addressing these issues through development of drought

tolerant varieties, pest and disease resistant varieties and hardy varieties which can grow

under adverse and varied environmental conditions like scarce rainfall, extreme

temperature fluctuations etc.).

Use of biotechnology has proved to be highly profitable opportunity for stakeholders

globally. In a span of 16 years (1996-2011), profit worth USD 98 billion was generated at

farm level by cultivating biotech crops. 51% of the total gain was achieved due to reduced

production costs like lesser ploughing, fewer pesticide sprays and less labor requirement

while 49% due to improved yields.


Need for Agri Biotech


(2) Diversifying crops:

(3) Nutritional value of food:

(4) Environmental impacts of agricultural production:

Diversifying from monoculture of conventional staples to a varied

crop base including coarse cereals, fruits and vegetables etc can have a massive impact in

achieving food security. Presently, most of the research in the field of Indian agriculture is

focused on a constricted range of crops because of the intense investment requirements

and time-consuming process needed to develop new varieties of crops. Modern

biotechnology has the ability to overcome this challenge and can be helpful in developing

new varieties in a shorter duration, including those of underutilized crops.

Achieving food security is not only about the quantitative

fulfillment of food requirements but also enhancing the nutritional value of food.

Biotechnology provides an easier option for improving nutritional value of food along with

maintaining traditional dietary habits. For example, biotechnology is being used to enhance

the Vitamin A content of rice.

Biotech crops can help save a lot

of land as they have the ability to produce more on the current arable land. This can

subsequently prevent deforestation for bringing more land under agriculture and protect

biodiversity. Annually, around 13 million hectares of forests across the globe are lost to give

space to agriculture and urbanization.

According to the PG Economics Study on Global Socio-economic and Environmental

Impacts, if the 276 million tonnes of additional food, feed and fiber produced by biotech

crops during the period 1996 to 2010 had been produced by non biotech crops, an

additional 91 million hectares would have been required to produce the same tonnage. This

would have led to additional ploughing of land and clearing of biodiversity rich forests, to

meet the demand for agricultural land.

In 2011, 78% of the total gain was as a result of increased yields and the remaining 22%

due to lower cost of production.

Source: PG Economics

Exhibit 26: Additional Crop Production Arising from

Positive Yield Effects of GM Crops

Additional Production Additional Production (Million MT) 1996-2011 (Million MT) 2011

Soybean 110.2 12.74

Maize 195.0 34.54

Cotton 15.85 2.48

Canola 6.55 0.44

Sugarbeet 0.45 0.13


Furthermore, the adoption of biotechnology has reduced the consumption of pesticide by

around 8.9% which subsequently decreased the ill effects on the environment associated

with herbicide and insecticide use. Use of Biotechnology has also been effective in curbing

the release of greenhouse gas emissions from the cropping area upto a large extent,

which, in 2011, was equivalent to removing 10.22 million cars from the roads.

Efforts to diversify agricultural production will not only

promote food security in the country, but will also add new crops to its export list.

Biotechnology can help in enhancing the competitiveness of agricultural products from

India and thus strengthening its position in the global economy.

Biotech crops have the potential for increasing productivity and

eventually the income level of farmers. Thus, biotechnology can prove to be a key

contributor of rural economic growth that can help in poverty alleviation of the small and

resource-poor farmers in India.

Biotech cotton has already made a significant contribution to the income of 15 million small

resource-poor farmers in 2011, in developing countries such as China, India, Pakistan,

Myanmar, Bolivia, Burkina Faso and South Africa.

Agriculture utilizes 70% of fresh water globally. Observing the

current status of water availability and usage, it is evident that its availability is not

sustainable for the future and this poses a challenge that needs to be addressed promptly.

Need of the hour is to commercialize biotech crops possessing characteristics such as

drought tolerance, pest resistance etc. Drought tolerance is expected to have a major

impact on more sustainable cropping systems worldwide, particularly in developing

countries, where drought is more prevalent and severe than developed countries.

Droughts, floods, and temperature fluctuations are expected to

become more rampant and more severe as new challenges associated with climate change

are impending. Climate change may be in the form of:

Increase in average temperature adversely affects

crops in subtropical and tropical regions where excessive heat limits productivity.

Increased temperature also affects productivity due to an increase in soil evaporation

rates and an increased probability of more frequent and more severe droughts.

This affects soil erosion rates and soil

moisture, both of which are important for crop yields.

CO facilitates the growth of some 2

crops but has a negative impact on other aspects of climate change (e.g., higher

temperatures and precipitation changes) which offset any beneficial effect of higher

CO levels.2

(5) Market competitiveness:

(6) Poverty alleviation:

(7) Water conservation:

(8) Climate change:

Increases in average temperature:

Change in amount of rainfall and patterns:

Rising atmospheric concentrations of CO :2

These challenges will bring in a need for faster crop improvement to develop varieties and

hybrids that are well adapted to rapid climatic changes. Biotechnology can be used to

speeden the breeding process and develop new varieties to overcome abiotic stresses like

drought and salinity and biotic stresses like weeds, pests and diseases, thus helping in

overcoming these issues.

IncreasingProductivity

PovertyAlleviation

MarketCompetetiveness

Reducingenvironmental

impactsof agriculture

EnhanchingNutritional

Value

CropDiversification

Need for Agricultural

Biotechnology

MitigatingClimateChange

WaterConservation


Socio Economic andEnvironmental Impact of GM Crops

Biotechnology is an enabling technology that can revolutionize agriculture, healthcare,

industrial processing and environmental sustainability for a developing nation like India.

However there are certain socio economic and environmental impacts that need to be

analyzed prior to commercializing any new technology.

There have been considerable and vigorous debates in relation to the agronomic and

economic performance of GM crops with various reports claiming both success and

failures. Numerous research studies employing different methodologies have been

conducted since the launch of GM crops to study the socio-economic and environmental

impact of using GM crops. Farm income is a major driver of adoption of GM crops among

farmers and hence one of the primary parameters to study the socio economic impact of

GM crops. The environmental impact analysis focuses on changes in the consumption

pattern of Plant Protection Chemicals (PPC) associated with adoption of GM crops.

Use of GM technology has had a very positive impact on farm income levels derived from a

combination of enhanced productivity and operational efficiency gains. In 2011, the direct

global farm income benefit from GM crops was estimated at USD 19.8 billion. The largest

gains in farm income in 2011 have been estimated in the maize sector, largely due to

increase in yield. Farm income levels in the GM Cotton adopting countries have also

increased by USD 6.73 billion through a combination of higher yields and lower costs of

production.

Economic Impact

Socio Economic andEnvironmental Impact of GM Crops


Exhibit 28: GM Crop Farm Income Benefits in select countries between 1996-2011 (in million USD)

Exhibit 27: Global Farm Income Benefits in 2011 from Growing GM Crops (Million USD)

Between 1996 and 2011, the maximum farm benefit has been witnessed by USA with a

total benefit of USD 43,379.4 million since 1996, followed by Argentina and China with

benefits amounting to USD 13,967.1 million and USD 13,067.8 million respectively. India

witnessed farm benefits worth USD 12,579.5 million.

The highest contributor to the farm income benefit in US was GM IR Maize which

accounted for USD 21,497.3 million followed by GM HT Soybean. The other countries which

benefited significantly from GM HT Soybean were Argentina & Brazil. Farm income in

developing countries like China & India has increased due to cultivation of GM IR Cotton.

GM crop farm income benefits for selected countries are shown below.

Country GM HT GM HT GM HT GM HT GM IR GM IR Total

Soybeans Maize Cotton Canola Maize Cotton

US 13,835.9 3,110.5 924.8 241.5 21,497.3 3,769.4 43,379.4

Argentina 12,624.6 510.5 89 – 380.7 362.3 13,967.1

Brazil 4,314.5 431.5 82.6 – 1,796.90 19.9 6,645.4

Paraguay 732.4 – – – – – 732.4

Canada 231.6 66.7 – 2,862.5 820.5 – 3,981.3


3,879.2

1,540.2

166.9 433.2

7,104.9

6,559.6

83.3

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

GM HT

Soybeans

GM HT

Maize

GM HT

Cotton

GM HT

Canola

GM IR

Maize

GM IR

Cotton

Others


GM HT soybeans 1,794.20 2,085.00

GM IR maize 5,710.40 1,394.50

GM HT maize 897.1 643.1

GM IR cotton 650.7 5,908.90

GM HT cotton 80.7 86.2

Developed Developing

Exhibit 29: GM Crop Farm Income Benefits 2011: Developing vs. Developed Countries

(in million USD)

In 2011, 51.2% of the farm income benefits have been earned by farmers from developing

countries. The vast majority of these income gains for developing country farmers have

been from GM IR cotton and GM HT soybeans. The cumulative farm income gain derived

by farmers of developing country was 50.5% (USD 49.63 billion), over the sixteen year

period (1996-2011).

Country GM HT GM HT GM HT GM HT GM IR GM IR Total

Soybeans Maize Cotton Canola Maize Cotton

South 7 3.8 3 – 887.3 31.6 932.7

Africa

China – – – – – 13,067.8 13,067.8

India – – – – – 12,579.5 12,579.5

Australia – – 58.4 27.5 – 525.4 611.3

Mexico 4.9 – 51.4 – – 123.9 180.2

Philippines – 88.2 – – 176.2 – 264.4

Romania 44.6 – – – – – 44.6

Uruguay 83.4 – – – 11.7 – 95.1

Spain – – – – 139.1 – 139.1

Other EU – – – – 16.2 – 16.2

Colombia – 0.9 14.9 – 29.2 13.7 58.7

Bolivia 327 – – – – – 327

Burma – – – – – 338.7 338.7

Pakistan – – – – – 334.2 334.2



Developed Developing

GM HT canola 433.2 0

GM virus resistant papaya and squash 83.3 0and GM HT sugar beet

Total 9,649.60 10,117.70

Environmental Impact

GM crops have contributed to a significant reduction in the environmental impact

associated with insecticide and herbicide usage. GM crops have resulted in reduced

pesticide sprays in the fields which have not only reduced active ingredient emission in the

environment but have also led to fuel savings associated with making fewer sprays. Since

1996, the use of pesticides on the GM crop area was reduced by 473.7 million kg of active

ingredient (8.9% reduction), and the environmental impact associated with herbicide and

insecticide use on these crops, as measured by the Environmental Impact Quotient (EIQ)

indicator, fell by 18.3%.

The use of no-till or reduced till farming systems have increased significantly with the

adoption of GM HT crops because the GM HT technology has improved growers ability to

control competing weeds, reducing the need to rely on soil cultivation and seed-bed

preparation as means to getting good levels of weed control. As a result, tractor fuel use

for tillage is reduced, and soil quality is enhanced. In turn more carbon remains in the soil

and this leads to lower GHG emissions.

Over the period 1996 to 2011, the cumulative permanent reduction in fuel use is estimated

at 14,610 million kg of carbon dioxide (arising from reduced fuel use of 5,472 million litres).

In 2011, alone this amounted to about 1,886 million kg (arising from reduced fuel use of

706 million litres).



Economic Impact of Bt Cotton in India

India accounts for approximately 22% of the global cotton production amounting to 5.8

million MT in 2012-13. Bt cotton technology has emerged as a substitute for the traditional

cotton varieties, reducing bollworm attack and thereby improving farm income. Despite the

beneficial role of Bt cotton in improving yield and reducing insecticide use, its application

and use remains a debatable topic.

As per PG Economics study estimates, the farm income in India increased by USD 12.6

billion by cultivation of Bt cotton during 2011-12. The increase in 2011 was estimated at USD

3.2 billion. There is 88% rise in profitability due to yield gains and reduction in the no. of

insecticide sprays. Bt cotton is resistant to bollworms' attack, therefore the environmental

impact can be estimated considering the use of insecticide. It was estimated that Bt cotton

has a lower EIQ value than non-Bt cotton and the difference is found to be significant. Bt

cotton has a field EIQ of 20.48, which is 28% lower than conventional cotton varieties at

28.79, indicating lesser harm by Bt cotton on the environment.

Thus the introduction of Bt cotton has significantly increased the crop yield and reduced the

dependency on agro-chemicals for crop protection, thereby dramatically changing the

cotton production scenario in India.

Opportunities, Risks and Challenges in Agri Biotech

Opportunities

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India has seen a breakthrough impact of biotechnology through Bt cotton in terms of

increased yield, lower cost of production and reduced damages to the crop. The potential

of the crop has been realized by farmers both large and small through improved farm

income. India now has adequate infrastructure and resources to explore superior genetic

potential in other crops also.

India has the potential to become a major producer of transgenic rice and

genetically modified (GM) vegetables.

With the growing demand for organic food in India, the demand for Biofertlizers

and Biopesticides is expected to rise in the near future.

Research & Development in biotechnology has got huge potential. With the

increasing awareness about the economic as well the environmental impacts of

GM crops, research in this field has unlimited scope for working towards achieving

an overall objective of food security.

Other than agriculture also, there is immense opportunity in the agri allied sectors

which include-

Medicinal and Aromatic plants

Animal biotechnology

Aquaculture and Marine biotechnology

Opportunities, Risks andChallenges in Agri Biotech



Seri biotechnology

Environmental biotechnology

A major constraint to the development of agri-biotech in India is the

lack of scientific and technological capacity. Compared to technologies in USA and China,

Indian technology is obsolete and less efficient. Modern biotechnology requires state of the

art infrastructure for its proper execution.

R&D in biotechnology requires a great deal of knowledge

and skill set for working inside the laboratories as well as on field. More focus is required

to develop adequate research base and infrastructure in order to become at par with the

technologies and innovations of the developed countries.

In India, many pathbreaking researches have been done in the

field of plant biotechnology like development of transgenic rice and wheat carrying stress

tolerant genes. However, the bigger challenge lies in taking these products through the

regulatory processes and commercializing them.

Diverse climatic

conditions prevailing in India are responsible for varied cropping pattern from region to

region. Accordingly, the market share for seeds in India varies from crop to crop and from

region to region. The demand for transgenic plants and seeds is even more uncertain,

given the safety requirements and risk aversion propensity of Indian farmers. Thus, the task

of marketing and pricing of novel biotechnology plants gets complex in such environment.

Use of technology in agriculture is well accepted by the farmers in

India, but GM crops have seen a stiff resistance from some farmer communities and end

consumers particularly for the edible crops. Although people have been experimenting for

long, there exists an unease that many feel about genetically modified plants and

organisms.

It is not only essential to develop new

technologies but transfer of technologies to the field is important as well. This requires a

strong commitment and coordination of organizations, entrepreneurs, businesses and

agencies who can validate and adapt them to local economic structures, regulatory

framework and markets within the given time frame.

There is a need to build public awareness

about opportunities and challenges presented by biotechnological developments. It is also

essential to inspire public trust and confidence on the safety, efficacy as well as social and

ü

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Challenges

Lack of technology:

Low level of skill development:

Regulatory Framework:

Market development and appropriate pricing of transgenic seeds:

Consumer resistance:

Technology transfer and technology absorption:

Low level of understanding of biotechnology:


ethical acceptability of products among consumers through the dissemination of accurate

information in a coherent, balanced, user-friendly and transparent manner.

Critical concerns have been raised on the risks and long-term impacts associated with GM

crops by various stakeholders in the food and agri domain, some of whom have also

demanded the abandonment of research and development in the biotechnology field. Due

to minimal amount of information or, in some cases, misinformation people have started

showing concern for their health and ecological balance. Some potential risks associated

with biotechnology are:

Food allergy is a common phenomenon across all age groups. Food-allergic people usually

react only to one or a few allergens in one or two specific foods. A major safety concern

raised with regard to genetic engineering technology is the risk of introduction of allergens

and toxins into otherwise safe foods. The Food and Drug Administration (FDA) ensures that

the levels of naturally occurring allergens in food produced from transgenic organisms have

not significantly increased above the safe range.

However, transgenic technology is also being employed to remove allergens from foods like

allergens from peanuts could be removed using this technology which is one of most

serious causes of food allergy.

To identify the success of a gene transfer antibiotic resistance genes are used during

genetic modification. There is an apprehension to the use of such markers as it may lead to

emergence of new antibiotic resistant strains of bacteria.

To mitigate this risk, FDA has advised food developers to avoid using marker genes that

encode resistance to clinically important antibiotics.

Opponents of genetic engineering technology have raised concerns that transgenic crops

might cross pollinate with weeds, possibly resulting in “superweeds” which will be more

difficult to control. However, the chances of occurance of this phenomenon is extremely

low. Also, resistance to a specific herbicide does not mean that the plant is resistant to

other herbicides, so affected weeds could still be controlled with other products.

Risks associated with GM crops

Introduction of Allergens and Toxins

Antibiotic Resistance

Emergence of Superweeds


Impact on “Nontarget” Organisms

Insecticide Resistance

Loss of Biodiversity

Another concern has been raised regarding the unforeseen and undesirable effects that

GM crops could give rise to, once they are grown commercially. Although transgenic crops

are rigorously tested before being made commercially available but is is difficult to predict

every potential impact that they might have.

Bt corn, for instance, produces a very specific pesticide intended to kill only pests that feed

on the corn. However, some research studies have shown that pollen from Bt corn could

also kill caterpillars. But follow-up field studies have also shown that under real-life

conditions caterpillars are highly unlikely to come into contact with pollen from Bt corn or

to eat enough of it to harm them.

Concerns have been raised related to the large scale adoption of transgenic crops which

could result in rapid built up of pest resistance.

Although, insects possess a remarkable capacity to adapt to selective changes, but to date,

despite widespread planting of biotech crops, no Bt tolerance in targeted insect pests has

been detected.

Many environmentalists, including farmers, are very concerned about the loss of

biodiversity. Increased adoption of conventionally bred crops raised similar concerns in the

past century, which led to extensive efforts to collect and store seeds of as many varieties

as possible of all major crops.

Policy Environment forBiotechnology in India

The Indian government has been very proactive and supportive in driving the growth of the

biotechnology sector in India. The government has offered grants and tax incentives, and

implemented investment friendly regulations for strengthening biotech sector. Some of the

initiatives taken by the government are listed below:

The nodal agency for

biotechnology in India is the Department of Biotechnology (DBT) which looks after

the sector's policy promotions. The setting up of a separate Department of

Biotechnology (DBT), under the Ministry of Science and Technology in 1986 gave a

new impetus to the development of modern biology and biotechnology in India. In

more than two decades of its existence, the department has promoted and

accelerated the pace of development of biotechnology in the country. The

department has made significant achievements in the growth and application of

biotechnology in the broad areas of agriculture, health care, animal sciences,

environment, and industry.

The commercial cultivation of Bt cotton was

approved by the government in early 2002. Since then India has seen a surge in the

crop's production and farm income. As of now nearly 94% of the total area under

cotton is Bt cotton.

The Government of India and the UNESCO

fully realizing the need of training and education in the field of biotechnology took a

joint decision to establish the regional centre for research, training and education in

biotechnology. The Centre focuses on cooperatively working towards shared

biotechnology growth in the Asia-Pacific region.

• Establishment of Department of Biotechnology:

• Commercial cultivation of Bt cotton:

• Regional centre for biotechnology:

Policy Environment forBiotechnology in India



Government of India has collaborated with

governments of various other countries to empower the biotech sector in India. The

international cooperation envisages fostering international linkages in biotechnology

in order to:

Assist in implementation of national programs through transfer of knowledge

between various countries.

Open avenues for interaction leading to exchange of knowledge available with

the countries.

Building bridges to promote and strengthen bilateral ties through participation in

joint R&D programs.

Capacity building in high–tech areas through training and exchange programs.

Share expertise in S&T and large scale facilities with developed and developing

nations.

• International collaboration:

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Sri Lanka- Jointresearch and

development, trainingand exchangeof information.

Russia- 8 projectsin agri and medicalbiotechnology area

have been formulatedfor implementation.

Israel- 6 jointprojects have been

implemented in the area of

human genetics.

Germany- Isolationand characterizationof microorganisms,

Development ofMicrobial processes,

Development ofbioreactors etc.

UK- FoodBiotechnology,

Vaccines forcommunicable andnon communicable

diseases etc

Sweden- Underthe joint collaborative

programme fourprojects wereimplemented

InternationalCooperation


Biotech Parks: The established biotechnology parks and biotech incubation centers

provide a good model for the promotion of biotech startup companies and the

encouragement of Public Private Partnerships. States such as Andhra Pradesh,

Kerala, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh have made substantial

progress in establishing biotech parks, whereas Himachal Pradesh, Karnataka,

Madhya Pradesh, Rajasthan and Uttarakhand are in development stage. These

biotechnology parks also act as bio clusters - where companies, universities and

R&D institutes are all sited in a single enclave.

Infrastructure facilities: The government, through its schemes has also tried to

promote establishment of repositories for conservation/preservation of living

organisms including microbes both useful and harmful in agriculture, human health,

animal husbandry and bioindustries as well as establish sophisticated biotech

facilities for research, training, services including supply of reagents/ materials.

Biotechnology Industry Partnership Program (BIPP): Biotechnology Industry

Partnership Program for advanced technologies was launched for achieving global

competitiveness, addressing major national technological needs and generating

intellectual property in frontier biotechnology areas. In November 2008, DBT

launched BIPP, a highly industry-friendly initiative with an approved budget of INR

350 crores.

The funds were available to companies to take up innovative research programs and

the government assumed all the risks associated with it. The rewards belonged to

the innovator/entrepreneur with a small part of royalty going back to the Government

for further extension of the scheme. The scheme is still in place and will continue thduring the 12 plan.

Expanding Small Business Innovation Research Industry (SIBRI): Small Business

Innovation Research Industry SIBRI is an ongoing scheme to promote innovation in

Small & Medium Enterprises.

Biotechnology Industry Research & Development Assistance Council (BIRAC):

Biotechnology Industry Research & Development Assistance Council (BIRAC) was

established by the Department of Biotechnology (DBT) to act as an interface

between academic and private sector, particularly SMEs and start-ups for catalyzing

R&D and innovation in biotechnology in private sector and promote Public-Private-

Partnerships

After the success of “Biotechnology Development Strategy, 2007” which formed the th th

backbone of 11 Plan, recommendations for 12 Plan have been made. The overall strategy

thof 12 Plan proposals is to “accelerate the pace of research, innovation and

development to advance biotechnology as strategic area by taking India's strengths

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thBiotechnology in the 12 Five year plan


in foundational sciences to globally competitive levels and expanding the application

of biotechnologies for overall growth of bio-economy within the framework of

inclusive development”. This strategy complements the foundations laid during the 11th

Plan and shall be achieved through focused investments, policy support, reforms in

governance and management of projects around the following goals:

Expanding available pool of research scholars and scientist at all levels (Ph.D, PDFs,

young faculty) in biological and interdisciplinary space by 3-5 folds.

Connecting and augmenting existing competences across institutions and

universities for bio-economy and social impact.

Expanding, diversifying career paths with a linkage to high-end interdisciplinary

sciences, innovation, translation and entrepreneurship.

Strengthening regulatory science and infrastructure.

Expanding existing autonomous R&D institutions and establishment of new

institutions in emerging areas of critical national needs.

Expansion and commissioning of bioclusters at Faridabad, Mohali, Kalyani and

Hyderabad.

Establishing DBT grant-in-aid or partnership research and translational centres

through long term support.

Rejuvenate existing and establish new research resources, facilities and services.

Leverage international collaboration for partnerships in cutting edge areas of

research, education, technology development and acquisition.

Continued and sustained support to Public-Private-Partnerships with new innovative

funding schemes.

Promoting new generation biotech industries.

Technology acquisition, transfer and licensing for product development.

Communication platform/system for creating awareness and public understanding of

biotechnology.

Expedite legal framework and legislations.

thStrengthening and consolidation of major initiatives taken during 11 plan.

Promoting policy research and analysis in biotechnology.

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thFocus Areas of 12 Plan

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thNew Institutions Proposed During 12 Plan Period

National Institute of Marine and Microbial Biotechnology

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Scaling up of existing successful schemes by atleast 3 folds

Starting of new initiatives in human resource development.

Expansion and establishment of new generation research resources, facilities and

services.

Major support to universities and institutions for interdisciplinary research in medical

sciences, agriculture, veterinary and biopharmaceuticals.

Sustained support to newly established autonomous institutions.

Expansion of existing institutions for setting up innovation and translational centers.

Setting up of new institutions in the area of marine biotechnology and bioinformatics.

Setting up of 50 more centers/units for basic and translational research in priority

areas.

Continuation of Public-Private-Partnership programs with new innovation schemes.

Establishment of biotechnology regulatory authority of India along with series of

regulatory testing, communication system and validation centers.

The major objective of the institute is to focus on the non food sector of marine resources

in the country. The key areas of research would be:

Marine extremophiles

Marine pharmaceuticals and bioactive compounds

Marine biomaterials

Marine enzymes

Bioremediation

Marine genomics

Marine nanotech

Marine algae as a source of biodiesel etc


The NIMB will provide a strong leadership in the country for translational research and

process/product development. A continuous and dynamic linkage with the marine biotech

industry will be maintained to foster its development.

The Biotechnology Regulatory Authority of India will be an independent, autonomous,

statutory agency established to safeguard the health and safety of the people of India and

to protect the environment by identifying risks posed by modern biotechnology and

managing those risks through regulating the safe development and deployment of

biotechnology products and processes. The authority will be responsible for regulating the

research, transport, import, manufacture and use of organisms and products in health care,

agriculture, veterinary and environment. The BRAI bill after cabinet approval has been

tabled in Lok Sabha for introduction.

The proposed Institute's main goal is to empower scientists and researchers to develop

new powerful tools for large scale analysis of the data, developing models and hypothesis

regarding different biological processes. These tools can be used to develop new

applications related to system biology. The Institute will also make the required tools and

databases accessible to the Indian scientific community.

The main objective of the institute is basic and translational research, education and training

blending academic, industry, and government partnerships to develop and commercialize

innovative, life sciences-based technologies. The research groups will be led by

multidisciplinary scientists belonging to disciplines of cellular and molecular biology,

computational biology, Physics and Physical chemistry, medicine, chemical and mechanical

engineering, virology, or materials science and engineering.

The Institute will be established in collaboration with Translational Health Science and

Technology Institute (THSTI) in North Eastern Region. The objective is to pursue an

integrated strategy involving research from the gene to population and including basic to

applied clinical research addressing specific needs of infectious diseases of the region. The

focus shall be on infection research, covering a range of human and animal pathogens and

using an array of approaches.

Biotechnology Regulatory Authority of India (BRAI)

Institute of Bioinformatics and Computational Biology

Institute of Biodesign, Bioscience and Bioengineering

Infectious Science and Biotechnology Institute in North East


thBudget for Biotechnology in the 12 plan

Considering the maximal utilization of allocations and implementational trends of the

department, increasing needs of bio-industrial development and clearly focused programs th

for 12 Plan the working group after deliberation recommended an investment of INR th

17,887.81 crores for 2012-2017 which is 3 fold increase over 11 plan allocation. The breakup

of the same is given below:

S No. Name of Program/Scheme/Project Outlay (in INR crores)

A Science & Technology sector

B Autonomous R&D institutions

C Innovation Support Schemes to Industry

1 Human Resource Development 600

2 Promotion of Excellence and Innovation 600

3 Research Resources Facilities and Services 700

4 Bioinformatics, Computational and System Biology 200

5 Basic and Use Inspired Research 1,500

6 Translational Science and Strategic Research 2,000

7 Grand Challenge Programs 800

8 Bio-Clusters and Incubators 1,500

9 International Collaborations 300

10 Biotechnology for Social Development 200

Total (A) 8,400

1 Ongoing 6,037.81

2 New 2,050

Total (B) 8,087.81

1 Biotech Parks 100

2 SBIRI 200

3 BIPP 500

4 BIRAC 250

5 New Initiatives 300

6 Others 50

Total C 1,400

Total (A+B+C) 17,887.81


Biotechnology Regulatory Authority of India

Background

Salient features of the Bill

The Biotechnology Regulatory Authority of India (BRAI) Bill, 2011 was initially proposed by the

Minister of Science & Technology and Earth Sciences, in the Lok Sabha on July 27, 2011.

However, it was not taken up by the Parliament for discussions in that session. The bill was

withdrawn and was re-introduced for discussion in November, 2011. Unfortunately the

discussions were again deferred. In April 2013, the Ministry of Science and Technology once

again introduced the Biotechnology Regulatory Authority of India (BRAI) Bill in the Lok Sabha.

Recognizing the importance of biotechnology and the benefits it has to offer to health,

agriculture and food production, environmental protection, climate change and sustainable

development, the Government of India seeks to develop the sector in a responsible way in

harmony with ecological and ethical values and goals. However, realizing the risks associated

with biotechnology, the Government also seeks to safeguard the health and safety of the

people of India and to protect the environment by identifying potential risks posed by, or as a

result of, modern biotechnology and managing those risks through regulation of the safe

development and deployment of biotech products and processes. With these objectives in

mind the Government of India has proposed the BRAI Bill. The salient features of the Bill are:

Objectives of the Bill

• The Bill aims to promote the safe use of modern biotechnology by enhancing the

effectiveness and efficiency of regulatory procedures and provide for establishment of

Biotechnology Regulatory Authority of India (BRAI) to regulate research, transport,

import, manufacture and use of organisms and products of modern biotechnology. It

also aims to provide a single window platform for the risk assessment of biotech

products in sectors like agriculture, health, environment etc.

Composition of the authority

• BRAI shall consist of a chairperson, two whole time members and two part time

members who shall be appointed by the Central Government. The chairperson and the

whole time members shall be appointed on the recommendation of the selection

committee.

Functions of the Chairperson

• The Chairperson shall be responsible for the day-to-day working and administration of

BRAI and implementation of its work plans.


Inter-ministerial Governing Board and Biotechnology Advisory Council

• The central government shall constitute an inter-ministerial governing board to

facilitate inter ministerial and departmental coordination required for effective

discharge of the functions of the authority.

• The inter-ministerial governing board shall be represented by members from the

Ministry of Commerce and Industry, Ministry of Food Processing Industries, Ministry

of Environment and Forests, Ministry of External Affairs, Department of Biotechnology

and other major ministries and departments of India.

Functions and Power of BRAI

Some of the major functions include:

• Regulate research, transport, import, manufacture and use of organisms and products

of modern biotechnology.

• Provide scientific advice and technical support to central and state Governments with

respect to framing policies in the sector.

• Develop and implement guidelines for safety assessment methodologies for products

and processes under the act.

• Organize workshops, conferences and other programs to inform the public about the

mandate, programs and policies of the authority.

• Serve as the nodal agency for coordination of work on standards and guidance related

to regulation of organisms and products of modern biotechnology.

Divisions of Authority

• The Authority shall have at least three regulatory branches:

a) Agriculture, Forest and Fisheries Branch, responsible for regulating biotech

products and processes used in agriculture, forestry and fisheries, including

aquaculture.

b) Human and Animal Health Branch, responsible for regulating biotech products

and processes with applications in human and veterinary health.

c) Industrial and Environmental Applications Branch, responsible for regulating

biotech products and processes used in industrial manufacturing and in

environmental applications.


• Other regulatory branches may be established as required for meeting specific needs

and enhancing efficiency to regulate biotech products and processes.

• Each branch shall be headed by a Chief Regulatory Officer, an eminent scientist with

subject matter expertise relevant to the branch, appointed at the rank of additional

secretary to the Government of India.

• BRAI shall also constitute a Risk Assessment Unit to undertake scientific safety

assessments.

• The authority shall constitute a products ruling committee for the purpose of making

recommendations to BRAI for manufacture and use of organisms and products under

the gamut of the authority.

State Biotechnology Regulatory Advisory Committee

• Each State Government needs to establish a Biotechnology Regulatory Advisory

Committee which shall act as the nodal agency for interaction between the State

Government and BRAI in matters related to modern biotechnology. It shall also

collaborate with BRAI for undertaking capacity building and information sharing

activities relating to biotechnology within the State.

Enforcement of Provisions

• The enforcement of the provisions of the act shall be the responsibility of BRAI for

which it may set up a mechanism in consultation with State Governments or any other

authority that may be considered necessary.

Future of Agri Biotech in India

The application of biological sciences in agriculture has become increasingly prominent

since the past decade. Innovative products and services with intervention of agri-

biotechnology will bring greater efficiency by providing technology-based economically

feasible options. Agri-biotechnology has the potential to address the challenges faced by

Indian agriculture and is a feasible alternative to ensure food security for such a large

population. However, the advancement of agri-biotechnology as a successful industry

poses many challenges related to capital investment, intellectual property, research and

development, technology transfer, affordability in pricing, regulatory issues etc.

Despite so many research and development initiatives, a lot of possibilities are yet to be

explored for meeting future challenges pertaining to rising population. There is a need to

increase the level of agricultural production through efficient and sustainable technologies.

In this scenario, agriculture biotechnology is expected to play a critical role in the coming

decades.

For a sustainable future, focused research and related policies should be initiated in the

arena of agricultural biotechnology which will help in development of products offering

better solutions to traditional agricultural problems. This calls for a comprehensive roadmap

and effective implementation in a time bound manner.

For addressing the challenges pertaining to food security, agri-biotechnology will have to be

incorporated up to a higher extent into existing crop research and livestock breeding

methods. Some of the ways are development of crops that have much better water-

utilization efficiency, development of the crops with greater tolerance to drought-like

conditions, by breeding or genetic modifications. Although, high level benefits are

expected from the dissemination and adoption of conservation tillage and reduced tillage

methods but at the same time drought tolerance, nitrogen use efficiency, and herbicide-

tolerant crops shall continue to get priority among scientists with efficient usage of

biotechnology.

Future of Agri Biotech in India



For a sustainable future, focused research and related policies shall be initiated in the arena

of agricultural biotechnology for developing new products which may offer better solutions

to traditional agricultural problems and will create a roadmap for the following:

Different approaches will have to be inculcated in future for saving the existing stock of

food and at the same time increasing crop productivity through biotechnological

interventions.

a) One of the approaches would be attacking the causes of crop losses, such as pests

(insects, viruses, and disease), stress (weather variability like drought and frost) and

competitors for soil nutrients (weeds) etc. by altering genetic make-up or introduction

of new genes into existing germplasm.

b) Some other approaches will involve efficiency enhancement of plants for higher

productivity from the same or lesser amount of inputs and improvement in ability of

plants to grow and flourish in nutrient deficit soils or adverse resources. At the same

time, sustainable future needs will also depend upon increasing the efficiency of

animal production on the similar patterns.

At present, the country is facing issues in terms of maintaining high standards of quality

while undertaking food processing and value addition. Maintaining good quality and

meeting standards, result in sharp increase of costs for most of the food products. Agri-

biotechnology provides a great alternative through improved production processes and

breeding programmes for producing superior food products with desired quality and more

importantly within desired time frame. With rising income levels and inclined preference for

good quality and higher standards, more and more developments will have to be initiated

through biotechnological means for addressing the gaps. In coming years, agri-biotech

research should be aimed at improving quality, nutritional value and other product attributes

while simultaneously focusing on safety parameters concerning human health and

environment.

Eliminating post harvest losses is an effective alternative to increase food availability

without requiring additional resources or placing additional burdens on the environment.

Harvesting, drying and storage are all stages which see substantial losses, both

quantitative (physical losses caused by rodents, insects or infestations) and qualitative (loss

of quality and value). Agri-biotechnology will play a vital role in addressing the post harvest

losses through induction of several traits which will help in developing better crops

1. Efficient Food Production

2. Quality and Nutrition Improvement

3. Mitigating Postharvest Losses

adaptable to post harvest processing and having commercial viability. Biotechnology will

help in enhancing the shelf life of variety of products along with development of varieties

which can sustain in adverse climatic and stressful conditions. For example, agri-

biotechnology has been employed to modify the lignin content of certain tree species, in

order to improve pulping, the process by which wood fibers are separated to make paper.

Reduced lignin will improve the efficiency of paper production and will also reduce

environmental pollution from the paper production process.

Fiber, Fuel and other products are equally important for sustainability. In future, demand for

these products is sure to rise, which in turn, will put a stress on the limited resources.

Biotechnology paves the way forward for enhancing the availability and production of these

products efficiently.

The nodal agency should promote consumer education on GM crops as there are many

misconceptions and fear among sections of the public related to the consumption of GM

crops. The nodal agency should bring all stakeholders on a common platform to debate

critical issues before commercialization of a new technology or product. There should be

harmonization between the policies launched by central government and state

governments. The governing body should work in a transparent manner and should disclose

relevant information to the consumers so that they are able to take an informed decision.

Most importantly the regulatory policies should focus on protecting the health of people

and the environment from the risks of modern biotechnology. The policy makers should

realize that citizens and governments all over the world are skeptical to the use of

transgenic technology in agriculture. Hence every policy should be based on the

precautionary principle as the central guiding principle. Adequate risk assessment should

be done in order to ensure the safety of the crop/technology prior to its commercialization.

Rigorous scientific protocols should be adopted by the research institutions and companies

in order to ensure the safety of the technology. An independent testing agency should be

developed for the evaluation of the results and approval. Crop developers and regulating

agencies should be made liable for any new crop/technology developed for commercial

use. Socio economic and environmental impact studies should be conducted prior to the

commercialization of GM crops on a large scale for assessing their overall impact.

4. Meeting Future Needs for Fiber, Fuel and Other Products

5. Educating the Consumers

6. Safety Focused Regulatory Policy


7. Labeling of GM Produce

8. Industry Focused Research

In order to increase the overall trust of Indian biotech products in global markets which in

turn shall give an impetus to exports, a proper labeling mechanism covering traceability

requirement should be adopted.

The research in the sector should be linked with the industry requirement thus producing

viable projects which could be commercialized. A proper mechanism should be in place for

commercialization of the developed crop and monitoring should also be done in order to

ensure successful implementation of the same.


ASSOCHAM, acknowledged as the Knowledge Chamber of India, has emerged as a forceful, pro-

active, effective and forward looking institution playing its role as a catalyst between the

Government and Industry. Established in 1920, the Chamber has been successful in influencing

the Government in shaping India's economic, trade, fiscal and social policies which will be of

benefit to trade and industry. ASSOCHAM renders its services to over 4,00,000 members which

include multinational companies, India's top corporates, medium and small scale units and

associations representing the interest of more than 400 Chambers and Trade Associations from

all over India encompassing all sectors.

ASSOCHAM has over 100 National Committees covering the entire gamut of economic activities

in India. It has been acknowledged as a significant voice of the Indian industry especially in the

fields of Corporate Social Responsibility, Environment & Safety, Corporate Governance,

Information Technology, Agriculture, Nanotechnology, Biotechnology, Pharmaceuticals, Telecom,

Banking & Finance, Company Law, Corporate Finance, Economic and International Affairs,

Tourism, Civil Aviation, Infrastructure, Energy Power, Education, Legal Reforms, Real Estate,

Rural Development etc. The Chamber has its international offices in China, Sharjah, Moscow, UK

and USA. ASSOCHAM has also signed MoUs to set up partnerships with Business Chambers in

more than 75 countries.

YES BANK, India's fourth largest private sector Bank, is the outcome of the professional &

entrepreneurial commitment of its Founder, Rana Kapoor and his top management team, to

establish a high quality, customer centric, service driven, private Indian Bank catering to the

Future Businesses of India. YES BANK has adopted international best practices, the highest

standards of service quality and operational excellence, and offers comprehensive banking

and financial solutions to all its valued customers.

YES BANK has a knowledge driven approach to banking, and a superior customer experience

for its retail, corporate and emerging corporate banking clients. YES BANK is steadily

evolving as the Professionals' Bank of India with the vision of “Building the Best Quality Bank

of the World in India” by 2015.

N O T E S

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