The Sustainable Food and Agriculture Alliance (SFIA) and Vidarbha Industries Association (VIA) successfully organised a landmark session on “Impact of Biodiversity Act on Fertilizer, Bio Fertilizer, Bio Stimulants, Seed, Natural plant extract held on 15th February 2025 at Hotel Tuli Imperial, Nagpur, bringing together over 70 agribusiness leaders, policymakers, and sustainability experts.
The event focused on pressing challenges faced by Micro, Small, and Medium Enterprises (MSMEs) under India’s Biodiversity Act, with a strong call to exempt MSMEs from Access and Benefit Sharing (ABS) obligations and to clarify ambiguous definitions in the legislation.
Dr Pravir Deshmukh, Sr Counsellor of CII-ITC Centre of Excellence for Sustainable Development emphasized the key recommendations with all participants viz was exemption of MSMEs from ABS Contributions.
During discussions participants stressed that imposing Access and Benefit Sharing (ABS) contributions, which mandated under Section 7 of the Biodiversity Act, on the small scale businesses would disproportionately increase compliance costs and administrative burdens.
Industry leaders emphasized that MSMEs, which form the backbone of India’s agrarian economy, lack the resources to navigate complex ABS frameworks. Examples from developing nations such as Brazil and South Africa, where MSMEs are exempt from similar obligations, were cited as models for India to adopt.
SFIA Advisor & and Former Vice President of VIA, Dr Suhas Buddhe said MSMEs are already grappling with rising input costs and market volatility. He said adding ABS liabilities could stifle innovation and growth in this critical sector. We urge the Government to align policies with global best practices to safeguard these enterprises.
He insisted that there should be clarity in Biodiversity Act Definitions. Stakeholders underscored the need for precise definitions of terms like “bio-utilization,” “commercial use,” and “ value Addition “within the Act. Ambiguities in terminology have led to inconsistent interpretations, legal disputes, and hesitancy among businesses to engage in biodiversity-based ventures. “Clear definitions are the foundation of effective regulation. Without them, compliance becomes a maze. We propose a collaborative dialogue between industry and the National Biodiversity Authority to streamline definitions and foster trust.”
During the session, stakeholders unanimously resolved to draft a joint proposal to the Ministry of Environment, Forest and Climate Change (MoEFCC), advocating for immediate exemption of MSMEs from ABS contributions, formation of a committee to review and clarify definitions in the Biodiversity Act and regular consultations between agribusiness stakeholders and regulatory bodies.
Earlier, Rajib Choudhary, Chairman of VIA Agri Input Forum felicitated the guests with bouquets and mementos and his welcome address also briefed about the challenges faced by MSMEs and further said SFIA and VIA are leading industry bodies committed to advancing sustainable practices, policy advocacy, and innovation in India’s agriculture and food sectors.
The session was attended by agribusiness leaders, stakeholders from Vidarbha region and other adjoining states.