Q.8 (i) – Benefit Sharing under the Plant Varieties and Farmers’ Rights Act, 2001
(Detailed Analysis for LLB Exams)
I. Meaning of Benefit Sharing
Benefit Sharing is a system under the Plant Varieties and Farmers’ Rights Act, 2001 (PVFR Act) where benefits earned by companies or breeders from a registered plant variety must be shared with farmers, communities or institutions who have contributed to the evolution, preservation, or development of that variety.
Legal Basis:
Sections 26, 41 & 45 of the PVFR Act, 2001
It ensures that farmers are not exploited and their traditional knowledge is recognized.
II. Why Benefit Sharing is Important
- Farmers often preserve seeds for decades.
- Breeders use these seeds to develop new commercial varieties.
- When breeders make profit, farmers deserve compensation.
- Protects traditional agricultural knowledge.
- Prevents bio-piracy.
Example:
If a seed company develops a new wheat variety using seeds traditionally maintained by Punjab farmers → those farmers deserve compensation.
III. Authorities Involved in Benefit Sharing
1. Protection of Plant Varieties and Farmers’ Rights Authority (PPV&FRA)
(Section 3)
The central authority that decides who gets benefit sharing and how much.
IV. Procedure for Benefit Sharing (Section 26)
Step 1: Registration of New Variety
When a breeder registers a plant variety, the Authority invites claims for benefit sharing from:
- Farmers
- Communities
- NGOs
- Institutions
- Researchers
Step 2: Filing of Claims
Any farmer or community who contributed genetic material can file a claim.
Premises:
- Traditional seed
- Local varieties
- Farm-saved seeds
- Knowledge about cultivation traits
Step 3: Examination of Claims
Authority examines:
- Extent of contribution of farmers
- Commercial returns earned by breeder
- Uniqueness of variety
- Use of traditional knowledge
Step 4: Authority Decides Benefit Amount (Section 26(5))
Authority may award:
- Monetary benefit
- Royalty distribution
- Lump-sum compensation
- Recognition certificates
Step 5: Payment of Benefit
Breeder must deposit the amount into the National Gene Fund.
V. National Gene Fund (Section 45)
Benefit sharing payments go to the National Gene Fund, which is used for:
- Rewarding farmers
- Conservation of plant genetic resources
- Enhancing rural biodiversity
- Supporting local farming communities
It ensures benefits reach the real contributors.
VI. Types of Benefits Provided to Farmers
1. Monetary Benefit / Compensation
Amount decided based on breeder’s profit.
2. Recognition Awards
Certificates, awards for preserving genetic wealth.
3. Royalties from Sale
Farmers may receive percentage of royalty from breeders.
4. Community Development Funds
Benefits may go to a community instead of individuals.
VII. Rights of Farmers in Benefit Sharing (Section 41)
- Farmers have a right to claim benefit sharing.
- No need to prove scientific research; traditional preservation is enough.
- Farmers cannot be sued for innocent infringement; they are protected.
- Farmers can save, use, sow, re-sow, exchange, share or sell farm produce including seeds (except branded seeds).
VIII. Case Laws (Important for Exam)
1. Prakash Singh Badal v. Union of India (PPVFR Authority Decision, 2013)
Farmers of Punjab claimed benefit sharing for contribution to several wheat varieties.
Authority held that traditional conservation of seeds qualifies for benefit sharing.
2. PepsiCo India Holdings v. Farmers of Gujarat (2021)
PepsiCo sued farmers for growing its registered potato variety.
Outcome:
Case withdrawn after public pressure.
Authority recognized that farmers have broad rights, and breeders cannot harass them.
Importance:
Strengthened farmer protection and equitable benefit sharing.
3. Maharashtra Hybrid Seeds Co. (Mahyco) Cases
Courts emphasized that benefit sharing ensures genetic resources are not misused.
IX. Example for Easy Understanding
A company develops a new high-yield rice variety using seeds preserved by a tribal community in Odisha.
- Company registers the variety.
- Authority invites claims.
- Tribal community files claim.
- Authority determines contribution based on traditional seed preservation.
- Company must pay benefit sharing amount into National Gene Fund.
- Community receives compensation.
This protects indigenous farmers.
X. Conclusion (Exam-Friendly)
Benefit Sharing under the PVFR Act, 2001 ensures that farmers and communities who preserve or contribute to plant genetic resources receive a fair share of benefits when breeders commercially exploit new plant varieties. Through mechanisms under Sections 26, 41, and 45, the Act provides monetary compensation, recognition, and rights to farmers, thereby ensuring social justice, prevention of bio-piracy, and protection of traditional agricultural knowledge.
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