New Delhi: The sustainable food and agriculture alliance Soluble Fertilizer Industry Association (SFIA) and the Vidarbha Industries Association (VIA) successfully organised a high-level conference in Nagpur, bringing together over 70 agribusiness leaders, policymakers, and sustainability experts.
The event addressed key challenges faced by Micro, Small, and Medium Enterprises (MSMEs) under India’s Biodiversity Act, with a strong demand for policy reforms, including an exemption of MSMEs from Access and Benefit Sharing (ABS) obligations and greater clarity in regulatory definitions.
Industry leaders highlighted that MSMEs—integral to India’s agrarian economy—lack the resources to navigate the complex compliance requirements imposed by ABS contributions under Section 7 of the Biodiversity Act. Participants argued that applying ABS obligations to small-scale enterprises would significantly increase their operational costs and administrative burden, potentially stifling growth and innovation. Drawing from global examples, industry representatives pointed to countries like Brazil and South Africa, where MSMEs are exempt from similar obligations, urging India to adopt a more supportive policy framework.
Dr Suhas Buddhe, Advisor, Soluble Fertilizer Industry Association (SFIA), stated, “MSMEs are already struggling with rising input costs and market uncertainties. Imposing additional compliance requirements under the ABS framework could push many businesses towards financial distress. We urge the government to align policies with global best practices to protect and promote these enterprises.”
Stakeholders also underscored the urgent need to refine key definitions within the Biodiversity Act, particularly terms such as “bio-utilisation,” “commercial use,” and “value addition.” The lack of precise terminology has led to inconsistent interpretations, legal uncertainties, and reluctance among businesses to invest in biodiversity-related ventures. A collective call was made for a structured dialogue between the industry and the National Biodiversity Authority to streamline definitions and foster trust. One of the participants noted, “Effective regulation is built on clarity. Without well-defined terms, compliance becomes a challenge, leading to hesitation in adopting biodiversity-friendly business models. A consultative approach between industry and regulators is essential for a balanced and transparent framework.”
The conference concluded with a strong consensus on the need for immediate policy intervention. Attendees resolved to submit a formal proposal to the Ministry of Environment, Forest and Climate Change (MoEFCC), advocating for the exemption of MSMEs from ABS contributions to reduce regulatory pressure and support small businesses. They also recommended the formation of a dedicated committee to review and clarify ambiguous definitions in the Biodiversity Act, alongside regular consultation mechanisms between agribusiness stakeholders and regulatory bodies to ensure policies remain practical and aligned with industry realities.
SFIA and VIA, as leading industry bodies committed to sustainable agriculture and policy advocacy, will spearhead efforts to engage with policymakers and ensure the concerns of MSMEs are addressed. The conference reinforced the need for a balanced approach that safeguards biodiversity while enabling economic growth and ease of doing business.
