The Ayurvedic Drug Manufacturers Association (ADMA) is scheduled to meet the Maharashtra State Biodiversity Board (MSBB) officials on January 5, 2016 in order to arrive at a consensus on the much debated access and benefit sharing (ABS) compliance in the state.
As per the ABS compliance, Ayush manufacturers are required to share benefit among concerned Biodiversity Management Committees (BMC) of the state for sustainable use of bio-resources as per Biological Diversity (BD) Act, 2002.
In response to over 300 notices served by MSBB to companies, around Rs.4 lakhs have been collected based on ABS compliance from 4 manufacturers in the state. This is followed by National Green Tribunal (NGT) recently passing an order for ABS payments by companies engaged in commercial utilisation of castor plant and other bio-resources for drugs and cosmetics.
Manufacturers have questioned the irrationality of the ABS notification saying that it is applicable to foreign companies only. It is not applicable to Indian manufacturers as most of the raw material is not commercially utilised. MSBB has however maintained that law exempts commonly traded commodities for general consumption and not commercial utilisation of bio-resource as stipulated in the November 21, 2014 ABS notification. MSBB has the mandate to collect ABS payment under the provisions of BD Act, 2002.
Meanwhile, Central India Ayush Drug Manufacturers Association (CIDMA) has filed a petition in the Nagpur bench of Bombay High Court seeking explanation on notices issued for the recovery of ABS under BD Act, 2002.
The PIL states that ABS compliance is not applicable to Indian entities. Only foreign companies and companies holding foreign equity can be held liable as per the BD Act. The compliance to ABS notified on November 21 last year is therefore irrational and unacceptable.
As per the BD Act, manufacturers are accountable to share details of the source from where raw material has been procured in Form I and further submission of the same to MSBB. Manufacturers say that the fees charged as part of ABS in Form I meant to share details of the bio-resource sourced for commercial utilisation is too high for a small time manufacturer. There are 900 manufacturers in the state, out of which only 5 per cent big manufacturers can afford to pay the fees of Rs.5,000.
An official from MSBB stated that state biodiversity boards, National Biodiversity Authority (NBA) and central government are empowered to take legal action for the non-compliance to ABS.
As per the MOEF notification on ABS, when the biological resources are accessed for commercial utilisation or the bio-survey and bio-utilisation leads to commercial utilisation, the applicant shall have the option to pay the benefit sharing ranging from 0.1 to 0.5 per cent at the following graded percentages of the annual gross ex-factory sale of the product which shall be worked out based on the annual gross ex-factory sale minus government taxes.