Why In News?

The National Biodiversity Authority (NBA) disbursed ₹2.02 crore of Access and Benefit-Sharing (ABS) contributions received from major commercial seed-sector companies across 27 States and 3 Union Territories. 

What Is Access and Benefit Sharing (ABS)?

Meaning: ABS ensures that companies and researchers who use biological resources or associated traditional knowledge share monetary and non-monetary benefits fairly with local communities.

International Framework: India implements ABS under the Convention on Biological Diversity (CBD) and the Nagoya Protocol, 2010. The Kunming-Montreal Global Biodiversity Framework also promotes equitable benefit sharing and resource mobilisation.

National Framework: The Biological Diversity Act, 2002, the Biological Diversity Rules, 2024, and the Biological Diversity (Access and Benefit Sharing) Regulations, 2025, govern access to biological resources and benefit-sharing obligations.

Digital Transparency: The NBA has published 3,556 Internationally Recognised Certificates of Compliance (IRCCs) on the international ABS Clearing-House, accounting for over 60% of the global total. (Source: PIB)

India's Three-Tier Biodiversity Governance Framework Structured

National Level: The National Biodiversity Authority (NBA), headquartered in Chennai, functions under Section 8 of the Biological Diversity Act, 2002. 

  • It regulates access by specified foreign entities, advises the Central Government and oversees benefit-sharing and related intellectual property matters.

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State Level: State Biodiversity Boards (SBBs) regulate the commercial use of biological resources by domestic Indian entities under Section 7, subject to applicable exemptions. 

  • Union Territory Biodiversity Councils perform similar functions in Union Territories.

Local Level: More than 2,76,653 Biodiversity Management Committees (BMCs) operate through local bodies under Section 41. They document local biodiversity and traditional knowledge and prepare People's Biodiversity Registers (PBRs). (Source: PIB)

What Are the Major Financial Contributions Under ABS?

  • Total Collections: The NBA has collected more than ₹278 crore through ABS approvals since 2008, including ₹216.31 crore between 2017 and 2025. (Source: PIB)

  • Distribution of Funds: More than ₹200 crore has been distributed to BMCs, SBBs, UT Biodiversity Councils and research institutions. This includes ₹139.69 crore transferred directly to benefit claimars.  

  • Sector-wise Contributions: Red Sanders generated around ₹120 crore (45%), followed by the agri-seed sector at ₹84.61 crore (32.3%) and the pharmaceutical and AYUSH sectors at ₹36.61 crore (13.8%). (Source: NBA)

  • Recent State Allocations: The ₹2.02 crore seed-sector allocation was based on crop cultivation data. Major recipients included Madhya Pradesh (₹23.81 lakh), West Bengal (₹23.32 lakh), Odisha (₹19.75 lakh) and Bihar (₹17.28 lakh). (Source: PIB)

What Challenges Affect ABS Implementation?

Legal Uncertainty: Disputes have emerged over benefit-sharing obligations for Indian companies using domestic biological resources.

  • In Divya Pharmacy vs Union of India (2018), the Uttarakhand High Court upheld the applicability of fair and equitable benefit-sharing obligations to domestic entities under the relevant legal framework.

Corporate Resistance: Some businesses have challenged ABS demands issued by State Biodiversity Boards. 

  • Litigation involving AYUSH manufacturers and the Maharashtra State Biodiversity Board highlighted disputes over the implementation of ABS guidelines.

Misappropriation of Traditional Knowledge: Foreign entities may exploit biological resources or traditional knowledge without proper consent or benefit-sharing arrangements.

  • The neem and turmeric patent disputes highlighted the importance of documenting traditional knowledge to challenge improper patent claims.

Weak Local Capacity: Many BMCs face shortages of technical expertise, funding and reliable biodiversity records. These gaps make it difficult to identify benefit claimers and ensure that communities receive their rightful share.

How Can India Strengthen Its ABS Framework?

Improve Biodiversity Documentation: Strengthen People's Biodiversity Registers to document local biological resources, traditional knowledge and community custodians. This can help identify beneficiaries and ensure transparent fund distribution.

Introduce Digital Traceability: Develop digital records to track biological samples from collection to research and commercial use. Such systems can improve accountability and reduce the risk of biopiracy.

Link ABS with Tribal Livelihoods: Combine benefit-sharing funds with PM-JANMAN and Pradhan Mantri Van Dhan Yojana to support tribal enterprises, value addition and sustainable livelihoods.

Adopt Transparent Allocation Criteria: Use objective criteria, such as crop cultivation area, when authorities cannot identify individual resource collectors. The recent ₹2.02 crore allocation illustrates this approach.

Strengthen Local Institutions: Provide BMCs with adequate funding, trained personnel and technical support so that communities can participate effectively in conservation and benefit-sharing decisions.

Conclusion

India's Access and Benefit Sharing framework links conservation with community rights. Empowering local bodies, maintaining reliable registers, and ensuring transparent disbursements guarantee fair rewards for using local resources and traditional knowledge.

Source: PIB

PRACTICE QUESTION

Q. With reference to the Access and Benefit Sharing (ABS) mechanism under the Biological Diversity Act, 2002, consider the following statements:

  1. The National Biodiversity Authority (NBA) is a statutory autonomous body headquartered in New Delhi.

  2. Under the Nagoya Protocol, commercial users of genetic resources are required to share benefits with provider countries.

  3. In India, Biodiversity Management Committees (BMCs) are statutory local bodies established under the provisions of the Biological Diversity Act.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, and 3

Answer: (b)

Explanation:

Statement 1 is incorrect: While the National Biodiversity Authority (NBA) is indeed a statutory autonomous body established under the Biological Diversity Act, 2002, it is headquartered in Chennai, Tamil Nadu, not New Delhi.  

Statement 2 is correct: The Nagoya Protocol on Access and Benefit Sharing (ABS) mandates that commercial and research users of genetic resources and associated traditional knowledge must share benefits fairly and equitably with the provider countries and local communities.

Statement 3 is correct: Under Section 41 of the Biological Diversity Act, 2002, Biodiversity Management Committees (BMCs) are statutory bodies constituted by local bodies (Panchayats and Municipalities) to promote conservation, sustainable use, and documentation of local biodiversity (such as preparing People's Biodiversity Registers).