India's Access and Benefit Sharing (ABS) framework
Why in News?
According to June 20, 2026, the National Biodiversity Authority (NBA) has successfully mobilized over ₹266 crore through the Access and Benefit Sharing (ABS) mechanism since 2008.
Legal & Regulatory Basis
- Governed by: Biological Diversity Act, 2002
- Supporting rules: Biological Diversity Rules, 2024
- Specific regulations: ABS Regulations, 2025
- International obligation: Nagoya Protocol on ABS (India signatory since 1992 to CBD)
What is the ABS Framework?
- The Core Philosophy: When corporate bodies (like pharmaceutical, cosmetics, or seed companies) commercialise a natural resource (a medicinal plant or indigenous crop), they are mandated by law to pay a percentage of their revenue back to the native region.
- Preconditions: Commercial users must obtain Prior Informed Consent (PIC) and establish Mutually Agreed Terms (MAT) before accessing the biological resource.
- International Linkage: The framework aligns directly with the international Nagoya Protocol (under the CBD), which India signed to prevent biopiracy.
Institutional Framework (Three-Tier Structure)
- National Level: The National Biodiversity Authority (NBA) processes approvals for foreign entities, intellectual property rights (IPR), and third-party transfers.
- State Level: State Biodiversity Boards (SBBs) regulate commercial utilisation by domestic Indian entities. Under current rules, the NBA transfers 85% to 90% of collected funds to SBBs for direct localized distribution.
- Local Level: Over 2,76,653 Biodiversity Management Committees (BMCs) operate at local local-body levels to maintain People’s Biodiversity Registers and receive payout funds.
Sector-Wise Breakdown & Key Contributors
- Red Sanders Monopoly: The trade of endangered Red Sanders (Pterocarpus santalinus) remains the single largest contributor, generating 45% (₹120 crore) of the total lifetime ABS collections.
- Agriculture & Seed Industry: The seed sector is the second largest driver at 32.3% (₹84.61 crore), led by major entities like Pioneer Overseas Corporation and Syngenta.
- Ayush & Pharma: The commercialisation of traditional herbs and ayurvedic remedies accounts for 13.8% (₹36.61 crore), driven by brands like Dabur and Himalaya Wellness Company.
How the Disbursed Money is Utilised?
- Grassroots Beneficiaries: Payouts have directly supported more than 10,500 BMCs across 23 states and hundreds of individual traditional knowledge holders.
- Conservation Initiatives: Communities use the funds for habitat restoration, documenting dying indigenous wisdom, building community gene banks, and setting up dedicated medicinal plant parks.
- Exemptions: Cultivated medicinal plants remain exempt from the ABS levy to encourage active farming and reduce regulatory burdens on AYUSH practitioners.
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