UPSC MainsECONOMICS-PAPER-II202115 Marks
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Q28.

Analyse the effects of TRIPS Agreement on Indian agriculture.

How to Approach

This question requires a nuanced understanding of the TRIPS Agreement and its implications for Indian agriculture. The answer should begin by defining TRIPS and its core principles, then analyze its effects – both positive and negative – on various aspects of Indian agriculture like seed industry, access to technology, farmer’s rights, and agricultural trade. A balanced approach, acknowledging both the benefits and challenges, is crucial. Structure the answer by first outlining the TRIPS provisions relevant to agriculture, then detailing the impacts, and finally, discussing India’s response and the way forward.

Model Answer

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Introduction

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), a cornerstone of the World Trade Organization (WTO) agreements, came into effect in 1995. It establishes minimum standards for the protection of intellectual property rights (IPR), including patents, copyrights, trademarks, and trade secrets. For a largely agrarian economy like India, TRIPS has had a profound and multifaceted impact on its agricultural sector. Initially, compliance with TRIPS posed significant challenges, particularly concerning the patenting of life forms and the protection of traditional knowledge. This answer will analyze the effects of the TRIPS Agreement on Indian agriculture, examining its implications for seed availability, technology transfer, farmer’s rights, and overall agricultural development.

TRIPS Agreement and its Relevance to Agriculture

The TRIPS agreement impacts agriculture primarily through provisions related to patents on plant varieties, protection of new varieties of plants (through Plant Breeders’ Rights - PBR), and geographical indications. Key aspects include:

  • Patents on Plant Varieties: TRIPS allows member countries to either grant patents for plant varieties or provide an effective sui generis system (a system tailored to the specific needs of the country).
  • Plant Breeders’ Rights (PBR): PBR grants exclusive rights to breeders to commercialize new plant varieties, encouraging investment in plant breeding.
  • Geographical Indications (GIs): TRIPS protects GIs, which are indications that a product originates from a specific geographical location and possesses qualities or a reputation due to that origin (e.g., Basmati rice, Darjeeling tea).

Impacts on the Indian Agricultural Sector

Positive Impacts

  • Investment in Research & Development: TRIPS incentivized private sector investment in agricultural research and development, particularly in hybrid seeds and biotechnology. Companies were encouraged to develop new varieties knowing their intellectual property would be protected.
  • Improved Seed Availability (Hybrid Seeds): The protection afforded by PBR led to the introduction of more high-yielding hybrid seeds, boosting agricultural productivity in certain crops.
  • Recognition and Protection of GIs: The TRIPS agreement facilitated the registration and protection of Indian GIs like Basmati rice and Darjeeling tea, enhancing their market value and preventing misrepresentation. As of 2023, India has 430 registered GIs.

Negative Impacts

  • Increased Seed Costs: PBR led to higher seed prices as companies sought to recoup their R&D investments. This increased the cost of cultivation for farmers, particularly small and marginal farmers.
  • Reduced Seed Saving & Farmer’s Rights: The restrictions on seed saving and exchange imposed by PBR undermined traditional farming practices and threatened farmer’s rights to save, use, sow, re-sow and exchange seeds.
  • Dependence on Foreign Companies: The patenting of genetically modified (GM) seeds by multinational corporations increased India’s dependence on foreign companies for seed supply.
  • Challenges to Traditional Knowledge: The patenting of traditional knowledge and bio-resources (biopiracy) posed a threat to India’s rich agricultural heritage. The Neem patent case (revoked in 2005) is a prime example.
  • Impact on Access to Technology: The cost of patented technologies, including GM crops, was often prohibitive for Indian farmers, limiting their access to advanced agricultural technologies.

India’s Response and Policy Measures

India adopted a sui generis system for plant variety protection through the Protection of Plant Varieties and Farmers’ Rights (PPVF) Act, 2001. This Act aims to balance the interests of plant breeders and farmers. Key features include:

  • Registration of Plant Varieties: The Act provides for the registration of new, distinct, stable, and uniform plant varieties.
  • Farmers’ Rights: It recognizes the rights of farmers to save, use, sow, re-sow, and exchange seeds of registered varieties.
  • Benefit Sharing: It provides for benefit sharing with farmers and local communities for their contributions to the development of plant varieties.

India also utilized flexibilities within the TRIPS agreement, such as compulsory licensing, to ensure access to essential medicines and technologies. Furthermore, India has actively participated in WTO negotiations to advocate for the interests of developing countries in the context of TRIPS.

The Case of Bt Cotton

The introduction of Bt cotton, genetically modified to resist bollworms, is a significant example of the TRIPS impact. While Bt cotton increased yields and reduced pesticide use initially, it also led to increased seed costs and dependence on multinational seed companies like Mahyco-Monsanto. The debate surrounding Bt cotton highlights the complex trade-offs between technological innovation, farmer welfare, and intellectual property rights.

Aspect Pre-TRIPS Post-TRIPS
Seed Industry Dominated by public sector and informal seed systems Increased private sector participation, focus on hybrid and GM seeds
Seed Prices Relatively low Increased, particularly for protected varieties
Farmer’s Rights Traditional rights to save and exchange seeds widely practiced Rights recognized under PPVF Act, but constrained by PBR
R&D Investment Limited private sector investment Increased private sector investment in agricultural biotechnology

Conclusion

The TRIPS Agreement has had a complex and often contradictory impact on Indian agriculture. While it has stimulated investment in agricultural R&D and facilitated the introduction of new technologies, it has also raised concerns about seed costs, farmer’s rights, and dependence on foreign companies. India’s PPVF Act represents an attempt to balance the interests of plant breeders and farmers, but its effectiveness remains a subject of debate. Moving forward, it is crucial for India to strengthen its sui generis system, promote public sector research, and advocate for a more equitable and balanced TRIPS framework that prioritizes the needs of small and marginal farmers and protects its agricultural biodiversity.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Sui Generis
A Latin term meaning "of its own kind." In the context of TRIPS, it refers to a system of intellectual property rights tailored to the specific needs of a country, rather than adopting a standardized approach.
Biopiracy
The act of exploiting biological resources or traditional knowledge without providing fair compensation or recognition to the communities that have conserved and developed them.

Key Statistics

India is the largest producer of spices in the world, accounting for over 50% of global production (APEDA, 2023).

Source: Agricultural and Processed Food Products Export Development Authority (APEDA)

India’s agricultural sector contributes approximately 18.8% to the country’s GDP (Economic Survey 2022-23).

Source: Economic Survey 2022-23

Examples

Basmati Rice GI

The registration of Basmati rice as a Geographical Indication (GI) in 2016 has helped to protect its authenticity and prevent the sale of inferior quality rice under the Basmati name, boosting exports and farmer incomes.

Frequently Asked Questions

What is compulsory licensing under TRIPS?

Compulsory licensing allows a country to authorize the production of a patented product without the patent holder’s consent, typically in cases of public health emergencies or to address anti-competitive practices. It’s a flexibility built into the TRIPS agreement.

Topics Covered

EconomyInternational RelationsTrade PolicyAgricultureIntellectual Property