Netherlands Embassy hosts Stakeholder Consultation on breeders' rights in Indian floriculture

The Netherlands Embassy's agriculture network in India held a Stakeholder Consultation to verify the preliminary findings of their study on royalty payments and breeders' rights in Indian floriculture. This consultation took place on March 21st at KF Bioplants' facility in Pune.

The consultation was conducted in a hybrid format and featured active participation from key international stakeholders, including breeders, growers, industry representatives, retailers, and floriculture start-ups. Participants also included representatives from government agencies such as the PPVFRA (Government of India) and Naktuinbouw, as well as trade bodies and intellectual property rights advocates like GFCI, CIOPORA, AIPH, Plantum, and Royalty Administration International. Additionally, research and development institutes like the ICAR Directorate of Floriculture and the ICAR National Research Centre for Orchids took part in the discussions.

© Embassy of the Netherlands in New Delhi

The program facilitated open discussions and showcased a variety of perspectives, addressing requirements, challenges, and potential solutions for the effective implementation of plant breeders' rights to benefit the Indian floriculture sector. This consultation represents a crucial step towards enhancing the study's comprehensiveness and relevance.

Major take-aways
The major takeaways from the findings included a low awareness about the importance and appreciation of breeders' rights and royalty payments among various stakeholders in the floriculture sector. Once regarded as a sunrise industry in Indian agriculture, floriculture is now on the decline with relatively limited government support. Despite this, India remains a significant market for floriculture, attracting major breeders to distribute their products. The quality of produce generated is high, instilling confidence among growers. More than 80% of the produce is targeted for the domestic market, with limited exports on popular occasions (e.g., Valentine's Day) to countries in the Middle East and APAC region, where the varieties may not be protected.

The problem of illegal multiplication and non-payment of royalties is more prevalent in roses, while royalties seem to be paid for other crops like gerbera, carnation, chrysanthemum, seed-propagated crops, and ornamental plants. A major issue faced by growers due to non-payment of royalties is the lack of access to new varieties in several crops. It was considered easier to monitor propagated plants compared to harvested produce (flowers). The present regulatory system could be further improved to enhance enforcement in cases of infringements.

© Embassy of the Netherlands in New Delhi

Recommendations
Among the recommendations discussed and accepted were the need to create awareness through specially designed and tailored programs or modules for different stakeholder groups. It was also suggested to organize meetings between international IPR-related organizations and the Indian government to develop terms of bilateral understanding. Promoting foreign breeders to register their varieties in India for better protection was another key recommendation. Additionally, it was proposed that breeders should negotiate their royalty payment terms with propagators and not directly with growers or producers.

© Embassy of the Netherlands in New Delhi

Further recommendations included encouraging other state governments to adopt the system proposed by Karnataka for appointing propagators and distributing legally propagated planting materials with subsidies to growers. There was also an emphasis on encouraging growers to gain exposure to global floriculture through visits and participation in international meetings. Strengthening the regulatory system with enhanced legal powers to protect against infringements was highlighted as crucial. Lastly, enabling a sustainable floriculture system by curbing imports of artificial flowers (plastic) to discourage the use of chemicals and plastics was recommended.

In the discussions that followed the presentation of findings and recommendations, it was stressed that the Indian regulatory system, though not aligned with UPOV was an effective IPR system/regime. Problems existed also with the plant quarantine department with regard to the import of new types, speeding up PRA process, enforcement of additional declarations, etc. and testing of public varieties will inculcate an understanding of the relevance of IPR.

About the 'Study on Royalty Payment and Breeders' rights in Indian Floriculture'
In India, awareness of plant breeder rights and royalty payments was limited until the late 1980s. The 1988 Seed Development Policy improved access to quality plant materials, but the significance of these concepts remained largely unrecognized as the focus continued to be on domestic markets. With the emergence of export-oriented floriculture in the 1990s, royalty payments were often seen as an additional cost rather than being appreciated for their true value. Although the 2001 Protection of Plant Varieties and Farmers' Rights Act (PPVFRA) was introduced to safeguard breeders' rights, its lack of alignment with the international UPOV system resulted in skepticism abroad and restricted access to new varieties. For India's floriculture sector to flourish, it is essential for all stakeholders to fully understand and appreciate the value of plant breeder rights and royalty systems, thereby enhancing the uniqueness and quality of plant materials.

© Embassy of the Netherlands in New Delhi

The agriculture network of the Netherlands Embassy in India has commissioned a study on royalty payments and breeders' rights in the Indian floriculture sector. The goal is to gain a deeper understanding of Plant Breeders' Rights (PBR) and royalty payments and to identify ways to enhance their implementation.

The study aims to offer a comprehensive overview of PBR and royalty payments within the Indian floriculture industry. Its primary objectives include identifying barriers to the effective implementation of breeders' rights and royalty payments and proposing solutions to improve the current system.

As part of the study, insights from key stakeholders in the floriculture sector regarding plant breeders' rights and royalty payments have been gathered and analyzed. The findings of this study on Royalty Payments and Plant Breeders' Rights in Indian Floriculture are expected to be released to the public by late April to early May 2025.