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Agri Biotech on Fast Track in India
The Economic Times, July 27, 2007

NEW DELHI: Riding on the success of Bt cotton, agriculture biotechnology has emerged as one of the fastest growing biotech industries in India in recent years, a latest report of the U.S. Department of Agriculture (USDA) has said.

"It is the third largest contributor among various biotech sectors with total revenues of more than $229 million in 2006-07 fiscal, registering a growth of 55 percent," the report said.  Export revenue from agriculture biotechnology has grown to $11.6 million in 2006-07 from around $8 million in the previous year, it added. The report, titled India Biotechnology and prepared by Santosh Kumar Singh, claimed Bt cotton coverage has surged over the past five years to cover 70 percent of total cotton area in 2007.

However, according to data available with the agriculture ministry, Bt cotton acreage stood at 24.4 lakh hectares1, out of a total of 72.3 lakh hectares2 covered under cotton, till the week ended July 20 in the on-going Kharif season.  The USDA report said the continuing legal issues pertaining to the pricing of Bt cotton seed are likely to be detrimental to technology transfer and foreign direct investment in India’s biotechnology sector.  The report alleged that the regulatory process governing the biotechnology sector is not entirely science-based.  "The regulatory process, which is still evolving, is not entirely science-based," it said.

The Environmental Protection Act of 1986 lays the foundation for India’s biotechnology regulatory framework, which involves a hierarchy of monitoring committees, it added. Commenting on import policy, USDA said India’s trade policy stipulates that imports of all biotech food and agricultural products, or products derived from biotech plants or organisms, should receive prior approval from the Genetic Engineering Approval Committee (GEAC).

"The only biotech product approved for commercial imports by India so far is soybean oil derived from Roundup Ready soybeans for consumption after refining," it said, adding agricultural trade balance is almost 3:1 in India’s favor.  "U,S, exports to India estimated at $365 million and India’s exports to the US at $1.04 billion in 2006," the report said.

Agricultural trade between the U.S. and India reached a record $1.4 billion in 2006, which excludes fish and forest products, it added.  India’s major agricultural exports to the U.S. include cashew, sugar, spices, essential oils, processed horticultural products, rice, tea and castor oil, while U.S. exports to India are almonds, cotton, fresh fruits, pulses, soybean oil, processed horticultural products and other consumer food products.

Editor’s Notes:

1 24.4 lakh hectares = 2.4 million hectares or 6.1 million acres

2 72.3 lakh hectares = 7.2 million hectares or 18 million acres