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Study on royalty payment and plant breeder's rights in Indian floriculture


The Netherlands
May 9, 2025

Plants Breeder’s Rights (PBR) and royalty payments are the primary source of revenue for breeders. These mechanism are essential for incentivizing innovations enabling development of new varieties. Apart from aesthetic values, the new varieties are also resilient to the climate change. However, PBR  and royalty payments are often overlooked as the focus shifts to production and immediate market needs. When breeder’s rights are  not properly valued, it hampers innovation and prevents floriculture sector from reaching its full potential.
 

Nursery in IndiaPhoto taken at KP Bioplants, Pune
 

In India, the concepts of PBR and royalties was virtually absent until the late 1980s. The 1988 Seed Development Policy improved access to quality plant material but failed to convey the significance of these concepts, as the focus remained on domestic markets. With the rise of export-oriented floriculture in the 1990s, royalty payments were viewed as an added cost without recognizing their true value. Despite the 2001 Protection of Plant Varieties and Farmers’ Rights Act (PPVFRA), which aimed to protect breeders' rights, the lack of alignment with the international UPOV system led to skepticism abroad and limited access to new varieties. This has resulted in widespread unauthorized propagation of imported plant material.

Indian floriculture sector holds significant promise – both in terms of volumes and quality of produce. The country offers a cost effective solutions when it comes to diversification of production and supply chain. However, there is a hesitance on the side of global breeders including Dutch stakeholders towards introducing their newest varieties in the India due to their concerns about the payments of royalties and breeders rights. This has contributed to a stagnancy that is stopping Indian Floriculture sector from realizing its fullest potential.

Against this backdrop, the Embassy of the Kingdom of the Netherlands in India commissioned a study on the royalty payments and breeder’s rights in Indian floriculture sector. The report of this study has been compiled after thorough consultation with stakeholders and sectorial experts from across global floriculture value-chain. The report documents diverse perspectives and offers a comprehensive problem-statement for enabling the floriculture sector in India.

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Published: May 9, 2025