India's crop insurers seek data protection law to expedite farm innovation

Five of India's leading crop insurers have united to urge the government to incorporate a data protection provision in the forthcoming Pesticides Management Bill, 2025. This development aims to hasten the introduction of novel, safer pesticide molecules into the nation. The request, made in a joint statement by Crystal Crop Protection, Rallis India, Dhanuka Agritech, PI Industries, and Godrej Agrovet, all members of the CropLife India industry body, demands a five-year data protection window commencing from the initial registration of a new molecule or new use.

Under the proposed PRD (protection of regulatory data) framework, the entity generating the safety, efficacy, and residue data required for registration would possess exclusive access to that data for a specified period. Following this time-bound window, the molecule would become accessible to the broader industry, encompassing generic manufacturers and small and medium enterprises.

Industry executives contend that the current financial burden discourages participation in developing new chemistry in India. Registering a new molecule requires an estimated Rs 40-50 crore and spans six to eight years of local trials, but without data protection, a subsequent applicant could access the same data within a year for approximately Rs 75 lakh.

The companies argue that this limited window would restore the incentive for innovation, and upon expiry, the molecule would open up to the entire industry, with no impact on already registered products.

The companies, referencing a CropLife India-Yes Bank knowledge report, highlight that India loses 10-35 percent of its farm output annually, amounting to roughly Rs 2 lakh crore, due to pests, weeds, and diseases. Resistance and climate-driven shifts in pest patterns further emphasize the urgency of introducing newer, lower-dose molecules.

Moreover, India has registered only 380 out of the approximately 1,200 pesticide molecules in use worldwide, a deficiency that diminishes both agricultural productivity and the competitiveness of India's agrochemical exports, which necessitate advanced chemistry to meet stringent residue limits in international markets.

The industry also emphasizes two lesser-known advantages: preventing the registration of hundreds of identical molecules for a single product, which drives prices down to levels encouraging overuse and counterfeit products, and channeling more research efforts, including stewardship and resistance management, into Indian laboratories and field stations.

Comparing international practices, the companies note that China offers six years of data protection and is now the world's largest agrochemical exporter, while Thailand, Brazil, and the United States provide up to ten years, and the European Union extends the period to thirteen years for low-risk and biological products. Currently, India lacks any such provision.