Telangana: Pesticide manufacturers fault new Bill

Small and medium pesticides manufacturers have found fault with the draft Pesticides Management Bill - which was recently released by the Central government for comments by stakeholders - as it did not mention the need for compulsory technical registration within the country for imported, ready-made pesticide formulation.

In the absence of registration of formulations to check pesticides for technical grading, foreign companies may have a free run in the Indian market, they said. These companies enjoyed complete monopoly and earned huge profit margins ranging from 200% to 400%, said M. Raja Mahender Reddy, president, Confederation of All India Small and Medium Pesticides Manufacturers Association.

Accompanied by Pradip Dave, president, Pesticides Manufacturers and Formulators Association of India and other leaders of the industry, he addressed a press conference here on Monday, saying both UPA and NDA governments have adopted flawed policies to allow registrations for import of ready made pesticide formulations without registering the technical grade material used in the formulations.

The policy framework designed in 2007 gave total monopoly to importers - mainly multinationals - to charge exorbitant prices from farmers and restricting entry of Indian manufacturers.

It was seen that the price a domestic product cost ₹3,000 less per kilolitre when compared to imported formulations. The Indian companies were allowed to enter the market after court intervention, they said.

The manufacturers said the Pesticides Management Bill did not clarify definitions and registration procedures for pesticide formulations, along with technical grade products. This meant harassment of manufacturers and traders would continue, they said. The new legislation did not make any fundamental departure from Insecticides Act, 1968, which is in vogue, as far as formulations were concerned.