Pesticide industry opposes Maharashtra draft Bill on aid to farmers

Leading pesticide manufacturers and formulators have opposed the Maharashtra government’s draft Bill seeking to provide compensation to farmers for incurring financial losses due to the use of adulterated and spurious seeds, insecticides and fertilisers, saying it will lead to unfair claims and put genuine suppliers to excessive checks and scrutiny.

Following incidents of the use of adulterated insecticides, seeds and fertilisers causing financial losses to farmers, the Maharashtra government introduced the draft Bill to make provisions for special compensation to farmers.

They argue that if the legislation is enacted and implemented, farmers and end-users of insecticides and pesticides will claim compensation from manufacturers without following agricultural practices and guidelines for the safe and judicious use of pesticides.

The draft Bill has been put up for public consultation by the state government.

“Though the intention (of the draft Act) is to control spurious and substandard suppliers of agriculture inputs, fear is only genuine manufacturers are likely to be subjected to checks and analysis,” they said in a memorandum.

Unfair claims will lead to probes of the industries in the state, they said.

The memo suggests that while sternest punishment should be reserved for offenders, there is no need for a separate piece of legislation for guaranteeing compensation to farmers.

“The proposed Act puts all liabilities upon a manufacturer of insecticides but fails to account for situations where a liability rises due to factors beyond the control of the manufacturer,” it said.

The draft Maharashtra Payment of Compensation to Farmers (for loss caused due to adulterated, non-standard or misbranded seeds, fertilisers, or insecticides) Act, 2023 says separate legislation is proposed because producers, manufacturers, distributors, dealers and sellers are engaged in production, manufacture, distribution or sale of adulterated, non-standard or misbranded seeds, fertilisers or insecticides for making quick money.

This happens due to lenient punishments provided by existing legislation, it said.

The draft also says that the existing Seeds Act, 1966 (54 of 1966), the Insecticides Act, 1968 (46 of 1968) and the Essential Commodities Act, 1955 (10 of 1955) do not contain provisions for payment of compensation for the losses incurred by the farmers due to use of these adulterated and spurious products.

“The government, therefore, considers it expedient to make a new law to provide compensation to the farmers for such losses caused to them, by making the producers, manufacturers, distributors, dealers and sellers of adulterated, non-standard or misbranded seeds, fertilisers or insecticides, liable for payment of compensation,” the draft reads.

Apart from the farmers’ compensation draft, the pesticides industry has also objected to the amendments proposed in the section 29 of the Insecticides Act of 1968 and the draft bill to amend the Essential Commodities Act. The industry said that the proposed amendments will end up treating insecticide companies and workers as criminals.

What the Act says

The draft Maharashtra Payment of Compensation to Farmers (for loss caused due to adulterated, non-standard or misbranded seeds, fertilizers or insecticides) Act, 2023, proposes to enact a separate legislation to compensate the farmers for loss caused by the producers, manufacturers, distributors, dealers and sellers of adulterated, non-standard or misbranded seeds, fertilizers, or insecticides. The existing Seeds Act, 1966 (54 of 1966), the Insecticides Act, 1968 (46 of 1968) and the Essential Commodities Act, 1955 (10 of 1955) do not contain provisions for payment of compensation in such cases. The penal provisions are also lenient for such offences.