Agriculture Governance : Biotechnology Context Hyderabad December C Ravishankar Director, Monsanto India

Biotechnology as one means to an end Producing More 2X yields in our core crops by 2030 Breeding Biotechnology Agronomy Conserving More 1/3 rd lesser resources per unit (land, water,energy) N2 use efficiency H 2 O use efficiency Pest Management Improving Lives Help farmers improve quality of life Diets Education Vibrant local economy

Holistic R&D to create systems of solutions…

…using a spirit of partnership

Governance At the risk of repetition All processes of governing, whether undertaken by a government, market or network, whether over a family, tribe, formal or informal organization or territory and whether through laws, norms, power or language

Key Objectives in Biotechnology Governance For whom the bell tolls ? Sustained yields as advertised Safe, Affordable Food Predictable Growth, Margins Climate, Biodiversity, Ecology

Industry has a vested interest in good governance You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time Abraham Lincoln …But can we rely only on rational self interest of corporates ? Farmers in India do not believe blindly in mass media advertising They do not even believe in claims made in person by companies They never ever adopt a new product on their entire acreage They try, experience, and gradually adopt innovations They rely on a fellow farmer / direct observation to decide on trials 40 years of Monsanto Experience in India

Different models of governance possible TOP DOWN Regulation of firm entry norms, R&D, new product introduction, operations, issue redress mechanisms, claim veracity Ad Hoc interventions to ostensibly protect a stakeholder group TOP DOWN Regulation of firm entry norms, R&D, new product introduction, operations, issue redress mechanisms, claim veracity Ad Hoc interventions to ostensibly protect a stakeholder group BOTTOM UP Farmer choice, supported by transparency of performance Consumer choice supported by fair, fact based information (not misinformation) Vigorous Competition Industry Self Regulation : Norms of Good Behavior Industry Ombudsman / Dispute Resolution Industry sponsored objective product assessments

Some desirables from regulation Let the rules be known, known clearly, at the outset Let not rules change often Alignment of centre and states… Avoid replication of what the market can do : weed out bad products and companies, regulate price Help market be efficient : create transparent objective performance measurement, reduce entry capital barriers, while preventing fly-by-night operators from entry Adopt clear rules for intellectual property protection, to be replicable (everyone interprets them the same way) Promote local innovation through government venture capital, large deals with owners of IP Create business models in non-hybrid seed markets Make in India – extend to food/fibre ! Can be biggest route to poverty alleviation Give farmers a level playfield, support on insurance, extension Predictability Complement to market mechanisms Promote fair innovation Think long-term Think long-term

THANK YOU ! & we would be happy to talk further !