Corporate Investment in Agriculture Research: Issues in Sustainable Development

The productivity of agricultural inputs has been consistently declining over last two decades. Given the economic squeeze, Indian economy cannot afford to provide resources required for such a non-sustainable use of inputs. Even in the affluent countries, the non-sustainability of external input oriented agriculture is being realised. The excessive use of pesticides and disruption of the ecological chain due to high residual toxicity and treadmill effect; imbalanced use of nutrients and consequent nutrient mining of soil; declining water tables, etc., are some of the early warning signals. Need for maintaining genetic diversity in different crops and thus fillip to national seed industry is another area of urgent concern. Increasing control of Multi-National Corporations in the agri-input industries is adversely affecting the indigenous incentives for R & D for development of eco-friendly technologies. We have done a survey of Indian agri-input companies to identify the patterns of investment in research within these companies and in public sector universities/institutes. The problems faced by small companies in pursuing R & D and getting support from agricultural universities are highlighted. Several areas of future research and policy modifications are discussed: (a) environmental scanning - how would debate on intellectual property rights in Europe affect the interests of Indian companies - large or small; What should be the role of public sector R & D institutions given global competitiveness and increasing role of private sector; (b) should a database on technological trends be developed for better forecasting and negotiation domestically and globally, (c) what type of fiscal incentives be provided for encouraging corporate sector to pursue R & D, particularly by the smaller companies, (d) should farmers cooperatives remain indifferent to R & D processes, should not cooperative federations invest in specific well defined R & D programmes, (e) how to support research on farm equipment by small artisans, private companies with the for hand tools or bullock, camel or tractor drawn implements. What type of banking support in required for investing in R & D (f) should seed companies not be allowed to lease or buy land for setting up research farms, (g) how should India stake its claim to intellectual property of people, pastoralists, horticulturists and the artisans, (h) can corporate sector build upon watershed projects in dry regions as sites for multi location testing of new technology in different agro climatic zones, (i) can private sector help in commercialization of publicly developed technologies with royalty payments to state, how to strengthen these links G) can farmers, breeders (livestock, crop, trees) association be involved in trilateral R & D arrangements with public and private organisations? (k) what should be the role of NGOs, (I) how should private companies share their profits with the people or communities whose technical innovations they have scaled up, (m) how should linkage between credit and technology be strengthened at different levels in the country particularly in high risk environments so that corporate sector is emboldened to invest in R & D.