SEA questions applicability of Biodiversity Act, 2002 on soybean in Madhya Pradesh

PUNE: The Solvent Extractors Association ( SEA) has questioned applicability of the Biodiversity Act, 2002 on soyabean in Madhya Pradesh. Some soyabean extractors have received notices from the Madhya Pradesh State Biodiversity Board to the effect that soybean processing industry is falling within their purview, and therefore they have to pay 2 per cent of the sales turnover or gross revenue to the M.P. State Biodiversity Board, otherwise appropriate legal action will be initiated against them by the Board.

Vijay Data, president, SEA said in a release, "As per the opinion received from eminent legal counselors / advisors, the provisions of the Biodiversity Act, 2002 is not applicable to Soyabean. The demand for 2 per cent amount of sales turnover runs into crores of rupees and will adversely affect the survival of our member units in M.P."

"It is notable that the Biodiversity Act is a central legislation and no other State in India is demanding such amounts from the solvent extraction units in the states. It is pertinent that the solvent extraction industry is a processing industry with a very thin profit margin. Under such circumstances the demanded amount of 2 per cent imposed on these units will result into acute financial hardship on them and their said products will become commercially nonviable. This will ultimately adversely affect the farmers, soyabean crop as well as the economy of M.P. State as a whole," stated the release.

In view of this SEA has taken up this issue with the Central Government and requested to issue directions to M.P. State Biodiversity Board to drop the impugned notices, issued to solvent industry in M.P.