Liability and Compensation:

The Protection of Plant Varieties and Farmers' Rights Act (2001) provides a liability clause. The cost of GM seeds being high, farmers will get indebted if crops fail. A special insurance scheme for GM crops may therefore be devised and introduced by the Ministry of Agriculture. There is a need to explore the possibility of the seed company selling GM seeds providing farmers with an insurance cover, so that they may get some relief if crops fail. Switzerland adopted in 2003 a Gene Technology Law with a strong liability regime. A similar procedure may be advisable since a vast majority of farmers in India have smallholdings with no or poor risk taking capacity. A Technical Task Force may be set up by DAC for developing an insurance system for GM crops and animals. Companies selling GM seeds to small and marginal farmers should also provide them with insurance cover. An insurance system for GM crops needs to be developed speedily, so that small farmers who take institutional credit for buying expensive seeds do not suffer in case of crop failure. An integrated GM Seed-cum-Crop Insurance System will help to ensure that desirable new technologies confer benefits to resource poor small farm families.