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National Biodiversity Authority Disburses Rs 5.68 Crore under ABS Mechanism

On August 30, 2026, the National Biodiversity Authority (NBA), operating under the Ministry of Environment, Forest and Climate Change, disbursed Rs. 5.68 crore under the Access and Benefit-Sharing (ABS) mechanism. These funds, collected from corporations utilising India's biological resources like Okra, Cucumber, and micro-organisms, were distributed to State Biodiversity Boards (SBBs), Union Territory Biodiversity Councils (UTBCs), and a CSIR research institute. This highlights India's operationalisation of the Nagoya Protocol, ensuring that commercial profits derived from biodiversity are channelled back into local ecosystem conservation, maintaining People's Biodiversity Registers (PBRs), and rewarding cultivating states.

What Happened

On August 30, 2026, the National Biodiversity Authority (NBA) disbursed Rs. 5.68 crore collected under the Access and Benefit-Sharing (ABS) mechanism. This fund was generated from commercial entities utilizing Indian biological resources. The money was distributed to various State Biodiversity Boards, Union Territory Councils, and CSIR-National Chemical Laboratory for grassroots conservation efforts.

When & Where

The announcement was made by the PIB in New Delhi on August 30, 2026. The disbursement impacts 32 State Biodiversity Boards and Union Territory Biodiversity Councils across India, with Gujarat and West Bengal receiving the maximum shares.

Who Is Involved

  • National Biodiversity Authority (NBA): The central statutory body that collected and distributed the ABS funds.
  • Ministry of Environment, Forest and Climate Change (MoEFCC): The nodal ministry under which the NBA functions.
  • M/s. Nunhems India Pvt. Ltd.: The corporate entity that paid the largest ABS share (Rs. 3.51 crore) for utilizing Okra.
  • Hindustan Petroleum Corporation Ltd. (HPCL): Paid ABS funds for utilizing specific microbial resources.
  • CSIR-National Chemical Laboratory (NCL), Pune: Received funds to support research and repository maintenance.

How It Works

1. A corporate entity wishes to access India's biological resources (like Okra varieties or microbes) for commercial utilization or research.
2. The entity applies to the NBA and pays an Access and Benefit-Sharing (ABS) fee based on their commercial gains.
3. If the resource's origin is traced to a specific community, the funds are given directly to them.
4. If accessed from general markets (as in this event), an Expert Committee recommends distributing the money among the States/UTs where the crop is traditionally cultivated.

Why It Matters

  • Environmental Impact: The funds are legally bound under Section 32 of the Biological Diversity Act to be used for restoring degraded ecosystems and protecting wild plant relatives.
  • Governance Impact: It strengthens the financial autonomy of State Biodiversity Boards to maintain the critical People's Biodiversity Registers (PBRs).
  • Economic Relevance: It establishes a working model of "green capitalism" where commercial exploitation directly funds rural conservation activities.

Historical Background

  • 1992: India became a signatory to the UN Convention on Biological Diversity (CBD) at the Earth Summit in Rio.
  • 2002: The Parliament enacted the Biological Diversity Act to fulfill India's commitments under the CBD.
  • 2003: The National Biodiversity Authority was formally established as a statutory body in Chennai.

Previous Related Events

  • August 2023: Parliament passed the Biological Diversity (Amendment) Act, 2023, which decriminalised certain offences and eased compliance for the AYUSH sector.
  • December 2022: At COP15 in Montreal, the Kunming-Montreal Global Biodiversity Framework was adopted to halt biodiversity loss by 2030.
  • May 2023: The MoEFCC launched a nationwide campaign to complete the documentation of People's Biodiversity Registers in every gram panchayat.

Static GK Connection

  • Section 32 of the Biological Diversity Act, 2002: Dictates that the National Biodiversity Fund must be applied to channel benefits to the conservers of biological resources.
  • Article 48A (DPSP): Directs the State to protect and improve the environment and safeguard the forests and wildlife of the country.

India & World Comparison

India was one of the first mega-diverse nations to implement a robust, statutory ABS mechanism through the Biological Diversity Act of 2002. While many developing countries struggle to legally compel multinational corporations to pay for genetic resources, India's NBA has established a functioning regulatory network across 32 states and UTs to enforce these payments.

Future Impact

  • State Boards will use this Rs. 5.68 crore corpus to immediately update outdated People's Biodiversity Registers at the village level.
  • It will set a precedent for stricter ABS compliance from the agricultural seed industry and biotechnology firms in the 2026-2027 fiscal year.
  • Funding for Biodiversity Heritage Sites will increase, accelerating their development and legal protection.

🔑 Key Points for Revision

  • NBA disbursed Rs. 5.68 crore under the ABS mechanism on 30 August 2026.
  • ABS stands for Access and Benefit-Sharing, arising from biological resource utilization.
  • Largest share (Rs. 3.51 crore) was for Okra (Abelmoschus esculentus).
  • M/s. Nunhems India Pvt. Ltd. paid the ABS amount for utilizing Okra.
  • Biological resources included Okra, Cucumber (Cucumis sativus), and Watermelon.
  • Gujarat received the maximum state share (Rs. 88.79 lakh), followed by West Bengal.
  • ABS funds from HPCL were disbursed to CSIR-National Chemical Laboratory (NCL), Pune.
  • Funds are utilised as per Section 32 of the Biological Diversity Act, 2002.
  • Utilisation includes updating People's Biodiversity Registers (PBRs).
  • Distribution modality targets states where the crop is cultivated when exact farmers are unknown.
  • The Biological Diversity Act was enacted in 2002 to meet CBD obligations.
  • The NBA operates under the Ministry of Environment, Forest and Climate Change.
  • The Nagoya Protocol internationally governs the ABS framework.
  • SBBs and UTBCs are the primary executing bodies at the state level.
  • Section 32 also covers the protection of wild relatives of cultivated plants.

đź§  Concept Link (Static GK Deep Dive)

Core Concept: Access and Benefit-Sharing (ABS) Mechanism

  • Definition: ABS is a framework ensuring that the monetary and non-monetary benefits derived from commercializing biological resources are fairly shared with the communities that conserved them.
  • Constitutional / Legal Basis: Section 21 and Section 32 of the Biological Diversity Act, 2002.
  • Scientific / Economic Principle: Bioprospecting and ecological economics — preventing "biopiracy" by monetizing indigenous genetic wealth.
  • How it connects to this event: The NBA successfully collected fees from corporations using Okra and microbes, distributing them back to cultivating states.
  • Origin & History: Originated from the UN Convention on Biological Diversity (CBD) in 1992.
  • Key milestone 1: Enactment of the Biological Diversity Act, 2002 in India.
  • Key milestone 2: The adoption of the Nagoya Protocol in 2010 globally, which specifically governs ABS.
  • Related Acts / Schemes / Treaties: Protection of Plant Varieties and Farmers' Rights (PPV&FR) Act, 2001; UN CBD.
  • Nodal Ministry / Body: National Biodiversity Authority (NBA) under MoEFCC.
  • India-specific relevance: India holds 8% of global biodiversity; ABS protects traditional agricultural knowledge from uncompensated corporate exploitation.
  • Global comparison: Highly advanced compared to African/Latin American nations, India actively prosecutes intellectual property theft of domestic seeds.
  • Data point: Gujarat was the highest beneficiary (Rs. 88.79 lakh) in the August 2026 ABS disbursement.
  • Common exam angle: UPSC frequently asks about the Nagoya Protocol, CBD, and the statutory powers of the NBA.
  • Easy memory hook: ABS = Access (Corporate) -> Benefit -> Sharing (Communities).

âť“ Practice MCQs

Q1. Under which act is the Access and Benefit-Sharing (ABS) mechanism governed in India? [Easy]

A) Environment (Protection) Act, 1986

B) Biological Diversity Act, 2002

C) Forest (Conservation) Act, 1980

D) Wildlife (Protection) Act, 1972

Answer: B

Explanation: The ABS mechanism is governed by the Biological Diversity Act, 2002, specifically its Sections 21 and 32 regarding fund utilization.


Q2. Which state received the highest allocation of funds from the NBA's Rs. 5.68 crore ABS disbursement in August 2026? [Easy]

A) Madhya Pradesh

B) West Bengal

C) Gujarat

D) Odisha

Answer: C

Explanation: Gujarat received the highest disbursement amount of Rs. 88,79,304 among all the states.


Q3. According to the recent NBA disbursement, which specific crop accounted for the largest component of the Access and Benefit-Sharing funds? [Moderate]

A) Cotton

B) Okra

C) Cucumber

D) Turmeric

Answer: B

Explanation: The largest ABS component (Rs. 3.51 crore) related to Okra (Abelmoschus esculentus), covering 139 varieties and 28 hybrids.


Q4. If biological resources are accessed from general markets and traders, making it impossible to trace the specific farmer, how does the NBA distribute the ABS funds? [Moderate]

A) The funds are entirely retained by the Central Government.

B) The funds are given only to the state where the corporate headquarters is located.

C) The funds are distributed among the States and UTs where the concerned resource is cultivated.

D) The funds are donated to international UN climate funds.

Answer: C

Explanation: The Expert Committee modality approves distributing the beneficiary share among the States and UTs where the crop is actively cultivated.


Q5. The funds disbursed to the State Biodiversity Boards must be utilized as per Section 32 of the Biological Diversity Act. Which of the following is an approved activity under this section? [Moderate]

A) Paying agricultural subsidies for chemical fertilizers

B) Updation of People's Biodiversity Registers (PBRs)

C) Constructing state legislative assembly buildings

D) Funding corporate CSR campaigns

Answer: B

Explanation: The funds are specifically to be utilized for conservation, including the documentation and updation of People's Biodiversity Registers.


Q6. Which national research institution received ABS funds in the August 2026 disbursement from the amounts collected from Hindustan Petroleum Corporation Ltd? [Tricky]

A) Indian Institute of Science (IISc), Bengaluru

B) CSIR-National Chemical Laboratory (NCL), Pune

C) National Botanical Research Institute (NBRI), Lucknow

D) Forest Research Institute (FRI), Dehradun

Answer: B

Explanation: CSIR-National Chemical Laboratory (NCL), Pune received funds from the ABS amount paid by Hindustan Petroleum Corporation Ltd.


Q7. Consider the disbursement of ABS funds by the National Biodiversity Authority. Why did M/s. Nunhems India Pvt. Ltd. pay Rs. 3.51 crore to the NBA? [Tricky]

A) As a penalty for illegal biopiracy of turmeric

B) For utilizing India's Okra resources for commercial and hybrid development

C) As a mandatory corporate social responsibility (CSR) donation

D) To purchase carbon credits from the MoEFCC

Answer: B

Explanation: The ABS amount was received from M/s. Nunhems India Pvt. Ltd. in connection with its access to and commercial utilization of Okra varieties.


Q8. Which of the following biological resources was NOT explicitly mentioned as a primary contributor to the Rs 5.68 crore ABS disbursement? [Tricky]

A) Citrullus lanatus (Watermelon)

B) Abelmoschus esculentus (Okra)

C) Azadirachta indica (Neem)

D) Cucumis sativus (Cucumber)

Answer: C

Explanation: The press release specifically mentioned Okra, Cucumber, and Watermelon; Neem was not part of this specific fund disbursement.


📜 Previous Year Question Style (PYQ)

PYQ 1:

With reference to the Biological Diversity Act, 2002, who among the following is responsible for maintaining the People's Biodiversity Registers (PBRs) at the local level?

A) The National Biodiversity Authority

B) Biodiversity Management Committees (BMCs)

C) The State Forest Departments

D) The Ministry of Agriculture

Answer: B

Explanation: While the recent ABS funds are given to SBBs to update PBRs, the actual preparation and maintenance of PBRs at the panchayat level is the mandate of local Biodiversity Management Committees (BMCs).


PYQ 2:

Consider the following statements regarding the Access and Benefit-Sharing (ABS) mechanism in India:

1. It applies exclusively to the commercial utilization of animal genetic resources, exempting plant varieties.
2. The National Biodiversity Authority (NBA) is the nodal agency for collecting ABS fees from corporate entities.
3. Funds collected under ABS can be distributed to State Biodiversity Boards if the exact geographic source of the crop cannot be traced to a single farmer.

Which of the above statements is/are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) All of the above

Answer: B

Explanation: Statement 1 is incorrect as ABS heavily applies to plant resources (like Okra and Cucumber). Statements 2 and 3 are correct as per the operational guidelines of the NBA.


PYQ 3:

Assertion (A): When commercial entities procure biological resources directly from market traders, the NBA distributes the Access and Benefit-Sharing (ABS) funds among the states where that resource is cultivated.

Reason (R): It is practically not feasible to trace market-procured biological resources back to a specific individual farmer or a single identifiable geographic source.

Select the correct code:

A) Both A and R are true and R is the correct explanation of A.

B) Both A and R are true but R is not the correct explanation of A.

C) A is true but R is false.

D) A is false but R is true.

Answer: A

Explanation: The NBA relies on cultivating states for distribution exactly because market sourcing prevents identifying the specific grassroots origin, making R the correct explanation for A.


✍️ Mains Answer Pointers

Question 1 (150 words): The Access and Benefit-Sharing (ABS) mechanism is a crucial tool against biopiracy. Discuss its significance in light of the recent Rs. 5.68 crore disbursement by the National Biodiversity Authority.

Answer: The Access and Benefit-Sharing (ABS) mechanism, enshrined in the Biological Diversity Act, 2002, ensures that the commercial exploitation of India's genetic wealth translates into tangible rewards for local ecosystems. The recent disbursement of Rs. 5.68 crore by the National Biodiversity Authority (NBA) underscores the operational success of this framework. By collecting fees from corporations like Nunhems India Pvt. Ltd. (Rs. 3.51 crore for Okra varieties) and distributing them to 32 State and UT Biodiversity Boards, the NBA has established a robust pipeline for environmental finance.

This financial return mechanism serves two key purposes: it actively deters unchecked biopiracy, and it provides vital capital for updating People's Biodiversity Registers (PBRs) and restoring degraded habitats as mandated under Section 32. Going forward, standardizing ABS guidelines for more crops and streamlining corporate compliance will further empower local Biodiversity Management Committees, making biodiversity conservation a self-sustaining economic model.


Question 2 (250 words): Critically analyze the role of the National Biodiversity Authority (NBA) in balancing commercial biotechnology interests with grassroots ecological conservation. How does the distribution of the ABS fund reflect the challenges of tracing biological resources in a market economy?

Answer: The National Biodiversity Authority (NBA), functioning under the Ministry of Environment, Forest and Climate Change, acts as the primary gatekeeper of India's biological resources. Its core mandate is to balance the rapid expansion of biotechnology and commercial agriculture with the rights of indigenous communities and the health of local ecosystems. The recent disbursement of Rs. 5.68 crore in Access and Benefit-Sharing (ABS) funds highlights the NBA's success in enforcing this mandate. By legally compelling corporations utilizing resources like Okra and Cucumber to pay equitable fees, the NBA ensures that commercial profits do not bypass the environment that produced them.

However, the distribution modality exposes a structural challenge in a complex market economy. When corporations purchase raw biological resources from wholesale markets, tracing the exact genetic material back to a specific farmer or village is virtually impossible. To resolve this, the NBA has adopted a pragmatic approach: distributing the funds among the States and Union Territories (such as Gujarat receiving Rs. 88.79 lakh) where the crop is traditionally cultivated.

While this ensures that the money is reinvested into conservation activities—such as developing Biodiversity Heritage Sites and maintaining People's Biodiversity Registers under Section 32 of the Biological Diversity Act—it slightly dilutes the direct reward mechanism for individual conserving farmers. Moving forward, integrating blockchain or digital supply chain tracking into agricultural markets could help the NBA pinpoint exact genetic origins, thereby ensuring that ABS funds reach the exact grassroots communities rather than stopping at the State Board level.


⚠️ Examiner Trap

  • Trap 1: Students often confuse the international protocols. The correct fact is that the Nagoya Protocol governs Access and Benefit-Sharing (ABS), while the Cartagena Protocol governs living modified organisms (LMOs). Do not mix them up.
  • Trap 2: A common wrong assumption is that ABS funds can be used for general state revenue or infrastructure. The reality is that under Section 32 of the Biological Diversity Act, they are strictly earmarked for biodiversity conservation, ecosystem restoration, and updating People's Biodiversity Registers.
  • Trap 3: Many students miss the modality of fund distribution when the source is untraceable. Always remember that if a resource is bought from a general market, the NBA distributes the money among all states where the crop is cultivated, not just to the state where the corporate entity is headquartered.

đź§­ Exam Tip

For Prelims, examiners love asking about the parent protocol (Nagoya Protocol), the parent ministry (MoEFCC), and the specific Section 32 of the Biological Diversity Act. For Mains, use this Rs 5.68 crore disbursement as a concrete, current case study in GS Paper 3 (Environment/Biodiversity) to prove that India's ABS mechanism is functional and generating revenue. In Interviews, if asked about "biopiracy," cite the corporate payments for Okra (Nunhems) and microbes (HPCL) as positive examples of regulated "bioprospecting" instead of illegal biopiracy. Expect a high-probability question in upcoming exams on the role of State Biodiversity Boards in maintaining People's Biodiversity Registers (PBRs).