How Not to draft a Law in 21st Century for Modern India?
How Not to draft a Law in 21st Century for Modern India ?
I have just finished reading and analyzing the existing and proposed law of Agro-chemicals recently with a question Why India cannot become major supplier to world in agro-chemicals because we have huge agriculture base and expertise to manage small farms.
Agro-chemicals
is more than USD 26 billion world market and India is one country which can do
wonders in chemicals like we have done in generic medicines.
The question is why it was not happening? Who is preventing this development?
The question is why it was not happening? Who is preventing this development?
When I was reading the existing
Insecticide Act 1968, based on 50 years old ideology, which was definite not a
progressive law and restricted the development of agro-chemical industry, prevent better technologies
and prevented competition, it was surprising and shocking to see the proposed new bill in-fact
is more regressive and control seeking bill.
Why law makers lack vision?
Why law makers lack vision?
Why I am placing this in public domain because since 2008 there was no serious debate in public on what should be our national policy for agriculture technologies.
Why India still imports formulations which can be made in India at half the price. Who is behind these restrict trade laws.
Why India still imports formulations which can be made in India at half the price. Who is behind these restrict trade laws.
This proposed Pesticide Management Bill in the year 2017 assumes a very flawed ideology
that except the administrators and inspectors, everyone else in this country has doubtful integrity
and poor or low level of competency.
It was shocking to see that in fact the proposed bill is
planning to take us backward in place of forward movement. This 2008 bill do
not reflect the ground reality of today, in fact it also lacks vision to make India a global power in this sector. Why our law makers have such outdated approach is beyond comprehension Or there is some external pressure working to keep Indian backward.
The fact is this bill will give more powers to inspectors and officers but will hurt investments and development in India. This bill is seeking Administrative power at the cost of nation building.
Who wants to come to India for investment with such a regressive regulatory mindset? After this bill, as a adviser to investors, I will prefer to suggest that don't invest in India and go outside India make products outside India and import into India, because law supports imports but not 'Make in India'.
Let
me share some glaring flaws in the bill when you compare with other countries those who are supplying to us as competitors.
Pl. read the slides carefully, to know all the facts.
Pl. read the slides carefully, to know all the facts.
Name of the bill itself highlights the mindset.
Scope of the bill conveys the hidden desire of the regulators - whether they want to control or they want development and investment.
Developed economy always trust stakeholders and inspectors are facilitators to meet the objective of the law.
Even country like China are more open to competition & investment & releasing controls, but we want more control and still we want to compete with China. We will fail ourselves with this proposed law.
Clarity and simplicity is the essence of law in Australia.
No country wants to regulate and control exports by law, but Indian law wants control on exports. Why?
Is this in line with Make in India?
Who is advising the government?
Should India law decide what other countries should buy from India? Is this logical.
How Indian authorities can decide efficacy of a product which will be used in other countries in their agro-climatic zones and with their ground reality where we have no access? Who are we to decide the quality related rules of other countries. Is this sensible approach?
Sorry to say, such clause don't exist anywhere in the world. It seems there is a motivation to control the exports under the influence of competitors of India to reduce India presence in world market & also to seek rent from exporters by inspectors. No one is addressing this issue in the government and this bill was proposed in Rajya Sabha.
Why Indian cannot do custom manufacturing if buyers is willing to use Indian companies for job work as per their own laws. Why proposed Bill wants to stop this and create hurdles. Duel use products under PIC list are anyway controlled under Exports Development Act of Ministry of commerce, why another layer of inspector raj is proposed. Who will benefit from this?
There is no clarity about the terms used in the bill and definitions are not supported by any clarity and guidelines. This leads to confusion and corruption.
In 21st century, Australia encourages Adoption Good Practices, but India promoted control, why? This reflects the mindset of the authorities and how much they trust their own investors. Why they prefer control over good practices?
What is the justification of this clause - Except a regulatory threat for rent seeking. Such clause will hurt investment in India.
All countries around the world encourage record keeping and trace-ability records of products to prevent misuse or mis-selling, in India we focus on control and inspectors. Which is more sensible approach.
Why there is a serious trust deficit in India? With trust deficit can you attract investment and talent? Think about it. If law treats every one like a their or smuggler, who will prefer to work in such country. Drafting of bill must reflect on this fundamental issue.
It seems the people those who drafted these bill have no interest in development and investment, they have their own agenda. Should country accept such mindsets in policy making?
Please review the Bill in National Interest, if we have to ensure "Make in India" a success.In present form, this bill will make competitors of India very happy. because with such bill why one should worry, because India will never become global player in agro-chemicals. Farmers of India will be forced to buy imported chemicals and five times the price what can be done in India. India will also loose foreign exchange, investments and jobs.
Yes, few will be very happy by seeking rent from Industry and trade for personal use at the cost of national interest.
This was Part-1 of my assessment, Look forward for the Part-2 on another important dimension in the same Bill.
If anyone wants section-by-section discussion author is avaible for discussion.
Disclaimer:
View a personal.
Now-a-days, I am reading various laws to understand why India suffer when it comes to development with all the talent around us. As a management professional and student of business and law, agriculture and food science, trade and consumer products, commodities and value-addition industries, my focus remains of sectors of my interest i.e. consumption industry. I compare laws of India with countries those who are ahead of us. This gives me exposure to the laws from all over the world related to my areas of interest.
In past, I also had some key role in creating Food safety laws, quarantine laws in India and now amendment in Consumer Protection laws mainly with respect to E-commerce and Law for Direct Selling.
satpura agro mart
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