Background
The Genetic Engineering Appraisal Committee (GEAC), India’s apex regulator of genetically modified plants and food products, has approved the environmental release of Dhara Mustard Hybrid-11 (DMH-11), a genetically-engineered variant of mustard.
If approved for commercial cultivation it would be the first genetically modified food crop available to Indian farmers.
What is DMH-11?
DMH-11 is a hybrid variant of mustard developed by researchers at The Centre for Genetic Manipulation of Crop Plants, at the University of Delhi. DMH-1, a hybrid variant that was developed without transgenic technology.
DMH-1 was approved for commercial release in northwest India in 2005-2006 but scientists have said that this technology wasn’t bankable enough to consistently produce hybrid mustard.
While India has several mustard varieties, it is a self-pollinating plant and therefore a challenge for plant-breeders to cross different mustard varieties and induce desirable traits.
Being able to turn off this self-pollinating trait to enable such crossings and then restoring the trait, to enable seed production, is how the mustard plant’s genes are to be manipulated.
DMH-11 is a result of a cross between two varieties: Varuna and Early Heera-2.
Such a cross wouldn’t have happened naturally and was done after introducing genes from two soil bacterium called barnase and barstar.
Barnase in Varuna induces a temporary sterility because of which it can’t naturally self-pollinate.
Barstar in Heera blocks the effect of barnase allowing seeds to be produced.
The result is DMH-11 (where 11 refers to the number of generations after which desirable traits manifest) that not only has better yield but is also fertile. DMH-11 is a transgenic crop because it uses foreign genes from a different species.
Are hybrid mustard varieties better?
Trials conducted over three years by the Indian Council of Agricultural Research (ICAR) suggest that DMH-11 has 28% higher yields than its parent Varuna and was 37% better than zonal checks, or local varieties that are considered the best in different agro-climatic zones.
DMH-11 rather than being an end in itself signals the proof of success of the barnase-barstar system that can act as a platform technology to develop newer hybrids.
Scientists say that having better hybrids is necessary to meet India’s rising edible-oil import bill.
Mustard (Brassica juncea) is cultivated in 6-7 million hectares during the Rabi winter season predominantly in Rajasthan, Haryana, Punjab and Madhya Pradesh. India imports anywhere from 55-60% of its domestic edible-oil requirement.
In 2020-21, around 13.3 million tonnes of edible oil were imported at a cost of ₹1,17,000 crore according to the National Academy of Agricultural Sciences. This is primarily due to low productivity — of about 1-1.3 tonnes/hectare — that has been stagnant for over two decades.
On the other hand, hybrid mustard and rapeseed are the dominant form of oil seeds in Canada, China and Europe. So, proponents say, the only way to improve India’s productivity is to have more mustard hybrids.
Why is it controversial?
There are two main reasons why transgenic mustards are a topic of debate.
The use of genes that are foreign to the species is one and secondly, the preparation of mustard hybrids require the use of another gene, called the bar gene, that makes it tolerant to a herbicide called glufosinate-ammonium.
Activist groups allege that the GM mustard hasn’t been evaluated as a herbicide tolerant crop posing potential risks. Finally, they allege, GM mustard plants may dissuade bees from pollinating the plant and this could have knock-off environmental catastrophes.
What next for GM mustard?
This isn’t the first time that the GEAC has cleared the environmental release of GM mustard. In 2017 too, the apex body had cleared it but the process got stalled after a case was lodged in the Supreme Court.
The government, or specifically the Environment Ministry, hasn’t officially supported GM mustard despite the GEAC being a body under it.
Bt Brinjal, the first transgenic food crop, too was cleared by the GEAC in 2009 but was put on hold by the then-UPA government on the grounds that more tests were needed.
Currently the only transgenic crop grown in India is Bt-cotton.
The GEAC go-ahead only allows DMH-11 to be grown in fields under the supervision of the ICAR. The Indian Agricultural Research Institute has said that the crop would be commercially available after “three seasons” now that they can be grown in large quantities for evaluation.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.