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This decision could be a step in the right direction for a biodiversity-rich nation like India, where indigenous communities have long fought for their rights over genetic resources (to be used in various sectors for profit) And has voiced the need for fair profit-sharing.
Under this new fund, companies that achieve certain financial figures using genome data – such as assets of more than ₹166 crore, sales of ₹415 crore, or profits of ₹41.5 crore – will contribute a portion of their revenue to the ‘Cali Fund’. Will contribute. ,
These funds will be directed and distributed to support biodiversity conservation efforts in the countries that provide these invaluable resources.
For India, this may represent a shift towards not only acknowledging but compensating the communities who are the main custodians of these resources.
Natural beauty brands in India are an example of industries that are becoming increasingly dependent on these shared resources.
Many brands coming from India focus on using locally sourced, natural ingredients to manufacture and market their product. As consumers move toward artisan and natural products, the demand for toxin-free, nature-based ingredients continues to grow. The data shows that India’s beauty and personal care market was estimated to be worth ₹2.16 lakh crore in 2023 and is expected to grow at a CAGR of 6.286 percent to reach ₹2.92 lakh crore by 2028.
As consumers increasingly seek sustainable products, fair compensation for knowledge holders will not only encourage more sustainable business practices, but also strengthen the communities from which this knowledge originates.
But to use the ‘Cali Fund’ successfully and effectively, there is a need to not only maintain a comprehensive DSI database but also ensure its transparency.
This database will document information such as which countries have particular genetic resources, who is accessing these resources, and what the benefits of their application are.
Only a transparent system will provide fair and equitable benefits to traditional knowledge holders and support their livelihoods, who are the main custodians of biodiversity from time immemorial. One devoid of transparency and accountability will defeat its purpose.
