National Gene explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The National Gene Fund is where the Act's money for farmers and conservation sits. Benefit sharing, annual fees and community compensation flow in; benefit-sharing payouts, community compensation, conservation spending and scheme costs flow out. Section 46 requires the Central Government to frame schemes for community claims and for using the Fund.
Provisions as amended up to the Tribunals Reforms Act, 2021 (in force 4 April 2021); no later amendment as of 3 October 2026. Later notifications should be checked on plantauthority.gov.in.
The Central Government constitutes the National Gene Fund. Four things are credited: benefit sharing received from breeders, annual fees under section 35(1), community compensation deposited under section 41(4), and contributions from other sources (s.45(1)). It is applied, in the prescribed manner, to benefit sharing, community compensation, conservation and sustainable use of genetic resources (including strengthening the Panchayat), and scheme expenditure (s.45(2)). Section 46 requires schemes under section 41 and section 45(2)(d).
Section 45(1): what goes in
| Clause | Credit to the Fund |
|---|---|
| (a) | The benefit sharing received in the prescribed manner from the breeder of a variety or an essentially derived variety registered under the Act, or propagating material of such variety, as the case may be |
| (b) | The annual fees payable to the Authority by way of royalty under section 35(1) |
| (c) | The compensation deposited in the Gene Fund under section 41(4) |
| (d) | Contributions from any national and international organisation and other sources |
The Fund is "constituted" by the Central Government. Breeders feed it through the deposit duty in section 26(6) and the annual fee in section 35; communities' compensation under section 41 also lands here. Rule 69 repeats that the breeder of a variety or essentially derived variety deposits the benefit sharing required under section 26(6) with the Gene Fund.
Section 45(2): what comes out
"The Gene Fund shall, in the prescribed manner, be applied for meeting—"
| Clause | Use |
|---|---|
| (a) | Any amount to be paid by way of benefit sharing under section 26(5) |
| (b) | The compensation payable under section 41(3) |
| (c) | Expenditure for supporting the conservation and sustainable use of genetic resources, including in-situ and ex-situ collections, and for strengthening the capability of the Panchayat in carrying out such conservation and sustainable use |
| (d) | The expenditure of the schemes relating to benefit sharing framed under section 46 |
The priority list in the Rules
Rule 70 says the Authority pays the amount of benefit sharing and compensation required for use of genetic material, to meet expenditure for conservation and sustainable use, and for framing benefit-sharing schemes. Rule 70(2) then applies the Fund "in accordance with the priority made hereunder": (a) to support and reward farmers, communities of farmers, particularly tribal and rural communities, engaged in conservation, improvement and preservation of genetic resources of economic plants and their wild relatives, particularly in areas identified as agro-biodiversity hot spots; (b) capacity building on ex situ conservation at the level of the local body, particularly in such hot spots, and support for in-situ conservation; (c) benefit sharing and compensation under section 26(5) and section 41(3); and (d) the transaction cost of administering the Gene Fund. See rules 66 to 70.
An invented example: Sunrise Seeds is ordered to pay a benefit-sharing amount to a farmers' collective. It deposits the amount in the Gene Fund under section 26(6). The Fund then pays the collective under section 45(2)(a). Separately, the annual fees Sunrise pays under section 35 are also credited to the Fund and may be applied to the conservation expenditure in clause (c).
Section 46: schemes
| Sub-section | Provision |
|---|---|
| 46(1) | The Central Government shall, for section 41 and section 45(2)(d), frame by Gazette notification one or more schemes |
| 46(2)(a) | Registration of claims for section 41 under the scheme and all connected matters |
| 46(2)(b) | Processing of such claims for securing their enforcement |
| 46(2)(c) | Maintenance of records and Registers of such claims |
| 46(2)(d) | Utilisation, by disbursal (including apportionment) or otherwise, of amounts received in satisfaction of such claims |
| 46(2)(e) | The procedure for disbursal or apportionment by the Authority if there is a dispute about the claims |
| 46(2)(f) | Utilisation of benefit sharing for purposes relating to breeding, discovery or development of varieties |
| 46(2)(g) | Maintenance and audit of accounts with respect to the amounts in clause (d) |
The list opens with "In particular, and without prejudice to the generality of the provisions of sub-section (1)", so the matters are illustrative.
The schemes made so far include the Scheme of 2015, explained in Scheme 2015, and the Rules for utilising the National Gene Fund for conservation and sustainable use of plant genetic resources made in 2025, in Gene Fund Utilisation Rules, 2025. The Recognition and Reward Rules for farmers are separate rules under section 39(1)(iii); see the Recognition and Reward Rules.
Accounts
Section 62(1) requires the Authority to maintain the accounts of the Gene Fund, and they are audited with the Authority's accounts by the Comptroller and Auditor-General of India; see sections 60 to 63.
Organisations that contribute to the Fund, such as donors and research bodies, should keep their compliance position in view. Our compliance advisory team can help you check the conditions that attach to a contribution.
Need help understanding the Gene Fund?
If you are a breeder who must deposit, a community that may claim, or an organisation that wants to contribute or apply for funding, we can map the provisions to your situation. Speak to our compliance advisory team.
Key takeaways
- The Gene Fund receives benefit sharing, annual fees, community compensation and contributions.
- It pays benefit sharing, community compensation, conservation spending (including strengthening the Panchayat) and scheme costs.
- Rule 70 sets a priority order, starting with support and reward for tribal and rural conserving communities.
- Section 46 requires schemes for community claims and for using the Fund; the Scheme of 2015 and the 2025 Rules are made under it.
- The Fund's accounts are audited with the Authority's.
Read next
- Sections 25-26: benefit sharing
- Sections 40-41: community claims
- Scheme 2015
- Gene Fund Utilisation Rules, 2025
Disclaimer: Based on the Protection of Plant Varieties and Farmers' Rights Act, 2001 as amended up to the Tribunals Reforms Act, 2021, the PPV&FR Rules, 2003 as amended up to G.S.R. 803(E) of 16 November 2021, and the regulations, rules and scheme named in the article, as published by the PPV&FR Authority and consulted on 3 October 2026. Later notifications should be checked on plantauthority.gov.in. This article is general information, not legal advice; check the official text before acting.