USDA/FAS GAIN Report Number: IN6046
Source: http://www.fas.usda.gov/gainfiles/200606/146197998.pdf

INDIAN STATES JOIN HANDS ON BT COTTON ISSUE AGAINST MONSANTO

Agricultural Ministers and officials of seven cotton growing states met in Hyderabad on Friday and adopted a unanimous resolution to fight jointly a legal battle against Monsanto-Mahyco Biotech Ltd (MMBL), Monsanto’s local joint venture company. The resolution calls for the sale of Bt cotton` seeds at Rs. 750 per 450 gm packet as ordered by the Monopolies and Restrictive Trade Practices Commission (MRTPC). The Andhra Pradesh government hosted the meeting that was attended by representatives from Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Tamil Nadu and West Bengal. The ministers from these states have signed a common memorandum of understanding that would join the states together as a party before the MRTPC and the Supreme Court of India in the case filed by MMBL. The participants also appealed to the central (federal) government to speak on their behalf before the Supreme Court. Although the governments of Punjab and Haryana were not present at the meeting, they had sent letters in support of the concentrated efforts proposed by Andhra Pradesh’s elected officials. (Source: The Hindu 6/10/06)

Post Comments: All the major cotton growing states seem to have joined hands with the Andhra Pradesh government who is leading concentrated efforts against MMBL on pricing of Bt cottonseeds. At the MRTPC, it accused the company of charging exorbitant prices for Bt seeds and got a favorable ruling. Subsequently, the Andhra Pradesh government issued an order that Bt cottonseeds must be sold at prices below Rs. 750 per 450 gm packet. However, MMBL has appealed to the Supreme Court of India against the MRTPC ruling and Andhra Pradesh government order. The next hearing before the Supreme Court is scheduled for July 5.

PRICING OF BT COTTON SHOULD BE MARKET DRIVEN, SAYS MONSANTO

The Managing Director of Monsanto said that pricing of Monsanto's Bt cottonseed market driven and any state intervention would go against the interest of farmers. company was open for discussion and an amicable resolution of the issue. Justifying domestic pricing, he argued that it was lower than in China. Also the two agronomic practices in the two countries were completely different, as China requires cultivation times more seed per acre compared to India. (Source: The Hindu 6/10/06)

Bt COTTONSEED PRODUCERS FACE UNCERTAIN FUTURE

With the pricing of Bt cottonseeds caught in a legal tangle, the Monsanto licensee companies who have acquired the Bt technology are facing an uncertain future. However, sales have jumped significantly. A packet of genetically modified cottonseed contains 120 gm of non Bt seed, and the total cost of the hybrid seed with the Bt trait comes out to Rs. 570 per packet. This leaves a balance of only Rs. 180 from the Rs. 750 price per packet to cover all the interest costs of the trait value. (Source: Business Line 6/10/06)