The Agriculture Ministry in December had issued an order to control cotton seed prices including royalty value and a committee was set up to recommend the seed price.
The government has for the first time fixed a uniform price of Rs 800 per packet for Bt cotton seed, including a small royalty of Rs 49 -- a move that will benefit farmers but hit the India business of global giant Monsanto that has threatened to quit the country over this issue.
Farmers bought Bt cotton seeds in the price range of Rs 830-1,000 per packet (450 grams) across the country in the 2015-16 season. The trait value has been reduced by over 70% for the season 2016-17 starting next month.
The Agriculture Ministry in December last year issued an order to control cotton seed prices including trait or royalty value and a committee was set up to recommend the seed price.
Agriculture Minister Radha Mohan Singh said the Centre has notified the maximum sale price of Bt cotton seeds and the uniform price fixed for the entire country will benefit farmers.
In a notification dated March 8, the Ministry has fixed the maximum sale price of a Bt cotton seed packet at Rs 800 for bollgard (BG)-II version of Bt cotton hybrid, including Rs 49 for the trait value including tax.
The trait value for BG-II has been drastically cut to Rs 49/packet from the current Rs 183/packet, including tax.
For the BG-I version of Bt cotton hybrid, the maximum sale price has been fixed at Rs 635 per packet with no trait value, the notification added.
Bt cotton seed price and royalty fee have been fixed on the basis of a suggestion made by the nine-member panel.
Mahyco Monsanto Biotech India Ltd (MMBL), the Indian joint venture of Monsanto, used to get a trait fee of Rs 122.96 per packet for Bollgard -I, and Rs 183.46 per packet for Bollgard-II technologies inclusive of service tax. MMBL has sub-licensed Bt cotton seed technology since 2002 to 50 local seed firms.
Welcoming the decision, National Seed Association of India (NSAI) ED Kalyan Goswami said, "NSAI is pleased to note that the farmers' voice has been heard. The BG II technology is facing redundancy on the ground". NSAI has also represented for lowering trait fee as the technology meant to stop pink bollworm is not working, he said.
An MMBL spokesperson said, "We are in the process of examining the notification in detail and will be able to comment only after we study the document in its entirety."
Also, MMBL in December last year challenged the Cotton Seed Price (Control) Order, 2015 in the Delhi High Court. Last week, the US biotechnology major Monsanto warned of re-evaluating its presence in India and holding back new technology if the government cuts trait fee drastically through "arbitrary and potentially destructive" interventions.
Fair trade regulator Competition Commission of India (CCI) has also launched a probe against MMBL for alleged abuse of market dominance after it received complaints from the industry as well as from the farmers' wing of BJP.
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