TITLE: Andhra Pradesh files
case against Bt cotton in MRTPC PUBLICATION: WebIndia 123
DATE: 2 January 2006 URL:
http://news.webindia123.com/news/showdetails.asp?id=207938&
cat=India
ANDHRA PRADESH FILES CASE AGAINST BT COTTON IN MRTPC
New Delhi | January 02, 2006
The Andhra Pradesh Government today moved the Monopolies and Restrictive Trade Practices Commission (MRTPC) against Mahyco-Monsanto Biotechnology Company on the "exorbitant" royalty being collected by it for Bt cotton.
Briefing the mediapersons here today Andhra Pradesh Agriculture Minister N Raghuveera Reddy said four companies -- Nuziveedu Seeds Limited, Mahyco, Proagro Seed Company Limited, Raasi Seeds Private Limited and Mahyco-Monsanto Biotech Limited -- had been made parties in the case.
Disputing the AP government charges, the Mahyco-Mansanto already moved the Commission claiming to be adopting fair trade practice of the Indian market.
The MRTPC, presently scrutinising claims and counter-claims of both parties is slated to give its verdict on January 10.
Claiming that the AP government had moved the Commission following complaints from farmers and people's representatives, Mr Reddy said they had requested the MRTPC to send its team to the state to make an on-the-spot assessment into their charges.
The Minister said in the last three years, cotton farmers in Andhra Pradesh bought Bt cotton seeds worth Rs 130 crore of which Rs 78 crore went to Monsanto as royalty.
Of the total 9.5 lakh hectares of cotton under cultivation in the state, the acreage under Bt cotton cultivation is about 5.58 lakh hectares.
Bt cotton is a genetically modified variety engineered to produce insecticidal toxin to protect cotton from bollworm attack. The toxin is produced due to the insertion of the genes of Bacillus thuringeinsis, a soil bacterium.
'The seed grower gets less than Rs 250 for 750 gm. The farmer is asked to pay Rs 1,850 for 450 gm. This is not reasonable. Royalty should be calculated in a scientific manner," the Minister said.
The seed companies in India buy the source material from Mahyco-Monsanto.
The farmers paid Rs 1,850 for a 450-gm packet of cottonseeds, of which Rs 1,250 is being paid to Monsanto as royalty.
Agri-scientists have been advising the farmers to sow two packets of seed in an acre raising the cost of seed alone to over Rs 3500 per acre.
Thus, significant increase in cost of production virtually ate away the margin of farmers.
Criticising Monsanto, Mr Reddy said it was charging high for Bt cotton seed's "trait value" in India, while collecting less in some other countries for a 750-gm packet.
The Minister said they had appealed to the MRTPC because it has got monopoly on the technology and some other States might also join Andhra Pradesh in the fight against Monsanto.
He said even as the Genetic Engineering Approval Committee (GEAC) had granted permission to Bt cotton cultivation but the State Government should be taken into confidence.
Monsanto, the patent holder of the Bt technology, neither gives the source material (seeds) nor transfers the gene into the hybrid seed.
The multinational company just shares its technology with domestic companies for production of Bt cotton seed for a huge royalty.
Andhra Pradesh has already blacklisted Mahyco-Monsanto Biotech Limited for selling Bt cotton seeds only as they have not agreed to pay compensation to the state cotton farmers who had suffered losses, Mr Reddy added.
GOING FURTHER (compiled by GRAIN)
"Andhra files plaint against
Monsanto", Business Standard, Hyderabad, 3 January 2006.
http://www.business-standard.com/common/storypage.php?story
flag=y&leftnm=lmnu1&leftindx=1&lselect=1&chklogin=N&autono=2
10371
"AP case against Monsanto
undesirable", Business Line, Mumbai, 2 January 2006
http://sify.com/finance/fullstory.php?id=14111711
"Monsanto faces royalty heat", The Telegraph,
Calcutta, 1 January 2006.
http://www.telegraphindia.com/1060102/asp/business/story_56
70810.asp