The biotech industry in India has opposed the notification fixing the maximum sale price of BT cotton seeds. It says the move violates the principle of free market economics and would discourage research.

BT cotton seed price has been fixed at Rs 800 per packet of 450 gram, including the trait value of Rs 49 per packet. The industry feels an atmosphere for promotion of innovation would have given the farmer new technologies for generating higher income and that slashing trait fees does not support innovation in the long term. The decision, it says, runs counter to the Make in India initiative and would be detrimental in the long run as companies would reconsider their investments in seed based R& D in the country due to the current uncertain environment. There would be no opportunity for companies to bring new products to the market.

The sharpest cut is on royalty or trait fees. They were reduced by 74 per cent. The latest prices will come into effect from the next kharif crop season, sowing for which begins in June. While the move will benefit nearly eight million cotton farmers in India, it raises concerns about the country’s intellectual property rights regime.