The Centre has brought genetically modified (Bt) cotton seeds under price controls. According to a notification issued by the agriculture ministry, the decision was taken in view of farmers finding the seeds “to be highly priced” and the need to bring “uniformity” in their prices across the country.
Bt cotton was first introduced in India in 2003 and in a couple of years it found takers in almost all parts of the country. About 90 per cent of the country’s cotton area of roughly 11.8 million hectares in 2015-16 is under the Bt coverage, suggests an industry estimate.
The ministry invoked the Seed (Controls) Order, 1983, issued under the Essential Commodities Act, to impose price controls on Bt cotton seeds, but hasn’t fixed a pan-India maximum selling price (MSP). Taking a cue from states like Maharashtra and Andhra Pradesh, it, however, stated that the MSP would mean the “maximum price inclusive of seed value, license fee, trade margin and local taxes or duties, at which the cotton seeds or transgenic varieties of cotton seeds are sold to the farmers”.
States of Maharashtra and Andhra Pradesh had earlier put a cap on prices of Bt cotton seeds including the “trait fee” charged by the US-based multinational Monsanto which has proprietary rights over the gene (Bacillus thuringiensis) that accords the Bt cotton its pest-resistant property. The move could hit Monsanto hard. The agri-biotech major, along with Maharashtra-based Mahyco, is currently fighting “non-payment of around Rs 450 crores” in royalty fees (trait value) by nine Bt cotton seed manufacturers. The current price of Bt cotton seeds to farmers, as fixed by the Maharashtra government, is around Rs 900 per packet.
“For the purpose of fixing maximum sale price, the government may constitute a committee under the chairmanship of Joint Secretary (Seed) and controller, department of agriculture, cooperation and farmers welfare to recommend maximum sale price of cotton seed after taking into consideration the components of seed value, license fee which includes one time and recurring royalty (trait value), trade margins and other taxes. The committee may take inputs from such persons or associations or authority, as may be necessary for working out the maximum sale price of the cotton seed,” according to the notification.
Agricoop.nic.in
