Seed companies have challenged the Maharashtra government’s decision to reduce the price of genetically modified (Bt) cotton seed. The state government had announced a price cut by 10.5 per cent on June 8 .

Seed producers say the price cut has hurt them and has hit their ability to service farmers. They say unless they are adequately paid, they would not be able to invest in research and development. At the beginning of the season, seed producers had urged the government to raise cotton seed prices in tune with the increase in input costs.

Seed companies say while the cost of seed production has increased by 10 to 15 per cent in the past four years due to a proportionate rise in labor, fertiliser and other input costs, their prices have remained unchanged. They say the price cut would force many seed-producing companies to shut their business.

The companies made requests to Telangana, Andhra Pradesh and Maharashtra to raise prices. All these states said farmers’ condition was not favorable in the country and seed producers agreed with this assessment. However while Telangana and Andhra Pradesh did not take any further action, the Maharashtra government went ahead and lowered the price.

Of 250 companies engaged in seed production across the country, 104 are based in Maharashtra.