Business

India To Continue Regulating Cotton Seed Prices

The Indian government will keep regulating cotton seed prices and will not allow companies like the US biotechnology major Monsanto to exploit farmers, Agriculture Minister Radha Mohan Singh has said. The Centre in December had issued an order to control cotton seed prices, including trait or royalty value, effective from 2016-17 crop year (July-June). Last month, the government 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 Indian business of Monsanto.

"It (Monsanto) is a good company. We respect them but that does not mean you loot farmers and charge whatever price because you have knowledge. Be it seed or pharma, we will continue to regulate prices, whenever required," Singh said. The trait value has been reduced by over 70 per cent for the season 2016-17 starting next month despite Monsanto's threat to quit the country. The company had last month warned of re-evaluating its presence in India and holding back new technology if the government cuts trait fee of Bt cotton seeds drastically through "arbitrary and potentially destructive" interventions. Meanwhile, 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 farmer wing of BJP.