• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

AP Govt to regulate MRTP act over Monsanto

06 Jul '05
3 min read

Of the several measures the department of agriculture has chalked out for bringing down Bt Cotton prices, filing a PIL in the court against the royalty is also on the cards, official sources told Business Standard

"If the courts intervene in the matter of royalty and ask the companies to stop collecting it even as an interim measure, it will bring relief to farmers,” a government representative observed.

According to him, the government is expected to first call for a meeting with the seed companies on the possibility of reducing the prices before approaching the Centre on the whole issue.

According to a government note, the total royalty collected by MMBPL up to 2005, after Mahyco and Monsanto jointly got the technology approved by the Government of India in 2002, is a whopping Rs 625 crore.

According to an estimate, Monsanto sold 20 lakh packets in the year 2004 and is likely to sell 30 lakh packets this year.

The sales from 2006 onwards are expected to result in total trait value collections upwards of Rs 1,000 crore every year.

Officials feel that Rs 1,250 per bag royalty charged by Monsanto is totally irrational as it incurs no extra cost since all the works including seed production are done by the seed companies or sub-licencees.

Originally, Monsanto offered this technology to Indian Council for Agriculture Research (ICAR) at a one-time cost of Rs 18 crore ten years ago.

But the government did not accept the offer thinking that the cost was high and the same technology could be indigenously developed by spending less amount. But it proved otherwise. Despite the usefulness of Bt Technology, the cultivation cost has gone up.

On the other hand, it is estimated that the total cotton production in the country is expected to increase to more than 300 lakh bales a year from the existing 220 lakh bales in the next three-four years.

Check Bio-tech

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search