Complaints from farmers and people's representatives have put Mahyco-Monsanto Biotechnology Company in the dock under the Monopolies Restrictive Trade Practices Commission (MRTPC).
They alleged the company collected exceptionally high royalty for Bt cotton.
The Andhra Pradesh Government will file a case before the MRTPC today, said the State Agriculture Minister, N Raghuveera Reddy.
In the last three years, cotton farmers of Andhra Pradesh have used Bt seeds worth Rs 130 crore in that period, Monsanto collected Rs 78 crore in royalty, said the Minister.
Farmers spend Rs 1,850 for a 450-gm packet of cottonseed. Monsanto gets Rs 1,250 as royalty, resulting into increased cost of production.
There has to be a proper method of fixing the royalty that should not hurt the farmers, argued the Minister.