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Seed makers move court against AP order on Bt cottonseed price


Mahyco-Monsanto challenges State's move on royalty fee. 

“In the last one decade, the cost of seeds for several crops has gone up by more than 400 per cent.”

The National Seeds Association of India (NSAI) has filed a petition in the Andhra Pradesh High Court challenging the State Government order that fixed the maximum sale price (MSP) of Bt cottonseed at last year's levels, even as several farmers' organisations and non-governmental organisations announced that they would implead themselves in the issue.

The association has represented to the State Government asking it not to interfere with the pricing. Incidentally, Mahyco-Monsanto, which holds the right to sub-licence the Bt technology to seed manufacturers, had also moved the High Court challenging the State's move to fix the trait (royalty) value.

Addressing a press conference here on Tuesday, representatives of farmers' organisations and NGOs alleged that the seed companies were trying to blackmail the Government and farmers by indicating that the curbs on pricing would impact seed production.

“The NSAI does not represent the entire seed producing community. Majority of the seed producers in Andhra Pradesh welcome the Government Order that had put a cap on the MSP of cottonseed. The Order had reduced the trait (royalty) fee from Rs 150 to Rs 90 for Bollgard-II. The companies should be happy with the additional Rs 60 income. They could pay extra compensation to the seed-growing farmers,” they said.

Defending the State's right to control the seed prices, they said the State had the responsibility to ensure quality seeds at affordable prices.

“Increasing cost of seeds has become a serious problem for farmers. In the last one decade, the cost of seeds forseveral crops has gone up by more than 400 per cent. On the other hand, there is no significant improvement in the value generated by farm produce,” said Mr M. Kodand Reddy, who represents AP Kisan and Mazdoor Congress.

Dr Aldas Janaiah, an agro-economist, said the royalty being charged by cotton seed companies was very high. “Under international agreements, they could charge a royalty of 20 per cent for three years and five per cent for three more years,” he said.