A PEEP INTO THE PAST
( Control ) Order , 2015 , to fix a uniform price of Bt cotton seed across the states in the country for the benefit of farmers " He also said that " based on the representations , agriculture department also made a reference to the Competition Commission of India for investigation of dominance of MMBL and abuse of monopoly in Bt cotton technology so as to ensure competition in the market .”
Many agriculture experts in India believe that the move will benefit nearly 8 million cotton farmers in India , ending the monopoly of Monsanto . More than 90 % of the cotton grown in India uses this technology . However there is a contrary view that also raises concerns about the country ’ s intellectual property rights regime . The experts on the other side point out towards the global effect of such decisions . They feel it is arbitrary in nature .
“ MNCs must agree on tapered royalties from day one . I guess they were sitting ducks as they enjoyed market monopoly ,” Dr Kiran Mazumdar Shaw , Biocon Chief mentioned in her reaction on Twitter .
Dr Anil Chauhan , an independent agriculture expert says that the decision is unfair and will send out wrong signals . “ Royalty slashed on BG cotton traits in India which is Rs 49 for BG2 per packet . 70 % reduction is unfair and sends wrong signals ,” he opined .
Monsanto to wind up its business ?
Since the recommendations made by the committee became public unofficially through certain reports in media , Monsanto India had then called the Indian regulatory environment as arbitrary and innovation stifling . It had categorically stated that it will “ re-evaluate every aspect ” of its position in India and rethink bringing new technologies to India . The company has now decided to take on the fresh order on prices in the court of law .
In India , Monsanto Mahyco Biotech ( India ) Ltd ( MMBL ), a joint venture of Mahyco Seeds Ltd and Monsanto , licenses its patented Bollgard II cotton seed technology to 49 seed companies in exchange for a royalty fee .
Now all the eyes are on Monsanto India ’ s reactions . Will it really exit its Indian business
A PEEP INTO THE PAST
It all started when the group of eight companies ; Prabhat Agri Biotech , Ajeet Seeds Limited , Kaveri Seeds , Ankur Seeds , Nuziveedu Seeds , Green Gold Seeds , Ram Agrigenetics and Amar Biotech decided not to pay trait value fixed over the transfer of Bt technology to Monsanto . Decision was based on their belief that earlier contract with Monsanto was no longer viable given the third party intervention in form of respective state governments who had issued price control orders . In the meantime , Mahyco-Monsanto Biotech ( MMB ) which of course wasn ’ t amused at the developments and filed an arbitration petition before the Mumbai High Court for the alleged breach of contracts resulting in around Rs 400 crore payment dues .
or the strong position taken by it was just temporary ? Experts say that it was just a tactic to pressurize the government . “ It is unlikely that Monsanto can afford to lose the Indian market which has such a huge population . The regulations are still developing and you never know which opportunities open up tomorrow ,” said a Mumbai based agriculture analyst on the basis on anonymity .
Arbitrary decision Vs Ending monopoly
The opinion on the government decision seems to be divided . While the Association of Biotechnology Led Enterprises Agriculture Group ( ABLE-AG ) criticized the centre ’ s move by calling it a populist measure , the National Seeds Association of India feels it will benefit Indian seeds companies and farmers .
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