AgroPages-India: Government should set up an independent regulator for GM crops at the earliest-Agricultural news

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Rarely does a large multinational company threaten to leave India. But that is exactly what Monsanto, the $40-billion American seed and agrochemical behemoth, did earlier this month.

In December, the ministry of agriculture had issued an order to cap the prices of Bt cotton seeds, the genetically modified (GM) hybrid developed by Monsanto, and set up a committee for the same. But the main worry for the company was the ministry's intention to regulate the royalty or trait fee paid to Mahyco Monsanto Biotech (India), or MMB, a joint venture set up by Monsanto, by local seed companies using its technology.

MMB challenged the order in the Delhi High Court, which refused to stay it. Then came this salvo from Monsanto, the world's largest seed company, which made headlines.

"If the committee recommends imposing a sharp, mandatory cut in the trait fees paid on Bt cotton seeds, MMB will have no choice but to re-evaluate every aspect of our position in India," said Shilpa Divekar Nirula, chief executive of Monsanto India, in a statement on March 4.

She added that such "arbitrary and innovation-stifling government interventions" make it impossible to recover research and development investments.

Strong words, but evidently not strong enough. Four days later, the government in a notification announced that, from April 1, the price of Bollgard II (BG-II) Bt cotton seeds would be capped at Rs 800 per 450 gm pack across India, which includes trait fees and taxes of Rs 49.

Now, the seeds are sold at anywhere between Rs 830 and Rs 1,000 in different parts of the country and the trait fee is around Rs 184, including taxes. The government also fixed the price of Bollgard Ⅰ(BG-Ⅰ) seeds at Rs 635 with no trait fee.