Agreement with Monsanto on Bt cotton opposed opposed by local groups in Punjab

The Lahore Chamber of Commerce and Industry (LCCI) has warned the Punjab government that its plan to sign an agreement with a US company for hybrid BT cotton seed will spell disaster for national seed companies besides causing huge financial burden on national exchequer.

"There is no second opinion about it that countrys future lies in biotechnology as long as it helps Pakistani farmers and brings in investments but granting exclusive rights to any company that has not passed all the required tests and trials means wastage of precious resources that would be resisted at all costs", the LCCI President and Chairman Seed Association of Pakistan (SAP) Shahzad Ali Malik expressed these views while addressing the SAP executive committee here at the LCCI on Tuesday.

Malik said the agreement withMonsanto--1.htm"> Monsanto without large-scale field trials of local cotton seed varieties, yield-increase commitment and no solution to Cotton Leaf Curl virus (CLCuV) will not only hurt the interests of the farming community but it would also be useless.Monsanto--1.htm"> Monsanto is trying to get compensation for Bollgard-II seed technology despite the fact that its performance in field trials in local conditions is yet to be proved.

He said thatMonsanto--1.htm"> Monsanto should be facilitated in Pakistan but royalty or compensatory payments forMonsanto--1.htm"> Monsanto or any other company should not be approved by the government as this will not only discourage competition in the local market but will also kill the local seed industry which will only become licensees ofMonsanto--1.htm"> Monsanto creating monopoly.

The LCCI president said thatMonsanto--1.htm"> Monsanto must carry-out large-scale trials first with Bollgard-II in local varieties to demonstrate its effectiveness against Cotton Leaf Curl virus and help in getting clarity if any yield increase is taking place in our local climatic condition. Without yield increase there is no point in signing the agreement withMonsanto--1.htm"> Monsanto.

He further said the German multinational BAYER is providing the same technology (Bollgard II) without asking for any royalty and compensatory amount. So is the case with Biocentury Transgene, Chinas number one biotechnology provider, which has the patent rights to fusion gene and is prepared to provide the same to Pakistan without royalty, he added. It was also pointed out thatMonsanto--1.htm"> Monsanto is asking the government to sign as a guarantor and pay compensatory amount of 7-14 US dollars per acre for any unauthorised planting of Bt cottonseed. Virtually the company is asking the government to ensure profits and market share for itself.

Malik said that the main problems of Pakistani Cotton crop are low yield and Cotton Leaf Curl virus (CLCuV) that results in 3-4 million bales loss every cotton season. He said thatMonsanto--1.htm"> Monsantos confined filed trials in Punjab and Sindh during 2010 have not been a success and failed to show resistance to CLCuV.

The trials were of imported Indian hybrid cotton seed and not local varieties so there is no scientific way of gauging how would local varieties perform. Indian cotton area and production has increased but they have to understand its factors that in India bollworms were a big issue of cotton crop and Bt technology was effective against it. In Pakistan instead of bollworms, CLCuV was major issue and Bt technology had no control over it.

He said that Indian example was not relevant as India is 75% non-irrigated cotton while Pakistan grows cotton on irrigated land and depends on hybrid seeds and their yields are lower than current Pakistani varieties even after Bt cotton technology introduction in India. He suggested that way forward is that Seed Act Amendment and Plant Breeders Rights should be approved by the Parliament so that IPRs (intellectual property rights) are protected and investors both local and multinationals get confidence.

This year eight local Bt cotton varieties (BG I) and one hybrid containing Chinese fusion gene were approved by Punjab government and agreement withMonsanto--1.htm"> Monsanto will destroy local seed companies selling the Bt Cottonseed.

The agreement should be signed after approval of Provincial or National Assembly because royalty payment is a controversial issue and should not be agreed without approval of public representatives. Pakistans position was strong to negotiate withMonsanto--1.htm"> Monsanto as it already has entered into cotton growing countries and Pakistan was the only market left. It is quite understandable that the American company was in a hurry to get the things done because the Bt Cotton variety containing Chinese fusion gene as mentioned above has already been approved by the government of Punjab and is poised to be commercialised next year.

It is pertinent to mention here that on MAY 26, 2008,Monsanto--1.htm"> Monsanto wrote a letter to Punjab government accepting that it has no patent for Bollagrd I in Pakistan which is CRY1AC single gene and so no claims for royalty. Now it is trying to get compensation for Bollgard-II seed technology despite the fact that its performance in field trials under Pakistans conditions have yet to be proved.