India seed makers seek government intervention to resolve Monsanto issue

Indian hybrid seed producers under the banner of National Seed Association of India (NSAI) have sought the government's intervention to resolve the tussle with Monsanto on royalty payments on BT cotton technology. 

 

The move comes weeks after certain state governments began fixing caps on royalty amounts seed makers pay to obtain seed technology and also the selling prices of hybrid cotton seed to farmers, crippling their profit margins. 

 

India's hybrid seed industry is estimated at over $2 billion (Rs 13,200 crore) and was growing at around 10-15% a year. At present, BT cotton accounts for nearly 45% of the industry and NSAI says they paid over Rs 5,000 crore to Monsanto in the form of royalties so far. 

 

 

NSAI, which initially urged Monsanto to significantly slash royalty payments taking into account ceilings being fixed by state governments, decided to seek the union government's intervention after failing to elicit positive response from the US seed giant. Maharashtra, Gujarat, Telangana and Andhra Pradesh are among the key cotton growing states that intervened to protect farmers' interests and fixed royalty charges and steeply slashed selling prices of hybrid cotton seeds. 

 

The hybrid seed producers' body wants the government to intervene and ensure a regulatory mechanism to supervise and determine the royalty payments as well as licensing of hybrid technologies, said NSAI executive director Dr Kalyan Goswami.