HYDERABAD: The State Government has decided to file a case against Monsanto Biotech Limited before the Monopolies and Restrictive Trade Practices Commission for collecting an "abnormally high price" from farmers for Bt cottonseed on which it enjoys a monopoly.

M/s Mahyco, Pro-Agro, Raasi and Nuzvid, all seed companies, will be named as respondents in the petition, which will be filed on January 2. Other States, which face a similar problem, are expected to join Andhra Pradesh in the legal battle.

Announcing this at a press conference here on Wednesday, Agriculture Minister N. Raghuveera Reddy said Monsanto was paying a procurement price of only Rs 200-250 for 750 gm of Bt cottonseed to its seed-growers but sold the same to cotton-growers at Rs 1,850 per packet of 450 gm. Of this, the company held back Rs. 1,250 against the "trait value" it had assigned to the seeds.

The Minister, along with Agriculture Commissioner Poonam Malakondaiah clarified that the Government was not against technology used by the company, as it was certified by the Genetic Engineering Approval Committee. But, the company had no patent right in India over the Bt cotton.

The Minister alleged that Monsanto sold a 750-gm packet of the bollworm-resistant Bt cottonseed at a price as low as Rs 450 in different countries.

It had sold seed worth Rs 130 crores in India since 2002 and held back Rs 78 crores out of this for itself towards the trait value, which was abnormally high.

Company blacklisted

Mr Reddy said Monsanto was blacklisted and Bt cottonseed banned last year following reports of crop failure. But, the company did not respond to the plea for payment of Rs 3 crores as compensation to farmers.

In spite of the ban, Bt cottonseed was made available unauthorisedly by other firms like Mahyco, Raasi, Pro-Agro and Nuzvid who produced hybrid variety using Monsanto technology.

Against this scenario, Chief Minister Y. S. Rajasekhara Reddy wanted the department to stand by the exploited farmers, he said. At present, cotton is grown over 5.5 lakh acres in Warangal, Guntur, Nalgonda, Khammam and Adilabad districts.

Printer friendly page  
Send this article to Friends by E-Mail