The Hindu : Front Page : Court rejects Monsanto plea for Bt Cotton seed price hike

Online edition of India's National Newspaper
Tuesday, Jun 06, 2006

Front Page

Front Page

Court rejects Monsanto plea for Bt Cotton seed price hike

Apex court declines to stay State Government order

NEW DELHI: US biotech major Monsanto on Monday failed to get any relief over the row on price fixation of Bt cotton seeds as the Supreme Court declined to stay the order of the Andhra Pradesh Government directing it not to charge more than Rs. 750 on 450 gram pack.

"We are not inclined at this juncture to interfere with the order passed by the Andhra Pradesh Government on May 29," a vacation Bench comprising Justice Arijit Pasayat and Justice C K Thakker said after hearing the application filed by Mahyco-Monsanto, Indian arm of the biotech major, against the State Government's order.

However, if it was found that the MRP was not adequately covered, the apex court or the MRTPC would decide as to who should pay additional amount, which may be found due to the company, the Bench said. The Andhra Pradesh Agricultural Commissioner on May 29 had issued an order to Monsanto's sub-licensees, specifying that selling prices should not exceed Rs. 750 on 450 gram pack of genetically modified Bt cotton seeds.

The company termed the order as illegal and arbitrary saying it was in violation of the MRTPC directive. Senior counsel Arun Jaitley and Mukul Rohatgi, opposing Monsanto's plea, submitted that if seeds were sold at higher price then ultimately the liability would fall upon farmers. Monsanto's counsel had said the company was entitled to charge trait value for the development of technology.

A petition filed by the US biotech major that sought a stay on the order of the MRTPC directing the company to fix a reasonable price for the sale of Bt-cotton seeds to farmers, which was held to be exorbitantly high, was pending. Monsanto appealed against the interim order of the MRTPC directing it not to charge trait value of Rs. 900 for a packet of 450 gm of genetically modified Bt-cotton seeds and to fix a reasonable trait value as charged by its parent company (Monsanto) in China.

The court sought response from some of the Indian seeds companies, which had supported the State Government's stand before the commission._ PTI

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