Andhra Pradesh   

Reply to A.P.'s contempt plea, Monsanto told

J. Venkatesan

Tamil Nadu wants to implead in the case on Bt. Cotton seed price

NEW DELHI: The Monopolies and Restrictive Trade Practices Commission on Thursday asked Mahyco Monsanto Biotech (India) to file its reply to a contempt petition filed by the Andhra Pradesh Government for not obeying the order directing the company not to charge trait value of Rs. 900 per pack of 450 gm of Bt. Cotton seed.

Since a judicial member is yet to be appointed, the commission without issuing formal notice on the contempt petition asked the company to file its reply.

Tamil Nadu filed a petition to implead itself in the proceedings and the commission issued notice to the parties on this application.

In its petition, the Andhra Pradesh Government said the company had deliberately ignored the order passed on May 11 and withheld the stocks and failed to supply the seed even after the onset of the monsoon.

There were large number of complaints from farmer organisations and farmers about the attitude of seed suppliers, including Monsanto, about withholding of stocks in the market. The State Government convened meetings with seed producers on May 25 and 27 about their market plans, and asked them not to charge trait value beyond Rs. 750 per 450 gm.

The State Government contended that the company had fixed the price at Rs. 880.

By no stretch of imagination the reduction of Rs. 20 from the earlier trait value of Rs. 900 could be said to be a compliance of the order or fixing a reasonable trait value.

The act of the company in fixing the price at Rs. 880 exhibited its callousness and utter disregard to the commission's order.

Hence, the contempt petition. In its application, Tamil Nadu, through the Director of Agriculture, said that the respondents had been adopting similar trade practices in Tamil Nadu and farmers were suffering with unjustified cost of Bt. Cotton seed, which contained component of high trait value.

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