The Hindu Business Line : AP plans to drag Monsanto to MRTPC over Bt cotton royalty

THE Andhra Pradesh Government has decided to move the Monopolies and Restrictive Trade Practices Commission (MRTPC) against Mahyco-Monsanto Biotechnology Company on the "exorbitant" royalty being collected by it for Bt cotton.

The Government move follows complaints from farmers and people's representatives.

Seed companies such as Raasi and Nuziveedu Seeds will also be made respondents in the case, which is to be filed before MRTPC on January 2, according to the State Agriculture Minister, Mr N. Raghuveera Reddy.

In the last three years, cotton farmers in Andhra Pradesh bought Bt seeds worth Rs 130 crore. "Of this, Rs 78 crore went to Monsanto (as royalty)," he said. Cotton is grown in 5.58 lakh acres in the State.

Bt cotton is a genetically modified variety in which the plant is engineered to produce insecticidal toxin to protect cotton from bollworm attack. The toxin is produced due to the insertion of the genes of Bacillus thuringeinsis, a soil bacterium.

"The seed grower gets less than Rs 250 for 750 gm. The farmer is asked to pay Rs 1,850 for 450 gm. This is not reasonable. Royalty should be calculated in a scientific manner," the Minister said.

The seed companies in India buy the source material (that offers resistance to bollworm in cotton) from Mahyco-Monsanto.

Of the Rs 1,850 spent by farmers on a 450-gm packet of cottonseeds, Rs 1,250 is being paid to Monsanto as royalty. This has resulted in significant increase in cost of production. (Scientists advise cotton growers to sow two packets of seed on an acre.) Speaking to newspersons, Mr Reddy criticised Monsanto for charging high "trait value" in India, while collecting less in some other countries for a 750-gm packet. The State Government was initially planning to move court against the biotech company. "We are appealing to the MRTPC because it has got monopoly on the technology." Some other States might also join Andhra Pradesh in the fight against Monsanto. "We are already getting queries from other States."

On alleged trials of Bt in lady's finger by Mahyco in Guntur district, the Minister said that the Government had written to the Centre on the issue.

"Though the Genetic Engineering Approval Committee (GEAC) grants permission, the State Government should be taken into confidence," he added.