The Hindu Business Line : Bt cotton royalty issue: AP seeks PM's support

THE Andhra Pradesh Government has sought the support of the Prime Minister, Dr Manmohan Singh, in its ongoing fight against the multinational company, Monsanto, on the Bt cotton royalty issue.The Chief Minister, Dr Y.S. Rajasekhara Reddy, on Monday, submitted a detailed letter to Dr Singh, who was in Hyderabad to attend the 82nd All India Congress Committee Plenary.The move comes in the wake of the reported plan of Monsanto Chief Executive Officer, Mr Hugh Grant, to meet the President and Prime Minister of India. The Chief Minister's letter, copies of which were released to the media, explained to the Prime Minister the circumstances that had led the Government to move the Monopolies and Restrictive Trade Practices Commission against the exorbitant royalty being paid by the farmers to buy seeds with Bt trait.

Though Monsanto and Mahyco Monsanto Biotech (India) did not have a patent over the Bt technology, they collected huge sums from seed companies as licence fee. Besides, they also charged huge royalty from the sales of each packet (of cotton seeds.).

"Of the total seed cost of Rs 1,850 (for a packet of 450 gm), royalty part constituted Rs 1,250," the letter said. Compare this with Rs 108 and Rs 34 in China. "The seed companies pay around Rs 250 for 750 gm to seed producers, while collecting Rs 1,850 from farmers for just 450 gm," he pointed out. "We are not against commercialisation of US Bt technology or the companies entering into pact with Mahyco Monsanto Biotech Ltd. We have only adopted a legal approach after exhausting all other remedies to get justice for the cotton cultivators of the State," the Chief Minister said.

Though the letter did not mention the visit of Mr Grant, sources in the State Government admitted that the context was his proposed meeting with the Prime Minister.

"We were told that he might touch the subject. Keeping this mind, Mr N. Raghuveera Reddy, Minister of Agriculture, had asked the Chief Minister to take up the issue with the Prime Minister," the sources said.