The Hindu Business Line : Bt cottonseeds to be sold at Rs 650-750 a packet

In a big relief to cotton farmers in the country, major Bt cottonseed manufacturers have agreed to sell the seed between Rs 650 and Rs 750 for a packet of 450 gm (as against Rs 1,850 last season) in Andhra Pradesh.

This has been made possible by last month's order of MRTPC (Monopolies and Restrictive Trade Practices Commission), asking Monsanto, which owns Bt cotton technology, to fix the trait value in the range of what was charged in China (Rs 34) or in the US (Rs 108).

Armed by this order, the State Government met up with Bt cottonseed manufacturers to bring down the price, in line with the MRTPC order.

After a couple of meetings with them, the State Government issued orders late on Monday evening mandating the companies not to sell the seed above Rs 750.

Though it applies to Andhra Pradesh for now, the other cotton-growing States and seed sellers would be under tremendous pressure and, ultimately, will have to follow the Andhra Pradesh model. "We cannot have two prices for two States," a representative of a seed company told Business Line, when asked whether the new pricing applies to other States as well.

This means that lakhs of cotton farmers in the country will soon get the seed at a far lower price than last year's. "Other States will be under severe pressure to follow our model," Mr N Raghuveera Reddy, Minister for Agriculture, currently touring Italy, told Business Line.

"They can sell the seed up to a maximum of Rs 750, depending on the value of the base seed," he said.

ESMA threat

However, not all the companies have agreed to reduce the price.

"Some have not agreed. But they will have to fall in line," Mr Raghuveera Reddy said.

Market dynamics apart, they will have to face the music from the Government. Sources in the Chief Minister's Office have hinted at slapping ESMA (Essential Services Maintenance Act) on those who violated the Government order.

Firms in dilemma

Those who have agreed seem to face a difficult situation. A senior executive in a seed company said that their queries with the Bt technology provider had not yielded a clear answer. "We have asked them to clarify on the trait value in the light of MRTPC order. But they have yet to come out with a clear answer," he said.

More Stories on : Seeds | Bio-tech & Genetics | Cotton

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