The Hindu Business Line : Seeds of competition

If, in four years, the cotton economy has undergone a major transformation — from being plagued by low production and large-scale imports to one of consistently high levels of output and export surplus — it is in no small measure due to the introduction of genetically-modified cottonseed (Bt. cotton). It would be rather difficult to chronicle the recent positive developments in cotton without giving credit to the US multinational corporation Monsanto, which pioneered the cutting-edge technology and brought it here with an Indian partner. A rapid expansion of the area under Bt cotton in three short seasons is proof enough that the Indian farmer is ready to embrace any technology that will lift his fortunes through higher production and productivity.

In a world of fierce competition, monopolies usually do not last long. Monsanto 's monopoly over the Indian cotton fields has ended with at least two new players cleared to launch GM cottonseeds. No tears need be shed for the end of the monopoly because the MNC sullied its image somewhat by charging farmers usurious prices for its product and had to be reined in legally. Cotton growers will now have a choice. Also, monopoly pricing — and controversies and related legal battle — will now give way to competitive pricing of seeds, delivering financial relief to the grower. Indeed, competition is sure to expand the overall market size for GM cottonseed and benefit all players.

While it would be reasonable to assume that the regulators have done due diligence tests before granting clearance to the latest entrants, it would be necessary to ensure that competition does not degenerate into marketing gimmicks. Freedom and responsibility go hand-in-hand. Eliminating spurious seeds is a major challenge for the authorities. GM cottonseed is not without its share of problems, controversies and critics. Conflicting findings about the efficacy of Bt. cotton are a matter of record. Without washing their hands off after granting clearance, the regulators must ensure that fair trade practices are followed. At the risk of repetition, it must be stated that GM cottonseed is not a silver bullet that can address all the ills of cotton cultivation. The prescribed agronomic practices have to be followed. There are also issues relating to the quality of agrochemicals and other inputs used. Growers need to be educated.

Seed companies must voluntarily come forward to discharge their corporate social responsibility. Importantly, they must examine crop diversification prospects in regions such as Vidarbha that are prone to cotton farmer suicides. Another monopoly that needs to end immediately is that of Maharashtra government's cotton procurement scheme. The policy has no business to be around even in its present diluted form. Another season of big cotton production is beckoning with the possibility of 240/250-lakh-bale output. The global cotton market is turning decidedly producer friendly. India should be able to export about 50 lakh bales in the season beginning October. The country must cotton on to this opportunity.

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

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