The Hindu Business Line : AP puts on hold nod for sale of Bollgard-II

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AP puts on hold nod for sale of Bollgard-II

K.V. Kurmanath

Seeks economic viability report from GEAC

Way to clear row
AP to ask Andhra varsity to go through GEAC report.
Permission may be given if Mahyco agrees to sell seeds at Rs 750 a packet.

Hyderabad , Nov. 8

The Andhra Pradesh Government has put on hold permission to Mahyco for selling Bollgard-II (Bt-II) cottonseed in the State. It wants to examine the economic viability report first before it gives the go-ahead.

Viability report

Sources in the Agriculture Ministry told Business Line that the State had written last month to the GEAC (Genetic Engineering Approval Committee) asking it to send the economic viability report. Unlike Bollgard that protects the plant from bollworm, Bollgard II is a double-strained insect-protected cotton technology. The upgraded Bt seed also offers in-built protection against heliothis pests, yet another deadly pest that affects cotton.

"They (the company) are arguing that it is beneficial to the farmers and that it helps cut down on input costs. But we have no clue on what basis they could claim that. Once we get the report from the GEAC, we would ask the officials of the Agriculture University to go through it and what economic benefits the farmers would get," the sources said.

Firm's contention

The sources said they had objected to company's contention that they were selling the seed in States such as Gujarat and Maharashtra at Rs 1,350. "We are not bothered how they sell it in other States. We are worried over our own farmers," they said. "As we said earlier, we are not opposed to the technology. Our concern is the welfare of our farmers," they said

Pricing issue

The price of Bt-II cottonseed seemed to be a cause of concern for the State Government. The company reportedly quoted Rs 1,350 for a packet (450 gm) of seed.

"If they come forward to sell the seed at Rs 750 (the present rate of Bt cottonseed), we will give the permission right away," the Ministry sources said. Defending this, they argued, "for a farmer it doesn't matter whether it is Bt or Bt-II. If we let the second one into the market, it would lead to unnecessary confusion. We don't want this to happen."

Incidentally, it was because of the State's complaint with the MRTPC (Monopolies and Restrictive Trade Practices Commission) that the price of Bt cottonseed was reduced to Rs 750 this season ( Rs 1,850).

The State had argued that the trait value was unreasonably high and that the company charged much less in countries such as China.