The Hindu Business Line : Mahyco Monsanto looking for out of court settlement

As bookings for cotton seeds for the next season begins, Mahyco Monsanto, which is fighting a legal battle over the pricing of Bt cottonseed issue, has reportedly approached the Andhra Pradesh Government and some other seed companies to work out for an out-of-the-court settlement to find a mutually acceptable solution.

"The company did approach us with a proposal to end the row," sources in the State Government told Business Line.

"We told them that the Government will have no objection as long as the interests of the farmers are protected," they said.

Mr N Raghuveera Reddy, AP Minister for Agriculture and Civil Supplies, told Business Line that the Government, in principle, was ready for a solution as long as it helped the farmers.

"There is no question of any compromise when it comes to the interests of the farmers. We don't dilute the issue on that count," he said.

But the State Government is not the only party. It was AP Rythu Coolie Sangham, an affiliate of the Communist Party of India that approached the MRTPC (Monopolies and Restrictive Trade Practices Commission) first, complaining against the high trait value charged by the company. The State Government too joined the issue with Mahyco Monsanto. Other cotton-growing States followed suit.

After getting an investigation done, the Commission, in its interim order, asked the company to fix a reasonable trait value. As a result, cotton farmers in most parts of the country could buy Bt seeds almost Rs 1,000 less (on a packet of 450 gm) than what they spent a year before.

Challenging the order, the company moved the Supreme Court stating that

the commission had no jurisdiction over the pricing issue. (It had also sought a stay order on Andhra Pradesh Government's direction to sell the seed below Rs 750 (a packet) as against Rs 1,850 last year.)

The issue is still pending in both the apex court and MRTPC.

The State Government reportedly told the company that it was not the only party in this issue. "Other States too joined the fight. The company should talk to them," the sources said.

A spokesperson of a seed company too hinted at a proposal from the company side. "There is a likelihood of settling the price slightly high," he said.

Company response

When asked to comment on the reported proposal, a Monsanto spokesperson said: "There is nothing right now that we can share. There is no such proposal".

The company's Dr Camille M Gonsalves, however, said the company was committed to offer the best of technologies and that it engaged itself in constant discussions with the stakeholders on a variety of issues.

More Stories on : Seeds | Courts/Legal Issues | Cotton

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