The Hindu Business Line : Bollgard II cotton seeds to be priced at Rs 1,000 per packet

Pricing details
Bollgard-II cotton hybrid seeds were sold around Rs 1,400 per packet in several States during kharif 2006.
MMBL and seed companies have also agreed that the price level would be maintained at affordable levels for farmers.
The price of Rs 750 per packet for kharif 2006 was accepted by MMBL, since it benefited millions of cotton farmers.

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Hyderabad Feb. 4 Mahyco Monsanto Biotech India Ltd (MMBL) and seed companies have, after several rounds of negotiations, decided to offer Bollgard-II technology carrying cotton hybrid seeds to farmers at prices not exceeding Rs 1,000 per packet in kharif 2007.

The Bollgard-II seeds were sold around Rs 1,400 per packet in several States during kharif 2006.

Mahyco, Ajit Seeds and Krishidhan are the three companies which have the licence. Several other companies are ready to obtain it in the coming season.

Affordable level

MMBL and seed companies have also agreed that the price level would be maintained at affordable levels for farmers. It was also agreed to amend the clauses of the agreement so that there would be no issues with reference to the Monopolies and Restrictive Trade Practices (MRTP) Act in future.

Briefing newspersons about the developments on behalf of the seed companies, Mr Prabhakara Rao, Managing Director of Nuziveedu Seeds, said Rs 750 per packet for kharif 2006 was accepted by MMBL, since it benefited millions of cotton farmers.

Against a trait value of Rs 523 per packet being the net realisation to the seed companies after considering the seed prices (without Bt technology), Rs 150 per packet was agreed as trait value for kharif 2006, he said.

Trait value

MMBL, which had finalised the trait value at Rs 900 per seed packet, was supposed to get Rs 523 per packet as its share of royalty fee if the prices prevailed at about Rs 1,400 per packet.

However, on account of the Andhra Pradesh Government referring the pricing issue to MRTPC, prices got reduced to Rs 750.

Mr Prabhakar Rao said, "We will send the proposals to the State Government, with whom we are also in discussions. It has also been decided by the seed companies and MMBL to file the facts before the MRTPC and request the Commission to issue order suitably".

Production

Cotton production has increased to 270 lakh bales during the 2006-07 season, up from about 240 lakh bales, with increased acreage making India the second biggest cotton producer in the world. Productivity has also increased to 550 kg of lint per hectare registering almost 10 per cent growth compared with the previous year.

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

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