The Hindu Business Line : Cottonseed may get ‘essential’ tag again

After receiving pleas from some State Governments, the Union Government has reportedly decided to bring cottonseed back into the fold of Essential Commodities Act.

Sources in the Agriculture Ministry told Business Line that the omission of cottonseed from the essential commodities list was a mistake and that they were bringing it back into the list.

The Andhra Pradesh Government had expressed serious objection and asked the Centre to revoke the move. The Government feared that the move would take away the powers of the State in controlling the seed companies, leaving the State with no powers to dictate the cottonseed companies on the pricing issue.

AP Ordinance

Worried, the State even introduced an Ordinance, invoking the provisions of Environmental Protection Act in order to retain control over the Bt cottonseed companies.

With the kharif season fast approaching, the State Government promulgated the AP Cottonseeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Ordinance.The move followed Mahyco Seeds filing a petition in the Andhra Pradesh High Court, challenging the State’s rights in fixing the price in the light of withdrawal of cottonseed from the list of Essential Commodities.

The idea behind promulgating the Ordinance was to wrest powers to control the seed activity. The Government, however, continued lobbying with the Centre to bring back cottonseed in the Essential Commodities list.

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