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Our Bureau

MRTPC issues order on complaint from AP Govt

New Delhi , May 11

The Monopolies and Restrictive Trade Practices Commission (MRTPC) has directed the US-biotech major, Monsanto not to charge the trait value of Rs 900 for a packet of 450 gm for Bt cotton seeds in an interim order pronounced in the court on Thursday.

Stating that the company had indulged in restrictive trade practices, the Commission said: "... by temporary injunction the respondent (Mahyco Monsanto Biotech India Ltd) is directed during the pendency of this case not to charge trait value of Rs 900 for a packet of 450 grams of Bt cotton seed and to fix the reasonable trait value considering the trait value that is being charged by its parent company in neighbouring countries like China."

The company has been given a month to accede to the directive.

The order was issued on a complaint filed by the Andhra Pradesh Government in January where it objected to the pricing policy of Monsanto.

For every 450 gm of seeds sold, Monsanto charges Rs 1,200 as `trait' charges (which is a form of royalty charges) from its Indian licensees, which according to the Andhra Pradesh Government was much higher than in the US.

In India, Monsanto sells Bt cotton seeds through a joint venture Mahyco-Monsanto which fixed a trait value of Rs 1,200 for 450 gm for a packet in 2004. The value was subsequently increased to Rs 1,250 in 2005 and later reduced to Rs 900 for the Kharif season, this year.

The Government of Andhra Pradesh had made a reference with the Commission alleging restrictive trade practices on the part of six respondents, including Mahyco Monsanto Biotech-India Ltd and Monsanto Company, US. The Commission said: ``We find that prima facie it has been established that the respondent (Mahyco-Monsanto) is indulged in trade practices, which under the MRTP Act have the effect of preventing, distorting and restricting competition''. Meanwhile the company in a statement said that it would be appealing to the Commission's decision shortly as it "believes that this interim ruling is beyond the Commission's jurisdiction."

More Stories on : Bio-tech & Genetics | Cotton | Regulatory Bodies & Rulings | Andhra Pradesh

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