The Hindu Business Line : Soya not viable option for Monsanto in India

St. Louis (Missouri), Sept 5 While Monsanto’s name is synonymous with Bt cotton in India, the crop figures far less prominently in its worldwide operations.

During 2007 (year-ended August 31), out of Monsanto’s net sales of $4.96 billion from the seeds and genomics segment, corn accounted for as much as $2.81 billion, followed by soyabean ($901 million) and vegetables and fruits ($612 million). Cotton came only next, at $319 million.

In India, the company’s mainstay has been cotton, with corn, too, slowly gaining importance. What about soyabean? As things stand, the scope for this crop seems limited, for the reason that soyabean is largely a self-pollinating plant, rendering hybridisation a commercially unviable option.

The flexibility for farmers to save, use or even multiply and sell seeds from the previous year’s crop has deterred private seed companies from entering the segment in the country. There are only a handful of private Indian players in soyabean, including Mahyco and the Indore-based Eagle Seeds & Biotech.

“There are intellectual property rights (IPR) issues in soyabean. This is unlike in cotton or corn, where hybrid seeds by themselves ensure IPR protection. GM soyabean may not be viable for us unless the IPR issues are addressed through appropriate models as in say, Brazil,” said Dr Rashmi S. Nair, Team Lead, Global Scientific Affairs, Monsanto Company.

Brazil model

In the Brazil model, Monsanto has worked out an agreement with soyabean crushers and exporters, wherein farmers growing its Roundup-resistant varieties pay a certain royalty fee when they drop their harvests at the elevators (in India, this would translate into some kind of a mandi fee, the proceeds of which would go to the breeder). In event of farmers not declaring their soyabean as Roundup-ready, they stand the risk of having the crop tested and paying a fine/penalty if the tests prove otherwise.

Bt pricing row

Such models may, however, be politically unworkable in India, where Monsanto is already facing rough weather from State Governments vis-À-vis Bt cotton. When Bt cotton was introduced in the country in 2002, it was being sold at Rs 1,600 a packet. But in the current planting season, States such as Andhra Pradesh have fixed a maximum retail price of Rs 750 a packet. And this is a uniform price that applies to both ‘Bollgard-I’ as well as the more advanced ‘Bollgard-II’ hybrids containing two Bt genes!

“The next big things in cotton and corn are hybrids that are genetically engineered to tolerate drought conditions by being able to use water and nitrogen more efficiently. We hope to commercialise these by 2015,” noted Mr Gerald A. Steiner, Executive Vice-President, Commercial Acceptance.

A Wary approach

He said while Monsanto was very keen to bring these new traits and technologies into India, the recent experience with pricing of Bt cotton had made the company wary of investing. “We are willing to discuss pricing with any Government, but it has to be based on some clear formula that takes into account the additional value our product is creating for the farmer. And these should be negotiated upfront, so as to leave no room for arbitrary pricing or year-to-year adjustments,” Mr Steiner added.

Related Stories:
GM crop row: Processors block herbicide resistant soya