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The Indian seed industry on Friday split vertically after aggrieved multinationals complained that their voices were not being heard — just as in the case of pharma companies — and broke away to form a rival grouping.
The MNCs and some Indian outfits which quit the National Seed Association of India (NSAI) include Monsanto, Bayer, Syngenta, Dupont Pioneer and Dow AgroSciences. They have now formed the Federation of Seed Industry of India (FSII).
The split was the result of a 10-year-old infighting within the NSAI, which has represented the country’s ₹15,000-crore seed industry.
Things came to head after the NSAI backed the May 2016 Gazette notification that reasserted Centre’s right to fix the seed prices, infuriating some of its members. These members had written to the government distancing themselves from the Association’s stand.
The representatives of FSII, which is yet to be registered, did not spell out the plan of action. They said they would work towards more transparent and inclusive decision-making, respecting intellectual property. The founding members of the Association also include Metahelix, Mahyco, Shriram Bioseeds and Namdhari.
“Our new association is driven by the fundamental value of respecting research and intellectual property of others,” said M Ramasami, Chairman and Managing Director, Rasi Seeds, while announcing the formation of the FSII in New Delhi on Friday.
The NSAI, which has about 300 seed firms and State-wide associations as members, remained unfazed over the split. “It doesn’t affect us. A majority of the members are with us and we will continue to fight against the monopolies of big companies,” NSAI President M Prabhakara Rao told BusinessLine .
He alleged that the move was aimed at putting pressure on the government to go slow on the cottonseed price regulation issue.
Though the two sides have been engaged in a fight over cottonseed pricing and royalty fee for years, the differences intensified early this year after the Centre came out with an order capping seed prices and reducing royalties. The reduction of the royalty component will have an adverse impact on Monsanto’s revenues, as 95 per cent of all cottonseed in the country uses the American multinational’s Bollgard II technology.
There has always been a conflict between those with Monsanto and those who unhappy with the terms of its Bollgard technology licence. The All-India Kisan Sabha has termed the regrouping of MNCs as a reassertion of seed monopolies. “We have been demanding for seed price control. Their regrouping could seriously harm the interests of the farmers,” said Vijoo Krishnan, National Joint Secretary of AIKS.
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