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With cottonseed sales season fast approaching for the kharif season, the Andhra Pradesh Government is evaluating opinions from farmers, seed growers, seed companies and technology provider (Mahyco-Monsanto) to finalise prices for Bollgard-I (BG-I) and Bollgard-II (BG-II). A decision in this regard is expected this week, most probably in a day or two.
There were heated arguments at the Monday meeting, the second such meeting in 10 days, after a Mahyco-Monsanto executive argued that trait value in India was the lowest and that it was just a fraction of the benefits farmers reaped. Representatives of farmers' organisations opposed any move to increase the seed prices.
Though there was no consensus among stakeholders on the issue of royalty and cost of production (to companies and seed growers), a seed company representative told Business Line that the Government would take cue from the North Zone price of Rs 1,000 (for a packet of 450 gm) for BG-II and Rs 850 for BG-I.
Seed companies have demanded the Government should allow them to sell the seed at Rs 1,050 (BG-II) and Rs 750 (BG-I) against Rs 750 and Rs 650 respectively.
North Zone cue
Prices in the North Zone, which comprises Punjab, Haryana and Rajasthan, have gone up from Rs 925 to Rs 1,000 for BG-II and Rs 750 to Rs 850 for BG-I. “Sales cycle begins early there and they approved the hike. We might also see a similar increase if not more,” the representative said. North Zone price could act as guidance for the Central and Southern Zones which consist of the cotton growing States of Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu.
Mr Sunil Sharma, the Commissioner for Agriculture, and an agri-economist, Prof Aldas Janaiah of Acharya N G Ranga Agricultural University, have refused to buy the Mahyco-Monsanto's argument that trait value was just a fraction of farmers' income.
“Prices are generally fixed based on their cost of production and not on the utility value of the products,” they argued.
Representatives of farmer organisations affiliated to Congress, BJP, CPI and CPM have strongly opposed any move to increase the seed prices.
On the other hand, they demanded that compensation for seed growers should be increased and royalty value decreased.
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