Even though the Union government has reduced the price of Bollgard-II cottonseed by ₹60 (for a packet of 450 gm), an uncertain kharif awaits cotton farmers in the country.
The reduction would mean a saving of ₹300 crore for farmers who use about 5 crore packets of seeds in a season.
The farmers, however, are not much elated as they do not have many seed options left for the upcoming season with reports of virulent attacks of bollworm coming in from all over the country.
On expected lines, the government came out with a gazette notification on Monday, reducing the BG-II seed price by ₹60 to ₹740. While the seed value has been reduced by ₹50, the trait value (on BG-II technology) is pared by ₹10 to ₹39. The price of Bollgard-I seeds remains untouched at ₹635.
The seed value came down from to ₹751 in 2016 from ₹840 after the NDA government brought in the Cotton Price (Control) Order to regulate the contentious seed price.
Both the NSAI, which represents the bulk of the cottonseed industry, and Mahyco Monsanto Biotech Limited, which supplies the Bollgard technology to the seed companies, are upset with the downward revision of the price.
Non-governmental organisations have said it is time for brining non-GM cotton varieties back on the agenda, with the GM varieties leaving farmers in distress.
The National Seed Association of India (NSAI), which is pitching for a hike in the seed price, says it is disappointed by the move. “If they want to really help the farmers, they should have removed the trait value completely,” the NSAI said.
“In an inflationary economy such reduction is not possible. This is not viable to seed companies to produce seeds. It can lead to shortage of seeds to farmers,” NSAI President, M Prabhakara Rao, told BusinessLine.
“Despite the fact that BG-II trait is not working, the government fixed the trait value at ₹39. We don’t understand why the price of BG-I was kept lower than BG-II, when all costs remain the same,” he pointed out.
Unfortunate: MMBL
MMBL termed the price reduction unfortunate, saying the Bollgard technology made a turnaround in the Indian cotton story.
“The trait value was less than 1.5 per cent of the cost of cultivation. It is unfortunate that today’s order further erodes trait fee, which is now less than 0.5 per cent of the cost of cultivation, while the technology continues to provide value to farmers,” an MMBL spokesperson said.
The All-India Kisan Sabha said it is a ploy to make farmers engaged in cotton that is giving them no returns.
Demand of NGOs
Meanwhile, the Alliance for Sustainable and Holistic Agriculture (ASHA), has asked the government to work on non-Bt cotton varieties and supply enough seeds. “Reducing the seed price is good but not enough. It is time non-Bt options are explored actively in the public system,” said Kavitha Kuruganti, convenor, ASHA.
Citing the example of 2016-17 when non-Bt area went up significantly, she said that though desi varieties are available in the informal networks, there are not many options available in the formal system.
CD Mayee, former director of the Central Institute for Cotton Research, felt that the government move was a bad one. “The move will only encourage only fly-by-night operators, leading to drop in availability of quality seeds,” he said.
With inputs from TV Jayan