Bayer’s takeover of Monsanto for $66 billion could trigger tremors in Indian agriculture. Stakeholders worry that the global consolidation will narrow choices for farmers.

The merger will propel the merged entity into a leading player in the seed sector. Through their subsidiaries and joint ventures in India, the two firms will garner a major share in paddy, maize, vegetables and cotton and agrochemicals.

“It will lead to concentration of power and will result in market distraction. This is the third such merger of seed majors in recent times. This will leave only three players in the global market and will have a cascading impact on Indian agriculture,” said N Prabhakara Rao, President of the National Seed Association of India.

P Balasubrahmanyam, Head of Research at PCS Securities, doesn’t see any immediate impact in India. “Bayer is into agri chemicals, Monsanto focuses on seeds. It’s a right fit for Bayer as it adds new products to its portfolio. But it is not a threat for the seed sector,” he felt.

However, an industry executive, speaking on condition of anonymity, differed. “With combined muscle power, they can dictate terms,” he said.

Vijoo Krishnan, General Secretary of the All-India Kisan Sabha, said the takeover would result in further consolidation of the monopoly over agricultural inputs: “They are predatory agri-businesses that aim to gobble up all competition and maximise profits at the expense of farmers.”

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