Monsanto moves SC against TN, Karnataka

Mahyco Monsanto Biotech (India) Ltd today moved writ petitions against the governments of Karnataka and Tamil Nadu, which have followed the footsteps of Andhra Pradesh government in directing the company to fix the price of Bt cotton below Rs 750 a kg.

Earlier, the Andhra Pradesh government had moved the Monopolies and Restrictive Trade Practices Commission (MRTPC) which had asked the company not to charge the trait value of Rs 900 for a packet of 450 grams of Bt cotton seed during the pendency of the case, and to fix a reasonable value after considering the amount being charged by the parent company in the neighbouring countries.

The company, however, moved the Supreme Court against the Commission's ruling in May. While the appeal was pending for hearing, Tamil Nadu and Karnataka governments also passed similar orders.

The Supreme Court bench headed by Justice Arijit Pasayat, which heard the appeals of the company today, posted the final hearing of the petitions before a bench headed by Justice AR Lakshmanan.

Monsanto's stand is that the commission had no jurisdiction to hear the petition against it nor to fix prices of products of international firms.

Moreover, the Andhra Pradesh government, which moved the commission, is not an 'undertaking' that has a standing in the case. The government merely grants licences to sell the seeds and it is therefore not an undertaking, it contends.

The AP government had made a reference with the Commission alleging restrictive trade practices on the part of six respondents, including Mahyco Monsanto Biotech-India Ltd and Monsanto Company, US.