The Monopolies and Restrictive Trade Practices (MRTP) Commission today asked Monsanto, the American multinational seed company which operates in India through its joint venture company, Mahyco Monsanto Biotech (MMBPL), to rework the trait value of Bt cotton seed sold in India in line with the trait value charged in China and USA.The Andhra Pradesh government had challenged the pricing of Bt cotton seed before the MRTP Commission terming the trait value fixed by Monsanto as a monopoly and restrictive trade practice.According to the state government, Indian farmers are paying about Rs 1,600-Rs 1,700 for 450 gm of transgenic cotton seed of which Rs 1,250 goes to the owner of Bt cotton technology as trait value, while the same is said to be about Rs 450-Rs 500 in China. Monsanto, in March 2006, reduced the trait value by Rs 300 owing to the objection raised by the state government. The royalty has now come down to Rs 900 per 450 gm after the reduction. The commission's decision is expected to result in a saving of hundreds of crores of rupees for the farming community in the country. As per the injunction orders issued by the commission, the seed companies have to rework the price of Bt cotton seed in line with the trait value of Rs 108 and Rs 47 charged in the US and China respectively with immediate effect. The resultant price of Bt cotton seed would be nearer to the non-Bt cotton seed, Sivarao, counsel for the AP govt, said. Meanwhile, the state government has directed its legal aides to file a caveat in the Supreme Court to forestall any possible appeal against the commission's decision by seed companies.
