Bt cotton push may curtail R&D in other varieties

The government decision to lower the retail prices of BT cotton to attract more farmers could discourage companies to develop and market improved varieties, which is likely to affect the acreage also.

R K Sinha, executive director of the All India Crop Biotechnology Association said, "The acreage under Bt cotton in India has almost doubled between 2005 and 2006. In 2005, the total area covered under BT cotton was 23 lakh hectares, which touched 38 lakh hectares in 2006. This year, it is expected to touch 55 lakh hectares with small farmers contributing the bulk of produce."

It is estimated that the total acreage under BT cotton in Punjab and Haryana would touch about 11 lakh hectares this year. In Punjab, the new Bollgard cotton technology has helped the revival of cotton in the state. In the past few years, many farmers in Punjab's Malwa belt have switched to other crops due to dwindling returns of cotton on account of low per acre productivity. But production again picked up in the past two years.

Currently, the high yielding variety of Bt cotton, Bollgard(I) cost about Rs 750 per packet (packet-450 gms) while Bollgard (II) cost Rs 925 per packet whereas conventional seeds costs Rs 400-450 per packet (one packet contains 450 gm of seeds sufficient for one acre).

He said, "At present, there are companies that claim to offer more than 75 per cent germination and over 90 per cent gene purity as prescribed by the regulator. They had spent huge money on research and development but the regulator wants the prices to be at par with other manufacturers whose products are not of the same quality." The government move was to ensure more accessibility of seeds to the farmers. Expressing concern, Sinha said, "If price controls are in place for a longer period, businesses would be deterred from R&D of newer and better products."

Commenting upon the consequences of the lowering prices he said, "Farmers will not be able to discriminate between genuine Bt seeds and the spurious varieties. And without the ability to maintain a price differential between high-value and low-value products, there will be little incentive among seed companies to market value-added products like Bt cotton. So, far from eliminating the spurious varieties of Bt cotton, the mandated low prices may only leave the market open to unscrupulous dealers.

This could lead to catastrophic crop losses as farmers are being misled. Second, seed companies will have less incentive to continue to develop and market better seeds hence affecting the farmer as he would be able to benefit from the latest scientific developments, Sinha said.

He added that in various parts of the country, farmers are not able to even get the MSP as set by Cotton Corporation of India and Maharashtra Cotton Board.