In fresh blow to Monsanto, Modi govt cuts GM cotton seed royalty

Other than cutting Monsanto's royalties, the government raised the prices of GM cotton seeds by 1.43 per cent to Rs 710 a packet

India has cut the royalties that local seed companies pay to German drugmaker Bayer AG’s Monsanto unit for the third time in four years.

Prime Minister Narendra Modi’s government has decided to reduce royalties paid by Indian seed firms to Monsanto for its genetically modified (GM) cotton by 49 per cent to Rs 20 for a packet of 450 grams, according to a farm ministry order. Before it was Rs 39.

The decision could prompt Monsanto and other foreign seed firms to further scale back investment in the sector, said Ram Kaundinya, director general of the Federation of Seed Industry of India.

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