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A high-powered panel of experts constituted by the government to recommend a national uniform price for Bt cotton for the 2016 season is believed to have suggested a price of Rs 800 per 450 grammes of Bt cotton packet, which includes Rs 49 as trait fee or licence fee. The licence fee is 74 per cent less than the current one.
A 450-gramme packet of Bt cotton is sold for Rs 830 in Maharashtra, while in Karnataka, Andhra Pradesh, Telengana, Gujarat and Tamil Nadu, it is sold at Rs 930. In Punjab, Haryana, Rajasthan, it is Rs 1,000.
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The trait fee is Rs 187 per 450 grammes.
The retail sale price recommended by the committee which held its last meeting a few days ago, is almost 25 per cent less than the highest prevailing price of Bt cotton in northern states, while it is 14 per cent less than the price in areas where the sales are most.
"We have taken a decision which is in the best interest of farmers and have tried to strike a balance between the interest of seed companies and also licence providers," a government official said. He said the committee's recommendations are not binding on the government and a final call on the same will be taken by the ministry of agriculture.
The government had constituted a high-powered panel of experts headed by a joint-secretary-level official in the ministry of agriculture and farmers welfare to operationalise its December 2015 cotton seed price control order.
The order empowered the Centre to fix a uniform retail price for cotton seeds including Bt cotton, following complaints that licence providers had not lowered their 'trait or licence fees' despite reduction in retail sale price of cotton which is also hurting the interest of farmers.
The licence providers led by MMBL have approached the high court against the circular on the grounds that the Centre does not have the power to determine the licence fee agreement mutually entered between two parties.
The Centre has approached the Competition Commission of India (CCI) against unfair trade practices being indulged in by some seed companies.
CCI has ordered an investigation.
