The Gujarat government has allowed a raise in the prices of genetically modified (Bt), Bollgard-I and Bollgard-II. On an average, prices were raised by 25 per cent for the ensuing kharif season. Prices increased from Rs 650 per packet (each of 450 gms) to Rs 830 per packet for BG-I, while prices of BG-II were raised from Rs 750 per packet to Rs 930 per packet, the government announced yesterday.
The largest cotton producing state in India, previously saw a Bt cotton seed it price revision in 2008. There will be an increase of Rs 200 a kg in the production cost to farmers as compared to 2008.
In a statement, the state government said the price rise was due to higher production cost, inflation and other factors affecting seed cultivation. “The decision of a price rise was taken to provide seed-growing farmers remunerative prices for their produce and keep them interested in cultivating Bt cotton seeds,” an official statement said.
The government further informed that cotton prices had witnessed a steep rise of around 118 per cent during 2007-11, whereas there was no rise in the seed prices during these years.
Three years ago, the state government had forced the seed companies to cut prices from Rs 1,200 per packet to Rs 750 per packet, and now the seed distributors are demanding a revision of the price.
Gujarat produces around 6.5-7 million packets of Bt cotton seeds every year, while the requirement in the state for the ensuing kharif season is estimated to be at around 6.5 million packets.
The rise came after Haryana increased seed prices recently. In Gujarat, Banaskantha, Sabarkantha and Mehsana district are among the top cotton seed growing areas, with around 50,000 acres being used exclusively for growing seeds.
