Thursday, March 17, 2016

Monsanto threatens to quit Indian GM-cotton market if govt cuts its royalties

From:  RT

Published time: 5 Mar, 2016 01:42

Farmers plough and sow cotton seeds in a field in Shahpur village, India © Amit Dave
Farmers plough and sow cotton seeds in a field in Shahpur village, India © Amit Dave / Reuters
American agrochemical giant Monsanto has threatened to pull out of India and hold back new genetically modified cotton technologies if the government continues its “arbitrary and potentially destructive” interventions that seek to cut the company’s royalty fees. 

Last year the Indian government issued an order to control cotton seed prices effective from the 2016-17 crop year. In a ruling, the antitrust regulator, Competition Commission of India, accused the GMO giant of potentially abusing its dominant position on the market. The Agriculture Ministry set up a special committee tasked with implementing brackets for seed price along with royalty fees, after the completion of an investigation into the matter.

Mahyco Monsanto Biotech (MMB), a joint venture with India’s Mahyco, licenses its products to a number of local seed companies in exchange for royalties. The company also sells seeds directly though the local licensees.  MORE