GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Monsanto Settles Rs 300 Crore Royalty Dispute With 3 Local Seed Cos

Eight licensees including Nuziveedu Seeds Ltd (NSL) refused to honour their commitments to pay Mahyco Monsanto Biotech Ltd (MMBL) over Rs 450 crore after collecting these amounts from cotton farmers in kharif 2015.

PTI

Updated:October 12, 2017, 5:20 PM IST
facebookTwittergoogleskypewhatsapp
Monsanto Settles Rs 300 Crore Royalty Dispute With 3 Local Seed Cos
In this file photo, Monsanto logo is displayed on a screen. (Photo: Reuters)
New Delhi: US biotechnology major Monsanto's Indian JV has settled royalty dispute with three Indian cotton seed companies that have cleared payment dues of about Rs 300 crore and the arbitration process is on with five other firms.

Mahyco Monsanto Biotech Ltd (MMBL), a joint venture firm of Monsanto, has sub-licensed Bt cotton seed technology to various domestic seed companies since 2002.

However, eight licensees including Nuziveedu Seeds Ltd (NSL) refused to honour their commitments to pay MMBL over Rs 450 crore after collecting these amounts from cotton farmers in kharif 2015.

In a letter to the agriculture ministry, MMBL said it has "amicably settled" the dispute with three Indian companies -- Ajeet Seeds, Kaveri Seed Co Ltd and Ankur Seeds.

According to sources, these three companies owed about Rs 300 crore.

The arbitration process to settle the matter with the rest five companies, including Nuziveedu group firms, is still on and they together owe about Rs 160 crore, they added.

The Nuziveedu group firms -- Nuziveedu Seeds Ltd, Prabhat Agri Biotech Ltd and Pravardhan Seeds Pvt Ltd -- together owe Rs 145 crore and the rest Rs 15 crore by Amar Biotech Ltd and Sri Rama Agri Genetics.

Stating that MMBL is committed to resolving the disputes, the company's Director Shilpa Divekar Nirula in the letter said: "...the outstanding disputes with the few companies, namely NSL group of companies, Amar Biotech Ltd and Sri Rama Agri Genetics, who follow NSL's lead on the disputes, continue."

"The arbitration proceedings are ongoing before various fora across the country," she added.

MMBL said many seed companies had ended their dispute with the company in early 2015-16 except for eight, which were referred to arbitration.

Meanwhile, Monsanto has appealed against the government decision to fix cotton price along with trait value (royalty) under the Cotton Seed Price Control Order. The case is pending with the Delhi High Court.

Also Watch

Read full article
Most Active
Company Price Change %Gain
TCS 1,829.00 -11.05 -0.60
ICICI Bank 293.00 +10.50 +3.72
Tata Steel 558.50 -7.50 -1.33
Reliance 1,015.55 +1.35 +0.13
Dr Reddys Labs 2,385.85 +36.00 +1.53
Company Price Change %Gain
TCS 1,830.70 -10.75 -0.58
Dr Reddys Labs 2,380.25 +29.15 +1.24
BPCL 422.95 +11.10 +2.70
Strides Shasun 404.85 +13.00 +3.32
Tata Steel 558.70 -7.25 -1.28
Top Gainers
Company Price Change %Gain
HPCL 322.10 +15.75 +5.14
ICICI Bank 293.00 +10.50 +3.72
IOC 173.90 +6.15 +3.67
BPCL 423.10 +10.85 +2.63
Tata Motors 308.80 +5.85 +1.93
Company Price Change %Gain
ICICI Bank 292.50 +10.20 +3.61
Tata Motors 308.75 +5.55 +1.83
Dr Reddys Labs 2,380.25 +29.15 +1.24
Bajaj Auto 2,901.90 +28.15 +0.98
Maruti Suzuki 8,993.40 +40.90 +0.46
Top Losers
Company Price Change %Gain
Hindalco 231.00 -6.40 -2.70
Vedanta 232.20 -6.40 -2.68
Bharti Airtel 370.90 -7.35 -1.94
Kotak Mahindra 1,315.30 -24.70 -1.84
Bajaj Finance 2,243.15 -40.45 -1.77
Company Price Change %Gain
Kotak Mahindra 1,314.05 -26.40 -1.97
Bharti Airtel 371.25 -6.30 -1.67
Coal India 274.60 -4.45 -1.59
Tata Steel 558.70 -7.25 -1.28
Axis Bank 521.00 -7.00 -1.33