Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » India
1-min read

India Cuts Royalty, Raises Price of GM Cotton Seeds In a Fresh Blow to Mosanto

The farm ministry first cut Monsanto's royalties in 2016. The company became embroiled in a now popular dispute with an Indian seed company arguing that India's Patent Act did not allow Monsanto any patent cover for its GM cotton.

Reuters

Updated:March 12, 2019, 8:07 AM IST
facebookTwitterskypewhatsapp
India Cuts Royalty, Raises Price of GM Cotton Seeds In a Fresh Blow to Mosanto
File image of a hoarding showing US biotech giant, Monsanto. (Photo: Reuters)
Loading...

New Delhi: 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 companies to Monsanto for its genetically modified (GM) cotton by 49 percent – from 39 to 20 rupees for a packet of 450 grams, according to a farm ministry order.

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

The decision comes at a time when India's cotton output is falling and needs a breakthrough to help maintain its leading position in the global cotton market, said Kaundinya.

New Delhi's cotton output is likely to fall to 32.8 million bales of 170 kg each in the year by September 2019 - the lowest in nine years, triggering higher imports of the fibre, according to industry group Cotton Association of India.

"The order is most disappointing," said Shivendra Bajaj, executive director of the alliance for Agri Innovation, an advocacy group.

Other than cutting Monsanto's royalties, the government raised the prices of GM cotton seeds by 1.43 percent to 710 rupees ($10.16) a packet.

New Delhi approved Monsanto's GM cottonseed trait, the only lab-altered crop allowed in India, in 2003 and an upgraded variety in 2006, helping transform the country into the world's top producer and second-largest exporter of the fibre.

Monsanto's GM cotton seed technology went on to dominate 90 percent of India's cotton acreage.

However, Monsanto became embroiled in a dispute with Indian seed company Nuziveedu Seeds Ltd (NSL), which argued that India's Patent Act did not allow Monsanto any patent cover for its GM cotton. Monsanto and NSL are engaged in a maze of arbitration proceedings and legal cases.

Last month Reuters reported that Monsanto has won proceedings against NSL in a royalty dispute.

The farm ministry first cut Monsanto's royalties in 2016, triggering a long-running feud that prompted the U.S. ambassador to India at the time, Richard Verma, to approach Modi's office.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Aditya Sharma
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results