Monsanto India slips 9% as govt tightens rules over sale of GM cotton seeds

NEW DELHI: Taking its losing streak to fourth consecutive trading session, shares of Monsanto India ended lower by 8.58 per cent on Monday as reports of the government tightening rules for the sale of genetically-modified cotton seeds emerged, raising concerns over capping of royalties the company may receive on its forthcoming products.

While there was no filing by the company regarding the matter on the stock exchanges, by the time of reporting the article, the new order is seen tougher than the royalty arrangements announced in March this year.

"We are evaluating the order," said a Monsanto spokesman told Reuters India.

Following the report, the stock fell 9.37 per cent to Rs 2,059.45.65 on BSE. At the prevailing price, the stock is down 17 per cent in four sessions to Monday.

The agriculture ministry in March cut royalties that local seed firms pay to Mahyco Monsanto Biotech (India), a Monsanto joint venture with India's Mahyco, following complaints from domestic firms that the venture was overcharging for a gene that produces its own pesticide, Reuters said.

Meanwhile, there were reports that the German drugs and chemicals group Bayer AG made an unsolicited takeover offer for the parent Monsanto Co for an estimated $62 billion, in a bid to create the world's biggest agricultural supplier and integrate pesticides and seeds markets.