Govt asks CCI to probe Monsanto JV's alleged unfair business ways

NEW DELHI: Agriculture Ministry has asked fair trade regulator CCI to investigate the alleged monopolistic practices of seed company Mahyco-Monsanto Biotech (India) Ltd (MMBL), Parliament was informed today.

The matter was referred to the Competition Commission of India (CCI) following the representations from farmer bodies and National Seed Association of India (NSAI).

"Farmers organisations and NSAI had requested the Department (of Agriculture) to intervene to regulate royalty charges for Bt Cotton technology being charged by MMBL.

"The matter has also been referred to CCI to investigate the allegations of monopolistic practices of MMBL," Minister of State for Agriculture Mohanbhai Kundaria said in a written reply to Rajya Sabha.

Kundaria said the Ministry has already issued the Cotton Seed (Control) Order, 2015 under Section 3 of the Essential Commodities Act to regulate the cotton seed prices.

A notification dated December 7 has been issued in this regard.

"NSAI has reported that Bt Cotton accounts for nearly 45 per cent in terms of value of the Indian seed industry and from 2002 to 2014, more than Rs 5,000 crore has been paid as royalty to the technology provider," the Minister said.

NSAI has informed that its request to MMBL to reduce royalty payments has not elicited a positive response and that the matter is pending adjudication in court, he added.

In a notification issued on December 7, the Centre has decided to control prices of cotton seeds, including genetically modified versions, by fixing a uniform maximum sale price from March 2016.

It has also decided to fix and regulate the seed value and licensee fee, including royalty or trait value, according to the notification issued by the Agriculture Ministry.

At present, Bt cotton seeds are sold at different rates across the country. In Punjab and Haryana, it is priced at Rs 1,000 per packet of 450 grams, while it is Rs 830 in Maharasthra and Rs 930 in six states, including Andhra Pradesh.