Monsanto challenges new price order for Bt cotton seeds: HC seeks Centre reply

NEW DELHI: The Delhi High Court today sought a response of the Centre and the National Seed Association on a plea by Monsanto Mahyco Biotech Ltd (MMBL) challenging the government's new price control notification for genetically modified (GM) Bt cotton seeds.

Justice Manmohan issued the order on an application by US-based agro major Monsanto's Indian arm, MMBL, which has already filed a petition challenging the government's price control order of December last year. The court will hear the matter on August 31.

The prices of Bt cotton seeds under the new notification, which was issued on March 8, came into effect from April 1.

Under the new notification, the maximum retail price (MRP) of Bollgard II Bt cotton seeds has been fixed at Rs 800 per packet, including Rs 49 as royalty fee payable to technology providers, for the 2016-17 season.

Prior to the notification, the average prevailing MRP was Rs 1,100 per packet and the royalty fee was Rs 163 per packet.

Meanwhile, in a civil suit between MMBL and one of its former licencees, Nuziveedu Seeds, Monsanto told the court of Justice Vipin Sanghi that the seed company has not complied with court orders to pay it royalty after selling the old stock manufactured prior to November 2015.

Monsanto made the submission after Nuziveedu told the court that since the new notification has come, it cannot be compelled to pay more from April 1 onwards.

However, to this Monsanto replied that since the licence with Nuziveedu had been terminated on November l5 last year and as the termination has not been challenged, it is no longer a licencee and thus, the notification would not apply to it.

The court fixed the matter for hearing on May 16.