Monsanto Eyes India Exit for Bt Cotton

The Indian government capped Monsanto’s trade royalties at 49 rupees ($.73) per 450-gram pack of Bt cotton seeds, a 70% reduction from its current price, according to a report in The Economic Times of India.

India also capped the price per package of seed at 800 rupees ($11.93) for its newest Bollgard II seed and 635 rupees ($9.47) for a packet of Bollgard I.

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The change comes after a government review of Monsanto’s pricing policies, which prompted by farmer complaints about variable pricing around the country, rising technology royalties, and a shortfall in this year’s monsoon season put significant pressure on cotton area, yields, and farm incomes.

Monsanto, which operates in India as Mahyco Monsanto Biotech, a joint venture with Maharashtra Hybrid Seeds Co., has said that a significant reduction in price would force the company to reevaluate every aspect of its Indian seed business, including the possibility that it would pull its Bt seeds from the market.

India’s average cotton yield jumped almost 70% since it began to cultivate Bt cotton in 2002, according to the Indian Cotton Advisory Board. About 90% of all cotton in India is Bt.

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