As it begins talks with seed firms and farmers' groups to decide price of cottonseed, the Andhra Pradesh Government has asked the industry how much does it actually cost to produce a packet (450 gm) of seeds.
It gave the seed industry two days to come out with a detailed estimate of cost overheads.
It also asked farmers groups to come out with their estimation of cost to produce seeds from seed grower point of view.
The industry generally argues that seed firms pay Rs 450-480 this year as against Rs 375 for 750 gm to seed growing farmers.
But Ms Usha Rani, Commissioner for Agriculture (Andhra Pradesh), on Wednesday insisted that the companies should come out with actual cost of a packet (450 gm) that they sell in the market.
Seed industry representatives submitted their proposals, asking for hike in packet price to Rs 1,050 (from Rs 930) last year.
“We will inform our member (companies) about Government's note on cost overheads and ask them to respond on the same,” Mr P. Satish Kumar, Secretary of Seedsmen Association of Andhra Pradesh, told Business Line .
Farmers oppose
Farmers' associations, however, opposed the companies' proposal to increase price of the seed.
Mr Bharat, who represented CPM-affiliated Rythu Sangham, alleged that the industry failed to give Rs 290 for 450 gm of seeds last year.
“It only gave only Rs 180, leaving Rs 110 still unpaid,” he said, emerging out from the meeting in the evening.
“How can they ask for a hike without honouring their word,” he asked.