The Andhra Pradesh Government will challenge the High Court’s order, permitting seed companies to increase the trait value component by Rs 60-100 in the overall cottonseed price.

The Government is planning to move the High Court bench to appeal against the order that did not agree with the State’s decision to pare the trait value to Rs 50, while fixing the seed price. This is Rs 100 lower than what the firms pay to Mahyco-Monsanto to acquire the biotechnology to pep up their cottonseed hybrids with the strength to ward off bollworms.

While giving the interim order on Friday, the court, however, had asked the Seedsmen Association and a few other cottonseed firms to deposit the additional amount thus charged in an escrow account. It had asked them to open the account after consulting the State Government within a week.

Acting on the court order, the seed industry wrote a letter to the Government to discuss the issue of escrow account. “We have received a reply from them saying that they are going to challenge the interim order,” an industry representative told Business Line. A top executive of the Agriculture Ministry confirmed the move.

Impact

The industry is not so hopeful about a hike in the seed price. Though it initially hoped to get a benefit of Rs 100, the State’s move had dampened their spirits.

“All the packets are out in the market to catch the season. If they go to the court again, it will take some more time to resolve the issue and the season might be over,” he said.

Almost 99 per cent of the cottonseed sown in the country is Bollgard-II, which is being sold at Rs 930 in the State. While the demand for the present season is pegged at four crore packets (of 450 gm each) in the country, the Andhra Pradesh Government pegged the demand for the season at 1.31 crore packets.

kurmanath.kanchi@thehindu.co.in

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