The National Seed Association of India (NSAI) has defended its stand in backing the Centre’s Cottonseed Price Control Order.
In a strongly-worded statement, NSAI Executive Director Kalyan B Goswami has blamed Mahyco Monsanto Biotech Limited (MMBL) for monopolising technology licensing, impacting the seed industry.
The association alleged that several small and medium seed firms went out of business as they could not obtain the licence from MMBL due to their restrictive licensing policy.
“The number of cottonseed companies has come down to 50 from about 400 a few years ago,” he said.
He claimed that the majority of the industry was happy about the association’s stand and that only a “handful of them” were acting at the behest of MMBL. He said the NSAI would not allow Monsanto to fight the litigations using its tag in the future.
It said that the MMBL made huge profits while the seed firms ended up with a little share, though they spent huge amounts on research and production.
“The trait value was always decided by MMBL arbitrarily and at high levels without considering the plight of farmers or the firms,” he said.
Responding to the three letters written by representatives by a few multi-national and domestic seed companies recently questioning its decision to support the Price Control Order, he said a balanced regulation (like the one the Centre issued) would be a better option against the Orders issued by individual States.
The Centre has recently taken a decision to announce the cottonseed price at the national level to put a full stop to legal tussles between the States, seed companies and MMBL.
The MMBL, a joint venture between Mahyco and Monsanto, sub-licences the Bt technology to seed firms under an agreement.
The States used to ignore these pacts, indicating a value to royalty. This has become a bone of contention between the States and MMBL.
In today’s statement, the association said it spent a lot of time during the crucial February-April period every year, dealing with difference price orders in different States.
“A balanced one at the national level would solve the problem. It would ensure enough margins for the seed companies to invest in research and development and infrastructure development,” he said.