1.Andhra to pursue farmers' compensation with Mahyco
2.AP govt to cancel licence of Monsanto Mahyco company

EXCERPTS: Based on the reports of 20 expert teams, the state government had verified that the farmers had indeed been duped by the seed company, which had entered into a memorandum of understanding to pay compensation in case the seed quality led to crop failure.

"If Mahyco does not pay compensation this season, we will not hesitate to cancel their license and also fight them in the high court" - Agriculture Minister N. Raghuveera Reddy
---

1.Andhra to pursue farmers' compensation with Mahyco
Hyderabad, January 07, 2006
http://news.webindia123.com/news/showdetails.asp?id=212597&cat=Business

Andhra Pradesh Saturday threatened to cancel the licence of the Maharashtra Hybrid Seed Company (Mahyco) if it didn't compensate farmers for poor quality seeds leading to the failure of Bt cotton crop in the state.

The warning came ahead of the Monopolies and Restrictive Trade Practices Commission (MRTPC) hearing on the state government's petition challenging Mahyco for charging a high premium for the Bt strain in the cottonseed providing protection against bollworm.

The MRTPC hearing is on Jan 10. Mahyco is a subsidiary of global seed major Monsanto.

During the kharif summer crop last year, the Bt cottonseeds supplied by Mahyco had failed in 25,000 acres in Warangal district besides in other areas too.

"The case we have filed on behalf of the farmers is only on one issue - Monsanto is charging abnormally high trait value for the Bt cottonseed," said Agriculture Minister N. Raghuveera Reddy addressing a press conference on the sidelines of the Indian Science Congress, which concluded Saturday.

Based on the reports of 20 expert teams, the state government had verified that the farmers had indeed been duped by the seed company, which had entered into a memorandum of understanding to pay compensation in case the seed quality led to crop failure.

"In the case of seed performance, though we tried our best to get them to honour their contractual agreement, the compensation to farmers has not been paid."

This resulted in the government serving notice and ultimately blacklisting Mahyco Bt cottonseeds during the kharif season this year, the minister said.

As an interim arrangement the state government has paid compensation to the affected farmers who had an agreement with Mahyco.

"If Mahyco does not pay compensation this season, we will not hesitate to cancel their license and also fight them in the high court," said Reddy.

On the case filed in MRTPC, Reddy said it has been done as Mahyco is charging a trait premium, for which Monsanto holds the patent overseas, of Rs.1,250 per 450 grams of seed in India, while in the US it is charging only Rs.108 for the same quantity of Bt cotton seeds.

Further, the Indian subsidiary of Monsanto is paying farmers only Rs.250 per 450 grams for production of seeds, while its market price has been fixed at Rs.450. Together with the trait charge, the farmers have to pay Rs.1,850 per 450 grams packet for the kharif crop (harvested in winter) as against Rs.1,750 last year.

As against just 10,000 acres a couple of years back, Bt cotton is being grown currently in 550,000 acres in Andhra Pradesh alone.

The minister said the high trait premium would be challenged against all Bt cotton seed providers.

Reddy expressed concern that the seed companies are not training farmers in the use of genetically modified seeds, which has led to them being unaware that Bt cotton provides protection only against the bollworm problem.

He admitted that the budnecrosis virus, normally found to kill groundnut crop, had been found to spread to cotton crop, including Bt cotton this year.

The state government has meanwhile taken up with the central government and the agriculture minister the field trial of Bt okra (ladyfinger) undertaken by Mahyco at Narokoduru village in Guntur district without prior information.

Angry farmers in the area had burnt down the crop on learning that field trials were being done.
---

2.AP govt to cancel licence of Monsanto Mahyco company
Hyderabad, January 07, 2006
http://news.webindia123.com/news/showdetails.asp?id=212772&cat=India

Andhra Pradesh Agriculture Minister N Raghuveera Reddy today said the government would cancel the licence of Monsanto Mahyco, supplier of Bt cotton seeds, if the company did not pay compensation to the farmers who lost their crops this year.

Addressing the press at the 93rd Indian Science Congress here, Mr Reddy said the state government would not hesitate to cancel the licence of Mhayco, one of the four suppliers of Bt cotton seed, if its mamagement did not pay compensation to the affected farmers.

Stating that the government has filed a case in MRTPC on the pricing of Bt cotton seeds by the Monsanto in the state, the minister pointed out that the company was charging Rs 108 for 450 gram seeds in the United States whereas the company's price was Rs 1250 in the state.

He said the government was taking precautionery measures to curb the supply of spurious seeds by the distributers in the state. So far, 57 distributers had been arrested in this connection.

Go to a Print friendly Page

Email this Article to a Friend

Back to the Archive