The National Seed Association of India (NSAI) has requested a refund of more than 1,300 rupees paid as a royalty to Mahyco Monsanto Biotech (MMBL) in the past five years for using the Bollgard technology in cotton hybrids._x000D_
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The Hyderabad-based body reported the dispute between MMBL and seed companies over royalty payments should be resolved as soon as possible to ensure a smooth supply of cotton seeds to farmers._x000D_
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MMBL has taken eight seed companies to court for refusing to pay trait fees of 400 rupees for using its technology in cotton hybrids and for breach of contract. MMBL has sub-licensed the technology to 49 domestic seed firms. “The seed companies are estimated to have paid more than 1,300 rupees to MMBL over and above the government stipulated trait value, and they seek refund of the same with interest after adjusting the trait value payable for the current year,” according to NSAI._x000D_
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It’s reported that after the cotton seeds were taken out of the ambit of the Essential Commodities Act, the state governments promulgated legislations to regulate prices of Bt cotton seeds. The seed industry accepted the price orders passed by the respective state governments in the interest of farmers._x000D_
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The association explained that the state governments insisted that they have fixed the royalty reasonable, and that seed companies are not bound to consider the private agreements. “It is a commonly accepted principle that once the pricing of the product is based on a statute, the bilateral agreements are superseded,” NSAI shared._x000D_
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In a release, NSAI wrote, “Under the circumstances, it is important for MMBL and the seed companies to reconcile to the statutory orders and move forward as both are working for the welfare of farmers.”_x000D_
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If the dispute remains unresolved, cotton seed production in India could be disrupted. Source: Business Standard.
