AP not to hike Bt cotton seed prices

The Andhra Pradesh government has decided not to hike the price of Bt cotton seeds for the ensuing season. Bt 1 (single gene) variety will, therefore, be sold at Rs 650 a packet (450 gm) and Bt 2 (double gene technology) for Rs 750. Non-Bt variety too will be same as last year at Rs 300.

A GO to this effect would be issued shortly.

The National Seed Association of India (NSAI) in February had sought an increase in the price of Bt cotton seeds. The financial viability of seed companies would be hit if the prices were not increased, it informed the state government, adding this could force seed companies to stay away from production.

In 2006, Bt 1 seed was priced at Rs 750 a packet while Bt 2 was at Rs 925. It was reduced to Rs 650 and Rs 750 a packet in 2008.

The seed association had urged the government to increase the Bt 1 variety to Rs 850 and Bt 2 to Rs 1,050 as the input and labour costs had gone up 35 per cent.

Typically, seed companies spend Rs 140 on distribution, Rs 243 on production, Rs 81 on research and Rs 96 as trait fee to the company, which owns the rights to the technology of Bt 1 seeds.