Seed MNCs unite against GM rules

New industry body wants market to determine prices

Major multinational players in seed technology including Monsanto, Bayer, Dow AgroSciences and DuPont Pioneer on Friday announced the formation of a new industry body, days after Monsanto revealed that it had withdrawn its application seeking approval for the next generation of genetically-modified (GM) cotton seeds in India because of regulatory uncertainties.

The new body, Federation of Seed Industry of India (FSII), has 10 companies as its members. In a press briefing on Friday, FSII said its prime objective was to “develop and provide high performance seeds and technology-based solutions to benefit Indian farmers”. The members, representing about 30 per cent of India’s Rs 15,000-crore seed market, said they would continue to be part of the existing National Seed Association of India.

FSII, however, expressed disapproval over India's proposal to make them disclose details of their GM crop technology to Indian stakeholders and said that the prices of seeds should be set by the market and not by regulation. Industry insiders suggested that the new body would lobby for demolition of any cap on royalty on sale of the new seed variety.

On Wednesday, Monsanto had notified the Genetic Engineering Appraisal Committee, the regulatory authority for approval of biotechnology traits in India, that it was withdrawing its application for the commercial release of the “Bollgard II Roundup Ready Flex” technology. “Our decision to suspend its introduction in India is an outcome of the uncertainty in the business and regulatory environment, which include the regulation of trait fees and introduction of the draft compulsory licensing guidelines. This decision has no impact on our current cotton portfolio being sold in India,” the company said.    

The new technology uses genes that not only kill cotton pests but also make plants resistant to an herbicide called Roundup. However, environmental activists said Roundup-ready GM is unsuitable in India as it goes against the health of local varieties and is destructive to biodiversity.

In March, Monsanto had warned of re-evaluating its presence in India and holding back new technology if the government cut trait fee of Bt cotton seeds through “arbitrary” interventions. But in May, the Agriculture Ministry went ahead and notified the capping of royalties for the new GM traits at 10 per cent of the maximum sale price of BT cotton seeds for the first five years. However, it withdrew the said notification amid opposition from crop biotech industry a week later.     

FIGHT OVER SEEDS

• Multinational seed companies such as Monsanto, Bayer Biosciences, DuPont Pioneer and Dow AgroSciences announced a new  Federation of Seed Industry of India (FSII) on Friday
• On Wednesday, Monsanto revealed it had withdrawn its application for the commercial release of ‘Bollgard II Roundup Ready Flex’ technology, citing uncertain regulations
• In May, the government had capped royalties for the new GM traits at 10 per cent of the maximum sale price of Bt cotton seeds. It was later withdrawn
• 95% of India’s cotton comes from Bt cotton technology

The ministry argued it was revising guidelines and invited comments for 90 days since it withdrew the notification, the deadline for which ended earlier this week.

Monsanto sells cotton seed in India via Mahyco Monsanto Biotech Ltd (MMBL), a joint venture with Maharashtra Hybrid Seeds. Together, they are the biggest licensor of GM cotton technology to seed companies in India, having sub-licensed Bt cotton seed technology since 2002. It has been reported that currently about 49 seed companies which have licensed Bollgard technologies from the multinational now provide over 95 per cent of the cotton in India.

At a separate event on Friday, NSAI said it welcomes its members to contribute to the development of seed technology in India in every possible manner.