Guj to crack a whip on cotton seed producers, distributors

Proposes Bill to allow farmers seek compensation from manufacturers.

Tightening noose around producers and distributors of all kinds of cotton seeds, including Bt cotton, Gujarat government has set the stage to implement a provision whereas cottonseed producers, distributors or vendors may have to provide compensation to farmers or the state government if the cottonseeds marketed by them fail to yield expected results specified by the producers or distributors.

Gujarat government is planning to introduce The Gujarat Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Bill 2008 in monsoon session of the state assembly during September 26 to 29.

The draft of the proposed bill allows farmers and the state government to seek compensation from producers or distributors or whose address appears on the label of product if the cottonseed sold by these entities fails to achieve expected performance.

Cottonseed producers or distributors or vendors or entity having address on the product sold will be required to disclose the expected performance of such seeds.

In case such seeds fail to provide the expected performance, as disclosed by these stakeholders, the state government or farmers will be allowed to claim compensation in such a manner as may be prescribed.

In respect of transgenic seeds all the conditions that are imposed by Genetic Engineering Approval Committee (GEAC) have to be complied with.

The proposed Bill also empowers the state government to fix a minimum sale price for all types of cotton seeds from time to time. Apart from this, the bill calls for punitive actions, which include imprisionment and fine, for non-compliance of the provisions.

The decision to introduce this Bill has been taken in the wake of cottonseed traders resorting to dubious methods to exploit farmers.

The malpractices by cottonseed traders unjustifiably add to seed cost to the farmers leading several farmers into debt trap. The multinational companies are taking undue advantages of their monopoly in respect of scarce type of cottonseeds, the bill observes.

The move is mainly aimed at making cottonseed available to farmers at affordable prices. Gujarat government had promulgated Gujarat Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Ordinance, 2008 a couple of months back. The proposed bill seeks to replace the said ordinance by an Act of the State Legislature.

The Bill has a provision to remove cottonseed from Essential Commodities Act, 1955. The state government had asked manufacturers and traders of cotton seeds, especially Bt cotton seeds, to lower the price level.

However, the state’s request has yielded no results. The state government came up with the ordinance to control prices at the outset of the Kharif season and now the same is being replaced by the proposed Act.

Among other things, farmers, who grow cotton seeds on his own premises and sells to other farmers, will be exempted from the provisions of the proposed Act.