'Cotton seed price control order violates free mkt economics'

Opposing government's notification to fix maximum sale price of BT cotton seeds, biotech industry body ABLE-AG today said the move violates the principle of free market economics and would discourage research.
The Agriculture Ministry has fixed the BT cotton seed price at Rs 800 per packet of 450 gram, including the trait value of Rs 49 per packet.
"We strongly oppose the decision made by the committee set up under the Cotton Seed Price Control Order by the Ministry of Agriculture and Farmer Welfare as it violates the principle of free market economics," Association of Biotechnology Led Enterprises Agriculture Group (ABLE-AG) Executive Director Shivendra Bajaj said in a statement.

"It would have been appreciated if the government had created an atmosphere for promotion of innovation and protecting IP which would have given the farmer new technologies for generating higher income," he added.
"By slashing trait fees the government has clearly shown that it is going for short term populist measures rather than supporting innovation in the long term," Bajaj said.
The association said that such a decision is a discouragement of research and is contrary to the respect for IPR in Agriculture and 'Make in India' initiative.

The decision would be detrimental in the long run as companies may have to reconsider their investments in seed based R& D in the country due to current uncertain environment.

The order contradicts with the Economic Survey 2015-16 limitations which highlighted the need for market determination and consequences of fixing the prices, the association said.
"We certainly hope that the government will reconsider the decision and promote innovation for benefits of the farmers, thereby creating an opportunity for companies to bring new products to the market," Bajaj said.