Justice Manmohan issued notice to the government and sought its response by March 4 on the plea of Mahyco Monsanto Biotech India (Pvt) Ltd challenging the Agriculture Ministry's January 27 order giving powers to the committee to fix license fee payable by sub-licensees for GM technology.
The court clarified that "any action taken by respondent (Centre) in pursuance to the aforesaid order shall be subject to further orders".
Under the January 27 order, the panel was given powers to fix the license fee payable by sub-licensees to Mahyco and suggest the licensing guidelines and format for all GM technology licensing agreements between them inter se, the court noted in its order.
Seeking stay of the order, it contended that its technology is its patent and is governed by the Patents Act, 1970 and thus, the government cannot fix the price at which the company will supply its technology to seed manufacturers.
Mahyco is a joint venture between US agriculture company Monsanto and Maharashtra Hybrid Seeds Company which sublicenses biotechnology to seed companies.
had said the Cotton Seeds Price (Control) Order has been issued for "uniform regulation" of sale price of cotton seeds with existing and future GM technologies.
The aim was to ensure that cotton seeds are available to farmers at "fair, reasonable and affordable prices" and the rates are uniform across the country, it had said.
As per the notification, the committee was tasked with recommending the maximum retail price of cotton seeds after taking into account the seed value, license fee which includes one-time and recurring royalty (trait value), trade margins and other taxes.
Around eight million farmers grow cotton in India and the double gene Bt cotton technology supplied by Mahyco accounts for 95 per cent of the seed market.
Currently, Bt cotton seed is sold at different rates across the country. In Punjab and Haryana, it is priced at Rs 1,000 per packet of 450 grams, while it is Rs 830 in Maharasthra and Rs 930 in six states including Andhra Pradesh.