Monsanto in trouble for over-pricing herbicides

US biotechnology giant Monsanto seems headed for fresh trouble, with Monopolies & Restrictive Trade Practices Commission's (MRTPC) investigative arm, the Director General of Investigation and Registration (DGIR), recommending an inquiry against its subsidiary Monsanto India for adopting unfair and restrictive trade practices in relation to sale of herbicides.

In its report, DGIR is understood to have said Monsanto India charged very high prices and reaped "unreasonable" profits, official sources said. The company also underutilised its production capacity at Silvassa, Dadra and Nagar Haveli, sources said, adding it was using less than 10% of the installed capacity but still managed a profit margin of about 20%.

When asked whether the company had received any notice from MRTPC in this regard, a Monsanto India spokesperson told PTI: "We have not received any information and are not in a position to respond."

The DGIR report recommending inquiry against Monsanto India comes in even as its sister concern Mahyco Monsanto Biotech and parent company Monsanto are battling legal cases in MRTPC and Supreme Court over sale of genetically modified BT cotton seeds at exorbitant prices.