Seed companies challenge Maharashtra's decision to cut Bt cotton price

The state government had on June 8 announced a price cut by 10.5% or Rs 100, to Rs 850 a packet (450g)

Seed companies have moved the high court here, challenging the Maharashtra government’s decision to reduce the price of genetically modified (Bt) cotton seed.

The state government had on June 8 announced a price cut by 10.5 per cent or Rs 100, to Rs 850 a packet (450g). Four years ago, Bt cotton’s price was decided at Rs 950 a packet.

The petition was filed by National Seed Association of India (NSAI) on behalf of the seed sector, which was admitted by the court and came for hearing on Friday.

 

“We were not happy with this order as the price cut hurt seed producers. It hurt our ability to service farmers more because the cut threatened viability of seed production. So, we pledged for relief. The court, however, asked us for some more details before the next scheduled hearing on Tuesday. We are preparing to submit those details by Monday,” said Satish Kagliwal, founder-president of NSAI and managing director of Nath Bio-genes (I).

At the beginning of the season, seed producers had urged the government to raise cotton seed prices in tune with the increase in input costs. Requests were made to the governments of Telangana, Andhra Pradesh and Maharashtra. All these governments said farmers’ condition was not favourable in the country. Hence, seed prices cannot be raised. Seed producers agreed to that. While the governments of Telangana and Andhra Pradesh did not take any further action, the Maharashtra government went on cutting the price.

“We did not want to collide with the government but we do not have any choice,” said Kagliwal.

Seed companies have been saying that while the cost of seed production has increased by 10-15 per cent in the past four years due to a proportionate rise in labour, fertiliser and other input costs, their prices remained unchanged.

Kagliwal said, “Unless seed companies are adequately paid, they would not invest on research and development. So, it is important to let seed production business remain viable. The cut is hurting our business as any price cut would force many seed-producing companies to shut their business.”

“Now, maximum retail price has been printed on the packet. A large quantity of seed has already been dispatched also. Farmers have already some quantity of seed. So, there is no logic in price cut at this juncture,” said an industry source.

Of 250 companies engaged in seed production across the country, 104 are based in Maharashtra.