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Monsanto drops new GM cotton seed proposal from India in protest

By Newsd
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Escalating the dispute over ‘technology sharing’ world’s biggest seed maker Monsanto Co  has withdrawn an application seeking approval for its next generation of genetically modified cotton seeds (GM) in India.

The conglomerate was embroiled in a long-running dispute with New Delhi and a letter sent by its local partner in India Maharashtra Hybrid Seeds Co. Ltd. indicated strong objections to a government proposal that would force Monsanto to share its technology with local seed companies. Apart from this, the price of GM cotton seeds was also an issue between the company and Indian government as Monsanto was facing tens of millions of dollars in lost revenue every year.

The decision was an unprecedented one and it has the capacity to set back Monsanto’s efforts to introduce its new seed, called Bollgard II Roundup Ready Flex technology, by years and lead to further losses. Mahyco has also said the proposal “alarmed” it and “raised serious concerns about the protection of intellectual property rights” in the country and that is the reason behind them pulling the seeds from Indian market. The communication further asked the Genetic Engineering Appraisal Committee to return data and other materials on the seed, which was put forward for approval in 2007.

Not only a setback for the Monsanto, this decision will also have a bad reflection on the Modi government’s efforts to make the country look more attractive to foreign investors. The already crippling condition of cotton farmers will further suffer as the new variety helps fight against weeds that sap the cotton crop of vital nutrients and depress yields. A Monsanto spokesman said the withdrawal of the application was “an outcome of the uncertainty in the business and regulatory environment”, but that the move had “no impact on our current cotton portfolio being sold in India”.

In a letter, dated July 5, Maharashtra Hybrid Seeds Co Ltd (Mahyco), Monsanto’s technology partner in India, singled out a government proposal requiring Monsanto to share its proprietary technology. The government was forced to order a “temporary withdrawal” of the proposal and seek a feedback from the stakeholders.

Monsanto’s tryst with India dates back in 2002 when it introduced GM cotton cultivation through single gene Bollgard I technology. The modification, Bollgard II was approved by new Delhi in 2006 and that transformed India into the world’s top producer and second-largest exporter of the fibre as output jumped fourfold.

The proposed technology Bollgard II Roundup Ready Flex would have been the first technological breakthrough since the launch of Bollgard II, as farmers complained that the existing variety was losing its effectiveness and was becoming vulnerable to bollworms.

Last year witnessed the sale of 41 million GM cotton seed packets, earning royalties of 6.5 billion Indian rupees ($97 million) for Monsanto. Mahyco applied to the GEAC for approval of the new GM seed in 2007. The application was in the final stages of a tedious and time-consuming process, which included years of field trials before being pulled out. In its letter to the GEAC, Mahyco said it would revive the application for Bollgard II Roundup Ready Flex “at a suitable time” but the government official said there were no guarantees it would be allowed to do so if it changed its mind in the future and would likely have to start afresh.

 

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