Voluntary Report - public distribution

**Date:** 7/8/2005

**GAIN Report Number:** IN5076

IN5076

**India**

**Agricultural Situation**

**Weekly Highlights & Hot Bites, #26**

**2005**

**Approved by:**

![](media/image1.wmf)Michael Riedel

U.S. Embassy, New Delhi

**Prepared by:**

A. Govindan, Santosh Kr. Singh

**Report Highlights:**

\*Some issues in WTO non-negotiable - Commerce Minister\*, \*Spurious Bt
cotton seeds flood market\*.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

New Delhi \[IN1\]

\[IN\]

Welcome to Hot Bites from India, a weekly summary of issues of interest
to the U.S. agricultural community. The report includes information that
has been garnered during travel within India, reported in the local
media, or offered by host country officials and agricultural analysts.
Press articles are included in this report. Significant issues will be
expanded upon in subsequent reports from this office.

DISCLAIMER: Any press summary contained herein does NOT reflect USDA's,
the U.S. Embassy's, or any other U.S. government agency's point of view
or official policy.

**SOME ISSUES IN WTO NON-NEGOTIABLE -- COMMERCE MINISTER**

Commerce Minister Kamal Nath made it clear that certain issues in the
ongoing WTO negotiations are non-negotiable for India. In agriculture,
there is no question of accepting any kind of Swiss formula for tariff
reduction, in whatever garb. Tariff reduction commitments by developing
countries should provide for adequate policy space and reflect their
development needs. "Developed countries subsidize their agriculture to
the extent of one billion dollars a day and about 20 to 50 percent is
the subsidy component in the agricultural exports of many developed
countries. We cannot allow this ... Safeguarding our interests,
especially in sensitive sectors such as agriculture and small and medium
enterprises, will be our main concern," he said. India would also
strongly resist attempts to divide developing countries by
differentiating the so-called advanced or large developing countries
from others, he said. (Source: Press Information Bureau, Government of
India, 07/04/05)

# SPURIOUS BT COTTON SEEDS FLOOD MARKET

Monsanto\'s monopoly over the genetically modified Bt cotton seeds in
India is facing the threat of the sale of unlicensed and spurious Bt
cotton seeds in the major cotton growing areas. The license to produce
and sell Bt cotton seed belongs solely to six Monsanto sublicensee seed
companies. Market sources report that of the estimated three million Bt
cotton seed packets sold, only 60 percent is accounted for by the
Monsanto sub-licensees and the remaining 40 percent by spurious seed
suppliers. Experts fear that the cotton farmers may be adversely
affected by the inferior-quality and lower-yielding spurious seeds.
(Source: Business Standard, 07/03/05)

# RECENT REPORTS SUBMITTED BY FAS/NEW DELHI

  ----------- --------------------------------------- -------------------
  **REPORT    **SUBJECT**                             **DATE SUBMITTED**
  \#**                                                

  IN5073      Weekly Highlights & Hot Bites, #25      07/01/05

  IN5074      India: Monsoon Progress Report No. 3    07/07/05

  IN5075      India: January-April Rice Exports       07/08/05
  ----------- --------------------------------------- -------------------

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[www.usembassy.state.gov/posts/in1/wwwh43.html]{.underline} or visit our
headquarter's home page at [www.fas.usda.gov]{.underline} for a complete
selection of FAS worldwide agricultural reporting.

**FAS/NEWDELHI EMAIL**

To reach FAS/New Delhi, email us at [Agnewdelhi@usda.gov]{.underline}.