Lok Sabha Question No. 155 (STARRED), answered on 2016-03-08
Subject: GM Cotton Seeds
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BHOLA SINGH, (SMT.) RATNA DE(NAG)

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

## LOK  SABHA STARRED QUESTION NO. 155

TO BE ANSWERED ON THE 8 TH  MARCH, 2016

## GM COTTON SEEDS

*155.     SHRI BHOLA SINGH: DR. RATNA DE (NAG):

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण ½ãâ¨ããè be pleased to state:

- (a) whether  the  Government  has  taken  note  of  the  near  monopolistic  control  of  the cotton  seeds  market  by  the  company  producing  and  selling  GM  cotton  seeds,  if  so,  the details thereof and the response of the Government thereto;
- (b) whether the Government has sought a probe into the domination of the US seed company by the Competition Commission of India and if so, the details and the outcome thereof;
- (c) whether the Government has imposed price control on GM cotton seed and if so, the details thereof and its impact on seed prices; and
- (d) the  steps  taken/proposed  to  ensure  adequate  supply  of  quality  cotton  seeds  to farmers at reasonable and competitive prices?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण ½ãâ¨ããè

(SHRI RADHA MOHAN SINGH)

- (a) to (d): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO. 155 DUE FOR REPLY ON 8 TH  MARCH, 2016.

- (a) to (c): The  Department  of  Agriculture,  Cooperation  and  Farmers  Welfare  had received representations from National Seeds  Association of India and Farmers Organizations  regarding  monopolistic  and  unfair  trade  practices  followed  by  MahycoMonsanto Biotech (India) Pvt. Ltd.(MMBL) in the supply of Bt. cotton seed to the farmers. In order to safeguard the interests of the farming community, this Department issued the Cotton Seeds Price (Control) Order, 2015 under Section 3 of the Essential Commodities Act,  1955  to  regulate  Bt.  cotton  seed  prices.  As  per  the  Cotton  Seeds  Price  (Control) Order, 2015, a Committee has been constituted to recommend the maximum sale price of Bt. cotton seed after taking into consideration the components of seed value, license fee which includes one time and recurring royalty (trait value), trade margins and other taxes. The Government shall notify the maximum sale price of Bt. cotton seeds on or before 31st March of every year applicable for the next financial year.  Based on the representations, this  Department  had  also  made  a  reference  to  Competition  Commission  of  India  for investigation of dominance of MMBL and abuse of monopoly in Bt. cotton technology so as to ensure competition in the market for supply of Bt. cotton seed. After finding prima facie  cause,  the  Competition  Commission  of  India  has  ordered  for  investigation  of  the matter by Director General, Investigation, Competition Commission of India.
- (d): Both the public and the private sector have a role in the supply of quality seeds to the farmers including Bt. cotton. As Bt. cotton seed is licensed by technology provider viz. MMBL to 50 licensees, the private sector plays a major role in production and supply of Bt. cotton seeds. Some   State   Governments have

also passed state level legislations to ensure supply of Bt. Cotton seeds to the farmers. However, as there was no uniformity in pricing of Bt. cotton seeds across the country, the Central  Government has recently intervened and issued a Cotton Seed Price (Control) Order, 2015 to fix a uniform price of Bt. cotton seed across the States in the country, to be notified on or before 31 st March of every year for the next financial year, for the benefit of farmers.

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