India cut royalties for genetically-modified cotton seeds, defying Monsanto Co., which has said such a move would cause it to reevaluate its business in the country, the largest grower of the fiber.
The agriculture ministry said Tuesday that so-called trait royalties will be capped at 49 rupees (73 U.S. cents) per 450-gram pack of so-called Bt cotton seeds, a 70 percent reduction from current levels. It also set the maximum sale price at 800 rupees.
St. Louis-based Monsanto sells cotton seed in India via Mahyco Monsanto Biotech, or MMB, a joint venture with Maharashtra Hybrid Seeds Co. The venture licenses Monsanto technology to seed companies and then collects trait fees. MMB said March 4 it would have no choice but to “reevaluate every aspect” of its position in India should the government make a substantial cut to royalties, saying such intervention would override its contracts with seed companies and undermine its operations.
Monsanto had no comment Wednesday as the company is still examining the government notification in detail, spokeswoman Christi Dixon said. Shares of Monsanto India Ltd. climbed 3.5 percent to 1,671.3 rupees in Mumbai on Thursday.
"First they ignore you, then they ridicule you, then they fight you, and then you win." Mahatma Gandhi
Our fight against GEO/GMO'd and our right to know!