Current clash between Andhra Pradesh (AP) Government and seeds company Mahyco Monsanto over compensation to farmers shows no signs of cooling down.
Company has expressed its readiness to pay damages for 'crop loss but the Government insists that it has not received any such offer.
State Government had forbidden Monsanto's Mech-162 and Mech-184 varieties of Bt cottonseeds due to 'crop failure' in 25,000 acres in Warangal district during the kharif season's preceding year.
Government has threatened to terminate the licence of the company if it does not pay off farmers for poor quality seeds while Monsanto approached High Court to challeng Government's decision.
N Raghuveera Reddy, Agriculture Minister, AP, wants the company to pay compensation of Rs3000 per acre to farmers as he feels the company is responsible for having supplied poor quality seeds.
Reddy explained that a decision was taken at district level for compensation of Rs1,500 per acre but an all-party meeting at state level later decided to increase compensation package.
Mahyco Monsanto said, apart from seeds, there are many other factors that determine yield but agreed to compensate farmers on humanitarian grounds.
In a release, an official of the company said, that Warangal district had experienced a change in climate and farming techniques did play a major role in crop failure.
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