Monopolies and Restrictive Trade Practices Commission (MRTPC) on Thursday conceded a provisional order directing Mahyco Monsanto Biotech (MMB) not to charge the high trait value of Rs900 per pack of 450 gram Bt cotton seeds and to fix a sensible sum within a month.
It also directed the party concerned not to appeal before the Supreme Court as the matter is still pending before it. This MRTPC decision is linked to the claim for provisional embargo stirred by Andhra Pradesh Government.
Bearing in mind the trait value, also called royalty fee, which is being charged by the parent multinational in neighboring nations like China, MRTPC felt that the trait value charged in India is very soaring.
Mahyco Monsanto Biotech had reduced their trait value charges from Rs 1,250 per 450 gram pack to Rs 900 per 450 gram pack while the matter was subjudice. Yet, MRTPC found that at this reduced level too, the trait value charged was still higher.
AP government had made a reference with the MRTPC alleging restrictive trade practices on the part of six respondents including MMB-India Ltd, Mumbai and Monsanto Company, US. Poonam Malakondiah, commissioner, AP agriculture said, "MRTPC was of the opinion that the company was charging very high royalty fees from Indian seed producers ensuing in higher prices for the poor farmers."
"Hence, the Commission orders mean that the agreements signed amid Monsanto and seed companies are 'restrictive of trade practices' and they are not enforceable," Malakondiah added.
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