Industry body Assocham has sought a review of MRTPC directive to Mahyco-Monsanto for revising royalty charges of its genetically modified Bt cotton seeds, saying this would affect farm and biotech industry.

“The order of MRTPC in this case is inappropriate and will be a setback to both the agricultural and bio-technology industry in India,” it said in a statement.

The interim ruling, the chamber said, would create an unfavourable atmosphere in India with regards to corporate investment amd would impede industrial and farm growth.

In its ruling, the Monopolies and Restrictive Trade Practices Commision had last week asked the US biotech major to reduce trait value (royalty) on Bt cotton seeds at par with China. Monsanto yesterday challenged the MRTPC order in the Supreme Court.

Assocham said the MRTPC ruling came at a time when nascent biotechnology indutsry had just begun to flourish.

“Forcing companies to cut down on technology fees will have an adverse impact on amount spent on necessary research and development,” the chamber said, adding that farmers would lose the benefits of Bt cotton if seed companies were forced to reduce R&D expenditure.

“With the introduction of Bollgard Cotton in 2002, Bt cotton farmers have enjoyed numerous benefits including substantial increase in yields per acre, greater profits and better saving due to reduced pesticide usage,” it said.

The yield in cotton grew consistently since the introduction of Bollgard in this country and has increased to 406 kg per hectare in 2005 from 309 kg per hectare in 2002, the chamber pointed out. PTI

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