India Cuts Monsanto Seed Royalties for 3rd Time | WHAT REALLY HAPPENED


India Cuts Monsanto Seed Royalties for 3rd Time

India’s government has decided to reduce royalties paid by Indian seed companies to Monsanto for its genetically modified (GM) cotton by 49 percent to 20 rupees for a packet of 450 grams, according to a farm ministry order. Before it was 39 rupees.

The decision could prompt Monsanto and other foreign seed companies to further scale back investment in the sector, said Ram Kaundinya, director general of the Federation of Seed Industry of India.

The decision comes at a time when India’s cotton output is falling and needs a breakthrough to help maintain its leading position in the global cotton market, said Kaundinya.

New Delhi’s cotton output is likely to fall to 32.8 million bales of 170 kg each in the year to September 2019 – the lowest in nine years, triggering higher imports of the fiber, according to industry group Cotton Association of India.

“The order is most disappointing,” said Shivendra Bajaj, executive director of the alliance for Agri Innovation, an advocacy group.

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