MONSANTO & Royalty Case + GMOs + Seeds Bill + Development Issues

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In This NEWS Bulletin ***************************** On MONSANTO - GMOs - SEEDS BILL---- 1. Monsanto Inc USA served with notice from Monopolies & Restrictive Trade Practices Commission (MRTPC) of India 2. Farmers' fight for inclusion of their rights in the Seeds Bill - also for stringent controls over GMOs 3. India, Canada ink MoU on Biotechnology 4. Industry calls for increase in BIO-DIESEL sale price 5. Farmers' body - CIFA - for repeal of Revenue Recovery Act - Controversial issues relating to GMOs not discussed. On DEVELOPMENT ISSUES ------ 6. New government agency set to hardsell rural products 7. Take steps to meet rural road targets, Singh tells CMs 8. MRTPC issues notice to

Monsanto http://www.financialexpress.com/fe_full_story.php?content_id=148466 ASHOK B SHARMACOMMODITIES BUREAU Posted online: Saturday, December 09, 2006 at 0245 hours IST NEW DELHI, DEC 8: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has asked Monsanto, US seed multinational to respond within four weeks to the Andhra Pradesh government’s contention that it was liable to pay compensation to the farmers for selling Bt cottonseeds at exorbitant prices. In response, Monsanto said that its Indian subsidiary Mahyco—Monsanto Biotech (MMB) was responsible for operations in the country. Opposing Monsanto’s contention, the state government had said the US company has been controlling stake in its

sister concern and demanded refund of the excessive money paid by cotton growers on the company’s Bt cotton seeds. In reply Monsanto said the state government had no right to seek compensation from it, as it was not a direct consumer. But MRTPC chairman Justice OP Dwivedi on Thursday did not accepted Monsanto’s argument that it was not responsible for the situation and its name should be deleted as a party to the case. Navadanya Trust, an NGO headed by Vandana Shiva, has filed an impleadment application seeking to be a party in the case along with the state government. According to Navdanya, “Monsanto was trying to “bypass Indian laws” and establish a claim to trait values in Bt cotton seeds which was specifically excluded under the Patents Act, 1970. Since the Act excludes patents on seeds and plants, collection of royalty from years of seed

production and trait embodied in the genetic material was illegal under Indian laws.” Describing it as the "worst monopoly conceivable", Navdanya said that Monsanto was merely providing seed material, and collecting unreasonable "rent" in the form of "trait fee" in addition to upfront Rs 5 million royalty. The MRTPC's directions follow after Monsanto contended on November 14 that the state government had not demanded any action against the company in its reply filed in response to the petition submitted by the US-based firm seeking deletion of its name from the case. The MRTPC had also sought clarification from the state government on whether it was seeking any relief from Monsanto or not and directed to file amendment petition. "Compensation could be demanded only by a consumer and not by a state government," its counsel said. The Commission had in May this

year ruled that MMB must reduce the trait value, a fee that it charges on its Bt cotton seeds. The company had later challenged the ruling in Supreme Court, which has so far refused to grant a stay.-------- Ahead of 2004 bill, farmers turn up heat over seed rights http://www.indianexpress.com/story/18114.html ASHOK B SHARMAPosted online: Friday, December 08, 2006 at 0000 hrs New Delhi: Two years after the government introduced the Seeds Bill in Parliament, farmers have threatened to launch a nationwide agitation if “provisions to ensure (their) rights” are not incorporated. Some of their views were incorporated in the parliamentary panel report but

farmers argue that the government needs to do more to safeguard their rights over seeds. The government tabled the controversial Seeds Bill in the Rajya Sabha in December 2004, with the intention of facilitating greater entry of corporates in the seed sector and making registration of seeds mandatory. The Bill was subsequently referred for review to the parliamentary standing committee on agriculture headed by Ram Gopal Yadav. The standing panel took about two years to review the Bill and recently submitted its report, following which the Union agriculture ministry is slated to re-introduce the Bill. The House panel, noting that Plant Varieties Protection & Farmers’ Rights (PVP & FR) Act 2001 protects peasants’ rights over seed, said the act must be made fully operative first before implementing the proposed Bill. Besides, the panel exempted registration of seeds bred by farmers. Dr Krishan Bir Chaudhary, leader of the Bharat Krishak Samaj, said at his behest, the panel proposed deletion of the latter part of Clause 43 (I) of the Bill which placed a rider on farmers’ saving seeds for reuse. He said: “In my personal view, farmers should be allowed to save and exchange any seed they cultivate — branded or unbranded.” The UPA government’s Left allies have echoed similar sentiments. The general secretary of the CPI’s farmers’ wing, Atul Kumar Anjaan, said: “There is no need to hurry the passage of the Bill in Parliament. A long debate is necessary. There will be no adverse effect on farming if this Bill is not passed in its present form.” Meanwhile, Dr Suman Sahai, convenor of the Gene Campaign, who deposed before the panel, alleged that “though the House panel included some major suggestions, it missed some vital points”. He said that disclosure of parentage should

be made mandatory for companies when they register their seed varieties as this would prevent bio-piracy. He also sought a registration period for seeds on the lines of PVP & FR Act without scope for automatic extension. Dr Vandana Shiva of Navdanya who also appeared before the House panel said that the recommendations on genetically modified (GM) crops are not stringent enough. The panel opposed the proposed provisional registration of GM seeds and also self-certification of seeds by seed companies, saying it would facilitate backdoor entry of unapproved GM seeds. --------- India, Canada ink MoU on bio-technology http://www.financialexpress.com/fe_full_story.php?content_id=148258 ASHOK B SHARMA ECONOMY BUREAU Posted online: Thursday, December 07, 2006 at 0000 hours IST NEW DELHI, DEC 6: India on Tuesday signed two memoranda of understanding (MoUs) with Canada to strengthen cooperation in science and technology, particularly in the areas of plant biotechnology and food. One of the MoUs was signed between the Indian Department of Biotechnology (DBT) and the Department of Agriculture and Agri-food of Canada (AAFC). DBT secretary, MK Bhan and Canadian deputy minister for agriculture and agri-food, Leonard Edwards signed the MoU which signifies cooperation in agriculture food processing and storage, bio-pesticides and bio-fertilisers, functional and nutraceutical food, agricultural biotechnology, biomass utilisation, sustainable alternative energy and environmental technologies and water quality management. The

other MoU was signed by vice president of National Research Council of Canada, Roman Szumski and senior advisor in DBT, S Natesh. This MoU is for initial collaboration between the two institutions for harnessing plants for improving human and animal health and for understanding and exploiting genomics of plants of common interests to both the countries. Both the MoUs were signed in presence of the Indian science and technology minister, Kapil Sibal. As part of fulfilling Prime Minister Man Mohan Singh’s promise to Punjab, a ‘Knowledge City’ is being planned at Sector 81, Mohali. Spread over an area of 350 acres, the Knowledge City will comprise the National Institute of Nanotechnology, Indian Institute of Science Education and Research as well as an Agri-food cluster. Department of Biotechnology is involved in planning the agri-food cluster. ----------------------------- Industry calls for increase

in bio-diesel sale price http://www.financialexpress.com/fe_full_story.php?content_id=148187 ASHOK B SHARMA/COMMODITIES BUREAU Posted online: Wednesday, December 06, 2006 at 0205 hours IST NEW DELHI, DEC 5: The Biodiesel Association of India (BAI) on Tuesday called for an increase in the selling price of bio-diesel to make its production economically viable. The proponents of bio-diesel have come together to form Biodiesel Association of India (BAI) to press their demand.The government had fixed the ex-refinery bio-diesel sale price at Rs 25 per litre in October last year, and later revised it to Rs 26.50. The industry, however, feels it should be allowed to sell it at par with

diesel prices as raw material sourcing is a problem. Diesel is currently sold in Delhi at Rs 31.35 per litre. Advocates of bio-diesel have suggested to the government to create adequate environment for facilitating an investment of Rs 30,000 crore in the sector in the next three years. Out of this proposed investment of Rs 30,000, about Rs 20,000 crore should be earmarked for investment in processing of oil from jatropha and the remaining for its cultivation. According to BAI, the proposed Rs 30,000 crore investment in three years would generate permanent employment for 4 million people. If the programmes run as per schedule, it would result in an annual turnover of Rs 33,000 crore for the next 35 years and result in saving of Rs 25,300 crore in foreign exchange outgo, which is mainly due to huge bulk import of crude oil. Addressing a press

conference here on Tuesday, BAI president, Sandeep Chaturvedi, said: “There are about 55 million hectares of wastelands in the country. These wastelands can be used for cultivation of jatropha. We have asked the Union government for a comprehensive policy on bio-fuels and sympathetic consideration of state governments for the programme.” On pricing, he said that bio-fuel oil should be priced at par with the retail prices of diesel. Chaturvedi is also the director of Gujarat Olio Chem Ltd and BAI has three vice presidents - Emani Biotech director, SK Mondal for eastern region, Garware Chemicals director, AM Deshpande for western region and Nova Biofuels director Rajiv Gulati for the northern region. “The government policy need to clearly demarcate food security concerns and facilitate cultivation of Jatropha on wastelands. No crops used for food should be used for production of bio-diesel,” said BAI secretary

and chairman, Cleancilies Biodesel India, Srinivas Prasad Moturi. BAI treasurer and general manager, Ruchi Soya Industries, VK Jain said that state governments of Chhattisgarh, Orissa, Tamil Nadu, Gujarat, Rajasthan, Uttaranchal and Andhra Pradesh are encouraging cultivation of Jatropha in a big way. Jatropha oil is most suitable for blending with diesel - Farmers' body - CIFA - for repeal of Revenue Recovery Act http://www.financialexpress.com/fe_full_story.php?content_id=148189 ASHOK B SHARMA Posted online: Wednesday, December 06, 2006 at 0213 hours IST NEW DELHI, DEC 5: The farmers, presenting their demands to the government before the forthcoming Union Budget, have

called for waiver of loans as a matter of policy on account of two successive crop failures in the region. They have also demanded waiving of interest on account of one crop failure. The Consortium of Indian Farmers’ Association (CIFA) after two days of its annual conference finalised the demands, said P Chengal Reddy, chairman of the Andhra Pradesh Federartion of Farmers’ Association. “The farmers’ conclave, however, avoided deliberating on the controversial issues relating to genetically modified (GM) crops and execessive use of chemicals in agriculture. It deliberated on immediate demands of farmers, keeping in view the forthcoming Union Budget,” said an organic farmer from Rajasthan, Krishan Kumar Jakhar. CIFA prepared commodity-wise demands relating to various ministries of the government. In matters relating to the finance

ministry, it said that simple interest of 4% should be charged on all kinds of farm loans, crop insurance premium should be brought down to 1% and assessment of damage should be done on individual basis and cover all risks on all commodities. It called for one-time investment for completion of all irrigation projects, pending which free power supply should be provided to farmers. It also sought waiver of excise duty on farm inputs like pesticides, veterinary medicines, drips and sprinkler sets, plastics and steel used in farm implements, ready-to-eat food and natural fruit juices and food processing equipment. CIFA also called for repeal of the Revenue Recovery Act for farmers’ dues, democratisation of management of market yards, farmers’ committees should manage water use and have representatives in the electricity boards. CIFA has urged

recognition of tribals councils in northeastern states for routing loans to farmers, income tax exemption for all farm activities and cooperative banks and for private sector engaged in farm research and extension. CIFA also asked for placing agriculture and irrigation under the concurrent list under the Constitution, increase in farm budgetary allocation in tune with the GDP, according infrastructure status to irrigation and agriculture status to aquaculture. It also sought handing over the management of all commodity boards to farmers’ organisations. In matters relating to commerce ministry, CIFA suggested formulation of a long-term export policy in consultation with farmers and setting up of a regulatory body for deciding import duties in consultation with farmers. It called for scrapping of the present provision of acquiring farmland for MNCs and SEZs. CIFA also called for repeal of the

Revenue Recovery Act for farmers’dues, democratization of management of market yards, farmers’ committees should manage water use and have representatives in the electricity boards. Arecnut should be removed from the purview of Food Adulteration Act and there should be no discrimination between bidis and cigarettes in matters of health warnings. CIFA further called for decentralization in farm research, banning of vannamei imports, market intervention in all commodities when prices fall, --- New govt agency set to hardsell rural products http://www.financialexpress.com/fe_full_story.php?content_id=148254 ASHOK B SHARMA ECONOMY BUREAU Posted

online: Thursday, December 07, 2006 at 0000 hours IST NEW DELHI, DEC 6: The rural development ministry has decided to set up a National Rural Products Marketing Agency (NRPMA) under the Societies Registration Act, 1860, as an exclusive agency to promote rural micro-enterprises in the country. The agency shall integrate the marketing facilities available in various states and adopt an integrated strategy to promote the sector and all its interventions based on the felt needs of the producers. This agency will also promote rural products, particularly in large number of handicraft related sectors through cluster-based approach. The government feels that its aim of poverty alleviation and employment generation can be achieved to an extent through rural micro-enterprises. Under the self-employment programmes of the ministry,

the need for creating a national level rural marketing facilitation network having resources and skills to facilitate and assist rural producers have been felt. A committee to look into the matter emphasised that the problems of marketing of the products of beneficiaries under the government’s self-employment schemes can be resolved through a progressive and futuristic rural marketing agency. The ministry is also implementing a scheme to provide temporary jobs to the rural jobless under the National Rural Employment Guarantee Act 2005. According to the Section 6(1) of this Act, central government may, by notification, specify the wage rate for the purpose. The wage rate by such notification shall not be at a rate less than Rs 60/- per day. The Centre has, however, not fixed any wage rate under the Act so far. Section 6(2) of the Act, further provides that until such time a wage

rate is fixed by the central government in respect of any area in a state, the minimum wages fixed by the state government under Section 3 of the Minimum Wages Act, 1948, for agricultural labour shall be considered as the wage rate applicable to that area. ----- Take steps to meet rural road targets, Singh tells CMs http://www.financialexpress.com/fe_full_story.php?content_id=148252 ASHOK B SHARMA ECONOMY BUREAU Posted online: Thursday, December 07, 2006 at 0000 hours IST NEW DELHI, DEC 6: Rural development minister Raghuvansh Prasad Singh has requested chief ministers of 9 states to personally review rural road connectivity programme and take corrective measures to

achieve targets for the current year. Rural road connectivity is an important component of the government's multi-crore Bharat Nirman programme. In letters to the chief ministers of Assam, Chattisgarh, Jharkhand, Orissa, Madhya Pradesh, West Bengal, Uttar Pradesh and Rajasthan, Singh wrote that a special window in Nabard was being set up during the current year, to raise Rs 4000 crore for rural roads. This amount will supplement the budget outlay of Rs 5225.62 crore. He said unless states enhance their absorption capacity and project management capacity, there was a serious risk that the available funds might not be totally utilised. The minister cautioned that performance status of Bharat Nirman projects were being reviewed every quarter by the National Rural Infrastructure Committee headed by the Prime Minister. In his letter to Assam chief minister Tarun Gogoi, Singh said against the annual expenditure

target of Rs 875 crore, only Rs 276.23 crore had been spent till October on the programme. He said Assam's achievement percentage had only been 16%. In his letter to Chhattisgarh chief minister Raman Singh, Singh said that the state had spent only Rs 295.44 crore till October against its annual expenditure target of Rs 952 crore under the programme. He said the Chhattisgarh's percentage of achievement has been 14%. Jharkhand chief minister Madhu Koda was told that only Rs 28.32 crore had been spent by the state against the annual expenditure target of Rs 91 crore, resulting in 5.22% achievement for setting up new link roads. Orissa chief minister Naveen Patnaik had been informed that only Rs 309.72 crore had been spent by his state till October against its the annual expenditure target of Rs 950 crore. . In his letter to Madhya Pradesh chief minister Shivraj Singh Chouhan, Singh

said Rs 490.82 crore had been spent by the state till October against the annual expenditure target of Rs 1113 crore. The achievement percentage for the state has been 21.24%.West Bengal chief minister Buddhadeb Bhattacharya has been informed that only Rs 199.69 crore have been spent by the state on the programme against the annual expenditure of Rs 648 crore. Singh wrote to Uttar Pradesh chief minister Mulayam Singh Yadav that his state had been able to spend only Rs 416.47 crore on the programme against the annual expenditure target of Rs 1099 crore. Singh wrote that the percentage of achievement in the state had been 25.22%. The minister informed Rajasthan chief minister Vasundhara Raje that her state had spent only Rs 523.18 till October as against the annual expenditure target of Rs. 600 crore under the programme. The percentage of achievement in setting up

of new link roads has been 41.54%.---------

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