Monsanto-Mahyco pursued over farmer compensation

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GMW: Monsanto-Mahyco pursued over farmer compensation

" GM WATCH " <info

Sat, 7 Jan 2006 11:54:54 GMT

 

 

GM WATCH daily

http://www.gmwatch.org

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1.Andhra to pursue farmers' compensation with Mahyco

2.AP govt to cancel licence of Monsanto Mahyco company

 

EXCERPTS: Based on the reports of 20 expert teams, the state government

had verified that the farmers had indeed been duped by the seed

company, which had entered into a memorandum of understanding to pay

compensation in case the seed quality led to crop failure.

 

" If Mahyco does not pay compensation this season, we will not hesitate

to cancel their license and also fight them in the high court " -

Agriculture Minister N. Raghuveera Reddy

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1.Andhra to pursue farmers' compensation with Mahyco

Hyderabad, January 07, 2006

http://news.webindia123.com/news/showdetails.asp?id=212597 & cat=Business

 

Andhra Pradesh Saturday threatened to cancel the licence of the

Maharashtra Hybrid Seed Company (Mahyco) if it didn't compensate

farmers for

poor quality seeds leading to the failure of Bt cotton crop in the

state.

 

The warning came ahead of the Monopolies and Restrictive Trade

Practices Commission (MRTPC) hearing on the state government's petition

challenging Mahyco for charging a high premium for the Bt strain in the

cottonseed providing protection against bollworm.

 

The MRTPC hearing is on Jan 10. Mahyco is a subsidiary of global seed

major Monsanto.

 

During the kharif summer crop last year, the Bt cottonseeds supplied by

Mahyco had failed in 25,000 acres in Warangal district besides in other

areas too.

 

" The case we have filed on behalf of the farmers is only on one issue -

Monsanto is charging abnormally high trait value for the Bt

cottonseed, " said Agriculture Minister N. Raghuveera Reddy addressing

a press

conference on the sidelines of the Indian Science Congress, which

concluded

Saturday.

 

Based on the reports of 20 expert teams, the state government had

verified that the farmers had indeed been duped by the seed company,

which

had entered into a memorandum of understanding to pay compensation in

case the seed quality led to crop failure.

 

" In the case of seed performance, though we tried our best to get them

to honour their contractual agreement, the compensation to farmers has

not been paid. "

 

This resulted in the government serving notice and ultimately

blacklisting Mahyco Bt cottonseeds during the kharif season this year,

the

minister said.

 

As an interim arrangement the state government has paid compensation to

the affected farmers who had an agreement with Mahyco.

 

" If Mahyco does not pay compensation this season, we will not hesitate

to cancel their license and also fight them in the high court, " said

Reddy.

 

On the case filed in MRTPC, Reddy said it has been done as Mahyco is

charging a trait premium, for which Monsanto holds the patent overseas,

of Rs.1,250 per 450 grams of seed in India, while in the US it is

charging only Rs.108 for the same quantity of Bt cotton seeds.

 

Further, the Indian subsidiary of Monsanto is paying farmers only

Rs.250 per 450 grams for production of seeds, while its market price has

been fixed at Rs.450. Together with the trait charge, the farmers have to

pay Rs.1,850 per 450 grams packet for the kharif crop (harvested in

winter) as against Rs.1,750 last year.

 

As against just 10,000 acres a couple of years back, Bt cotton is being

grown currently in 550,000 acres in Andhra Pradesh alone.

 

The minister said the high trait premium would be challenged against

all Bt cotton seed providers.

 

Reddy expressed concern that the seed companies are not training

farmers in the use of genetically modified seeds, which has led to

them being

unaware that Bt cotton provides protection only against the bollworm

problem.

 

He admitted that the budnecrosis virus, normally found to kill

groundnut crop, had been found to spread to cotton crop, including Bt

cotton

this year.

 

The state government has meanwhile taken up with the central government

and the agriculture minister the field trial of Bt okra (ladyfinger)

undertaken by Mahyco at Narokoduru village in Guntur district without

prior information.

 

Angry farmers in the area had burnt down the crop on learning that

field trials were being done.

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2.AP govt to cancel licence of Monsanto Mahyco company

Hyderabad, January 07, 2006

http://news.webindia123.com/news/showdetails.asp?id=212772 & cat=India

 

Andhra Pradesh Agriculture Minister N Raghuveera Reddy today said the

government would cancel the licence of Monsanto Mahyco, supplier of Bt

cotton seeds, if the company did not pay compensation to the farmers who

lost their crops this year.

Addressing the press at the 93rd Indian Science Congress here, Mr Reddy

said the state government would not hesitate to cancel the licence of

Mhayco, one of the four suppliers of Bt cotton seed, if its mamagement

did not pay compensation to the affected farmers.

 

Stating that the government has filed a case in MRTPC on the pricing of

Bt cotton seeds by the Monsanto in the state, the minister pointed out

that the company was charging Rs 108 for 450 gram seeds in the United

States whereas the company's price was Rs 1250 in the state.

 

He said the government was taking precautionery measures to curb the

supply of spurious seeds by the distributers in the state. So far, 57

distributers had been arrested in this connection.

 

 

 

 

 

 

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