Tag Archives: Mahyco

The Land of Promised Dough: Monsanto in India

money growing

Monsanto Co, the world’s biggest seed company, threatened to pull out of India on March 2016 if the government imposed a big cut in royalties that local firms pay for its genetically modified cotton seeds.

Mahyco Monsanto Biotech (India)(MMB), a joint venture with India’s Mahyco, licenses a gene that produces its own pesticide to a number of local seed companies in lieu of royalties and an upfront payment. MMB also markets the seeds directly, though the local licensees together command 90 percent of the market.  Acting on complaints of local seeds companies that MMB was charging high fees, the farm ministry last year formed a committee to look into the matter.

The committee has now recommended about a 70 percent cut in royalty, or trait fee, that the seed companies pay to MMB, government sources said. The farm ministry is yet to take a decision on the committee’s recommendation.  “If the committee recommends imposing a sharp, mandatory cut in the trait fees paid on Bt-cotton seeds, MMB will have no choice but to re-evaluate every aspect of our position in India,” Shilpa Divekar Nirula, Monsanto’s chief executive for the India region, said in a statement…

Separately, MMB has filed a case in a Delhi court, challenging the authority of the committee to determine the trade fee agreed upon by MMB and a number of Indian seed companiesIn a partnership with Mahyco, U.S.-based Monsanto launched a GM cotton variety in India in 2002 despite opposition from critics who questioned its safety, helping transform the country into the world’s top producer and second-largest exporter of the fiber.

In a ruling on Feburary 2016, the Competition Commission of India, the antitrust regulator, said there were indications that MMB had abused its dominant position in the country and asked its director general to complete an investigation within two months.  The government-appointed committee has also recommended cutting Bt cotton seed prices to about 800 rupees for a packet of 400 grams. Currently Bt cotton seeds are being sold between 830 and 1100 rupees in different parts of the country.

Excerpts from MAYANK BHARDWAJ, Monsanto threatens to exit India over GM royalty row, Reuters, Mar. 4, 2016

See also India v. Monsanto: the Eggplant

India versus Mosanto: the Bt Eggplant

The National Biodiversity Authority (NBA), India’s biodiversity-preservation watchdog, has finally woken up to its job. It has decided to prosecute multinational seed company Monsanto for allegedly using Indian brinjal varieties for commercial purposes without permission.   The decision was taken in a vote at a meeting on February 28, 2012. The majority of the members voted in favour of initiating action against Monsanto for violating India’s biodiversity law. The Ministry of Environment and Forests, too, is in favour of prosecuting the seed giant. The vote was essential as some board members of the NBA were against holding Monsanto to task, sources said. The decision is bound to send a clear cut message that any attempt to fiddle with the country’s biological wealth will not go unpunished.

The Indian law says it is essential for anyone desirous of using India-produced biological goods for commercial purposes to seek permission from the NBA. The authority’s nod is required even if, as in Monsanto’s case, the material has been modified by Indian universities.  The voting will reverse an earlier judgment, taken by the Karnataka state biodiversity board on January 20, 2012, that spared the alleged violators the rod.

The complaint against Monsanto, its Indian subsidiary Mahyco, and University of Agricultural Sciences, Dharwad, was filed by the Environment Support Group in February 2010. It had alleged that the accused illegally accessed and genetically modified six varieties of Indian brinjal to produce Bt Brinjal.

BT brinjal row: National Biodiversity Authority decides to prosecute Monsanto, India Today, April 17, 2012

See also Indian Abandons Case Against Mosanto

Biopiracy Claims Against Mosanto

Anti-GM India

Is India Abandoning Legal Action against Biopiracy?

From the Press Release of Environmental Support Group Feb. 7, 2012

In a shocking development, the Karnataka State Biodiversity Board [India] has resolved in its 19th meeting held on 20th January 2012 that it will not prosecute institutions and companies who violate the Biological Diversity Act.This highly controversial and illegal decision was taken in the context of reviewing [Environmental Support Group] ESG’s complaint of biopiracy against Monsanto and its Indian subsidiary Mahyco who along with their collaborators (University of Agricultural Sciences, Dharwar; Tamilnadu Agricultural University, Coimbatore; Indian Institute of Vegetable Research, Lucknow; Sathguru Foundation, Hyderabad; United States Agency for International Development and Cornell University, New York) wilfully violated the provisions of the Biological Diversity Act by illegally accessing 12 varieties of brinjal endemic to India and genetically modifying it, resulting in a patented product – B.t. Brinjal. This constitutes biopiracy, a criminal violation punishable with prison sentences.

The resolution passed by the Board is as follows: “The subject was deliberated and it was clarified that the subject comes under the purview of the National Biodiversity Authority. Therefore, it was resolved that it is for the National Biodiversity Authority to take necessary action at their end against institutions/companies regarding alleged violations of provisions under Biodiversity Act 2002.”

There is little doubt that this controversial resolution was passed to unhook Monsanto and its collaborators from biopiracy charges. It is tenable to draw such a conclusion as the current action agitates against the consistent position held by the Board that ESG’s complaint of biopiracy has merit and action must be initiated against the violators per the advise of the National Biodiversity Authority….This retrograde decision flies in the face of an assurance given to Parliament by Smt. Jayanti Natarajan, Indian Minister of State for Environment and Forests, as recently as on 28 September 2011. The Minister had stated that “(b)ased on preliminary information placed before it, the National Biodiversity Authority has recommended in principle to initiate legal action against alleged violators for violation of various provisions of the Biological Diversity Act, 2002”. …

This is more than likely to encourage more cases of biopiracy by corporates and thus seriously compromise biodiversity heritage and the food and social security that it extends to millions. Further, it will allow the loot of our natural wealth for maximising corporate profits by agricultural, biotech and pharmaceutical companies, while irreversibly jeopardising the economic and ecological security of present and future generations.

Excerpts from PRESS RELEASE, Karnataka abandons obligation to prosecute violators of Biological Diversity Act, Environmental Support Group, Feb. 7, 2012

Biopiracy Claims against Mosanto,Bio-engineered Food

The (Indian) National Biodiversity Authority (NBA) is learnt to have decided to proceed legally against Mahyco and Monsanto over “alleged violation” in using local brinjal varieties for development of (GM) brinjal (eggplant) without permission from the authorities concerned….The decision has been taken based on a complaint to the NBA that alleged that the private company used the local variety from Karnataka for developing the Bt brinjal, which was approved for commercial cultivation by the Genetic Engineering Approval Committee (GEAC), but was put under indefinite ban by the Environment Minister last year.

Bt brinjal: NBA to act against Mahyco, Monsanto, IndianExpress.com, Aug. 13, 2011