Monsanto settles Rs 300 crore royalty dispute with three local seed companies

In a letter to the agriculture ministry, Mahyco Monsanto Biotech Ltd said it has "amicably settled" the dispute with three Indian companies --Ajeet Seeds, Kaveri Seed Co Ltd and Ankur Seeds. According to sources, these three companies owed about Rs 300 crore.

By: PTI | New Delhi | Published: October 12, 2017 4:05 pm
US biotechnology major Monsanto, Mahyco Monsanto Biotech Ltd, Nuziveedu Seeds Ltd, Ajeet Seeds, Kaveri Seed Co Ltd and Ankur Seeds, Sri Rama Agri Genetics, India news, National news, latest news,  India Business news Meanwhile, Monsanto has appealed against the government decision to fix cotton price along with trait value (royalty) under the Cotton Seed Price Control Order. The case is pending with the Delhi High Court. (File)

US biotechnology major Monsanto’s Indian JV has settled royalty dispute with three Indian cotton seed companies that have cleared payment dues of about Rs 300 crore and the arbitration process is on with five other firms. Mahyco Monsanto Biotech Ltd (MMBL), a joint venture firm of Monsanto, has sub-licensed Bt cotton seed technology to various domestic seed companies since 2002. However, eight licensees including Nuziveedu Seeds Ltd (NSL) refused to honour their commitments to pay MMBL over Rs 450 crore after collecting these amounts from cotton farmers in kharif 2015.

In a letter to the agriculture ministry, MMBL said it has “amicably settled” the dispute with three Indian companies –Ajeet Seeds, Kaveri Seed Co Ltd and Ankur Seeds. According to sources, these three companies owed about Rs 300 crore.

The arbitration process to settle the matter with the rest five companies, including Nuziveedu group firms, is still on and they together owe about Rs 160 crore, they added. The Nuziveedu group firms — Nuziveedu Seeds Ltd, Prabhat Agri Biotech Ltd and Pravardhan Seeds Pvt Ltd — together owe Rs 145 crore and the rest Rs 15 crore by Amar Biotech Ltd and Sri Rama Agri Genetics.

Stating that MMBL is committed to resolving the disputes, the company’s Director Shilpa Divekar Nirula in the letter said: “…the outstanding disputes with the few companies, namely NSL group of companies, Amar Biotech Ltd and Sri Rama Agri Genetics, who follow NSL’s lead on the disputes, continue.”

“The arbitration proceedings are ongoing before various fora across the country,” she added. MMBL said many seed companies had ended their dispute with the company in early 2015-16 except for eight, which were referred to arbitration.

Meanwhile, Monsanto has appealed against the government decision to fix cotton price along with trait value (royalty) under the Cotton Seed Price Control Order. The case is pending with the Delhi High Court.

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    Shibu
    Oct 16, 2017 at 8:39 pm
    All the seeds from monsanto should be tested for their base or seeds of orgin, It could be that the orginal seeds, which were genetically modified were from other countries. Monsanto has to pay that country for all the profit it made (historical and present) for that seed.
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      Shibu
      Oct 16, 2017 at 8:20 pm
      Also company claimed it to be Pesticide resistant but the cost of pesticides and fertilizers required only increased year by year like hell, increasing the cost for farmers. There were no benefits of pest resistant seeds as claimed by company. Apart from a cheap joke on nature, It is a cheap strategy to monopolise the seed market by selling fruit and vegetables which doesn''t have seeds. Indian breeds being one of the best breeds in the world. If we genetically examine the monsanto seeds and it comes out to be of Indian or other origin, they should sue back and ask back all the royalty.
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        Shibu
        Oct 16, 2017 at 8:19 pm
        You have to sue back the company, asking back all the money paid by other Indian firms in royalty. The increase in yield was also due to increase in area of the land under cultivation. we need to see how much yeild did the company claimed and how much was the real yield. Also how much was the yield in China and Africa. If yield in China and Africa were lower, it means yield in India were higher due to other good practises employed in India.
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