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AP to compensate cultivators of BT, Monsanto comes under fire

Agencies - Hyderabad

Andhra Pradesh government has promised to compensate the farmers whose Bt cotton crops failed even as the opposition demanded that Monsanto Corporation, which introduced the crop, be “blacklisted”. There have been reports that the first genetically engineered cotton crop in Andhra Pradesh has failed.

Voicing concern over extensive losses suffered by farmers who opted for genetically modified cotton seeds, introduced by multinational seed major Monsanto, the opposition Congress members demanded that the company be blacklisted and compensation be paid to farmers.

While admitting that Bt cotton crop’s yield was ‘lower than expected resulting in reduced market value realisation’, the agriculture minister Mr V Shobhanadreshwar Rao said the genetically engineered seed was only designed to fight ‘bollworm’ pest which was the cause of extensive crop damages in the past.

As many as 6,929 farmers in 1,520 villages had raised the cotton crop last year spread over 9.341 hectares in the state. This followed approval for commercialisation of Bt cotton seeds by the Centre. “Certain farmers have complained of smaller boll size and lesser staple length for Bt cotton compared to other hybrids in the market,” the minister said, adding that the farmers would be ‘informed about the experience’ gained during the current season.

The Congress members Mr M V Mysoora Reddy, Shankar Rao and T Jeevan Reddy alleged that the seed company had ‘misled’ the farmers by promising higher yields and demanded payment of compensation for farmers. The minister said the government would take necessary measures, invoking the memorandum of understanding signed with the seed company, to ensure payment of compensation in deserving cases. However, factors like soil conditions and farming practices would also be considered before deciding on the compensation. The genetically engineered cotton seeds were being extensively used in the United States, China and other countries, Mr Shobhanadreshwar Rao said.

“The company (Monsanto Corporation) would be requested to reduce the seed price drastically. The present price is Rs 1,600 for a packet of 450 gm of seeds (which will suffice for one acre of crop),” he said.

Seven more companies to commercially release Bt cotton seeds

Response to the trangenic Bt cotton has been favourable and about seven more companies are preparing to release their genetically modified cotton hybrids for commercial use shortly, a study conducted by Rabobank International says.

The study also forecasts further consolidation of Indian seed industry, which is already among the top 10 in the world, with small players either exiting the market or being acquired by larger players. Quoting industry sources, the study says Mahendra and Paras of the Emergent Group, Nath Seeds, Ankur Seeds, Ajeet Seeds, Raasi Seeds, Krishi Dhan and Nuziveedu Seeds are preparing to release their Bt cotton hybrids for commercialisation by 2006.

While Nath is sourcing the gene from the Biocentury Transgene Company, a Chinese firm, the other players have entered into sub licensing agreements with Monsanto. Bt cotton was developed and first commercially launched in India by Mahyco-Monsanto last year. The study says in near future multinational companies could invest more to develop or outsource capabilities in transgenic technologies.

The recent reports on the performance of Bt cotton suggest that the response has been fairly acceptable and that the technology can offer the farmer a net cost benefit, it says. A significant decrease in the total level on cotton this year does, however, leave the real merit of the technology as yet untested, it adds. Insecticide consumption will depend on the acreage of Bt cotton over the next few years.