Monsanto Pulls Launch of GM Cotton Seeds in India Over Dispute Over Royalties
25 Aug 2016 --- Monsanto has axed plans to launch its next generation of genetically modified cotton seeds in India, over a dispute with the Indian government about sharing the seeds' technology and royalties.
The US company's decision to withdraw an application seeking approval for its Bollgard gene technology seeds- which fight weeds which starve cotton crops of nutrients- marks a heightening of tensions between Monsanto and the Indian government.
According to a report from Reuters, a letter sent by Monsanto's local partner in India objected to the government's wish for Monsanto to share its technology with local seed companies.
In addition, Monsanto is also in dispute with the Indian government regarding how much it can charge for its genetically modified cotton seeds.
The decision to withdraw the application follows earlier noises from Monsanto that it had concerns about launching the seeds in India, after
the Indian government ordered a 70 percent cut in its royalists from companies using its Bollgard gene technology.
The move by Monsanto is likely to be a concern for India's prime minister Narendra Modi who is looking to make strides to make the country more open and attractive to foreign investors.
India has an estimated 7m cotton farmers who have grown accustomed to using genetically modified cotton seeds.
