India cuts Monsanto cotton seed royalties

The Indian government cut royalty fees on genetically modified cotton by 70 percent, despite Monsanto Co.’s threat that it might pull its biotech cotton seeds from the nation in protest.

St. Louis-based Monsanto, which sells its cotton seed in India through joint venture Mahyco Monsanto Biotech, said Sunday that if the ministry moved ahead with its previously announced plan to cut the fees that seed companies pay Monsanto/Mahyco to use their crop genes, the two “will have no choice but to re-evaluate every aspect of our position in India.”

India’s government already regulates the price of cotton seeds, but the new rules also govern the fees other seed developers pay to use the two companies’ plant genes.

Monsanto and Mahyco are challenging the new rules in court. On Wednesday, Monsanto said it was reviewing the Indian government’s royalty fee hike and would continue its legal challenge, which could result in a lengthy legal battle, the Wall Street Journal reports.

Read more: St. Louis Business Journal

Tags:, ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students