India has fixed the maximum price for BG-II variety of BT cotton at Rs 800. Biotechnology enterprises are now prohibited from selling the BT cotton seeds above Rs 800 per packet of BG-II variety.

The decision was taken to bring BT cotton seeds under price control to bring uniformity in prices across the country in view of farmers feeling the pinch of bloated seed prices.

Monsanto had recently threatened to re-evaluate its presence in India and hold back new technology if the plan to reduce the trait value is not rolled back.

Mahyco Monsanto Biotech, a joint venture between Monsanto and Maharashtra-based Mahyco, has sub-licensed BT cotton seed technology since 2002 to various domestic seed companies.

The Indian government has only fixed the maximum sale price of the commodity itself, but not the price of discrete components of an essential commodity such as license fee that comprise the final sale price.

The fixed trait value is Rs 49 per packet of 450 grams.

In contrast to Rs 830 to Rs 1,100 cotton seed prices, the agriculture ministry in March had notified the MSP rate along with a pan-India ceiling price of BT cotton seeds at Rs 800 a packet on BG-II variety.

These fixed prices were recommended by a committee set up by the agriculture ministry and a notification was issued on December 7, 2015.