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Child Bondage Continues in Indian Cotton Supply Chain

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acres) are under the direct control of MNCs, namely Monsanto and Bayer, and the rema<strong>in</strong><strong>in</strong>g<br />

area is controlled by <strong>Indian</strong> companies like Raasi, Nuziveedu, Tulasi, Ankur, JK Seeds, Vikram,<br />

Krishidhan, Naath Seeds and Nandi Seeds. Monsanto, which has patent rights over BT gene,<br />

has <strong>in</strong>direct control over a large production area through its sublicense agreements with<br />

<strong>Indian</strong> seed companies. All the major <strong>Indian</strong> seed companies have sublicensed BT gene from<br />

Monsanto 12 .<br />

Table 4: Approximate area under hybrid cottonseed production <strong>in</strong> India by company dur<strong>in</strong>g<br />

2006-07 (area <strong>in</strong> acres)<br />

Name of company Andhra<br />

Pradesh<br />

Gujarat Karnataka Tamilnadu Other<br />

states<br />

Total<br />

area<br />

Mult<strong>in</strong>ational companies<br />

Monsanto 2200 400 800 3400<br />

Bayer (Proagro) 60 220 280<br />

Mahyco (jo<strong>in</strong>t venture company<br />

with Monsanto<br />

<strong>Indian</strong> companies<br />

1500 2500 4000<br />

Nuziveedu 2000 6000 2500 10500<br />

Raasi 1150 600 4400 6150<br />

Ankur 1200 5000 6200<br />

JK Seeds 800 125 600 800 2325<br />

Tulasi 1800 100 1900<br />

Ajeeth Seeds 1500 1500<br />

Vikram 2000 2000<br />

Vibha 800 800<br />

Nath Bio 500 2000 2500<br />

Krishidan 1300 1300<br />

Amar Bio Tech 1400 1400<br />

KSSDC 3200 3200<br />

Other small companies 3600 6375 380 400 2500 12955<br />

Total 16010 25400 5000 9000 5000 60310<br />

Note : No official data are available on the total extent of area under cottonseed production and the<br />

area covered by <strong>in</strong>dividual seed companies. This <strong>in</strong>formation was gathered through discussions with<br />

representatives of seed companies and key <strong>in</strong>formants <strong>in</strong> seed <strong>in</strong>dustry circles.<br />

12 Monsanto through its jo<strong>in</strong>t venture company ‘Mahyco- Monsanto Biotech Limited (MMB)’ has sublicensed its<br />

BT technology to several seed companies <strong>in</strong> India. Under the sublicense agreement MMB permits sub licensees to<br />

use its BT technology by pay<strong>in</strong>g fixed ‘trait value’ (another name for royalty) on each packet of seed they sold <strong>in</strong><br />

the market. Sub licensees have to pay this royalty as long as they use MMB’s BT technology. In the <strong>in</strong>itial years<br />

MMB fixed trait value at Rs 1250 on each packet of seed (450 grams) and subsequently reduced it to around Rs<br />

100 <strong>in</strong> 2006-07 after Monopolies and Restrictive Trade Practices Commission directed the company to reduce the<br />

trait value and different state governments <strong>in</strong> India put the tag on maximum sell<strong>in</strong>g price of BT cottonseed <strong>in</strong> the<br />

market at Rs.750 per packet.<br />

14

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