Monsanto in a joint venture with Mahyco Monsanto Biotech (India)(MMB) is a monopoly supplier of Genetically modified (GM) cotton seeds in India. Despite of many criticisms the Monsanto was successful in entering the Indian market for seed supply from 2002.
Competition Commission of India (CCI) has ordered an enquiry after receiving some complaints from the local farmers along with some of the related associations about its pricing using the advantage of capturing 90% of the cultivation seeds are GM.
MMB is a licensed producer of pesticides and holds a number of local seed supplying companies in lieu of royalties and upfront payments. MMB also markets the seeds directly inspite of the local seed companies holding 90% of the seed supplying market.
On the other hand the Monsanto in a joint venture with Mahyco Monsanto Biotech have stated that they are charging the world’s lowest prices for Indian seed companies. Both the companies in Joint Venture Business have stated that they are transparent and the charges will be proven as fatal.They also assured full pledged co-operation for the CCI in conducting the enquiry.
One of the Minister involved in this issue has stated that the Indian Govt. is keen to supply the GM cotton seeds at the lowest prices to the farmers.