The Union Agriculture Ministry recently issued the Cotton Seeds Price Control Order for 'uniform regulation' of sale price of cotton seeds with existing and future genetically modified technologies. Though the aim of this order is to control the licence fee, royalty trait fee and licensing terms on which the technology providers make available innovative technologies, the companies feel that the order will make a direct impact on their profit margin.

The seed companies are already in a tussle with their multinational technology partner Monsanto over the royalty issue. Monsanto has taken nine seeds companies to court over non-payment of around Rs 400 crores. In the event of the prices being reduced, the companies want royalty also to be similarly cut. For now, each state fixes its own royalty. Maharashtra last year had reduced the BT cotton seed selling price by Rs 100 to Rs 830 for a packet of 450 gm, in Telangana and Andhra Pradesh, it sells at Rs 930. The seed companies pay royalty in the range of Rs 100-150 to the technology provider.

Seed companies have alleged that the technology they use for BG-I and BG-II has not been upgraded by Monsanto for years now, and this order could further deny any new upgrades in seed technology to the farmers.