The Hindu Business Line : Are tech fees for Bt cottonseed really high?

Much has been written about high technology fee charged on Bt. cottonseed sold in the country. It has been suggested that technology fee for Bt. cottonseed sold in other countries is much lower than in India.

The Monopolies and Restrictive Trade practices Commission (MRTPC) has asserted that there is scope for reduction of fees charged here and that India should take a cue from countries such as China to fix a lower fee. Based on MRTPC order, the State governments have started to dictate seed prices.

Price in China

Are such fees really low outside India? Information available with Business Line suggests otherwise. For instance, in world's largest cotton producer China, there is a large price differential between Bt cottonseed and non-Bt varieties. A cotton grower in China pays RMB 360 per acre for Bt cottonseed as against just RMB 72 for non-Bt hybrid cottonseed.

In other words, the technology cost paid by Chinese cotton grower is RMB 288 (RMB 360 minus RMB 72). If we apply the current exchange rate of RMB 1 = Rs 5.80, then RMB 288 translates to about Rs 1,670. In other words, an average cotton farmer in China pays Rs 1,670 towards trait value for every acre of seed planted. Interestingly, in China, the `so-called' high technology fee is charged by a company by name Biocentury Transgene Technology (China) Co Ltd. (BTC) in which the Chinese Government is a major shareholder.

In other words, the pricing of Bt cottonseed (including the level of technology fee) has the approval of the Chinese Government. BTC has nearly 80 per cent market share of Bt cottonseed acreage in China.

Technical experts suggest it is not uncommon to charge technology fee on per acre basis rather than on weight (or per kg) basis. This is because seed requirement can vary depending on several factors like plant type, plant population and soil type in addition to method of sowing.

More Stories on : Bio-tech & Genetics | Cotton | IPR

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