Monsanto, a US based agrochemical and agricultural biotechnology company, has been in news for its controversy over rights exercised by them based on their Indian patent 232681 related to genetically modified cotton seeds (Bollgard II). These seeds were obtained by introgression of certain genes of bacteria Bt (Bacillus thuringiensis) into cotton genome, thereby improving its resistance towards one of the deadliest cotton pest, bollworm. Monsanto, in a joint venture with an Indian company Mahyco Seeds Limited, has been licensing this patented technology (Bollgard II) to around 49 other Indian seed companies within the scope of agreements and royalty payments. In this way, over the last decade, around 90% of the cotton grown in India were making use of the patented technology from Monsanto, which improved drastically the cultivation of cotton since 2002, as per the reports.

However, over some years, legislation enacted by state governments for controlling retail prices has affected Indian companies as the legislation had no effect on royalty charges being paid to Monsanto. Due to this, the National Seed Association of India (NSAI), comprising of several Indian seed companies, have been in a dispute with Monsanto. Moreover, there have been reports of patent invalidity proceedings at DIPP (Department of Industrial Policy and Promotion) based on the clauses of Section 66 of Patents Act that could revoke a patent on grounds that the patent is “mischievous to the state or generally prejudicial to the public”.

As per reports, the Indian government slashed the royalty fees charged by Monsanto over Bt cotton seeds by 74% in March 2016. This move seems to have discouraged Monsanto from launching new seeds called Bollgard II Roundup Ready Flex technology in India, anticipating future losses. It said that it will “re-evaluate every aspect” of its position in India and re-think bringing new technologies in a regulatory environment that is “arbitrary and innovation stifling”.

Monsanto is currently being acquired by Bayer amidst its battle with Indian seed companies and Government over royalty prices. Meanwhile, NSAI has been making further moves by writing to the agricultural ministry stating that Monsanto has been falsely representing patent rights over seeds and plant varieties. The Indian Government expects to develop its own genetically modified cotton seeds to end Monsanto monopoly.

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