New Delhi, India
August 16, 2007
Source:
Financial Express,
08/07/07 via USDA/FAS GAIN
Report
The government’s hesitation to
allow the sale of genetically modified food and cash crops other
than cotton is crimping the growth of the biotech-based seed
industry.
After Bt cotton received the nod
in 2002, the government has withheld approval for the
commercialization of any other genetically modified (GMO) crop.
The government’s stringent bio-safety norms have been partly
blamed for the delay.
In the past, several state
governments, including Andhra Pradesh, Tamil Nadu, Gujarat,
Maharashtra and Karnataka have tried to control Bt cotton seed
prices, as cotton seed was an essential commodity.
However, the central government’s
decision to remove cotton seed from the list in February
prompted the Andhra Pradesh government to introduce an ordinance
to regulate prices in the state last week. The ordinance aims to
cut prices of the new Bt cottonseed variety, Bollgard-II, by 21
percent to Rs.750 per 450-gram packet.
Bt cotton has found favor with a
section of farmers due to higher yields and reduced pesticide
costs. However, there is opposition to GMO crops on several
counts, including higher cultivation costs.
Trade sources said more than half
of cotton area is expected to be under GMO cotton in the 2007
crop season, but a high adoption rate will not be enough for
growth.
“Although adoption has been
higher, earnings will be comparatively lower, thereby impacting
new investments,” said R.K. Sinha, Executive Director of
All India Crop Biotechnology
Association. |
