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Indian government’s hesitation to allow genetically modified cash crops other than cotton hurts the seed industry

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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.

 

 

 

 

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