The seed war

GLOBAL seed technology giant Monsanto has pulled out its application seeking approval for a second-generation genetically modified (GM) cotton seed, indicating that it may pull out of India altogether. It has blamed the government's restrictive policies. As things stand today, Monsanto has absolute monopoly over the pest-resistant seed in the country, but at the same time the seed is responsible for making India the largest producer of the fibre, with a reduced use of pesticide. Farmers have benefited immensely, irrespective of complaints from the environment lobby. But the seed now needs an upgrade, which the company has sought.

It is the government's duty to protect farmers' and the national economic interest. If Monsanto pulls out entirely, it would be good for neither, because the government has no alternative to offer. The first Monsanto seed was introduced in 2006. The government has thus far been controlling the price, to which Monsanto submitted, even if grudgingly, as it still made a handsome profit. That is business. Both parties try and maximise their gains. What has finally triggered Monsanto's angry response is the demand to share its technology with local companies. That is as good as asking it to hand over the very company. A fundamentally research-driven business is nothing if not its intellectual property. This is an attempt to kill the goose that lays the golden egg.

Any company will try and maximise its profits, and exploit a situation whenever possible, such as gaining a complete monopoly. Multiple international seed companies, immediately after Monsanto's announcement, have rallied behind it by forming an association. The surest way for the government to guard against cartelisation is to encourage competition. But such is the investment and time required in seed development that competition would be hard to come by. In India perhaps government is the only entity that can take the initiative. If its agencies develop GM seeds, they can also do it minus the 'terminator technology', which Monsanto injects to make farmers pay for the seeds every year. But before that the government will have to stop vacillating on its approach to genetic modification per se.