INSUBCONTINENT EXCLUSIVE:
position as a supplier of genetically-modified (GM) cotton seeds in the country, three sources with direct knowledge of the matter told news
agency Reuters.Fair trade regulator CCI in 2016 ordered the unit to carry out the probe after the agriculture ministry and some local seed
companies complained that Monsanto was charging unreasonably high royalty fees for its GM technology.The investigation unit's report will
now be reviewed by senior members of the CCI
The watchdog has powers to impose a penalty of up to 10 per cent of the company's relevant turnover in the past three financial years if
it agrees with the report's findings.The CCI did not respond to Reuters queries.An Indian spokesperson for Monsanto also did not respond
Monsanto was acquired by German pharmaceutical and chemical maker Bayer AG in a $63-billion deal last year.Mahyco Monsanto Biotech
(India)(MMB), a joint venture with Mahyco, licenses a gene that produces its own pesticide to a number of local seed companies, in lieu of
royalties and an upfront payment
MMB commands more than 90 per cent of the cotton market.The CCI investigation unit's probe found that Monsanto abused its dominant
position in the market to hurt rivals, and that the royalty it charged was unfair, the sources said."The company's agreements with seed
companies were anti-competitive," said one of the sources aware of the probe's results.A second source familiar with the CCI's findings
said the watchdog had found MMB had abused its dominant position and set its "trait fees", or royalties, to extract maximum profits from
captive customers.Monsanto launched the GM cotton variety in India in 2002 despite opposition from critics who questioned the safety of
genetically-modified crops
It has been locked in a battle with seed makers including Nuziveedu Seeds, which is one of the complainants at the CCI.The agriculture
ministry has slashed royalties that local seed companies pay to Monsanto
After a spate of unfavourable government orders and a tussle over royalty payments, Monsanto in 2016 withdrew an application seeking
approval for its next generation of GM cotton seeds in the country.Election Results for Lok Sabha Election 2019 will be out on May 23
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