Current Affairs PDF

Union government to fix the MSP of Bt cotton seed

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

The Union Government notified maximum sale price of Bt cotton seed for 2016-17. The government for the first time has taken a decision in the favour of Farmers. The notification was released as per the Cotton Seed Price (Control) Order, 2015 that was issued under the Section 3 of the Essential Commodities Act, 1955.

The new price fixationUnion government to fix the MSP of Bt cotton seed

  • The price ofBG-I version of Bt cotton hybrid (9450 grams of Bt Cotton plus 120 grams refugia) was fixed at 635 rupees
  • The price ofBG-II version was fixed at 800 rupees

Flash points

  • Previously the price fixation was done by MNC’s like Monsanto
  • They ensured the availability of the seeds but the price was too heavy for the marginal farmers to afford
  • Hence the government decided to fix the price on its own to safeguard the interests of Marginal farmers
  • A nine member committee was set up to recommend the maximum sale price after taking into consideration the seed value, licence fees including one-time and recurring royalty (trait value), trade margins and other taxes
  • Last season the price ranged between 830-1300
  • With the new price fixation the price is likely to reduce by 70%

Points to note

  • Agriculture Minister- Radha Mohan Singh
  • Mahyco Monsanto Biotech India ltd CEO– Shilpa Divekar Nirula