Monsanto Co. recently withdrew an application that was seeking regulatory approval for cotton seeds to be sold in India. This took place in the middle of a debate with the government on the subject of royalty fees.
According to the spokesperson of Monsanto Co., Christi Dixon, the application was withdrawn on July 6 due to uncertainties on regulations and current discussions. The cotton seeds for which the application was made contain next generation technology as compared to those presently for sale in India and these are called the Bollgard II Roundup Ready Flex.
Last March, India cut royalties for these modified cotton seeds resulting in the St. Louis-based corporation to state that it would reassess its business in the said country. It can be recalled that in May, India had already provisionally withdrawn the limits on royalties.
Monsanto markets this product in India through Mahyco Monsanto Biotech or MMB. It is their shared business with Maharashtra Hybrid Seed Co. This venture provides legal permission for Monsanto technology to be given to seed companies prior to collecting trait fees.
India happens to be just one of several countries where Monsanto has issues. Last April, the production of Monsanto Cotton had stopped after Burkina Faso decided to phase it out. Burkina Faso is regarded as one of the biggest cotton growers in Africa.
Monsanto also had problems with Argentina. On June 24, Monsanto and Argentina had decided to agree on a collection of royalties specifically for the genetically modified soybeans to end several years of conflict.