The interviewee has pointed out to the trait fees that are accrued to Monsanto in a very negative manner. It would be worth noting that there are six insect-tolerant technologies in cotton have been approved by the Government of India, out of which two belong to Mahyco Monsanto Biotech (MMB). Mahyco Monsanto Biotech (India) Limited (MMB) offers farmers the choice of its innovative insect protection Bollgard technologies. During the course of the last decade, the Government of India with respect to technology in cotton seeds has approved commercial release from four sources namely, Metahelix (Cry1C), Chinese Academy of Agricultural Sciences through Nath seeds (modified Cry1Ac), JK seeds (Cry1Ac) and Mahyco Monsanto Biotech (India) Private Limited (Cry1Ac and Cry1Ac + Cry2Ab). Indian seed companies are free to choose any of the approved technologies for inclusion in their seeds.
In such a competitive landscape, the choice of any particular technology by a seed company depends on the effectiveness of that particular technology in the field and farmer preferences.
Farmers have consistently chosen MMB's Bollgard® technology on account of its superior performance, despite having the option to choose from over 6 different technologies that have been approved in India. Since the year 2002, Bollgard® technologies have helped increase cotton yields by over 1.8 times from 302 kg/ hectare in 2002 - 2003 to 552 kg/ hectare in 2013 - 2014. This has led to significant increase in farmer incomes from higher yields and reduced usage of insecticides thereby helping generate an additional farm income of over Rs. 42,300 crores.
MMB has partnered with over 45 Indian seed companies to provide their hybrid seeds with insect tolerant Bt technology to farmers and collects trait fees in return. Trait fees are based on agreed bilateral terms and through extensive negotiations taking into consideration prevailing cotton seed price control realities. These agreements have been in place for many years now, based on a mutual understanding of the economic landscape and an appreciation of the value addition the technology provides.
Furthermore, since the launch of Bollgard® technologies, MMB has also consciously reduced trait fees so that farmers can readily access this technology and benefit from it. A well-established mechanism for trait fee has been in place for years. The trait fees have been developed keeping the needs of the farmers paramount while recognising the business imperatives of the seed companies.
It is pertinent to note that the trait fees in India are also amongst the lowest in the world and comprise only about 1-2 % of the total cost of cultivation for farmers, while the benefits have been transformational.