Monopolies and Restrictive Trade Practices Commission on Thursday issued notice of enquiry against the US biotech major Monsanto and its fully owned Indian subsidiary Mahyco for ignoring its direction asking them to reduce the trait value of transgenic Bt cotton seeds.
The commission has directed them to file their replies in six weeks.
Both the companies would have to file their replies giving reasons for bringing down the trait value by only Rs 20 per 450 gm of Bt cotton seed packet, while the commission had directed that the rates should be made comparable to those in China.
On June 11, Mahyco-Monsanto Biotech Ltd reduced the trait value from Rs 900 to Rs 880 per packet following the commission's direction to bring the rates equivalent to those prevailing in China.
Monsanto, which holds the global patent rights for transgenic cotton seed technology, charges a trait value equal to just Rs 40 in China.
On June 26, Andhra Pradesh government filed an application before MRTPC to initiate contempt proceedings against MMBL and its parent company Monsanto for violating the Commission's orders to reduce the 'trait value'.
The state government earlier contended that the reduction of Rs 20 in trait value by MMBL that holds the marketing rights for Bt cotton seeds in India was not enough to be termed as compliance with the MRTPC order.
During proceedings, Monsanto contended that the matter is subjudice before the Supreme Court.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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