As usual this year also the AP Seedmen Association made a request to the state government to increase seed prices as their production costs are going up. As you are aware last year the prices went up from Rs. 600 to rs. 830 and rs. 750 to rs. 930 for single gene and double gene technologies respectively. The argument was that argument was that farmers got better harvest and good market price (upto rs. 6500/q).
This year the companies are demanding an increase up to rs. 950/packet of single gene and Rs. 1050 for a packet of double gene bt cotton.
here we need to know that from companies own data, the companies are only paying Rs. 288/450 g of cotton seed. in reality they pay much less. The trait fee for single gene is Rs. 109.43 and Rs. 180.10 (including service tax). Even with this there is a clear profit for the seed industry.
This year the cotton prices have fallen to Rs. 3500/q and there is a vast area where bt cotton crop failed. The industry has not taken any responsibility even for the losses due to seed failure and pest attack.
In this situation we feel Government should not agree for price rise at all and maintain the stausquo.
Centre for Sustainable Agriculture