In two posts earlier, our guest Ravi Duggirala has mentioned about the issues at Kaveri Seeds. This one is a follow up. Please read: The Royalty Mess at Kaveri Seeds Revisited: The Government Fixes Trait Prices Ravi Duggirala is a budding value investor and an ardent admirer of Warren Buffet, Charlie Munger and Prof Sanjay Bakshi. (Full Bio Below) Ministry of Agriculture has issued a notification last month fixing the maximum selling price of BT cotton seeds at ₹800 for FY17 throughout the country.The G.O. also stated that the trait value or royalty fees that technology providers can charge, should not exceed ₹49 per packet. Mahyco Monsanto Biotech Limited (MMBL) has been charging a royalty of ₹160-₹180 per packet from the past few years. Earlier BT cotton seeds were sold between ₹830-1050 across various states in India. With this notification, the govt has brought in uniform pricing all over India. This is inline with the recommendations of the nine member committee set up by the government, and is supposed to benefit nearly 80 lakh cotton farmers across the country. … (Read On…)
[via Capital Mind]
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