Quantcast
GMO
Cotton crop in Barnala, India. Ashwani Verma / Flickr

Report: Monsanto May Leave India After Losing GMO Cotton Patent

Could Monsanto's six-decade presence in India be coming to a halt?

On Wednesday, the Delhi High Court ruled that the biotech giant cannot claim patents for Bollgard and Bollgard II, its genetically modified cotton seeds, in the country.


Citing India's Patents Act of 1970, the court said that plant varieties and seeds cannot be patented, thereby rejecting Monsanto's attempt to block its Indian licensee, Nuziveedu Seeds Ltd., from selling the seeds.

"What it means is effectively Monsanto has no patent on seeds in India and they have never had it. They have tried to hoodwink the seed companies and farmers for years claiming they have a patent and making huge amounts of money from that," Diya Kapur, a lawyer for Nuziveedu Seeds, told Bloomberg.

As Dilsher Dhillon wrote in Business Insider India, Wednesday's verdict could prompt Monsanto to pull out of the country:

With the latest ruling, Monsanto's claims against Nuziveedu for unpaid royalties have been waived because its patents are invalid. It will now have to settle for the rates decided by the government.

This is a significant blow for Monsanto, the world's largest seed producer, as it currently licenses its seeds to nearly 50 domestic companies through its local joint venture with Mahyco Seeds Ltd. It could, in all probability, lead to the company's complete exit from India.

Monsanto had already threatened to stop business in India after the government imposed price controls on cotton seeds in 2016.

Monsanto first introduced its GM-technology in India in 1995. Today, more than 90 percent of the country's cotton crop is genetically modified. These crops have been inserted with a pest-resistant toxin called Bacillus thuringiensis, or Bt.

Business Insider's Dhillon noted that the ruling has significant implications for Monsanto and farmers alike:

While yields have increased significantly, Monsanto has long been accused of overcharging farmers for its seeds, especially given the fact that their ability to resist pests diminishes with time. The high cost of seeds and royalties left thousands of farmers in a vicious cycle of debt, which inevitably led to many suicides when crops failed. As a result, the government was forced to start regulating Bt cotton prices in 2006.

Hence, the Delhi High Court's ruling can be seen as a moral reckoning on Monsanto. But it also has wider implications. Yes, it will reduce prices for farmers, given that seed licensing companies pass on the royalty costs to them, but it could prove to be the death knell for innovation in the agriculture sector—something that will hurt farmers in the long run.

However, the company's presence in India may ultimately be decided by its pending mega-merger with Bayer AG.

"Bayer is generally seen as a company with a more collaborative approach towards governments. If Bayer sits down at the negotiating table with the Indian government and works out a solution, then it's possible that the next generation of Bt cotton technology may still see the light of day in India at some point in the future, although it may take years," Abhijit R. Akella, vice president at IIFL Institutional Equities, told Mint.

A Monsanto India spokesman said the company was "very disappointed" with the court's ruling.

"Today's order will have wide-ranging, negative implications for biotech-based innovation across many sectors within India, and is inconsistent with other international markets where agricultural innovation has flourished," the spokesman said.

Monsanto said it might challenge the decision in India's Supreme Court.

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Climate
The Vanderford glacier in East Antarctica is one of four that is beginning to melt, according to NASA. Angela Wylie / Fairfax Media / Fairfax Media via Getty Images

Melting Discovered in East Antarctic Region Holding Ice 'Equivalent to Four Greenlands'

Ice sheets in Greenland and West Antarctica have been melting at alarming rates in recent years, but at least the glaciers of East Antarctica were believed to be relatively stable. Until now. National Aeronautics and Space Administration (NASA) scientists have discovered that glaciers covering one-eighth of Antarctica's eastern coast have lost ice in the past 10 years. If the region keeps melting, it has enough ice in its drainage basins to add 28 meters (approximately 92 feet) to global sea level rise, BBC News reported.

Keep reading... Show less
Climate
In 2018, the Arctic region had the second-lowest overall sea-ice coverage on record. NOAAPMEL / YouTube

The Past 5 Years Were the Arctic's Warmest on Record

The Arctic is still warming at twice the rate of anywhere else on Earth, and the region's air temperatures in the past five years between 2014-2018 have exceeded all previous records since 1900, according to a peer-reviewed report released by the U.S. National Oceanographic and Atmospheric Administration (NOAA) on Tuesday.

The agency's 13th annual Arctic Report Card also concluded that 2018 was second only to 2016 in terms of the region's overall warmth.

Keep reading... Show less
Science
Partial solar eclipse. ndersbknudsen, CC BY 2.0

3 Key Dangers of Solar Geoengineering and Why Some Critics Urge a Global Ban

By Justin Mikulka

A Harvard research team recently announced plans to perform early tests to shoot sunlight-reflecting particles into the high atmosphere to slow or reverse global warming.

These research efforts, which could take shape as soon as the first half of 2019, fall under the banner of a geoengineering technology known as solar radiation management, which is sometimes called "sun dimming."

Keep reading... Show less
Climate
Even an increase of 2°C would cause significant sea level rise. pxhere

Report: Current Climate Policies Will Warm the World by 3.3˚C

This past October, a widely disseminated United Nations report warned that far-reaching and significant climate impacts will already occur at 1.5˚C of warming by 2100.

But in a study released Tuesday, researchers determined that the current climate polices of governments around the world will push Earth towards 3.3˚C of warming. That's more than two times the aspirational 1.5˚C target adopted by nearly 200 nations under the 2015 Paris agreement.

Keep reading... Show less
Sponsored
Food
garett_mosher / iStock / Getty Images

McDonald's to Reduce Antibiotics Use in Beef

In a significant win in the fight to save antibiotics, McDonald's—the largest and most iconic burger chain on the planet—announced Tuesday that it will address the use of antibiotics in its international supply chain for beef by 2021.

Keep reading... Show less
Insights/Opinion
Protesters clash with riot police on Foch avenue next to the Place de l'Etoile, setting cars ablaze during a Yellow Vest protest on Dec. 1 in Paris. Etienne De Malglaive / Getty Images

The Lesson From a Burning Paris: We Can’t Tax Our Way Out of the Climate Crisis

By Wenonah Hauter

The images from the streets of Paris over the past weeks are stark and poignant: thousands of angry protesters, largely representing the struggling French working class, resorting to mass civil unrest to express fear and frustration over a proposed new gas tax. For the moment, the protests have been successful. French President Emmanuel Macron backed off the new tax proposal, at least for six months. The popular uprising won, seemingly at the expense of the global fight against climate change and the future wellbeing of our planet.

Keep reading... Show less
Sponsored
Popular
Rainbow Mountains in Vinicuna, Perú. Megan Lough / UI International Programs / CC BY-ND 2.0

7 Reasons Why #Mountains Matter

December 11 is International Mountain Day, an annual occasion designated by the United Nations to celebrate Earth's precious mountains.

Mountains aren't just a sight to behold—they cover 22 percent of the planet's land surface and provide habitat for plants, animals and about 1 billion human beings. The vital landforms also supply critical resources such as fresh water, food and even renewable energy.

Keep reading... Show less
Popular
Tetra Images / DigitalVision / Getty Images

Don’t Stress About What Kind of Christmas Tree to Buy, but Reuse Artificial Trees and Compost Natural Ones

By Bert Cregg

Environmentally conscious consumers often ask me whether a real Christmas tree or an artificial one is the more sustainable choice. As a horticulture and forestry researcher, I know this question is also a concern for the Christmas tree industry, which is wary of losing market share to artificial trees.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!