Page 15 - A&A Patents&Design Rewind-2016

CENTRAL GOVERNMENT FIXES THE SALE PRICE

AND TRAIT VALUE OF COTTON SEEDS
Amidst the ensuing legal dispute over
Monsanto’s Bt cotton seed technology, Court granted a temporary stay to the Petitioner.
including an investigation into Monsanto’s However, in May 2016, the stay was lifted as the
Government’s actions were found to be backed by

licensing deals as per the order of the CCI and all legal and necessary documents.

the High Court ordering an injunction against

Nuziveedu from selling Bt cotton manufactured Appeals were filed against the interim order issued

after expiration of its license agreement with by the High Court in May. However, the Court

Monsanto, the Central Government fixed the dismissed the Appeal and did not interfere with

sale price of cotton seeds and trait value vide its the interim order of the Single Judge. The Court

notification dated 8th March, 2016. held that to ensure that Bt cotton seeds are made

The Cotton Seed Price (Control) Order, 2015 available to farmers at fair prices, regulation of trait
value is essential. Therefore, there is no illegality in
confers to the Central Government the power fixing the same. The Court held that trait value is
an integral part of the cotton seed price and needs
to regulate the to be regulated to benefit the consumer. The Court
was also of the view that Bt cotton is an essential
The Court held that trait price of cotton commodity.
value is an integral part of the seeds. Based
cotton seed price and needs on this order, The High Court order in the writ appeals can be
to be regulated to benefit the the Ministry of accessed at:
consumer. The Court was also Agriculture on http://judgmenthck.kar.nic.in/judgmentsdsp/
of the view that Bt cotton is an March 8, 2016 bitstream/123456789/124001/1/WA1125-16-22-
essential commodity. had fixed the 07-2016.pdf
maximum sale
The Cotton Seed Price (Control) Order, 2015 can
price and trait values of BG-I and BG-II variety of be accessed at:
http://seednet.gov.in/PDFFILES/Cotton_Seeds_
Bt cotton. The Central Government’s notification Price.pdf

dated 8th March 2016 fixing the trait value of BG-I

and BG-II variety of Bt Cotton however, was soon

stayed by the Karnataka High Court following a writ

petition filed by the Association of Biotechnology

along with Namdhari Seeds Pvt. Ltd.

The Petitioners contended that the Essential The Notification dated 8th March 2016 can be
Commodities Act only empowers the Government accessed at:
to fix the maximum sale price of the commodity but http://seednet.gov.in/PDFFILES/Maximum%20
does not allow it to fix the price of the components sale%20price%20for%20Bt.cotton%20seeds%20
within the sale price, especially the license fee. The for%20the%20year%202016-17.pdf

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