Seeds of trouble: Monsanto threatens to pull out of India

Staff Writer
Columbus CEO

NEW DELHI (AP) — U.S. seed giant Monsanto has threatened to pull its genetically modified crop technology from India if the government goes ahead with its plan to cut the company's royalty fees.

Monsanto's joint venture firm in India said over the weekend that it would be difficult to bring new technologies to India because it was becoming difficult for the company to recoup its investments in research and development.

India's agriculture ministry has set up a committee to determine the price of cotton seeds, including fees the company charges for licensing crop genes.

Shilpa Divekar Nirula, chief of Monsanto's India unit, said if the committee recommends imposing a cut in the fees that local seed companies pay to use Monsanto's crop genes then the company would have to reevaluate its position in India.