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The Article 27 of the Cartagena Protocol calls for setting up of a global liability and
redressal mechanism for damages caused on account of transboundary movement of
GMOs otherwise called living modified organisms (LMOs)in the treaty. The Protocol also
calls upon countries for adopting precautionary principles for addressing the likely threats
of GMOs.
Setting up of a global liability regime and redressal mechanism for damages caused on
account of transboundary movement of GMOs is currently under discussion. India as a party
to the Protocol has called for a stringent global liability regime.
India, which is assuming leadership in several global fora on many critical issues, needs to set
examples at home. It should not only adopt precautionary principles to meet the threats of GMOs
but also adopt a stringent liability regime to address the damages caused on account of GMOs.
So far India has approved only one GM crop Bt Cotton for commercial cultivation. Cultivation of
Bt cotton has invited a host of problems. The assurances given by Monsanto and Mahyco have
failed and farmers are facing heavy losses on account of cultivation of Bt Cotton. The incidences of
suicides among farmers have increased since the introduction of Bt cotton. Bt cotton has attracted
new pests like mealy bugs. As bollworms and insects became resistant to the single transgene Bt
cotton, Monsanto and Mahyco introduced stacked genes Bt cotton and even this new product has
failed to give the desired results.
Sheep and goats grazing over Bt cotton fields faced death. This proves the health hazards and
poisonous effects of Bt genes. The Genetic Engineering Approval Committee (GEAC) instead of
expressing concerns over these incidents are pushing for approval several GM food crops in the
pipeline at the instance of seed multinationals like Monsanto. It has given approval to Bt brinjal
without conducting adequate biosafety tests.
The government needs to wake up and enforce precautionary principles to meet the threats of
GMOs and put in place a stringent liability regime to book the culprits like Monsanto and
other GM seed companies to pay for the damages caused to the farmers and the nation. We
should learn from the Bhopal Gas tragedy how severe the consequences can be if we are not
vigilant and do not adopt any precaution. Bt cotton has already caused damages. Let us
wake up and prevent the damages likely to be caused by other GM crops
KRISHAN BIR CHAUDHARY
Vol. 1 No. 4 April, 2010
KISAN KI AWAAZ
National Magazine of Farmers’ Voice
Editor :
Complimentary Copy
Single copy Rs. 25/-, Annual Rs. 300/-
Suggestions for improvement are invited
Our water management is so bad that billions of Pollution of surface and ground water is another
people- and the environment- are suffering from its serious problem. Nearly 70% of surface and ground
consequences (World Water Vision, p.xix). water reserves are being contaminated by biological,
toxic, organic and inorganic pollutants (Min of Water
Charles Breyer, the judge who ruled in the original The court also determined that APHIS did not
decision of 2007 which is being appealed, is Stephen adequately examine the potential effects of Roundup
Breyer's brother, who apparently views this as a Ready alfalfa on organic farming and the development
conflict of interest and has recused himself. of glyphosate-resistant weeds and that there were
“substantial questions” raised by the deregulation
Clarence Thomas petition that the agency should have addressed in an
EIS.
From the years 1976 1979, Thomas worked as an
attorney for Monsanto. Thomas apparently does not Concluding that the question of whether the
see this as a conflict of interest and has not recused introduction of the genetically engineered alfalfa and
himself. its potential to affect non-genetic alfalfa posed a
significant environmental impact necessitated further
Fox, meet henhouse. study, the court found that APHIS's decision was
“arbitrary and capricious” and ordered the agency to
The lawsuit was filed by plantiffs which include the prepare an EIS.
Center for Food Safety, the National Family Farm
Coalition, Sierra Club, Dakota Resources Council and The court later enjoined the planting of Roundup
other farm, environmental and consumer groups and Ready alfalfa from March 30, 2007, until completion
individual farmers. The original decision : of the EIS and reconsideration of the deregulation
petition, except for those farmers who had already
The federal district court in California issued its purchased the seed.
opinion on the deregulation of “Roundup Ready”
alfalfa pursuant to the Plant Protection Act on February In May of 2007, the court enjoined any future planting
Alfalfa is very easily cross-pollinated by bees and by Back to the Supreme Court case, oral argument is slated
wind. The plant is also perennial, meaning GMO plants to begin on April 27, 2010. With Breyer recused and
could live on for years. Thomas opting not to recuse, the bench appears to be
heavily tilted to Monsanto.
“The way this spreads so far and wide, it will eliminate
the conventional alfalfa industry,” said Trask.
“Monsanto will own the entire alfalfa industry.” Source- http://coto2.wordpress.com/2010/03/18/ex-
monsanto-lawyer-clarence-thomas-to-hear-major-
Monsanto has a policy of filing lawsuits or taking other monsanto-case/
Mangalore: Bharatiya Krishak Samaj has expressed Chaudhary said, that he has written a letter to UPA
concern over a move by the Union ministry for science chairperson Sonia Gandhi about the consequences of
and technology that is gearing to table the National introducing the proposed Bill as well as that of
Biotechnology Regulatory Authority Bill in allowing GM food in the country without proper trials.
Parliament.
Observing that the Bill would silence the voices of
This, according to Krishan Bir Chaudhary, President of public resentment, he said the union agriculture
the Samaj, is a new game plan in the offing after the minister Sharad Pawar too has come out openly in
denial of the release of Bt Brinjal for commercial favouring the release of Bt brinjal in the country.
cultivation and the Bill is draconian by all
considerations. Highlighting the obnoxious side of the Bill, Chaudhary
said it aims to impose penalties if there is any criticism
Chaudhary told reporters here on Monday that the of modern BT by any citizen, be it a writer, journalist,
ministry and its department of biotechnology are scientist, research institution or university.
aggressive promoters of genetically modified crops,
unmindful of its health and environmental hazards The penalties for misleading public about organism
revealed by a series of studies done by scientists across and products are six to 12 months of imprisonment and
the globe. fine up to Rs 2 lakh. The decision of the proposed
authority will be out of the purview of the law,
“The lobbyists for GM crops have now found a friend Chaudhary observed.
in union science and technology minister Prithviraj
Chavan and have urged him to table the Bill,” he said.
Source :- TIMES OF INDIA , March 23, 2010
GEAC is not a quasi-judicial body. It is functioning The panel assessed the global scenario of acceptance
under the Union ministry for environment and forests. or rejection of genetically modified (GM) crops and
The environment minister has discretionary powers to food and how to deal with a situation of clandestine
withhold the approval of GEAC. GEAC, after all, is a imports of GM foods which are not yet approved in
body of handpicked “scientists” many of whom have the country.
conflicts of interests
So far Bt cotton is the only GM crop approved in the
Introduction of GM crops poses health and country. The GEAC had so far been cautious in not
environmental hazards which are widely recognized. approving any GM food crop so far. Earlier the GEAC
World leaders have, therefore, expressed concerns under the chairmanship of AM Gokhale had denied
and ratified the Cartagena Protocol on Biosafety approval to three GM hybrid mustard seeds
which came into effect from September 11, 2003. developed by ProAgro in collaboration with Aventis
India has not only signed and ratified this global treaty & PGS of Belgium for commercial cultivation.
but also is an active participant
The GEAC under Gokhale's chairmanship also
Chavan should read the writing on the wall and do refused imports of hazards Star Link corn. But
well to set up a Biosafety Authotity instead of a Gokhale could not remain as GEAC chairman for
National Biotechnology Regulatory Authority. He long as pro-GM lobbies wanted to see his exit.
should also know about the country's position on the
Cartagena Protocol. The pro-GM lobbies should not cry foul at Jairam
Rameshes and AM Gokhales. They should be upright
Under the provisions of the Protocol India had called in questioning themselves and their intentions.
for a defined international liability regime to redress
the damages resulting from transboundary Here are some of the extracts from the writings of the
movements of living modified organisms (LMOs). It ardent supporters of GM crops in India expressing
had also called for setting up of a global fund on concerns over health and environmental hazards ----
mandatory basis for redressing the damages.
Dr PK Ghosh, former advisor in the department of
The Article 27 of the Cartagena Protocol calls for biotechnology (DBT) and his colleagues in the same
setting up of a global liability and redressal department, Dr TV Ramanaiah and Dr KK Tripathi in
mechanism for damages caused on account of a joint paper, 'Capacity Building And Its Relevance To
transboundary movement of GMOs otherwise called Implementation of Cartagena Protocol on Biosafety'
LMOs. said, “Scientific evaluation cannot guarantee cent per
cent safety, although this statement does not in any
In particular reference to India, the expert trio said It is expected that transgenic pollens coding for Bt
that about 25 institutes in the country are engaged in proteins would affect the silkworm larvae, as these are
genetic engineering research but “in spite of such an insects that are susceptible to Bt proteins.”
impressive infrastructure, most of these institutes are
unable to discover genes and transform plants into Dr Ghosh added, “There are examples of micro-
transgenic cultivars of agronomic value. organisms, especially genetically modified viruses
that turned virulent after modification. The longevity
Most of these institutes that have the capabilities are of GM fish was found to be shortened, compared to
working on imported polynucleotide constructs the non-transgenic controls.
including promoters, genes, terminator sequences,
plasmids etc. Consequently, a case-by-case analysis of the safety of
each GMO needs to be conducted to assess
The Indian institutes have not yet been able to develop environmental safety as well as safety to humans and
local materials of considerable economic value.” The animals.”
expert trio gave also similar opinion about private
sector companies engaged in transgenic technology in It is not only the NGOs, farmers' organizations, health
the country. activists, independent scientists but also some ardent
supporters of GM crops who have expressed concerns
Dr PK Ghosh, in another research paper, 'GMOs : over health and environmental hazards.
Indian Legal Framework And Scientific Progress'
have also raised some more doubts about the safety of Chavan should do well to take note of this situation
transgenic technology. and press for setting up of a Biosafety Authority
instead of National Biotechnology Regulatory
He said, “A genetically modified organism can be safe Authority.
but this can be unsafe too. This will depend upon the
transgenes, the host organism and the environment
where the GMO is being tested. In case of GM plants,
ANKENY, Iowa, March 11 (Reuters) - A coalition Monsanto critics say the company, which develops,
of family farmers, consumers and other critics of licenses and markets genetically altered corn,
corporate agriculture called on the U.S. government soybeans and other crops, manipulates the seed
to crack down on what they see as unfair market by buying up independent seed companies,
consolidation of the nation's food system into the patenting seed products and then spiking prices.
hands of a few multinationals.
Monsanto's Roundup Ready seed traits, which are
Chanting "bust up big ag," a group of more than 250 genetically engineered to resist Monsanto's
packed a town hall meeting in the top corn-growing Roundup herbicide, are embedded in the majority
state of Iowa to rally support ahead of a Justice of all soybeans and corn grown in the United States,
Department meeting aimed at scrutinizing a penetration level that helped Monsanto post net
concentration in the seed business. income of $2.1 billion for 2009.
The Justice Department and the U.S. Department of The farm groups said they hope the attention by the
Agriculture are holding a meeting in Ankeny to Justice Department will spur policy moves in
look at the "competitive dynamics in the seed Washington, chiefly a change that would eliminate
industry." U.S. Agriculture Secretary Tom Vilsack the ability of companies like Monsanto to patent
and Christine Varney, the Justice Department's seed germplasm, and re-establish farmer rights to
assistant attorney general for antitrust, are slated to save seed from their harvested crops and replant it.
attend.
"The crops that we grow are the basis of our
The meeting in Ankeny is the first ever of its kind civilization. If anything belongs in the public
and is slated as the first in a series of five such domain it is the crops we grow for food," said
gatherings planned by federal officials to gather Dakota Resource Council member and farmer
input on concentration in the poultry, dairy and Todd Leake. "They claim that they own them. That
livestock industries. is not right. We need to turn that back."
While corporate giants like Wal-mart (WMT.N) and Monsanto has said its technology helps farmers and
Cargill are among the companies facing attack from that their broad licensing of their technology to
the farm and consumer groups, the events in Iowa other companies helps ensure competition is "alive
this week are largely targeted at global biotech seed and flourishing."
leader Monsanto Co. (MON.N).
U.S. Senators Saxby Chambliss of Georgia and Pat
The Justice Department and several state attorneys Roberts of Kansas, both Republicans, weighed in
general are probing allegations that Monsanto on the issue, cautioning that a U.S. probe might lead
controls the U.S. commercial seed market via to market intervention that could "stifle
unfair, and in some cases illegal, practices. innovation."
"This monopolistic system is rigged against family "Any new activity proposed must avoid the
farmers," said George Naylor, and Iowa corn and unintended consequence of chilling innovation,
soybean farmer who said he struggles to find seed to investment or job creation in American
plant that is not controlled by Monsanto. agriculture," the senators said in letters sent to
Vilsack and Holder.
Living democracies are based on the intrinsic In the Isho Upanishad it is said:
worth of all species, all peoples, all cultures; a just
and equal sharing of this earth's vital resources; A selfish man over utilizing the resources of
and sharing the decisions about the use of the nature to satisfy his own ever increasing needs is
earth's resources. nothing but a thief, because using resources
beyond one's needs would result in the utilization
Earth Democracy protects the ecological of resources over which others have a right.
processes that maintain life and the fundamental
human rights that are the basis of the right to life, Earth Rights are the basis of equity, justice and
including the right to water, the right to food, the sustainability. On Earth Day 2010, the President
right to health, the right to education, and the right of Bolivia, Juan Evo Morales Ayma is organizing
to jobs and livelihoods. a conference on Rights of Mother Earth.
Earth Democracy is based on the recognition of The idea is to start a process for adopting a
and respect for the life of all species and all Universal Declaration of the Rights of Mother
people. Earth on the lines of the Universal Declaration of
Human Rights. Without Earth Rights, there can
Ahinsa, or nonviolence, is the basis of many be no human rights.
faiths that have emerged on Indian soil.
Translated into economics, nonviolence implies Earth Rights are Human Rights.
that our systems of production, trade, and
consumption do not use up the ecological space of
other species and other people.
He says in that fascinating book: “The English have Britain is much worse. In the post- Thatcher era, the
not taken India; we have given it to them. They are not universities are struggling due to reduced state
in India because of their strength but because we keep funding and inability to increase the fees. Recently,
them. Hence it is truer to say that we gave India to the Cambridge announced that its doors will be thrown
English than that India was lost.” (Mahatma Gandhi: open to public during summer, of course, for a price.
Collected works Volume 10 August 5, 1909 to April
1910). Another important reason provided by the current
ruling groups and the spin master sepoys in the media
Human Resources Minister has claimed that the is that it will help lakhs of youngsters who are going
impact of the Foreign Universities Bill will be more abroad to pursue higher education and preserve
revolutionising than the spectrum allocation and precious foreign exchange and also prevent spurious
mobile phone. We only hope that he is talking about institutions abroad luring our youngsters.
the outcome and not the scandals!
Let us analyze the different categories of youngsters
These institutions (which are expected to set up shop and reasons for going abroad. The first is primarily to
here) in the UK and the USA are broke and many countries like Australia for skill related courses like
departments are getting closed. beauticians and cake making hoping to get work
permit in that country to settle down. That group is not
To quote from a recent article in The Economist: “No going to join cake making courses in Eluru or Nasik or
one should go broke because they chose to go to Dibrugarh or Batala even if offered by foreign
college,” Barack Obama said in January in his state- universities unless residence/ work permit dreams are
of-the-union speech. But American college students also provided in the convocation.
worry they might, thanks to recent fee increases at
technical colleges and universities. The second group is the highly qualified IIT/NIT
engineers for higher education to the USA. The level
On March 4, students and disgruntled faculty staged of private corporate sponsorship is an attraction for
protests at around 100 campuses in over 30 states, students of science and engineering stream and the
calling on state legislators and university desire to get green card is deep-rooted.
administrators to put a halt to recent tuition fee hikes
and funding cuts. In Oakland, California, student The third category is the children of business people
protesters marched on to a big highway and stopped and bureaucrats and other “Delhi caucus”
the traffic. Elsewhere students carried coffins to descendants who cannot get into institutions of higher
symbolize the death of affordable education. learning in India due to stiff entrance criteria. They
pay through their nose and get into any type of
According to the Centre on Budget and Policy institutions like “Tall Mountain” or “Deep Sea”
Priorities, a think tank, at least 39 states have university and proudly come back and occupy
decreased their funding for public colleges and important positions in our government.
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Bolivia, in its communication, concluded that an Several pointed out that the only factual evidence
urgent review of Article 27.3 (b) was needed to brought to the TRIPS Council so far by Canada -
prohibit the patenting of all life forms, ensure the suggests that the length of time needed for Canada to
protection of the innovations of indigenous and local export to Rwanda was not caused by the system but by
farming communities and prevent anti-competitive other factors.
practices that threaten food sovereignty in developing
countries. Speaking on this issue, Egypt said that the issue
pertaining to the functioning of the solution to
Also at the meeting, India and Brazil reiterated their guarantee access to medicines to countries with
concerns over the actions of customs authorities of limited or no manufacturing capacity is critical for
European Union member-countries in detaining developing countries and particularly for Africa.
generic medicines whilst in transit to other
developing countries. It expressed concern that the system has not been as
helpful in addressing this critical public health
India told the TRIPS Council: "We wish this issue was problem as it had hoped.
addressed with the seriousness it deserves and
resolved and we did not need to raise this issue in this The fact that the system has only been used once
meeting. Unfortunately, we do not see any concrete raises questions as to its effectiveness, let alone
steps..." expeditiousness.
On the issue of the implementation of the "Paragraph Likewise, said Egypt, the frail drive to accept the
6" solution, which is aimed at helping developing amendment Protocol is incomprehensible in its own
countries with insufficient or no manufacturing right.
capacities in the pharmaceutical sector to import
cheaper generic medicines produced under Many questions spring to mind, including
compulsory licensing, trade officials said that there administrative and regulatory complexity of the
were continued differences among Members on system, lack of appreciation of business methods in
whether the fact that the "Para 6" system was only supplying markets and associated overhead costs, as
used once would constitute sufficient evidence that well as constraining requirements.
the system is failing.
These questions need to be addressed, said Egypt,
According to trade officials, several developing strongly supporting the proposal to organize a
countries reiterated the view that the "Paragraph 6" workshop to address these questions and others of
system might be failing. They cited the fact that the relevance, and to include in this workshop s
According to trade officials, Ambassador Tan's Also, to stop the increasing concentration of
successor, Mr Martin Glass of Hong Kong-China, corporate control over the agriculture industry due to
who took over at the end of the formal meeting, will various acquisitions and overuse of intellectual
consult with Members about the workshop. property rights, undermining the rights of indigenous
peoples, local community and farmers, including the
However, trade officials said that some developed right to exchange and save seeds and the State's food
countries pointed out that the informal consultation security and sovereignty.
on 12 February was already held in response to a call
from several developing countries that wanted an Another concern is to limit the proliferation of trade
opportunity for Members to share their experience in agreements and initiatives focused on enforcement of
using or trying to use the system. Only Canada intellectual property that pressure developing
actually did so, they said. countries to adopt a particular model of intellectual
property, which is not in the best interest of the
According to trade officials, the US said that countries.
Members were being asked to take a decision (on
holding a workshop) under the "other business" part According to Bolivia, all these reasons allow the
of the meeting's agenda, which is normally reserved Doha Development Agenda and the TRIPS Council to
for brief exchanges on issues raised at short notice and have a strong case for an in-depth and accelerated
not for decisions. review of Article 27.3 (b).
The discussion on the submission by Bolivia came According to trade officials, Cuba, Nicaragua,
within the agenda items of review of the provisions of Ecuador and Guatemala supported Bolivia.
Article 27.3 (b), relationship between the TRIPS
Agreement and the Convention on Biological Speaking generally under the agenda items of review
Diversity (CBD), and protection of traditional of Article 27.3 (b), TRIPS/CBD relationship and
knowledge and folklore. protection of traditional knowledge and folklore,
India said that the inadequacy in the TRIPS
Speaking at the meeting, Bolivia said that with its Agreement to combat bio-piracy and
communication, it wants to continue to contribute to misappropriation of genetic resources and traditional
the analysis of a topic that, in its understanding, knowledge (TK) needs no elaboration following the
definitely needs a multilateral solution designed to exhaustive technical discussions on the issue over the
exclude the possibility of patenting life in all its last 9-10 years.
forms, including biological resources, micro-
organisms, genes, gene sequences and non-biological The TRIPS Agreement continues to ignore the
and microbiological processes. numerous IPR-related obligations in the CBD
including obliging countries to cooperate to ensure
Bolivia then summarized the contents of its that patents and other IP rights do not run counter to
communication on a review of Article 27.3 (b). It the objectives of the CBD (Article 16.5). This
considered that, among others, the exclusion of contradiction not only obstructs the proper
patentability of life forms is one of the most important implementation of the CBD but also causes an
issues within the Doha Development Agenda. imbalance in the TRIPS Agreement, said India.
Highlighting a number of challenges, Bolivia said that It was disappointed to note that while work in the
it is not the only one facing them, but that several CBD has been progressing steadily, there has been
developing countries, small peasants or indigenous lack of serious engagement in the TRIPS Council to
What Members are discussing here is a mandatory "We wish this issue was addressed with the
disclosure requirement to be incorporated in the seriousness it deserves and resolved and we did not
TRIPS Agreement. Serious and meaningful need to raise this issue in this meeting. Unfortunately,
discussions on this issue can take place only at the we do not see any concrete steps," said India, adding
WTO, said India. that therefore at this meeting, it wished to update
Members on developments since the October 2009
Also speaking under these agenda items, Egypt said TRIPS Council meeting.
that the protection of biological resources, traditional
knowledge and folklore presents an important As to what India has done, it said that it has continued
developmental issue for Egypt with implications on its bilateral efforts with the EC at the level of
the preservation and development of national Ministers, senior officials in Capitals and the Indian
Egyptian natural and cultural Mission to the EU in Brussels. "Far from our concerns
heritage. being addressed, we are yet to get details of the
seizures from EU authorities."
It urged that the outcome of the negotiations on
TRIPS/CBD should lead to the mandatory India further said that its commerce secretary and its
requirement for patent applicants to disclose the Ambassador to the EU had formally sought details of
origin of biological material and traditional the seizures including (i) the duration of the seizure;
knowledge used in their inventions, evidence of prior (ii) names of the drug, exporter and importer; and (iii)
informed consent and benefit sharing arrangements details of the IPR holder whose rights have been
with the country of origin and the relevant allegedly infringed.
communities.
As far as India was aware, the scope of the Review Brazil said that at the last session of the TRIPS
excludes the Regulation's compatibility with WTO Council, it had made reference to the fact that some
provisions including GATT and TRIPS provisions contacts had been held between representatives from
and the spirit of the Doha Declaration. the Commission and from Brazil both in Brussels and
in Geneva.
From India's point of view, it did not see any concrete
measures, including any signs of review of EC It also mentioned that those "opportunities for
Regulation 1383/2003, in-spite of its inconsistency dialogue" had not produced, unfortunately, any
with provisions of GATT, the TRIPS Agreement and significant progress towards changing the most
the spirit of the Doha Declaration on the TRIPS controversial element of the said EC regulation,
Agreement and Public Health. "especially the principle of manufacture fiction".
Stressing that the seizures symbolize TRIPS plus "That is still the situation today... The fact that the
enforcement, India said that generic drugs form the possibility of new seizures is still open is a matter of
backbone of public health programmes in developing concern to us," said Brazil.
countries.
According to trade officials, the EU said that it had
Targeting of legitimate generic medicines, which are provided information in lengthy bilateral meetings,
neither fake, nor counterfeit, nor pirated medicines, and that its customs officers have to be able to check
will have deleterious consequences on access to shipments because of the large amount of counterfeit
affordable and efficacious medicines and public drugs.
health budgets. Donations from some developed
countries to the poor populations of the world cannot According to trade officials, the Council also
fill the gaps in a sustainable way. discussed briefly "non-violation" cases, where
positions remain unchanged, as well as various
India stressed that the widespread and repeated aspects of technical assistance.
seizures, under EC Regulation 1383, have an adverse
systemic impact on: (i) the principle of universal At the end of the meeting, Ambassador Tan handed
access to medicines; (ii) national public health over the chair to Mr Martin Glass of Hong Kong-
budgets; (iii) legitimate trade of generic medicines; China.
(iv) South-South commerce; (v) use of TRIPS
flexibilities; and (vi) seriously impair the efforts of
civil society organizations engaged in providing
medicines and improving public health in the least SUNS #6877
developed parts of the world.
The Federal Trade Commission sued Intel Corp. in 'You Had To’
December alleging it used “threats and rewards,”
including rebates, to coerce companies not to buy Under the agreement, the licensee would earn a
rivals' computer chips. In a separate civil dispute, rebate of 7.5 percent of the royalty it pays Monsanto
Intel agreed in November, without admitting any if Roundup Ready accounts for 70 percent of the
liability or fault, to pay $1.25 billion to Advanced dealer's annual herbicide- resistant seed sales. The
Micro Devices Inc. to settle allegations Intel gave rebate is halved if the Roundup Ready share is
discounts to customers that avoided AMD products. between 50 percent and 75 percent, and isn't paid at
all below 50 percent.
Courts disagree on whether such financial incentives
are anti-competitive, Hovenkamp said. Similar terms were in Monsanto's licensing
agreements with Stine Seed Co.until Monsanto
“These things have been so controversial and so phased them out in recent years, according to Harry
heavily litigated that some firms have taken Stine, president and founder of the largest closely
preventative steps and just gotten rid of them,” held seed company in the U.S., based in Adel, Iowa.
Hovenkamp said.
“In order to get the large rebate they would give you,
Monsanto phased out its market-share discounts as of you had to minimize your sales of other companies'
last year, said Powers, the spokeswoman. seeds,” Stine said. “The rebates were so large that for
all practical purposes you had to do it.” At one time,
Of Monsanto's $11.7 billion in revenue in the fiscal the requirement for earning the full rebate was as
year ended Aug. 31, 2009, $7.3 billion came from high as 90 percent, he said. Stine has a collaborative
sales and licensing of seeds and seed genes. Revenue agreement to develop seeds with Monsanto, he said.
grew by an annual average of 17% from 2004 to
2009, as earnings expanded eight-fold to $2.11 Gene Restrictions
billion, driven by genetically engineered products
and acquisitions of other seed companies. The agreement reviewed by Bloomberg prohibited
the dealer from combining the Roundup Ready trait
Generic Roundup with herbicide-tolerant traits that the licensee or
other companies developed.
Revenue then declined as generic rivals to Roundup
flooded into the U.S. from China. In the fiscal first It specifically bars the dealer from using any non-
quarter ended Nov. 30, Monsanto had a loss of $19 Monsanto genetic modification that makes crops
million as sales declined 36% to $1.70 billion. tolerant to glyphosate, the herbicide found in
Roundup.
Monsanto lost 74 cents, or 1 percent, to close at
$71.28 in New York Stock Exchange composite Such terms could be anti-competitive because
trading. Monsanto controls such a large share of the corn and
soybean markets with its Roundup Ready gene,
Showing that Monsanto engaged in anti-competitive Hovenkamp said.
behavior that harmed residents of their states could
enable the attorneys general to demand civil Monsanto's Partridge said the company routinely
monetary damages in addition to any penalties that negotiates agreements that allow seed companies to
“We've done this more than any other company in Monsanto still earned a royalty on the purchase
this industry.” because the seeds he bought carried the Roundup
Ready trait, he said.
Monsanto is also under scrutiny because the rising
price of its seeds has been a sore point for farmers, The list price for Monsanto's “Yieldgard VT Triple”
said Peter Carstensen, a antitrust professor at the brand of triple-stack corn seed rose to about $277.50
University of Wisconsin Law School in Madison. a bag this year from $201.83 in 2008, based on seed
prices per acre provided by Powers, the
Farmers' Costs Rise spokeswoman.
“Buying seed used to be not terribly costly,” said She declined to discuss prices or royalties individual
Charles Benbrook, chief scientist at the Organic customers pay.
Center in Boulder, Colorado, who in December
completed a study of 35 years of seed pricing. “Now Roundup Ready 2
farmers are locked into these high seed costs on an
annual basis.” In the licensing agreement reviewed by Bloomberg,
Monsanto agreed to rebate to the dealer as much as
The study showed that soybean farmers spent 4% of the dealer's royalty if he developed a plan to
between 4 percent and 8 percent of their farm income move his customers from Roundup Ready to
on seeds from 1975 through 1997. Last year, farmers Roundup Ready 2.
who planted genetically modified soybeans spent
16.4 percent of their income on seeds, it found. Monsanto says Roundup Ready 2 soybean seeds
boost crop yields by 4.7 bushels an acre compared
Monsanto's licensing royalty on soybean seeds with with traditional Roundup Ready.
the Roundup Ready trait climbed to $15.65 for each
140,000-seed bag last year from about $6.50 a Soybeans yielded on average 44 bushels an acre last
decade ago, according to the owner of one seed year, according to the USDA.
company.
Stine, who said he's been on conference calls with the
A bag of Roundup Ready seed sells for about $35 and state attorneys general group to discuss the
can plant three-quarters of an acre (0.3 hectare). He Monsanto investigation, hasn't made up his mind
asked not to be named because the terms are whether Monsanto's dealings are anticompetitive.
confidential under his licensing agreement.
“On the one hand,” Monsanto is “hard to get along
Monsanto sells him seeds including the genetic trait, with and very restrictive,” Stine said.
which he then reproduces and sells under his own
brand, the person said. “However, in general, their traits and products have
been superior to other companies'.”
'Triple Stack' Corn
But since the World Trade Organisation (WTO) was First, they got industrial patents on plants bred with
created in 1994, all member governments must genetic engineering (GE) and related techniques.
provide some form of monopoly rights on seeds.
This meant, in practice, that they got the absolute
There is now enormous pressure on developing monopoly that conventional breeders had been
countries to adopt the developed country models. refused two decades earlier.
Many have been persuaded to join the international Second, the UPOV PVP rights were radically
PVP system, managed by UPOV (International Union expanded for all plant varieties, GE or conventional.
for the Protection of New Varieties of Plants).
Since 1991, the PVP monopoly has applied not only
In the past ten years, UPOV has more than doubled its to seed multiplication but also to the harvest and
membership. Most new members are developing sometimes the final product as well.
countries.
The previously unlimited right for farmers to save
The UPOV system was originally set up in 1961, in seed for the following year's planting has been
response to many years of lobbying by the seed changed into an optional exception.
industry.
It is nothing short of a crime that one company, It is tragic that within the present Obama
namely Monsanto, has control of 95% of the seeds administration, this policy has continued.
being planted for food.
One year ago the US Supreme Court denied the
Scientists in many countries are divided on the issue appeal by lawyers for over 4 million Vietnamese
of whether GM is good for us. seriously affected by Agent Orange.
Yet with all the arguments for or against, how is the They also denied the appeal by US Veterans suffering
parent wanting to feed their family to make an from Agent Orange.
assessment of what product on the shelf is safe to
buy? The victors of that disgraceful ruling were the 37
chemical companies that manufactured Agent
The answer for me is avoid any food, seed, or a Orange, no prizes for guessing that the leading
product made with an ingredient from Monsanto. company of the 37 was Monsanto.
I, like many of you readers, would have read of the But even more scandalous was that Chief Justice
thousands of Indian Farmers that have committed Roberts and Justice Stevens declined to take part in
suicide due to being forced to purchase Monsanto the case, a case that involved over 4 million plaintiffs.
seeds.
No reason was given for them declining, nor was any
Whereas before farmers saved the seeds from their reason given why another Justice namely Clarence
crops to plant for the following year, this is now not Thomas, did not decline to take part.
allowed, indeed it is against the law, Monsanto's Law,
enforced by Monsanto's pack of lawyers. For two years he worked as a corporate lawyer in the
pesticide and agriculture division of Monsanto.
Such practices cannot be allowed to continue; while
there has been some success in the courts against Whatever the ruling by the court, the campaign for
Monsanto, the overwhelming rulings have been in safe food has to continue as does the campaign
favour of the company spelling disaster for the farmer seeking justice for the victims of Agent Orange... to
and his family, leading many to bankruptcy, hence the win, Monsanto has to be stopped….
rash of suicides in India.