The central government has announced a ₹37 increase in the price of BG-II (Bollgard-II) cotton seeds, bringing the retail price to ₹901 per packet. Meanwhile, the price of BG-I cotton seeds has been set at ₹635 per packet. However, this small increase has left the seed industry disappointed, as they believe it is not enough to cover rising production costs. Several industry leaders and farmer organizations have raised concerns, urging the government to reconsider the pricing decision.
The Federation of Seed Industry of India (FSII) has stated that this minor price increase does not match the rising costs of production. Over the past eight years, the price of cotton seeds has increased by only 1.8% annually. In contrast, labor wages have risen by 120%, and fertilizer prices have nearly doubled. Industry experts argue that such a small increase will not be enough to support seed companies in sustaining research and innovation.
Seed producers claim that a price of ₹1,020 per packet would have been more reasonable to ensure profitability and future investments in research. The National Seed Association of India (NSAI) has also expressed dissatisfaction with the decision. According to NSAI, seed companies had requested a ₹150 increase per packet, considering the inflation and rising input costs, but the government only approved a ₹37 hike, which is insufficient.
Experts warn that inadequate pricing may impact research and development efforts in the seed sector. A lack of investment in R&D could slow down the introduction of improved seed varieties, affecting agricultural productivity in the long run. Moreover, limited profits for seed producers could result in lower seed production, leading to a potential shortage in the market.
The All India Kisan Sabha (AIKS) has also strongly criticized the government’s decision, stating that it could push cotton farmers into a deeper crisis. AIKS leaders argue that seed companies already make significant profits, and a better pricing model should be implemented to balance the interests of both farmers and seed manufacturers.
Industry Urges Government to Reconsider: Both the seed industry and farmer organizations have urged the government to reconsider the pricing structure for cotton seeds. They are demanding a fair pricing system that takes into account rising production costs, inflation, and the need for continued research and development. Many believe that unless corrective measures are taken, the cotton industry could face long-term challenges, impacting farmers, seed producers, and the overall agricultural economy.
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