State move to compensate farmers from Bt seed penalty stuck in HC

Nagpur: A year after chief minister Devendra Fadnavis announced in the assembly that Bt cotton seed companies will be penalized, to compensate farmers whose crop was damaged due to pink bollworm attack, the matter has been held up in the court.
An order to recover compensation of Rs1,200 crore from 72 companies making Bt cotton seeds had been issued in November. Later, 19 companies moved the high court against the move. The court has granted status quo in the matter, bringing the recovery process to a standstill.

The penalty from seed companies was supposed to go to farmers who faced crop losses due to the pink bollworm pest attack of 2017. The Bt cotton seed, which is a genetically modified variety, is supposed to be resistant to the bollworm pest. However, in 2017, a major attack left Bt cotton crops devastated. The seed companies are being penalized on the grounds that despite the claims of Bt being resistant to the pest, it failed.

Seed companies have in their plea questioned the state government’s move to announce the penalty as part of its compensation package even before the legal procedure was completed. The action is being taken under the Maharashtra Seeds Act. Under this, the producers can be penalized for poor quality of seeds. However, the law also provides for an appeal till the apex court.

A source involved in the case said the seed manufacturers’ contention is that even of there was a scope to appeal, state government jumped the gun and announced the compensation, including the penalty amount.

The seed makers have also argued that the government did not follow the procedure laid down in the law before issuing the penalty orders. The state government argues that since the cases were huge in number, the process was streamlined. Moreover, the state government is relying on the point that seed companies too have admitted that Bt has failed against the pest.

Apart from the 19 companies in whose favour status quo has been granted, others too have moved the high court. Some of the cases are being heard at the office of state’s agriculture commissioner, which is the first appeal stage. Here, the court has ordered that the appellate process can continue but the final orders will depend on the court’s directions.

The state is also relying on earlier high court rulings in which orders against Bt seed makers were upheld.

Kishore Tiwari, chief of Vasantrao Naik Shetkari Swavalmanban Mission, said that the move has been opposed on technical issues. He plans to file a petition in the Supreme Court on behalf of the farmers’ families affected by suicides.

IN A NUTSHELL

Cotton growers in state mainly use genetically modified Bt cotton seed

It is supposed to be resistant to pink bollworm pest

In 2017, major pest attack hit cotton crop

CM announced seed cos will be penalized to compensate farmers

Orders were issued against 72 cos to shell out Rs1,200 cr in all

19 cos have moved high court and secured status quo