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India Cuts Monsanto Modified Cotton-Seed Royalty Fees by 70%

  • Government makes move despite opposition from Monsanto venture
  • Venture had said it would `reevaluate' position in India
Workers unload cotton from trucks at a market in Rajkot, Gujarat, India, on Wednesday, Dec. 16, 2015. World inventories at the end of this season will be the second-largest ever, just slightly less than last year's record, according to a U.S Department of Agriculture forecast.
Photographer: Dhiraj Singh/Bloomberg
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India cut royalties for genetically-modified cotton seeds, defying Monsanto Co., which has said such a move would cause it to reevaluate its business in the country, the largest grower of the fiber.

The agriculture ministry said Tuesday that so-called trait royalties will be capped at 49 rupees (73 U.S. cents) per 450-gram pack of so-called Bt cotton seeds, a 70 percent reduction from current levels. It also set the maximum sale price at 800 rupees.