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Branded seeds: Free market, copyrights and farmers’ welfare

March 11, 2012 10:15 pm 2 comments Views:

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Monsanto’s demand for protection of its intellectual copyright could be the best thing for Pakistani agriculture. ILLUSTRATION: JAMAL KHURSHID

Pakistan is the largest exporter of cotton yarn in the world and the third largest exporter of raw cotton. About 1.3 million farmers (out of a total of 5 million) cultivate cotton over three million hectares, covering 15% of the cultivable area in the country. Cotton and cotton products contribute about 10% to GDP and 55% to the foreign exchange earnings of the country.

Thus any policy affecting the yield of this silver crop would have serious implications for national economy. It is in this perspective that Punjab government opposition to US agrichemical giant Monsanto’s demands for intellectual property rights protection for its BT cotton seeds need careful evaluation.

According to a recent news item, the Punjab government has refused to agree to Monsanto’s demands for intellectual property rights (IPR) protection for its BT cotton seeds and has accused the company of a “monopolistic” plan to take over agriculture in Punjab. This is a serious allegation and will have consequences for foreign companies working in Pakistan, which are always keen to assert protection of their intellectual property on account of their huge R&D investment as well as international regulations such as TRIPS. Monsanto has maintained that it is not against the use of other seeds, just against the illegal transfers of its own seeds.

BT Cotton SeedPakistan uses about 40,000 tons of cotton seeds every year, about 25% of which comes from the 770 seed companies operating in Pakistan. The bulk of the seeds are those that farmers share with each other. It is this practice of free-riding that Monsanto would like to be checked.

It is clear that Monsanto’s seeds do need to pass through a trial and error stage before being fully adapted to local soil needs. Moreover, it is not just seed alone but entire field management of planting of seeds which contribute to the ultimate outcome. Of course, this can only be done with the back-up of rigorous research apparatus and cannot be left to traders and smugglers of BT cotton seeds. Therefore Monsanto’s position that farmers should not be allowed to exchange seeds has some logic from crop management perspective.

Monsanto’s position is challenged not only by the provincial government but also by farmers’ lobbies. Ibrahim Mughal, the chairman of Agriforum Pakistan has said that “Monsanto would destroy Pakistan. If we want a free economy in Pakistan, then Monsanto must not be allowed to market its seeds in Pakistan.”

Call for a free economy and opposition to the entry of a firm in a single breath is not only paradoxical but also ironic. Free market economy is featured with easy entry and exit and strong checks on anti-competitive practices such as monopolistic tendencies and cartelisation.

Monsanto is not the sole provider of BT cotton seeds in the world and thus there is no threat of a monopolistic conduct from this giant rendering fears of Punjab government and farmers baseless. Seed Association of Pakistan has earlier pointed out that the German multinational Bayer is providing the same technology like BT Cotton (Bollgard-II) without seeking any royalty and compensatory amount. So is the case with Biocentury Transgene, China’s leading biotechnology provider. Therefore, if for any reason, we do not wish to buy from Monsanto, we can explore other options. But if we end up buying from Monsanto, we need to ensure respect of contractual obligations and intellectual property.

The debate over intellectual property rights even within free marketeers is not settled with views ranging from stringent application of TRIPS like measures to open software, free for all, mindset. It is clear that without an incentive and legal protection of patents, no private sector firm is willing to invest billions of dollars in research.

IPR is beneficial for all. Several Pakistani research institutes, such as Punjab University’s National Center of Excellence for Molecular Biology (CEMB) and Nuclear Institute for Agriculture and Biology (NIAB), Faisalabad have dedicated substantial resources over research and pilot production of BT cotton seeds. CEMB has successfully demonstrated efficacy of its seeds at a pilot farm near Multan.

The decision of buying a specific seed should best be left as a contractual exchange between the farmer and seed manufacturer and distributor. Enforcement of intellectual property, standardisations and maintaining fair competition are the most important obligations of the government. It risks loss of credibility by stepping out of this boundary.
The writer is a principal consultant at Development Pool and a founding member of Economic Freedom Network Pakistan.
Published in The Express Tribune, March 12th, 2012.

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2 Comments

  • Dr. Khalid Abdullah
    April 23, 2012
    2:29 pm

    Bt gene is derived from a soil born bacterium that help to produce a toxic protein which is lethal to worms attacking cotton and other crops. This gene has nothing to do with crop yield or CLCV. To combat CLCV we need to develop a resistant variety or locate source or resistance which later be incorporated into local varieties either though conventional breeding or through genetic engineering or biotechnology. Yield and production is again dealt with similar pattern, high yielding germplasm identified and the characteristic is then transferred to local varieties.
    The yield increase associated with Bt cotton varieties is not truly because of Bt gene only, it is because of affects of Bt gene that creates environment to perform specific variety to its potential by providing a resistance against bollworm. Bt gene transferred to high yielding variety will produce high yields, and Bt gene transferred to a low yielding cotton variety cannot give high yield. It will only cover the pest management issue (only bollworms).
    Insertion of Bt gene to a cotton variety done by Pakistani scientists is the only method available so far, and all private and public sector organizations across the globe are doing the same. With the help of biotechnology gene is transferred to cotton variety “Cocker 312”: the only known variety which could regenerate in test tube media under lab conditions. Once successfully produced genetically modified “Cocker 312” plant, conventional backcross breeding starts in action. Cocker 312 with a new gene is crossed with leading high yielding varieties to develop a GM cotton variety and later from one variety to other. So it is a standard practice, Pakistani scientist in public and private are doing with Mon 531 gene of Monsanto origin.
    Gene expression and estimation of protein has been an issue in Pakistan and surely needs to address accordingly. However it is worth mentioning here that toxicity of any compound may differ from population to population and environment to environment. Some insect population respond differently to an insecticide in one area and entirely different in other area with a different population. This is the reason for a resistance management program, resistance level of various regions are monitored separately and prepared localized strategies. Farmers and related people might able to recall, when imedachloprid (confidor) introduced in Pakistan, it has a recommended dose of 250 ml/ac, whereas, soon after the marketing company reduced its dose to 80ml after conducting local experiments and found it as effective as at 250 ml/ac. Gene expression in Pakistani varieties may not be as high as in USA, Australia or India, but is it proved sufficient to kill the bollworms. However it is utmost imperative to monitor minimum toxin required for killing the pest (commonly known as LD 50) and closely observe if local population is developing resistance, by regular conducting lab bioassay experiments. Correlating protein expression data with bioassy responses will probably give a realistic picture and help in resistance monitoring program.
    Reports of Pink bollworm resistance have created lots of debates among scientists and raised many questions like, why in India when it is using high quality seed and low protein expression has never been an issue; If resistance is attributed to consecutive planting than other countries where corn, cotton soya all are GM and some common insects on these crops have not gained any resistance then why in India which has started GM cotton 10 years back and it is a threat to Pakistan which has just started growing Bt cotton??? Is it a reality or myth with hidden agenda to manifold technology fee by motivating people to shift from BG-I to BG-II and RRF in India??

    Reply
  • Meng Wang
    October 4, 2012
    8:49 am

    Dear Sir,

    Good days to you. We are honored to get your contact information from the internet.
    We would like to import cotton seed of 5000 MT for oil extractions per month regularly. Suppliers from Pakistan, Myanmar and Australia can offer their prices. In fact I can purchase both GMO of cotton seed (Genetically modified) and non GMO. However you have to indicate what they are. Please advice the detailed specification such as oil content, impurity, moisture, protein, mildew and the price CIF Qingdao port, China. Thanks.

    Best regards,
    Meng Wang
    Orient-Sunrise international (Qingdao) Co., Limited
    No.16, Nanchang Road, Qingdao, China
    Tel: +86-532-84876605
    Fax: +86-532-84876605
    Cell phone: +86-13206385351
    Email: orientsunriseint@vip.188.com
    Skype: orientsunriseint

    Reply

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