Monsanto’s BT cotton technologies

Big banners mull investment in bio-tech seed business

KARACHI: Leading business houses of the country said on Thursday they are considering investment in production and marketing of high-tech seeds business.

Fatima Fertilizer Company, Nishat Group’s flagship company Nishat Mills Limited and Sapphire Group’s Sapphire Fibres Limited have expressed intentions to invest in Sanifa Agri Services Limited, which is likely to launch Monsanto’s cotton bio-tech technologies in Pakistan. The quantum of investment however could not be known.

Recently incorporated Sanifa Agri Services Limited plans to produce and market high quality cotton seeds in Pakistan. Sanifa is also in negotiations with Monsanto Pakistan to explore the possibility of launching Monsanto’s cotton bio-tech technologies in Pakistan.

In separate statements issued to the Pakistan Stock Exchange (PSX), the companies said they are “considering the possibility of investing in a recently incorporated public limited company Sanifa Agri Services Limited, which plans to produce and market high cotton seeds in Pakistan.”

“Furthermore…(they are) in negotiations with Monsanto Pakistan Limited to explore the possibility of launching Monsanto’s cotton bio-tech technologies in Pakistan,” they added.    

Khurram Schehzad, an equity analyst, said Monsanto was the largest cotton seed producer in the world and launch of its bio-technologies would be good for the country’s agriculture sector. “It’s a lucrative business and involvement of such big companies would ensure ample supply of high-yielding seeds, hence higher production.”

Mehmood Nawaz, an agriculture expert, said high-tech and genetically modified seeds were being used for cotton crops around the world for over a decade and there had been no adverse effects on human skin. “BT cotton is being planted in Pakistan since long. Launch of bio-tech seeds will be goods for the yields,” he said.

Nawaz, however said Monsanto had been the centre of controversy because of their monopoly in the seed market. Moreover, excess use of genetically modified seeds poses threat to the sustainable cycle of organic seed production. Over 90 percent cotton seed available in the market is genetically engineered as the new, pest-resistant technology increases yields at lower costs.

Growers are of the view that Pakistan’s indigenous non-bio-tech cotton posed numerous problems as it demanded plenty of water and extremely hot weather and viruses and pests killed cotton blossoms. All this threatened Pakistan’s cotton production every year.

It is worth mentioning here that Monsanto, the world’s largest seed seller, pulled an application seeking regulatory approval for the next generation of genetically modified cotton seeds in India.

The application was withdrawn on July 6 because of regulatory uncertainties and ongoing discussions. This was for cotton seeds containing next generation technology from those currently sold in India, called Bollgard II Roundup Ready Flex.

India cut royalties for genetically modified cotton seeds in March, which caused the St. Louis-based company to say it would reevaluate its business in the country. In May, India temporarily withdrew the limits on royalties.