Putting an end to a long-standing dispute, German firm Bayer has applied to the Indian government to cultivate its next generation of genetically modified (GM) cotton seeds in the country, media reports said.

Monsanto, a US-based agrochemical and agricultural biotechnology corporation, had withdrawn its application seeking approval for its next generation GM variety Bollgard II Roundup Ready Flex (RRF) in 2016, following a dispute between New Delhi and the world's biggest seed maker. In 2018, Bayer bought Monsanto for $63 billion.

Also read: Bayer wins U.S. approval for Monsanto deal

The German firm has now resubmitted the application to cultivate the variety, Reuters reported, quoting government sources. The move marks the revival of interest of foreign seed, agricultural chemicals and farm technology companies in India.

However, the sources said it may still take Bayer a few years to get the final approval.

When contacted, Bayer told Reuters that it aimed at enhancing crop productivity, doubling farmer incomes and “making Indian agriculture sustainable and globally competitive."

Monsanto row

The government first introduced GM cotton seeds by Monsanto in 2002, which helped India become the biggest producer and second-largest exporter of the fibre. Soon, Monsanto’s seed technology dominated nearly 90 percent of India's cotton acreage.

However, some cotton associations complained that the US giant overpriced its products.

Also read: Despite Supreme Court ruling, the saga of Monsanto’s Bt cotton seeds is far from over

At the same time, Indian seed company Nuziveedu Seeds Ltd (NSL) engaged in a royalty dispute with Monsanto, saying India’s Patent Act did not allow the US giant any patent cover for its GM technology.

Under pressure from farmers, the government in 2016 imposed a 70 percent cut in royalties paid to Monsanto for its cotton seed technology. Monsanto later withdrew its application seeking approval for its next generation of cotton seeds.

Since then, India’s crop yields have stagnated as existing varieties are losing their effectiveness and have been subjected to continuous pest attacks.

How will the new variety help India?

According to farm policy experts, the use of GM cotton seed variety will not only boost yields and bring down the cost of cultivation, it could also act as an antidote to the widespread infestation of the pink bollworm pest.

Also read: Defying law, Indian farm group says it planted unapproved GM cotton seeds

The pink bollworm pest has caused damage to crops, affecting the income of farmers in the past few years. Industry body estimates show that the pest attack has infected nearly 20-30 percent of the country's 12-13 million hectares of cotton cultivated area.

Other companies

A number of agro-based global firms had scaled back investments after the Monsanto row, and also deferred plans to introduce farming technologies and new seed varieties in the world’s leading producer of farm goods like cotton, rice and wheat.

"While India has dragged its feet, other producers have adopted newer cotton seed technologies over the past 15 years," the head of a global seed company told Reuters.

(Edited by : Shoma Bhattacharjee)