Question : COTTON SEEDS UNDER ECA

(a) whether it is a fact that on the one hand Government has brought cotton seeds under Essential Commodities Act (ECA) and at the same time it wants to deregulate the cotton seeds prices;

(b) if so, the reasons therefor;

(c) whether it is also a fact that this move will only help private seeds companies to take undue advantage of the situation;

(d) if so, whether the Government is considering to make rules to regulate the prices of cotton seeds under provisions of ECA;

(e) if so, whether reintroduction of cotton seeds under the ECA is not against the policies of reforms, liberalisation, market led economy and World Trade Organisation (WTO) obligations; and

(f) if so, whether the Union Government is considering to empower States to regulate the Bt cotton prices in case Union Government is not regulating the prices of Bt cotton seeds and if so, the details thereof?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FOOD PROCESSING INDUSTRIES (DR. SANJEEV KUMAR BALYAN)

(a) & (b): Cotton seed was brought under the Essential Commodities Act, 1955 (ECA, 1955) vide notification issued by the Department of Consumer Affairs on 22.12.2009, 18.06.2010 and 22.12.2010 to protect the interest of cotton producing farmers by regulating the production, supply, distribution and quality of cotton seeds to strengthen the cotton seed quality regulation and acts as a deterrent against sale of spurious cotton seeds. This inclusion under ECA 1955 does not provide for any price regulation of cotton seeds.

(c): No, Madam.

(d): At present, there is no such proposal with the Government.

(e): the reintroduction of cotton seeds under the ECA, 1955 does not regulate the prices of cotton seeds and hence is not against the policies of reforms, liberalization, market led economy and WTO obligations.

(f): No, Madam.