Times Of India | Reader Supported News | June 12 2012
Five million Brazilian farmers have taken on US based biotech company Monsanto through a lawsuit demanding return of about 6.2 billion euros taken as royalties from them. The farmers are claiming that the powerful company has unfairly extracted these royalties from poor farmers because they were using seeds produced from crops grown from Monsanto’s genetically engineered seeds, reports Merco Press.
In April this year, a judge in the southern Brazilian state of Rio Grande do Sul, ruled in favor of the farmers and ordered Monsanto to return royalties paid since 2004 or a minimum of $2 billion. The ruling said that the business practices of seed multinational Monsanto violate the rules of the Brazilian Cultivars Act (No. 9.456/97).
Monsanto has appealed against the order and a federal court ruling on the case is now expected by 2014.
About 85% of Brazil’s massive soyabean crop output is produced from genetically engineered seeds. Brazil exports about $24.1 billion worth of soyabeans annually, more than a quarter of its total agri-exports.
Farmers say that they are using seeds produced many generations after the initial crops from the genetically modified Monsanto seeds were grown. Farmers claim that Monsanto unfairly collects exorbitant profits every year worldwide on royalties from “renewal” seed harvests. Renewal crops are those that have been planted using seed from the previous year’s harvest. Monsanto disagrees, demanding royalties from any crop generation produced from its genetically-engineered seed. Because the engineered seed is patented, Monsanto not only charges an initial royalty on the sale of the crop produced, but a continuing two per cent royalty on every subsequent crop, even if the farmer is using a later generation of seed.