India’s recent Supreme Court ruling that Monsanto can claim patents on its genetically modified cotton seeds is being hailed as a victory for biotech investment in India. The ruling is expected to encourage biotechnology firms to set up offices in the country. It is also expected to encourage further investments in the biotech space.
The company has faced several challenges in India in the past, including a few unfavorable government rulings and debates over royalty payments. Last Tuesday’s ruling on appeal overturned a previous ruling by Delhi’s High Court which ruled that Monsanto has no right to claim patents on its genetically modified cotton seeds. The appeal will come as welcome news to foreign biotech and agricultural companies, some of which fear they could lose GM patents in India.
A few political and activist groups have criticized the move, citing environmental concerns and concerns over the fate of domestic companies. However, one of India’s most important farmers’ associations has welcomed the ruling, citing the reluctance of foreign companies when it comes to introducing new biotechnology into the Indian market.
The Indian Government accepted Monsanto’s genetically modified cotton seed in 2003, making it the only genetically modified crop allowed in India. The move is credited for helping make India the world’s leading producer of cotton.
