Bt cotton row: Monsanto threatens to re-evaluate India biz

The article reports the protests by Monsanto against the Indian government’s order to control cotton seed prices. The protest came as a response to the competition watchdog Competition Commission of India’s order for a detailed probe against MMBL for alleged abuse of dominance by the Indian arm of the US-based genetically modified seed giant Monsanto and its decision to control the cotton seed prices. According to Monsanto,”It will be difficult for MMBL to justify bringing new technologies into India in an environment where such arbitrary and potentially destructive government interventions make it impossible to recoup research and development investments “.


Topics include Monopoly, Market Failure, Government Intervention and advantages and disadvantages of Monopoly. Explain using the Monopoly and Market Failure diagrams with focus on manipulated increase in market price.


Evaluation will cover impact of high cottonseed prices on Farmers, Consumers, Society (welfare loss, loss of Productive and Allocative efficiency) and Government in short term and long term.