Government of Gujarat has sanctioned a hike in the prices of Bollgard-I, Bollgard-II and genetically modified Bt cotton seeds.

The prices have been raised by 25 percent on an average, for forthcoming kharif season. According to the government announcement that came on April 25, the price of BG-I has been hiked from Rs. 650 per packet of 450 grams to Rs. 830 per packet, while that of BG-II has been hiked from Rs. 750 per packet to Rs. 930 per packet.

Prior to this too, Gujarat, the country’s biggest cotton producing state, witnessed a rise in Bt cotton seed price in 2008. The present price rise is expected to raise the production cost for farmers by almost Rs. 200, as over 2008.

The state government, in a statement said that, the rise in prices was on account of inflation, higher cost of production and other factors having a bearing on seed cultivation. The statement further stated that, the decision to hike the prices was taken to help the seed cultivating farmers to earn remunerative prices and to retain their interest in cultivation of these seeds.

The government revealed that, cotton prices sharply grew by almost 118 percent during 2007-11, but no rise was witnessed in the seed prices during the period.

Some three years back, the seed companies were compelled by the state government to reduce seed prices from Rs. 1,200 per packet to Rs 750 per packet, and hence the seed distributors are now seeking a rise in price.

The state each year produces about 6.5 to 7 million Bt cotton seed packets, against which the state’s overall demand for the forthcoming kharif season is estimated to keep at around 6.5 million packets.

The increase in seed price in Gujarat has come about after a recent rise in seed prices in Haryana.