Monsanto India shares plunged nearly 6 per cent intraday after Union Agriculture Minister Radha Mohan Singh said that the government will keep regulating cotton seed prices and will not allow companies like the US biotechnology major Monsanto to exploit farmers.
At 2.29 pm, shares of Monsanto were trading 2.88 per cent down at Rs 1567.15. The scrip opened at Rs 1637.90 and has touched a high and low of Rs 1637.90 and Rs 1520, respectively, in trade.
Later, the scrip closed 1.78 per cent down at Rs 1,585.
Last month, the government for the first time fixed a uniform price of Rs 800 per packet for Bt cotton seed including a small royalty of Rs 49 — a move that will benefit farmers, but hit the Indian business of Monsanto.
The company had last month warned of re-evaluating its presence in India and holding back new technology if the government cuts trait fee of Bt cotton seeds drastically through “arbitrary and potentially destructive” interventions.
(With inputs from agencies)