Government has capped royalty fee on new GM cotton traits at 10%
Q. Government has capped royalty fee on new GM cotton traits at what percent?- Published on 23 May 16a. 10 percent
b. 11 percent
c. 12 percent
d. 13 percent
ANSWER: 10 percent
Further regulating the cotton seed market, government caps royalty fee on new GM cotton traits at 10 percent. This will hurt biotech majors. After a period of five years, royalty would reduce 10 percent of initial value every year. If the GM technology loses its efficacy, technology provider would not be eligible for any royalty. Issuing a notification on licensing guidelines for GM cotton seeds , the agriculture minister has also capped upfront fee for the new GM trait at INR 25 lakh to be paid in two equal instalments. A new format for bilateral agreements has been prescribed.
