Monsanto

Monsanto India, subsidiary of USA based Monsanto Company, reported a net loss of Rs.5 crore for Q2Fy15 v/s net profit of Rs.76 crore in previous Q2 and net profit of Rs.7.6 crore sequentially. Seasonally, this should have been a bumper quarter but right from the topline, there has been a decline. There was a 67% (YoY) drop in net sales at Rs.84 crore and then operating expenses of Rs.95 crore pushed it into the red. The hefty other income of Rs.11 crore helped limit the net loss to that extent. This is a typical MNC, debt free and parent company’s stake is at 72.14% and reserves stands at Rs.390 crore.

Controversy surrounds this seed company, which literally monopolises India’s cotton seeds. It is blamed for making super profits, by selling seeds at high costs and earning a bounty through royalties as farmers get caught in the debt trap. The highest number of farmer suicides is in the same belt where Monsanto enjoys a monopoly and thus indirectly, it is being blamed for the plight of the farmers. The company is blamed for genetic engineering to control seed and the food system through patents and intellectual property rights. The farmers in Brazil have also levied the same charges on Monsanto and farmers in Brazil have sued Monsanto for $2.2 billion for unfair collection of royalty. The increasing protest against holding any field trials for genetically modified (GM) crops is only growing and this is a huge uncertainty for the company.