21 May 2016, 00:46 GMT
The Prime Minister Modi-led government has temporarily suspended a cap on the royalty fee for new GM seed technology at 10% for the first five years, according to a report of the Ministry of Agriculture and Farmers Welfare.
"The notification regarding the guideline for GM cotton technology issued on May 18 will be put in the public domain for 90 days, in the same form, for comments and suggestions of all stakeholders," an official statement said.
The withdrawal brings relief to Monsanto India, the company that has a 95 percent market share of India's GM cotton seeds.
"If the committee recommends imposing a sharp, mandatory cut in the fees paid on GM-cotton seeds, the company will have no choice but to re-evaluate every aspect of our position in India," Monsanto India Region CEO Shilpa Divekar had said.
