Monagro goes ahead with plan on transgenic cotton

Monagro goes ahead with plan on transgenic cotton

JAKARTA (JP): PT Monagro Kimia said it would go ahead with its
plan to sell transgenic cotton seeds in South Sulawesi despite
the suspension of a cooperation agreement with the government.

PT Monagro Kimia spokeswoman Tri Sukirman said the suspension
had no effect on the company's plan to supply cotton seeds to
farmers' plantations in the province.

Tri acknowledged the company needed approval from the
government to sell the transgenic cotton seeds because the
existing permit was only for the pilot project for the
development of transgenic cotton in the country.

"But we're confident we will obtain final approval despite the
delay, because it (the delay) is irrelevant to our current
activities," Tri told reporters following a teleconference with
cotton farmers in South Sulawesi.

Coordinating Minister for the Economy Rizal Ramli decided on
Tuesday to delay the signing of a cooperation agreement with
Monagro's parent company, the American-based agrochemical and
seed company Monsanto, due to public protests.

According to Tri, the agreement would only be about Monagro's
commitment to investing in Indonesia.

"We are already committed to investing here, so the delay does
not matter at all," she told reporters.

State Minister of the Environment Sonny Keraf admitted that
his personal disapproval along with pressure from non-
governmental organizations had resulted in Rizal postponing, at
the last minute, the agreement, which was due to be signed last
Friday.

Sonny had said that health concerns over transgenic crops and
their effects on the environment was still a major concern to be
considered.

Transgenic technology creates higher quality crops by
inserting genes from other species.

Called Genetically Modified Organisms (GMO) or biologically
engineered products, these crops can better withstand pests and
specific herbicides.

Although scientists have assured people over the safety of the
produce, doubts remain about the crops' effects on health and the
environment.

Tri said the company had already tested the cotton seeds with
local farmers in South Sulawesi with satisfying results.

The company said it had been testing the seeds on cotton
plantations in the regencies of Bantaeng and Bulukumba for five
months.

"But we've been here in Indonesia for three to fours years for
preliminary tests on the transgenic seeds," she added.

Back then, she said, the company had tested the seeds in glass
houses, followed by isolated farm land, before finally testing on
real plantations.

Tri said that Monsanto had already built a factory in
Tangerang to process the transgenic cotton seeds, which Monagro
would import from the United States.

However, she declined to state how much the company had
invested here.

"The delayed agreement with the government also covered our
expansion plans for our Tangerang factory," she added.

Tri said the company planned to expand its business to
providing corn and soybean seeds in several regions in Indonesia.

With the increased fertility of these seeds, she said, local
cotton production would rise, which would reduce Indonesia's
dependency on imported cotton.

Data from the company show that Indonesia spends some Rp 9
trillion (US$1 billion) on imported around 500,000 tons of cotton
fiber each year, from the United States and Australia.

Cotton is the main raw material for Indonesia's giant textile
industry.

"It (the saving) is worth considering, but more importantly,
farmers have an opportunity to raise their income," she added.

During the teleconference, farmers from Bantaeng expressed
their wish to continue using the transgenic cotton seeds.

Head of South Sulawesi's plantation office Makrasan said that
with transgenic cotton seeds, farmers could harvest an average of
three tons of cotton per hectare as compared to only 500
kilograms per hectare using normal seeds.

Although the cost of transgenic cotton seeds per kilogram was
40 times higher than normal seeds, farmers were also saving money
on expensive pesticide, he explained. (bkm)