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SECTION II – DEVELOPMENTS IN 2006-07

ACTION PLAN FOR 2006-07 Both Bayer and Monsanto have decided to continue to work on the child labour issue within the framework of ASI CLEP (now CCP-Child Care Programme) which they initiated in 2005-06. With regard to the action plan for 2006-07 both companies have agreed on some common elements. In addition to the common programme they have also announced separate programmes specific to each company.

Bayer’s action plan With regard to cottonseed production and marketing in India, Bayer has both direct and indirect involvement. The direct involvement is through its daughter company `Proagro` which produces and markets cottonseeds. The indirect involvement is through its supplier `Raasi` a leading Indian seed company based in Tamilnadu. In 2005, Proagro entered into a marketing agreement with Raasi seeds. According to this agreement Raasi agreed to give Proagro exclusive marketing rights over two of its BT hybrid cottonseeds. Raasi produces these seeds and marketing is done by Proagro. Proagro indicates that in its agreement with Raasi a special clause was included banning the use of child labour in production of seeds and the right to monitor Raasi seed farms. During the 2006-07 crop season Raasi had an agreement with Proagro to produce cottonseed in 120 acres.

In the month of March 2006 Bayer announced its action plan for 2006-07. The action plan includes continuation of joint monitoring of fields, an incentive and disincentive scheme with a small modification (an incentive hike from 5% to 7% over the previous year) and a child labour rehabilitation programme with Naandi which it initiated in 2005-

  • 06.

    The new elements in the 2006-07 action plan are:

    • a)

      Credit support to farmers with the help of Banks and

    • b)

      ‘Target 400’ to enhance crop productivity.

In January 2006 Bayer signed a Memorandum of Understanding (MoU) with the State of India to provide credit support with 8% interest to its farmers. Under this scheme each

farmer is eligible to get about Rs. 40.000 credit per acre. A bank

by the company.

productivity.

In

April

The programme

2006

a

detailed

of `target 400` is planned manual was published with

guarantee is provided to improve the crop guidelines to improve

crop productivity from the current level of company announced it will implement the trainings and providing necessary inputs to

250 packets per acre to 400 `target 400 plan` in 2006-07 its growers.

per acre. The by conducting

Bayer agreed to implement all the elements of its action plan in 100% of the farms in Andhra Pradesh and Karnataka where it is directly involved in cottonseed production. With regard to its seed supplier Raasi in Tamilnadu, Bayer indicated that it will ask Raasi

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