India, which accounts for nearly a quarter of the land under cotton in the world and is the third-largest producer, will start growing pest-resistant transgenic cotton on a commercial basis in the season beginning October 2002.

"Bt cotton" is cotton that has been modified by biotechnology, with genes from bacillus thuringiensis (Bt) to produce toxins for resistance to insects.

Bt is a type of bacteria found in soil throughout much of the world. The Indian government has imposed stringent conditions on the sole licensed producer of genetically modified cotton seeds and recommended their planting with "utmost caution".

Bt cotton will be grown on only about 150,000 acres during 2002-2003.

Mahyco Monsanto Biotech India, a joint venture between Monsanto of the US and India's Maharashtra Hybrid Seeds, thinks its supply of Bt seeds next year will be good for planting in about 600,000 acres.

"India has nearly 23m acres under cotton and it will be a long time before the Monsanto venture is able to meet the total demand for GM seeds," said an official of the Indian Cotton Mills Federation.

India's Genetic Engineering Approval Committee has allowed Mahyco Monsanto to market Bt cotton seeds only in the regions where it conducted nearly 500 trials over last three years.

As the news has spread that the use of Bt cotton seeds gives an extra benefit of around Rs5,000 (Dollars 100) an acre by way of elimination of pesticide use and productivity and quality improvement, the farmers are impatient to use the new seeds.

Local government officials are having a trying time explaining to the farmers in most growing centres why they must wait a few seasons to get supplies.

The potential demand has led the Indo-US joint venture to identify some local companies making hybrid seeds, which will be given the Bt gene construct, for stepping up the production of transgenic cotton seeds.

In the meantime, Mahyco Monsanto is planning to introduce more advanced varieties of GM cotton seeds than are available now in India, subject to local agronomic trials.

It is unlikely that Mahyco Monsanto will enjoy a monopoly on transgenic cotton seed production for long. Pressure has already started building on the government to allow other companies to introduce the Bt gene construct.

The Indian agriculture ministry has accepted the argument of farmers' organisations that competition should ensure that growers get Bt cotton seeds at the right prices.