Monsanto India is beaten down to pulp today. The stock hit a new 52-week low at Rs.1900.20 and remains now at around Rs.1930 levels. The mood on the counter remains very somber.

The company is down as Competition Commission of India (CCI) has ordered an investigation into its JV, suspecting the company had abused its dominant position as a supplier of genetically modified (GM) cotton seeds. The CCI  has also asked the director general to investigate the role of executives in charge of the business if any wrongdoing is found.

Local farmers and some of their associations, including one affiliated to PM Narendra Modi's ruling party, have complained that Monsanto overprices its products using its position as supplier of GM seeds used in more than 90% of the country's cotton cultivation.

This JV - Mahyco Monsanto Biotech (India)(MMB), is with Mahyco. The JV licenses a gene that produces its own pesticide to a number of local seed companies in lieu of royalties and an upfront payment. MMB also markets the seeds directly, though the local licensees together command 90% of the market.