Shares of Monsanto India slipped over 2 per cent after the company's parent firm said it has withdrawn application seeking approval for the next generation genetically modified (GM) cotton seeds in India because of regulatory uncertainties.
The stock of Monsanto India fell 2.57 per cent to Rs 2374.05 on the BSE.
A letter sent by Monsanto's local partner in India, the conglomerate's biggest market outside the Americas, strongly objects to a government proposal that would force Monsanto to share its technology with local seed companies.
The company is also at loggerheads with India over how much it can charge for its genetically modified cotton seeds, costing it tens of millions of dollars in lost revenue every year.
The unprecedented decision to pull the application could set back Monsanto's efforts to introduce its new seed, called Bollgard II Roundup Ready Flex technology, for years and lead to further losses.
"Our decision to suspend this introduction in India is an outcome of the uncertainty in the business and regulatory environment, which includes the regulation of trait fees and introduction of the draft compulsory licensing guidelines," Monsanto Spokesperson said in a statement.