NEW DELHI (Reuters) - India has raised the price of genetically modified cotton seeds by 5% for the fiscal year that began in March, a government order said, potentially boosting revenues of leading local seed makers.

According to the order, the Ministry of Agriculture and Farmers’ Welfare has raised the price of genetically modified cotton seeds to 767 rupees for a 450-gram packet, up from 730 rupees.

New Delhi approved U.S. seed maker Monsanto’s genetically modified cotton seed trait, the only lab-altered crop allowed in India, in 2003 and an upgraded variety in 2006, helping transform the country into the world’s top producer and second-largest exporter of the fibre.

Monsanto’s genetically modified cotton seed technology now dominates 90% of India’s cotton acreage.

Local cotton seed companies used to pay royalties to Monsanto, acquired by Bayer in 2018, for this technology. But last year, India axed the payment of these royalties to Monsanto. (reut.rs/3m6f7re)

Reporting by Mayank Bhardwaj; Editing by Bernadette Baum