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Seeds -- a US$ 30 billion global industry
India (US$ 1 billion) & China (US$ 2.5
bn.) are in the top 10 markets
India has over one sixth of the global
population
high importance to food self-
sufficiency
India needs to increase productivity
significantly
12% of global arable land
4% share of global crops
0 1,000 2,000 3,000 4,000 5,000 6,000
Canada UK Italy IndiaArgentina Germany Brazil FranceCIS Japan China USA
12 top markets constitute 66% of theGlobal seed industry
Figures in US$ mn
India US$ 1 bn market
India seeds market
With a size of US$ 1 bn, India is the eighth largest commercial seed market in the world
Arable land is around 136 mn ha which is higher than China
High growth expected on the back of transition from traditional varieties to high value varieties and hybrids
Public sector – varietal crops like paddy, wheat, pulses – 80% of seed volume; 40% of total value
~ 150 companies in Private sector – majority operates as traders
Increase in India’s share in world crops
can come from improved productivity as
growers shift to hybrids.
0
200
400
600
800
1,000
1,200
India Brazil USA China
Mn
ha
Land area
Arable area
Seed market structure
Saved seeds account for nearly 85% of the market
Commercial Seeds 15%
Saved Seeds
85%
Domestic seeds market is expected to
double over the next five years implying a
CAGR of 13%. Hybrid seeds will grow much
faster given expected conversions from
traditional varieties.
Rising food demand and limited
agricultural land
Shift to commercial seeds which
have better technology
Growth in fresh produce market and
in processed food sector
Drivenby
Private sector dominates with a 60% market share
Note: Research hybrids are 30% of commercial seed market by value
Seed Industry
Private Sector
MNC – 10
Public Sector
NSC IPS – 200
SSCs - 13
SFCI
Industry Structure – The Situation Today
Public sector – in self-pollinated crops of which wheat & rice account for 60%
Private sector mainly in hybrids that are low in volume but high in return
Opportunity lies in converting users of farm-saved seeds and public hybrids
In terms of volume, paddy and wheat offer largest opportunity
Company Holding Turnover FocusStructure (INR mio.)
Mahyco Monsanto (26%) 1200 all cropsEmergent (after HLL & Mahendra) 1200 all cropsMonsanto Monsanto 1000 sunflower, corn, cotton Proagro Bayer Crop Science 800 all cropsNamdhari family 800 vegetablesNuziveedu family 800 cotton, millet, cornGanga Kaveri family 600 sunflowerAdvanta India Advanta(Fox Paine)& Agrotech Foods (50% each) 500 sunflower, rapeseed, corn, millets, paddySyngenta Syngenta 500 sunflower, corn, cotton, milletsPioneer Dupont 450 sunflower, corn, milletsJK JK Group 400 cotton, millet, cornAnkur family 400 vegetables, cottonSeminis Fox Paine 300 vegetablesIndo-American family 300 vegetables, flowersEID Parry family; Monsanto (51%) 100 sunflower, cotton, paddyNath family 100 cotton, millet, corn
Total 10000
Key Indian Seed Players
Namdhari
8%
Nuziveedu
8%
Ganga Kaveri
6%
Advanta India
5%
Syngenta
5%
Pioneer
5%
JK
4%
Ankur
4%
Seminis
3%
Indo-American
3%
EID Parry
1% Nath
1%
Proagro
8%
Monsanto
11%
Emergent
14%
Mahyco
14%
Mahyco
Emergent
Monsanto
Proagro
Namdhari
Nuziveedu
Ganga Kaveri
Advanta India
Syngenta
Pioneer
JK
Ankur
Seminis
Indo-American
EID Parry
Nath
Market Share of Key Indian Players
Cotton is the most important segment because of a high percentage of
cultivated area under research hybrids.
Attractive research hybrid seed segments
Marketshare by value of Key Hybrid Crops
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Cotton Maize Sorghum Bajra Sunflower
0
20
40
60
80
100
120
140
Production (MT)
Value (US$ Mn.)
(
Key Hybrid Crops: Sales
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Cotton Maize Sorghum Bajra Sunflower
0
20
40
60
80
100
120
140
Production (MT)
Value (US$ Mn.)
(
Key Hybrid Crops: Sales
Seed Act, 1966 – min. quality standards, certification & procedures for evaluating varieties
Public sector dominated the industry until 1971
1971 – National Commission on Agriculture recommended breaking of public sector stranglehold – Indian private sector enter the sector
1988 – New Seed Policy – entry of MNCs; import of seeds and germplasm allowed for research
Seed Policy is still very restrictive and detrimental to farmers
2002 – Comprehensive Seed Policy – to overhaul existing Seed Act – should usher new growth in the liberalised era
Background – The Role of Regulation
Public sector – in self-pollinated crops of which wheat & rice account for 60%
Private sector mainly in hybrids that are low in volume but high in return
Opportunity lies in converting users of farm-saved seeds and public hybrids
In terms of volume, paddy and wheat offer largest opportunity
Public & Private Sector Activity
Agriculture growth must keep pace with growing demand; food grain demand growing at 3.4-5.5%p.a.
Efficiency to improve in use or resources –decline in land & water resource base for average farm holding
Fertiliser must be used wisely and there should be adequate storage infrastructure
Agriculture tech management must become efficient to take advantage of expanding production & marketing opportunities
Tariff and non tariff barriers imposed by developed countries
Thrust to high yielding & efficient inputs like seeds
Indian Agriculture – Challenges Ahead
Cereals, Oilseeds, Cotton, Vegetable Cereals dominate the seed market hybrids in Corn,
Sorghum, Pearl millet, SSG Major opportunities in Wheat and Rice Sunflower dominate in oilseeds with opportunities in
Brassica (‘00’ and transgenic) 2:1 ratio of private to public hybrids in Cotton; Tomato (28%), Cabbage(23%), Brinjal (14%) – major
share of hybrids 3.12 mn ha under vegetables; Current mkt. value for
hybrids INR 200Cr, varietal INR 50Cr
Types of Seed Produced in India
