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The Indian Seed Industry

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Page 1: The Indian Seed Industry

8/9/2019 The Indian Seed Industry

http://slidepdf.com/reader/full/the-indian-seed-industry 1/2

y  The Indian seed industry is the eighth largest in the world with an estimated value of INR 49

 billion (USD 1.06 Billion) and with an annual growth rate of 12% to 13 %.

y  The production capacity 70% of India¶s seeds¶ sales come from farmer bred seeds, 26% from

those bred in publicly financed institutions, and only 4% from researched hybrids. The

domestic hybrid seeds market is placed at INR 4.9 Billion and is annually growing at 10% a

year, against the 5% global growth rate. Here, majors players like Monsanto India and

Syngenta India dominate the hybrid seed market. The home market works out to about 3.7%

of the global market.

y  India has sizeable public and private sector seed businesses. Giant public sector players

include the National Seeds Corporation (NSC), the State Farms Corporation of India (SFCI)

and the thirteen State Seed Corporations (sscs). NSC was the first public sector organization,

established in 1963, and remained virtually the only agency for seed production for around

13 years. Its role extended to several developmental programmes including training, quality

control and extension activities in seeds. This was followed by the setting up of the sscs

under two consecutive plan periods, supported by the World Bank, and these largely adoptedthe role of the NSC in the Indian States. These corporations engage principally in production

and marketing of seeds of high yielding and hybrid varieties developed by the public sector 

y  The private sector accounts for 70% of the market in terms of market turnover whereas the

 public sector has the greater share in terms of volume sales.

y  The total seed requirement (for all the crops put together) is estimated to be at 1.23 crore

quintals, the availability is pegged at 1.42 crore quintals, showing a surplus of 18.81 lakh

quintals

y  The Rs 6,500-crore seed industry too is bracing for the season, which it considers a very

critical year given the skyrocketing cost of production and the curbs on pricing by some

States

y  On May 18, 2010, GOI allowed exports of 100,000 metric tons of non-basmati rice

(parboiled) to Bangladesh through select Public sector undertakings - State Trading

Corporation (50,000 MT), MMTC (25,000 MT) and PEC (25,000 MT).

y  The NSAI has asked the Ministry of Agriculture to ensure that seed prices are not fixed

arbitrarily by state governments

y  Procurement of rice as on December 1, 2009 11.46 (Kharif marketing season 2009-10) stood

at 12.29 million tonnes which represents an increase of 7.24 per cent over the level of 11.46

million tonnes as on the corresponding date last year. Wheat procurement as on December 1,2009 (Rabi marketing season 2009-10) was placed at 25.38 million tonnes which represents

an increase of 11.86 per cent as compared with 22.69 million tonnes in the corresponding

date last year.

y  Estimates released on 12 Feb, 2010, the production of food grains is estimated at 216.85

million tonnes during 2009-10 as compared to 234.47 million tonnes in 2008-09

Page 2: The Indian Seed Industry

8/9/2019 The Indian Seed Industry

http://slidepdf.com/reader/full/the-indian-seed-industry 2/2

y  India seed sector is undergoing a silent transition to branded varieties The impact of this is

witnessed in the interior regions, where farmers are busy gauging the possible benefits of 

shifting to the branded, value-added hybrid seeds which give better prices and higher yields

in relatively shorter span of their cropping activities.

y  The changing pattern, in the retail food industry, has prompted the farmers to increase seed

replacement rates in India for crops. Around 10-12 per cent of the normal seeds market has

already shifted to the hybrid seeds or valued-added seeds,

y  Competition in the seed business, non-existent till two decades ago, is thriving, as the

organised sector, which constitutes just 25% of the market

Reference-

y  http://www.contractedwork.com/rt.cfm?projectid=33305

y  http://www.new-ag.info/01-2/focuson/focuson6.html

y  http://gain.fas.usda.gov/recent%20gain%20publications/weekly%20highlights%20and%20ho

t%20bites%20no.%2021_new%20delhi_india_5-28-2010.pdf