Indian Seed Industry

Progression of Indian Seed Industry
April 8, 2014
Venugopal Chintada
Sathguru Management Consultants
Agenda of the presentation
Global Seed market
World Food Demand
Indian Seed market
Size
Crop profile
Structure
Value chain Stakeholders
Growth drivers
Interventions and Impact
Product quality & SRR

Government Interventions
Other interventions
Global Seed Market
Total Market Size: USD 45 Billion, growing at a CAGR of 5%
India ranks 6th in global market with USD 2.7 Billion, growing at a
CAGR of 12%
Malawi seed market with USD 0.3 Bn
Estimated Value of Global Seed Market in

Selected Countries 2011 (USD Bn)
Fast growing countries in Seed market

(USD Bn), basis CAGR (2000 to 2010)
12%
8%
7%
7%
6%
5%
CAGR
India
United States
China
Germany
France
Brazil
Source: ISF Data 2013
World Food Production needs (2020 and beyond)
Global Population will reach 9 bn by 2050 requiring twice the food to be

produced from constant land area
Need for productivity and increasing pressure on profit is putting pressure on

sustainability
If world were to produce 2.5 times of current food, this is how the contributors will be
Breeding &
Biotechnology
250%
Farm
Practices
Land
Reduced
Losses
100%
50%
(-5%)
Current Crop
Production
80%
20%
Future Crop
Production
4
Source: Working paper no. 209; ICRIER; NSSO; interviews
More production from less land can be accomplished only

with combination of
Quality
Seed
Improved quality seeds
Improved Seed replacement

ratio: Shift from farm saved
seeds to hybrids increase
productivity
Combination traits to mitigate

multiple stress factors : e.g.
resilience to climate change
Combining planting materials

with Traits and technologies
Quality
inputs
Increased input efficiency Nutrients and water
Increased Agrochemicals
usage for crop protection
Increased nitrogen use

efficiency with reduced
carbon footprint
Farm
practices
Improved farming practices

mechanization, land
preparation, crop care and
harvesting
Increased pre & Post

harvest care
Use of quality seeds alone could increase productivity by 15-20% indicates the critical role of seed in agriculture.
5
What transformed the seed sector globally?
Research &
Development
Products
Market and
regulations
Increased investment in R&D by private sector

Combining discoveries in biology and information technology sequencing
genomics selection and molecular breeding supported by high-throughput
genotyping and phenotyping
Few companies and public institutions engaged in gene discovery, providing
access to major and minor genes to others for adoption in their germplasm
Rapid discoveries and conversion of discoveries to deliverables products

Protection to gene discoveries through patenting accelerated corporate investment
in gene discovery, complimenting public investment in crop genetics
Growing use of hybrid seed with several technological components (e.g. seed
coatings)
Growing international trade for fresh and processed food & FDI
Trade and capital flows across countries
Increasing number of favorable regulations
Increasing number of multinational companies
Indian Seed Market
Indian Seed Market: Size

Indian Seed Industry growth over years (Value in USD Bn)
Indian
Seeds
Market by
Value
(2010)
Indian
Seeds
Market by
Volume
(2010)
1990s
Farm saved seed: 90%, Commercial seed: 10%

Public bred hybrids (18%), open pollinated varieties (68%), proprietary hybrids (14% of market value)
2000s
Farm saved seed: 75%, Commercial seed: 25%

Public bred hybrids (11%), open pollinated varieties (61%), proprietary hybrids (28% of market value 2000)
Source: Avendus Capital Study on Sowing the seeds of success, 2011
Department of Agriculture and Cooperation; Shiva & Crompton, 1998
Indian Seed Market: Crop Profile

Market Value
% of Total
USD Bn
Growth %
market Value
(2010)
Type
Varietal
0.19
Hybrid
1.0
Genetically
Modified
(GM)
0.4
What are they
Replacem
ent Rate
Leading
Players
12
Open-pollinated
small regional
seeds which are
20-80% players & govt.
saved over years for
agencies
their desirable traits
63
Produced by
artificially crosspollinating plants;
offer better
characteristics over
the parents
25
1-2%
Seeds whose
genetic material has
16-17% been altered using
genetic engineering
techniques
R&D
Intensity
Low
100%
Syngenta,
Dupont,
Mahyco, J K
seeds,
Bioseed ,
Rasi, Bayer
Medium
100%
Monsanto,
Dupont,
Syngenta,
Rassi, Pioneer
High
GM seeds growth is expected to shoot up with introduction of GM traits in Egg plant & corn
GM seeds pulling the growth-curve for the seed industry with a CAGR of 15-20%
Indian Seed Market: Structure

~ 500 small
companies
~ 50 National
players
Public Sector
99 ICAR research institutes
65 agricultural Universities (SAUs & DUs)
15 State Seed Corporation (SSC)
National Seed Corporation (NSC)
State Farms Corporation of India (SFCI)
Private Sector
~ 500 small & medium players
~ 50 large national & Multinational
players
Majority of them with own R & D Units
Rest have technical tie-ups
1990s Overall market share 40%
Overall market share 60%

Major focus on high value, low volume crop
seeds E.g. vegetable
Research focus Pest & disease resistance
2000s Overall market share 24%
Overall market share 76%

Research focus improved nutritional profile
Major focus on high volume, low value crop

seeds E.g. Rice, wheat
Productivity oriented research
Focus on E.g. Rice, wheat
Research for a-biotic stress resistance & involving
high cost & investment
Seed Value Chain: Stakeholders

International
Germplasm sources
International
Development
bodies
National Seed
Associations
Technical tie-ups
Policy changes at national

& international level
Private
research firms
Private Seed
Companies
Platform to address national

seed industry concerns
State Agriculture
Universities &
research Institute
Dedicated research & development
Contract production
Contract
Seed Farmer
NSC & SSC

Control over seed trade & business
Seed Dealers
& distributors
Ensure timely supply of seed
Farmer
Farmers cooperatives
Indian Seed Market: Growth over years & growth drivers

Regulatory framework
Enactment of suitable legislations
Market liberalization to increase availability of high-quality seeds to Indian farmers
Relaxation of norms for export to overseas country
Research & Technology
Sharing of germplasm and breeder seeds of public-bred varieties
Minimum restrictions and proper safeguard mechanism for import of germplasm & hybrids/ varieties
Acceptance and commercialization of new seed technology, GM traits, use of biotechnology
Investments by public/ private players
Foreign Investment
Technical and financial assistance in the early stage of development from foreign aid agencies such as
USAID, Ford Foundation and Rockefeller Foundations, World Bank to strengthen the breeding, seed
production, distribution, processing, and quality control infrastructure in public and private sectors
Entry of multinational corporations into the Indian seed business through equity participation
Environment
Public-private partnership
Special schemes for upgrading quality of farm saved seed and improving Seed Replacement Rate
Extension programs for awareness generation and easy accessibility of quality inputs
Introduction of the Seed Technology subject at graduate and Post graduate level
Source: Avendus Capital Study on Sowing the seeds of success, 2011
Department of Agriculture and Cooperation; Shiva & Crompton, 1998
Interventions and Impact
From Challenges to Robust Growth

Impact
Interventions
Product related:
Focus on seed quality improvement
Various news channels & broadcastings
focusing on importance of quality seed
Challenges Faced
Inadequate supply of seed
Wide range of crop options

Market oriented crop cultivation
Quality up gradation of farmer saved
seed
Farmer cooperatives formation for
seed production
Contract seed production with
private player
Cultivation of exotic crops for export
Increased income for farmers
Community gene Banking and on farm

conservation of germplasm
Market related:
Model Seed Village program
Poor quality and Poor yielding

varieties
Encouragement to private sector to work with

small farmer
Developing market for agriculture produce
Use of farm saved seed
Government:
High susceptibility to pest and

disease, erratic monsoon
Establishment of National seed corporations

and state seed corporations
Isolated from market service
Improved Seed Replacement Ratio

and Improved yields
Investment in R & D at research institutes
Limited range of crops
Lack of extension
Krishi Vighyan Kendras extension services

Focus on agriculture education
Product related Intervention: Quality seed supply is one of the

important factors driving increased agricultural production in India
Year
Food Grain Production

(Million Tones)
Cotton production
(Million Bales)
Oil Seed Production

(Million Tonnes)
Quality Seeds
distributed
(Million Qtls)
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
50.82
82.02
108.42
129.59
176.59
195.93
3.04
5.6
4.76
7.01
9.84
9.65
5.16
6.98
9.63
9.37
18.61
18.4
0.5
3.5
5.71
8.54
2011-12
259.32
35.2
28.82
40.0
Import of high yielding varieties & breeding lines

Breeding programs for Hybrids & transgenic crops: Cereals, millets, vegetables,
Investment in R & D by private sector 10 to 12% of total revenue
Technical tie-ups for sourcing high value germplasm
Public- Private partnership for high end products & their commercialization
Consolidation of private firms for high cost technology development
Model Seed Village

A village, wherein trained group of farmers are involved in production 'of seeds of various
crops and cater to the needs of themselves, fellow farmers of the village and farmers of
neighboring villages in appropriate time and at affordable cost
Quality Seed supply from public & private sector
Farmer Capacity building
Establishing seed processing unit
Impact: Increased production and yield over years
Production (million tonnes)

Year
Yield (kg/ha)
Rice
Wheat
Maize
Oilseeds
Pulses
Rice
Wheat
Maize
Oilseeds
Pulses
2002-03
71.8
65.8
11.2
14.8
11.1
1744
2612
1681
691
543
2003-04
88.5
72.2
15.0
25.2
14.9
2078
2713
2041
1064
635
2004-05
83.1
68.6
14.2
24.4
13.1
1984
2602
1907
885
577
2005-06
91.8
69.4
14.7
28.0
13.4
2102
2619
1938
1004
598
2006-07
93.4
75.8
15.1
24.3
14.2
2131
2708
1912
916
612
2007-08
96.7
78.6
19.0
29.8
14.8
2202
2802
2335
1115
625
2008-09
99.2
80.7
19.7
27.7
14.6
2178
2907
2414
1006
659
2009-10
89.1
80.8
16.7
24.9
14.7
2125
2839
2024
958
630
2010-11
96.0
86.9
21.7
32.5
18.2
2239
2989
2540
1193
691
2011-12
105.3
94.9
21.6
30.0
19.1
2393
3177
2476
1133
699
%
Change
47%
44%
93%
103%
72%
37%
22%
47%
64%
29%
Product related Intervention: Quality certification standards

Seed Certification standards
Specific crop standards
General Seed Certification standards

Field standards
a) Land requirement
b) Minimum isolation distance
c) Inspections
d) Minimum specific crop standards- off types
Diseases
OBW
Inseperable crop plants
Pure Seed
Other crop seed
Objectionable weed seed
Specific seed standards

Purity analysis
-Pure seed (min.)
-Inert matter (max.)
-- Other crop seed (max.)
a) Weed seeds (max.)
b) Objectionable weed seeds
c) Germination (min.)
d) Moisture content (Ord. & VP)
Inert matter
17
Product related Intervention: Quality certification standards
Wheat
Paddy
Barley
Maize
Sorghum
Pearl millet
Requirements
F.S
C.S
F.S
C.S
F.S
C.S
F.S
C.S
F.S
C.S
F.S
C.S
Pure seed (min.)
98
98
98
98
98
98
98
98
98
98
98
98
Inert matter (max.)
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
10 / kg
20 / kg
10 / kg
20 / kg
10 / kg
20 / kg
10 / kg
20 / kg
5/Kg
10/Kg
10 / kg
20 / kg
Total Weed seeds
10 / kg
20 / kg
10 / kg
20 / kg
10 / kg
20 / kg
10/Kg
20/Kg
5 / kg
10 / kg
10 / kg
20 / kg
Obj. weed seeds

(max.)
2 / kg
5 / kg
2 / kg
5 / kg
10 / kg
20 / kg
None
None
10 / kg
20 / kg
None
None
85
85
80
80
85
85
90
90
75
75
75
75
Moisture (max.)
12.0
12.0
13.0
13.0
12.0
12.0
12.0
12.0
12.0
12.0
12.0
12.0
Vapour proof
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
Other crop
(OCS) (max.)
Germination
H.S)
seed
(incl.
F.S Foundation seed

C.S Certified seed
Product related Intervention: SRR improvement
SRR over a decade has almost doubled for most of the crops
Vegetable seed opportunity witnesses high replacement of varieties to hybrids
Seed Quality regulations to avoid chances of spurious seed business

Seed village program to strengthen & improve farm saved seed quality
Voluntary certification
Distribution channel establishment to improve seed availability
Awareness programs by Krishi Vigyan Kendras and Agriculture Extension officials
Product related Intervention: SRR improvement
Sl. No.
Crop
India SRR %
Wheat
30
Paddy
27
Maize
48
Sorghum Variety (Hybrid)
13.5 (100)
Pearl millet Variety (Hybrid)
98 (100)
Bengal gram
20.97
Black Gram
50.82
Green Gram
35.12
Red Gram
30.74
Groundnut
5.76
10
Soybean
57.76
11
Sunflower variety (Hybrid)
45 (94)
12
Cotton variety (Hybrid)
61 (100)
Use of Farm saved seed is common in even

India
High prices of seeds force farmer to use his
own seed
Government efforts to improve quality of
farm saved seed would include
Providing quality pedigree variety seed
Training
on
selection, multiplication, treatment &
storage of seed
Encouraging community based seed
production
encouraging seed replacement at
regular interval
Government Interventions
Associations & Agencies

ICAR, ICRISAT, IARI
National Seed Corporation (NSC):
Main certification body to provide
foundation & certified seed to
farmers
State Seed Corporations (SSC):
Regulate seed market across
regions
Seed testing & certification: 108
laboratories and 2 central
laboratories in the country
National Seed Research and
Training Centre
Policy & Regulatory
Infrastructure
Seed Act: To regulate quality of

seeds by regulations for Labeling &
voluntary certification for purity,
germination %
National Seed Program (World

Bank): Capacity building for seed
research, production, processing &
marketing: Training & technical
assistance
Liberalization of FDI norms:

Encouragement to MNCs
(Monsanto, Bayer, BASF etc. to
enter in seed sector
Import of high quality seeds &
germplasm allowed
Seed Bill: Stimulate investment in
R&D, Strengthening of India Patent
act to protect both product and
process
Subsidies on seed to farmers
Strengthening plant quarantine

framework
National Mission on Agricultural
Extension and Technology (NMAET)
Warehousing Development and
Regulatory Authority (WDRA)
Financial support to farmers:
Microfinance, Loans
Other Interventions
Public Private Partnerships
Agriculture Education System
~50 SAUs for quality assurance in agricultural education International linkages
Courses with emphasis on hands-on training, experiential learning for skill development
~ 250 Experiential learning centers, ICT supported teaching
Farmer trainings
Platform for India-Africa Partnership in Agriculture (PIAPA)
ICRISAT South-South Initiative (IS-SI)
ICAR and ICRISAT with partners from private institutions

For focused and systematic international partnerships critical for a more effective and inclusive
development cooperation between India and Africa
Better policies, more effective institutions, improved infrastructure, and better access to markets and
to high quality inputs particularly for dry-land farmers in India and Africa.
The IS-SI activities at ICRISAT will be executed through four major programs:
High yielding pearl millet hybrids from India
High iron and zinc bio-fortified sorghum
breeding lines
Soil-test based nutrient
Science
amendment with micro-nutrients
Based
Innovations
Knowledge sharing platforms for

providing research results
ICT & innovative extension systems
from India programs to Africa
Training & capacity building
scientists, faculty, extension
agents, student, farmers
Scholarships to PG and PhD students
Knowledge
Centered
Learning
Innovation
Agribusiness
incubation
centers
Food
processing
clusters
Public private Partnership to establish:

Agribusiness incubators in agricultural
universities & research institutes
Focus on specific crop value chain
Public private Partnership to

establish:
Food Processing Business Incubation
Centres
Food Testing Laboratories
http://www.is-si.icrisat.org/
Cornell Sathguru would like to engage with you

through
the AIP - Malawi initiative to build
A VIBRANT SEED SYSTEM IN MALAWI!

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What are the key trends observed in the global seed market?

What are the key trends observed in the global seed market?

How is the Indian seed market evolving?

How is the Indian seed market evolving?

Progression of Indian Seed Industry

Agenda of the presentation

Global Seed market

World Food Demand

Indian Seed market

Interventions and Impact

Product quality & SRR

Global Seed Market

Total Market Size: USD 45 Billion, growing at a CAGR of 5%

Malawi seed market with USD 0.3 Bn

Estimated Value of Global Seed Market in

Fast growing countries in Seed market

Source: ISF Data 2013

World Food Production needs (2020 and beyond)

Global Population will reach 9 bn by 2050 requiring twice the food to be

Need for productivity and increasing pressure on profit is putting pressure on

More production from less land can be accomplished only

Improved quality seeds

Improved Seed replacement

Combination traits to mitigate

Combining planting materials

Increased input efficiency Nutrients and water

Increased nitrogen use

Improved farming practices

Increased pre & Post

What transformed the seed sector globally?

Increased investment in R&D by private sector

Rapid discoveries and conversion of discoveries to deliverables products

Indian Seed Market

Indian Seed Market: Size

Farm saved seed: 90%, Commercial seed: 10%

Farm saved seed: 75%, Commercial seed: 25%

Indian Seed Market: Crop Profile

What are they

Indian Seed Market: Structure

1990s Overall market share 40%

Overall market share 60%

2000s Overall market share 24%

Overall market share 76%

Major focus on high volume, low value crop

Seed Value Chain: Stakeholders

Policy changes at national

Platform to address national

NSC & SSC

Indian Seed Market: Growth over years & growth drivers

Interventions and Impact

From Challenges to Robust Growth

Wide range of crop options

Community gene Banking and on farm

Model Seed Village program

Poor quality and Poor yielding

Encouragement to private sector to work with

Use of farm saved seed

High susceptibility to pest and

Establishment of National seed corporations