Namrata Yes Bank Indian_seed_industry

SUMMER TRAINING PROJECT REPORT

ON

INDIAN SEED INDUSTRYINDIAN SEED INDUSTRYINDIAN SEED INDUSTRYINDIAN SEED INDUSTRY

Submitted to:

Under the Supervision of

Mr. Sridhar V.

Submitted by:

Namrata Rawat

PGPABM (2006-08)

1

INDIAN SEED INDUSTRY | Yes Bank Ltd.

DECLARATION

This is to declare that, I, Ms. Namrata Rawat, student of Post Graduate Programme in

Agribusiness Management (2006-2008), NIAM, JAIPUR, has given original data and

information to the best of my knowledge in the project report titled “Indian Seed

Industry” and that, no part of this information has been used for any other assignment

but for the fulfillment of the requirement towards the completion of the course.

Namrata Rawat

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CERTIFICATE

This is to certify that Ms. Namrata Rawat is a bonafide student of Post Graduate

Programme in Agribusiness Management (2006-2008), NIAM, Jaipur and has

participated as summer trainee in our company for the period May-June. She has

successfully completed her summer project titled “Indian Seed Industry”, towards the

partial fulfillment of the requirements for the course.

Dated: (Mr. Sridhar V)

Project Guide

Yes Bank Ltd.

3


CERTIFICATE

This is to certify that Miss Namrata Rawat, a bonafide student of Post Graduate

Program in Agri-Business Management (2006-08), NIAM, Jaipur has worked as

Summer Trainee in YES BANK LTD. for the period May-June. She has successfully

completed her Summer Project titled “Indian Seed Industry” towards the partial

fulfillment of the course.

Dated: (Dr. Kamal Mathur)

Director, PGPABM

NIAM, Jaipur

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ACKNOWLEDGEMENT

I wish to take this valuable opportunity to express my sincere thanks to Yes Bank Ltd.

for providing me a chance of learning. The project not only helped me to understand the Indian

Seed Industry, in depth, but widened my vision in general management too, by virtue of being

associated with an excellent and professional organization.

I would like to thank Mr. Kalyan Chakravarthy, Mr. Sridhar V and Mr. Raju Poosapati

for giving me an opportunity to work as a summer trainee in Yes Bank Ltd.

I am also thankful to Mrs. Suman Lata from Yes Bank Ltd. for her support during the

project.

This project would neither have been started nor completed without the encouragement

and support of many people, most notably the officials and staff of Yes Bank Ltd., and all those

good and kind hearted persons I met during these two months period.

I am also thankful to Dr. Kamal Mathur, Principal Coordinator, NIAM, for his guidance,

which has always been there with the students of PGPABM course and thanks to all the NIAM

faculty and staff, for their support on numerous occasions during the project.

I am thankful to all my seniors especially Mr. Amit Shekhar, Mr. Anuj Kumar

and Ms. Veena and my batchmates whose help at various stages of my project would

be always cherished and admired.

Thanks to Almighty and my deep regards for my loving parents who are the most valuable

possessions in my life and have always been there to support me in all my ups and downs.

The financial support from Yes Bank Ltd for this project is gratefully acknowledged.

Regards,

Namrata Rawat

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TABLE OF CONTENTS

Abbreviations 7

Executive summary 8

Research Objectives and methodology 9

1. Introduction

1.1 Overview of Global Seed Industry

1.2 Overview of Indian Seed Industry

10-17

2. History of Indian seed industry 18-19

3. Regulatory Perspective

3.1 Industry Regulation and Quality Control

3.1.1 The Seed Act, 1966 and Seed Rule,

1968

3.1.2 Seed Control Order, 1983

3.1 Phytosanitary Regulations

3.2.1 The Destructive Insect and Pest Act, 1914

3.2 Intellectual Property Rights

3.3.1 Plant Variety Protection and Farmers’

Right Act, 2001

3.3.2 National Seed Policy

20-22

4. Structure of Indian seed industry

4.1.1 Public

4.1.2 Private

4.1.3 Public-Private

23-29

6


5. Crop seed description

5.1 Cereals

5.1.1 Hybrid Rice

5.1.2 Hybrid Maize

5.2 Millets

5.2.1 Pearl Millet

5.3 Forage crops

5.3.1 Sorghum

5.4 Oilseeds

5.4.1 Sunflower

5.4.2 Soybean

5.5 Vegetables

5.6 Fibre crops

5.6.1 Cotton

30-73

6 Profile of Major Seed Companies 74-92

7 Case Study: GM crops in India 93-128

8 Issues and challenges in the Indian seed industry 129

9 SWOT Analysis 130-131

10 Recommendations 132-135

11 Annexures 136-145

12 Questionnaire 146-163

13 References 164

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ABBREVIATIONS

NSC-National Seeds Corporation

SSC-State Seed Corporation

DBT-Department of Biotechnology

GEAC-Genetic Engineering Approval Committee

NBRI-National Botanical Research Institute

IARI-Indian Agricultural Research Institute

DRR-Directorate of Rice Research

CIMMYT- International Maize and Wheat Improvement Center

USDA-United State Department of Agriculture

HYV-High yielding variety

IRRI- International Rice Research Institute

SFCI- State Farms Corporation of India

APSSDC- Andhra Pradesh State Seed Development Corporation

KSSDC- Karnataka State Seed Development Corporation

WBSSDC- West Bengal State Seed Development Corporation

UPSTDC- Uttaranchal Seeds and Tarai Development Corporation

OPV-Open pollinated variety

SAI-Seed Association of India

MMBL- Mahyco Monsanto Biotech (India) Ltd

SRR-Seed replacement ratio

SMR-Seed multiplication ratio

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EXECUTIVE SUMMARY

Ever increasing population of India is leading to diminishing food, land and clothes,

which are the basic needs of the humans. India is progressing in every aspect, whether

it is technology, production, etc but this progress may get limited by the geometrically

increasing population. The increase in consumption is much higher as compared to the

increasing production. It is very difficult for a country to grow in a situation when the

citizens of the country are not getting sufficient food, which is the most important need.

This is very true for India as nearly 25% of the population is unable to meet its food

requirements. Since now, we were talking about bringing of more and more land under

production so as to feed the growing population, but now the condition does not allow

thinking in this way. As land is becoming scarce because of industrialization, we can’t

think of bringing more land under cultivation. In this situation, the main concern has

been shifted from production to productivity. We have to think not only how to grow

more but how to grow more from same piece of land. Pesticides, insecticides, and

fertilizers can improve the production but cannot increase it beyond the potential yield.

So the only reform we can make is to improve the seeds, which are the basic input in

agriculture. Unless the seeds are productive, whatever is the amount of fertilizer,

pesticides, etc; they are of no use. Seeds are the critical input in an agriculture process. It

limits the efficiency of all other inputs. It is a perishable input and requires a good

research and development. So, with the focus moving from increased production to

increased productivity, the Indian Seed Industry needs to concentrate on the seed

improvement, by vigorous research and development in order to create seeds with

higher productivity, and to make India prosper by helping the mass fulfill its basic

needs.

To explore the potential of Indian seed industry, a study was done to know the status of

Indian seed industry. This report reflects the trends observed in the industry, the issues

and challenges, and the key segments for growth. Based on the analysis; the project

brings out the growth prospects in the Indian seed industry and recommendations of

actions for the growth.

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RESEARCH METHODOLOGY

Research Objectives:

1. Study of Global scenario of commercial Seed Industry.

2. Study of the emerging trends in the Seed Industry.

3. Analysis of Indian Seed Industry in context of growth.

4. Recommendation of actions for the growth of Indian Seed Industry.

Research Design:

The research was done through constructing questionnaire, interviewing key officials in the

Indian seed industry, secondary data collection from internet, magazines, and analyzing data

through the use of software packages like Microsoft Excel, SPSS.

Questionnaire:

A questionnaire was designed for the Key officials in the Seed Industry. The questions were

both open ended and closed ended.

Interviewing:

A meeting was organized at Seed Association of India towards fulfillment of objectives.

Data analysis:

The data was analyzed in software packages like Microsoft Excel and SPSS.

Limitations of study:

1. Limited time factor

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GLOBAL SCENARIO OF SEED INDUSTRY

The commercial world seed market is approximately US$ 34 billion. It is dominated by

US Seed Industry. The Indian seed market is of US$ 1300 million, and ranks 6th in the

world seed market. Its size is approximately 4% of the size of World seed market.

ESTIMATED SIZE OF DOMESTIC MARKET FOR SEED IN SELECTED

COUNTRIES (IN US$ MILLION) IN 2007

Source: www.worldseed.org

The commercial world seed market is approximately US$ 34 billion.

The US based seed company Monsanto is dominating the seed market with more than

20% share in the global proprietary seed market.

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WORLD’S TOP 10 SEED COMPANIES

BASED ON 2006 SEED REVENUES

Company Country Seed sales(US$ m) in 2006

Monsanto US 4,028

Dupont US 2,781

Syngenta Switzerland 1,743

Groupe Limagrain France 1,035

Land O' Lakes US 756

KWS AG Germany 615

Bayer Crop Science Germany 430

Delta & Pine Land (acquisition

by Monsanto pending)

US 418

Sakata Japan 401

DLF-Trifolium Denmark 352

Source: ETC Group

The value of the overall commercial seed market was $22,900 million in 2006 (includes

seeds purchased from public breeding programs).

Source: Context Network

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SEED EXPORTS (US $ MILLION) IN 2005

Country Seeds exports (US$ million)

USA 922

Netherlands 784

France 688

Germany 340

Canada 215

Denmark 178

Italy 171

Chile 171

Belgium 123

Mexico 109

Hungary 106

India 16

Others 1081

Total 4904


India contributes 0.32% to the total value earned from seed exports in the world.

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SEED IMPORTS (US $ MILLION) IN 2005

Country Seeds imports (US$ million)

USA 506

Mexico 372

France 332

Netherlands 329

Spain 305

Germany 301

Italy 271

Canada 210

United Kingdom 134

Belgium 129

Japan 127

Poland 110

Russian Federation 109

India 21

Others 1607

Total 4863


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CONSOLIDATION IN THE SEED INDUSTRY

Year Partner

Companies

Nature of

transaction

Transaction

value

Strategic interest

April 1998 Monsanto and

Mahyco

Monsanto

acquires 26%

stake in

Mahyco

Rs 182 crore Mahyco has strong dealer distributor

network in India so Monsanto doesn’t need

to set up its own network and gets a ready

team to promote its products into the

country.

March 2002 Emergent Genetics

Inc., USA and Paras

Extra Growth Seeds

Company Limited,

Hyderabad, India

Acquisition of

Paras by

Emergent

Genetics

US $25 million The acquisition enabled Emergent Genetics

to consolidate its presence in the high

volume and high value hybrid cotton and

also gain entry into vegetable market in

India.

December

2002 Dupont’s Pioneer Hibred International Inc. and Denghai Seed Group, China

JV’s

Shangdong

Denghai

Pioneer Seeds

Co’ formed

Pioneer can gain entry into Chinese corn market, which is second in size after US corn market. By launching its high yielding corn hybrids, Pioneer can aim for market leadership in the country.

December

2002 Savia SA (holding company of Seminis Inc.) and Fox Paine and Company LLC

Strategic

Investment of

Fox Paine

through

acquisition of

Seminis

shares

US $222 million Seminis has got benefit from the new capital structure, strategic environment and expertise of Fox Paine. Seminis’ new growth plans in the emerging markets expected to get a boost as a result of this alliance.

January

2003

Delta and Pine Land

Company and Dow

Agro Sciences

Technical

collaboration

Delta Pine can bring transgenic technology

with insect resistance to its commercial

cotton varieties by sourcing it from Dow.

March 23,

2005

Monsanto and

Seminis

Complete

acquisition of

Seminis by

Monsanto

$1.4 billion in

cash and

assumed debt

Monsanto can use the most diverse

germplasm pool of vegetable seeds. It has

provided Monsanto readymade leading

position in untapped seed segment.

April 2005 Emergent Genetics and Monsanto

Acquisition of

Emergent

Genetics’

$300 million Emergent gives Monsanto a branded cotton seed presence that complements its germplasm development and licensing in its Cotton States business, forming a

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businesses

other than

Emergent

Genetics

Vegetable

A/S located in

Denmark by

Monsanto

branded and licensed seed platform for cotton that mirrors the business model Monsanto has established in its corn and soybean businesses.

May 2007 Bayer Crop Science

and US cotton seed

company Stoneville

of Monsanto

Bayer Crop

Science

acquires US

cotton seed

company

Stoneville of

Monsanto

US-$ 310

million

The purchase of the US Stoneville business

is an extension of the company’s strategy

to grow its presence in the US cotton

market via new product development,

organic growth and acquisitions.

June 2007 Delta and Pine Land

and Monsanto

Monsanto

acquires Delta

and Pine Land

$1.5 billion The takeover means that Monsanto will command a dominant position in one of the world's most important agricultural trade commodities as D&PL subsidiaries in 13 countries - including major markets such as China, India, Brazil, Mexico, Turkey and Pakistan and that millions of cotton farmers will be under increased pressure to accept genetically modified (GM) cottonseed.

July 2007 Bayer crop Science’

Nunhems and Seed

Ex (Korean

vegetable seed

company)

Acquisition of

Seed Ex by

Bayer Crop

Science’

Nunhems

This acquisition provides the company to strengthen its market position in Hot Pepper and Brassica in Asia. The SeedEx team with its well recognized breeding competence and market know-how can be an excellent reinforcement of Nunhems’ global teams.

Pending Golden Seeds,

Bangalore and

Advanta India Ltd.

Advanta India

Ltd. is going

to acquire

Golden Seeds

Rs 601 million

and 175 million

for inventory

and receivables

This acquisition provides the company a platform in vegetables seeds and will help the company to develop a strong position in the Indian and Asian vegetables seed market. The company hopes to leverage the strong brand equity of Golden Seeds, their proprietary germplasm base, excellent breeding programs and outstanding production capabilities to establish a leadership position in this market segment for the company.

Source: Industry sources

16


INDIAN SEED INDUSTRY

In India, seeds can be obtained from various sources like state agricultural universities,

private companies and retained seed of previous season. Today Indian Seed Market is

flooded with a large number of private and public players, but it is still dominated by

the farm saved seed.

The organized seed market of India is about Rs. 5300 crores, in which the hybrids

contribute the major share. Out of this, private sector has about 60% share and the

public sector has 40% share by value.

In case of hybrids, private sector has 85-90% market share by value, whereas the seed

production of open pollinated varieties is dominated by the public sector. No data is

available regarding the farm saved seeds used by the farmers, but mostly it is seen in

open pollinated varieties.

The Indian seed industry has about 4% share in the Global seed market.

The seed market in the country is dominated by varietal seeds that farmers retain from

prominent food and commercial crops.

The seed replacement ratio is very low for most of the crops exception being cotton and

some vegetables. For a productive agriculture, seed replacement ratio should be at least

30%.

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Earlier the R&D was confined to public sector only, but not with the coming up of large

number of multinationals in the Indian seed market, creating huge investments, the

private sector has also come up with their R&D.

Private companies are trying out aggressively to find out the new combinations.

R&D INVESTMENT BY SEED COMPANIES

Name of Seed Company R&D Investment (Rs. Lakhs)

Ajit Seeds Ltd. 346

Ankur Seeds Pvt. Ltd. 313

Emergent genetics India Pvt. Ltd. 323

Ganga Kaveri Seeds Pvt. Ltd. 138

Indo American Hybrid Seeds (India) Ltd. 169

Krishidhan Seeds Ltd. 415

Namdhari Seeds Ltd. 201

Nirmal Seeds Pvt. Ltd. 114

Nunhems Seeds Ltd. 147

Rasi Seeds Ltd. 112

Seminis Vegetables Seeds India Ltd. 170

Tulsi Seeds Pvt. Ltd. 120

Source: DSIR Annual Report 2005-2006

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HISTORY OF INDIAN SEED INDUSTRY

The history of Indian seed industry can be traced back to 1963 with the opening of

National Seeds Corporation. In the 1960’s, the introduction of high yielding varieties of

Lerma Rojo and Sonora-64 of wheat led to green revolution in the country. The food

grain production was increased considerably which changed India from a hunger

starved nation to a nation which can fulfill most of its food need by itself. With this, the

Government realized that India should go for seed production and maintenance of seed

stocks to meet the food security needs of the people of India and so that it can be used

at the time of need. Then in the year 1963, National Seeds Corporation was established

for the purpose of seed production, training, quality control and extension activities in

seeds which opened the doors for public sector in the Seed Industry. Nine State Seeds

Corporation were also established with the support of World Bank, for production and

marketing of seeds in respective states. Their number was increased to thirteen later on.

These are mostly confined to the production of certified seeds of high volume; low

value crops like rice and wheat, and had a limited presence in hybrid seed production.

They lagged behind in research and depended on Indian Council of Agricultural

Research (ICAR) and State Agricultural Universities for their breeder seed

requirements.

The New Policy on Seed development was established in 1988 with the objective of

providing an appropriate climate for the seed industry in order to utilize the available

and prospective opportunities, safeguard the interests of Indian farmers and conserve

the agro-biodiversity.

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Although some private companies were already there in the seed business but after this

policy, some more domestic companies entered in the seed business; thus enhancing the

involvement of private sector. These companies were involved in the production of

high value, low volume crops like vegetables.

When the winds of globalization and liberalization blew, all the countries got trapped

by it, and the trade with other countries as well as entry into other countries became

easy. Taking its advantage, many multinational seed companies like Monsanto entered

India through joint ventures with Indian companies. They targeted seed segments with

higher margins and thus are leading the seed industry in India.

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REGULATORY PERSPECTIVE

The Destructive Insects and Pets Act, 1914

This act was enacted to prevent the introduction and spread of destructive pests affecting crops.

This act gave the power of regulating or prohibiting the import of any article or class of articles which may cause infection to any crop generally by insects or class of insects into India as well as transport from state to state to the Central government. Penalty was kept for persons who knowingly exports any article or insect from another country or transports any article or insect from one state to another in India in contravention of a notification issued under this act.

No suit, protection or other legal proceedings shall lie against any person for anything in good faith done or intended to be done under this Act.

Breeder’s Seed Supply, 1986

Before 1986, the public sector institutions used to supply the breeder’s seed to the National Seeds Corporation for the production of foundation seed, which was then sold to the private sector for production of certified seed. This was a long process and the spread of improved publicly bred varieties was slow. Therefore the government decided to sell breeder’s seed of publicly bred self-pollinated varieties to private seed companies having adequate facilities and manpower to produce foundation and certified seeds. This decision helped to alleviate the shortage of certified seeds and stimulate seed production. New Policy on Seeds Development, 1988

It formed the basis of promotion and regulation of the Seed Industry, by removing the ban on private seed companies on the import of commercial seeds, reducing the restrictions on the import of germplasm and making the breeder’s seeds available to

21


these companies. New companies were allowed to start research, production and supply of seeds of proprietary hybrids. After this policy, there was lot of investment by the domestic seed companies, the output was increased, and the focus was shifted from high volume, low value crops like cereals to the low volume high value crops, like vegetables.

New Industrial Policy, 1991

Before 1991, foreign investors were allowed to have equity participation only up to 40 percent. From 1991, after the enactment of New Industrial Policy, the foreign investors were given permission to establish equity participation up to 51 per cent in priority sectors, including the seed sector. Non-resident Indians are allowed 100 per cent participation. The investors had to get the approval from the Reserve Bank of India.

Protection of Plant Varieties and Farmers’ Rights Act, 2001

Under this, a Plant Varieties & Farmers' Rights Protection (PVP) Authority was established to undertake registration of extant and new plant varieties through the Plant Varieties Registry on the basis of varietal characteristics.

The registration of new plant varieties, documentation of plant varieties registered under the PVP Act was enacted.

The farmers were given the right to save, use, exchange, share or sell farm produce of all varieties, with the provision that farmers shall not be entitled to sell branded seed of a protected variety under the brand name.

The rights of researchers to use the seed/planting material of protected varieties for bonafide research and breeding of new plant varieties was ensured.

A National Gene Fund was established for implementation of the benefit sharing arrangement, and payment of compensation to village communities for their contribution to the development and conservation of plant genetic resources and also to promote the conservation and sustainable use of genetic resources.

It promoted the growth of a healthy seed industry by fostering regular interaction amongst the private and public researchers, seed companies and development agencies.

22


It laid emphasis on the technical collaboration and relationship with regional and international organizations so as to have upgraded knowledge about global developments in the field of Plant Variety Protection.

National Seed Policy, 2002

It was made to enhance the seed replacement rates, to increase the production of quality seeds by enhancing the role for the private sector, to create the facilitative environment for the growth of competitive and localized seed industry, to encourage import of useful germplasm, to boost the exports, to accelerate the use of biotechnology for food and nutritional security, to enhance seed production so that wide range of seeds of superior quality is available in adequate quantity on a timely basis, to upgrade quality of farmer saved seeds, to form an appropriate climate for the seed industry to utilize available and prospective opportunities, to safeguard the interests of Indian farmers and to conserve the agro-biodiversity, and to give seed crop insurance scheme to provide effective risk cover to seed producers. It was made for the promotion of domestic industry, for liberalization of trade, for production of hybrid seeds and HYV at faster rate and for the abolishment of local taxation on the sale of seeds.

It also boosted private sector involvement, a lot of multinational seed companies entered Indian seed market. Also a gene bank was established to save the Indian germplasm.

Seeds Bill, 2004:

The changes which took place in the seed sector, led to the replacement of the existing Seeds Act, 1966, by a new legislation. The new act, has been created with the purpose of creating a facilitative climate for the growth of the seed industry; enhancing seed replacement rates for various crops; boosting the export of seeds and encourage the import of useful germplasm, and creating a conducive atmosphere for the application of frontier sciences in varietal development and for enhanced investment in research and development.

23


STRUCTURE OF INDIAN SEED INDUSTRY

Although a lot of domestic and multinational companies have entered the Indian seed

market, and developed a large number of varieties/hybrids for different agro climatic

conditions, even then a large number of farmers are using the farm saved seeds. The

seed replacement ratio in many crops except cotton and some vegetables is still low. It is

due to the habit of saving seeds by the Indian farmers. The farmers do not buy new

seeds every year, and use their saved seeds or seeds from other farmers. Thus the seed

trade occurs as local exchange between farmers. Earlier in 60’s, the seed sector was

dominated by public sector, but after enactment of New Seed Policy in 1988, many

private seed companies entered into Indian seed market with large investments. Also

after the Government decision of using biotechnology for crop improvement, many

multinationals with huge R&D base and capital investment have entered the Indian

Seed Industry. The share of pubic sector and private sector in the seed market is

changing continuously and is moving in favor of the private sector. And now the

situation is such that the ratio of private sector to the public sector has come to 60:40 in

terms of market share by value.

PRODUCTION OF BREEDER AND FOUNDATION SEEDS AND DISTRIBUTION

OF CERTIFIED SEEDS IN INDIA

Source: www.agricoop.nic.in

24


Source: www.agricoop.nic.in

Public Sector:

After the green revolution, the Government of India thought to enhance the seed

production in the country. For this, it established National Seeds Corporation (NSC) in

1963, and thus the Public sector entered the Seed Sector. It was opened for the

production and distribution of certified seeds to the farmers all over India, and for

imparting training to the institutions and persons related to seed industry. As it was

unable to cater the needs of large farming population of India, so Government

established 13 State Seed Corporations across different states in the country to cater the

needs of seed in different states. Research is carried out mostly by Indian Council of

Agricultural Research and State Agricultural Universities. Seed multiplication is done

on the farms of Public sector organizations. They have a strong seed distribution

network.

Private Sector:

With the ease of regulations by the Government after the New Seed Policy in 1988, the

private companies came into the scene with a big bang. The companies invested a lot of

25


capital in the seed sector. Research is done by some companies itself and the others

depend on other companies or have collaboration with public sector organizations and

agricultural universities. Most of the companies multiply their seeds in the field of

contract farmers. It has more than 60% share in market in terms of value.

SEED SUPPLY CHAIN (Public Sector)

Source: www.seednetindia.gov.in

GOVT. OF

INDIA

ICAR

ICAR

INSTITUTES

SAUs

NSC, SSCs,

SFCI, etc

DISTRIBUTORS

FARMERS

AGENCIES

AGENCIES

Allocation for

production

Production of

Breeder seed

Allocation for

production

Production of

Breeder seed

Allotment of

Breeder seed Indent of

Breeder seed

Lifting

Certified seed

production

Certified seed

production

Foundation

seed

production

Foundation seed

to certified seed

26


SEED SUPPLY CHAIN

VARIETIES & FOUNDATION SEED RELEASED FROM STATE RESEARCH

INSTITUTES, VARIETIES INTRODUCED BY PRIVATE SEED COMPANIES,

IMPORTED SEED

SSCs

(Breeder)

Producer

Distributor

COOPERATIVE

(Breeder)

Producer

Distributor

PRIVATE SECTOR

(Breeder)

Producer

Distributor

STATE RETAIL

OUTLETS

COOPERATIVE

OUTLETS

PRIVATE RETAIL

OUTLETS

FARMER

WHOLESALER/

REGIONAL

DISTRIBUTOR

WHOLESALER/

REGIONAL

DISTRIBUTOR

RETAILERS RETAILERS

27


CHANGING SHARE OF PRIVATE AND PUBLIC SECTOR

IN THE INDIAN SEED MARKET

Source: Planning Commission

Public Private Partnership

Some of the private seed companies have partnerships with Public sector organizations

like Crop research institutes, State agricultural universities for their research, extension,

promotion, etc.

COLLABORATIONS OF SOME SEED COMPANIES

Seed company Organization Type of partnership

Nuziveedu Seeds ICRISAT Seed parent development in

Sorghum and Bajra

ICAR Coordinated trials

28


IARI

CICR

DMR

DRR

DOR

NRC on Sorghum

NBPGR

Germplasm exchange, Capacity

building

ANGRAU, Hyderabad

UAS, Dharwad

TNAU, Coimbature

JNKVV, Jabalpur

PKV Akola

PKV Rahmi

PKV Parbhani

PAU Ludhiana

HAU, Hissar

Multi location trials, paid up

trials, collaborative research

projects, transfer of breeder seeds

and technology

DBT (Min of S&T) Multi location testing, large scale

trials of GM crops

GEAC (Mini E) Multi location testing, large scale

trials as per Biosafety regulations

Ministry of Agriculture

State Govts.

On farm testing, foundation seed

sale permit

NBRI Lucknow Indigenous trangenic technology

Mahyco ICRISAT Access to germplasm of Hybrid

Bajra

Texas A&M,

29


Georgia University

ICRISAT Collaborative project

IARI Licensing

Monsanto;

Cornell University

Transgenic technology

Pro Agro Seeds University of

Agricultural Sciences,

Dharwad

Germplasm development,

technology transfers, multi-

location trials, development of

value added trait

College of

Agriculture, Naigaon

Parent seed production,

foundation seed production,

hybrid seed production of cotton

seed

DRR

Expertise rice productivity

improvement

Government of UP

Promotion of high yielding hybrid

rice in the state

UP State Department of

Agriculture

Product testing and

demonstrations in various regions

of UP


30


CROP SEEDS DESCRIPTION

CEREAL SEEDS

HYBRID RICE

India has largest area of 44mha under rice and ranks second with production of about

91 m tonnes, which is 22% of world’s total production. The area under hybrid rice in

India is almost 1mha in 2006.

Source: USDA

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Source: FAO

In rice export, India ranks second after Thailand.

SEED PRODUCTION OF RICE IN INDIA

Breeder Seed Production in Quintals 2000-01

Foundation Seed (Quintals) in 2001-02

Certified Seed (Lakh Quintals) in 2001-02

1468 219294 35.48

Source: www.indiastat .gov. in

PROJECTED REQUIREMENT OF BREEDER, FOUNDATION AND CERTIFIED SEED FOR CROPS IN INDIA (2006-2007)

Crop Area (lakh ha)

Seed Rate (Kg/ha)

SMR SRR Projected (%)

Breeder (Quintals)

Foundation (Quintals)

Certified (Quintals)

Paddy 450.0 2359.44 82333.3 3362500

Hybrid 10.0 15.0 100 100 15.00 1500.0 150000

V (Transplant)

250.0 35.0 75 15 233.33 17500.0 1312500

V (Broadcast)

190.0 100.0 30 10 2111.11 63333.3 1900000

32


The successful commercialization of hybrid rice in many parts of the world is linked to

the development of hybrid seed production technology. The market size of hybrid rice

seed in India is about 200 crores. (Industry sources)

SALE PRICE OF BREEDER SEED OF RICE

(Rs. per quintal)

Crop Variety/Hybrid/Line Sale Price (Rs/q)

in 2006-07

Rice Coarse varieties 2000

Medium varieties 2400

Basmati varieties 3800

Rice Hybrid A line 12500

B line 3000

R line 3000

Source: www.seednet.gov.in

SALE OF HYBRID RICE SEEDS

Year Seeds Sold (tonnes)

2004 6,100

2005 8,500

2006 More than 12,000


33


01,0002,0003,0004,0005,000

Hybrid Rice Seed

Consumption

(tonnes)

Uttar

Pradesh

Bihar,

Jharkhand

& M.P.

Punjab &

Haryana

Gujarat,

A.P.

State

HYBRID RICE SEED CONSUMPTION IN DIFFERENT

STATES IN 2006

Unlike the earlier pattern of consumption, in which the high yielding varieties (HYV) were confined to Punjab, Haryana, coastal Andhra and Tamil Nadu, the new hybrid rice technology is being taken up more by the farmers of agriculturally less-prosperous

states.

Comparative Cost-Return Profile for Hybrid Rice Seed Production and Commercial Inbred Rice Production in India (1997-98 Crop Year)

Cost and Returns Hybrid seed production (US$/ha)

Inbred rice production (US$/ha)

COST

Seed 70 14

Fertilizers and Manure 123.8 86.8

Gibberellic Acid 50 -

Labour 315 112.5

Plant protection 15 13.8

Miscellaneous 71.2 11.9

Total input cost return 645 239

34


Yield(kg/ha) 1250 5950

Market price(US$/kg) 1.0 0.1173

Return to hybrid seed 1250 -

Return to by-product(male seed & straw)

212.5 41.1

Gross Return 1462.5 739

Net return 817.4 500

Unit cost of production(US$/kg)

0.516 0.040

Source: Janaiah and Hossain , 2000 (FAO)

NETWORK OF HYBRID RICE SEED PRODUCTION

Source: FAO

NATIONAL STEERING COMMITTEE

TECHNOLOGY

DEVELOPMENT

Nucleus and Breeder

Seeds

• Research Institutes

• Universities

SEED PRODUCTION

Foundation seeds and

Certified Seeds

• Public seed companies

• Private seed companies

TECHNOLOGY

TRANSFER

• Extension

• NGOs

• Farmer Associations

35


The Public sector plays a leading role in the technology development and the

commercial seed production is done by the private seed companies. Seed companies

keep large margin in hybrid rice seed sale as it is needed to keep the private seed

companies in business, due to small demand for hybrid rice seed and the dispersed

market of hybrid rice seed. However, as the technology picks up, economies of scale

should reduce the cost of production and increase seed yields. This would allow seed

companies to sell hybrid seed at a lower price to farmers. Greater competition in the

seed business will also force seed companies to reduce the selling price of hybrid rice.

SEED REPLACEMENT RATIO OF RICE IN DIFFERENT STATES OF INDIA

STATE SRR(%)

2004 2005

Andhra Pradesh 52 94(hybrid)

58 100(hybrid)

Karnataka 29 29

Tamil Nadu 12 14

Kerala 19 19

Gujarat 19.9 21.3

Maharashtra 20 19

Rajasthan 2.6 5.2

Madhya Pradesh 3.4 6.4

Uttar Pradesh 17.9 20.3

Haryana 14 17

36


Punjab 15 19

Himachal Pradesh 12.8 14

Jammu & Kashmir 3.4 5.5

Orissa 4.7 6.8

West Bengal 25.3 25.5

Bihar 10 12

Chattisgarh 5.8 7.1

Assam 37.2 7.9

Uttaranchal 9.28 14.7


India is a country with a large population of more than 1 billion. Rice is the main food

for the people of India. It is cultivated on a large area, and the production is also high as

compared to other countries but to meet the increasing demand of exponentially

increasing Indian population, the need is there to increase the production. Since the

land is limited so to increase the production, the only option is to increase the

productivity of rice. Hybrid rice varieties give about 20-25% (1 - 1.5/ha) higher yields

than the inbred high yielding varieties and hence lead to higher on-farm productivity.

Also the quantity of seed required is less so using same quantity of seeds can give better

results. Rice is a self pollinated crop, and so it needs male sterility system for hybrid

seed production. It is highly labour intensive and requires adequate seed industry

infrastructure. Keeping these points in view, India can go for large scale hybrid rice

seed production, and further go for export for the generation of revenue. Large scale

employment opportunities can be generated through hybrid rice seed production.

The hybrid rice seed technology can help the farmers to increase their returns.

37


COMPARISON BETWEEN HYBRID RICE VARIETIES AND CONVENTIONAL

HIGH YIELDING VARIETIES

Advantages of hybrid rice varieties over conventional high yielding varieties

(1) Quantity of seeds required is small.

(2) Resistant to major pests and diseases thus leading to less use of pesticides, herbicides

thus decreasing cost.

(3) High yield (1-1.5tonnes/ha higher).

(4) Short duration.

Disadvantages of using hybrid rice varieties

(1) Cost of seeds is higher (2.5 times higher) than conventional high yielding varieties

SOME OF THE RICE HYBRIDS RELEASED

Name of

Hybrid

Parentage Recommended

for the State

Duration

(days)

Yield

(T/Ha)

APHR-1 IR-58025A/

Vajram

Andhra Pradesh 130-135 7.14

APHR-2 IR-62829A/

MTU-9992


CORH-1 IR-62829A/

IR-10198

Tamil Nadu 110-115 6.08

KRH-1 IR-58025A/

IR-9761

Karnataka 120-125 6.02

CNRH-3 IR-2829A/ West Bengal 125-130 7.49

38


Ajaya

DRRH-1 IR-58025A/

IR-40750


KRH-2 IR-58025A/

KMR-3

Karnataka 130-135 7.40

Pant Sankar

Dhan-1

IR-58025A/

UPRI-93-133

Uttar Pradesh 115-120 6.80

CORH-2 IR-58025A/

C-20R

Tamil Nadu 120-125 6.25

ADTRH-1 IR-58025A/

IR-66

Tamil Nadu 115-120 7.10

Sahyadri IR-8025A/

BR-827-35

Maharashtra 125-130 6.15

Narendra

Shankar Dha

n-2

IR-8025A/

NDR-3026

Uttar Pradesh 125-130 6.15

PHB-71 -- Haryana, UP, Tamil Nadu 130-135 7.86

UPRH-27 IR-58025A/

UPRI-92-133

Plains of Uttar Pradesh 115-120 6.80

PA-6201 -- Eastern and some parts of

Southern India

125-130 6.18

Pusa RH-10 Pusa- 6A/

PRR-78

Delhi, Punjab, Uttaranchal 125 -

Hybrid-6444 6CO-2/

6MO-5

Andhra Pradesh, Orissa,

Maharashtra, Tripura,

Uttar Pradesh,

Uttaranchal

135-140 6 - 8

39


HRI-120 -- -- -- --

27P-02 -- -- -- --

RH-204 -- -- -- --

HRI-152 -- Punjab, Tamil Nadu -- 6.58

Source: Industry Sources

The total area under hybrid rice in 2001 was 200,000ha whereas in 2003 was 2,80,000 ha. (Source: International Rice Research Institute)

Large scale seed production of five hybrids viz., DRRH-1, KRH-2, Sahyadri, PHB-71 and PA 6201 has been taken up by the public and private sector seed agencies.

The area under hybrid rice is 1 mha out of the total area under rice (45mha) (Source:www.indiastat.com)

99%

1%

Area under conventional rice in India(ha)

Area under hybrid rice in India(ha)

According to FAO, the area under hybrid rice in 1990 was 10% of the world rice area but it produced 20% of the total rice production. As India has a large area under rice and if this area under conventional rice is replaced by hybrid rice, then India can not only feed its ever increasing population but can also export a large quantity.

The market leader in hybrid rice seed production (one-third share) is Pro Agro Seeds of Bayer Crop Science. The other companies involved in hybrid rice seed production are

40


Pioneer Hi-Bred, United Phosphorus Ltd (through Advanta India), Mahyco, Shriram Bioseed Genetics India and JK Agri-Genetics Ltd.

Among the public sector seed agencies, National Seed Corporation (NSC), State Farms Corporation of India (SFCI), Andhra Pradesh State Seed Development Corporation (APSSDC), Karnataka State Seed Development Corporation (KSSDC), West Bengal State Seed Development Corporation (WBSSDC), and Uttaranchal and Tarai Seed Development Corporation (UPTSDC) are presently engaged in hybrid rice seed production, but on much smaller scale.

PROSPECTS FOR HYBRID RICE SEED PRODUCTION IN INDIA

Hybrid rice is likely to become popular and adopted in large acreage during the next

decade. Huge quantities of hybrid rice seed will be needed. Thus there is ample scope

for all the private and public sector seed agencies in India to produce large quantities of

hybrid rice seed in the years ahead to popularize rice hybrids. But In India, the hybrid rice

cultivation is not showing much increase and is mostly confined to only research and

demonstration field plots. The reason behind this is not other than the lack of

understanding of hybrids production and lack of seeds. The farmers are still using the

farm saved seeds, whereas hybrids can not be used more than once. The companies

should also provide knowledge regarding the hybrid seeds and the agronomic practices

which should be followed to the farmers, so that farmers can know the technology

better, buy the seeds every year and get higher yield. The extension system should be

made strong.

Also the farmers of India are mainly poor, and they cannot afford high cost seeds, so it

is must to train them about the cultivation. They should be given the knowledge

regarding the benefits of hybrid seeds like less quantity of seed required, less protection

measures. Due to lack of knowledge, they are using the same quantity of seeds as that

of the conventional hybrids, and are thus getting less return.

Hybrid rice can also be grown successfully in saline soils and uplands, which is the

prevalent condition of land in India. This technology is very important for food security

in a country like India with a large population. Also it requires larger labour force

which is available in abundance in India, so more and more area under rice should be

taken under hybrid rice, and the seed production of hybrid rice should be increased.

41


HYBRID MAIZE

Maize is one of the important cereal crop cultivated in India as the first coordinated

crop improvement project was launched on maize by ICAR in 1957. It is cultivated in

8.3 m ha area which is about 5% area under maize in the world. The production of

maize in India is 15 million metric tonnes which is about 2% of the world. The yield is

1.81 metric tones per hectare which is very low in comparison with the world’s average

yield of 4.71 metric tones per hectare. (Source: USDA, 2007)

PERCENTAGE BREAKUP OF THE

PRODUCTION OF MAIZE IN WORLD IN 2007

6%3%

21%

3%

7%39%

2%

19%EU-25

Mexico

China

Argentina

Brazil

US

India

Others

Source: USDA

Type of Hybrids in Maize:

Single cross hybrids: It is the cross between two inbred lines.

Parent A X Parent B

Hybrid

42


Modified single cross hybrids: It is the cross between two sister line female cross and

an inbred male.

AXA B

Hybrid

Double cross hybrids: It is the cross between two single cross evolving from different

inbreds.

AXB CXD

Hybrid

Three way cross hybrids: It is the cross between a single cross used as female and an

inbred used as a male.

AXB C

Hybrid

COMPARISON BETWEEN DIFFERENT TYPES OF MAIZE HYBRIDS

The production of single cross hybrids is costly. The yield of the seed line is low as the

parental lines suffer from an inbreeding depression. Due to this reason, large areas are

utilized for generating the necessary quantity of hybrid seed. This makes the seed

production expensive. Earlier, the expansion of hybrid maize seed was based on the

43


double cross technique, but the plant resulting from a double cross has lower yields

compared to the single cross. The three way crosses is also not much effective as single

cross, it tends to fall between single and double crosses in terms of costs, variability and

yield, so the trend in hybrid maize has been towards a greater use of single cross

hybrids.

The International Maize and Wheat Improvement Center (CIMMYT) allocates 18 per

cent of its maize programme funds to hybrids. Around 13 per cent goes to development

of open pollinated varieties and 30 per cent to population improvement.

The seed multiplication ratio of maize varieties is 1:80 and maize hybrids is 1:100.

SEED REPLACEMENT RATIO OF MAIZE IN 2004-05

Seed Replacement Ratio

State Variety Hybrid

Andhra Pradesh 100%

Madhya Pradesh 16.9%

Karnataka 100%

Maharashtra 60%

Uttar Pradesh 12.25%

Rajasthan 17.8%

Tamil Nadu 2% 100%

Gujarat 100%

Himachal Pradesh 100%

Jammu & Kashmir 3.3%

44


Orissa 0.9%

West Bengal 20%

Bihar 40%

Chattisgarh 8.8%

Assam 4.4%

Uttaranchal 2.3%

Punjab 69%

Source: www.seednet.gov in

The seed production of Maize is increasing every year. It is evident from the fact that

the seed replacement ratio of maize is increasing every year in India.

Source: Seed Association of India and Seednet India

45


The Seed Association of India has projected that in the year 2020, maize hybrids will

cover 90% area under maize, and the seed replacement ratio will reach to 100%.

The sale price of breeder seed of Maize is uniform over the past 4 years.

SALE PRICE OF BREEDER SEED

(Rs. per quintal)

Variety/Hybrid/Line 2003-04 2004-05 2005-06 2006-07

Inbred lines 9000 9000 9000 9000

Varieties & Composites 3000 3000 3000 3000


46


MILLET SEEDS

PEARL MILLET

Pearl Millet is an important millet crop with more than 55% of the global millet

production. Globally, it is cultivated in about 29 m ha and support more than 100 m

people. (Source: ICRISAT)

Source: Deptt. Of Agriculture and Cooperation


47



Source: Seed Association of India

Since 1982, 59 cultivars (14 OPVs and 45 hybrids) have been released in India.

No. of Hybrids developed Developing Agency

5 ICRISAT

28 NARS

12 Private sector

48


No. of OP varieties developed Developing Agency

5 ICRISAT

9 NARS

More than 70 hybrids (officially released and truthfully labeled) are currently cultivated on about 50% of the total pearl millet area in India. Together, improved hybrids and OPVs are cultivated on 65% of the total pearl millet area.

After 2001-02, there has been a sharp increase in the distribution of certified seeds of

Pearl Millet, which became somewhat stagnant after 2002-03. The Seed Association of

India has projected that in 2020, the certified seed distribution of Pearl Millet will reach

39.92 thousand tones. It has also projected that the SRR will be 100% by 2020, and

hybrids will cover 80% area.

Until the late 1980s, the major role in the development of millet variety, multiplication

of seeds and their distribution was played by the public sector, but in 1990’s, private

firms also started the distribution of seeds by taking varieties from public sector and

then bulking them. Traditionally, only licensed firms were allowed to operate

domestically in India, but after the reformation in Seed regulation in 1980’s, the

multinational companies also entered the millet seed market in India.

SEED REPLACEMENT RATIO OF PEARL MILLET IN DIFFERENT STATES

IN 2004-05

Seed Replacement Ratio in 2004-05


Andhra Pradesh 53% 100%


Karnataka 27% 100%

49


Maharashtra 74% 100%


Tamil Nadu 16% 100%

Rajasthan 44.68%

Gujarat 100%

India 55.36%


The Seed Multiplication rate is 1:200.

UNIFORM SALE PRICE OF BREEDER SEED

(Rate Rs. per quintal)


A Line 13000 13000 13000 13000

B Line 6600 6600 6600 6600

R Line 5500 5500 5500 5500

Varieties and composites 5500 5500 5500 5500


50


FORAGE CROP SEEDS

SORGHUM

Sorghum (Sorghum vulgare) is the fifth major cereal crop in the world after wheat, rice,

maize and barley. It is grown in about 99 countries of the world. The global area under

sorghum in 2006-07 was 39.57 m ha. India has 22.9% of the global area under sorghum.

Source: USDA

The global production of sorghum in the year 2006-07 was 56.46 m tonnes, out of which 13.8% of the sorghum was produced in India. USA, India, Nigeria, China, Mexico, Sudan and Argentina are the major producers.

Sorghum is both a grain and a forage crop. But nowadays, its cultivation for forage

purpose is increasing. Sorghum is mainly grown in the rainy season and the post-rainy

season. It can also grow well in rainfed dryland areas.

Despite decrease in sorghum area over the years, the production level during 2003 was almost similar to that in the early 1970's in India, which could be largely attributed to adoption of improved varieties and hybrids.

In India, the area under high-yielding cultivars has increased from 0.7 m ha in the early 1970's to 6.5 m ha in the late 1990s. Most of the area under high-yielding cultivars is planted with about 70 private sector (PS) hybrids, of which over 50 are based on ICRISAT-bred parental lines or their derivatives.

51


Cultivation of sorghum is mainly concentrated in peninsular and central India.

Maharashtra, Karnataka, Andhra Pradesh, Madhya Pradesh, Gujarat, Rajasthan, Uttar

Pradesh (the Bundelkhand region) and Tamil Nadu are the major sorghum-growing

states. Other states grow sorghum in small areas primarily for fodder.

Currently there are five major types of sorghum grown:

1. Grain sorghum with dwarf varieties that grow 2 to 5 ft tall for easier combining. 2. Forage sorghum which grows 6 to 12 ft tall, produces more dry matter tonnage

than grain sorghum, is coarse stemmed and is used for silage. 3. Sudangrass, is fine stemmed, short season sorghum grown to furnish pasture or

green feed during mid-summer when perennial grasses are dormant. 4. Sorghum-sudangrass hybrid is a cross between the two forage types that have

intermediate yield potential and can be used for pasture, hay or silage. 5. Sorghum-almum, also called Columbusgrass, sorghumgrass, sorgo negro or

sudan negro.

SEED REPLACEMENT RATIO OF SORGHUM IN DIFFERENT STATES IN 2004-05

SRR (%)


Andhra Pradesh 20

Gujarat 288

Madhya Pradesh 10.23

Maharashtra 14.0

Karnataka 91.58

Punjab

Rajasthan 6.94

Tamil Nadu 8.83

52


Uttar Pradesh 8.28

Haryana 30.45



The Seed Association of India has projected that in the year 2020, the F1 hybrids will

cover 60% area of the total sorghum area, and the SRR will increase to 100%. It has also

projected that certified seed production will increase to 137 thousand tones.

The Seed Multiplication Rate is 1:160.

SALE PRICE OF BREEDER SEED OF HYBRID SORGHUM

(Rs. per quintal)

Variety/Hybrid/Line 2006-07

A Line 9000

B Line 7500

R Line 6000

Varieties & Composites 3800


53


OIL SEEDS

SUNFLOWER

Sunflower is an important oilseed crop grown in India. It covered an area of 2.34 m ha

in 2005-06.

0.000.200.400.600.801.001.201.401.60

0.00

0.50

1.00

1.50

2.00

2.50

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

Production

(m tonnes)

Area(m ha)

Year

AREA AND PRODUCTION OF SUNFLOWER IN INDIA

Area Production


Among all the sunflower growing states, Karnataka has the maximum area of 1.43 mha

under sunflower, contributing to 61% of total area under sunflower in India. It is

followed by Andhra Pradesh (19%), Maharashtra (15%), Bihar (1%), Haryana (1%) and

Tamil Nadu (1%).

54




55


Karnataka produces 0.79 million tones which contributes 55% to the total production of

sunflower in India. It is followed by Andhra Pradesh(21%) and Maharashtra(15%).


The distribution of certified seed of sunflower is increasing every year after 1998-99.

The Seed Association of India has projected that in the year 2020, the F1 hybrids will

cover 90% area of the total sunflower area in India, and the SRR will increase to 100%.

It has also projected that certified seed production will increase to 19.8 thousand tones.

The Seed Multiplication Rate is 1:50




A Line 20000 20000 20000 20000

B Line 10000 10000 10000 10000

56


R Line 10000 10000 10000 10000

Varieties 6000 6000 6000 6000


SEED REPLACEMENT RATIO OF SUNFLOWER IN DIFFERENT STATES IN

2004-05

Seed Replacement Ratio in 2004-05


Andhra Pradesh 0 100%

Madhya Pradesh 3.3%

Karnataka 23% 100%

Maharashtra 29%


Tamil Nadu 14.1%

Orissa 30.8%

Chattisgarh 35%

India 15.69%


57


SOYBEAN

Soybean is an important oilseed crop of India covering 7.7 m ha area and producing 7.3

million metric tones. The area under soybean in India contributes 8.2% to global area

under soybean and production is 3.18% of global soybean production in 2006-07. The

contribution of soybean produced in India is continuously increasing in the global

soybean production. (Source: USDA)

Source: Department Of Agriculture and Cooperation


AREA UNDER SOYBEAN IN DIFFERENT STATES IN 2005-06

55% 30%

10% 2% 1% 2% Madhya Pradesh

Maharashtra

Rajasthan

Andhra Pradesh

Karnataka

Others

58





Crop 2003-04 2004-05 2005-06 2006-07

Soybean 4000 4000 4500 4500

Source: www.seednet.in

The multiplication rate for soybean is 1:16.

SEED REPLACEMENT RATIO OF SOYBEAN IN DIFFERENT STATES IN

2004-05

State SRR (%)

Andhra Pradesh 91%


59


Karnataka 26.5%

Maharashtra 44%

Rajasthan 7.02%


Himachal Pradesh 23%

Chattisgarh 22.55%

Uttaranchal 11.64%


The Seed Association of India has projected that the SRR of soybean will reach 80% in

2020.

DISTRIBUTION OF CERTIFIED SEEDS OF SOYBEAN

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05

Year

Quantity of certified seed

('000 tonnes)


The Seed Association of India has also projected that the production of certified seed of

soybean will increase up to 283.4 thousand tones.

60


VEGETABLE SEEDS

India, today is the second largest producer of vegetables (90.8 Million tonnes) in the

world, contributing 14.45% to the total vegetables produced in the world.

The vegetable seed production should be sufficient in India as vegetables(fresh and

processed) form an essential part of export. The value of fresh vegetables export

between April’2006 and December’2006 was Rs 108959.98 lakhs and that of processed

vegetables was Rs. 47137.60 lakhs.

The vegetable seeds also constitute a major value in export. The vegetable seeds and

fruits seed export between April’2006 to December’2006 was 4713020 kgs which valued

Rs 7644.19 lakhs (Source: Directorate General of Commercial Intelligence and Statistics).


The area under vegetables is increasing continuously in India. Along with the increase

in area, the vegetable seed market is also increasing.

61


PRODUCTION OF VEGETABLES IN INDIA

60.00

65.00

70.00

75.00

80.00

85.00

2000 2001 2002 2003 2004 2005

Year

Production

(million tonnes)

Source: FAO


62


In the year 2004-05, Chilli covered the highest area among all the vegetable crops.

It covered 1.16 mha which is 16.14% of the total area of 7.19 mha under vegetables.



63


India has emerged as a world leader in vegetable production. The estimated area under

vegetables is about 7.19 mha. The country has excelled both in productivity and quality,

as a large number of new varieties and hybrids have been developed for different

agroclimatic regions. The private sector had also invested a lot on development of

hybrids and varieties of vegetables after the liberalization of seed import in 1988. The

returns from vegetables are high as compared to the cereal crops.

The adoption rate of vegetables is very high. Even in some vegetable crops, the seed

replacement ratio has reached 100%.

Due to higher productivity, responsiveness to inputs, better returns per unit area, etc,

the vegetable hybrids have been adopted by farmers of India at a large scale. The

vegetable seed market is growing at a high pace in India.

Hybrid Seed Production of Vegetables:

Hybrid seed production of vegetables is highly cost intensive. The vegetable seed

industry is dominated by private sector. The private sector has developed a large

number of hybrids of vegetables compared to public sector.

DEVELOPMENT OF HYBRIDS

CROP Public sector Private sector Imported

Tomato 3 160 90

Brinjal 8 218 12

Chilli 2 73 48

Capsicum 1 31 9

Cauliflower 1 35 45

Cabbage - 20 95

Radish - 5 10

Onion 1 6 6

64


Okra 2 32 5

Muskmelon 2 14 4

W.Melon 2 25 15

Cucumber 2 10 10

Gourds 6 80 15

Total 29 709 364


ESTIMATED SHARE OF VEGETABLE HYBRIDS

Share of F1seeds (%)

CROP 97-98 2001-02

Tomato 28.0 60.0

Brinjal 17.8 22.0

Chilli 3.0 10.0

Capsicum 5.0 15.0

Cauliflower 4.0 15.0

Cabbage 32.0 50.0

Radish 3.0 10.0

Onion nil Nil

Okra 6.0 25.0

Muskmelon 5.0 30.0

Watermelon 6.0 40.0

Cucumber 3.0 35.0

Gourds 2.0 25.0


65


SEED REPLACEMENT RATIO OF VEGETABLES IN 2001-02

Crop Seed Replacement Ratio (%)

Beetroot 100.0

Bittergourd 75.0

Bottlegourd 75.0

Brinjal 63.4

Cabbage 100.0

Capsicum 90.0

Carrot 80.0

Cauliflower 86.4

Chilli 83.7

Cluster beans 65.0

Coriander 80.0

Cucumber 90.0

Dolichos bean 80.0

Frenchbeans 62.0

Knolkhol 80.0

Muskmelon 90.0

Okra 92.0

Onion 87.0

Peas 93.0

66


Pumpkin 70.0

Radish 60.0

Ridgegourd 70.0

Spongegourd 70.0

Tomato 99.0

Watermelon 90.0

Others 15.0


VEGETABLE SEED MARKET IN 2001-02

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

7000.0

8000.0

9000.0

10000.0

Beetroot

Bittergourd

Bottlegourd

Brinjal

Cabbage

CapsicumCarrot

Cauliflower

Chilli

Clusterbeans

Coriander

Cucumber

Dolichos bean

Frenchbeans

Knolkhol

MuskmelonOkra

OnionPeas

Pumpkin

Radish

Ridgegourd

Spongegourd

Tomato

Watermelon

Year

Seed Market(tonnes)

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

Seed Market (Rs. million)

Seed market(tonnes) Seed market(Rs. Million)


67


Role of National Seeds Corporation (NSC) in Vegetable Seed Production:

NSC handles a wide range of vegetable seeds covering 37 vegetable crops and 172

varieties including 41 hybrids, suitable for diverse agro- climates in various parts of the

country.

Its seed production is organized under strict technical supervision through experienced

and well trained contract seed growers in identified locations in the country.

Vegetables seed varieties and hybrids produced/ marketed by NSC:

Crop Number of varieties Hybrids

Amaranthus 3 -

Spinach 2 -

Lady’s Finger 5 2

Brinjal 6 7

Capsicum 1 3

Chillies 5 11

Tomato 8 8

Corriander 3 1

Turnip 1 -

Beetroot 1 1

Snakegourd 2 -

Bittergourd 9 2

Ridgegourd 2 1

Muskmelon 2 2

Chicory 1 -

Cucumber 2 1

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Cowpea 3 -

Methi 2 -

Sugarbeet 1 -

Dolichos 2 -

Potato 4 1

Frenchbean 2 -

Peas 5 -

Cauliflower 5 2

Cabbage 2 3

Knolkhol 1 -

Radish 9 1

Carrot 3 1

Onion 3 2

Bottlegourd 3 3

Spongegourd 1 1

Ashgourd 2 2

Watermelon 3 4

Pumpkin 3 1

Garlic 2 -

Tinda 2 1

Lottuce 1 -

Clusterbean 2 1

Source: National Seeds Corporation

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Source: National Seeds Corporation

The seeds produced by NSC increased in 2002-03, but after that it started decreasing for

some years, and then again increased in 2005-06.

Source: USDA

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FIBRE CROP SEEDS

COTTON

Cotton is the main fibre crop grown in 9.2 m ha area in India, which is about 1/4th of the

global cotton area and the largest area among all the countries. It is cultivated in about

10 states, largest area being in Maharashtra.

STATES UNDER COTTON CULTIVATION IN INDIA

The area under cotton is increasing continuously in India. With the increasing cotton

area, the production is also increasing. This increase is due to the introduction of

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genetically modified cotton varieties which were introduced in India in the year 2002.

At present, India has become the third largest producer of cotton.

AREA UNDER COTTON IN INDIA

Source: Cotton Corporation of India

COTTON SEED PRODUCTION IN DIFFERENT STATES

Cotton seed production (‘000tonnes)

State 2002-03 2003-04

Andhra Pradesh 660 858

Gujarat 1007 1518

Haryana 281 363

Madhya Pradesh 594 528

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Maharashtra 792 1023

Karnataka 198 132

Punjab 264 347

Rajasthan 149 248

Tamil Nadu 132 116

Source: www.indiastat.gov.in

With the introduction of various hybrids and genetically modified cotton varieties,

cotton has become the crop with highest seed replacement ratio.

SEED REPLACEMENT RATIO IN DIFFERENT STATES

State SRR (%) in

2004-05

Andhra Pradesh 99

Haryana 75

Karnataka 83

Maharashtra 93

Punjab 55

Rajasthan 65

Tamil Nadu 100

Source: Indian Statistical Institute

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Earlier the cotton production was mainly restricted to the states of Tamil Nadu, Andhra

Pradesh, Karnataka in the south, and the states of Gujarat, Rajasthan and Maharashtra

in the west, but with the introduction of Bt cotton, the northern states of Punjab and

Haryana have also entered into cotton production. Before 2002, we had to go for import

of large quantity of cotton seed for meeting the requirements of the farmers of Southern

India but after Bt revolution, the situation is totally different. Many private seed

companies have entered into cotton seed production, and thus the need for import of

cotton seed has got reduced to almost negligible. About 5 million tonnes of cotton seed

was produced in India in the year 2005-06.

Many multinationals have entered India with the focus on cotton seed production.

The cotton seed market is dominated by the Private sector.

Every year a large number of varieties and hybrids are being produced by different

seed companies.

Source: Indian Statistical Institute,

Computed by Francis Kanoi Marketing Research (2005)

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PROFILE OF SEED COMPANIES

Company R&D Turnover Marketing Crop Seed Segments

dealt by company

Ankur Seeds

Pvt. Ltd.

Rs. 313

lakhs

11 regional

offices and 6

area offices

apart from the

headoffice at

Nagpur

Cotton, Sunflower,

Safflower, Rice, Forage

sorghum, Maize, Bajra,

Chilli, Brinjal, Okra,

Tomato, Onion

Nuziveedu

Seeds

1395

distributors &

dealers and

over 20000 sub-

dealers

Cotton, Sorghum,

Sunflower, Rice, Maize,

Pearl millet, Tomato,

Brinjal, Okra, Chilli

Nath Seeds Rs. 80 crore Cotton, Rice, Millet,

Maize, Oilseeds

J K

Agrigenetics

Rs. 276

lakhs

Rs. 57 crore in

2006-07(April-

September)

9 regional

offices and more

than 250

wholesellers

and 20,000 retail

dealers across

the country

Cotton, Sunflower,

Maize, Rice, Sorghum,

Bajra, Castor, Mustard,

Wheat, Red gram,

Soybean, Tomato, Okra,

Chilli, Bottlegourd,

Watermelon, Radish,

Cabbage, Sweetcorn,

Cucumber, Coriander

Sungro Seeds

Ltd.

Rs. 33 crore Cauliflower, Radish,

Carrot, Cabbage,

Tomato, Egg plant,

Chilli, Ridge gourd,

Sponge gourd, Bitter

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gourd, Bottle gourd,

Karki, Cucumber,

Watermelon,

Muskmelon, Okra,

Pumpkin

Mahyco Paddy,Maize,

Sunflower, Pearl millet,

Cotton

ANKUR SEEDS PRIVATE LIMITED

Ankur Seeds Private Limited was established in 1976 at Nagpur, Maharashtra with the

objective of producing high yielding hybrids and varieties for suiting the needs of

farmers. Now, from 2004, its vision is benefit of mankind through biotechnology.

Research and development: It launched its research and development activities in 1978,

and was recognized by DSIR, Government of India in 1993. The company has various

regional research stations for multi location trials of advanced generation material.

Ankur has ventured into the field of transgenic research which includes incorporation

of insect tolerance in cotton by using Cry I Ac and Cry X gene. The future projects

include incorporation of drought tolerance traits, improvising the quality of vegetable

crops like delayed ripening of the tomato. The R&D expenditure of Ankur Seeds Private

Limited was Rs. 313 lakhs (Source: DSIR Annual Report 2005-2006).

Marketing: Ankur has 11 regional offices and 6 area offices apart from the headoffice at

Nagpur. It has a network covering 12 major states of India. The company periodically

organizes field day programs and demonstrations in various parts of the country to

educate the farmers about the latest agricultural practices. This activity is skillfully

handled by the marketing department and a dealer/distributor network. The

company's policies are distributor and farmer friendly.

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The members of the marketing team are in close contact with the farmers from the point

of sale of seeds to the time the produce is ready. The marketing staff together with the

distributors and dealers provide valuable information to the farmer for helping them in

optimizing the output.

Production: It started with the initial production of 150 quintals. It received an

overwhelming response from the farmers of Vidarbha for its public bred varieties of

cotton, jowar and okra, so the company expanded its production activities to Andhra

pradesh, Gujarat and other parts of Maharashtra. With an ever increasing demand for

its quality seeds Ankur started production in its own processing units in the year 1983

at Tirupati and Kisanagar. Today the company boasts of over 115 hybrids in various

crops.

Processing: The company has eleven state of the art processing plants with a

production capacity of over 16000 tons, a dehumidified storage capacity of 5000 sq m

for medium term storage and 10,000 sq m warehouses. The plants provide facilities for

drying, precleaning, ginning, delinting, gravity separation and fungicidal treatments.

Ankur’ s Crop varieties in Market:

Name of Crop Hybrids

Cotton Ankur-151, Ankur-09, Ankur-2534, Ankur-2226, Ankur-1262,

Ankur Akka, Ankur-Geeta (5090), Ankur-Sita, Ankur-655, Ankur-

4100, Swadeshi-1

Sunflower Konark-1, Konark-2, Konark-7, Konark-9, Konark-11

Safflower Vasant, Kesar, Garima

Rice Ankur-Sonam, Ankur-Rupali, Ankur-Manisha,

Sorghum-Forage Heera, Ankur-2025, White Kohinoor,

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Maize Aditya, Bhaskar(F-1), Bhanu(F-1), Mitra

Bajra 909(F-1), 2226(F-1)

Chilli Arch-226(F-1), Arch-228(F-1), Arch-9(F-1), Arch-313(F-1)

Brinjal Ajay(F-1), Kuldeep(F-1), Kaustabh (F-1) , Utkarsha (F-1) ,

Sachin(F-1), Kirti(F-1)

Okra Aroh-9(F-1), Aroh-10(F-1), Aroh-113(F-1), Aroh-96(F-1), Aroh-

85(F-1)

Tomato Ankur-308, Ankur-128(F-1), Ankur-501, Ankur-50(F-1), Ankur-

210(F-1)

Onion Ankur White

Achievements:

The company achieved its major breakthrough in cotton seeds in the year 1993 when

Ankur 651 cotton hybrid was declared a notified hybrid in the All India coordinated

cotton improvement project. It became an instant hit with the farmer community

because of its suitability to dryland farming , early flowering and adaptability to

excessive as well scanty rainfall. The company achieved a record 12500 quintals of

production in the year 2001-02 of cotton seeds. Ankur's long staple cotton hybrid Akka

has given the best results in India with a staple length of over 32 mm. In the year 1996,

Ankur Seeds Private Limited received the national award for research. It has about 15-

18% share in Indian cotton seed market.

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J K AGRIGENETICS LIMITED

J K Agrigenetics Limited was established in 1989. It is engaged in the research and

development, production, processing and marketing of hybrid seeds of Sorghum, Pearl

Millet, Maize, Cotton, Rice, Sunflower, Tomato, Okra and Hot Pepper.

It had a turnover of Rs. 57 crore in 2006-07(April-September)

Research and development: The breeding programmes in various crops focus on yield

improvement, as well as on breeding for quality traits, biotic/abiotic stresses. The

products are tested extensively across the nation in 19 multi locational trial centers,

regional testing centers and farmers fields under varied agro climatic conditions and

farming situations.

The expenditure on R&D was Rs. 276 lakhs (Source: DSIR Annual Report 2005-2006)

J K Agrigenetics Limited has a a 'Participatory Plant Breeding Process' in which the

customers and channel members interact with its breeders and help in the setting up the

breeding objectives and selection of the hybrids best suited to their environment on

parameters like performance, quality of produce, pest tolerance, end uses etc.

JKAL has invested extensively in biotechnology programmes. It has research collaboration with several national and international research institutions and agricultural universities to harness biotechnology for crop improvement.

It has developed a range of superior hybrids with Bt gene and other novel genes that will fulfill farmer's aspirations. It has a Biotech lab of international standards which was set up in 1999 at Hyderabad.

Future Projects: JKAL is planning to diversify into research on medicinal and aromatic plants with core activities including cultivation, contract farming, varietal development, quality extract production and chemical & DNA finger printing.

Production: JKAL takes up the production of hybrid seeds in an area of 10000 ha, to meet the requirements of our Indian customers. It has established a network of seasonal

79


seed producers who are supervised and guided by its production team to produce true to type high quality seeds.

The seed processing plants are located at Hyderabad and have an installed processing capacity of 100 tonnes per day.

Marketing: The marketing of hybrid seeds is done through a network of 9 regional

offices and more than 250 wholesellers and 20,000 retail dealers across the country.

Its marketing professionals regularly interact with the farmers and provide on the spot

solutions. They conduct farmer meetings, field demonstrations, audio visual

presentations, and mobile campaigns, send regular mailers educating them on proper

package of practices.

Regular market research & customer satisfaction audits are conducted at various stages

to align the company strategies with customer expectations.

Services provided to the farmers:

J K KISAN SAMRUDHI SEVA:

The farmers are guided on various practices like integrated Pest Management and

Integrated Nutrition Management which help them gain the most out of each seed.

JKAL also interacts with the end users and educates them about the advantages of its

various hybrids there by creating a ready market for the farmers produce.

FARMER BOOKING SCHEME:

The farmers can book the required quantity of JK hybrid seeds well ahead of the season

so that they get the right quality seeds at the right time at a concessional price.

J K’ s Crop seed varieties in Market:

Name of

Crop

Hybrids/Varieties

Cotton JK DURGA, JKCH 99, JK INDRA, JKCH 226, JK GOWRI, JK ESHWAR,

JK VARUN, JK CH66, JK CHAMUNDI, JK AMBIKA

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Sunflower JK CHITRA, JK SURYA

Maize JK SURABHI, JKMH 1001, JK POOJA

Rice RH 10, JKRH 401

Sorghum JKSH 234, JKSH 22, JK JYOTHI, JK SAMPURNA, JKSH 55, JKSH 438,

JKSH 528, JKSH 538, JK 30R

Bajra

JKBH 26, JKBH 125, JKBH 598, JK UDAY, JKBH 19, JKBH 640, JKBH 576,

JKBH 247, JKBH 592, JKBH 661, JKBH 664, JKBH 550

Castor JK SARDAR, JK SAMRAT, JK KIRAN

Mustard JKMS 2, JK SURAJ, JK KIRTI

Wheat JK VAIBHAV, JK VIJAY, JK ADITYA, JKWH 15

Red Gram JK CHAMPION, JK SANIA, JK SWEETY, JK SIXER

Soybean JK KRANTI, JK MOTI

Tomato JK VARSHA, JK ASHA, JK DESI

Okra JK HARITHA, JKOH 045, JKOH 3017

Chilli JK ChH 27, JK HPH 207, JK HPH 208, JK HPH 555

Bottlegourd JK UTTARA

Watermelon JK LEKHA, JK VIMAL

Radish JK SHWETA

Cabbage JK GREENWONDER, JK OXFORD

Sweet Corn JK MADHU, JK ATIMADHUR

Cucumber JK MANALI, JK SNEHA

Coriander JK ANAND

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MAHYCO

Mahyco was established in 1964. Since then, it is engaged in plant genetic research and

production of quality hybrid seeds for the farming community of India. Mahyco is also

developing genetically enhanced crops with the use of gene transfer technology.

Mahyco has a national presence with its network across the country. It is the first

private enterprise in India to produce and market hybrids of Cotton, Sorghum, Pearl

Millet, Sunflower and Wheat. Mahyco is the first Indian company to commercially grow

and market transgenic Bollgard cotton- India's first transgenic crop in 2002. It has a

large seed production base, processing facilities and large distribution network.

Research and development: Research and Development activities are organized as

programmes targeted toward specific crops and/or technologies, with the overall goal

to develop improved hybrid seeds. The company emphasized on research since 1966

and is focused towards product development. Its main research unit is “The Mahyco

Life Sciences Research Centre (MLSRC)”, at Dawalwadi near Jalna which has labs for

seed health, molecular biology, cytogenetics, pathology, entomology, molecular

virology and plant transformation.

Crop seed varieties and hybrids in market: Mahyco is engaged in the research,

production, processing and marketing of approximately 115 products in 30 crop species

including cereals, oilseeds, fibre and vegetables.

Crop Variety /Hybrid

Hybrid Paddy

SURUCHI 5170, SURUCHI 5319, SURUCHI 5629, SURUCHI

5445, WHITE JEWEL –1, WHITE JEWEL – 2, WHITE JEWEL–3,

WHITE JEWEL - 4

Hybrid Maize MRM – 3824, MRM – 3765, MRM – 3827, MRM – 3816,

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EMPEROR – 1, EMPEROR – 2, EMPEROR – 3, EMPEROR – 4

Hybrid Sunflower MSFH-17, MSFH-8, MSFH-1754, SUNRISE-1, SUNRISE-2,

SUNRISE-3

Hybrid Pearl Millet MBH–163, MBH–183, MRB–204, MRB–2210, MRB-2828, Moti–

1, Moti – 2, Moti – 3, Moti – 4, Moti - 5

Bollgard Cotton

Intra-specific

Hybrids (Gossypium

hirsutum)

MECH-12 Bt, MECH-162 Bt, MECH-184 Bt, MRC-6301 Bt,

MRC-6304 Bt, MRC-6322 Bt

Interspecific Hybrid

(Gossypium hirsutum x

Gossypium barbadense)

MRC-6918 Bt

Indian Cotton

Gossypium arboreum

MRDC-222/Chamatkar-222, MRDC-223/Chamatkar-23, Magic

AAC-2, Magic AAC-1

New World Cotton

Intra-specific

Hybrids (Gossypium

hirsutum)

Bounty-5, Bounty-4, Bounty-6, Bounty-1, Bounty-7, Bounty-8,

Balraj-65, Tapaswi-6703, MECH-118

Interspecific Hybrid (Gossypium hirsutum x Gossypium barbadense)

White Silk-2

Soybean MRSB 342, Soya Power-1

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MAHYCO MONSANTO BIOTECH LIMITED

Mahyco Monsanto Biotech (India) Limited was established in the year 1998 for the marketing of Bt technology in India. It is a 50:50 joint- venture of Mahyco and Monsanto Holdings Pvt Ltd (MHPL).

Mahyco Monsanto Biotech (India) Ltd (MMB) is not a listed company. It was created to bring the benefits of Bollgard cotton technology of Monsanto to the farmers in India.

The first genetically modified crop was approved for commercialization in India by the GEAC in the year 2002. It was Bollgard cotton of Mahyco Monsanto Biotech Limited in the year 2002. It gave high revenue to Mahyco Monsanto Biotech Limited, as it was the only company to sell Bt cotton till 2003-04, and a large number of farmers in India adopted the technology.

In 2003-04 alone, its business on account of sales, royalty, and co-licensing was Rs 54

crore. The seeds sales accounted for Rs 36 crore.


In the year 2003, Rasi Seeds was given the approval for the commercial cultivation of its

Bollgard cotton variety RCH-2. It became available in the market in 2004-05.

In 2005-06, about 15 companies like J K Seeds, Nuziveedu Seeds, Ankur Seeds,

Krishidhan Seeds, Ajeet Seeds, Vikram Seeds, Tulsi Seeds, etc were allowed to release

84


their Bt cotton hybrids in the market. These companies sourced the Bt technology from

MMBL which led to increase in revenue of MMBL. Seed companies paid Monsanto

about Rs 1,200 per packet(450 gms) as royalty. Presently, MMBL has sub-licensed the

Bollgard technology to 23 Indian seed companies. All these companies are working to

introduce the Monsanto gene into their own germplasm.

But in 2006-07, there was a fall in the sales revenue of MMBL to Rs 150.30 crore over the previous year's sales (Rs. 391.25 crore). The reason for the fall in the revenue was mainly because of the government intervention in fixing the price for Bt cotton seeds during the 2006 kharif season and due to increased competition in the Bt cotton seed segment.

Because of the continuous success of the Bollgard cotton, GEAC approved the upgraded variant, Bollgard II of MMBL for commercialization in 2006.

Number of available commercial hybrids in 2006

Number of available commercial hybrids in 2005

Bollgard Bollgard II

21 48 7

The total area covered under these hybrids in 2006 was 87.7 lakh acres with marginal coverage under Bollgard II.

The sub licensing of the technology was started by MMBL in 1998, much before the actual launch of Bt cotton in 2002. By 2002, it had five key seed companies as its partners. In the subsequent two years, it added another 18 companies. By 2005, it had 23 seed companies as its partners. MMB supports its sub licensees/ partners with the know-how of the technology. And also ensures that the seed partner should provide the best quality product to the farmers so that it is successful in the market.

MMBL’s role in awareness about Bt technology: MMBL has about 60 people working in the field, all of them being technical people with graduation in agriculture for bringing awareness about the new technology and about the advantages of adopting it. During 2006, MMB alone contacted more than 6-8 lakh farmers. This reach was through various media like TV advertisements, print media and farmers meeting.

85


With more awareness, advantages and availability, its officials say that in 2007 and 2008 further more hybrids are expected and there will be more availability of legal seeds in the market. This will put a lot of pressure on the sale of illegal seeds in the market.

RASI SEEDS LIMITED

Rasi Seeds Private Limited was initiated in the year 1973 in Attur of Salem district in Tamil Nadu. Rasi Seeds has made rapid advances from seed production and supply ventures to a commendable position in Research and Development (R&D). Its extra long staple superfine cotton variety SUVIN and the medium staple variety LRA 5166 are popular among farmers.

Excelling in the Research and Development in cotton seeds, it went on to expand into a multi-crop, multi-location quality research movement and has proved beneficial to the farming community. Over 10 million acres area is under its research cotton hybrids.

The company is well known for its cotton hybrids and Bt cotton hybrids. It is the 2nd company to obtain approval for Bt Cotton for its popular RCH 2 Bt.

Strategy: Rasi Seeds goes for corporate and contract farming, which benefits all- corporate/farmer, spinner, ginner and seed company.

Research and development: It has well-maintained Research Farm of 140 acres and,

55000 Sq.Ft. contained Green House, state of the art fibre testing lab, well equipped seed

testing laboratory, dehumidified cold storage facility for germplasm and breeding lines,

testing centres in various zones for multi-location trials to evaluate hybrids for

suitability, insect rearing and leaf bio assay facility for assisting biotechnological

research.

It has developed about 1150 hybrids of diverse characteristics.

R&D is capable of breeding intra Hirsutum (H X H), intra Barbadense (B x B) and inter

specific (H X B) hybrids and hybrids with high ginning percentage.

86


On going projects in cotton: The breeding of cotton is being done for development of

cotton hybrids with desired characteristics:

1. To develop earliness in Cotton Hybrids. 2. To develop dwarf and compact lines. 3. To improve boll size and yield. 4. To create drought tolerant lines 5. To develop pest tolerant lines by Conventional Breeding and transgressing with

Bt Genes. 6. To evolve varieties having staple varying from 26 mm to 38 mm for different

purposes. 7. To develop high ginners. 8. To develop high fibre strength.

On going projects in maize: The breeding of maize is being done for development of

maize hybrids with desired characteristics:

1. Sourcing and evaluation of germplasm lines 2. Breeding for new lines with earliness, erect leaves, high per se and orange flint

and orange yellow semi dent grain colour 3. Development of new single cross, modified single cross and three way cross

hybrids for evaluation and identification of high yield hybrid combinations. 4. Maintenance breeding for parental purity

Bt cotton hybrids: The company entered into tie-up with Monsanto in 1999 for

commercializing hybrid cotton with Bollgard technology. It is the second company in

Indian seed industry to get approval for the commercial release of its Bt cotton hybrids-

RCH 2 Bt for Central and South Zone; and RCH 118 Bt, RCH 138 Bt, RCH 144 Bt, RCH

377 Bt for Central Zone, RCH 134 Bt and RCH 317 Bt, RCH 308 Bt and RCH 314 Bt for

North Zone and RCH 20 Bt & RCH 368 Bt, RCH 371 Bt, RCH 111 Bt and RCHB 708 Bt

for South Zone. Also many more hybrids are in pipeline.

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NUZIVEEDU SEEDS LIMITED

Nuziveedu Seeds Limited was established in the year 1973. It has emerged as a leading

quality seed and Agri - biotech company over the years. It is having over 35% market

share in the proprietary hybrid cotton seed market in the country.

Nuziveedu Seeds Limited is working towards farmer’s development by developing and

maintaining the best quality hybrids, ensuring consistent and timely supply of seeds to

the market, maintaining harmonious relationship with growers, dealers, distributors

and suppliers.

Research and development: It has established well equipped R&D facility at Kompally.

The research farms are spread all over India in 500 Acres across different agroclimatic

zones.

Research farm Area(acres)

Hyderabad 150

Guntur and Nuziveedu 50

Nizamabad 130

Gurjala 114

Gurgaon 20

It has acquired Bt gene (Cry 1 Ac) and transferred into cotton hybrids. Its bollworm

resistant cotton hybrids Bunny and Mallika are popular among the farmers. The

technology has been sourced from Mahyco Monsanto Biotech Limited.

88


At present, Nuziveedu Seeds Limited is working to develop its own indigenous transgenic for imparting resistance to Bollworms in collaboration with NBRI, Lucknow and a reputed Agri-biotech Company at its well established biotechnology laboratory. It is working towards sourcing and evaluation of germplasm, development of novel germplasm for specific traits, development of hybrids and varieties with focus on improvement for yield, quality and resistance to biotic stresses and development of transgenics, especially for traits that have limited chance of success through conventional breeding.

It is having research collaboration with many national and international institutions and state agricultural universities.

Production and Processing: NSL over the years has established processing plants with

an effective storage area of 2,50,000 sq. ft. at 6 locations. It has its own Delta flat screen

machines, gravity separators and seed treatment and polymer coating machines. It

possess 8 complete automatic packing lines with an output capacity of 30 packets/min.

It has delinting and cotton seed processing facility with a capacity of about 300 quintals

per day. It also has needle separator. It has large conditioned storage godown with

automatic loading and unloading facility at Kompally and Kottur with an installed

capacity of 18,000 MT for minimizing cost and increasing efficiency.

Nuziveedu Seeds Limited is planning to get ISTA accreditation to enhance its

competence in the vibrant seed industry in the context of current global scenario.

Before marketing, every seed lot is subjected to GOT test which are conducted at

company farms at Nuziveedu, Nizamabad, Guntur, Attur and Kallakal.

Marketing: NSL has strong marketing network comprising of 1395 distributors &

dealers and over 20000 sub-dealers spread across 12 states of the country for serving the

client base of 65 lakhs of farmers effectively.

NSL has set-up regional offices at Secunderabad, Delhi, Akola, Ahmedabad, Guntur,

Davangere assisted by C&F Agents at Indore, Trichy, Bhatinda, Hissar and Patna.

Achievements: Cotton hybrids NCS-145 'Bunny' and NCS-207 'Mallika' were rated

'Excellent' by Indian Council for Agricultural Research (ICAR). Nuziveedu Seeds

Limited got the National Award for the year 2002 for best R&D Efforts in Industry by

Department of Scientific and Industrial Research, Ministry of Science and Technology in

89


recognition of the Company's efforts in the development of Cotton Hybrids, Bunny

(NCS-145) and Mallika (NCS-207).

It was 4th in rank among the seed companies according to revenue generated from Bt

cotton seed sales in the year 2005-06. The revenue generated by Nuziveedu Seeds

Limited from Bt cotton seed sales in the year 2005-6 was Rs. 62.52 crores. (Source: Ministry of Agriculture)

SUNGRO SEEDS LIMITED

Sungro Seeds Limited was established in 1973 in Srinagar (Jammu & Kashmir), but it

got shifted to Delhi in 1990’s. It is only engaged in vegetable seed production. It started

with 10 products in 1973, and now it has developed about 38 hybrids and 26 superior

open pollinated varieties of major high value vegetable crops. The company also

exports the seeds to foreign countries like USA, France, Japan, etc.

Ownership: It is closely held public limited company. It was acquired by Mahyco in

1996, but is operationally independent. It stands greatly benefited by the strong

technical backing with the latest technology, supported with modern facilities of

MAHYCO.

Research and Development: The company has research, trial grounds and production

centres in all the important agro-climatic zones of the country as per specific crops like

Kullu (H.P.) for cole crops, Delhi for tropical vegetables and Ranebennur (Karnataka)

for Solanaceous, cucurbits & okra etc. Its central processing and packing plant is at

Alipur.

HYBRIDS RELEASED BY SUNGRO

HYBRIDS CROP

RELEASED IN PIPELINE

Cauliflower 15 8

Radish 5 3

Carrot 2 4

Cabbage 6 4

Tomato 5 3

Eggplant 17 9

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Chilli 2 0

Ridgegourd 4 1

Spongegourd 3 0

Bittergourd 4 5

Bottlegourd 5 0

Karki 2 1

Cucumber 1 1

Okra 2 2

Watermelon - 1

Muskmelon - 1

Pumpkin 1 1

TOTAL 74 44

Crop seed varieties and hybrids in market:

Production: The company is producing about 12,000 quintals of seed of different crops

every year.

Turnover: The company has a turnover of about Rs. 33 crores. The seeds are sold across

all the states in the country. The highest revenue from seed sales is Rs. 6 crores from

Uttar Pradesh, followed by Rs. 5 crores in Bihar.

Strategies: The company is basically known for its open pollinated seed varieties. It

wants to concentrate on hybrid seeds as they are more profitable. It wants to change the

mindset of farmers about their company. It wants that people should know the

company as hybrid seed company.

Future projects: The company has got approval for producing Bt vegetable seeds. Large

scale trials on Bt vegetables, i.e. brinjal, cauliflower and cabbage for resistance against

lepidopteron insects are going on. The Bt vegetable seeds will be in the market in 2009.

NATH BIOGENE Ltd.

Major Areas of Operation: Pan India

Turnover: Rs. 80 crore

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Successful seed varieties/hybrids in market: (according to sales volume)

Crop Variety/Hybrid

Cotton Vishwanath, Nathbaba, Bharti

Hy. Paddy Lokanath-510, Ghoraknath-509

Hy. Pearl Millet NBH-05, NBH-07, Ekanath-301

Mustard Nathsona-212, Goldie

According to sales revenue:

Crop Variety/Hybrid

Cotton Vishwanath

Hy. Paddy Lokanath-510

Hy. Pearl Millet NBH-05

Mustard Nathsona

Hy. Maize NSMR-1133

Supply Chain:

Company Distributor Dealer Farmer

Margin given by the company:

Margin (%) from company to distributor: 5 to 8%

Credit period to distributor: 45 days

Margin (%) from distributor to dealer: 10 to 15%

Credit period to dealer: 30-45 days

92


Company’s contribution in margin (%) from distributor to dealer: 10-15%

Promotional tools are used by the company:

1. Field demonstration

2. Advertisement through TV/radio/newspaper

3. Pamphlets, hoardings and other printed material

Regulations faced by the company:

1. State wise seed license in all the states

2. GEAC approval for Bt products

Crop Seed Varieties exported by the company:

Country Name of the crop Variety exported

Bangladesh Corn NSMR-1133

Egypt Corn NSMR-1133

93


CASE STUDY: GM CROPS IN INDIA

GENETICALLY MODIFIED CROPS

Along with the other sectors, biotechnology has not kept the agriculture sector

untouched.

With the growing population, need for food is also increasing which has increased

pressure on the limited agricultural land. It has led to the wider adoption of genetically

modified or biotech crops because they highly productive, needs less amount of

pesticides, herbicides, etc thus increase the farm income.

The GM crops are the fastest adopted crop technology in the world, as it the only crop

technology showing 60 fold increase from the year of introduction till now.

The first GM crop grown was GM Tomato, in 1994, but it was in the year 1996, when

significant area was brought under GM crops. Since then, the area under GM crops is

increasing every year. In the year of introduction, the area was 1.66 mha which has

reached 102 mha in 2006. Such a fast rate of adoption of GM crops shows the

profitability from GM crops.

Source: Clive James, 2006

94


India has registered the highest proportional increase in the area under GM crops in

2006 which is almost 3 times of the area in 2005.

Slovakia planted GM crops for the first time, thus increasing the number of GM crops

growing countries from 21 to 22 in 2006. It planted Bt maize.

Source: Clive James, 2006

95


AREA UNDER GM/BIOTECH CROPS IN 2006

Rank Country Area (million hectares)

Biotech Crops grown

1 USA 54.6 Soybean, maize, cotton, canola, squash, papaya, alfalfa

2 Argentina 18.0 Soybean, maize, cotton

3 Brazil 11.5 Soybean, cotton

4 Canada 6.1 Canola, maize, soybean

5 India 3.8 Cotton

6 China 3.5 Cotton

7 Paraguay 2.0 Soybean 8 South Africa 1.4 Maize, soybean, cotton

9 Uruguay 0.4 Soybean, maize 10 Philippines 0.2 Maize

11 Australia 0.2 Cotton

12 Romania 0.1 Soybean

13 Mexico 0.1 Cotton, soybean

14 Spain 0.1 Maize

15 Colombia <0.1 Cotton

16 France <0.1 Maize

17 Iran <0.1 Rice

18 Honduras <0.1 Maize

19 Czech Republic

<0.1 Maize

20 Portugal <0.1 Maize

21 Germany <0.1 Maize

22 Slovakia <0.1 Maize Source: Industry sources

G M Soybean was the principal crop in 2006. It occupied 58.6 mha area followed by G M

Maize(25.2 mha), G M Cotton(13.4 mha) and G M Canola(4.8 mha).

A new biotech crop, herbicide tolerant alfalfa, was commercialized for the first time in

the US in 2006.

96



Herbicide tolerance has consistently been the dominant trait followed by insect

resistance and stacked genes for the two traits. In 2006, herbicide tolerance, occupied

68% or 69.9 million hectares of the global biotech 102 million hectares, 19.0 million

hectares (19%) planted to Bt crops and 13.1 million hectares (13%) to the stacked traits of

Bt and herbicide tolerance. The fastest growing trait between 2005 and 2006 was the

stacked product (30% growth) followed by insect resistance (17%) and herbicide

tolerance (10%).

The numbers of farmers growing GM crops has reached to 10.3 million in 2006

compared to the 8.5 million farmers in 2005. Of the 10.3 million, 90% (up significantly

from 7.7 million in 2005) were small, resource-poor farmers from developing countries.

Most of these small farmers were Bt cotton farmers. This shows that GM crops are

highly profitable because the GM crop seed varieties instead of being much costlier than

other varieties and hybrids, are being adopted on such a large scale and that too by the

small farmers.

97


Country Number of small farmers

growing Bt cotton in 2006

China 6.8 million

India 2.3 million

Philippines 100,000

Others 100,000


Biotech Crop Market: The entry of genetically modified seeds of crops in the seed

market has led to revolution in the Global seed industry.

Source: Phillips McDougall 2007

98


The global market value of biotech crops reached $6.05 billion in 2006 which represents

20.16% of the $30 billion global commercial seed market.

Source: Phillips McDougall 2007

The market value of the global biotech crop market is based on the sale price of biotech

seed plus any technology fees that apply.

Currently the largest share of the biotech crop sector is attributable to herbicide tolerant

crop varieties that represented over 57% of the value of the sector in 2006.

In 2006, the value of the market for plant biotechnology-based products, comprising

sales of seed of herbicide tolerant (HT) and insect resistant (IR) crops, continued to

advance by 14.2% to $6,050 million.

99


GENETICALLY MODIFIED CROPS IN INDIA

Bt cotton is the only genetically modified crop grown in India. The next biotech crop in

the pipeline for commercial release is expected to be Bt brinjal (eggplant) in 2007/08.

Other transgenic crops approved for limited field trials are cabbage, cauliflower, corn,

cotton, peanut, mustard, okra, pigeon pea, rice, and tomato, for traits such as nutritional

enhancement, pest resistance, and increased yields.

The area under Bt cotton is increasing every year. It was only due to the success of Bt

cotton that the share of bioagri in total biotechnology sector in India has reached 3.74%

in 2003-04. The share of revenue generated by bioagri in revenue generated by total

biotechnology sector is increasing every year from the year of introduction of Bt cotton

in India. In the year 2006-07, the revenue from bioagri has reached to Rs.8,541 crores

which is 10.84% of the revenue generated from total biotechnology sector. From the

total revenue generated from bioagri sector, about 95% was from domestic market.

Out of the revenue Rs.8,541 crores generated by Bioagri sector in 2006-07, the Bt cotton

seeds alone account for Rs. 835 crores.

Source: Biospectrum ABLE survey’ 2007

100


Five Indian seed companies are now among the top 20 biotech companies in the

country, with Bt cotton seeds becoming a revenue generating seeds due to farmer

acceptance of the product.

History of Bt cotton in India:

1989: Rules were made under the Environment Protection Act 1986 to govern GMOs.

1995: Permission to import 100 grams of Bt Cotton Seed was given by DBT.

1998: Permission was given for country wide field trials in 80 hectares and also for

producing seed in 150 hectares.

1999: Supreme Court case on violations and lack of biosafety and Andhra Pradesh and

Karnataka governments denied permission for field trials.

2000: Permission for large scale, multi-centric open field trials in 40 sites in 6 states was

given.

2001: One more year of field trials was ordered on 100 hectares, and Navbharat Bt

Cotton – spread of illegal/unapproved Bt Cotton was seen.

2002: Permission for 3 Mahyco-Monsanto varieties for commercial cultivation was

given.

2004: Permission for Rasi Seed’s RCH 2Bt was given for 6 states.

2005: Several new varieties were permitted for commercial cultivation – in all, 17

varieties.

101


Regulation for GM crops:

The Government of India has adopted a policy for careful assessment of the benefits

and risks of GM crops at various stages of their development and field release to ensure

biosafety. The rules governing their handling were notified in 1989 under Environment

Protection Act 1986. Ministry of Environment and Forests and Department of

Biotechnology, Ministry of Science and Technology are the two nodal agencies

responsible for the implementation of the regulations. The Government of India has

announced two new regulations which could adversely impact trade in agricultural

biotechnology products. The current legal troubles in India regarding the pricing of Bt

cottonseed could have serious implications for future technology transfer and foreign

direct investment in India’s biotechnology sector. Continuing its efforts to improve the

regulatory mechanism for bio-engineered crops, the Ministry of Environment and

Forests has decided to simplify the clearance system for biotechnology crops by

replacing the “case-by-case” approval process by an “event-based” approval

system(June’ 2006). It has decided to replace the long time consuming old system by a

new system:

Old system: A biotech hybrid or variety had to go for minimum of three years of

extensive trials in order to qualify for approval.

New system: Any seed with the cry 1Ac gene should require only one year of trials to

gain GEAC clearance, mainly to test the agronomic trait value of hybrids and to confirm

the presence of the gene.

The Indian Council of Agricultural Research (ICAR) trials for Bt cotton (with the cry

1Ac gene and the Mon 531 event) have been made optional. The roles of state

agricultural universities (SAUs) and state agricultural departments have been enhanced

by making them responsible for the pre-release field monitoring of biotech crops. The

responsibilities have been transferred to the SAUs, because agriculture is considered to

be a state subject.

102


FUNCTIONS OF INDIAN BIOTECH REGULATORY AUTHORITIES

COMMITTEE FUNCTIONS

Institutional Biosafety Committee (IBC)

Training GM project personnel for safety.

Coordinate with district and state level

biotechnology committees.

Instituting health monitoring program for

lab personnel.

Carry out periodical medical checks on lab

personnel.

Review Committee on Genetic

Manipulation

(RCGM)

Review all ongoing GM research projects.

Undertake visits to trial sites to ensure

adequate security measures.

Issue clearance for import of raw materials

needed in GM research projects.

Scrutinize applications made to the GEAC

for import of bioengineered products.

Form Monitoring and Evaluation

Committee for bio-engineered crop

research projects.

Appoint sub-groups as and when required

in topics of interest to the committee.

Genetic Engineering Approval Committee

(GEAC)

Approve activities involving large-scale

use of potential hazardous microbes and

recombinants in research and industrial

production from the point of view of

environmental safety.

Approve proposals relating to release of

103


genetically engineered organisms and

products into the environment, including

field trials.

Take punitive actions on those found

violating the GM rules under EPA, 1986.

Consult RCGM on technical matters

relating to clearance of bioengineered

crops/ products.

Approve bioengineered foods for

commercial sales/distribution.

Recombinant DNA Advisory Committee

(RDAC)

Take note of developments in

biotechnology at national and

international level.

Prepare suitable guidelines for safety in

research and applications of GMOs.

Prepare other guidelines as may be

required by the GEAC.

State Biotechnology Coordination

committee (SBCC) (in states where biotech

research occurs)

Periodically review safety and control

measures in institutions involved in

handling biotech products.

Inspect and take punitive action through

the State Pollution Control Boards or the

Directorate of Health in case of violations.

Take on-site control measures.

District-Level Committee (DLC)

To monitor safety regulations in research

and production installations Investigate

compliance with rDNA guidelines and

report violations to SBCC or GEAC.

Source: Environmental Protection Act, 1989

104


PROCEDURE FOR APPROVAL OF BIOTECH CROPS IN INDIA

Source: Department of Biotechnology, GOI

India, which has about 9.2 mha area under cotton, ¼ th of global area under cotton and

largest among all the cotton growing countries, has 3.8 mha under G M cotton. India

ranks 5th in area under G M crops among all the countries growing G M crops. Until

2002; India was not growing transgenic crops. Bt cotton was introduced in the year

2002, when world’s largest seed company Monsanto entered Indian seed market and

got license to market the cotton seeds produced by Mahyco Seeds Company of India

incorporated with gene cry1Ac from Bacillus thruengenesis bacteria. Bt cotton was the

first transgenic crop to get commercialized in India. The approval was given first to

three hybrids of Mahyco seeds- MECH-12 Bt, MECH-162 Bt, MECH-184 Bt by the

Genetic Engineering Approval Committee (GEAC) – the apex nodal agency that accords

clearance for GM crops. This led to a great move in India as it controlled the bollworm

disease in cotton to great extent, which is the main reason behind the loss in cotton

Applicant

IBSC

RCGM MEC

GEAC ICAR

Seed Act/

Rules

Release for

Commercia

l

agriculture

To inform decision to

Ministry of Agriculture

and to inform applicants

to follow the relevant

Acts and Rules

IBSC Functions

To note, approve, recommend &

to seek approval of RCGM

RCGM Functions

To note, approve,

recommend generation

of appropriate biosafety

& agronomic data

MEC Functions

To visit trial sites, analyze data,

inspect facilities, and recommend

safe and agronomically viable

transgenics to RCGM/GEAC

GEAC Functions

To approve for large-scale

use, open release

in to the

environment

ICAR TRIALS

To generate complete agronomic

data and to recommend for

commercial release of GM crops.

105


production in India. Farmers started the use of Bt seeds, as it also decreased their

expenditure on pesticides used for controlling Bollworm. The adoption was there on

such a large scale that not even the Indian companies came into this segment, but a

large number of multinationals also moved into the competition of getting license for

marketing Bt cotton seeds in India. Today a large number of private companies are

engaged in Bt cotton seeds production and marketing in India. Some are engaged in

developing their own germplasm and others like Rasi, JK Seeds have taken the

germplasm from Monsanto.

Area under GM crops in India:

AREA UNDER Bt COTTON IN INDIA

0

500

1000

1500

2000

2500

3000

3500

4000

2000 2001 2002 2003 2004 2005 2006

Year

Are

a('0

00ha

)

Area('000 ha)


Area coverage under Bt cotton, the only commercially-released biotechnology crop in

the country, continues to grow every year. Before 2002, genetically modified crops were

not grown in India. After 2002, when Bt Cotton was commercialized in India, the area

under Bt cotton is increasing every year with highest increase of 192.3% in 2006 as

compared to the previous year 2005.

106


% BREAKUP OF Bt COTTON AREA IN DIFFERENT STATES IN 2006

Source: Biospectrum Able Survey’ 2007

Apart from this, some other states also went for cotton cultivation in 2006 for the first

time covering an area of 5 million hectares.

107


The number of small farmers growing Bt cotton hybrids in India has increased to 2.3

million in 2006 as compared to 1 million in 2005 and 300,000 in 2004. This sharp increase

in the number of small farmers growing Bt cotton shows that Bt cotton is highly

profitable.

FARM LEVEL INCOME IMPACT OF USING GM IR COTTON IN INDIA 2002-2005

Sources and notes:

1. Impact data based on Bennett et al (2004) and IMRB (2006)

2. All values for prices and costs denominated in Indian Rupees have been converted to US dollars at

the annual average exchange rate in each year.

108


COST OF CULTIVATION OF BT COTTON IN MAHARASHTRA (Rs/ha)


Bt Cotton Hybrids:

The approval for Bt Cotton hybrids is given by the Genetic Engineering Approval

Committee. In the year 2002, only 3 hybrids were commercialized, and in 2006, about 62

hybrids were there in the market.

In 2005, the northern states of Punjab, Haryana and Rajasthan started cultivation of Bt

cotton after the approval of six Bt cotton hybrids for these states for the first time.

Details 2002-03 2003-04 Overall

Bt hybrid Conventional Bt hybrid Conventional Bt hybrid Conventional

Land 1345 1345 1420 1420 1382.5 1382.5

Seeds 4476 1645 4325 1496 4400.5 1570.5

Manures 1482 1482 1565 1565 1523.5 1523.5

Gap filling 169 180 140 170 154.5 175.0

Weeding 1927 1730 1880 1740 1903.5 1735.0

Plant 1097 2394 1170 2410 1133.5 2402.0

Picking 2096 1686 2496 1926 2296 1806

Total cost 12592 10462 12996 10727 12794.0 10594.5

Yield (q/ha) 11.73 9.72 12.48 9.63 12.10 9.69

Price (Rs/q) 2078 2029 2250 2225 2127 2078

Gross return 24375 19722 28080 21427 26227.5 20148.2

Net return 11783 9260 15084 10700 13433.5 9620.0

Output/input

ratio

1.94 2.00 2.16 1.89 1.96 1.94

109


Bt Cotton Hybrids approved till 2006:

110


BollgardII:

Bollgard II contains the cry 2 Ab gene, in addition to cry 1 Ac. The Bollgard II event

developed by Mahyco-Monsanto Biotech Ltd, (MMBL) is technically designated as

MON 15985.

It was approved by GEAC for commercial release in May 2006. It has been developed

by several different seed companies, but only for the Central and Northern Zones.

Several other varieties suitable for all the three zones are expected to be approved for

this year’s cotton season.

Bollgard II (Bt cotton) has the advantage of controlling both Bollworm and the sucking

pest, Spodoptera.

Bt COTTON VARIETIES APPROVED FOR COMMERCIAL CULTIVATION IN

THE VARIOUS ZONES DURING 2002

S.No. Name of

Hybrids

Name of

Company

Gene event

1 MECH 12 Bt Mahyco cry 1 Ac (MON 531

Event)


Event)


Event)

111




S.No. Name of

Hybrids

Name of

Company

Gene event

1 RCH 2 Bt Rasi Seeds Ltd. cry 1 Ac (MON 531

Event)



S.No. Name of

Hybrids

Name of

Company

Gene event

1 NCS-207 Mallika Nuziveedu Seeds

Ltd.

cry 1 Ac (MON 531

Event)

2 NCS-145 Bunny Nuziveedu Seeds

Ltd.

cry 1 Ac (MON 531

Event)

3 RCH-144 Bt Rasi Seeds Ltd. cry 1 Ac (MON 531

Event)


Event)


Event)


Event)


Event)

112



Event)


Event)

10 MRC-6322 Bt Mahyco cry 1 Ac (MON 531

Event)


Event)


Event)


Event)

14 Ankur-651 Bt Ankur Seeds Ltd. cry 1 Ac (MON 531

Event)


Event)


Event)



S.No. Name of

Hybrids

Name of

Company

Gene event


Event)

113



Event)

3 NCS-913 Bt Nuziveedu Seeds

Ltd.

cry 1 Ac (MON 531

Event)

4 NCS-138 Bt Nuziveedu Seeds

Ltd.

cry 1 Ac (MON 531

Event)


Event)


Event)


Event)

8 RCH-111 BG I Rasi Seeds Ltd. cry 1 Ac (MON 531

Event)

9 RCH-371 BG I Rasi Seeds Ltd. cry 1 Ac (MON 531

Event)

10 RCHB-708 BG I Mahyco cry 1 Ac (MON 531

Event)

11 GK-205 Bt Ganga Kaveri

Seeds Pvt. Ltd.

cry 1 Ac (MON 531

Event)


Seeds Pvt. Ltd.

cry 1 Ac (MON 531

Event)


Seeds Pvt. Ltd.

cry 1 Ac (MON 531

Event)


Seeds Pvt. Ltd.

cry 1 Ac (MON 531

Event)

15 KDCHH 9810 Bt Krishidhan Seeds

Pvt. Ltd.

cry 1 Ac (MON 531

Event)

114



Pvt. Ltd.

cry 1 Ac (MON 531

Event)


Pvt. Ltd.

cry 1 Ac (MON 531

Event)

18 ACH-33-1 Bt Ajeet Seeds Ltd. cry 1 Ac (MON 531

Event)

19 ACH-155-1 Bt Ajeet Seeds Ltd. cry 1 Ac (MON 531

Event)

20 Tulasi 4 Bt Tulasi Seeds Pvt.

Ltd.

cry 1 Ac (MON 531

Event)

21 Tulasi 117 Bt Tulasi Seeds Pvt.

Ltd.

cry 1 Ac (MON 531

Event)

22 NPH 2171 Bt Prabhat Seeds Ltd. cry 1 Ac (MON 531

Event)

23 Brahma Bt Emergent Genetics cry 1 Ac (MON 531

Event)

24 VICH 5 Bt Vikram Seeds Pvt.

Ltd.

cry 1 Ac (MON 531

Event)

25 VICH 9 Bt Vikram Seeds Pvt.

Ltd.

cry 1 Ac (MON 531

Event)

26 PRCH-102 Bt Pravardhan Seeds

Ltd.

cry 1 Ac (MON 531

Event)

27 PCH-2270 Bt Prabhat Seeds Ltd. cry 1 Ac (Event 1)

28 VCH-111 Bt Vikki Agrotech

Pvt. Ltd.

cry 1 Ac (Event 1)

29 MRC 7301 BG II Mahyco cry 1 Ac & cry 2 Ab

(MON 15985 Event)

115


30 MRC-7326 BG II Mahyco cry 1 Ac & cry 2 Ab

(MON 15985 Event)


(MON 15985 Event)


(MON 15985 Event)


(MON 15985 Event)

34 KDCHH-441 BG

II

Krishidhan Seeds

Pvt. Ltd.

cry 1 Ac & cry 2 Ab

(MON 15985 Event)

35 ACH-11-2 BG II Ajeet Seeds Ltd. cry 1 Ac & cry 2 Ab

(MON 15985 Event)

36 JKCH 1947 Bt J K Agrigenetics

Ltd.

cry 1 Ac gene (Event 1)

37 JK Varun Bt J K Agrigenetics

Ltd.


38 JK Durga Bt J K Agrigenetics

Ltd.


39 JKCH-99 Bt J K Agrigenetics

Ltd.


40 NCEH-6R Nath Seeds Ltd. cry 1 Ab+Cry 1 C



116




The GEAC has approved 53 new Bt cotton hybrids for commercial sale in India in 2007. The number of Bt cotton hybrids available to farmers has now increased to 115 in 2007. The approval of new hybrids were granted in the light of the Supreme Court recent order, which accorded approval for commercial release of Bt cotton hybrids expressing approved gene events MON 531 event, MON 15985, Event-1 and GFM event. These Bt cotton hybrids approved by GEAC include six of Vibha Agrotech Ltd; five each of Nuziveedu Seeds Ltd and Nandi Seeds Ltd; four of DSCL's Bioseed Research India Ltd; and three each of J.K. Agri-Genetics Ltd, Ankur Seeds and Prabhat Agri Biotech Ltd., two each of Mahyco Seeds Ltd, Proagro Seed Company, Rasi Seeds, Ajeet Seeds, Pravardhan Seeds and Kaveri Seed Company; and one each of Nath Seeds, Namdhari Seeds, Zuari Seeds, Vikram Seeds, Navkar Hybrid Seeds, Ganga Kaveri Seeds and Amar Biotech Ltd.

EVENT-WISE APPROVAL OF NEW BT COTTON HYBRIDS IN 2007

Bt cotton hybrid Events

North zone Central zone

Total

BG-I 13 23 36

BG-II 4 5 9

Event-I 1 3 4

GFM Event - 4 4

Total 18 35 53

Source: Compiled by ISAAA

117


RANKING OF COMPANIES ACCORDING TO Bt COTTON SEED SALES

IN 2006-07

Rank in

2006-07

Company

Turnover(Rs. Crores)

in 2006-07

Turnover(Rs. Crores)

in 2005-06

1 Rasi Seeds 333.33 309.49

2 Nuziveedu Seeds 226.42 62.52

3 Mahyco 110.69 117.76

4 Ankur Seeds 69.5 -

5 Biotech International 26 -

6 Others 160.06 108.23

Total 926 598

Source: Biospectrum Able Survey’2007

The growth in BioAgri sector was 54.85% in 2006-07 as compared to 2005-06, with

highest growth recorded in Nuziveedu Seeds( 262.12%). Mahyco showed a negative

growth rate of -6% as compared to the previous year 2005-06.

Rasi Seeds, Nuziveedu Seeds and Mahyco have been the prime contributors to BioAgri

sector accounting for 72.34 percent share of the total BioAgri market in 2006.

Seed companies paid Monsanto Biotech about Rs 1,200 per packet as royalty to

Monsanto in 2005-06.

118


Bt COTTON SALES(packets) IN DIFFERENT STATES

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2003 2004 2005

YEAR

SA

LES

(pac

kets

)

Maharashtra

Andhra Pradesh

Gujarat

Madhya Pradesh

Punjab, Haryana, Rajasthan

Karnataka

Tamil Nadu


The Bt cotton seed sales is increasing every year. The sales of Bt cotton seeds is seen

highest in Maharashtra state in the past 2 years of 2004 and 2005. In the year 2003, the

sales was highest in the state of Gujarat, but after this, it started decreasing due to the

spurious Bt cotton seed business in Gujarat. Earlier, the price of Bt cotton seeds was

about Rs.1200/450 gm more than non Bt cotton seeds, but after the set up of

competition in the Indian Bt cotton seed industry, the difference between the prices has

decreased.

Non Bt cotton seeds: Rs.400/450 gm

Because of Monsanto's tech fee, Bt cotton seed in India costs the farmer Rs 1,500-1,700

per 450 gm including manufacturer's costs and dealer margins. Initially, Monsanto's Bt

cottonseed fee in India was Rs 1,200 for every 450 gm packet. The fee was raised to Rs

1,250 the next year but was reduced to Rs 900 in 2006.

119


EARNINGS OF SEED COMPANIES FROM THE Bt TECHNOLOGY FEES

Between 2002 and 2005, the seed companies had earned Rs. 1,400-crore by the way of royalty alone (technology fee). In 2006, the seed companies aimed to pocket Rs 4,000-crore as royalty from farmers cultivating Bt cotton in 3.5 million hectares.

In 2006, about 42% of the country's total cotton area was under GM cotton. At one packet per acre and an average Rs 900 per packet, the domestic transgenic cotton seed market is now well over Rs 800 crore. The GEAC approval to the 53 new hybrids may further intensify competition and expand the market to the advantage of farmers.

Between 2002 and 2006, the country's cotton output has shot up from 86.24 lakh bales to 210.37 lakh bales, coinciding with the introduction of transgenics.

SATISFACTION LEVEL OF FARMERS FROM PAST USAGE OF Bt COTTON IN 2005(Sample size:1331)


120


ORGANIZATIONS WORKING ON Bt COTTON

(under development and field trials)

Organization Transgene

Ankur Seeds, Nagpur cry1Ac; cry1Ac and cry2Ab

Ajeet Seeds, Aurangabad cry1Ac; cry1Ac and cry2Ab

Emergent Genetics, Hyderabad cry1Ac; cry1Ac and cry2Ab

Ganga Kaveri Seeds, Hyderabad cry1Ac

J. K. Agrigenetics, Hyderabad cry1Ac

Krishidhan Seeds, Jalna cry1Ac; cry1Ac and cry2Ab

Mahyco, Mumbai cry1Ac; cry1Ac and cry2Ab

Metahelix, Bangalore cry1Ac

Nandhi Seeds, Hyderabad cry1Ac

Nath Seeds, Aurangabad GFM cry1Aa

Nuziveedu Seeds, Hyderabad cry1Ac; cry1Ac and cry2Ab

Namdhari Seeds, Bangalore GFM cry1Aa

Pravardhan Seeds, Hyderabad cry1Ac

Prabhat Agri Biotech, Hyderabad cry1Ac; cry1Ac and cry2Ab

Rasi Seeds, Attur cry1Ac; cry1Ac and cry2Ab

Safal Seeds, Jalna GFM cry1Aa

Syngenta India, Pune Vip-3a

Tulsi Seeds, Guntur cry1Ac; cry1Ac and cry2Ab

University of Agricultural Sciences, Cry1Ab

121


Dharwad

Vibha Seeds, Hyderabad cry1Ac

Vikki Agrotech, Hyderabad cry1Ac

Vikram Seeds, Ahmedabad cry1Ac

Zuari Agrotech, Bangalore GFM cry1Aa

Source: Biospectrum Able Survey’2007

G M CROPS UNDER FIELD TRIAL IN INDIA DURING 2005

S. No. Crop Trait Organization

1 Brinjal

Insect resistance Indian Agriculture

Research Institute,

MAHYCO, Sungro

Seeds Ltd.

2 Cabbage Insect resistance Sungro Seeds Ltd

3 Cauliflower Insect resistance Sungro Seeds Ltd

4 Corn Insect resistance Monsanto (India),

Metahelix Life Sciences

5 Cotton Insect resistance University of

Agricultural Sciences

(UAS, Dharwad), Bio

seed India Pvt. Ltd.,

Emergent Genetics

India Pvt. Ltd; Green

Gold Seeds Ltd.,

Kaveri Seeds Co. Ltd;

Metahelix Life

Sciences; Namdhari

Seeds Pvt. Ltd;

Proagro Seeds Co. Ltd;

122


Vibha Agrotech Ltd;

Vikram Seeds Ltd;

Zuari Seeds Ltd.,

Ankur Seeds, JK Agri

Genetics, Krishidhan

Seeds, MAHYCO,

Nath Seeds, Rasi Seeds

Ltd; Syngenta India;

Nuziveedu Seeds,

Mahendera Hybrid

Seeds,

Tulsi Seeds, Ganga

kaveri, Vikki’s

Agrotech, Pravardhan

Seeds, Prabhat Agri

Biotech; Ajeet Seeds

6 Groundnut Virus resistance ICRISAT

7 Mustard Cytoplasmic male

sterility

University of Delhi

South Campus (UDSC)

8 Okra Insect resistance MAHYCO

9 Pigeon Pea Resistance to fungal

pathogens

ICRISAT

10 Rice Resistance to pests;

bacterial blight,

fungal pathogens, salt

tolerance

IARI, MAHYCO,

Metahelix Life Sciences

11 Tomato Insect resistance, virus

resistance

IARI, MAHYCO

Source: Bio safety News Letter; 2005, Vol., 1(2)

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Illegal or Spurious Bt cotton seeds:

High demand for Bt cotton seeds has led to the emergence of a new seed industry of

illegal or unapproved Bt seeds. The farmers of India were so eager for using the Bt

cotton seeds that some of the companies even didn’t wait for receiving the biosafety

clearance and launched the seeds in the market. Thus illegal Bt cotton seed industry

was emerged in India. These illegal seeds of Bt cotton were in market before the first

approval of Bt cotton by GEAC. These seeds were discovered in Gujarat in 2001, one

year before the launching of Bt cotton seeds in the market. This seed is Navbharat 151

distributed by Navbharat seeds based in Ahmedabad. It is illegal because it has not

received biosafety clearance from the government. Earlier in 2001, it was restricted to

Gujarat, but now it has spread to other states also, like Andhra Pradesh, Punjab,

Haryana, Rajasthan, Maharashtra.

According to Sainath 2005, about 90,000 packets of legal Bt cotton were sold in

Yavatmal district of Maharashtra against 2,50,000 packets of illegal Bt cotton.

The low cost production of cotton using illegal Bt cotton seeds in Gujarat attracted the farmers especially from the northern states to go for the use of illegal Bt cotton seeds for cultivation. Driven by the high margins and scarcity of quality hybrids last year, a large quantity of F2 seeds under the name of Bt cotton were smuggled from Gujarat. Others states including Andhra Pradesh and Maharashtra are also involved in supplying of

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illegal seeds to other states. As per industry sources, in 2006, 75% of estimated 15 lakh Bt cotton seed packets sown in the northern states of Punjab, Haryana and Rajasthan were brought from Gujarat and the remaining from other states. The price of this Bt cotton seed fluctuated between Rs 450-1,000 per packet (450 gm).

The illegal Bt cotton seeds industry is a threat to legal Bt cotton seed industry as there is

a big market for spurious and illegal Bt cotton seeds in these states due to their

relatively low price.

It is evident from the fact that Punjab, which has taken Bt cotton in major way, had more than 60% of cotton acreage covered by false or illegal Bt cotton in 2006. Also the spurious trade in 2006 that has led to adoption of fake BT cotton by the farmers on a large scale and has robbed the six authorized companies of Rs 150 crore business alone in Punjab, Haryana and Rajasthan. It reduced the gross sales of authorized companies in North India to 5.5 lakh packets whereas the market potential stood at over 16 lakh packets.

Selling of fake or spurious seed is a cognizable offence according to the Seed Act, 1966,,

even then the sales of illegal Bt cotton is increasing at a fast pace.

Spurious Bt Cotton Seeds available under different Brand Names

The illegal seed comes in plain cellophane packets of 450 gm in various brand names

and the only source of supply is a shadowy figure always described as a "reliable

dealer".

According to Research Foundation for Science Technology and Ecology, illegal Bt cotton

sold under 32 different names was sown in 2004 season. (Sharma, 2005).

It is generally called F1. There is also F2 and F3 and a lot many others that come in

bright wrappers with beguiling brand names.

Spurious Bt cotton seeds are available in large number of brand names:

• Rakshak

• Virat

• Captain F-1 Hybrid Cotton Seeds

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• Research Hybrid Cotton F-1 (Tilak)

• Trishul ( F1)

• Kavach F-1 Hybrid Kapas – 151

• Suraksha – Hybrid Cotton Seeds

• Research Hybrid Cotton F-1

• Krushi-357

• Bunny Bt

• Super Bunny

• H-8

• Om-3

• Azadi

• Anmol

• Best

• Maha Anmol

• Sudarshan

• Aiklav

• Bahadur

• Gold

• Maha Gujarat

• Sema

• Sartaj

• Kamander

• Balwan

• Mold

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• Om-1

• Om-2

• Om-3

• Rakshak

• Patidar-8

• Navbharat 55

• Navbharat 151

• Navbharat 11

• Parth

• Sarthi

• Paramarsh 10

• Surakksha

• Anand-41

• Jai Ratan

• Navratan

• Varsha

• A1-Homeguard

• Bullet-707

• Manmold

• Sona

Illegal Bt cotton seeds- a matter of concern for India

• The spread of illegal Bt cotton seeds can lead to the development of resistance in

bollworms because of the increasing use of seeds with limited potential to fight

with the pests.

127


• The unregulated use of the illegal seeds is a matter of concern as the success of

the illegal Bt cotton could lead to the collapse of cotton farming in Gujarat, a state

that grows nearly one fifth of the cotton produced in India and records the

highest yields in the country.

• It can discourage genetic research by the companies as they are investing in R&D

to develop new strains of GM crops, even then the sales are going down because

of increasing illegal seed market.

• India may loose a powerful tool to enhance crop productivity if GM technology

is bought into dispute.

Reasons behind fast spread of illegal Bt cotton seeds

• Most of the farmers of India are marginal and small. Along with quality, price is

also a factor in choice of seed variety. Legal Bt cotton seeds are marked at much

higher proce compared to the illegal Bt seeds.

• The drought in Andhra Pradesh and Maharashtra resulted in poor performance

of Bollgard due to which there was a controversy which made a large section of

the farming community tilted towards the feeling that Bt technology by

Monsanto is not really worthwhile.

• The illegal Bt cotton of Navbharat Seeds has a shorter duration of 140-150 days

against the normal Bt cotton of duration 180-190 days and as it is said that illegal

Bt cotton of Navbharat Seeds does not require spraying. So farmers feel it

profitable as compared to the legal Bt cotton seeds available in the market.

• The other matter is quality. The hybrids that Mahyco chose for expression of the

Bt gene are generally considered poor performers as they were selected

according to the conditions when the research was started a long time back. But

now a large number of companies have come up with their promising hybrids.

• The illegal Bt cotton seeds sale is increasing at an alarming rate. The regulatory

system is unable to do anything for regulating the spread.

• There is lack of awareness among the farmers about the Bt technology.

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Changing trends in Indian Bt cotton seed industry

• Till 2006, all the Indian companies used to incorporate Bt technology from Monsanto of United States in their cotton hybrids and then used to market them. From the revenue earned, a major portion was going to Monsanto as the technology fee, but now in 2007, India has come to a stage when it has started using technology from its own sources. J K Agrigenetics has developed Bt cotton seed varieties (Event I with cry1Ac gene) indigenously jointly with IIT Kharagpur.

• Nath Seeds has tied up with a Chinese firm for licensing of Bt technology (GFM Event with cry1Ab and cry1Ac gene). As Bt technology is available in China at very less rate compared to that in India by Monsanto, the cost of the Bt cotton seeds from Nath Seeds will also be low.

• A large number of organizations and companies are entering the Indian Seed Market for licensing of technology to Indian companies. It will lead to increased competition and lowering of prices, which will prove favorable to the Indian farmers.

129


ISSUES AND CHALLENGES IN THE INDIAN SEED INDUSTRY

Issues in the Indian Seed Industry

Consolidation in Indian Seed Industry: A large number of multinational companies are entering India by having tie-ups with Indian seed companies. This is helping in development of Indian seed industry by providing of new technology, R&D, etc, and by opening the door of trade in their countries for the Indian companies. But the most important issue is the retaining of identity of Indian seed companies. Indian companies should take the advantage of this but not allow them to become the king in Indian seed market by total acquisition of Indian seed companies.

Rise of Illegal Seed Industry: Illegal seeds can spoil the credibility of the product and technology. These can mislead the farmers. Also their low cost can led to increased market of these illegal seeds, which can affect the enthusiasm of technology developers; who always abide the laws.

Decreasing area under cereal crops: Due to the movement of farmers from cereal crops to other crops, the situation of food scarcity may occur. As large population in India is dependent on cereal crops for meeting their food requirement, the decreasing area can lead to rise of many problems. For this, the seed companies should go for development of highly productive hybrids; so that the farmers get high profits from the cereal crops and they don’t shift to other crops.

Challenges in Indian Seed Industry

Food security: Highly increasing population of India is a major concern for India. It can lead to food insecurity. It is the challenge for the Indian seed industry, which needs to addressed. To help India in preventing from reaching the situation of food insecurity in future, Indian seed industry should work towards development of highly productive seed varieties.

Helping the Indian farmers to compete in the globalized agricultural market environment.

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SWOT ANALYSIS

The SWOT analysis help in analyzing the strengths, weaknesses, opportunities, and

threats of Indian Seed Industry.

Strength:

• Large number of seed companies in the Indian seed market producing a large number of hybrids/varieties to cater the needs of large farming population.

• Low cost of seed production in India. • Varied agro climatic regions providing factors for the production of different

crop seeds. • Large number of seed companies entering the market leading to good

competition and reduction in price of seeds.

Weakness:

• Weak infrastructure facilities of Indian seed companies. • Less brand awareness among the Indian farmers about new varieties/hybrids.

Peer pressure plays a major role in buying of seed variety/hybrid. • Regulatory mechanism takes large time in giving approval to hybrids/new

varieties.

Opportunities:

• Large farming population needing large amount of seeds making India a potential market for seeds.

• After the regulation on the entry of seed companies were made easy, large number of multinational companies are entering Indian seed industry, helping India to generate large revenues.

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• Consolidation in the Seed Industry has resulted in tie up of many Indian companies with the multinational companies. This will be of great help to Indian seed industry as the R&D, technological facilities etc of the multinational companies will be shared by the Indian companies. This will lead to production of improved varieties/hybrids.

• Public Private partnership is coming up which after proper utilization can benefit the Indian seed industry. The public sector has wide extension network which can be utilized by the private companies for their marketing and promotion.

• Export to nearby countries can be fruitful. Even if the Indian seed market gets saturated, the seeds can be exported to nearby countries of Pakistan, Bangladesh etc. As the seed production cost in India is low, seed export to nearby countries will lead to profitability.

• Cereal seed segment is still undiscovered as most of the companies are involved in the production of varieties/hybrids of vegetables and cash crops. There is a lot of scope in cereal seed varieties/hybrids segment as a large portion of farming population in India is still growing cereal crops.

Threats:

• The entry of illegal/spurious seed of different crops especially cotton in the Indian seed market is providing threat to Indian seed industry as the low prices of these illegal seeds is leading to its increased seed sales.

• Uncertainty of monsoon leads to loss of seed industry.

• Multinational companies are trying hard to capture the massive Indian seed market, which may prove harmful to Indian seed companies.

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RECOMMENDATIONS

• Public-Private Partnership: The public-private partnership can take Indian seed industry to great heights. The private sector was not viewed properly by the public sector. Because of this reason, the private sector was not able to work up to its full potential. The partnership can lead to sharing of jobs as well as benefits. The private sector can make use of the wide extension network of public sector to promote and market its varieties as well as to provide extension facilities to the farmers, whereas public sector can get the R&D infrastructure and technological advances from the private sector.

• Creation of Seed Valleys: Seed valleys should be created for different crops in different parts of country according to the agro climatic conditions needed by the crop. The public and private sector should work together. Farmers should also become the partners in progress. Infrastructural facilities should be provided. People from public and private sector and the partner farmers should meet once in a fortnight to discuss the problems and needs.

SEED VALLEY

FARMERS

PUBLIC

SECTOR

PRIVATE

SECTOR

Providing infrastructure

Partners in progress

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• Changes in Seed Regulation mechanism: Seed regulatory mechanism should be there but the time taken for the implementation should be reduced. Sometimes due to large time taken by the regulatory authorities, discontent is there in the market which may result in illegal practices like marketing of spurious seeds in the case of Bt cotton. It should take place in the presence of persons from Seed companies.

• Removal of entry barriers for Multinational Seed Companies: Entry barriers should be removed as the entry of Multinational seed companies in the Indian seed market can lead to sharing of their germplasm, new technologies, etc, which can be used for the improvement of seeds produced for Indian seed market. It can prove productive for Indian farming. Also, as more number of companies will enter the Indian seed market, it will set up competition in the market, which can lead to lowering of seed prices, and finally Indian farmers will get benefited.

• Increasing the awareness level of farming community in India: Awareness level of the farmers should be increased, because less awareness can lead to discontent among the farmers. As it happened in the case of Bt cotton: Bt cotton is not suited for rainfed

conditions, but due to lack of awareness; farmers grew it in rainfed conditions,

and when the crop failed, they blamed the Seed companies producing Bt cotton

varieties for the loss. However, the Seed companies give the required

information on the seed packet, but most of the farmers ignore it, main reason

being the lack of education among the farming community in India.

For this, demonstrations should be carried out in the villages while introduction

of new varieties/hybrids and the farmers should be told about the benefits,

methods/practices to be followed, and precautions to be taken during the life of

that crop variety.

The company people should make regular visits to the villages for discussing

the problems faced by the farmers.

The farmers should be regularly motivated for using new seeds every year by

making them know about the benefits of using new seed every year.

The farmers should be provided access to credit; as even today, a large number

of farmers are taking credit from money lenders and paying high interests to

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them which lead to the loss and finally the result is suicides by many farmers.

The seed companies should take care of it, after all a large part of Indian

population still depends on agricultural activities, and India’s progress depends

on the progress of its people.

• Exploration of unexplored Cereal seed segment: Most of the Indian seed companies produce varieties/hybrids of vegetables, cash crops and millets, but the cereal seed segment is still left untouched by the private seed companies. The seed companies should also go for the production of cereal seed varieties/hybrids as this segment is loosing its importance. The farmers are shifting from cereal crops like rice and wheat to other crops like cotton because good hybrids/varieties of cereal crop seeds are not present in the market. The seed replacement rate is very low as most of the farmers who are growing cereals are using the farm saved seeds. The area under cereal crops is decreasing which is not a good sign, as India has edge over other countries in cereal production; the “Basmati” rice of India is famous all over the world and generates good revenues from export. Also, these crops are the basic food for the large portion of Indian population.

Increasing number of Bevarage industries in India: “Way towards success of

cereal seed segment”

Recently a large number of companies involved in the production of beverages

have opened in India. These companies require cereals in large amount for the

production purpose. It can prove as a good opportunity for the farmers. Farmers

can earn a lot from this emerging industry. But to make this happen, the farmers

shift to other crops from cereal crops should be stopped. And this can happen

only if emphasis is given on development of good varieties and hybrids of cereal

crops.

• Investment in R&D for the production of quality hybrids of Medicinal and Aromatic plants: The market for medicinal and aromatic plants is increasing at a

faster rate, and India has the suitable climate for their production. India can earn

a lot of profit by exporting these plants. Indian seed companies should take the

advantage of it. They should invest in R&D and go for vigorous research for the

production of quality varieties/ hybrids of medicinal and aromatic plants.

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• Hybrid seed revolution: India should go for hybrid seed revolution. Open pollinated varieties are not productive and can’t support the large population of India, so there should be a shift from open pollinated varieties to hybrid varieties. For this, farmers should be made aware of the benefits of using hybrids over open pollinated varieties. It will also result in increased SRR as hybrid seeds can’t be used every year, they have to be replaced.

• Promotion of GM crop seed varieties: The GM crops are highly productive and profitable. It is visible from the fact that in spite of a large number of controversies, the area under Bt cotton; the only GM crop in India, is increasing continuously. Also for the highly growing population of India, it can prove as the only support for fulfilling the needs of food in future.

• Formation of separate committees for checking the entry of illegal seeds in the market: Seed Association of India should make committees for different states specifically for checking and controlling the entry of illegal crop seeds in the market. The committees should also include persons from private sector.

• Export to nearby countries: As the seed production cost in India is low, seed export to nearby countries through roads will reduce the transportation cost and thus, will lead to profitability.

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ANNEXURES

Seed Market of various vegetables:

Crop

area

(000ha)

seed

market

in tons

value

(mRs)

area

(000ha)

seed

market

in tons

area

(000ha)

seed

market in

tons

area

(000ha)

seed

market

in tons

01-02 02-03 03-04 04-05

Beetroot 5.4 40.6 39.0 5.5 41.2 5.6 41.8 5.7 42.5

Bittergourd 154.5 386.3 294.0 159.1 397.8 163.9 409.8 168.8 422.1

Bottlegourd 183.9 643.8 185.3 189.4 663.1 195.1 683.0 201.0 703.4

Brinjal 710.3 355.2 229.9 738.7 369.4 768.3 384.1 799.0 399.5

Cabbage 205.0 102.5 333.2 210.1 105.1 215.4 107.7 220.8 110.4

Capsicum 94.0 28.2 115.7 96.3 28.9 98.7 29.6 101.2 30.4

Carrot 196.8 984.0 688.8 201.7 1008.6 206.8 1033.8 211.9 1059.7

Cauliflower 630.1 472.6 408.3 655.3 491.5 681.5 511.1 708.8 531.6

Chilli 988.9 494.5 541.9 1043.3 521.7 1100.7 550.4 1161.2 580.6

Clusterbeans 74.4 1859.0 142.4 75.8 1896.1 77.4 1934.1 78.9 1972.7

Coriander 82.0 984.0 295.2 84.1 1008.6 86.2 1033.8 88.3 1059.7

Cucumber 381.3 1144.0 810.4 396.6 1189.8 412.5 1237.4 428.9 1286.8

Dolichos bean 15.2 609.0 149.7 15.5 618.1 15.7 627.4 15.9 636.8

Frenchbeans 49.2 2949.2 144.3 50.4 3023.0 51.6 3098.5 52.9 3176.0

Knolkhol 85.7 85.7 25.2 87.4 87.4 89.1 89.1 90.9 90.9

Muskmelon 136.0 339.9 278.8 140.0 350.1 144.2 360.6 148.6 371.4

Okra 341.5 4268.2 970.8 355.1 4438.9 369.3 4616.4 384.1 4801.1

Onion 207.9 2598.4 707.3 218.3 2728.4 229.2 2864.8 240.6 3008.0

Peas 118.7 8902.4 436.0 123.4 9258.5 128.4 9628.8 133.5 10014.0

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Pumpkin 12.1 66.6 19.8 12.4 68.3 12.7 70.0 13.0 71.7

Radish 143.5 1148.0 167.4 147.1 1176.7 150.8 1206.1 154.5 1236.3

Ridgegourd 166.6 666.3 135.9 170.7 682.9 175.0 700.0 179.4 717.5

Spongegourd 33.5 133.9 125.3 34.5 137.9 35.5 142.1 36.6 146.3

Tomato 891.7 312.1 554.6 918.4 321.5 946.0 331.1 974.4 341.0

Watermelon 366.1 915.2 327.9 380.7 951.8 396.0 989.9 411.8 1029.5

Others 300.0 280.0 200.0 180.0

Total 6274.1 30489.3 8127.0 6790.0 31565.1 6955.5 32681.4 7190.8 33839.9

Source: www.seedassociationofindia.com

DISTRIBUTION OF CERTIFIED /QUALITY SEED OF FIELD CROPS (Qtty in 000 tons)

CROP 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05

CEREALS

Wheat 151.0 182.0 204.0 224.0 232.0 250.0 269.0 282.0 295.8 319.5 329.0 338.9 349.1

Paddy 143.0 136.0 146.0 154.0 166.0 170.0 170.0 183.0 197.2 213.0 219.4 225.9 232.7

Maize 17.0 14.0 14.0 16.0 19.0 20.0 20.0 24.0 28.0 30.2 31.1 32.1 33.0

Jowar 39.0 37.0 33.0 27.0 27.0 26.0 24.0 29.0 33.3 36.0 36.7 37.8 38.9

Bajra 17.0 17.0 16.0 17.0 17.0 17.0 17.0 18.0 19.1 20.6 61.9 62.5 63.1

Ragi 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.1 2.3 2.3 2.3 2.3

Barley 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.1 2.3 2.3 2.3 2.3

Others 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.5 3.8 3.9 3.9 4.0

Sub Total 371 392.0 419.0 444.0 467.0 489.0 507.0 543.0 581.1 627.6 686.6 705.8 725.5

PULSES

Gram 10.0 11.0 11.0 12.0 14.0 18.0 21.0 22.0 24.2 26.1 26.7 27.2 27.7

Lentil 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.1 2.3 2.3 2.3 2.4

Peas 3.0 2.0 3.0 3.0 3.0 4.0 4.0 4.0 4.8 5.2 5.3 5.4 5.6

Black gram 8.0 8.0 8.0 7.0 11.0 9.0 10.0 11.0 11.8 12.7 13.0 13.3 13.5

138


Moong 6.0 8.0 7.0 6.0 7.0 8.0 8.0 8.0 8.5 9.2 9.3 9.5 9.6

Red gram 5.0 5.0 6.0 6.0 6.0 8.0 8.0 9.0 9.6 10.4 10.5 10.7 10.9

Cowpea 1.0 2.0 2.0 1.0 1.0 - 1.0 2.0 2.0 2.2 2.2 2.3 2.3

Others 1.0 - - - - - - 1.0 1.1 1.1 1.1 1.1

Sub Total 34.0 37.0 38.0 36.0 43.0 49.0 54.0 58.0 63.0 68.0 69.3 70.6 72.1

OILSEEDS

Groundnut 70.0 67.0 70.0 69.0 73.0 57.0 62.0 63.0 65.0 70.2 72.3 73.1 73.9

Mustard 8.0 8.0 8.0 9.0 10.0 10.0 10.0 11.0 13.0 14.0 14.5 14.8 15.0

Sunflower 6.0 7.0 7.0 8.0 6.0 8.0 8.0 9.0 10.0 10.8 11.1 11.3 11.6

Soybean 19.0 26.0 30.0 36.0 31.0 19.0 20.0 20.0 30.0 32.4 33.4 34.0 34.7

Castor 2.0 2.0 2.0 3.0 3.0 2.0 2.0 2.0 2.5 2.7 2.8 2.8 2.9

Sub Total 105.0 110.0 117.0 125.0 123.0 96.0 102.0 105.0 120.5 130.1 134.0 136.1 138.1

FIBRES

Cotton 19.0 19.0 20.0 23.0 29.0 26.0 27.0 40.0 65.0 96.0 99.8 102.8 105.9

Jute 2.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0 3.5 3.8 3.9 4.0 4.1

Mesta - - - - - 2.0 2.0 2.0 2.2 2.4 2.4 2.5 2.5

Sub Total 21.0 21.0 22.0 25.0 32.0 31.0 32.0 45.0 71.0 102.5 106.5 109.6 112.9

Potato 52.1 55.0 58.6 61.9 65.3 65.4 68.3 72.1 81.0 85.0 85.9 88.4 91.1

Vegetables 29.3 31.0 33.0 28.8 30.2 33.7 34.9 36.8 36.8 38.2 39.3 40.5 41.7

Sub Total 81.4 86.0 91.6 90.7 95.5 99.1 103.2 108.9 117.8 123.2 125.2 129.0 132.8

Sudan sorghum

Grand Total 612 646 688 721 761 764 798 860 953 1051.4 11 21.6 1151.1 1181.4

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Estimated size of the domestic market for seed in selected countries (in USD million)

(updated in July 2007)

Country Size of domestic

market Country

Size of domestic

market

USA 7,080 Romania 120

China 4,000 Chile 120

France 1,915 Serbia & Montenegro 120

Japan 1,500 Nigeria 120

Brazil 1,500 Finland 103

India 1,300 Austria 100

Germany 1,000 New Zealand 98

Argentina 850 Slovakia 90

Italy 670 Switzerland 90

Canada 550 Paraguay 70 Russian Federation 500 Tunisia 70

Korea 400 Uruguay 70

Australia 400 Bangladesh 60

Mexico 350 Portugal 60

Taiwan 300 Ireland 60

Spain 300 Iran 55

Poland 260 Israel 50

United Kingdom 257 Kenya 50

Turkey 250 Colombia 40

South Africa 250 Bolivia 35

Netherlands 208 Zimbabwe 30

Czech Republic 200 Peru 30

Hungary 200 Slovenia 30

Denmark 170 Saudi Arabia 18

Morocco 160 Zambia 15

Greece 160 Ecuador 12

Sweden 155 Malawi 10

Egypt 140 Dominican Republic 7

Belgium 126 Uganda 6

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Total = 26,890 *

* This total represents the sum of the commercial seed markets of the listed countries. The commercial world seed market is assessed at approximately US$ 34 billion.


Seed Exports (FOB) of Selected Countries, 2005 (in USD million)

Country Agricultural Seeds

Horticultural Seeds Total

USA 618 304 922

Netherlands 127 557 784

France 510 178 688

Germany 313 27 340

Canada 186 29 215

Denmark 141 37 178

Italy 115 56 171

Chile 128 43 171

Belgium 119 4 123

Mexico 100 9 109

Hungary 100 6 106

Japan 23 69 92

Spain 53 25 78

Australia 62 11 73

Israel 3 59 62

China 32 29 61

Austria 57 2 59

Argentina 45 11 56 Brazil 44 8 52

United Kingdom 30 19 49

Poland 39 3 42

South Africa 35 4 39

New Zealand 20 15 35

Sweden 30 5 35

141


Czech Republic 28 5 33

Turkey 26 6 32

Thailand 2 24 26

Switzerland 22 2 24

Ukraine 18 0 18

Korea 1 16 17

India 7 9 16

Greece 13 3 16

Slovakia 16 0 16

Guatemala 8 6 14

Taiwan 2 10 12

Peru 3 9 12

Russian Federation 8 2 10

Romania 9 1 10

Latvia 8 1 9

Costa Rica 1 7 8

Portugal 4 4 8

Lithuania 7 1 8

Ireland 7 0 7

Kazakhstan 7 0 7

Moldova 6 0 6

Slovenia 4 2 6

Kenya 5 0 5

Pakistan 2 3 5

Serbia & Montenegro 4 1 5

Tanzania 0 5 5

Vietnam 1 3 4

Croatia 4 0 4

Colombia 3 0 3

Uruguay 3 0 3

Luxemburg 3 0 3

Morocco 0 2 2

Egypt 2 0 2

Bulgaria 2 0 2

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Bolivia 2 0 2 Iran 2 0 2

Venezuela 1 0 1

Georgia 1 0 1

TOTAL 3172 1632 4904


Seed Imports (FOB) of Selected Countries, 2005 (in USD million)

Country Agricultural Seeds

Horticultural Seeds Total

USA 339 167 506

Mexico 247 125 372

France 257 75 332

Netherlands 156 173 329

Spain 179 126 305

Germany 257 44 301

Italy 170 101 271

Canada 158 52 210

United Kingdom 97 37 134

Belgium 106 23 129

Japan 72 55 127

Poland 86 24 110

Russian Federation 69 40 109

Greece 69 18 87

China 43 38 81

Hungary 63 14 77

Austria 52 7 59

Ukraine 43 11 54

Turkey 20 34 54

Switzerland 42 10 52

Denmark 38 13 51

Brazil 36 14 50

Czech Republic 45 4 49

143


Korea, Republic of 17 27 44

Romania 36 8 44

Australia 25 16 41

Saudi Arabia 30 10 40

Portugal 28 11 39

Argentina 30 9 39

Slovakia 33 3 36

Egypt 10 20 30

Sweden 25 4 29

Morocco 16 13 29

Chile 22 4 26

South Africa 16 9 25

India 3 18 21

Israel 9 12 21

Iran 13 8 21

Pakistan 9 11 20

Taiwan 2 17 19

Uruguay 17 2 19

Tunisia 13 6 19

Slovenia 14 4 18

Finland 13 5 18

Venezuela 10 8 18

Ireland 14 3 17

Croatia 10 7 17

Vietnam n.a. n.a. 17

Algeria 4 13 17

Bulgaria 13 4 17

Belarus 12 3 15

Serbia & Montenegro 10 4 14

Syria 7 7 14

Colombia 10 4 14

Thailand 1 12 13

New Zealand 5 8 13

Lithuania 10 2 12

144


Jordan 4 7 11

Norway 6 5 11

Kenya 7 4 11

Paraguay 11 0 11

Hong Kong, China 1 9 10

Guatemala 5 4 9

Bosnia & Herzegovina 6 2 8

Philippines 5 3 8

Ecuador 5 3 8

Yemen 2 6 8

Peru 6 2 8

Moldova 6 2 8

Latvia 7 1 8

Costa Rica 3 4 7

United Arab Emirates 4 3 7

Lebanon 4 3 7

Angola 1 5 6

Bolivia 6 0 6

Luxemburg 6 0 6

Panama 5 1 6

Uzbekistan 2 4 6

Senegal 2 3 5

Kazakhstan 3 2 5

Iraq 2 2 4

Libya 0 4 4

Zimbabwe 3 1 4

Cuba n.a. n.a. 4 Macedonia, FYR 1 2 3 Estonia 2 1 3

Albania 1 1 2

Burkina Faso 0 2 2

Ethiopia 0 2 2

Kuwait 0 2 2

Dominican Republic 0 2 2

145


Cyprus 1 1 2

Azerbaijan 0 1 1

Sudan 0 1 1

Malta 0 1 1

Cameroon 1 0 1

TOTAL 3249 1593 4863


146


QUESTIONNAIRE ON INDIAN SEED INDUSTRY

SECTION-I

1. Name of the company official:____________________________________________

2. Designation of the official: _______________________________________________

3. Name of the seed company:______________________________________________

4. What do you think would be the size of Indian seed market(approx): Rs. _______Crores

5. What is your estimate of the share of Indian seed industry in Global seed market:

_______%

6. Could you pl. indicate to us your estimate on the growth rate of Indian seed industry

over the last three years:________% CAGR

7. What do you think is the market size of different crop seed segments in India(according

to your estimates):

S. No. Crop Seed Segment Market size (Rs. Crores)

1 Cereal seeds

2 Millet seeds

3 Forage crop seeds

4 Oil seeds

5 Vegetable seeds

6 Fibre crop seeds

147


8. What is your estimate of the market size of different crop seeds in India(according to

estimates):

S. No. Crop seed segment Crop Market size

(Rs. Crores)

1 Cereal seeds Paddy

Wheat

Maize

2 Millet seeds Pearl millet

Finger millet

3 Forage crop seeds Sorghum

4 Oil seeds Soybean

Groundnut

Sunflower

Safflower

Mustard

Castor

5 Vegetable seeds Tomato

Chilli

Capsicum

Cauliflower

Cabbage

148


Brinjal

Okra

Carrot

Radish

Bottle Gourd

Bitter Gourd

6 Fibre crop seeds Cotton

9. What do you think is the share of Public sector and Private sector in the Indian seed

market:

S. No. Crop seed segment Share(%) of

Public sector

Share(%) of

Private sector

1 Cereal seeds

2 Millet seeds

3 Forage crop seeds

4 Oil seeds

5 Vegetable seeds

6 Fibre crop seeds

149


10. What is the awareness level of farmers (about the new varieties/hybrids) in different

regions:

(Please rate awareness on a scale of 1 to 4, 1-highly aware, 2- somewhat aware, 3-less

aware, 4-not aware)

Awareness level of farmers

(Please tick)

S. No.

Region 1

Highly

aware

2

Somewhat

aware

3

Less

aware

4

Not

aware

Reason

1 North

2 South

3 East

4 West

11. Which product attributes are preferred by the farmers in different crop seed segments:

S. No. Crop seed segment Crop Product attributes preferred

by the farmers

1 Cereal seeds

2 Millet seeds

150


3 Forage crop seeds

4 Oil seeds

5 Vegetable seeds

6 Fibre crop seeds

12. According to you what do you think the future growth rate(5 years) of Indian seed

industry would be :_____% CAGR

151


13. Could you pl. indicate the key drivers for the growth of Indian seed industry:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. _________________________________________________________________

14. Can you pl. indicate the key segments of the future:

(Please rate them as per importance of the segments in the future on a scale of 1 to 5,

1-very important, 2-Important, 3- somewhat important, 4-less Important, 5-not imp:

Rating

(Please tick) Rating(Please tick) S.

No.

Crop

Segment

1 2 3 4 5

S.

No.

Crop

Segment

1 2 3 4 5

1 Cotton 6 Soybean

2 Maize 7 Sunflower

3 Pearl

Millet

8 Mustard

4 Paddy 9 Castor

5 Wheat 10 Vegetables

152


SECTION-II

1. Which are the major areas of operation of the company(Please tick the appropriate

options):

Pan India

North India

South India

West India

East India

2. Which are the major crop seed segments dealt by the company:

S. No. Crop seed segment dealt by the company

1

2

3

4

3. What is the approx turnover of the company: Rs. _______________Crore

4. What has been the average growth rate of the company(past 5 years):_______%CAGR

153


5. Which are the most successful seed varieties/hybrids of the company(according to sales

volume):

S. No. Name of the crop Variety

1

2

3

4

6. Which are the most successful seed varieties/hybrids of the company(according to sales

revenue):

S. No. Name of the crop Variety Revenue Share (%

of total revenue)

1

2

3

4

5

7. Who according to you are the major players in different crop segments(please name

them):

S. No. Crop seed segment Name of the crop Major Players Reasons

1 Cereal seeds

154


2 Millet seeds

3 Forage crop seeds

4 Oil seeds

5 Vegetable seeds

6 Fibre crop seeds

8. What is the supply chain of the company(Please tick the appropriate option):

a. Company Distributor Dealer Farmer

b. Company Dealer Farmer

c. Any other,(Please specify):_________________________________________

9. If there is distributor in the supply chain, then please mention the following(approx):

a. Margin(%) from company to distributor:_____________________________

b. Credit period to distributor:________________________________________

c. Margin(%) from distributor to dealer:________________________________

d. Credit period to dealer:____________________________________________

e. Company’s contribution in margin(%) from distributor to dealer:________

155


10. If distributor is not there in the supply chain, then please mention the following:

a. Margin(%) from company to dealer:_________________________________

b. Credit period to dealers:___________________________________________

11. Do you give different margins (for trade / Channel) for different crops:

Yes No

12. If yes, please specify the margin(approx. %) given for different crops:

S. No. Crop Margin (%)

1

2

3

4

5

13. What are the problems/key issues in the supply chain:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. _________________________________________________________________

14. What are your suggestions for sorting out the problems in the supply chain:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. __________________________________________________________________

156


15. Which promotional tools are used by the company(for farmers):

a. Field demonstration

b. Advertisement through TV/radio/newspaper

c. Pamphlets, hoardings and other printed material

d. Any other, (Please specify):_______________________________________

16. Can you pl. rate the effectiveness of various promotional measures:

(Please rate the effectiveness of promotional measures on a scale of 1 to 5, 1-very effective, 2-

effective, 3- somewhat effective, 4-less effective, 5-not effective):

Rating(Please tick)

S.

No. Promotional measure 1

Very

effective

2

Effective

3

Somewhat

effective

4

Less

effective

5

Not

effective

1 Field demonstration

2 Advertisement through TV/radio

3 Advertisement through newspaper /

magazines

3 Pamphlets, hoardings and other

printed material

4 Any other, (Please specify):

________________________

17. Do you face specific regulations in specific states:

Yes No

157


18. If yes, then what are those specific regulations faced in specific states:

S. No. Regulation faced State

1

2

3

19. Do you export seeds:

Yes No

20. If yes, then which are the countries where seeds are exported:

S. No. Country Name of the crop Variety exported

1

2

3

21. If No, then what are the reasons for not entering the exports business:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

22. Do you have tie ups/technical collaboration with foreign companies:

Yes No

158


23. If yes, then what are the names of the companies with which you have tie

up/collaboration:

S. No. Name of the company Country Type of tie up/

collaboration

1

2

3

24. Do you have any plans to expand business to other countries:

Yes No

25. If yes, then what are the names of the countries where you are planning to expand the

business :

S. No. Name of the country

1

2

3

26. Which is the major focus area of the company for future growth:

a. R&D

b. Marketing

c. Acquisition

d. Any other, (Please specify):_________________________________________

159


27. Which are the major areas where the company should concentrate to increase the sales:

(Rate them on the basis of importance, 5-most important, 4-important, 3-somewhat important,

2- less important, 1-not important):

Rating(Please tick)

S. No.

Areas of concentration 1

Not

important

2

Less

important

3

Somewhat

important

4

Important

5

Most

important

1 R&D investment

2 Distribution network

3 Sales Promotion

4 Extension services

5 Any other, (Please specify):

______________________

160


SECTION-3

1. What are your views on the:

a. GM seeds:______________________________________________________________

___________________________________________________________________________

_________________________________________________________________________

__________________________________________________________________________

b. Consolidation in Indian seed industry:_____________________________________

___________________________________________________________________________

_________________________________________________________________________

2. Which are the crop seed segments with high future growth potential in India:

S. No. Crop seed segment with high

future growth potential Reason

1

2

3

4

5

3. Is the Indian seed industry competitive globally:

Yes No

161


4. If Yes, then what are the factors which make Indian seed industry competitive

globally(Please tick the appropriate option):

a. Quality

b. Branding strategy

c. High product range

d. Pricing

e. Any other, (Please specify):_________________________________________

5. If no, then what steps should be taken to make Indian seed industry globally

competitive (Pl. tick):

a. Emphasis on R&D

b. Policy reforms

c. Better advertising & marketing strategy

d. Any other, (Please specify):_________________________________________

6. Rate the competitiveness of Indian seeds in Global seed market:

(Rate from 1-5, 5-highly competitive, 4-competitive, 3-somewhat competitive, 2- less

competitive, 1-not competitive)

Rating(Please tick)

S. No. Crop seed

segment 1

not

competitive

2

less

competitive

3

somewhat

competitive

4

competitive

5

highly

competitive

1 Cereal

seeds

2 Millet

seeds

3 Forage

crop seeds

4 Oil seeds

5 Vegetable

seeds

6 Fibre crop

seeds

162


7. If no, then what are the reasons for not being competitive:

S. No. Crop seed segment Reasons for not being competitive

1 Cereal seeds

2 Millet seeds

3 Forage crop seeds

4 Oil seeds

5 Vegetable seeds

6 Fibre crop seeds

8. Which regulatory policies are affecting the Indian seed industry:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. _________________________________________________________________

9. What are your suggestions for making changes in the regulatory policies affecting

Indian seed industry:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. _________________________________________________________________

10. What are the key issues and challenges before Indian seed industry:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. _________________________________________________________________

163


11. What are the opportunities in Indian seed industry:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. _________________________________________________________________

12. Which are the key constraints in efficient operation of Private seed sector in India(Please

tick the appropriate option):

a. Delay in giving approval to new varieties by Licensing authority

b. Wide distribution network of Public seed sector

c. Any other,(please specify): ________________________________________

13. What are the future trends in Indian seed industry:

a. _________________________________________________________________

b. _________________________________________________________________

c. _________________________________________________________________

d. _________________________________________________________________

14. Suggestions:____________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

15. Please suggest if we can quote your name in the report for the views given by you about

the Seed industry:

Yes No

164


REFERENCES

www.agricoop.nic.in

www.worldseed.org

www.seedassociationofindia.com

www.indiaseeds.com

www.planningcommission.nic.in

www.seedquest.com

www.indiastat.gov.in

www.usda.gov

www.seednet.gov.in

www.fao.org

www.icrisat.org

www.cottoncorp.gov.in

Mr. R. K. Sinha, Executive Director, National Seed Association of India

Websites of Seed companies

Documents

Namrata Yes Bank Indian_seed_industry