India Country Report 2

7/28/2019 India Country Report 2

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The Indian Seed Industry

Paresh VermaGeneral Secretary

National Seed Association of India

Country Report



Contents1. Indian agricultural scenario

2. Evolution of seed industry

3. Current status of Indian seed industry

4. Impact of new technology5. Regulatory environment

6. Challenges and opportunities7. Summary



Indian Agricultural Scenario

• Indian economy has grown steadily –7% inlast 10 years; 9% in last 3 years

• Low and inconsistent growth in agriculturalsector – it is dependent on the monsoon

• Agriculture contributes 18% to GDP but 60%

population lives off agriculture• Mostly small marginal farms with low inputs

• Yield levels are generally much lower than

world averages• Total cropped area is 197 million hectares

• Highest area under irrigation (40%)



Cotton

Corn

Millet

Vegetables

Sunflower

Paddy

Wheat

Sugarcane

Potato

Groundnut

Soyabean

Gram

Mustard

Tur

Sorghum (Kh)

Sorghum (Rabi)

Others

Total Area is 196.90 Million Hectares.

Crop Area (M Ha)

Cotton 9

Corn 7

Millet 9

Vegetables 7

Sunflower

Sorghum (Kh)

1.4

4

Paddy 43

Sorghum (Rabi) 5

Wheat 26.4

Tur 3.4

Mustard 5.3

Gram 6.4Soyabean 8.1

Groundnut 6.6

Potato 1.3

Sugarcane 4.3

Others 49.7

Total Cropped Area

Hybrid crops



Indian Agricultural Scenario• Green revolution helped India gain self

sufficiency in food production

• Agricultural production increased from 50million tons to 227 million tons; however,growth flat over last 10 years

• Population, currently at 1.15 billion, iscontinuing to increase

• Tremendous pressure to increase agriculturalproductivity

• New technologies must be deployed

• Seed industry will continue to play a key role



Agriculture Production &

Quality Seed Distribution

Year Food Grain

Production(million tonnes)

Cotton

Production(million

bales

Oil Seeds

Production(million tons)

Quality

seedsdistributed

(thousandtons)

1950-51 50.82 3.04 5.16 -1960-61 82.02 5.60 6.98 -

1970-71 108.42 4.76 9.63 50

1980-81 129.59 7.01 9.37 3501990-91 176.39 9.84 18.61 571

2000-01 195.92 9.65 18.40 854

2007-08 227.30 31.00 28.82 1100

6



Contribution of the privatesector in hybrid seed market (2008)

0%

10%20%

30%40%

50%60%

70%

80%90%100%

C o r n

C o t t o n

M i l l e t

S o r g h u m

S S G

S u n f l o w e r

R

i c e

C

h i l l i

T o m

a t o

W / m e l o n

G o u

r d s

B r i n j a l

O

k r a

Private bred

Public bred

Field crops Vegetable crops



Evolution of the Indian

Seed Industry

• Key milestones

– National Seed Corporation, 1963 – Seed Act, 1966, Seed Rules, 1968

– National Seed Projects Phase I (1975)

Phase II (1981)

Phase III (1988)• Supported by World Bank

• 13 State Seed Corporations were established

– New Seed Policy, 1988



Post-NSP 1988

Seed industryboomed as a result

of several Govt.

initiativesForeign direct

investment allowedand encouraged

Imports of improvedvarieties and

breeding lines

liberalized

Trade regulations

liberalized

Current status

Private sector

accounts for 80%turnover in seed

Almost 1/3companies have a

global technology/financial partner

Private seed

companies are

spending 10-12% of their turnover in R&D

R&D budget of

medium sized

companies is

growing @ 20% p.a.

1960s-1980s

Minimal private

sector partici-pation

R&D in publicdomain

Restrictions ongermplasm

exchange, foreign

ownership, etc.

Evolution of the Indian

Seed Industry



Current status• Indian seed market, estimated at US$1.1 billion,

is the 6th largest in the world

• It has grown @ 12% compared to <5% growth of global seed market

• Private sector not investing in self pollinated

crops to develop and promote new varieties• Seed replacement ratio continues to be low

– Large acres of self pollinated crops – rice, wheat,

legumes, etc. – Low hybrid adoption rates in most crops due tomarginal growing conditions and/or subsistencefarming



Current statusMedium and small sizedcompanies are making

investments in research andseed processing infrastructure



Current status• More than 40 seed companies have Govt.

recognition for their R&D units• Several Indian companies have introduced GM trait intheir germplasm

• Indian companies are investing in innovative

biotechnology research



Field crops: Hybrid

seed market

Cotton

Corn

Rice

Millet

Sunflower

Kh Sorghum

SSG

> 9530,000SSG

> 955,000Kharif sorghum

> 956,500Sunflower

4315,000Millet

< 318,500Rice

4765,000Corn

8023 million*Cotton

%Hybridization

Market size(MT)

Crop

* packets of 450 g

Crop wise market share(in million US $; total-585)

**includes trait value

Cotton**(350)

Corn(115)

Rice(45)



40110%199Rice

8045%6545Corn

3065%2314Cotton

Est. salein 2013

% inc. in3 years

Est. salein 2008

Est. salein 2005

Crop

Est. sale in ‘000MT (corn, rice) and million packets (cotton)

Growth trend of key fieldcrops’ hybrid seed market



Tomato

Okra

Chilli

Cauliflower

Cabbage

Gourds

W melon

Cucumber

Egg plant

Others

325Cucumber

4070Water melon

825Egg plant

15130Gourds

8550Cabbage

1140Cauliflower

1440Chilli

23900Okra

2050Tomato

%

Hybridization

Market

size (MT)

Crop

Crop wise market share(in million US $; total-110)

Vegetable crops:

Hybrid seed market

Tomato

(27)

Okra(18)

Chilli(16)

Cauliflower (12)

Cabbage(9)

Gourds(8)

W melon

(7)



Growth trend of vegetablehybrid seed market



Growth trend of vegetablehybrid seed market



Impact of new technology• Bt cotton is the only GM technology approved

in India

• First three hybrids of Bt cotton were approvedin 2002

• A total of 4 events have been approved

– Bollgard (Cry1Ac) from Monsanto – Event 1 (Cry1Ac) from JK Agrigenetics

– Fusion Bt (Cry1Ac+Cry1Ab) from Nath Biogene

– Bollgard II (Cry1Ac + Cry2Ab) from Monsanto• More than 150 Bt cotton hybrids are now

available for the farmer to choose from



Impact of new technology• Income of farmers growing Bt cotton hasgone up by Rs. 10,000 to Rs. 20,000 per

hectare• Pesticide use has decreased significantly

reducing health hazards to farm workers

• Increased access of Bt cotton farmers tosocial benefits



Impact of new technology• More than 80% of the country’s cottongrowing area is under Bt cotton

• Cotton production has increased from 12.5million bales in 2002-03 to 31 million bales in2007-08

• India has become the second largestproducer and second largest exporter of cotton in the world



Regulatory framework – Seed Act, 1966 and Seed Control Order, 1983

(Seeds Bill 2002 is pending Parliamentary Approval)

– Protection of Plant Varieties and Farmers’Rights Act, 2001

– Environment Protection Act, 1986

– Biological Diversity Act, 2002

– Destructive Insects and Pests Act, 1914 –Plants, Fruits and Seeds (Regulation of import in

India) Order 1989 – Cotton Seed Acts in some states

– Export/Import policies and Regulations



Regulatory Challenges

• New Seed Bill:+ Intends to improve the regulatory framework to

encourage the growth of the seed industry+ Self certification through registration of seedproducers and accreditation of seed testing labs

- Registration after 2 years of VCU testing

- No provisional registration of transgenichybrids/varieties

- Duplication of agronomic testing of transgenichybrids/varieties under EPA and New Seed Bill

- Performance label and compensation

- Price Control

- Complete exemption of farmers form the operation

of the Seed Bill



Regulatory Challenges• PPV & FR Act, 2001:

+ Good beginning to protect the rights of thebreeders

- Does not conform to UPOV, 1991- Gives farmers the right to sell unbranded seed of

protected variety

- Allows “innocent infringement” by farmers- Compulsory licensing and compensation

- Security of the material during field testing for DUS still to be established

- Efficacy of enforcement still needs to beestablished

- Specific issues still need to be resolved to addressthe concerns of the industry (e.g. extanthyrbids/varieties)



Regulatory Challenges• Biodiversity Act, 2002

– Restricting exchange of germplasm even of those cropswhich are covered in the ITPGR

• Price Control (through State Acts) – Arbitrary price controls based on political motivations

– Disincentive to invest in research and infrastructure

– Lead to cost cutting even in critical processes – couldaffect seed quality adversel

• Export/Import regulations – Inconsistent and politically motivated for commercial

seed – NBPGR retains a sample of seed incase of germplasm

imports

– Export of germplasm/research material not allowed inmany crops



Productivity challenges• Small marginal farmers with lack of

awareness about new technology

• Poorly managed or non-functional Govt.

extension systems• Availability of institutional credit and crop

insurance

• Last mile gap (in remote areas) in thedelivery / distribution channels

• Restricted seed supplies due to negative

impact of policy



Increasing risk of drought

Source: CICERO

Dryness index observed in 2003 Dryness index projected for 2050



Productivity challenges

• Abiotic stresses

– Drought• Low or erratic rainfall in rainfed situations

• Light soils with poor water holding capacity

• Inability to irrigate enough or on time

– Water logging• Poor drainage

• Excessive rainfall

– Sub optimal temperatures – Saline soils

– Nutrient deficiencies



• Biotic stresses

– Fungal, Bacterial andViral diseases

– Sucking and chewinginsect pests

• Sub optimal agronomy• No or improper use of

fertilizer

• Sub optimal croppingsystems

• Poor weedmanagement

Productivity challenges



Non-GM applications

of biotechnology

Coefficient

0.30 0.47 0.65 0.82 1.00

10MW

1

22921723612131441811310155

8719201621

• Use of Molecular markers – Stacking of traits

– Increasing breeding gains

– Accelerating product developmentcycles

– Quality assurance

– Protection of IP

• Functional genomics

• Other tools viz. Doubled haploid,

etc.



GM applications

of biotechnology• Success achieved

– Bollworm resistance in cotton• Other traits of importance

– Weed management

– Insect resistance in other crops

– Nutritional enhancement

– Disease resistance

– Drought tolerance

– Nutrient stress tolerance

– Yield enhancement

Drought

NUE

Biomass

HT



Technologies under

development in IndiaCrop GM Trait(s)

Cabbage insect resistanceCastor insect resistance

Cauliflower insect resistance

insect resistance

herbicide toleranceinsect resistabce

herbicide tolerance

Eggplant Insect resistance

Groundnut disease resistanceMustard male sterility

Okra insect resistance

Potato disease resistance

Rice insect resistanceTomato disease resistance

Corn

Cotton



Key growth drivers• Introduction of new technology

• Increased hybrid adoption in all vegetable

crops but esp. tomato, okra and chilli• Increased hybrid adoption in rice and corn

• Improved agronomy in cotton

• Investment to innovate and create value for the farmers



Way forward• Continued focus on customer requirements

– Product fit

– Economic benefit – Freedom to choose

• Conducive regulatory environment

– Minimal regulation and compliance – Freedom to price based on ‘value to

customers’

– Harmonization of various laws and Uniformenactment of central laws across all states

– Encouragement, through financial incentives,

for investment in infrastructure



Way forward

• Increased investment in agriculturalresearch

– Public sector – for basic research – Private sector for applied research

• Encourage R&D investments in private

sector – Stronger IPR regulations

– Equitable sharing of benefits to allstakeholders to ensure recovery of valueadded through intensive research

– Financial incentives



Way forward

• Strengthening our education systems toensure adequate availability of plant breeders

• Capacity building especially to deal with theregulatory requirements of the new technology

• Create successful public private partnerships

– Complementary in nature with no overlaps

– Clearly defined objectives and milestones

– Equitable resource and benefit sharing

– Based on mutual respect for each others’capabilities

– Clear agreement on IP issues



Public private partnership

BasicGermplasmimprovement

Developmentof inbredlines

Developmentof Hybrids

Seedproduction &marketing

Public sector

Private sector

ICRISAT’s hybrid parent development consortia(Pearl millet, Sorghum, Pigeon pea)

IRRI’s hybrid rice development consortium

Conventional breeding:



Public private partnership

Discoveryresearch

Technologydevelopment

Biosafetyevaluation /deregulation

Breeding &productdevelopment

Public sector Private sector

Biotechnology:

Seedproduction& marketing

TransgenicsMolecular marker technologies (no bio-safety involved)



Summary

• Indian seed industry has evolved to become thesixth largest in the world

• It is poised to grow at a rate faster than theglobal rate (huge opportunity to increase SRR)

• It has made tremendous contribution toincrease productivity through development of superior hybrids

• It is investing in research and infrastructure• It has spearheaded the introduction of new

technology (Bt cotton)



Summary

• Indian seed industry needs policy support tomake even bigger contributions in the future:

– Encouragement for investment in research andinfrastructure

– Minimal regulation and compliance

– Freedom to operate based on free market principles

– Streamlining of regulatory processes to acceleratethe development and introduction of new GMtechnology

• Robust PPP models are needed to better servethe farmers by removing the variousproductivity constraints through technologicalinterventions



Thank You

India Country Report 2

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