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SUMMER TRAINING PROJECT REPORT

ON

INDIAN SEED INDUSTRY

Submitted to:

Under the Supervision of

Mr. Sridhar V.
Submitted by:

Namrata Rawat PGPABM (2006-08)

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Namrata Rawat

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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Yes Bank Ltd.

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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

NIAM, Jaipur

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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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

TABLE OF CONTENTS
Abbreviations Executive summary Research Objectives and methodology 1. Introduction 1.1 Overview of Global Seed Industry 1.2 Overview of Indian Seed Industry 2. History of Indian seed industry 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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

7 8 9 10-17

18-19 20-22

3.3.1 Plant Variety Protection and Farmers Right Act, 2001 3.3.2 National Seed Policy 4. Structure of Indian seed industry 4.1.1 4.1.2 4.1.3 Public Private Public-Private 23-29

5. Crop seed description 5.1 Cereals 5.1.1 Hybrid Rice 5.1.2 5.2 Millets 5.2.1 Pearl Millet Hybrid Maize

30-73

5.3 Forage crops 5.3.1 5.4 Oilseeds 5.4.1 5.4.2 Sunflower Soybean Sorghum

5.5 Vegetables 5.6 Fibre crops 5.6.1 6 7 8


INDIAN SEED INDUSTRY | Yes Bank Ltd.

Cotton 74-92 93-128 129 130-131 132-135 136-145 146-163 164

Profile of Major Seed Companies Case Study: GM crops in India Issues and challenges in the Indian seed industry SWOT Analysis Recommendations Annexures Questionnaire References

9 10 11 12 13

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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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

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 cant 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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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

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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

10

WORLDS TOP 10 SEED COMPANIES BASED ON 2006 SEED REVENUES


Company Monsanto Dupont Syngenta Groupe Limagrain Land O' Lakes KWS AG Bayer Crop Science Delta & Pine Land (acquisition by Monsanto pending) Sakata DLF-Trifolium
Source: ETC Group

Country US US Switzerland France US Germany Germany US

Seed sales(US$ m) in 2006 4,028 2,781 1,743 1,035 756 615 430 418

Japan Denmark

401 352

INDIAN SEED INDUSTRY | Yes Bank Ltd.

The value of the overall commercial seed market was $22,900 million in 2006 (includes seeds purchased from public breeding programs).
Source: Context Network

11

SEED EXPORTS (US $ MILLION) IN 2005 Country USA Netherlands France Germany Canada Denmark Italy Chile Belgium Mexico Hungary India Others
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Seeds exports (US$ million) 922 784 688 340 215 178 171 171 123 109 106 16 1081 4904

Total
Source: www.worldseed.org

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

12

SEED IMPORTS (US $ MILLION) IN 2005 Country USA Mexico France Netherlands Spain Germany Italy Canada United Kingdom Belgium Japan Poland Russian Federation
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Seeds imports (US$ million) 506 372 332 329 305 301 271 210 134 129 127 110 109 21 1607 4863

India Others Total


Source: www.worldseed.org

13

CONSOLIDATION IN THE SEED INDUSTRY


Year Partner Companies
Monsanto and Mahyco

Nature of transaction
Monsanto acquires 26% stake in Mahyco

Transaction value
Rs 182 crore

Strategic interest

April 1998

Mahyco has strong dealer distributor network in India so Monsanto doesnt need to set up its own network and gets a ready team to promote its products into the country. 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. 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.

March 2002

Emergent Genetics Inc., USA and Paras Extra Growth Seeds Company Limited, Hyderabad, India

Acquisition of Paras by Emergent Genetics

US $25 million

December 2002

D up ont s P i on ee r Hi br e d Inte r na ti o na l Inc . a n d D e ng ha i Se e d G r ou p , Chi na Sa v i a SA ( hol di ng c om pa n y of Se m i ni s I nc .) a n d F ox Pa i ne a n d Com p a ny LL C Delta and Pine Land Company and Dow Agro Sciences Monsanto and Seminis

JVs Shangdong Denghai Pioneer Seeds Co formed Strategic Investment of Fox Paine through acquisition of Seminis shares Technical collaboration US $222 million

December 2002

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

January 2003

Delta Pine can bring transgenic technology with insect resistance to its commercial cotton varieties by sourcing it from Dow. $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. Emergent gives Monsanto a branded cotton seed presence that complements its germplasm development and licensing in its Cotton States business, forming a

March 23, 2005

Complete acquisition of Seminis by Monsanto Acquisition of Emergent Genetics

April 2005 Em e r g e nt G e ne ti c s a nd M onsa n t o

$300 million

14

businesses other than Emergent Genetics Vegetable A/S located in Denmark by Monsanto May 2007 Bayer Crop Science and US cotton seed company Stoneville of Monsanto Bayer Crop Science acquires US cotton seed company Stoneville of Monsanto Monsanto acquires Delta and Pine Land US-$ 310 million

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

The purchase of the US Stoneville business is an extension of the companys 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

$1.5 billion

July 2007

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Bayer crop Science Nunhems and Seed Ex (Korean vegetable seed company) Golden Seeds, Bangalore and Advanta India Ltd.

Acquisition of Seed Ex by Bayer Crop Science Nunhems Advanta India Ltd. is going to acquire Golden Seeds Rs 601 million and 175 million for inventory and receivables

Pending

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. 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. 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

15

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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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%.

16

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 Ajit Seeds Ltd. Ankur Seeds Pvt. Ltd. Emergent genetics India Pvt. Ltd. Ganga Kaveri Seeds Pvt. Ltd. Indo American Hybrid Seeds (India) Ltd. Krishidhan Seeds Ltd. Namdhari Seeds Ltd. Nirmal Seeds Pvt. Ltd. Nunhems Seeds Ltd.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

R&D Investment (Rs. Lakhs) 346 313 323 138 169 415 201 114 147 112 170 120

Rasi Seeds Ltd. Seminis Vegetables Seeds India Ltd. Tulsi Seeds Pvt. Ltd.
Source: DSIR Annual Report 2005-2006

17

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 1960s, 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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

18

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Breeders Seed Supply, 1986 Before 1986, the public sector institutions used to supply the breeders 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 breeders 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 breeders seeds available to

20

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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

21

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:


INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

22

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 60s, 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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: www.agricoop.nic.in

23

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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

24

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)

GOVT. OF INDIA

Allocation for production Production of Breeder seed Allocation for production Production of Breeder seed Lifting
ICAR INSTITUTES SAUs

ICAR

Allotment of Breeder seed

Indent of Breeder seed

NSC, SSCs, SFCI, etc

Certified seed production Certified seed production


DISTRIBUTORS

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Foundation seed production


AGENCIES

AGENCIES

Foundation seed to certified seed


FARMERS

Source: www.seednetindia.gov.in

25

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

WHOLESALER/ REGIONAL DISTRIBUTOR INDIAN SEED INDUSTRY | Yes Bank Ltd.

WHOLESALER/ REGIONAL DISTRIBUTOR

RETAILERS

RETAILERS

FARMER
SEED SUPPLY CHAIN

26

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

COLLABORATIONS OF SOME SEED COMPANIES

Seed company Nuziveedu Seeds

Organization ICRISAT

Type of partnership Seed parent development in Sorghum and Bajra Coordinated trials

ICAR

27

IARI CICR DMR DRR DOR NRC on Sorghum NBPGR ANGRAU, Hyderabad UAS, Dharwad TNAU, Coimbature JNKVV, Jabalpur PKV Akola PKV Rahmi PKV Parbhani PAU Ludhiana HAU, Hissar DBT (Min of S&T)

Germplasm exchange, Capacity building

Multi location trials, paid up trials, collaborative research projects, transfer of breeder seeds and technology

Multi location testing, large scale trials of GM crops Multi location testing, large scale trials as per Biosafety regulations On farm testing, foundation seed sale permit Indigenous trangenic technology Access to germplasm of Hybrid Bajra

INDIAN SEED INDUSTRY | Yes Bank Ltd.

GEAC (Mini E)

Ministry of Agriculture State Govts. NBRI Lucknow Mahyco ICRISAT

Texas A&M,

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Georgia University ICRISAT IARI Monsanto; Cornell University Pro Agro Seeds University of Agricultural Sciences, Dharwad Germplasm development, technology transfers, multilocation trials, development of value added trait Collaborative project Licensing Transgenic technology

College of Agriculture, Naigaon

Parent seed production, foundation seed production, hybrid seed production of cotton seed Expertise rice productivity improvement

DRR

Government of UP

Promotion of high yielding hybrid rice in the state

INDIAN SEED INDUSTRY | Yes Bank Ltd.

UP State Department of Agriculture

Product testing and demonstrations in various regions of UP

Source: Industry sources

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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 worlds total production. The area under hybrid rice in India is almost 1mha in 2006.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: USDA

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Source: FAO

In rice export, India ranks second after Thailand. SEED PRODUCTION OF RICE IN INDIA Breeder Seed Foundation Seed Certified Seed Production in (Quintals) in 2001-02 (Lakh Quintals) Quintals 2000-01 in 2001-02 1468 219294 35.48
So ur ce : w ww. i ndi as t a t . g o v . i n INDIAN SEED INDUSTRY | Yes Bank Ltd.

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 Hybrid V
(Transplant)

450.0 10.0 250.0 190.0

15.0 35.0 100.0

100 75 30

100 15 10

2359.44 15.00 233.33 2111.11

82333.3 1500.0 17500.0 63333.3

3362500 150000 1312500 1900000

V
(Broadcast)

31

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 Rice Variety/Hybrid/Line Coarse varieties Medium varieties Basmati varieties Rice Hybrid A line B line R line
S ource: www.seed net. gov.in

Sale Price (Rs/q) in 2006-07 2000 2400 3800 12500 3000 3000

SALE OF HYBRID RICE SEEDS

Year
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Seeds Sold (tonnes) 6,100 8,500 More than 12,000

2004 2005 2006

S ou r c e : I n du s tr y s o ur c e s

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HYBRID RICE SEED CONSUMPTION IN DIFFERENT STATES IN 2006

Hybrid Rice Seed Consumption (tonnes)

5,000 4,000 3,000 2,000 1,000 0 Uttar Bihar, Punjab & Gujarat, Pradesh Jharkhand Haryana A.P. & M.P. State

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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

70 123.8 50 315 15 71.2 645

14 86.8 112.5 13.8 11.9 239

Fertilizers and Manure Gibberellic Acid Labour Plant protection Miscellaneous Total input cost return

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Yield(kg/ha) Market price(US$/kg) Return to hybrid seed Return to by-product(male seed & straw) Gross Return Net return Unit cost of production(US$/kg)
Sou r c e : J a na i a h a nd H ossa i n , 2 00 0 ( F A O )

1250 1.0 1250 212.5

5950 0.1173 41.1

1462.5 817.4 0.516

739 500 0.040

NETWORK OF HYBRID RICE SEED PRODUCTION

NATIONAL STEERING COMMITTEE

INDIAN SEED INDUSTRY | Yes Bank Ltd.

TECHNOLOGY DEVELOPMENT Nucleus and Breeder Seeds

SEED PRODUCTION Foundation seeds and Certified Seeds

TECHNOLOGY TRANSFER

Extension NGOs Farmer Associations

Research Institutes Universities

Public seed companies Private seed companies

Source: FAO

34

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 2004 Andhra Pradesh 52 94(hybrid) 29 12 19 19.9 20 2.6 3.4 17.9 14 SRR(%) 2005 58 100(hybrid) 29 14 19 21.3 19 5.2 6.4 20.3 17

Karnataka Tamil Nadu Kerala


INDIAN SEED INDUSTRY | Yes Bank Ltd.

Gujarat Maharashtra Rajasthan Madhya Pradesh Uttar Pradesh Haryana

35

Punjab Himachal Pradesh Jammu & Kashmir Orissa West Bengal Bihar Chattisgarh Assam Uttaranchal
S our c e: w w w .see d ne t. g ov .i n

15 12.8 3.4 4.7 25.3 10 5.8 37.2 9.28

19 14 5.5 6.8 25.5 12 7.1 7.9 14.7

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

36

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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

IR-58025A/ Vajram IR-62829A/ MTU-9992 IR-62829A/ IR-10198 IR-58025A/ IR-9761 IR-2829A/

Andhra Pradesh

130-135

7.14

APHR-2

Andhra Pradesh

120-125

7.52

CORH-1

Tamil Nadu

110-115

6.08

KRH-1

Karnataka

120-125

6.02

CNRH-3

West Bengal

125-130

7.49

37

Ajaya DRRH-1 IR-58025A/ IR-40750 IR-58025A/ KMR-3 IR-58025A/ UPRI-93-133 IR-58025A/ C-20R IR-58025A/ IR-66 IR-8025A/ BR-827-35 IR-8025A/ NDR-3026 Andhra Pradesh 125-130 7.30

KRH-2

Karnataka

130-135

7.40

Pant Sankar Dhan-1 CORH-2

Uttar Pradesh

115-120

6.80

Tamil Nadu

120-125

6.25

ADTRH-1

Tamil Nadu

115-120

7.10

Sahyadri

Maharashtra

125-130

6.15

Narendra Shankar Dha n-2 PHB-71 UPRH-27


INDIAN SEED INDUSTRY | Yes Bank Ltd.

Uttar Pradesh

125-130

6.15

-IR-58025A/ UPRI-92-133 --

Haryana, UP, Tamil Nadu Plains of Uttar Pradesh

130-135 115-120

7.86 6.80

PA-6201

Eastern and some parts of Southern India Delhi, Punjab, Uttaranchal

125-130

6.18

Pusa RH-10

Pusa- 6A/ PRR-78 6CO-2/ 6MO-5

125

Hybrid-6444

Andhra Pradesh, Orissa, Maharashtra, Tripura, Uttar Pradesh, Uttaranchal

135-140

6-8

38

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)
1%

99%

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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

39

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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

40

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 worlds average yield of 4.71 metric tones per hectare. (Source: USDA, 2007)
PERCENTAGE BREAKUP OF THE PRODUCTION OF MAIZE IN WORLD IN 2007

6% 19%

3%

2%

21%

3% 7% 39%

EU-25 Mexico China Argentina Brazil US India Others

Source: USDA INDIAN SEED INDUSTRY | Yes Bank Ltd.

Type of Hybrids in Maize: Single cross hybrids: It is the cross between two inbred lines. Parent A X Parent B

Hybrid

41

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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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

42

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 Andhra Pradesh Madhya Pradesh Karnataka Maharashtra
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Variety

Hybrid 100%

16.9% 100% 60% 12.25% 17.8% 2% 100% 100% 100% 3.3%

Uttar Pradesh Rajasthan Tamil Nadu Gujarat Himachal Pradesh Jammu & Kashmir

43

Orissa West Bengal Bihar Chattisgarh Assam Uttaranchal Punjab


Source: www.seednet.gov in

0.9% 20% 40% 8.8% 4.4% 2.3% 69%

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Seed Association of India and Seednet India

44

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 Inbred lines Varieties & Composites


Source: www.seednet.gov.in

2003-04 9000 3000

2004-05 9000 3000

2005-06 9000 3000

2006-07 9000 3000

INDIAN SEED INDUSTRY | Yes Bank Ltd.

45

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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Deptt. Of Agriculture and Cooperation

46

Source: Deptt. Of Agriculture and Cooperation

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Seed Association of India

Since 1982, 59 cultivars (14 OPVs and 45 hybrids) have been released in India. No. of Hybrids developed 5 28 12 Developing Agency ICRISAT NARS Private sector

47

No. of OP varieties developed 5 9

Developing Agency ICRISAT 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 1990s, 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 1980s, the multinational companies also entered the millet seed market in India.

SEED REPLACEMENT RATIO OF PEARL MILLET IN DIFFERENT STATES IN 2004-05

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Seed Replacement Ratio in 2004-05 State Andhra Pradesh Madhya Pradesh Karnataka Variety 53% 43.98% 27% 100% Hybrid 100%

48

Maharashtra Uttar Pradesh Tamil Nadu Rajasthan Gujarat India


Source: www.seednet.gov in

74% 50.54% 16% 44.68%

100%

100%

100% 55.36%

The Seed Multiplication rate is 1:200.

UNIFORM SALE PRICE OF BREEDER SEED (Rate Rs. per quintal)

Variety/Hybrid/Line A Line B Line


INDIAN SEED INDUSTRY | Yes Bank Ltd.

2003-04 13000 6600 5500 5500

2004-05 13000 6600 5500 5500

2005-06 13000 6600 5500 5500

2006-07 13000 6600 5500 5500

R Line Varieties and composites


Source: www.seednet.gov.in

49

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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

50

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 (%) State Andhra Pradesh
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Variety 20

Hybrid

Gujarat Madhya Pradesh Maharashtra Karnataka Punjab Rajasthan Tamil Nadu 6.94 8.83 10.23 14.0

288

91.58

51

Uttar Pradesh Haryana


Source: www.seednet.gov.in

8.28 30.45

Source: Seed Association of India

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)
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Variety/Hybrid/Line A Line B Line R Line Varieties & Composites


Source: www. seednet.gov.in

2006-07 9000 7500 6000 3800

52

OIL SEEDS

SUNFLOWER

Sunflower is an important oilseed crop grown in India. It covered an area of 2.34 m ha in 2005-06.

AREA AND PRODUCTION OF SUNFLOWER IN INDIA


2.50 2.00
Area(m ha)

1.00 0.50 0.00 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 200596 97 98 99 00 01 02 03 04 05 06

Year
Area Production

Source: Deptt. Of Agriculture and Cooperation INDIAN SEED INDUSTRY | Yes Bank Ltd.

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%).

53

Production (m tonnes)

1.50

1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00

Source: Deptt. Of Agriculture and Cooperation

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Deptt. Of Agriculture and Cooperation

54

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%).

Source: Seed Association of India

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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

The Seed Multiplication Rate is 1:50

UNIFORM SALE PRICE OF BREEDER SEED (Rate Rs. per quintal) Variety/Hybrid/Line A Line B Line 2003-04
20000 10000

2004-05
20000 10000

2005-06
20000 10000

2006-07
20000 10000

55

R Line Varieties
Source: www.seednet.gov.in

10000 6000

10000 6000

10000 6000

10000 6000

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

Seed Replacement Ratio in 2004-05 State Andhra Pradesh Madhya Pradesh Karnataka Maharashtra Uttar Pradesh Tamil Nadu
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Variety
0 3.3% 23% 29% 14.13% 14.1% 30.8% 35% 15.69%

Hybrid
100%

100%

Orissa Chattisgarh India


Source: www.seednet.gov in

56

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


INDIAN SEED INDUSTRY | Yes Bank Ltd.

10%

1%

2%

2%

Madhya Pradesh Maharashtra Rajasthan Andhra Pradesh Karnataka Others

30%

55%

Source: Department Of Agriculture and Cooperation

57

Source: Department Of Agriculture and Cooperation

UNIFORM SALE PRICE OF BREEDER SEED (Rate Rs. per quintal) Crop Soybean
Source: www.seednet.in INDIAN SEED INDUSTRY | Yes Bank Ltd.

2003-04
4000

2004-05
4000

2005-06
4500

2006-07
4500

The multiplication rate for soybean is 1:16.

SEED REPLACEMENT RATIO OF SOYBEAN IN DIFFERENT STATES IN 2004-05 State Andhra Pradesh Madhya Pradesh SRR (%)
91% 15.68%

58

Karnataka Maharashtra Rajasthan Uttar Pradesh Himachal Pradesh Chattisgarh Uttaranchal


Source: www.seednet.gov in

26.5% 44% 7.02% 31.68% 23% 22.55% 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
40.0 Quantity of certified seed ('000 tonnes) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Seed Association of India

The Seed Association of India has also projected that the production of certified seed of soybean will increase up to 283.4 thousand tones.

59

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 April2006 and December2006 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 April2006 to December2006 was 4713020 kgs which valued Rs 7644.19 lakhs (Source: Directorate General of Commercial Intelligence and Statistics).

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Seed Association of India

The area under vegetables is increasing continuously in India. Along with the increase in area, the vegetable seed market is also increasing.

60

PRODUCTION OF VEGETABLES IN INDIA


85.00

Production (million tonnes)

80.00 75.00 70.00 65.00 60.00 2000 2001 2002 2003 2004 2005

Year

Source: FAO

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Seed Association of India

61

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.

Source: Seed Association of India

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Seed Association of India

62

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 Tomato


INDIAN SEED INDUSTRY | Yes Bank Ltd.

Public sector
3 8 2 1 1 1

Private sector
160 218 73 31 35 20 5 6

Imported
90 12 48 9 45 95 10 6

Brinjal Chilli Capsicum Cauliflower Cabbage Radish Onion

63

Okra Muskmelon W.Melon Cucumber Gourds Total

2 2 2 2 6

32 14 25 10 80

5 4 15 10 15

29

709

364

Source: Seed Association of India

ESTIMATED SHARE OF VEGETABLE HYBRIDS


Share of F1seeds (%) CROP Tomato Brinjal Chilli Capsicum Cauliflower Cabbage Radish
INDIAN SEED INDUSTRY | Yes Bank Ltd.

97-98 28.0 17.8 3.0 5.0 4.0 32.0 3.0 nil 6.0 5.0 6.0 3.0 2.0

2001-02 60.0 22.0 10.0 15.0 15.0 50.0 10.0 Nil 25.0 30.0 40.0 35.0 25.0

Onion Okra Muskmelon Watermelon Cucumber Gourds

Source: Seed Association of India

64

SEED REPLACEMENT RATIO OF VEGETABLES IN 2001-02

Crop Beetroot Bittergourd Bottlegourd Brinjal Cabbage Capsicum Carrot Cauliflower Chilli Cluster beans Coriander Cucumber
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Seed Replacement Ratio (%) 100.0 75.0 75.0 63.4 100.0 90.0 80.0 86.4 83.7 65.0 80.0 90.0 80.0 62.0 80.0 90.0 92.0 87.0 93.0

Dolichos bean Frenchbeans Knolkhol Muskmelon Okra Onion Peas

65

Pumpkin Radish Ridgegourd Spongegourd Tomato Watermelon Others


Source: Seed Association of India

70.0 60.0 70.0 70.0 99.0 90.0 15.0

VEGETABLE SEED MARKET IN 2001-02


10000.0 9000.0 1200.0

7000.0 6000.0 5000.0 4000.0 3000.0 2000.0 1000.0

800.0

600.0

400.0

200.0

INDIAN SEED INDUSTRY | Yes Bank Ltd.

0.0
Be B i e tro tt e ot r B o go u tt l r eg d ou r Br d in ja Ca bb l Ca ag ps e ic um Ca Ca ul rrot if lo w er Cl Ch us t e i lli rb Co e an ria s Cu nde r c D ol u m ic be h r Fr o s b en ea ch n be K ans no M l us kho km l el on O kr a O ni on P Pu eas m pk i Ra n Ri di d sh Sp geg on ou ge r d go u T o rd W m at a er to m el on

0.0

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

Source: Seed Association of India

66

Seed Market (Rs. million)

8000.0

1000.0

Seed Market(tonnes)

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 Amaranthus Spinach Ladys Finger Brinjal Capsicum Chillies Tomato Corriander Turnip
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Number of varieties 3 2 5 6 1 5 8 3 1 1 2 9 2 2 1 2

Hybrids 2 7 3 11 8 1 1 2 1 2 1

Beetroot Snakegourd Bittergourd Ridgegourd Muskmelon Chicory Cucumber

67

Cowpea Methi Sugarbeet Dolichos Potato Frenchbean Peas Cauliflower Cabbage Knolkhol Radish Carrot Onion Bottlegourd Spongegourd Ashgourd Watermelon
INDIAN SEED INDUSTRY | Yes Bank Ltd.

3 2 1 2 4 2 5 5 2 1 9 3 3 3 1 2 3 3 2 2 1 2

1 2 3 1 1 2 3 1 2 4 1 1 1

Pumpkin Garlic Tinda Lottuce Clusterbean


Source: National Seeds Corporation

68

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: USDA

69

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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)


INDIAN SEED INDUSTRY | Yes Bank Ltd.

State Andhra Pradesh Gujarat Haryana Madhya Pradesh

2002-03
660 1007 281 594

2003-04
858 1518 363 528

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Maharashtra Karnataka Punjab Rajasthan Tamil Nadu


Source: www.indiastat.gov.in

792 198 264 149 132

1023 132 347 248 116

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 Haryana Karnataka Maharashtra Punjab Rajasthan Tamil Nadu
Source: Indian Statistical Institute

99 75 83 93 55 65 100

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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
Cotton, Sunflower, Safflower, Rice, Forage sorghum, Maize, Bajra, Chilli, Brinjal, Okra, Tomato, Onion

Ankur Seeds Pvt. Ltd.

Rs. 313 lakhs

11 regional offices and 6 area offices apart from the headoffice at Nagpur 1395 distributors & dealers and over 20000 subdealers Rs. 80 crore

Nuziveedu Seeds

Cotton, Sorghum, Sunflower, Rice, Maize, Pearl millet, Tomato, Brinjal, Okra, Chilli

Nath Seeds

Cotton, Rice, Millet, Maize, Oilseeds Cotton, Sunflower, Maize, Rice, Sorghum, Bajra, Castor, Mustard, Wheat, Red gram, Soybean, Tomato, Okra, Chilli, Bottlegourd, Watermelon, Radish, Cabbage, Sweetcorn, Cucumber, Coriander Cauliflower, Radish, Carrot, Cabbage, Tomato, Egg plant, Chilli, Ridge gourd, Sponge gourd, Bitter

JK Agrigenetics

Rs. 276 lakhs

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Rs. 57 crore in 9 regional 2006-07(Apriloffices and more September) than 250 wholesellers and 20,000 retail dealers across the country

Sungro Seeds Ltd.

Rs. 33 crore

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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.

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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
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Hybrids
Ankur-151, Ankur-09, Ankur-2534, Ankur-2226, Ankur-1262, Ankur Akka, Ankur-Geeta (5090), Ankur-Sita, Ankur-655, Ankur4100, Swadeshi-1 Konark-1, Konark-2, Konark-7, Konark-9, Konark-11 Vasant, Kesar, Garima Ankur-Sonam, Ankur-Rupali, Ankur-Manisha, Heera, Ankur-2025, White Kohinoor,

Cotton

Sunflower Safflower Rice Sorghum-Forage

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Maize Bajra Chilli Brinjal

Aditya, Bhaskar(F-1), Bhanu(F-1), Mitra 909(F-1), 2226(F-1) Arch-226(F-1), Arch-228(F-1), Arch-9(F-1), Arch-313(F-1) Ajay(F-1), Kuldeep(F-1), Kaustabh (F-1) , Utkarsha (F-1) , Sachin(F-1), Kirti(F-1) Aroh-9(F-1), Aroh-10(F-1), Aroh-113(F-1), Aroh-96(F-1), Aroh85(F-1) Ankur-308, Ankur-128(F-1), Ankur-501, Ankur-50(F-1), Ankur210(F-1) Ankur White

Okra

Tomato

Onion

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 1518% 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.

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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

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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.

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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 Cotton Hybrids/Varieties

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 Maize Rice Sorghum

JK CHITRA, JK SURYA JK SURABHI, JKMH 1001, JK POOJA RH 10, JKRH 401 JKSH 234, JKSH 22, JK JYOTHI, JK SAMPURNA, JKSH 55, JKSH 438, JKSH 528, JKSH 538, JK 30R JKBH 26, JKBH 125, JKBH 598, JK UDAY, JKBH 19, JKBH 640, JKBH 576, JKBH 247, JKBH 592, JKBH 661, JKBH 664, JKBH 550 JK SARDAR, JK SAMRAT, JK KIRAN JKMS 2, JK SURAJ, JK KIRTI JK VAIBHAV, JK VIJAY, JK ADITYA, JKWH 15 JK CHAMPION, JK SANIA, JK SWEETY, JK SIXER JK KRANTI, JK MOTI JK VARSHA, JK ASHA, JK DESI JK HARITHA, JKOH 045, JKOH 3017 JK ChH 27, JK HPH 207, JK HPH 208, JK HPH 555 JK UTTARA

Bajra

Castor Mustard Wheat Red Gram Soybean Tomato Okra Chilli Bottlegourd

Watermelon JK LEKHA, JK VIMAL


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Radish Cabbage Sweet Corn Cucumber Coriander

JK SHWETA JK GREENWONDER, JK OXFORD JK MADHU, JK ATIMADHUR JK MANALI, JK SNEHA 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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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
Hybrid Paddy

Variety /Hybrid
SURUCHI 5170, SURUCHI 5319, SURUCHI 5629, SURUCHI 5445, WHITE JEWEL 1, WHITE JEWEL 2, WHITE JEWEL3, WHITE JEWEL - 4 MRM 3824, MRM 3765, MRM 3827, MRM 3816,

Hybrid Maize

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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 MBH163, MBH183, MRB204, MRB2210, MRB-2828, Moti 1, Moti 2, Moti 3, Moti 4, Moti - 5 MECH-12 Bt, MECH-162 Bt, MECH-184 Bt, MRC-6301 Bt, MRC-6304 Bt, MRC-6322 Bt

Hybrid Pearl Millet Bollgard Cotton Intra-specific Hybrids (Gossypium hirsutum)

Interspecific Hybrid MRC-6918 Bt (Gossypium hirsutum x Gossypium barbadense) Indian Cotton Gossypium arboreum New World Cotton Intra-specific Hybrids (Gossypium hirsutum) MRDC-222/Chamatkar-222, MRDC-223/Chamatkar-23, Magic AAC-2, Magic AAC-1 Bounty-5, Bounty-4, Bounty-6, Bounty-1, Bounty-7, Bounty-8, Balraj-65, Tapaswi-6703, MECH-118

White Silk-2 Interspecific Hybrid (Gossypium hirsutum x Gossypium barbadense)


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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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Industry Sources

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

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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 2005

Number of available commercial hybrids in 2006 Bollgard Bollgard II


7

21

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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.

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MMBLs 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.

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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 allcorporate/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.

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On going projects in cotton: The breeding of cotton is being done for development of cotton hybrids with desired characteristics:
1. 2. 3. 4. 5. To develop earliness in Cotton Hybrids. To develop dwarf and compact lines. To improve boll size and yield. To create drought tolerant lines 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

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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 hybridsRCH 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 farmers 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 Hyderabad Guntur and Nuziveedu
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Area(acres) 150 50 130 114 20

Nizamabad Gurjala Gurgaon

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.

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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.

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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

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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 1990s. 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.
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HYBRIDS RELEASED BY SUNGRO CROP RELEASED Cauliflower Radish Carrot Cabbage Tomato Eggplant 15 5 2 6 5 17 HYBRIDS IN PIPELINE 8 3 4 4 3 9

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Chilli Ridgegourd Spongegourd Bittergourd Bottlegourd Karki Cucumber Okra Watermelon Muskmelon Pumpkin TOTAL

2 4 3 4 5 2 1 2 1 74

0 1 0 5 0 1 1 2 1 1 1 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.
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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 Cotton Hy. Paddy Hy. Pearl Millet Mustard Variety/Hybrid Vishwanath, Nathbaba, Bharti Lokanath-510, Ghoraknath-509 NBH-05, NBH-07, Ekanath-301 Nathsona-212, Goldie

According to sales revenue: Crop Cotton Hy. Paddy Hy. Pearl Millet Mustard Hy. Maize Variety/Hybrid Vishwanath Lokanath-510 NBH-05 Nathsona NSMR-1133

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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

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Companys 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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

2. GEAC approval for Bt products

Crop Seed Varieties exported by the company: Country


Bangladesh Egypt

Name of the crop


Corn Corn

Variety exported
NSMR-1133 NSMR-1133

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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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Clive James, 2006

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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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Clive James, 2006

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AREA UNDER GM/BIOTECH CROPS IN 2006 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19


INDIAN SEED INDUSTRY | Yes Bank Ltd.

Country
USA Argentina Brazil Canada India China Paraguay South Africa Uruguay Philippines Australia Romania Mexico Spain Colombia France Iran Honduras Czech Republic Portugal Germany Slovakia

Area (million hectares) 54.6


18.0 11.5 6.1 3.8 3.5 2.0 1.4 0.4 0.2 0.2 0.1 0.1 0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1

Biotech Crops grown


Soybean, maize, cotton, canola, squash, papaya, alfalfa Soybean, maize, cotton Soybean, cotton Canola, maize, soybean Cotton Cotton Soybean Maize, soybean, cotton Soybean, maize Maize Cotton Soybean Cotton, soybean Maize Cotton Maize Rice Maize Maize Maize Maize Maize

20 21 22

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.

95

Source: Industry sources

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

96

Country

Number of small farmers growing Bt cotton in 2006

China India Philippines Others


Source: Industry sources

6.8 million 2.3 million 100,000 100,000

Biotech Crop Market: The entry of genetically modified seeds of crops in the seed market has led to revolution in the Global seed industry.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Phillips McDougall 2007

97

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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

98

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Biospectrum ABLE survey 2007

99

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 Seeds RCH 2Bt was given for 6 states. 2005: Several new varieties were permitted for commercial cultivation in all, 17 varieties.

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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 Indias 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.

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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.

101

FUNCTIONS OF INDIAN BIOTECH REGULATORY AUTHORITIES COMMITTEE


Institutional Biosafety Committee (IBC)

FUNCTIONS
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 Manipulation (RCGM)

on

Genetic 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.

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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

102

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 commercial sales/distribution. Recombinant DNA Advisory Committee (RDAC) for

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 Periodically review safety and control committee (SBCC) (in states where biotech measures in institutions involved in research occurs) handling biotech products.
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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

103

PROCEDURE FOR APPROVAL OF BIOTECH CROPS IN INDIA

Applicant
RCGM Functions To note, approve, recommend generation of appropriate biosafety & agronomic data IBSC Functions 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 To inform decision to Ministry of Agriculture and to inform applicants to follow the relevant Acts and Rules Seed Act/ Rules ICAR TRIALS

IBSC

To note, approve, recommend & to seek approval of RCGM

RCGM

MEC

GEAC

ICAR

To generate complete agronomic data and to recommend for commercial release of GM crops. Release for Commercia l agriculture

Source: Department of Biotechnology, GOI

India, which has about 9.2 mha area under cotton, 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 worlds 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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

104

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
4000 3500 Area('000ha) 3000 2500 2000 1500 1000 500 0 2000 2001 2002 2003 Year 2004 2005 2006 Area('000 ha)

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Indian Statistical Institute

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.

105

% 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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

106

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 INDIAN SEED INDUSTRY | Yes Bank Ltd. the annual average exchange rate in each year.

107

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

Details Bt hybrid Land Seeds Manures Gap filling Weeding Plant Picking Total cost Yield (q/ha) Price (Rs/q) Gross return Net return Output/input ratio 1345 4476 1482 169 1927 1097 2096 12592 11.73 2078 24375 11783 1.94

2002-03
Conventional

2003-04 Bt hybrid 1420 4325 1565 140 1880 1170 2496 12996 12.48 2250 28080 15084 2.16
Conventional

Overall Bt hybrid 1382.5 4400.5 1523.5 154.5 1903.5 1133.5 2296 12794.0 12.10 2127 26227.5 13433.5 1.96
Conventional

1345 1645 1482 180 1730 2394 1686 10462 9.72 2029 19722 9260 2.00

1420 1496 1565 170 1740 2410 1926 10727 9.63 2225 21427 10700 1.89

1382.5 1570.5 1523.5 175.0 1735.0 2402.0 1806 10594.5 9.69 2078 20148.2 9620.0 1.94

Source: Industry sources


INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

108

Bt Cotton Hybrids approved till 2006:

INDIAN SEED INDUSTRY | Yes Bank Ltd.

109

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 years 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
MECH 12 Bt

Name of Company
Mahyco

Gene event

1
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cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event)

MECH 162 Bt

Mahyco

MECH 184 Bt

Mahyco

110

Bt COTTON VARIETIES APPROVED FOR COMMERCIAL CULTIVATION IN THE VARIOUS ZONES DURING 2004

S.No.

Name of Hybrids
RCH 2 Bt

Name of Company
Rasi Seeds Ltd.

Gene event

cry 1 Ac (MON 531 Event)

Bt COTTON VARIETIES APPROVED FOR COMMERCIAL CULTIVATION IN THE VARIOUS ZONES DURING 2005

S.No.

Name of Hybrids
NCS-207 Mallika

Name of Company
Nuziveedu Ltd. Nuziveedu Ltd.

Gene event

Seeds cry 1 Ac (MON 531 Event) Seeds cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event)

NCS-145 Bunny

RCH-144 Bt

Rasi Seeds Ltd.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

RCH-118 Bt

Rasi Seeds Ltd.

RCH-138 Bt

Rasi Seeds Ltd.

RCH-20 Bt

Rasi Seeds Ltd.

RCH-368 Bt

Rasi Seeds Ltd.

111

RCH-134 Bt

Rasi Seeds Ltd.

cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event)

RCH-317 Bt

Rasi Seeds Ltd.

10

MRC-6322 Bt

Mahyco

11

MRC-6918 Bt

Mahyco

12

MRC-6301 Bt

Mahyco

13

MRC-6304 Bt

Mahyco

14

Ankur-651 Bt

Ankur Seeds Ltd.

15

Ankur-2534 Bt

Ankur Seeds Ltd.

16

Ankur-09 Bt

Ankur Seeds Ltd.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Bt COTTON VARIETIES APPROVED FOR COMMERCIAL CULTIVATION IN THE VARIOUS ZONES DURING 2006

S.No.

Name of Hybrids
MRC-6025 Bt

Name of Company
Mahyco

Gene event

cry 1 Ac (MON 531 Event)

112

MRC-6029 Bt

Mahyco

cry 1 Ac (MON 531 Event) Seeds cry 1 Ac (MON 531 Event) Seeds cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event)

NCS-913 Bt

Nuziveedu Ltd. Nuziveedu Ltd.

NCS-138 Bt

RCH-308 Bt

Rasi Seeds Ltd.

RCH-314 Bt

Rasi Seeds Ltd.

RCH-377 Bt

Rasi Seeds Ltd.

RCH-111 BG I

Rasi Seeds Ltd.

RCH-371 BG I

Rasi Seeds Ltd.

10

RCHB-708 BG I

Mahyco

11
INDIAN SEED INDUSTRY | Yes Bank Ltd.

GK-205 Bt

Ganga Kaveri Seeds Pvt. Ltd. Ganga Kaveri Seeds Pvt. Ltd. Ganga Kaveri Seeds Pvt. Ltd. Ganga Kaveri Seeds Pvt. Ltd. Krishidhan Seeds Pvt. Ltd.

12

GK-204 Bt

13

GK-209 Bt

14

GK-207 Bt

15

KDCHH 9810 Bt

113

16

KDCHH 9362 Bt

Krishidhan Seeds Pvt. Ltd. Krishidhan Seeds Pvt. Ltd. Ajeet Seeds Ltd.

cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event)

17

KDCHH 9821 Bt

18

ACH-33-1 Bt

19

ACH-155-1 Bt

Ajeet Seeds Ltd.

20

Tulasi 4 Bt

Tulasi Seeds Pvt. Ltd.

21

Tulasi 117 Bt

Tulasi Seeds Pvt. cry 1 Ac (MON 531 Ltd. Event) Prabhat Seeds Ltd. cry 1 Ac (MON 531 Event) cry 1 Ac (MON 531 Event)

22

NPH 2171 Bt

23

Brahma Bt

Emergent Genetics

24

VICH 5 Bt

Vikram Seeds Pvt. cry 1 Ac (MON 531 Ltd. Event) Vikram Seeds Pvt. cry 1 Ac (MON 531 Ltd. Event) Pravardhan Seeds Ltd. Prabhat Seeds Ltd. cry 1 Ac (MON 531 Event) cry 1 Ac (Event 1)

25
INDIAN SEED INDUSTRY | Yes Bank Ltd.

VICH 9 Bt

26

PRCH-102 Bt

27 28

PCH-2270 Bt VCH-111 Bt

Vikki Agrotech cry 1 Ac (Event 1) Pvt. Ltd. Mahyco cry 1 Ac & cry 2 Ab (MON 15985 Event)

29

MRC 7301 BG II

114

30

MRC-7326 BG II

Mahyco

cry 1 Ac & cry 2 Ab (MON 15985 Event) cry 1 Ac & cry 2 Ab (MON 15985 Event) cry 1 Ac & cry 2 Ab (MON 15985 Event) cry 1 Ac & cry 2 Ab (MON 15985 Event) cry 1 Ac & cry 2 Ab (MON 15985 Event) cry 1 Ac & cry 2 Ab (MON 15985 Event) cry 1 Ac gene (Event 1)

31

MRC-7347 BG II

Mahyco

32

MRC-7351 BG II

Mahyco

33

MRC-7201 BG II

Mahyco

34

KDCHH-441 BG Krishidhan Seeds II Pvt. Ltd. ACH-11-2 BG II Ajeet Seeds Ltd.

35

36

JKCH 1947 Bt

J K Agrigenetics Ltd. J K Agrigenetics Ltd. J K Agrigenetics Ltd. J K Agrigenetics Ltd. Nath Seeds Ltd. Nath Seeds Ltd. Nath Seeds Ltd.

37

JK Varun Bt

cry 1 Ac gene (Event 1)

38

JK Durga Bt

cry 1 Ac gene (Event 1)

39
INDIAN SEED INDUSTRY | Yes Bank Ltd.

JKCH-99 Bt

cry 1 Ac gene (Event 1)

40 40 40

NCEH-6R NCEH-2R NCEH-3R

cry 1 Ab+Cry 1 C cry 1 Ab+Cry 1 C cry 1 Ab+Cry 1 C

115

Bt COTTON VARIETIES APPROVED FOR COMMERCIAL CULTIVATION IN THE VARIOUS ZONES DURING 2007
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 Events Bt cotton hybrid North zone BG-I
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Total

Central zone
23 5 3 4 35 36 9 4 4 53

13 4 1 18

BG-II Event-I GFM Event Total


Source: Compiled by ISAAA

116

RANKING OF COMPANIES ACCORDING TO Bt COTTON SEED SALES IN 2006-07 Rank in 2006-07


1 2 3 4 5 6

Turnover(Rs. Crores) Company


Rasi Seeds Nuziveedu Seeds Mahyco Ankur Seeds Biotech International Others

Turnover(Rs. Crores) in 2005-06


309.49 62.52 117.76 108.23

in 2006-07
333.33 226.42 110.69 69.5 26 160.06

Total
Source: Biospectrum Able Survey2007

926

598

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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

117

Bt COTTON SALES(packets) IN DIFFERENT STATES


1,600,000 1,400,000 SALES(packets) 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2003 2004 YEAR 2005 Maharashtra Andhra Pradesh Gujarat Madhya Pradesh Punjab, Haryana, Rajasthan Karnataka Tamil Nadu

Source: Indian Statistical Institute

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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

118

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 4,000crore 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)

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Source: Industry Sources

119

ORGANIZATIONS WORKING ON Bt COTTON (under development and field trials) Organization


Ankur Seeds, Nagpur Ajeet Seeds, Aurangabad Emergent Genetics, Hyderabad Ganga Kaveri Seeds, Hyderabad J. K. Agrigenetics, Hyderabad Krishidhan Seeds, Jalna Mahyco, Mumbai Metahelix, Bangalore Nandhi Seeds, Hyderabad Nath Seeds, Aurangabad Nuziveedu Seeds, Hyderabad Namdhari Seeds, Bangalore Pravardhan Seeds, Hyderabad
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Transgene
cry1Ac; cry1Ac and cry2Ab cry1Ac; cry1Ac and cry2Ab cry1Ac; cry1Ac and cry2Ab cry1Ac cry1Ac cry1Ac; cry1Ac and cry2Ab cry1Ac; cry1Ac and cry2Ab cry1Ac cry1Ac GFM cry1Aa cry1Ac; cry1Ac and cry2Ab GFM cry1Aa cry1Ac cry1Ac; cry1Ac and cry2Ab cry1Ac; cry1Ac and cry2Ab GFM cry1Aa Vip-3a cry1Ac; cry1Ac and cry2Ab Cry1Ab

Prabhat Agri Biotech, Hyderabad Rasi Seeds, Attur Safal Seeds, Jalna Syngenta India, Pune Tulsi Seeds, Guntur University of Agricultural Sciences,

120

Dharwad Vibha Seeds, Hyderabad Vikki Agrotech, Hyderabad Vikram Seeds, Ahmedabad Zuari Agrotech, Bangalore
Source: Biospectrum Able Survey2007

cry1Ac cry1Ac cry1Ac GFM cry1Aa

G M CROPS UNDER FIELD TRIAL IN INDIA DURING 2005 S. No.


1 Brinjal

Crop

Trait
Insect resistance

Organization
Indian Agriculture Research Institute, MAHYCO, Sungro Seeds Ltd. Sungro Seeds Ltd Sungro Seeds Ltd Monsanto (India), Metahelix Life Sciences 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;

2 3 4

Cabbage Cauliflower Corn

Insect resistance Insect resistance Insect resistance

5
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Cotton

Insect resistance

121

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, Vikkis Agrotech, Pravardhan Seeds, Prabhat Agri Biotech; Ajeet Seeds 6 7 Groundnut Mustard Virus resistance Cytoplasmic sterility Insect resistance Resistance to fungal pathogens Resistance to pests; bacterial blight, fungal pathogens, salt tolerance 11 Tomato Insect resistance, virus resistance IARI, MAHYCO ICRISAT male University of Delhi South Campus (UDSC) MAHYCO ICRISAT

8 9
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Okra Pigeon Pea

10

Rice

IARI, MAHYCO, Metahelix Life Sciences

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

122

Illegal or Spurious Bt cotton seeds:

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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 didnt 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".
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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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INDIAN SEED INDUSTRY | Yes Bank Ltd.

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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INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

126

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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

128

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 dont shift to other crops.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

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:


INDIAN SEED INDUSTRY | Yes Bank Ltd.

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:

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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.

Providing infrastructure PRIVATE SECTOR PUBLIC SECTOR

INDIAN SEED INDUSTRY | Yes Bank Ltd.

SEED VALLEY

Partners in progress

FARMERS

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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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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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 Indias 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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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 cant 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 cant 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.

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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ANNEXURES

Seed Market of various vegetables:


area (000ha) seed market in tons 01-02 Beetroot Bittergourd Bottlegourd Brinjal Cabbage Capsicum Carrot Cauliflower Chilli Clusterbeans Coriander 5.4 154.5 183.9 710.3 205.0 94.0 196.8 630.1 988.9 74.4 82.0 381.3 15.2 49.2 85.7 136.0 341.5 207.9 118.7 40.6 386.3 643.8 355.2 102.5 28.2 984.0 472.6 494.5 1859.0 984.0 1144.0 609.0 2949.2 85.7 339.9 4268.2 2598.4 8902.4 39.0 294.0 185.3 229.9 333.2 115.7 688.8 408.3 541.9 142.4 295.2 810.4 149.7 144.3 25.2 278.8 970.8 707.3 436.0 value (mRs) area (000ha) seed market in tons area (000ha) seed market in tons 03-04 41.2 397.8 663.1 369.4 105.1 28.9 1008.6 491.5 521.7 1896.1 1008.6 1189.8 618.1 3023.0 87.4 350.1 4438.9 2728.4 9258.5 5.6 163.9 195.1 768.3 215.4 98.7 206.8 681.5 1100.7 77.4 86.2 412.5 15.7 51.6 89.1 144.2 369.3 229.2 128.4 41.8 409.8 683.0 384.1 107.7 29.6 1033.8 511.1 550.4 1934.1 1033.8 1237.4 627.4 3098.5 89.1 360.6 4616.4 2864.8 9628.8 area (000ha) seed market in tons 04-05 5.7 168.8 201.0 799.0 220.8 101.2 211.9 708.8 1161.2 78.9 88.3 428.9 15.9 52.9 90.9 148.6 384.1 240.6 133.5 42.5 422.1 703.4 399.5 110.4 30.4 1059.7 531.6 580.6 1972.7 1059.7 1286.8 636.8 3176.0 90.9 371.4 4801.1 3008.0 10014.0

Crop

02-03 5.5 159.1 189.4 738.7 210.1 96.3 201.7 655.3 1043.3 75.8 84.1 396.6 15.5 50.4 87.4 140.0 355.1 218.3 123.4

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Cucumber Dolichos bean Frenchbeans Knolkhol Muskmelon Okra Onion Peas

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Pumpkin Radish Ridgegourd Spongegourd Tomato Watermelon Others Total

12.1 143.5 166.6 33.5 891.7 366.1 300.0 6274.1

66.6 1148.0 666.3 133.9 312.1 915.2

19.8 167.4 135.9 125.3 554.6 327.9

12.4 147.1 170.7 34.5 918.4 380.7 280.0

68.3 1176.7 682.9 137.9 321.5 951.8

12.7 150.8 175.0 35.5 946.0 396.0 200.0

70.0 1206.1 700.0 142.1 331.1 989.9

13.0 154.5 179.4 36.6 974.4 411.8 180.0

71.7 1236.3 717.5 146.3 341.0 1029.5

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 Paddy Maize Jowar Bajra Ragi 151.0 143.0 17.0 39.0 17.0 1.0 1.0 2.0 371 182.0 136.0 14.0 37.0 17.0 2.0 1.0 3.0 392.0 204.0 146.0 14.0 33.0 16.0 2.0 1.0 3.0 419.0 224.0 154.0 16.0 27.0 17.0 2.0 1.0 3.0 444.0 232.0 166.0 19.0 27.0 17.0 2.0 1.0 3.0 467.0 250.0 170.0 20.0 26.0 17.0 2.0 1.0 3.0 489.0 269.0 170.0 20.0 24.0 17.0 2.0 2.0 3.0 507.0 282.0 183.0 24.0 29.0 18.0 2.0 2.0 3.0 543.0 295.8 197.2 28.0 33.3 19.1 2.1 2.1 3.5 581.1 319.5 213.0 30.2 36.0 20.6 2.3 2.3 3.8 627.6 329.0 219.4 31.1 36.7 61.9 2.3 2.3 3.9 686.6 338.9 225.9 32.1 37.8 62.5 2.3 2.3 3.9 705.8 349.1 232.7 33.0 38.9 63.1 2.3 2.3 4.0 725.5

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Barley Others Sub Total

PULSES Gram Lentil Peas Black gram 10.0 1.0 3.0 8.0 11.0 1.0 2.0 8.0 11.0 1.0 3.0 8.0 12.0 1.0 3.0 7.0 14.0 1.0 3.0 11.0 18.0 2.0 4.0 9.0 21.0 2.0 4.0 10.0 22.0 2.0 4.0 11.0 24.2 2.1 4.8 11.8 26.1 2.3 5.2 12.7 26.7 2.3 5.3 13.0 27.2 2.3 5.4 13.3 27.7 2.4 5.6 13.5

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Moong Red gram Cowpea Others Sub Total

6.0 5.0 1.0 1.0 34.0 -

8.0 5.0 2.0 37.0

7.0 6.0 2.0 38.0

6.0 6.0 1.0 36.0

7.0 6.0 1.0 43.0

8.0 8.0

8.0 8.0 1.0 -

8.0 9.0 2.0

8.5 9.6 2.0 1.0

9.2 10.4 2.2 1.1 68.0

9.3 10.5 2.2 1.1 69.3

9.5 10.7 2.3 1.1 70.6

9.6 10.9 2.3 1.1 72.1

49.0

54.0

58.0

63.0

OILSEEDS Groundnut Mustard Sunflower Soybean Castor Sub Total 70.0 8.0 6.0 19.0 2.0 105.0 67.0 8.0 7.0 26.0 2.0 110.0 70.0 8.0 7.0 30.0 2.0 117.0 69.0 9.0 8.0 36.0 3.0 125.0 73.0 10.0 6.0 31.0 3.0 123.0 57.0 10.0 8.0 19.0 2.0 96.0 62.0 10.0 8.0 20.0 2.0 102.0 63.0 11.0 9.0 20.0 2.0 105.0 65.0 13.0 10.0 30.0 2.5 120.5 70.2 14.0 10.8 32.4 2.7 130.1 72.3 14.5 11.1 33.4 2.8 134.0 73.1 14.8 11.3 34.0 2.8 136.1 73.9 15.0 11.6 34.7 2.9 138.1

FIBRES Cotton Jute Mesta Sub Total 21.0 19.0 2.0 21.0 19.0 2.0 22.0 20.0 2.0 25.0 23.0 2.0 32.0 29.0 3.0 26.0 3.0 2.0 31.0 27.0 3.0 2.0 32.0 40.0 3.0 2.0 45.0 65.0 3.5 2.2 71.0 96.0 3.8 2.4 102.5 99.8 3.9 2.4 106.5 102.8 4.0 2.5 109.6 105.9 4.1 2.5 112.9

Potato Vegetables

52.1 29.3 81.4

55.0 31.0 86.0

58.6 33.0 91.6

61.9 28.8 90.7

65.3 30.2 95.5

65.4 33.7 99.1

68.3 34.9 103.2

72.1 36.8 108.9

81.0 36.8 117.8

85.0 38.2 123.2

85.9 39.3 125.2

88.4 40.5 129.0

91.1 41.7 132.8

INDIAN SEED INDUSTRY | Yes Bank Ltd.

Sub Total Sudan sorghum Grand Total

612

646

688

721

761

764

798

860

953

1051.4

1121.6

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 USA China France Japan Brazil India Germany Argentina Italy Canada Russian Federation Korea Australia Mexico Taiwan Spain Poland United Kingdom Turkey INDIAN SEED INDUSTRY | Yes Bank Ltd. South Africa Netherlands Czech Republic Hungary Denmark Morocco Greece Sweden Egypt Belgium

Size of domestic market 7,080 4,000 1,915 1,500 1,500 1,300 1,000 850 670 550 500 400 400 350 300 300 260 257 250 250 208 200 200 170 160 160 155 140 126

Country Romania Chile Serbia & Montenegro Nigeria Finland Austria New Zealand Slovakia Switzerland Paraguay Tunisia Uruguay Bangladesh Portugal Ireland Iran Israel Kenya Colombia Bolivia Zimbabwe Peru Slovenia Saudi Arabia Zambia Ecuador Malawi Dominican Republic Uganda

Size of domestic market 120 120 120 120 103 100 98 90 90 70 70 70 60 60 60 55 50 50 40 35 30 30 30 18 15 12 10 7 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. Source: www.worldseed.org Seed Exports (FOB) of Selected Countries, 2005 (in USD million) Agricultural Seeds 618 127 510 313 186 141 115 128 119 100 100 23 53 62 3 32 57 45 44 30 39 35 20 30 Horticultural Seeds 304 557 178 27 29 37 56 43 4 9 6 69 25 11 59 29 2 11 8 19 3 4 15 5

Country USA Netherlands France Germany Canada Denmark Italy Chile Belgium Mexico Hungary Japan Spain Australia INDIAN SEED INDUSTRY | Yes Bank Ltd. Israel China Austria Argentina Brazil United Kingdom Poland South Africa New Zealand Sweden

Total 922 784 688 340 215 178 171 171 123 109 106 92 78 73 62 61 59 56 52 49 42 39 35 35

140

Czech Republic Turkey Thailand Switzerland Ukraine Korea India Greece Slovakia Guatemala Taiwan Peru Russian Federation Romania Latvia Costa Rica Portugal Lithuania Ireland Kazakhstan Moldova Slovenia Kenya Pakistan INDIAN SEED INDUSTRY | Yes Bank Ltd. Serbia & Montenegro Tanzania Vietnam Croatia Colombia Uruguay Luxemburg Morocco Egypt Bulgaria

28 26 2 22 18 1 7 13 16 8 2 3 8 9 8 1 4 7 7 7 6 4 5 2 4 0 1 4 3 3 3 0 2 2

5 6 24 2 0 16 9 3 0 6 10 9 2 1 1 7 4 1 0 0 0 2 0 3 1 5 3 0 0 0 0 2 0 0

33 32 26 24 18 17 16 16 16 14 12 12 10 10 9 8 8 8 7 7 6 6 5 5 5 5 4 4 3 3 3 2 2 2

141

Bolivia Iran Venezuela Georgia TOTAL

2 2 1 1 3172

0 0 0 0 1632

2 2 1 1 4904

Source: www.worldseed.org
Seed Imports (FOB) of Selected Countries, 2005 (in USD million) Agricultural Seeds 339 247 257 156 179 257 170 158 97 106 72 86 69 69 43 63 52 43 20 42 38 36 45 Horticultural Seeds 167 125 75 173 126 44 101 52 37 23 55 24 40 18 38 14 7 11 34 10 13 14 4

Country USA Mexico France Netherlands Spain Germany Italy Canada United Kingdom Belgium Japan Poland INDIAN SEED INDUSTRY | Yes Bank Ltd. Russian Federation Greece China Hungary Austria Ukraine Turkey Switzerland Denmark Brazil Czech Republic

Total 506 372 332 329 305 301 271 210 134 129 127 110 109 87 81 77 59 54 54 52 51 50 49

142

Korea, Republic of Romania Australia Saudi Arabia Portugal Argentina Slovakia Egypt Sweden Morocco Chile South Africa India Israel Iran Pakistan Taiwan Uruguay Tunisia Slovenia Finland Venezuela Ireland Croatia INDIAN SEED INDUSTRY | Yes Bank Ltd. Vietnam Algeria Bulgaria Belarus Serbia & Montenegro Syria Colombia Thailand New Zealand Lithuania

17 36 25 30 28 30 33 10 25 16 22 16 3 9 13 9 2 17 13 14 13 10 14 10 n.a. 4 13 12 10 7 10 1 5 10

27 8 16 10 11 9 3 20 4 13 4 9 18 12 8 11 17 2 6 4 5 8 3 7 n.a. 13 4 3 4 7 4 12 8 2

44 44 41 40 39 39 36 30 29 29 26 25 21 21 21 20 19 19 19 18 18 18 17 17 17 17 17 15 14 14 14 13 13 12

143

Jordan Norway Kenya Paraguay Hong Kong, China Guatemala Bosnia & Herzegovina Philippines Ecuador Yemen Peru Moldova Latvia Costa Rica United Arab Emirates Lebanon Angola Bolivia Luxemburg Panama Uzbekistan Senegal Kazakhstan Iraq INDIAN SEED INDUSTRY | Yes Bank Ltd. Libya Zimbabwe Cuba Macedonia, FYR Estonia Albania Burkina Faso Ethiopia Kuwait Dominican Republic

4 6 7 11 1 5 6 5 5 2 6 6 7 3 4 4 1 6 6 5 2 2 3 2 0 3 n.a. 1 2 1 0 0 0 0

7 5 4 0 9 4 2 3 3 6 2 2 1 4 3 3 5 0 0 1 4 3 2 2 4 1 n.a. 2 1 1 2 2 2 2

11 11 11 11 10 9 8 8 8 8 8 8 8 7 7 7 6 6 6 6 6 5 5 4 4 4 4 3 3 2 2 2 2 2

144

Cyprus Azerbaijan Sudan Malta Cameroon TOTAL

1 0 0 0 1 3249

1 1 1 1 0 1593

2 1 1 1 1 4863

Source: www.worldseed.org

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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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.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Crop Seed Segment Cereal seeds Millet seeds Forage crop seeds Oil seeds Vegetable seeds Fibre crop seeds

Market size (Rs. Crores)

1 2 3 4 5 6

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8. What is your estimate of the market size of different crop seeds in India(according to estimates): S. No. 1 Market size Crop seed segment Cereal seeds Crop (Rs. Crores) Paddy Wheat Maize 2 Millet seeds Pearl millet Finger millet 3 4 Forage crop seeds Oil seeds Sorghum Soybean Groundnut Sunflower Safflower Mustard
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Castor 5 Vegetable seeds Tomato Chilli Capsicum Cauliflower Cabbage

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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. 1 2 3 4
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Crop seed segment Cereal seeds Millet seeds Forage crop seeds Oil seeds Vegetable seeds Fibre crop seeds

Share(%) of Public sector

Share(%) of Private sector

5 6

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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, aware, 4-not aware) Awareness level of farmers
(Please tick)

3-less

S. No.

Region

1
Highly aware

2
Somewhat aware

3
Less aware

4
Not aware

Reason

1 2 3 4

North South East West

11. Which product attributes are preferred by the farmers in different crop seed segments: S. No.
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Crop seed segment Cereal seeds

Crop

Product attributes preferred by the farmers

Millet seeds

149

Forage crop seeds

Oil seeds

Vegetable seeds

6
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Fibre crop seeds

12. According to you what do you think the future growth rate(5 years) of Indian seed industry would be :_____% CAGR

150

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 S. No. Crop Segment 1 1 2 3 Cotton Maize Pearl Millet Paddy Wheat (Please tick) 2 3 4 5 6 7 8 Soybean Sunflower Mustard S. No. Crop Segment 1 2 3 4 5 Rating(Please tick)

4 5
INDIAN SEED INDUSTRY | Yes Bank Ltd.

9 10

Castor Vegetables

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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. 1 2 3 4
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Crop seed segment dealt by the company

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

152

5. Which are the most successful seed varieties/hybrids of the company(according to sales volume): S. No. 1 2 3 4 Name of the crop Variety

6. Which are the most successful seed varieties/hybrids of the company(according to sales revenue): S. No. 1 2 3 4 5
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Name of the crop

Variety

Revenue Share (% of total revenue)

7. Who according to you are the major players in different crop segments(please name them): S. No. 1 Crop seed segment Cereal seeds Name of the crop Major Players Reasons

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Millet seeds

Forage crop seeds

Oil seeds

Vegetable seeds

Fibre crop seeds

8. What is the supply chain of the company(Please tick the appropriate option): a. Company b. Company Distributor Dealer Dealer Farmer Farmer

c. Any other,(Please specify):_________________________________________

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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. Companys contribution in margin(%) from distributor to dealer:________

154

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. 1 2 3 4 5 Crop Margin (%)

13. What are the problems/key issues in the supply chain: a. _________________________________________________________________
INDIAN SEED INDUSTRY | Yes Bank Ltd.

b. _________________________________________________________________ c. _________________________________________________________________ d. _________________________________________________________________

14. What are your suggestions for sorting out the problems in the supply chain: a. _________________________________________________________________ b. _________________________________________________________________ c. _________________________________________________________________ d. __________________________________________________________________

155

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, 2effective, 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 2 3
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Field demonstration Advertisement through TV/radio Advertisement through newspaper / magazines Pamphlets, hoardings and other printed material Any other, (Please specify): ________________________

17. Do you face specific regulations in specific states: Yes No

156

18. If yes, then what are those specific regulations faced in specific states: S. No. 1 2 3 Regulation faced State

19. Do you export seeds: Yes No

20. If yes, then which are the countries where seeds are exported: S. No. 1 2 3 Country Name of the crop Variety exported

INDIAN SEED INDUSTRY | Yes Bank Ltd.

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

157

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. 1 2 3
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Name of the country

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):_________________________________________

158

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 2 3 4 5

R&D investment Distribution network Sales Promotion Extension services Any other, (Please specify): ______________________

INDIAN SEED INDUSTRY | Yes Bank Ltd.

159

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. 1 2 3
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Crop seed segment with high future growth potential

Reason

4 5

3. Is the Indian seed industry competitive globally: Yes No

160

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

INDIAN SEED INDUSTRY | Yes Bank Ltd.

1 2 3 4 5 6

Cereal seeds Millet seeds Forage crop seeds Oil seeds Vegetable seeds Fibre crop seeds

161

7. If no, then what are the reasons for not being competitive: S. No. 1 2 3 4 5 6 Crop seed segment Cereal seeds Millet seeds Forage crop seeds Oil seeds Vegetable seeds Fibre crop seeds Reasons for not being competitive

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. _________________________________________________________________
INDIAN SEED INDUSTRY | Yes Bank Ltd.

c. _________________________________________________________________ d. _________________________________________________________________

10. What are the key issues and challenges before Indian seed industry: a. _________________________________________________________________ b. _________________________________________________________________ c. _________________________________________________________________ d. _________________________________________________________________

162

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:____________________________________________________________
INDIAN SEED INDUSTRY | Yes Bank Ltd.

_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________

15. Please suggest if we can quote your name in the report for the views given by you about the Seed industry: Yes No

163

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
INDIAN SEED INDUSTRY | Yes Bank Ltd.

Websites of Seed companies

164

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