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F&A Research and Advisory
Contents
Irttoduction
inion agra cera
eed
Introduction
‘The indian seed industry isthe eighth largestin the world with an estimated value
‘of NR’ 49 billion (USD 1.06 ilion) and annual growth of 12 to 13 percent.The seed
‘industry in india has demonstrated buoyant growth over the last two years onthe
back of goed monsoons view ofthe limitations to expanding the area under
‘agriculture, Indian farmers have in recent years adopted intensive cultivation
practices in order to meet the growing demand fr agricultural produce. High
yielding varieties (KYV) and hybrids are playing an increasinglyimportantrolein
‘the Indian agricultural scenario. Indian farmers have made the transition from
traditional sustenance agriculture to commercial farming and this represents 3
paradigm shiftin the cultivation process. This change has taken place over two
decades and has been driven by a variety of factorsinduding farmers’ growing
awareness of better cultivation methods, the better returns achieved through the
‘use of modern agricultural methods and techniques, the relaxation of regulations in
{the input sector and the greater availabilty of quality inputs to farmers.
arc otras ec
< over the est coupe of years wth the introduction
{Engineering Approval Commie (GEAC) the egulstory authoey
rnlogy Cops nina recently announced that farmers increased he ares pla
with geneticaly modified (GM) insect-protected cotton to 3.2 millon hectares i 2006,
from 1.2 millon hectares n 2005.improvement ofthe seed replacement rat
potential for igh usage of HYV seeds in the agraran economy point 7
promising marke Thishas in tum prompred the welds
1s to begin operations niga
indus the key crop
Indian agricultural scenario
iia enjoys a natural com
ve advantage thanks to ts vied range of lms
nd topography These enable the culation ofa vareyof crops acoss the
‘ountry.nda 1617 milion hectares of culated and make up the second ges
‘creage of arable land inthe worl afte the US (1761 milion hectates) Agricul
Comtibutes 205 percent to indian GDP? and employs about one thi nt
January. As only 40 percent ofthe gross cropped are inthe county isimigate nar
griculture is gh depe ogares of the manson The .Rabobank
| Indian seed industry
tempore eats
ae
Theres asong rence rptetey
roped are tained Food gains ae the most important cutvated ps with production
tanging fom 190 milion tonnes to 200 min tonnes per annum. Food grains suchas ice
‘and wheat coarse creas such as sorghum, pea lle) and male pulses olseeds
‘Cottrysugarcanear rus an vegstabie are the key crops High deverdence on rates
‘conations equ ed companies to focus on drought resstant varieties The monsoon
animportnt determinant othe performance of seed companies nin. A good and
timely monsoon tends to au Up companies sakes and prftablty as ced uptake nents
(mon omnes)
Some key clon. whch ate mgcrtant fom the perspecthe ofthe commercial sed
industry ar as flows
‘cotton
Cotton one fina most portant cash crops plys a cuca olin both the
acglcultural ane indus sectors naa asthe ages att: rowing area the wots
The area under coton is estmated at 87 millon hectares and production estimated
21.2 millon boles of 170g each (200405) Production fs concentrated inthe cera
north and southem regions wth the key sates being Mahaashra Guat anc And
Pradesh. The total see market's estimated at 12 millon packets (450g each). comersng
millon packets of lega tcotton25 millon packets of ilegal Bt coon and 55 milion
packets ofnon Bt cotton seeds.
Sunflower
Surtlower produced during both the Khadifad abl seasons in Ina withthe Rab crop
being fie the sz ofthe Khat cop Sunflower production in nda estimated at
"o8milon tonnes ad noes an acreage of 2 milion hectares in 2003.08 Sunflower i
‘mainly clad in Karnataka Maharashera and Andhra Pradesh, which together acount
for85 percent ofthe national acreage The sriower seed matket estimated at
'5000metic tonnes ts valued a NR 900 millon (USD 195 millon), Sunfower sed is sold
in.24g packets inthe Incan market.
Mae
‘Maize ranks asthe third most important food gran rp nina ater ice ana wheat
in ation to being a ood grain crop, mae aio enjoys high demand inthe Westock and
‘out eed markets and inthe starch industry Maes culivated onan estimated
7.4milon hectares Production estimated t 147 milion tonnes (2003-08, Some oftheRabobank
Indian seed industry
“moder growth tes oS
‘paddy cueton Sa
Poitay mustard secures or 18% of
"Salseadrequement te ny
vege
pbc Dreduaretes
November 2006
sey states invored in maize clthvation ate Madhya Padesh Bar Rajasthan Uttar Pradesh
Rajsthan Karnataka ang Andra Pradesh The total maize sed market estimated a
34.000tonnes.
Sorghum
Indi the thd longest proce of sorghum nthe work afte the US,(115 millon tonnes)
2nd Nagea(@ rlon tonnes ndlan sorghum production estimated t 95 millon tonnes
Production involved an acreage of 75 milion hectares in 200304 The ages single market
for sorghum seed s Maharastra which has. 270 percent share ofthe area under
reduction tis flowed by Madhya Pradesh Kamala Tam Nadu ard Anda Pradesh
The sorghum seed markets estimated at 1500 tonnes.
Pear! milet
India's the worl largest producer of pear ile. Pea millet sa drought tolerant crop
thats used as grain and for fdr purposes mn land canton. The estimated acreage
‘unde pear mln nia 103 illonhectanes Production stood 3 1.8
In 2003.08 The maln producing states are Rajasthan, Guat Maharashtra, Uttar Pradesh
and Haryana Te peal mile seed markets estnated at 13500 tonnes pet annum
Hybrid rice
Hybrid ice has demonstrated a 1510 20 percent yd increase over he igh yelsing
inbred varieties nda Hytvdice esearch has been cae Out in forthe pst
11 years and 16 to 20 publc-bred hybrids have now been released the lain market.
Propsitay hybrids area recent entrant to the lian hybrid ice market an have now
'acen matte forthe last couple of ears Hyd rice has been mote widely accepted in
the noth of nathan the south The prowitary market for hid ice ina is
estimated at 8500 tonnes The market has posted high growth ate of between 1S nd
20 percent per annum,
Mustard
ines mustard acteage spans milion hectares and requies 16000 tonnes of sed.
Basia juncea hybrids account for approxmatly 90 percent of the market and Basia
napus account fr the remainder Most ofthe musted matket in Indias dominated
open polinated varies Mustard arc rapeseed rodution is estimated t 583 mil
tonnes (2003-08) The main producing states are Paasthan, Uttar Padesh Haryana Madhya
Prades ana West Bengal The proprietary sed martin mustard estimated at
5.500tonnes per annum
Vegetables
ines the world Second lagest produce of vegetables ea reduced 805 ion tannes
cof vegetables in 2008 hich amounts to 393 percent share of the world vegetable
production that otal 85.8 millon tonnes Vegetable production takes place inal the
"tates ans undertaken dung al thee seasons ofthe yea The market s dominate by
puble-bed open pelirates vanes The popular hybed craps ae toms, chil ofa,
‘cabeage caulfiower trina watermelon and gourds The markets estimated to be worth
'NR6 bili [USO 130 milion,Rabobank
Indian seed industry
November 2006
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