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Country Report

The Indian Seed Industry

Paresh Verma
General Secretary National Seed Association of India

Contents
1. 2. 3. 4. 5. 6. 7. Indian agricultural scenario Evolution of seed industry Current status of Indian seed industry Impact of new technology Regulatory environment Challenges and opportunities Summary

Indian Agricultural Scenario
• Indian economy has grown steadily –7% in last 10 years; 9% in last 3 years • Low and inconsistent growth in agricultural sector – it is dependent on the monsoon • Agriculture contributes 18% to GDP but 60% population lives off agriculture • Mostly small marginal farms with low inputs • Yield levels are generally much lower than world averages • Total cropped area is 197 million hectares • Highest area under irrigation (40%)

Total Cropped Area
Crop Cotton
Others Cotton Corn Millet Vegetables Sunflower Sugarcane Potato Groundnut Sorghum (Kh)

Area (M Ha) 9 7 9 7 1.4 4 43 5 26.4 3.4 5.3 6.4 8.1 6.6 1.3 4.3 49.7

Corn Millet Vegetables Sunflower Sorghum (Kh) Paddy Sorghum (Rabi) Wheat

Soyabean Gram Mustard Tur Wheat Sorghum (Rabi)

Tur
Paddy

Mustard Gram Soyabean Groundnut Potato

Hybrid crops Total Area is 196.90 Million Hectares.

Sugarcane Others

15 billion. is continuing to increase • Tremendous pressure to increase agricultural productivity • New technologies must be deployed • Seed industry will continue to play a key role . growth flat over last 10 years • Population.Indian Agricultural Scenario • Green revolution helped India gain self sufficiency in food production • Agricultural production increased from 50 million tons to 227 million tons. currently at 1. however.

00 Oil Seeds Production (million tons) Quality seeds distributed (thousand tons) 50 350 571 854 1100 6 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08 50.02 108.98 9.82 .61 18.39 195.92 227.42 129.30 5.63 9.76 7.01 9.37 18.84 9.40 28.16 6.65 31.60 4.82 82.Agriculture Production & Quality Seed Distribution Year Food Grain Production (million tonnes) Cotton Production (million bales 3.04 5.59 176.

Contribution of the private sector in hybrid seed market (2008) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Field crops Vegetable crops Private bred Public bred C C orn ot to M So i n rg llet hu Su S m nf SG lo w e R r ic e To Chi W m lli / m at o e G lo ou n Br rds in j O al kr a .

1963 – Seed Act. Seed Rules. 1968 – National Seed Projects Phase I (1975) Phase II (1981) Phase III (1988) • Supported by World Bank • 13 State Seed Corporations were established – New Seed Policy. 1988 . 1966.Evolution of the Indian Seed Industry • Key milestones – National Seed Corporation.

1960s-1980s Minimal private sector participation R&D in public domain Restrictions on germplasm exchange. . foreign ownership.Evolution of the Indian Seed Industry Current status Post-NSP 1988 Seed industry boomed as a result of several Govt. etc. initiatives Foreign direct investment allowed and encouraged Imports of improved varieties and breeding lines liberalized Trade regulations liberalized Private sector accounts for 80% turnover in seed Almost 1/3 companies have a global technology/ financial partner Private seed companies are spending 10-12% of their turnover in R&D R&D budget of medium sized companies is growing @ 20% p.a.

Current status • Indian seed market. wheat. is the 6th largest in the world • It has grown @ 12% compared to <5% growth of global seed market • Private sector not investing in self pollinated crops to develop and promote new varieties • Seed replacement ratio continues to be low – Large acres of self pollinated crops – rice. legumes.1 billion. estimated at US$1. – Low hybrid adoption rates in most crops due to marginal growing conditions and/or subsistence farming . etc.

Current status Medium and small sized companies are making investments in research and seed processing infrastructure .

Current status • More than 40 seed companies have Govt. recognition for their R&D units • Several Indian companies have introduced GM trait in their germplasm • Indian companies are investing in innovative biotechnology research .

total-585) **includes trait value Kharif sorghum SSG * packets of 450 g .000 30.500 15.Field crops: Hybrid seed market Crop Cotton Corn Rice Millet Sunflower Kh Sorghum SSG Market size (MT) 23 million* 65.000 6.500 5.000 % Hybridization 80 47 <3 43 > 95 > 95 > 95 Rice (45) Corn (115) Cotton** (350) Cotton Corn Rice Millet Sunflower Crop wise market share (in million US $.000 18.

sale in ‘000MT (corn. sale % inc. in Est. rice) and million packets (cotton) Crop Cotton Corn Rice Est.Growth trend of key field crops’ hybrid seed market Est. sale Est. sale in 2005 in 2008 3 years in 2013 14 45 9 23 65 19 65% 45% 110% 30 80 40 .

Vegetable crops: Hybrid seed market Crop Tomato Okra Chilli Cauliflower Cabbage Gourds W melon Cucumber Egg plant Others Market size (MT) 50 900 40 40 50 130 70 25 25 % Hybridization 20 23 14 11 85 15 40 3 8 Tomato W melon (7) Gourds (8) Cabbage (9) Cauliflower Chilli (12) (16) Tomato (27) Okra Chilli Cauliflower Okra (18) Cabbage Gourds Water melon Crop wise market share (in million US $. total-110) Cucumber Egg plant .

Growth trend of vegetable hybrid seed market .

Growth trend of vegetable hybrid seed market .

Impact of new technology • Bt cotton is the only GM technology approved in India • First three hybrids of Bt cotton were approved in 2002 • A total of 4 events have been approved – – – – Bollgard (Cry1Ac) from Monsanto Event 1 (Cry1Ac) from JK Agrigenetics Fusion Bt (Cry1Ac+Cry1Ab) from Nath Biogene Bollgard II (Cry1Ac + Cry2Ab) from Monsanto • More than 150 Bt cotton hybrids are now available for the farmer to choose from .

10.Impact of new technology • Income of farmers growing Bt cotton has gone up by Rs.000 to Rs.000 per hectare • Pesticide use has decreased significantly reducing health hazards to farm workers • Increased access of Bt cotton farmers to social benefits . 20.

5 million bales in 2002-03 to 31 million bales in 2007-08 • India has become the second largest producer and second largest exporter of cotton in the world .Impact of new technology • More than 80% of the country’s cotton growing area is under Bt cotton • Cotton production has increased from 12.

1983 (Seeds Bill 2002 is pending Parliamentary Approval) – Protection of Plant Varieties and Farmers’ Rights Act.Regulatory framework – Seed Act. 1914 – Plants. 1986 – Biological Diversity Act. 2002 – Destructive Insects and Pests Act. Fruits and Seeds (Regulation of import in India) Order 1989 – Cotton Seed Acts in some states – Export/Import policies and Regulations . 1966 and Seed Control Order. 2001 – Environment Protection Act.

Regulatory Challenges • New Seed Bill: + Intends to improve the regulatory framework to encourage the growth of the seed industry + Self certification through registration of seed producers and accreditation of seed testing labs .Price Control .Duplication of agronomic testing of transgenic hybrids/varieties under EPA and New Seed Bill .Complete exemption of farmers form the operation of the Seed Bill .No provisional registration of transgenic hybrids/varieties .Performance label and compensation .Registration after 2 years of VCU testing .

Regulatory Challenges • PPV & FR Act. 2001: + Good beginning to protect the rights of the breeders . 1991 .Security of the material during field testing for DUS still to be established .Specific issues still need to be resolved to address the concerns of the industry (e.Gives farmers the right to sell unbranded seed of protected variety . extant hyrbids/varieties) .Allows “innocent infringement” by farmers .Does not conform to UPOV.Compulsory licensing and compensation .g.Efficacy of enforcement still needs to be established .

Regulatory Challenges • Biodiversity Act. 2002 – Restricting exchange of germplasm even of those crops which are covered in the ITPGR • Price Control (through State Acts) – Arbitrary price controls based on political motivations – Disincentive to invest in research and infrastructure – Lead to cost cutting even in critical processes – could affect seed quality adversel • Export/Import regulations – Inconsistent and politically motivated for commercial seed – NBPGR retains a sample of seed incase of germplasm imports – Export of germplasm/research material not allowed in many crops .

Productivity challenges • Small marginal farmers with lack of awareness about new technology • Poorly managed or non-functional Govt. extension systems • Availability of institutional credit and crop insurance • Last mile gap (in remote areas) in the delivery / distribution channels • Restricted seed supplies due to negative impact of policy .

Increasing risk of drought Dryness index observed in 2003 Dryness index projected for 2050 Source: CICERO .

Productivity challenges • Abiotic stresses – Drought • Low or erratic rainfall in rainfed situations • Light soils with poor water holding capacity • Inability to irrigate enough or on time – Water logging • Poor drainage • Excessive rainfall – Sub optimal temperatures – Saline soils – Nutrient deficiencies .

Bacterial and Viral diseases – Sucking and chewing insect pests • Sub optimal agronomy • No or improper use of fertilizer • Sub optimal cropping systems • Poor weed management .Productivity challenges • Biotic stresses – Fungal.

82 1. 0.30 1 22 9 2 17 23 6 12 13 14 4 18 11 3 10 15 5 8 7 19 20 16 21 0.47 0. Doubled haploid.65 0.Non-GM applications of biotechnology • Use of Molecular markers – Stacking of traits – Increasing breeding gains – Accelerating product development cycles – Quality assurance – Protection of IP 10MW • Functional genomics • Other tools viz. etc.00 Coefficient .

GM applications of biotechnology • Success achieved – Bollworm resistance in cotton HT • Other traits of importance – Weed management – Insect resistance in other crops – Nutritional enhancement – Disease resistance – Drought tolerance – Nutrient stress tolerance – Yield enhancement Drought NUE Biomass .

Technologies under development in India Crop Cabbage Castor Cauliflower Corn Cotton Eggplant Groundnut Mustard Okra Potato Rice Tomato GM Trait(s) insect resistance insect resistance insect resistance insect resistance herbicide tolerance insect resistabce herbicide tolerance Insect resistance disease resistance male sterility insect resistance disease resistance insect resistance disease resistance .

Key growth drivers • Introduction of new technology • Increased hybrid adoption in all vegetable crops but esp. okra and chilli • Increased hybrid adoption in rice and corn • Improved agronomy in cotton • Investment to innovate and create value for the farmers . tomato.

through financial incentives.Way forward • Continued focus on customer requirements – Product fit – Economic benefit – Freedom to choose • Conducive regulatory environment – Minimal regulation and compliance – Freedom to price based on ‘value to customers’ – Harmonization of various laws and Uniform enactment of central laws across all states – Encouragement. for investment in infrastructure .

Way forward • Increased investment in agricultural research – Public sector – for basic research – Private sector for applied research • Encourage R&D investments in private sector – Stronger IPR regulations – Equitable sharing of benefits to all stakeholders to ensure recovery of value added through intensive research – Financial incentives .

Way forward • Strengthening our education systems to ensure adequate availability of plant breeders • Capacity building especially to deal with the regulatory requirements of the new technology • Create successful public private partnerships – – – – Complementary in nature with no overlaps Clearly defined objectives and milestones Equitable resource and benefit sharing Based on mutual respect for each others’ capabilities – Clear agreement on IP issues .

Sorghum. Pigeon pea) IRRI’s hybrid rice development consortium .Public private partnership Conventional breeding: Basic Germplasm improvement Development of inbred lines Development of Hybrids Seed production & marketing Public sector Private sector ICRISAT’s hybrid parent development consortia (Pearl millet.

Public private partnership Biotechnology: Transgenics Molecular marker technologies (no bio-safety involved) Discovery research Technology development Biosafety evaluation / deregulation Breeding & product development Seed production & marketing Public sector Private sector .

Summary • Indian seed industry has evolved to become the sixth largest in the world • It is poised to grow at a rate faster than the global rate (huge opportunity to increase SRR) • It has made tremendous contribution to increase productivity through development of superior hybrids • It is investing in research and infrastructure • It has spearheaded the introduction of new technology (Bt cotton) .

Summary • Indian seed industry needs policy support to make even bigger contributions in the future: – Encouragement for investment in research and infrastructure – Minimal regulation and compliance – Freedom to operate based on free market principles – Streamlining of regulatory processes to accelerate the development and introduction of new GM technology • Robust PPP models are needed to better serve the farmers by removing the various productivity constraints through technological interventions .

Thank You .