MANTHAN REPORT 2019

REPORT 2019

SEED SECTOR

National Institute of Agricultural Extension Management (MANAGE)

Rajendranagar, Hyderabad, 500030
CONTENTS

• Introduction ……………………………………………………………………………………. 2
o Overview of Indian Seed Industry …………………………………………… 2
o Overview of Global Seed Industry …………………………………………… 4
• Mergers and Acquisition in Global Seed Industry ……………………………..6
o Bayer-Monsanto ……………………………….……………………………………. 6
o ChemChina-Syngenta ……………………………….…………………………….. 7
o Dow-DuPont ……………………………….………………………………………….. 8
o BASF-Bayer ……………………………….……………………………………………. 8
• Disinvestment, Diversification and the Chinese role ………………………….9
• GMO Crops ……………………………….……………………………….…………………….. 10
o Indian Scenario ……………………………….……………………………………… 10
o Global Scenario ……………………………….…………………………………….. 11
o Advantages of GMO ……………………………….………………………………. 13
o Disadvantages of GMO ……………………………….………………………….. 14
• National Seed Corporation ……………………………….……………………………….16
• State Seed Corporation ……………………………….…………………………………… 17
• Seed Production in India ……………………………….…………………………………. 18
• Policy Support from the Government ………………………………………………. 19
• Scope of Growth in India Seed Sector ……………………………………………….20

pg. 1
INTRODUCTION

Seed is a material which is used for

planting or regeneration purpose. It can
be a fertilized ovule, bud, stem cutting,
tuber etc. used as a propagating material.

In early days of agriculture,

farmers used to sow their own
seeds for crop cultivation. But the
increasing demand for food crops
and following scientific
advancements, has led to the
emergence of the seed industry
which supplies superior seed
material with better growth and
yield characteristics.

OVERVIEW OF INDIAN
SEED INDUSTRY
The Indian agricultural sector has
grown immensely during the last few
decades, keeping pace with the rising
food demand. Major growth in
agricultural production is a result of
improving productivity, as land area
under agriculture has been declining
over the years.

pg. 2
The Indian seed industry is a relatively
mature industry, with both the private
and public sectors playing important
roles in seed production. Seed
production for commercial purposes
were initially carried out by public
seed agencies like National Seed
Corporation (NSC), State Farms
Corporation of India and State Seed
Corporations (SSC). High Seed
replacement Ratio and demand for
quality seeds by farmers led to a rapid
development in the private sector
The Indian seed market has witnessed
a major restructuring as a result of the
implementation of some progressive
policies by the government. Seed
Development, 1988 and National Seed
Policy, 2002 have helped in
strengthening the Indian seed industry
in the areas of R&D, product
development, supply chain
management and quality assurance.
Owing to this, India has emerged as the
sixth largest domestic seed market
across the globe. Moreover, the active
participation of both, public and
private sectors has also played a vital
role in laying a strong foundation of the
industry.

Value
USD 2.21
Billion
(2018)

14% CAGR
CAGR Indian Seed 6.4%
during Market during
2018-23 2019-24

To reach
USD 8.1
Billion by
2023
Source: Mordor Intelligence

pg. 3
 TOP INDIAN PLAYERS:
MAJOR INDIAN PLAYERS (2016)

Mahyco Ltd. 115

Dow-DuPont Inc. 124

National Seeds Corporation Ltd. 125

Kaveri Seed Company Ltd. 137

Nuziveedu Seeds Ltd. 185

0 20 40 60 80 100 120 140 160 180 200

Revenue (USD Million)

Source: www.accesstoseeds.org

GLOBAL SEED INDUSTRY OVERVIEW

The global seeds market reached a value of more than US$ 66.9 Billion in 2018,
exhibiting a CAGR of around 7% during 2011 - 2018. The global seeds market is
further expected to grow at a CAGR of more than 6.6% during 2019 - 2024,
reaching a value of more than US$ 98.1 Billion by 2024.

pg. 4
One of the major trends which has
influenced the seeds market is the
significant shift in farming practices
worldwide. Nowadays, an increasing
number of farmers buy commercially
produced enhanced seed varieties as
opposed to using seeds from the last
harvest.
Improved seed products are being
delivered to farmers faster than ever
MAJOR GLOBAL PLAYERS
Monsanto (US)
Corteva Agriscience (US)
Syngenta (ChemChina) (China)
Limagrain (France)
Bayer (Germany)
KWS (Germany)
Sakata Seed (Japan) 558
DLF (Denmark) 542
Long Ping High-Tech (China) 492
Rijk Zwaan (Netherlands) 480
before. The level of investment in
research and development, rate of
annual yield gains and overall crop and
seed values are all at record levels.
Adding all this on top of a growing
global population and the pressure to
maintain that growth while sustaining
the environment creates excitement,
competition, investment and change in
the seed industry.
10913
8143
2826
1900
1805
1596
Sales 2017 (US$)
Source: Agropages
pg. 5
 MERGERS AND
ACQUISITIONS

Since 2012, a sustained downturn in One of the popular justifications is to

the world Cereal market, coupled with
slow organic growth, has made it
difficult to maintain a consistent
progression. The market slump
compelled multinationals to look at
opportunities for collaboration. This
resulted in three major mergers &
acquisitions in the seed industry,
namely, Dow AgroSciences and
DuPont, ChemChina and Syngenta, and
Monsanto and Bayer.
Interestingly, most of the mergers and
acquisitions happened simultaneously.
maintain the global competency in the
markets. At the base the intention
behind this is global dominance and
control over global agricultural sector.
If you look closely at this consolidation,
this is basically the integration of the
expertise in the seed and agrochemical
segments. All the above major
companies started with agrochemicals
and later moved into seed sector. This
consolidation gives them control over
the value chain and gives them global
market access.

Bayer and Monsanto Merger agreement

In this definitive merger agreement, Bayer will acquire Monsanto for USD 128 per
share in an all cash transaction (63 Billion USD). This transaction brings together two
different, but highly complementary businesses. The combined business will benefit
from Monsanto’s leadership in Seeds & Traits and Climate Corporation Platform along
with Bayer’s broad Crop Protection product line across a comprehensive range of
indications and crops in all key geographies.

pg. 6
The combined agriculture business will have its global seeds and Traits and North
American
commercial
headquarters in St.
Louis, Missouri.
Its global Crop
Protection and Crop
Science HQ in
Monheim, Germany,
and an important
presence in Durham,
North Carolina, as
well as many other Source: Press release, Monsanto. Image
courtesy: PotatoPro
locations throughout the U.S and around the world.

ChemChina acquiring Syngenta AG

In June 2017, ChemChina, a state-

owned enterprise with full name as
China National Chemical
Corporation, purchased Syngenta, a
global Swiss agribusiness that
Source: Fortune, Xinhua. Image courtesy: China Daily markets seeds and agrochemicals,
for 43 billion U.S. dollars, the largest transaction ever clinched by a Chinese company
overseas. It was prompted by China’s desire to use Syngenta’s portfolio of top-tier
chemicals and patent-protected seeds to improve domestic agricultural output.
Syngenta sells its products in more than 90 countries under such brand names as
Acuron, Axial, Beacon and Callisto. It sells seeds such as cereals, corn, rice, soybeans,
and vegetables.

pg. 7
Dow Chemical and DuPont Complete a $130 Billion Merger
On September 1, 2017, Dow and DuPont have completed the merger agreement to
form DowDuPont™.
The new company
has dubbed its
agriculture division,
which will focus on
seeds and crop
Source: Fortune, Chemistry
protection, Corteva world. Image courtesy: American
Agriscience, and its headquarters will be Wilmington, Delaware. Chemical Society

DowDuPont’s materials science division, based in Midland, Michigan, will retain the
Dow name and red diamond logo. It will focus on performance materials and
coatings, packaging and specialty plastics, as well as ‘industrial intermediates and
infrastructure’ to further manufacturing processes, and more.
Meanwhile, DuPont is the new name of DowDuPont’s third spinoff, which is its
specialty products division.

BASF Acquires Vegetable seeds business from Bayer

In August 2018, BASF closed the
deal with Bayer’s global vegetable
seeds business, mainly operating
under brand name Nunhems. The
acquired division comprises of 24
crops and 2600 varieties. It
includes strong R&D and breeding
systems with over 100 breeding
systems for 15 crops. This
acquisition strengthens BASF’s portfolio and it is now among the big four all across
the country competing with major players in seeds division. The all-cash purchase
price amounts to a total of €7.6 billion, subject to certain adjustments at closing.

pg. 8
DISINVESTMENT,
DIVERSIFICATION &
CHINESE ROLE

These major M&A have caused a lot of disruption in the global agriculture industry
by generating a divestment and business restructuring. In the seed industry,
Syngenta sold its companies in Oahu and Kauai, Hawaii, to Hartung Brothers, its
global leek seed business to Hazera, the global sugar beet seed business to DLF, and
the three rapeseed varieties (SY4157, SY4166 and SY4187) in Canada to BrettYoung.
After divesting these businesses, Syngenta has plans to go for seed-oriented
acquisitions in the future. In early November, Syngenta acquired the Nidera seed
business of China COFCO International.

In the course of Bayer's acquisition of Monsanto, Bayer divested its seed business
(inclusive of LibertyLink® trait technology, rapeseed, cotton and soybean trait
researches) and herbicide business to BASF. The divested seed business in 2016 was
estimated to generate sales of EUR830 million. BASF, which never engaged in sales
of seeds, has now stepped into the seed market, and has become a global top 10
seed company with a significant market share.

The merger between Dow and DuPont has resulted in the divestment of the
Brazilian corn seed business of Dow AgroSciences, with a market value of $1.1
billion, which include Sementes & Biotecnologia Brasil Ltd., the right of use of
Brazilian corn germplasm and the brand of Morgan, as well as the brand of Dow
Sementes, within a specified time frame. This part of the divestment has been taken
over by China's Longping High-Tech via a collaboration with CITIC's agricultural
foundation. With the strong financial support, Longping High-Tech has also
successively acquired some Chinese seed companies, such as Hunan Golden Rice,
Hubei Huimin Agro Technology, Beijing Sunrise Agritech and Hebei Universe, and
thus become the largest Chinese native seed company. The consolidated sales of
the company is expected to propel it into the global top 10 seed enterprises.

pg. 9
GMO CROPS

INDIAN SCENARIO:
India has the world’s fifth
largest cultivated area under
genetically modified (GM)
crops, at 11.4 million hectares
in 2017. But unlike other big
growers, its entire GM crop
area is under a single crop,
cotton. Incorporating genes
from the Bacillus thuringiensis
or Bt soil bacterium coding for Image: news.agropages.com
resistance against Pink boll worm. The introduction of Bt cotton has been both
highly successful and controversial. The productivity of cotton increased from 191
kg per hectare in 2002-03 to 477 kg per hectare in 2017-18 and the production of
cotton has been increased from 86.21 lakh bales in 2002-03 to 348.88 lakh bales in
2017-18 due to adoption of Bt. Cotton. But it was also shadowed by controversy,
with a tangle of pricing and intellectual property rights (IPR) issues followed by
government price interventions and litigation.

An agreement to develop Bt brinjal was

signed in 2005 between Mahyco—
American agricultural biotech giant
Monsanto’s Indian Bt cotton partner—
and two Indian agricultural universities.
Following the study of biosafety data
and field trials by two expert
committees, Bt brinjal was cleared for
Image: The Financial Express commercialization by India’s top
biotech regulator, the Genetic Engineering Appraisal Committee, in 2009. But
nothing came of it, with moratoriums imposed by then Union environment minister

pg. 10
Jairam Ramesh and his successor Jayanthi Natarajan following opposition from civil
society groups and brinjal-growing states.

Dhara Mustard Hybrid (DMH -11) is a

GMO of Mustard crop developed by a
team of scientists Centre for Genetic
Manipulation of Crop Plants at Delhi
University. It is genetically modified
variety of Herbicide Tolerant (HT)
mustard. It was created by using
“barnase/barstar” technology for
genetic modification by adding genes Image: ISAAA
from soil bacterium that makes mustard self-pollinating plant. Genetic Engineering
Appraisal Committee has given the green signal for commercial cultivation of GM
mustard in the country. Several groups are opposing the GEAC’s decision as it might
affect allied agricultural activities, health of the people etc. If approved by the
Environment Ministry, GM Mustard will be the first genetically modified food crop
to be cultivated in India.

GLOBAL SCENARIO:
Two decades have passed since the advent of the Flavr Savr tomato (Solanum
lycopersicum), which was the first genetically modified (GM) food crop approved for
consumption in the United States. Subsequently, the commercial cultivation of GM
crops, including soybeans (Glycine max), maize (Zea mays), cotton (Gossypium
arboreum) and canola (Brassica napus), has expanded in at least 28 countries. The
leading countries are the United States, Brazil, Argentina, India, Canada, China and
Paraguay. In contrast, no GM crops have been commercially cultivated in the
Russian Federation, most of the EU countries (except in Spain, Portugal, Czech
Republic, Slovakia and Romania), New Zealand, the Republic of Korea, Japan and a
number of countries. One of major concerns surrounding GM crops is the possibility
that their transgenes, which are derived from an unrelated cross-incompatible

pg. 11
species, could have adverse effects on the environment and/or human health. Some
countries, represented by the United States, regulate GM crops on a product-basis;
others, including EU member states, adopt process-based GM crop regulations that
demand a more rigorous risk assessment throughout the process of GM crop
development. USA dominates the global share of Biotech crops with Brazil &
Argentina occupying a significant space in the global GMO market.

Global Area under GM Crops (million hectares) - 2017

Bolivia 1.3
South Africa 2.7
China 2.8
Pakistan 3
Paraguay 3
India 11.4
Canada 13.1
Argentina 23.6
Brazil 50.2
USA 75

0 10 20 30 40 50 60 70 80

Source: ISAAA

Image: GMO Answers

pg. 12
ADVANTAGES OF GM CROPS:
Food supplies become predictable
Food supply becomes predictable due
to better predictability of crop yields.
This gives us the ability to reduce the
presence of food deserts around the
world, providing a greater population
with a well-rounded nutritional
opportunity that may not have existed
in the past.
Nutritional content can be improved
Genetic modifications do more than
add pest resistance or weather
resistance to GMO crops. The
nutritional content of the crops can be
altered as well, providing a denser
nutritional profile than what previous
generations were able to enjoy. This
means people in the future could gain
the same nutrition from lower levels
of food consumption. The UN Food
and Agricultural Organization notes
that rice, genetically modified to
produce high levels of Vitamin A, have
helped to reduce global vitamin
deficiencies.
Genetically modified foods can have a
longer shelf life
Instead of relying on preservatives to
maintain food freshness while it sits
on a shelf, genetically modified foods
make it possible to extend food life by
enhancing the natural qualities of the
food itself. According to
Environmental Nutrition, certain
preservatives are associated with a
higher carcinogen, heart disease, and
allergy risk.
Medical benefits
Through a process called “pharming,”
it is possible to produce certain
proteins and vaccines, along with
other pharmaceutical goods, thanks to
the use of genetic modifications. This
practice offers cheaper methods of
improving personal health and could
change how certain medications are
provided to patients in the future.
Imagine being able to eat your dinner
to get a tetanus booster instead of
receiving a shot in the arm – that’s the
future of this technology.
pg. 13
It creates foods that are more
appealing to eat
Colors can be changed or improved
with genetically modified foods so
they become more pleasing to eat.
Spoon University reports that deeper
colors in foods changes how the brain
perceives what is being eaten. Deeper
red colors make food seem to be
sweeter, even if it is not. Brighter
foods are associated with better
nutrition and improved flavors.
DISADVANTAGES OF GMO CROPS:
GMO crops may cause antibiotic
resistance
Iowa State University research shows
that when crops are modified to
include antibiotics and other items
that kill germs and pests, it reduces
the effectiveness of an antibiotic or
other medication when it is needed in
the traditional sense. Because the
foods contain trace amounts of the
antibiotic when consumed, any
organisms that would be affected by a
prescription antibiotic have built an
immunity to it, which can cause an
illness that would be more difficult to
cure.
Genetically modified foods are easier
to transport
Because GMO crops have a prolonged
shelf life, it is easier to transport them
greater distances. This improvement
makes it possible to take excess food
products from one community and
deliver it to another that may be
experiencing a food shortage. GMO
foods give us the opportunity to limit
food waste, especially in the
developing world, so that hunger can
be reduced and potentially eliminated.
Farmers growing genetically modified
foods have a greater legal liability
Crops that are genetically modified
will create seeds that are genetically
modified. Cross-pollination is possible
between GMO crops and non-GMO
crops as well, even when specified
farming practices are followed.
Because many of the crops and seeds
that produce GMO crops are patented,
farmers that aren’t even involved in
growing these foods are subjected to a
higher level of legal liability. Farmers
that do grow GMO crops could also
face liabilities for letting seeds go to
pg. 14
other fields or allowing cross-
pollination to occur.
Genes go into different plant species
Crops share fields with other plants,
including weeds. Genetic migrations
are known to occur. What happens
when the genes from an herbicide-
resistant crop get into the weeds it is
designed to kill? Interactions at the
cellular level could create unforeseen
complications to future crop growth
where even the benefits of genetically
modified foods may not outweigh the
problems that they cause. One
example: dozens of weed species are
already resistant to atrazine.
Independent research is not allowed
Six companies control most of the
genetically modified foods market at
the core level. Because most GMO
foods are made from corn, wheat, or
soybeans, even food manufacturers
that use these crops are at the mercy
of the manufacturer’s preferences.
Over 50% of the seed producers that
have created the GMO foods market
prohibit any independent research on
the final crops as an effort to protect
their profits.
Some genetically modified foods may
present a carcinogen exposure risk
A paper that has been twice-
published, but retracted once as well,
showed that crops tolerant to
commercial pesticides greatly
increased the risk of cancer
development in rats. The information
from this research study, though
limited, has been widely circulated.
pg. 15
NATIONAL SEEDS
CORPORATION LTD.

NSC was established in 1963 to undertake production of foundation and certified

seeds. It is wholly owned by Government of India under the administrative control
of Ministry of Agriculture and Farmers’ Welfare. At present, it is undertaking
production of certified seeds of nearly 600 varieties of 60 crops through its
registered seed growers. There are about 8 farms and 12500 registered seed
growers all over the country who are undertaking the seed production programs in
different agro-climatic conditions. The turnover of the Corporation for the F.Y.
2017-18 was Rs. 841.55 crores.

Functions of NSCL

National Seeds Corporation plays a key role in the implementation of various

schemes of the Govt. of India like integrated scheme for “Oil seeds, Pulses, Oil and
Palm & Maize” (ISOPOM), “National Food Security Mission (NFSM)” and “National
Horticulture Mission” (NHM).
It also provides technical support to the seed producing agencies including State
Seed Corporations by imparting training of personnel engaged in the production of
seeds in that organization.
NSC is the nodal agency for the implementation of the Central Sector Scheme to
create infrastructure facilities for establishment of processing plants and storage
godowns in different states in the private sectors.
NSC also involves in exports of seeds across the world especially in SAARC and
African countries. The SAARC seed bank maintained by the Corporation with the
grant in aid of the Govt. of India holds larger qty. of seeds of different
crops/varieties that are meant to meet the demand that arises during natural
calamities like flood, drought etc.
NSC also takes care to meet the demand for quality seed of the farmers in the
interior parts of the country like North Eastern States & other hilly regions.

pg. 16
STATE SEEDS
CORPORATION (SSC)

The State Seeds Corporations are chiefly concerned with the production and supply
of certified seed, and within the state marketing of certified seed. State Seeds
Corporations have been established in order to reduce the workload of NSC.

Some main functions of SSC are:

• To implement National Seeds Program for State Seed Project.
• To undertake production of certified seeds of all those crops and varieties
which come under the purview of the Seeds Act and also quality seeds of
other kinds and varieties To process certified seeds on scientific and
commercial lines.
• To install, manage and operate processing plants and seed storage facilities.
• To organize supply of foundation seeds to Contract Growers out of its own
production.
• To undertake distribution of seeds to farmers at reasonable price and in
sufficient quantities to support agricultural production program of the State.

pg. 17
SEED PRODUCTION
IN INDIA

The Indian seed program largely adheres to the limited generation system for seed
multiplication in a phased manner. The system recognizes three generations namely
breeder, foundation and certified seeds and provides adequate safeguards for
quality assurance in the seed multiplication chain to maintain the purity of the
variety as it flows from the breeder to the farmers.

TYPES OF SEEDS
Nucleus Seed Breeder Seed Foundation Seed Certified Seed
• Handful of • Progeny of • Progeny of • Progeny of
original seed nucleus seed breeders seed Foundation seed
under the • Produced under • Responsibility of • Responsibility of
supervision of the mandate of NSC, SFCL, SSC, State government
originating ICAR State Agriculture • Distribured
breeder • Coordinated by Department and through SSC,
• It is 100% pure, SAU and 14 private seed Cooperatives etc
both genetically established producers • Tag: Azure Blue
and physically. centres across the • Tag: White
• Tag: No Colour country
• Tag: Golden
Yellow

pg. 18
POLICY SUPPORT
FROM GOVERNMENT

Green Revolution in late 60s became possible because of unflinching public and
political support and policy backing for new technology. The country again needs
similar support from all quarters, particularly in policy backing in the following
areas:
• Enabling environment to encourage R&D
• Seed production and distribution

The following recommendations of the “Stakeholders’ interface on GM food crops”

held in New Delhi in May 2011 should be positively considered:
• BRAI – Biotechnology Regulatory Authority of India (BRAI) should be made
operational soon. Regulatory system needs to be efficient and fool proof
without slowing down the release process
• Transparent procedures for testing, clearance and monitoring GM Crops
• Fiscal Incentives like Tax exemptions, Credit on soft terms, Duty free import
of equipment for R&D and processing
• Infrastructure building in PPP through nationwide mission mode approach
like TUFS
• The rapid growth of seed markets, strengthening of IPRs and liberalized seed
policies helped in the robust growth of seed industry in the last decade.

These factors have not only helped in significant increase in production of

certified/quality seeds, but also helped in significant growth of breeder and
foundation seeds also.

pg. 19
SCOPE FOR GROWTH
IN INDIAN SECTOR

Image: vpr.org

• Growing awareness among the farmers regarding various advantages of using

hybrid seed and healthy seed has led to increase in demand. In line with this,
many agricultural institutions, government and other associations have
emerged to improve R&D in seed industry.
• Policies and plans initiated by the government like National Food Security
Mission (NFSM), National Mission on Agricultural Extension and Technology
(NMAET), National Policy for Farmers (NPF), etc. are providing a push to the
growing industry. Seed Development Policy and National Seed Policy
encourage R&D.
• Trends towards contract farming, FPOs and other such collaborative societies
indicate commercialization of agriculture. This further adds to the demand for
good and improved seed varieties.
• Other growth-inducing forces, such as growth in income levels,
commercialization of agriculture, patent protection systems and intellectual
rights over plant varieties, have given a great push to the market.
• There is huge scope in seed business as seed replacement rate (SRR) in India
continues to be one of the lowest in the world.

pg. 20
REFERENCES

1. IMARC Group
2. ISAAA
3. Press release Monsanto
4. Business Wire
5. India Seeds
6. The Hindu
7. Xinhua.net
8. Fortune
9. AgroPages
10.Access to seeds
11.Mordor Intelligence

pg. 21
 An initiative by
Academic Committee
2018-2020
National Institute of Agricultural Extension Management (MANAGE)
Rajendranagar, Hyderabad: 500030

pg. 22