Indian seed industry- The

journey so far and beyond

M. Prabhakar Rao,
President, National Seed Association of India &
Managing Director, Nuziveedu Seeds Limited

November 2015
 1960’s
1963: National 1970’s
Seed
1972: National
Corporation
commission on
1966: Seed Act
Agriculture
1969: Seed Rules
Journey so far.. 1969:HYVP 1970s- Private
Key Milestones 1990’s
sector started taking
bigger role
1991- 1975-80:
Liberalization SSCA,SSC,& STLs
reforms
1995- TRIPS &
WTO
1980’s
1996-GM crop
1980s-Rapid
trials
growth of private
sector- more focus
on hybrids
1988-New Seed
policy
2000 & present
2001:PVPFRA Act
2002: GM crops
commercialization
2002-Biodiversity
Act
2004- New Seed Bill
Source: NSAI data
 Key legislations/Policies that shaped Indian seed industry

Seed Bill 2004

(to be legislated)
New policy on Seed • Compulsory
Development,1988 registration of seed
• Encouraging offered for sale
commercial seed after VCU testing
production by • Compulsory
Seed Control order private sector disclosure of
1983 • Import of performance in line
• License for selling, vegetable and with Consumer
exporting and flower seeds under Protection Act.
importing seeds OGL • National seed
Seed Act 1966 registry
• Powers to State • Time-bound Plant
• Compulsory Governments to quarantine/Post
labeling and regulate seed trade entry quarantine
voluntary under EC act 1955 system
certification
• FDI permitted in
• Focus on seed seed sector since
quality regulation 1987.
• To cover notified
crops and varieties
National Commission on Agriculture, 1971 recommended promotion of private sector in seed production. The National
Seed policy 2002, encourages R&D in private sector and sets the context for growth of private sector in line with Seed Act,
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PVPFRA. Source: NSAI data
 Key drivers for growth of seed industry
Diverse agro-climatic conditions comprising tropical, sub-tropical & temperate climates
at different levels of humidity and temperatures, providing congenial atmosphere to
develop improved seeds for all important food grains ,commercial crops and vegetables.
Second largest cropped area in the world at 198 mha

Important Centre of genetic diversity of major foodgrains, vegetables, horticultural

crops endowed with rich natural resources and climatic diversity
Extensive National Agricultural Research System comprising ICAR and SAUs and an
equally vibrant private sector R&D and technology development system

Skilled and trained manpower in Plant breeding, Seed technology, Agronomy,

Biotechnology, Engineering, Information technology, etc. including Postgraduates and
PhDs.

Systematic plant breeding, production, product evaluation and release processes driven
by both Public and private sectors

Supportive Government policy and regulatory environment for creation of a vibrant seed
sector and a huge unmet demand for quality seed of improved varieties & Hybrids

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 Leveraging Strengths in R&D

Well developed R&D –Institutional capacities in public sector, private sector

and international agencies
• National Agricultural Research System (NARS), comprising institutions of Indian Council of
Agricultural Research (ICAR) and State Agricultural Universities
• International Research organizations under CGIAR- IRRI, ICRISAT,CIMMYT
• Private sector R&D of Domestic Indian seed companies and MNCs

Large private sector firms more active in breeding and development of

hybrids in Corn, Pearl millet, Sorghum, Rice, Cotton and several vegetables.

Public sector seed corporations and cooperatives focus on production of food

grains (Cereals, Oilseeds and Pulses)

Small and medium private sector seed companies active in multiplying and
distributing varieties developed by private and public sector breeding system.

Elaborate VCU testing system of NARS and private sector Product evaluation
and technology development programs

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 Seed production Vs Food grain production
300 4

~6X growth in food 280

production and 257

3.5 3.5
250
~7x growth in 242
Quality seed 3 3
production
200 197 2.57 2.5
176
Mil tons

150 2

130
1.5
108
100
82
1
0.86
50 50
0.6
0.5

0.2
0 0 0.02 0.05 0
1950 1960 1970 1980 1990 2000 2010 2014 2020
Food Grain (mil tons) 50 82 108 130 176 197 242 257 280
Seed Production ( million tons) 0 0.02 0.05 0.2 0.6 0.86 2.57 3 3.5

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Source: Planning commission data 2013
 Preference to quality of seeds of improved varieties-SRR growth

CAGR of SRR (2001-2011)

20%

15%

10%

5%

0%
Wheat Rice Gram Blackgram Greengram Redgram Groundnut Soybean

Sl No. Crops 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

1 Wheat 13 18 13 16.5 17.6 22 25 27 32 33 33

2 Paddy 19 19 19 16 21 22 26 30 34 38 40
3 Gram 4 4 7 10 9 9 12 14 22 18 19
4 Urd 16.55 17 20.5 17 16 14 24 26 31 29 34
5 Moong 13.5 13.8 19.5 12.3 12.5 20 22 22 23 27 30
6 Arhar 8.7 8.8 13.6 9.8 10.5 11.5 16 16 28 17 22
7 G Nut 5 5.5 11 7 7 9.8 14 17 23 24.5 22.5
8 Soybean 12.4 12.5 15.6 27 28.8 28.4 33.4 35 38.95 36 53

More than 40%-60% demand for Improved Quality

Seed to be met Source: Seednet.gov.in
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 Indian seed industry- A snapshot

8 CARE Report 2015

 Value capture- Hybrid seed industry

Adoption of Hybrids in Corn (60%) Adoption of Hybrids in Rice (5.2%)

9 CARE Report 2015

 GM technologies in India

Bt Cotton, first and only GM Crop commercially released in India in 2002

Elaborate Biosafety mechanism institutionalized for evaluation, approval and release of GM crops
under Cartagena protocol. Given below are GM technologies launched in India

• Mon 531-Cry 1 Ac - by Monsanto

• Mon15985-Cry2Ab2 & Cry 1 Ac- by Monsanto
• Event-1 Cry1 Ac by JK Agrigenetics
• GTL-GFM311-7– Cry1Ab-Ac Fusion protein by Nath seeds/Global Transgenes
• MLS 9124–Cry1C by MetaHelix

Technology well accepted by the farmers leading to 93% of the area converted into GM Cotton in a
span of a decade. (2002-2012)

From 2002 to 2015 : Production increased from 2.0 to 3.9 million bales and productivity from 302 kg
lint/ha to 550 kg lint/ha.

10 Source: ISAAA report 2014

 GM Cotton adoption in India
GM crop adoption in India
14 100%

93% 94% 94%

90%
88%
12 85%
81% 81% 80%

10 70%
66%
60%
8
50%
6 42%
40%

4 30%

20%
2 15%
10%
6%
0 1% 1% 0%
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Total Cotton area (Mil ha) GM crop area (Mil ha) % adoption

Source: ISAAA https://www.isaaa.org/resources/publications/biotech_crop_profiles/bt_cotton_in_india-

a_country_profile/download/Bt_Cotton_in_India-2002-2014.pdf
CCI data- http://cotcorp.gov.in/current-cotton.aspx?pageid=4
11 Source: ISAAA report 2014
 GM Cotton-Benefits & challenges
Yiedl kg lint/ha Production-million bales
600 50
554 552 537
500 521 524 503 517 518
470 472 493 40 40
36.5 37.5
400 399 33.9 35.3
30.7 29 30.5 30
28
300 302 24.3 24.1
20
200 17.9
13.6
100 10

0 0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Challenges:
• Yield stagnation after first 4 years (530-550 kg lint/ha). Indian Yields lower than global
average (770 kg lint/ha) & much lower than advanced Cotton growing countries (1000-
2000 kg lint/ha).
• Complaints of High cost of seeds due to high trait value by farmers
• Increasing labour costs affecting Cotton production/Relative profitability.
• Adoption of hybrids also increased from 40% in 2002 to 95% presently in tandem with GM
crops.
• Challenges to resistance management. Resurgence of minor pests and epidemics
increasing crop protection costs again to pre Bt era.
• Disputes among parties of technology licensing agreements leading to demand for
regulation Source: CCI & ICAC data
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 Outlook for adoption on new technologies

New Biotechnologies including GM technologies required for addressing our

productivity challenges within the ambit of biosafety and economic rationale.

Extensive testing including biosafety testing essential for getting approvals is necessary.

In balance with overall public interest and farmer interests, open access to technology
to all eligible industry participants in line with ITPGRFA recommendations is essential.

Promotion of R&D on Molecular markers and New Plant breeding technologies (NPBTs)
which can produce desired heritable outcomes without gene/genetic modification.

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 Significant achievements for the industry
• With Public sector system laying foundation, supported by CGIAR and Private sector, a
strong R&D setup developed for the seed industry.
R&D • An extensive VCU testing, Biosafety and PVPFR evaluation framework developed

• Since Seed Act 1966, A well organized institutional setup for Seed certification and
quality enforcement. Institutional setup for other enabling regulation under EPA,
PVPFR, NBA, etc.
Regulation • Affordable Seed pricing for providing quality seeds of improved varieties and hybrids
to farmers due to adequate competition

• Production capacities with state of the art Processing systems, Quality assurance,
Seed technology machinery , Seed protectants, Seed storage developed across the
Production country to cater to both domestic and global demand
& Quality • Seed testing laboratories & quality standards in line with Seed Act, OECD ,ISTA, etc.
systems

• Increased demand for High quality seeds of improved varieties and hybrids due to
superior performance led to increased SRR, hybrid & GM traits adoption
• Pan-India market & distribution channels.
Market &
• Systems and processes including seed testing, SPS measures, & international trade
Farmers
for servicing global markets well developed

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 Key challenges

Increasing labour and production and processing costs for seed companies

High entry barriers for access of advanced GM technology and traits for small and medium
seed companies

Limited resources for evaluation and VCU testing in certain crops and states

Non-uniform Price regulation in Bt cotton leading to market uncertainty. Also legal

disputes on this aspect.

Delayed rollout of OECD testing and international quality standard testing schemes leading
to competitiveness of Indian Seed exports

Delays and lack of synergy between seed testing , SPS and regulatory processes for exports

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 Future growth prospects

Potential for increase in area under hybrids Corn, Rice, several vegetables etc.

Scope for increased yields and seed rate enhancement in Cotton through HDP
agronomy

Significant potential to export quality hybrid seeds to other Asian countries and Africa

Ideal destination for quality hybrid seed production to the Americas and Europe

Increasing seed replacement rates opening up potential for quality seed of improved
varieties in OPVs in cereal, pulses etc.

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 Way Forward- Strategic Actions required

• Strategic vision to unlock Indian seed industry potential with a coordination

action between all Stakeholders to be developed
• Region-wise action plans for improvement in SRR and Varietal replacement of
Planning all crops to break the yield plateaus

• Working for harmonization of regulations and inclusion of seed industry issues

as a part of the bilateral and multi-lateral agenda
• Simplified Import and export processes including single-window clearances
including support/subsidies for Refrigerated logistics.
International
• Enabling policy for realizing the potential as a seed production destination for
trade
relevant countries with similar agro-climatic requirements

• Public private partnership models to further deliver the public sector R&D
output to farmers
• Development of knowledge networks for sharing of information /
Biotechnology resources across seed industry
R&D • Simplified processes to be developed for utilization of genetic/bio-diversity
without impact of business potential

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 Way forward: Key strategic actions
• Strengthening VCU testing and aligning with PVPFR DUS testing
• Public private partnerships , Accredited Private sector institutions for
development and increasing capacities of of Seed testing and evaluation
Evaluation & • Capacity enhancement of Government testing network for OECD testing and for
testing preparedness for the New Seed Act

• Development of Standard setting organizations and Industry licensing Platforms

for licensing new technologies by DAC in collaboration with industry
• Technology licensing to be regulated by the Govt. applying FRAND guidelines to
IPR & get equitable to all the stakeholders i.e., technology provider, seed companies
Technology and farmers
licensing

• Balancing market requirements of increased demand for hybrid seeds &

technologies/traits with a rational price control regime
• Institutional support to farmers for soil health management, Adoption of
improved Agronomies in PPP mode
Markets &
• Enabling market driven value chain integration with farmer focus ultimately to
Farmers
make agriculture profitable to farmers

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Thank you

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