The future of seeds industry in
India seems to be very bright and it is expected that by 2015 it is likely to
reach Rs 10,700 crore mark from the current level of about Rs 7,000 crore. A
recent ASSOCHAM analysis says that the production levels of seeds in India are
likely to grow from the current level of about 40 million quintals to about 63
million quintals by 2015.
The share of organised sector is
just over half of the total seed industry at about Rs 3,250 crore while the
unorganised sector accounts for the remaining as the marginal farmers comprise
over 60 per cent of land owners in India and hence opt for cheaper seeds
considering the cost of quality seeds is relatively higher.
Andhra Pradesh, Bihar, Gujarat,
Haryana, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Uttar
Pradesh and West Bengal are leading commercial seeds producing states in India.
Limited availability of agricultural land, diverse use of agricultural crops
leading to rising food crop prices, subsidies by the government to use
high-yielding varieties to increase productivity and other multiple factors are
driving the growth of Indian seed industry.
The seed companies are required
to convince farmers to abandon conventional seeds in favour of high-yielding
hybrid seeds as the switch can help the farmers get high yields, fetch better
prices for their produce and almost triple their income.
The global industry for seeds is
likely to cross $71 billion by 2015 from the current level of about $60
billion. The ASSOCHAM analysis reveals that farmers were gradually shedding the
inhibitions about hybrids and shifting to the same as yields from varietal
seeds were falling significantly but many were still reluctant as hybrids were
not only expensive but also couldn’t be reused.
Cotton, corn, pearl millets,
mustard and rapeseed, rice, sorghum, sunflower and vegetable hybrid seeds are
gaining acceptance and this trend is being borne out of the variation in
revenue composition of private sector seed companies. With about 20 per cent
share, cotton is the biggest component in the hybrid seed market followed by
rice (15 per cent), wheat and vegetables (over 10 per cent each).
While there are a handful of
state seed corporations and Seed Farm Corporation of India, engaged in
production, distribution and marketing of high volume low value public
varieties, there are about 350 private sector producers and distributors and
about 300 trading firms.
Seasonality factors and risks
arising out of dependence on monsoon are certain key challenges faced by the
seed companies which can surely be dealt with through strong research and
development and products for both kharif and rabi seasons. Besides, there is
also need to use proper technology to develop products suiting evolving disease
profiles and climatic conditions.
A robust distribution network
providing information on seed performance and improvements is required to gain
greater acceptability. Besides, a proper inventory must be maintained to meet
the future demand and crop-rotation must be done to retain the customers.
