Indian seed

Industry

CONTENTS

Indian seed industry

Seed producing agencies: NSC, SSC
Private seed companies
Organisation in seed production
Policies favoring seed industry
PPP model in seed business
Export data of Indian seed
Loan facilities buy GOI, subsidies
Case study
Question and Answer

Indian
Indian Seed
Seed Industry
Industry

Indian seed market is one of the largest seed market,

dominated by open pollinated seeds.
Hybridization gaining pace
There are around 400 private players & 14 Government
organizations
Indian seed sector contribute to 16% GDP and also 10% in
export earnings.

Indian Seed market

Total Seed Industry is worth about 3 -3.5 USD Bn
Cereal industry is worth 6000 crore approximately
About 1/3rd is contributed by cotton worth 2000crores
Rice OP and hybrids contribute about 1000 crores
Millet hybrids contribute 500 Crore
Corn contributes around 800 crore
Vegetable seed industry is worth 1500 crore

THE WORLD SEED MARKET

50 Billion

(billions $)

50
45
40
35
30
25
20
15
10
5
0

15
Including
Total
Farmers
Seed
Saved Seed

TotalField
Seed

FieldSeeds
Seeds
Vegetable
Vegetable
Flower
Flower

34 Billion
Commercial
15
seed market
6.8 b$ Vegetable
Seed
27.2 b $ Cereal
Seed

15

20% vegetable seed

33%
80% Field
& other
seed
Commerci

al
Seeds

33%

Current facts of seed industry

The Global Seeds Market accounted for
$26.2 billion in 2015 and is poised to
reach $55.3 billion by 2022 growing at a
CAGR of 11.2% from 2015 to 2022.
As per World Seed Trade Statistics, India
has sixth largest size of domestic seed
market in the world, estimated to be at
about 1300 million dollars.
Indias share in global trade in seeds
(import & export) is of only about 37
million dollars.

Seed Export / Import

The export/import of seeds and planting

material is governed by the Export and Import

( EXIM) Policy 2002-07) Restrictions on export of
all cultivated varieties of seeds have been
removed w.e.f. 01.04.2002, except the following:
(i)breeder or foundation or wild varieties;
(ii)onion, cashew, rubber, pepper cuttings,
sandalwood, saffron, neem,forestry species
and wild ornamental plants;
(iii)export ofnigerwhich is canalized through
TRIFED, NAFED, etc.
(iv)groundnuts, exports of which is subject to
compulsory registration of contract with APEDA

The EXIM Policy reiterates that all imports

of seeds and planting material would be

regulated under the Plant Quarantine Order
2003.
Import licences would be granted by DGFT
only on the recommendations of DAC.
A small quantity of seeds sought to be
imported would be given to ICAR, or farms
accredited by ICAR, for trial and evaluation
for one crop season.

Source: ISF compilation based on official statistics and

international seed trade reports

Indian Export data: 2014-15 and

2015-16
Quantity (Metric
Tonnes),2014-15
Vegetable
crops

5,709

Flower seed 175

Value (USD Million),

2014-15
Vegetable
crops
Flower seed

44

Field crops

23,310

Field crops

30

Total

29,194

Total

76

During 2015-16 stood at Rs. 493.54 crores. Bangladesh,

Pakistan, United States, Netherland, and Japan were the

major markets of Indias fruits and vegetable seeds.
Source: ISF compilation based on official statistics and
international seed trade reports

India Seed Market Outlook to

FY2020

Source: Report of India Seed Market Outlook to FY2020 Rapid

Hybridization and Increased Government Support to Foster Future
Growth

SEED PRODUCTION AGENCY

There are three type of Seed Production Agency.
1) Public sector.
2) Private sector

National Seed Production Agencies : National seed corporation. (NSC)

State Farm Corporation of India. (SFC)
Indian Councils of Agriculture Research. (ICAR)
Indian Institute of Horticulture Research. (IIHR)
India Agriculture Research Institute. (IARI)

State Seed Production Agencies :State Seed Production. (SSC)

State Seed Certification Agency. (SSCA)
Private Seed Companies.
Global Players

Domestic Players

Nuziveedu Seeds

Rasi Seeds

Mahyco Seeds

Ajeet seeds

Monsanto India

Kaveri seeds

DuPont Pioneer

Nirmal seeds

National Seed Corporation :- (NSC)

It was initiated in 1961 under the Indian Council of Agriculture
Research. Later on 7 March 1963 it was registered as a limited that is
National Seed Corporation limited. And started functioning from July
1963.

Objective of NSC:1)To promote the development of seed industry in India.

2)To produce and supply the foundation seeds of various crops.
3)Now a day its started production of breeder seed also.

Present Functions of NSC :Production and supply of foundation seeds.

To maintain improved seed stocks of improved varieties
Production of certified seed where required.
Planning the production of breeder seed in consultation with ICAR.
Providing technical assistance to State Seed Corporation and private agencies.
Coordinating with the several State Seed Corporation for production of certified seed.
Conducting biennial surveys of seed demand.
Providing training facilities for the staff participating in seed industry development.
Providing Certification services to state lacking established

State Seed corporation :First Tarai development corporation (TDC) was started at
Pantnagar (U P). In karnataka Karnataka State Seed
Corporation started in 1976.
The main function of the KSSC.
1) Production and supply of foundation seed certification seed
of notified kind/variety
2) With in the State marketing of seeds.

State Seed Certification Agencies:In Karnataka, Karnataka State Seed Certified Agency is responsible for
seed certification. It was started in the year 1974. The KSSA make
field inspection and conduct seed test required for seed certification.
Function of SSCAs : They screen the application form of seed growers for seed

certification and decide on their fitness.

They also check and verify the appropriateness of the source seed

used for growing the seed crop under certification.

They carry out the field inspection.

 They certify the seeds found suitable and issue the. appropriate tag both for

certified and foundation seeds.

They guide the seed growers on production, processing and distribution of

seeds.
They conduct short courses on seed production for seed growers.
They participate in other activities help to the development of seed industry

that preparing, publishing lists of plant breeder, seed grower etc.

Assistance for strengthening of the existing seed corporations with respect

to above mentioned infrastructure facilities is also considered on case to

case basis.

 Each State has a State Seed Certification Board which

supervisor the activities of SSCA.

In addition, there is a Central Seed Certification Board

(CSCB) which adviser the State Govt and their SSCAS on the
maters of seed certification. The chairman of this board is
nominated by central Govt.

Private Seed Companies :1969, A number of private seed company are also engaged in seed
production. Top 10 seed companies of India 2015-2016
Nuziveedu Seeds
Agriquest
Rasi Seeds
Mahyco
National Seeds Corporations LTD
Kaveri Seeds
Krishi Jagran
JK Seeds
Nirmal Seeds India
National Seed Association of India: NSAI

Organization for Seed Production : For breeder seed production :- ICAR, SAUS, IIHR, there are 33

breeder seed purity located in Agriculture University and Institute

which has been established under National Seed Programm.
Breeder seed supplied to govt agencies including the NSC,SSC,

SFCI and reputed private seed companies.

Foundation seed SAU, NSC, SFCI, SSC, and private seed

company its certified by seed certified agency.

Certified seed NSC, SFCI, SSC, and private seed company.

Policy Initiatives in Seed Sector:

Enactment of the Seeds Act, 1966

Seed Review Team-SRT (1968)

National Commission on Agricultures Seed Group (1972)
Launching of the World Bank aided National Seeds
Programme (1975-85) in three phasesleading to the creation
of State Seeds Corporations, State Seed Certification
Agencies, State Seed Testing Laboratories, Breeder Seed
Programmes.
Seed Control Order (1983)
Creation of the Technology Mission on Oilseeds & Pulses
(TMOP) in 1986 now called, TheIntegrated Scheme of
Oilseeds, Pulses, Oil Palm and Maize (ISOPOM).

New Seed policy :- 1988

Librize the import and export of seed policies GOI announce the New
Seed Policy's.
Objective :1)Liberize the import of high quality seed includes Agriculture as well
as Horticulture produce.
2)A time bond programme to strengthening the plant quarantine
measure especially for post entry quarantine. (PEQ)
3) Insentives to encourage the domastic seed Industries.
4)To encourage the export of seed.

Production and Distribution Subsidy

Distribution of Seed Mini-kits
Seed Transport Subsidy Scheme (1987)
New Policy on Seed Development (1988)
Seed Bank Scheme (2000)
National Seeds Policy (2002)
The Seeds Bill (2004)
Formulation of National Seed Plan (2005)
National Food Security Mission (2007)

National Seeds Policy, 2002:

Thrust Areas
Variety development
Plant variety protection
Seed

production

Quality assurance
Seed distribution and marketing
Infrastructure facilities
Transgenic plant varieties
Import of seeds and planting materials
Seed exports
Promotion of domestic private sector seed industry
Strengthening of the monitoring system

Seeds Bill, 2004: Salient Features

Registration of kinds and varieties of Seeds etc.

Evaluation of performance
Compensation to Framers
Registration of Seed Producers and Processing
Units
Seed dealers to be Registered
Regulation of Sale of Seed and Seed Certification
Seed Analysis and Seed Testing
Export and Import of Seeds and Planting Material
Offences and Punishment.

Rashtriya Krishi Vikas Yojna, Macro

Management Agriculture, Integrated Scheme

for oilseeds, pulses, oil palm and maize
(ISOPOM); Technology missions for cotton,
National food security Mission etc. provide for
subsidized seeds.
New Policy on Seed Development (NPSD)
includes permitting100 per cent foreign
direct investment (FDI) under the
automatic route.The thrust is also on
creating a seed bank.

Periodic trends in seed industry growth

Year
19631983
19841994

19952005
20062015
2015-

32

Favours
Domination
Key Growth drivers
Establishment of NSC
Public Sector
Green Revolution
marking a beginning of
,launch of govt
formal seed sector in India
schemes like National
(1963),Seeds Act 1966
Seed Project
The liberalisation of seed
Entry of private
The rapid growth of
policy in the form of New
domestic and
innovations (improved
Policy on Seed
multinational seed varieties, hybrids and
Development (NPSD) in
companies &
proprietary
1988
investment in
technologies) and seed
research and
markets
development,
50-60% pvt
contribution
Strengthening of IPRs
Private Sector (80- Bt cotton, single-cross
coupled with liberalised
90%)
maize hybrids, hybrid
seed policies
rice, vegetables ,
strengthening of IPRs
coupled with liberalised
seed policies
Favorable regulatory
Private/Public
Technological
environs ,Government
breakthroughs,
policies to promote
Collaborations,Breeding
investment in seed R&D
for climate change,New
and infrastructure.
Biotech traits

Indian Seed Industry Value

Value in Crores
13500
12000
10500
9000
7500
5200

2008

6000

2009

2010

2011
Value in Crores

The
private
sector
is
playing a vital role. The
number
of
companies
engaged in seed production
33or seed trade is of the order
of 400 or 500.

2012

2013

2014

What is PPP
A

public-private partnership is a contractual agreement between a

public agency

(federal, state or local) and a private sector entity. Through this agreement, skills and
assets of each sector (public and private) are shared in delivering a service or a facility
for the use of the general public. In addition to the sharing of the resources, each party
shares risks and rewards potential in the delivery of the service and/or the facility.

35

Why PPP
Reduces public capital investment
Improves efficiency due to strong profit incentive
Private entity is more accountable than government
Expedited project completion by grouping multiple

responsibilities into a single contract

Specialized expertise
Relieves government from staffing issues
Shares risk/responsibility
Government can still step in when private entities are

misbehaving
36

Strengths of P & P

Public sector
Private Sector
1 Social responsibility
Profit oriented
2 Investment in infrastructure tax payer
3 Has extensive
The private sector is known
infrastructure, Institutions to have better marketing
of higher learning that can skills, operational
generate knowledge
efficiencies, efficient product
through basic research,
,delivery system, quality
A vast pool of both trainers service providing capability,
and trained human
and better up-scaling
resource
technologies
4 Research is separate from Research ,Production and
Production & Marketing
marketing are integrated

37

General Model for PPP Implementation

Identifying and negotiating the
common interest
Financing the Solution
Regulatory/contractual and legal
issues
Choosing an organizational
design/scope based on the above
Operating partnerships
Evaluating and terminating
partnerships (if applicable)
Source: Hartwich, F. J.-A. (2007)

38

Some Key Elements of Successful PPPs

PPPs require TRUST and relationships.

We need to grow this pool as a resource.
Understand and respect each others

motivations and limitations.

Keep your eye on the end goal, dont get lost
in the details.

39

PPP in Seed Production

Scope
Adoption

of Public Private Partnerships

(PPP) helps to create a sustainable
structure for adoption of hybrid seeds,
improve crop management practices, thus
creating market linkages towards a better
price discovery

40

Challenges
In India many farmers lack awareness and

benefits of improved seeds and crop

management practices.
Innovative approaches were required to
researching the fields, practicing Parent Seed
Multiplication, developing infrastructure and
training
growers
for
field
production,
processing the results and create acceptance
among very large numbers of small farmers
spread across large geography.

41

cont..
IP protection is difficult,

-but can often be overcome.

On paper easier than within human resources.
Critical to understand as clearly as possible
the fine line between competitive and precompetitive space, between what can and
should be shared and what can not.
Confidentiality and stewardship are often larger
concerns.
Availability of experts as resources often a
larger concern.
42

Challenges
There is as much diversity between institutions

as between regions
and this needs to be respected.
Difficult to do when organizations do not fully
understand each other.
Difficult to do when organizations do not fully
understand themselves - their own capabilities
and limitations.
Communicationwithin partnership and with
external stakeholdersis essential.
43

44

Loan facilities to start up a new

seed venture
For all crops, distribution of foundation/certified
seeds for production of quality seeds to
improve the quality of farm-saved seeds.
NMAET- National mission on Agricultural
Extension and Technology
SMSP- Sub-Mission on seed and planting
material
NFSM- National Food Security Mission
50% of the cost of seeds of cereals
60% of the cost of seeds of cereals, oilseeds,
pulses, fodder, green manures required for
Source: Department of Agriculture & Cooperation and Farmers Welfare,
acre of area per farmer.
Ministry of Agriculture and farmers welfare, GOI

NMAET: National mission on Agricultural Extension

and Technology
SMSP: Sub-Mission on seed and planting material
Assistance for boosting seed production in private
sector including individual, entrepreneurs, self help
groups, for assistance for production of foundation
and certified seeds
Provision of credit linked back ended capital
subsidy at the rate of 40% of project cost in general
areas
and
50% inFood
caseSecurity
of hill areas
and Scheduled
NFSM:
National
Mission
area
subject
to upperseeds
limit of
150lakhs
Purchase
of breeder
of Rs
pulses
from per
project
ICAR/SAUs for assistance for production of
foundation and certified seeds
Provision for full cost of breeder seed as fixed by
seeds Source:
division
Department of Agriculture & Cooperation and Farmers Welfare,
Ministry of Agriculture and farmers welfare, GOI

Schemes by Government of India,

Providing Assistance for Seeds
Scheme/
Component
Macro
Management
Mode of
Agriculture-State
Work Plan

Crop
Rice and Wheat
Bajra, Jowar, Ragi and
Barley

Scale of Assistance
(i)Rs.500/- per quintal or
50% of the cost, whichever
is less for certified seed
distribution for rice and
wheat.
(ii)Rs.800/- per quintal or
50% of the cost, whichever
is less for certified seed
distribution of varieties for
Bajra, Jowar and Barley
(iii)Rs.1000/- per quintal for
certified seed distribution
of hybrid of Bajra and
Jowar.
(iv)Rs.1000/- quintal or 50%
of the cost, whichever is
less for assistance for
production hybrid rice
seed.

Technology
Mission on
Cotton

Technology
Mission on
Jute and
Mesta
Integrated
Scheme on
Oilseeds,
Pulses, Oil
Palm and
Maize

Cotton Seed

(i)50% of the cost or Rs.50/- per kg.

whichever is less for foundation seed
production.
(ii)25% of the cost or Rs..15/- per kg.
whichever is less for Certified seed
production.
(iii)Rs.20/- per kg. for certified seed
distribution.
(iv)50% of the cost limited to Rs.40/- per kg.
seed treatment
Jute and Mesta (i)50% of the cost limited to Rs.3000/- per
quintal for foundation seed production.
(ii)25% of the cost limited to Rs.700/- per
quintal for Certified seed production
(iii)50% of the cost limited to Rs.2000/- per
quintal for certified seed distribution.
All Oilseeds, (i)Full cost for purchase of Breeder seed.
Pulses and (ii)Rs.1000/- quintal for foundation and
Maize
certified seed production.

(iii)Rs.1200/- per quintal or 25% of Seeds

cost whichever is less for certified seed

Oil Palm Sprouts distribution.
(iv)Full cost of Seed Minikits of high yielding
varieties (implementing agency NSC/SFCI).

Rice

National
Food
Security
Mission

Wheat

Pulses

(i)Rs.1000/- per quintal or 50% of the

cost whichever is less for certified hybrid
rice seed production.
(ii)Rs.2000/- per quintal or 50% of Seeds
cost whichever is less for certified hybrid
rice seed distribution.
(iii)Rs.5/- per kg.. or 50% of the cost,
whichever is less for certified high
yielding varieties seed distribution.
(iv)Full cost of Seed Minikits of high
yielding varieties.
(i)Rs.5/- per kg. or 50% of the cost
whichever is less for certified high
yielding varieties seed distribution
(ii)Full cost of Seed Minikits of high
yielding varieties.
(i)Rs.1000/- per quintal for foundation
and certified seeds production.
(ii)Rs.1200/- per quintal or 50% of the
cost whichever is less for certified seed
distribution.
(iii)Full cost of Seed Minikits of high
yielding varieties

Indian seed market: growth

drivers

Source: Avendus Capital Study on Sowing the

seeds of success, 2011

Factors to be considered for new seed ventures

Key managerial issues

Customer
requirements
Intellectual
property
Release
procedures

Research:
Variety
development
and
registration

Grower
contracts
Production
procedures
Quality
assurance

Packaging
Processing
procedures

Advertising
Labeling
information
Distribution
and pricing

Extension
information
Customer
support

Value chain
compound

Seed
protection

Processing
and
conditioning

Marketing
and sales

Farmer

Case study
analysis

Q:-1 Do you endorse the view of consultant

that Ram seeds Inc has to change its

marketing approach ?
Q:-2 Examine the adaptability of
relationship marketing by Ram seed Inc ?
Q:-3 Based on model what kind of
marketing action do you suggest ?