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

Indian Agricultural Scenario

Green revolution helped India gain self sufficiency in food production Agricultural production increased from 50 million tons to 227 million tons; however, growth flat over last 10 years Population, currently at 1.15 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

Agriculture Production & Quality Seed Distribution

Year Food Grain Production (million tonnes) Cotton Production (million bales 3.04 5.60 4.76 7.01 9.84 9.65 31.00 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

50.82 82.02 108.42 129.59 176.39 195.92 227.30

5.16 6.98 9.63 9.37 18.61 18.40 28.82

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

Evolution of the Indian Seed Industry

Key milestones
National Seed Corporation, 1963 Seed Act, 1966, 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

Evolution of the Indian Seed Industry

Current status Post-NSP 1988 Seed industry boomed as a result of several Govt. 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.

1960s-1980s Minimal private sector participation R&D in public domain Restrictions on germplasm exchange, foreign ownership, etc.

Current status
Indian seed market, estimated at US$1.1 billion, 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, wheat, legumes, etc. Low hybrid adoption rates in most crops due to marginal growing conditions and/or subsistence farming

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

Field crops: Hybrid seed market

Crop
Cotton Corn Rice Millet Sunflower Kh Sorghum SSG

Market size (MT) 23 million* 65,000 18,500 15,000 6,500 5,000 30,000

% 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 $; total-585) **includes trait value

Kharif sorghum SSG

* packets of 450 g

Growth trend of key field crops hybrid seed market

Est. sale in 000MT (corn, rice) and million packets (cotton)

Crop
Cotton Corn Rice

Est. sale Est. sale % inc. in 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

Impact of new technology

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

Impact of new technology

More than 80% of the countrys cotton growing area is under Bt cotton Cotton production has increased from 12.5 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

Regulatory framework
Seed Act, 1966 and Seed Control Order, 1983
(Seeds Bill 2002 is pending Parliamentary Approval)

Protection of Plant Varieties and Farmers Rights Act, 2001 Environment Protection Act, 1986 Biological Diversity Act, 2002 Destructive Insects and Pests Act, 1914 Plants, Fruits and Seeds (Regulation of import in India) Order 1989 Cotton Seed Acts in some states Export/Import policies and Regulations

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 - Registration after 2 years of VCU testing - No provisional registration of transgenic hybrids/varieties - Duplication of agronomic testing of transgenic hybrids/varieties under EPA and New Seed Bill - Performance label and compensation - Price Control - Complete exemption of farmers form the operation of the Seed Bill

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

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

Productivity challenges
Biotic stresses
Fungal, 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

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. Doubled haploid, etc.

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 0.65 0.82 1.00

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. tomato, okra and chilli Increased hybrid adoption in rice and corn Improved agronomy in cotton Investment to innovate and create value for the farmers

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, through financial incentives, 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

Public private partnership

Conventional breeding:
Basic Germplasm improvement Development of inbred lines Development of Hybrids Seed production & marketing

Public sector Private sector ICRISATs hybrid parent development consortia (Pearl millet, Sorghum, Pigeon pea) IRRIs hybrid rice development consortium

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