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Seeds -- a US$ 30 billion global industry India (US$ 1 billion) & China (US$ 2.5 bn.) are in the top 10 markets India has over one sixth of the global.

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Presentation on theme: "Seeds -- a US$ 30 billion global industry India (US$ 1 billion) & China (US$ 2.5 bn.) are in the top 10 markets India has over one sixth of the global."— Presentation transcript:

1 Seeds -- a US$ 30 billion global industry India (US$ 1 billion) & China (US$ 2.5 bn.) are in the top 10 markets India has over one sixth of the global population high importance to food self- sufficiency India needs to increase productivity significantly 12% of global arable land 4% share of global crops 12 top markets constitute 66% of theGlobal seed industry Figures in US$ mn India US$ 1 bn market

2 India seeds market With a size of US$ 1 bn, India is the eighth largest commercial seed market in the world Arable land is around 136 mn ha which is higher than China High growth expected on the back of transition from traditional varieties to high value varieties and hybrids Public sector – varietal crops like paddy, wheat, pulses – 80% of seed volume; 40% of total value ~ 150 companies in Private sector – majority operates as traders Increase in Indias share in world crops can come from improved productivity as growers shift to hybrids.

3 Seed market structure Saved seeds account for nearly 85% of the market Commercial Seeds 15% Saved Seeds 85% Domestic seeds market is expected to double over the next five years implying a CAGR of 13%. Hybrid seeds will grow much faster given expected conversions from traditional varieties. Rising food demand and limited agricultural land Shift to commercial seeds which have better technology Growth in fresh produce market and in processed food sector Driven by Private sector dominates with a 60% market share Note: Research hybrids are 30% of commercial seed market by value

4 Seed IndustryPrivate Sector MNC – 10 Public SectorNSC IPS – 200 SSCs - 13 SFCI Industry Structure – The Situation Today Public sector – in self-pollinated crops of which wheat & rice account for 60% Private sector mainly in hybrids that are low in volume but high in return Opportunity lies in converting users of farm-saved seeds and public hybrids In terms of volume, paddy and wheat offer largest opportunity

5 Key Indian Seed Players

6 Market Share of Key Indian Players

7 Cotton is the most important segment because of a high percentage of cultivated area under research hybrids. Attractive research hybrid seed segments Marketshare by value of Key Hybrid Crops

8 Seed Act, 1966 – min. quality standards, certification & procedures for evaluating varieties Public sector dominated the industry until 1971 1971 – National Commission on Agriculture recommended breaking of public sector stranglehold – Indian private sector enter the sector 1988 – New Seed Policy – entry of MNCs; import of seeds and germplasm allowed for research Seed Policy is still very restrictive and detrimental to farmers 2002 – Comprehensive Seed Policy – to overhaul existing Seed Act – should usher new growth in the liberalised era Background – The Role of Regulation

9 Public sector – in self-pollinated crops of which wheat & rice account for 60% Private sector mainly in hybrids that are low in volume but high in return Opportunity lies in converting users of farm-saved seeds and public hybrids In terms of volume, paddy and wheat offer largest opportunity Public & Private Sector Activity

10 Agriculture growth must keep pace with growing demand; food grain demand growing at 3.4-5.5%p.a. Efficiency to improve in use or resources –decline in land & water resource base for average farm holding Fertiliser must be used wisely and there should be adequate storage infrastructure Agriculture tech management must become efficient to take advantage of expanding production & marketing opportunities Tariff and non tariff barriers imposed by developed countries Thrust to high yielding & efficient inputs like seeds Indian Agriculture – Challenges Ahead

11 Cereals, Oilseeds, Cotton, Vegetable Cereals dominate the seed market hybrids in Corn, Sorghum, Pearl millet, SSG Major opportunities in Wheat and Rice Sunflower dominate in oilseeds with opportunities in Brassica (00 and transgenic) 2:1 ratio of private to public hybrids in Cotton; Tomato (28%), Cabbage(23%), Brinjal (14%) – major share of hybrids 3.12 mn ha under vegetables; Current mkt. value for hybrids INR 200Cr, varietal INR 50Cr Types of Seed Produced in India


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