In India, since 1991, economic liberalisation along with the move towards privatisation by the government seems to have had a positive impact on the private seed industry. Many new players including MNCs are entering the seed and agro-biotech market so that there are around 150 organised seed companies in India. The leading seed companies in India are Mahyco, Monsanto, Novartis Seeds, Namdhari Seeds, Nath Seeds, Proagro Seeds, Sun Seeds, Ankur Seeds, Indo-American Hybrid Seeds, Rallis, Cargill Seeds. The current division of the seed market between the public and the private sectors and their complementary role in the seed industry’s growth seems likely to continue. Today in India, the private seed sector is playing a major role in popularising improved crop varieties, particularly in hybrid vegetable seeds.

Population is the major determinant of the potential size of a seed market. India, with a population of over 1,000 million, presents one of the largest potential seed markets in the world. The other major seed markets are the US (population over 270 million), EU (over 350 million), China (over 1,200 million) and South America (over 250 million).

The Indian seed industry, currently valued at around $500 million, is projected to be around $ 750 million by 2002. It is reasonable to expect the Indian seed industry and seed market to shift towards the US and EU seed technology and seed trade patterns and to grow four-fold in the coming decade. The external factors to the seed industry such as economic growth, degree of liberalisation, impact of world trade organisation (WTO), drought and rainfall; along with increasing population and consumer income are the driving forces influencing the seed industry’s profile in India. Emphasis on research and development and marketing activities by the players within the seed industry are likely to affect the industry growth positively.

The major issues in the seed industry today are: biotechnology, globalisation, the WTO and its regulatory framework, and mergers and acquisitions. Commercial products related to biotechnology in the seed industry, such as insect resistant crops, are entering the market and have more impact on the seed business than any development in decades. Globalisation of economies and increased importance of WTO have created many opportunities as well as challenges for the seed industry. Many questions surround the regulatory framework for protecting owners of seeds, as well as consumers from possible seed-related problems, and ensuring that the industry maintains a market orientation and competitive edge. Mergers and acquisitions of companies are other striking issues facing the seed industry as many chemical companies are now merging with seed companies to capitalise on new technologies, economies of scale in research, and access to global markets.

Technology advancement in agriculture can lead to a second green revolution in India. The advances in biotechnology and their integration with plant breeding are likely to open up new vistas in the area of agricultural productivity too. Agricultural development through the seed sector could make India a prospective food factory of the world. The availability of a large research network infrastructure and the diversity of agro-climatic conditions make it possible to grow a specific crop for seed production all-round the year, in one or the other part of the country. Also, the availability of relatively less expensive agricultural labour could contribute to the growth of the seed industry to cater to the domestic seed market, seed exports, and contract custom seed production. Thus an effective Indian seed industry with the capacity for a continuous supply of improved high quality seed varieties at competitive prices would serve as a catalyst to increase food production and for sustained agricultural and socio-economic development.

The author is Chairman, Savida Agricom

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