Biotechnology in Food & Agriculture Food & Agribusiness Strategic Advisory and Research

Contents Global Scenario Indian Scenario Need for Agri Biotechnology Opportunities, Risks & Challenges Future of Agri Biotech in India

GLOBAL SCENARIO

Agriculture Biotechnology Biotechnology has become the fastest adopted technology in the agriculture sector Production of improved crops, animal, medicinal plants, microbes Acceleration of the breeding process DNA based diagnostics for pests /pathogens of crops Developing and processing of value added products of improved nutritive quality/ ensuring food quality and safety Over the last decade there has been an increase of over three times in cultivated area under biotech crops from 44.2 million ha in 2000 to over 170 million ha in 2012 The major biotech crops grown by these top 10 countries comprised Maize, Soybean, Cotton, Canola, Sugarbeet, Alfaalfa, Papaya, Squash, Tomato & Sweet Pepper In 2012 the most preferred biotech crop was herbicide tolerant soybean- covering an area of around 80.7 million ha and accounted for 47% of the total biotech crops‘ The second most popular biotech crop was maize with stacked traits- occupying an area of almost 40 million ha accounting for 23% of the total biotech crop area in 2012 The third most dominant crop was Bt cotton which occupied 18.8 million ha, covering 11% of the total global biotech area

Source: International Service for the Acquisition of Agri Biotech Applications (ISAAA)

INDIAN SCENARIO

Bio tech Industry Segmentation The sector's revenues have rapidly increased from INR 2,345 crores in 2002-03 to INR 20,440.7 crores in 2011-12* Indian Biotech Industry Bio Pharma Vaccines Diagnostic Therapeutic Bio Agriculture Hybrid seeds Bio pesticides Bio fertilizers Bio Industrial Industrial enzymes Bio Services Contract research organization Custom manufacturing Bio Informatics Data base services Software Growing at average rate of 20% 62 % of total revenue 15 % 18 % 01 % 04 % India is amongst top 12 biotech destinations in the world; ranks 2nd in Asia after China * Bio spectrum & Association of Biotechnology Led Enterprise (ABLE) Survey

Agriculture Biotechnology Agri Biotech constitutes 15% of the total biotech industry with revenues amounting to INR 3,050 crores The highest growth in the Bio-Agri sector took place in the year 2004-05 when the industry grew by almost 154% Bt Cotton is the only biotech crop commercialized in India as of now- 10.8 million ha (2012), maintaining numero uno position in hectarage globally; 11.6 million ha was total area under cotton cultivation Around 66% of the Bt cotton is grown in the central zone which includes the states of Maharashtra, Gujarat, M.P and Odisha Maharashtra accounted for 37% of the total area under Bt cotton, followed by Gujarat (19%) and Andhra Pradesh (18%)

Need for Agricultural Biotechnology Agri Biotech Crop Diversification Increasing Productivity Market Competitiveness Mitigating Climate Change Water Conservation Reducing Environmental Impact

Opportunities, Risks & Challenges in India Potential to become a major producer of transgenic rice and genetically modified (GM) vegetables Demand for Biofertlizers and Biopesticides is expected to rise in the near future Immense opportunity in Agri & Allied sector such as Medicinal & Aromatic, Animal biotech, Aquaculture, Seri and Environmental biotechnology Risk Introduction of Allergens & Toxins Antibiotic resistance Emergence of super weeds Insecticide resistance Loss of Biodiversity Challenges Lack of technology Low level of skill development Regulatory Framework Market Development & Pricing Consumer Resistance Technology transfer and absorption

Future of Agri Biotech in India Efficient Food Production Altering genetic make-up or introduction of new genes into existing germ plasm to minimize crop loss Efficiency enhancement of plants for higher productivity from the same or lesser amount of inputs and improvement in ability of plants to grow Quality & Nutrition Improvement Agri-biotech research should be aimed at improving quality, nutritional value and other product attributes focusing on safety parameters concerning human health and environment Mitigating post harvest loss Induction of traits for adaptation to post harvest processing & having commercial viability Enhancing shelf life along with developing varieties that can sustain stressful conditions Fiber, Fuel etc It paves the way forward for enhancing the availability and production of these products efficiently

Thank You ! Kaushik Basu Food & Agribusiness Strategic Advisory & Research (FASAR) , YES Bank Ltd., Gurgaon # +91 8800581222 kaushik.basu@yesbank.in

New Institutions proposed in 12th plan period National Institute of Marine & Microbial Biotechnology Biotechnology Regulatory Authority of India (BRAI) Institute of Bioinformatics and Computational Biology Institute of Bio design, Bio science and Bio engineering Infectious Science and Biotechnology Institute in North East

Bt Brinjal in India Brinjal is the fourth most important vegetable grown after potato, onion and tomato in India Fruit and shoot borer (FSB) is the most devastating insect-pest of brinjal, which causes 60-70% yield loss, besides deteriorating product quality The Bt brinjal is the first Genetically Modified food crop in India- it was created by inserting a crystal protein gene (Cry1Ac) from the soil bacterium Bacillus thuringiensis into the genome of brinjal cultivars Bt brinjal was found to be very effective against FSB, with 98% insect mortality in brinjal shoot and 100% in the fruit Scientists have estimated that Bt brinjal will deliver farmers a net economic benefit of INR 16,299 - 19,744 per acre with national benefits exceeding USD 400 million per year Consumers are anticipated to benefit from increase in output supply, reduction in price and quality produce, free from FSB-infestation and chemicals used for its control

Development & Regulation of Bt Brinjal in India MoEF announces a nationwide consultation in January and February of 2010 pending a final decision on this issue 2000 2005 2006 2007-08 2009 Trials at 10 research institutions across the country in 2007 and 11 in 2008 GEAC approves the environmental release of Bt Brinjal based on sub committee report Mahyco shares the technology with TNAU, DAU and IIVR to develop open pollinated varieties of Bt Brinjal Mahyco submits bio-safety data to Genetic Engineering Approval Committee (GEAC) and seeks permission for large scale trials. SC stops ongoing field trials Inception of the transformation work on Bt Brinjal

Government Initiatives Establishment of Department of Biotechnology: Nodal agency Commercial cultivation of Bt cotton: approved by the government in early 2002 Regional centre for biotechnology: Joint decision by GoI and UNESCO to establish regional centre for research, training & education Biotech Parks: Substantial progress in States such as Andhra Pradesh, Kerala, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh Biotechnology Industry Partnership Program (BIPP): launched in 2008 to take up innovative research programs Biotechnology Industry Research & Development Assistance Council (BIRAC): Established to act as an interface between academic and private sector, particularly SMEs and start-ups International Co-operation: Sri Lanka: Joint R&D, training and exchange of information Russia: 8 projects in agri & biotechnology area Sweden: 4 projects implemented under joint collaborative program UK: Food biotechnology, Vaccines Israel: 6 joint projects have been implemented in area of human genetics