1. Seeds -- a US$ 30 billion global industry
12 top markets constitute 66% of theGlobal seed 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
India US$ 1 bn market
Figures in US$ mn

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
Though India is the fifth largest country in terms of geographic area, it stands second (next only to the US) when it comes to total arable area (area under cultivation of agricultural crops). This puts the potential for seeds in India even ahead of China.
While the commercial seeds market in India is estimated at Rs 40 bn, the size of the overall market, including farm-saved seeds is estimated to be in excess of Rs 100 bn.
Though the Indian seed market is still dominated by farm-saved seeds, there has been an increased awareness and a gradual switch over to hybrid cultivation (hybrids cannot be retained).
Increase in India’s share in world crops can come from improved productivity as growers shift to hybrids.

3. Saved seeds account for nearly 85% of the market
Seed market structure
Saved seeds account for nearly 85% of the market
Private sector dominates with a 60% market share
Commercial Seeds 15%
Saved Seeds
85%
Note: Research hybrids are 30% of commercial seed market by value
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
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.

4. Industry Structure – The Situation Today
Seed Industry
Public Sector
Private Sector
NSC
SFCI
SSCs - 13
IPS – 200
MNC – 10
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. Marketshare by value of Key Hybrid Crops
Attractive research hybrid seed segments
Marketshare by value of Key Hybrid Crops
In terms of value, vegetables is the largest segment, accounting for 17% of the total market. Tomato, Brinjal, Cabbage and Bhindi contribute most to the value in the vegetables segment as these crops have a sizable acreage under hybrids. Other significant segments include cotton, sunflower, followed by Wheat and Paddy. The rationale for vegetables and cotton having a high value share is that these crops are dominated by hybrids in which the replacement rate is high. Seeds business in these high value crops is very profitable as the realizations are much higher and it is for this reason that most seed companies are present in these crop segments.
Realisations as against average market prices of seeds of key crops are as under,
Crop Average market price Estimates- % Net Realization*
Hybrid Cotton 350 Rs/packet (450g) 30
Hybrid Bajra 110 Rs/bag(1.5 Kg) 15
Hybrid Jowar 120 Rs/bag (3 Kg) 15
Hybrid Maize 120 Rs/bag (5 Kg) 7
Wheat Rs/bag (40 Kg) <5
Research wheat 1400 Rs/bag (20 Kg) 25
* After deducting all costs except interest, depreciation, overheads
Cotton is the most important segment because of a high percentage of cultivated area under research hybrids.

8. Background – The Role of Regulation
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

9. Public & Private Sector Activity
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

10. Indian Agriculture – Challenges Ahead
Agriculture growth must keep pace with growing demand; food grain demand growing at %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

11. Types of Seed Produced in India
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