ISAP Activities
Triple Century hit of Agri-preneurs trained by ISAP
Number of Agri-preneurs trained by Indian Society of Agribusiness Professionals (ISAP) under EDP program, who have successfully established independent business subsequent to their training, has just crossed the 300 mark. ISAP runs this EPD program in eight states under the aegis of MANAGE. ISAP has so far trained more than 1300 agriculture graduates, out of which 307 students have set up and are running their independent agri-dominant business units.
Orientation of Knowledge Workers of ISAP KCC, Bhopal
An orientation program of Knowledge Workers at ISAP Kisan Call Center was organized on August 22, 2009. Dr MD Vyas, Senior Scientist, Department of Agronomy from RAK college, Sehore, shared the best practices of select crops recommended for farmers in the state of Madhya Pradesh. Dr Vyas discussed different cultivars, varieties suitable for different topographies /regions in the state, plant protection measures including different methods to combat fungal infections, protection from weeds & pests, irrigation schedules for different crops etc. Also, Dr Vyas threw light on some interesting topics like controlling pest subsequent to rains followed by a long dry spell. It was an interesting and informative session full of topical tips to make the questioner feel that the response was fully satisfying.
Entrepreneurship Development Program
ISAP is running Entrepreneurship Development Program in 8 states under the aegis of MANAGE. This training is provided to unemployed agriculture and allied sector graduates. After training, ISAP provides active hand-holding support to these trained agripreneurs for the setting up their own business venture. ISAP has so far trained 1378 agripreneurs in Assam, Haryana, Himachal Pradesh, Jharkhand, J&K, Mizoram, Nagaland and Punjab. Some of agripreneurs have established their independent business successfully. We share following success story with our readers in ISAP newsletters.
Success Story (Jammu)
Mr. Aneel Kumar a resident of village Pochhal, District Kishtwar in Jammu completed his 2-months training at ISAP training center in ISAP training Center May 25, 2009 with ID No Jam 1003. Subsequent to this training, he has established an Agri-clinic and consultancy service centre for cultivation of Saffron at Kishtwar with own initial capital investment of Rs 1.7 lakh. He's getting good response both from active and prospective saffron growers and he now commands a good reputation in this area of specialty. His services are rather well received in this area. ISAP wishes Mr Aneel Kumar continued success in his venture.
News Highlights
Punjab govt propping up kinnow farming
Realizing the increasing disposition and penchant of state farmers towards cultivation of kinnow, the State Government has initiated programs to boost the market linkage which would further incentivize the farmers. State government has decided to invest Rs 10 crore of funds for boosting Citrus Estates in select areas of Punjab of which, the Government will spend Rs 2.5 crore only towards promoting this fruit as a popular brand in international market. This was announced by Hon'ble Chief Minister of Punjab, Sardar Prakash Singh Badal in a high level meeting of the representatives of five citrus estates from Ferozpur, Abohar, Muktsar and Hoshiarpur. The CM has commissioned an advisory committee of 12 people for chalking out further action plan. Need for creating / developing market at distant places within the country as an important component of agenda for development and improvement of kinnow was also emphasized.
Organic Farming in Nagaland
The Nagaland State government is keen on promoting organic agriculture in the state. It feels strongly that agriculture, which by default is organic, needs to be capitalized in order to have better realization by the farmers for their produce. Nagaland is the lowest consumer of fertilizers in the country with a consumption level of just 1.5 kg per hectare. State Government has initiated many schemes and plans for promoting organic cultivation in the state. Recently, it has signed an agreement with International Competence Centre for Organic Agriculture (ICCOA) under which, the State Agriculture Department and the ICCOA will work jointly on an area of 250 hectares of land on select crops namely ginger, large cardamom, maize, potato and tea. This contract is effective for 3 years. Under this program, training would be provided to the farmers on crop practices, plant protections measures and organic certification. Other activities under this program include promoting organic trade, organic food processing and value addition, market linkage through organizing Buyer-Seller meetings, etc.
Govt launches Pt Deen Dayal Kisan Baagwan Samridhi Yojna in HP
In mid-August 2009, State government of Himachal Pradesh launched second phase of its ambitious horticulture scheme viz. Pandit Deen Dayal Kisan Baagwan Samridhi Yojna. A total of INR 198 crores have been allocated for the second phase of this scheme. In the first phase which was initiated during January 2009, INR 155 crores have already been spent. The Government envisages to bring 20,000 hectares of horticulture land under irrigation. More than 17,000 units of sprinklers and drip irrigation systems would be set up to achieve this. Also, more than 28,000 polyhouses will be constructed under this scheme. Farmers are being offered huge subsidy of 80% for setting up polyhouses and adopting micro-irrigation schemes under this plan. Also, around 2650 water tanks and wells would be constructed, for which state government will provide subsidy of 50%.
HP govt offers a kitty for apple growers
State government of Himachal Pradesh is planning to purchase more than 5 million tonnes of apple this season at support price of Rs 5.25 per kg by October 31, 2009. Government makes these purchases through HPMC and HIMFED. To ensure that only farmers should benefit from this purchase, procurement would strictly be done on producing Identity Card by the farmers. This year, government is planning to procure 20% of apples in plastic crates so that produce remains safe and sound quality-wise. This method of procurement in plastic crates would be tried on pilot basis at some select centers only. If it goes successfully, it would be expanded in other/rest of the areas. HP produces normally 20-25 million boxes every year, but productivity is an issue. Average yield of apple in the state is as low as 5-7 tonnes per hectare, which is less than 20% of its yield in some leading producer countries. Government has initiated several programs to overcome the productivity constraint. It has envisaged a very ambitious plan of replenishing aged apple orchards in the state with new improved high yielding and disease resistant improved varieties/ planting materials in 1000 hectare of land in next 3 years. Government will be spending around INR 148 crores on this scheme.
Chemicals usage for artificial ripening of apples
Now apple growers in Himachal Pradesh are also turning to quick solutions in order to make easy money. There have been reports in media that farmers in some areas are using over-dose of chemicals for artificial ripening of apples. Subsequent to weather vagaries this year, farmers are looking for alternatives to self- compensate their losses. Prolonged dry spell this year both in winter and summer is feared to have cut apple production in the state by 35-40%. Apple, which could reach markets before its normal crop time, usually fetches better prices. Since, most of apple grown in the state goes to domestic market; it does not generally attract high quality checks. But, chemical used in excess by the orchardists to enhance color development and quick ripening of fruit could have negative impact on plants & fruits. There is also a strong likelihood that it will make fruit unfit for human consumption. State government is trying to take the organic farming route to divert the farmers from adopting these kinds of practices in apple cultivation / production, for which it has planned extensive awareness campaigns. However, unless something concrete is done on effective market linkage, creating awareness alone will not be sufficient to put check on growers' propensity for using the chemicals injudiciously.
Himalaya International setting up a processing plant in Gujarat
Himalaya International Limited is planning to set up a food processing unit in Mehsana district of Gujarat. THE Company would initially be investing funds to the tune of Rs 130 crore for setting up of this unit. It has already been allocated 22 hectares of land by the Gujarat government and expecting additional 20 hectares of land to be allotted soon by the government. Company has set target of starting commercial production from this unit in September 2010. Also, company is planning to expand its value added product line by adding mushrooms, frozen vegetables, appetizers, yogurt and mozzarella. This unit will have an installed capacity of 50,000 tonnes of compost to produce 9000 tonnes of mushrooms, 5940 tonnes of Mozzarella cheese, 9000 MT of yoghurt and 15000 tonnes of Appetizers per annum.
US markets likely to open up for Indian Litchi
After mango, United States of America now seems agreed to open its market for Indian litchi also. According to official sources, US officials in meeting with the officials of Agricultural and Processed Food Products Export Development Authority (APEDA) and Ministry of Agriculture has reached some level of mutual understanding on safety issues, as Indian officials cleared all doubts of US officials in relation with fumigation process. This has eventually opened way for export of Indian litchi to United States. Further, modalities in this regard will soon be worked out and it will likely to be allowed by first quarter of FY 2010. Bihar is the major producing region and accounts for more than 70% of total litchi production in the country. India is second largest producer of litchi in the world. Currently India exports fresh and processed litchi mainly to Europe and other Asian Countries. Meanwhile, India has inked an agreement with Food and Agriculture Organization (FAO) for a project meant for improving quality and productivity of litchi in the country. FAO will fund this project. Total budget for this project is US $3,66,000 and this will be run for 23 months. Under this project, FAO would rope in national and international consultants and would provide trainings, expendable & non-expendable equipments and overseas exposure visits of technicians.
Science & Technology
"CRIL-7" Chickpeas
High in protein, fiber and other nutrients, chickpeas is an important legume crop the world over. But humans aren't the only consumers: the larval stage of the beet armyworm moth likes to eat the crop's leaves fruit and the seed as well. New lines of resistant chickpeas developed by Agricultural Research Service (ARS) scientists and their collaborators could put the kibosh on this crop-damaging pest's voracious appetite, and potentially save on chemical insecticides too.
The so-called "CRIL-7" variety of chickpeas has been conventionally bred from a cross between wild and cultivated species by a team of scientists from the ARS in Pullman, Wash.; Washington State University's Department of Horticulture and Landscape Architecture, also in Pullman; and the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in Patancheru, India. Fred Muehlbauer, now retired from ARS, crossed the wild species Cicer reticulatum, known for its broad insect resistance, with the susceptible cultivar FLIP 84-92C of Cicer arietinum. Clement selected 42 lines offering the best combination of agronomic characteristics and resistance in India – the country which in 2005, led the world in chickpea production with 6.6 million tonnes. In 2006-07 greenhouse trials, 28 to 62 percent of beet armyworms that fed on the leaves of resistant chickpeas died within a few days of hatching from eggs. The surviving worms were smaller and shorter than usual. The CRIL-7s outperformed commercial cultivars used for comparison of resistance, but still require agronomic testing under field conditions as the next step towards commercialization.
New variety of Litchi by NLRC
The National Litchi Research Centre (NLRC) has developed a new variety of Litchi, which they've named `Logan'. This variety is hybrid of some clones brought from Thailand. Scientists claim that this variety would have higher shelf life than existing cultivars. Scientists will be trying out sowing this variety first in Bandra and Katni blocks, which are most suited to agronomic requirements of this crop. Fruiting time of this newly developed variety is August- September, which would be additional advantage with it as most indigenous varieties bear fruits during April- May.
Scientist develops vaccine against Newcastle disease in chickens
Dr J John Kirubaharan, an associate professor in the department of veterinary microbiology has developed a vaccine for controlling of `Newcastle' disease using a new strain of the virus. This is a great breakthrough against this ghastly disease, which on outbreak wipe out entire flock of birds just in 2 days time. Mortality in case of commercially bred birds affected with this disease goes as high of 90%.
Do you Know…!
Taste for Frogs making crop/food costly?
According to a recent study, annual global trade in frogs for human consumption has increased over the past 20 years with at least 200 million and maybe over 1 billion frogs consumed every year. Catching frogs led to survival of pests and farmers have to spend more on pest-control operations. Frogs get 90% of their food from agricultural pests. Govt of India had long ago (in 1987) banned export of frog. Prior to this India was largest supplier of frog to France. Indonesia is the largest exporter (5000 tonnes per year) of frogs and a major consumer. France and US are two biggest importers, with significant consumption in East Asian Nations.
Who's who in Agriculture?
Robert Bakewell
Robert Bakewell is a renowned agriculturist of 18th Century, who is better known for his work in cattle and sheep breeding. He introduced stock-breeding method, which helped in revolutionizing quality of cattle and sheep in Britain. He was born in a farmer's family at Leicestershire, England. He learned lots of agriculture technique while travelling across the country & Europe. Bakewell pioneered grassland irrigation and establishing experimental plots to test different manure and flooding methods.. He was the first one to breed cattle and sheep for meat purpose. He developed Leicestershire longhorn breed of cattle which is renowned for good meat producers.
Agriculture Innovation
Aril Extraction from Pomegranate using CIPHET machines
For aril extraction from Pomegranate, Central Institute of PostHarvest Engineering and Technology (CIPHET) has designed and developed CIPHET-Pomegranate Extractor for processing of whole pomegranate of any size, shape and variety. Extraction of arils otherwise from pomegranate by mechanical method is very time consuming and labor-intensive method. This machine as claimed by CIPHET can process the whole pomegranate at a rate of approximately 5 quintals per hour with extraction capacity of more than 90% with little damage of arils (reportedly 1-2% only). This 1 hp machine does not require more than 2-3 persons to run it smoothly. In India, pomegranate is commercially grown in Maharashtra, Karnataka, Gujarat, AP, TN and UP. All parts of fruits and tree including roots, bark, leaves and flowers etc are used multi-purposely, especially in herbal medicine. This machine should certainly help broadening the scope & scale of its industrial usage.
Wishing you all a great Month ahead
ISAP Team
Thursday, September 24, 2009
ISAP Monthly E-newsletter Vol-1, Issue -13
India, with a billion plus population and consuming a third of the global production of pulses continues to be a dominant player in the world in this segment. Pulses are a key ingredient of the common Indian daily diet. Unfortunately, it is becoming dearer with each passing day to the extent that from the proverbial Dal-Roti staple diet, Dal is on the verge of vanishing off the plate of the common man. In the last 50 years, per capita availability of pulses has steadily come down from 70 grams/adult/ day to almost half the quantity (less than 38 grams/adult/ day). This is solely on account of stagnant crop yields. Annual pulses production has barely crawled in the last 23 years from 13.3 million tones in 1985-86 to 15 million tones at present! On the other hand, for the majority vegetarian population of India, the sole protein supplement is getting out of reach with a nutritional calamity looming large. Necessary impetus required on both R&D and policy front has not been forthcoming. Recent haphazard monsoon has further aggravated the situation in this predominantly rainfed group of crops.
In this backdrop, it is imperative to take stock of the production and supply prospects in the key producing and exporting nations. It is also important to meaningfully assess the likely price trends and the emerging global scenarios. On the research and policy front, scientists and policy makers would have to exhibit expediency to come up with production and planning solutions that should provide bigger morsels of pulses by helping to increase the productivity and make their availability to common man at affordable prices. The role that technology can play in this area by actively developing higher yielding and disease / pest resistant hybrid cultivars aided by bio-tech approaches deserves constructive consideration.
Agriwatch our associate company proposes to provide a platform to have a 360 degree view of the challenges faced in the world of pulses by bringing the various stakeholders together on October 24-25, 2009 at India Habitat Center and Le Meridien Hotel, New Delhi during 5th Global Pulses Summit 2009. For more details, please visit – www.agriwatch. com/pulses2009
It is a great opportunity for all stakeholders in the industry associated with pulses to access first hand authoritative information on this very important sector of economy and to be able to network with industry leaders and policy makers in this area of high-potential business prospects. I look forward to your active participation in the event to make it an unqualified success.
Thanks,
Rajeev Dar
CEO, ISAP
_________
In this backdrop, it is imperative to take stock of the production and supply prospects in the key producing and exporting nations. It is also important to meaningfully assess the likely price trends and the emerging global scenarios. On the research and policy front, scientists and policy makers would have to exhibit expediency to come up with production and planning solutions that should provide bigger morsels of pulses by helping to increase the productivity and make their availability to common man at affordable prices. The role that technology can play in this area by actively developing higher yielding and disease / pest resistant hybrid cultivars aided by bio-tech approaches deserves constructive consideration.
Agriwatch our associate company proposes to provide a platform to have a 360 degree view of the challenges faced in the world of pulses by bringing the various stakeholders together on October 24-25, 2009 at India Habitat Center and Le Meridien Hotel, New Delhi during 5th Global Pulses Summit 2009. For more details, please visit – www.agriwatch. com/pulses2009
It is a great opportunity for all stakeholders in the industry associated with pulses to access first hand authoritative information on this very important sector of economy and to be able to network with industry leaders and policy makers in this area of high-potential business prospects. I look forward to your active participation in the event to make it an unqualified success.
Thanks,
Rajeev Dar
CEO, ISAP
_________
Tuesday, September 1, 2009
Genetically Modified Crops - Industry Report
Genetically Modified Crops - Industry Report
Description: The report contains a chronological summary of genetically modified (GM) plantations with an analytical snapshot of GM crops and their traits across the globe. It provides statistics of major crops that have undergone genetic modification; global production; domestic production (state-wise); major producers; uses; cultivation problems; transgenic varieties—traits, approval, analysis of adoption and overview of international biosafety regulations. It covers Indian scenario in a separate section, where the history of genetic proliferation in Indian agriculture and statewise approach to Bt cotton are discussed. The report lays special emphasis on crops in the pipeline with their approval status, regulations, role of government, etc. It also compares India with other countries on various metrics. The appendix includes a list of all approved GM crops with details and approval status.
Countries covered:
USA, Canada, European Union, Asian region, Australia, Latin American countries
Contents: Introduction
Technical Overview
Global Overview of Transgenic Crops
Dominant Global Transgenics crops
Regulations
International Agreements related to biosafety
Brief overview of Indian Agriculture and Biotechnology
History, institutes and Companies
Commercialized Indian Transgenic Crop
Other Indian Transgenic ventures
Indian regulatory environment
Procedures involved in the commercialization of Indigenously developed transgenic Crops
Indian Seed Policy: Address to transgenic cops, venturing in Future: New initiatives in 10th Plan
Global Seed industry
The hybrid Seed industry in India
Summary: The problem of ever increasing human population coupled with diminishing arable land poses a challenge in terms of the agricultural yield of different commodities. Genetically Modified (GM) Crops are an answer to this crisis.
The GM crops currently available in the market are canola, corn cotton, papaya, potato, rice, soybean, squash, sugarbeet, and tomato. Other GM crops in progress are apple, banana, barley, coconut, mango, pineapple and sweet potato.
A total of 18 countries are at present cultivating GM crops of which Paraguay is the new member. In the year 2004, 81 million hectare (mha) of agricultural land worldwide was under the cover of GM crop. The major contributor in the geographical expansion of the GM is the US which has planted 47.6 million hectare, which is 59 per cent of the world aggregate. Following US are Argentina and Canada who have planted 20 per cent and 7 per cent of the world’s total GM crops respectively.
With the development of GM crops, biosafety is a concern that has prompted both developing as well as industrialized countries to implement guidelines governing testing, safe use and handling of genetically modified organisms (GMOs). A national biosafety and regulatory system to regulate production and release of GMOs is considered essential in any country with a biotechnology program.
The US regulatory system operates in a coordinated framework involving three government agencies: (1) Environmental Protection Agency (EPA), (2) United States Department of Agriculture (USDA) and (3) Federal Drug Administration (FDA). The community biotechnology legislation introduced by EU in the 1990s has formed a part of an effort to address the issues of GMOs and genetically modified microorganisms (GMMs).
Biosafety concerns are quite new to the Asian region. Japan uses a series of voluntary guidelines administered through four governmental agencies to ensure safe use and application of recombinant technologies; China's first biosafety guidelines were produced by the State Science and Technology Commission in December 1993. Similar kind of biosafety regulations have been formed for different countries like Australia, Argentina, Brazil, Nigeria etc.
In India, GM crops are regulated by the following three-tier structure:
- The Review Committee on Genetic Manipulation (RCGM) under the Department of Biotechnology (DBT) of the Ministry of Science and Technology (MoST);
- The Genetic Engineering Approval Committee (GEAC) under the Ministry of Environment and Forestry (MoEF);
- The Monitoring and Evaluation Committee (MEC) under DBT/MoST;
In 2005, the department of biotechnology (DBT) formulated the national biotechnology development strategy policy based on the recommendations provided by MS Swaminathan taskforce on agricultural bio-technology and the Mashelkar committee on biotechnology in the pharma sector.
In India, the acreage of GM crops in 2004 grew by more than ten times – industry sources compute the total acreage at 5 lakh hectares with single cotton crop approved. Most R&D work in India is being conducted in the public sector involving specialist national laboratories and research centers. Private sector efforts at introducing GM crops into India began, in effect, in 1995, when Maharashtra Hybrid Seed Company (MAHYCO) obtained the approval of RCGM/DBT to import Bt-cotton seeds.
In 2005, the situation has changed and now farmers have more choices to grow Bt cotton hybrids such as 6 hybrids in Northern Zone, 12 hybrids in Central Zone and 9 hybrids in Southern Zone including two new cotton hybrids recently approved.
The GM crop market is very much dependant on the global seed market. The global seed companies are exploring all possibilities of introducing GM seeds with many varieties. Worldwide hybrid seeds industry is calculated at US$30 billion. The US and EU hold a large share of global seed market. The largest seed market in value terms is US at US$5.7 billion. EU, however, may not remain a lucrative market in growth terms as it has become saturated and also because the arable land is decreasing. African continent is registering fastest growth in seed sales. Asian continent is growing at a modest pace of 1.3 per cent and presently valued at US$43.2 million.
Presently, GM crops are undergoing a period of mixed developments all over the globe. These include approval of two new cotton hybrids in India; approval of biosafety rules in Pakistan, IPR experiences in developing countries, assessment of GM rice in China, GM crops performing well in Poland etc., are the key developments in the recent past. All said and done, one cannot ignore the benefits it is going to reap in the days to come.
It is predicted that as many as 15 million farmers in 30 countries or more could be planting GM crops by 2010 over an area of 150 million hectares. Despite the continuing debate and challenges associated with GM crops, the area under GM crops and the numbers of farmers growing them have continued to grow at a double digit rate or more, since their introduction in 1996. This is a clear indication of the extent of GM crop market size expansion.
Sources
- Council of Scientific and Industrial Research (CSIR), GOI
- Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India (GOI)
- Department of Biotechnology (DBT), Ministry of Science & Technology, GOI
- Food and Agricultural Organization (FAO)
- Indian Council of Agricultural Research (ICAR), GOI
- International Cotton Advisory Committee
- International Service for the Acquisition of Agri-biotech Applications (ISAAA)
- K.S. Jayaraman (Interview)
- Ministry of Environment and Forest, GOI
- Monsanto India Ltd.
- The Center for Advising and Student Achievement (CASA)
- United States Department of Agriculture (USDA) and
- Cygnus Research
Ordering: Order Online - visit http://www.researchandmarkets.com/reports/310355
Order by Fax - using the order form below
Order By Post - print the order form below and send to
Research and Markets,
Guinness Centre,
Taylors Lane,
Dublin 8,
Ireland.
Description: The report contains a chronological summary of genetically modified (GM) plantations with an analytical snapshot of GM crops and their traits across the globe. It provides statistics of major crops that have undergone genetic modification; global production; domestic production (state-wise); major producers; uses; cultivation problems; transgenic varieties—traits, approval, analysis of adoption and overview of international biosafety regulations. It covers Indian scenario in a separate section, where the history of genetic proliferation in Indian agriculture and statewise approach to Bt cotton are discussed. The report lays special emphasis on crops in the pipeline with their approval status, regulations, role of government, etc. It also compares India with other countries on various metrics. The appendix includes a list of all approved GM crops with details and approval status.
Countries covered:
USA, Canada, European Union, Asian region, Australia, Latin American countries
Contents: Introduction
Technical Overview
Global Overview of Transgenic Crops
Dominant Global Transgenics crops
Regulations
International Agreements related to biosafety
Brief overview of Indian Agriculture and Biotechnology
History, institutes and Companies
Commercialized Indian Transgenic Crop
Other Indian Transgenic ventures
Indian regulatory environment
Procedures involved in the commercialization of Indigenously developed transgenic Crops
Indian Seed Policy: Address to transgenic cops, venturing in Future: New initiatives in 10th Plan
Global Seed industry
The hybrid Seed industry in India
Summary: The problem of ever increasing human population coupled with diminishing arable land poses a challenge in terms of the agricultural yield of different commodities. Genetically Modified (GM) Crops are an answer to this crisis.
The GM crops currently available in the market are canola, corn cotton, papaya, potato, rice, soybean, squash, sugarbeet, and tomato. Other GM crops in progress are apple, banana, barley, coconut, mango, pineapple and sweet potato.
A total of 18 countries are at present cultivating GM crops of which Paraguay is the new member. In the year 2004, 81 million hectare (mha) of agricultural land worldwide was under the cover of GM crop. The major contributor in the geographical expansion of the GM is the US which has planted 47.6 million hectare, which is 59 per cent of the world aggregate. Following US are Argentina and Canada who have planted 20 per cent and 7 per cent of the world’s total GM crops respectively.
With the development of GM crops, biosafety is a concern that has prompted both developing as well as industrialized countries to implement guidelines governing testing, safe use and handling of genetically modified organisms (GMOs). A national biosafety and regulatory system to regulate production and release of GMOs is considered essential in any country with a biotechnology program.
The US regulatory system operates in a coordinated framework involving three government agencies: (1) Environmental Protection Agency (EPA), (2) United States Department of Agriculture (USDA) and (3) Federal Drug Administration (FDA). The community biotechnology legislation introduced by EU in the 1990s has formed a part of an effort to address the issues of GMOs and genetically modified microorganisms (GMMs).
Biosafety concerns are quite new to the Asian region. Japan uses a series of voluntary guidelines administered through four governmental agencies to ensure safe use and application of recombinant technologies; China's first biosafety guidelines were produced by the State Science and Technology Commission in December 1993. Similar kind of biosafety regulations have been formed for different countries like Australia, Argentina, Brazil, Nigeria etc.
In India, GM crops are regulated by the following three-tier structure:
- The Review Committee on Genetic Manipulation (RCGM) under the Department of Biotechnology (DBT) of the Ministry of Science and Technology (MoST);
- The Genetic Engineering Approval Committee (GEAC) under the Ministry of Environment and Forestry (MoEF);
- The Monitoring and Evaluation Committee (MEC) under DBT/MoST;
In 2005, the department of biotechnology (DBT) formulated the national biotechnology development strategy policy based on the recommendations provided by MS Swaminathan taskforce on agricultural bio-technology and the Mashelkar committee on biotechnology in the pharma sector.
In India, the acreage of GM crops in 2004 grew by more than ten times – industry sources compute the total acreage at 5 lakh hectares with single cotton crop approved. Most R&D work in India is being conducted in the public sector involving specialist national laboratories and research centers. Private sector efforts at introducing GM crops into India began, in effect, in 1995, when Maharashtra Hybrid Seed Company (MAHYCO) obtained the approval of RCGM/DBT to import Bt-cotton seeds.
In 2005, the situation has changed and now farmers have more choices to grow Bt cotton hybrids such as 6 hybrids in Northern Zone, 12 hybrids in Central Zone and 9 hybrids in Southern Zone including two new cotton hybrids recently approved.
The GM crop market is very much dependant on the global seed market. The global seed companies are exploring all possibilities of introducing GM seeds with many varieties. Worldwide hybrid seeds industry is calculated at US$30 billion. The US and EU hold a large share of global seed market. The largest seed market in value terms is US at US$5.7 billion. EU, however, may not remain a lucrative market in growth terms as it has become saturated and also because the arable land is decreasing. African continent is registering fastest growth in seed sales. Asian continent is growing at a modest pace of 1.3 per cent and presently valued at US$43.2 million.
Presently, GM crops are undergoing a period of mixed developments all over the globe. These include approval of two new cotton hybrids in India; approval of biosafety rules in Pakistan, IPR experiences in developing countries, assessment of GM rice in China, GM crops performing well in Poland etc., are the key developments in the recent past. All said and done, one cannot ignore the benefits it is going to reap in the days to come.
It is predicted that as many as 15 million farmers in 30 countries or more could be planting GM crops by 2010 over an area of 150 million hectares. Despite the continuing debate and challenges associated with GM crops, the area under GM crops and the numbers of farmers growing them have continued to grow at a double digit rate or more, since their introduction in 1996. This is a clear indication of the extent of GM crop market size expansion.
Sources
- Council of Scientific and Industrial Research (CSIR), GOI
- Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India (GOI)
- Department of Biotechnology (DBT), Ministry of Science & Technology, GOI
- Food and Agricultural Organization (FAO)
- Indian Council of Agricultural Research (ICAR), GOI
- International Cotton Advisory Committee
- International Service for the Acquisition of Agri-biotech Applications (ISAAA)
- K.S. Jayaraman (Interview)
- Ministry of Environment and Forest, GOI
- Monsanto India Ltd.
- The Center for Advising and Student Achievement (CASA)
- United States Department of Agriculture (USDA) and
- Cygnus Research
Ordering: Order Online - visit http://www.researchandmarkets.com/reports/310355
Order by Fax - using the order form below
Order By Post - print the order form below and send to
Research and Markets,
Guinness Centre,
Taylors Lane,
Dublin 8,
Ireland.
BIOTECHNOLOGICAL APPLICATIONS RELEVANCE TO THE INDIAN FARMER
BIOTECHNOLOGICAL APPLICATIONS RELEVANCE TO THE INDIAN FARMER
PRESENT STATUS OF INDIAN SEED INDUSTRY VALUE ADDITION THROUGH BIO-TECHNOLOGICAL APPLICATIONS AND THEIR RELEVANCE TO FARMERS
Kuldip R. Chopra Ph.D. (USA)
Director, Research and Production
Mahendra Hybri Seeds Co., Ltd. A-10 Old MIDC, Jalna 431 203, India.
1. Introduction
1.1 Increased food production must keep pace with the country's population increase. Not only the quantity of food made available should improve. To keep pace with the present population growth and consumption pattern, India's food requirement has been estimated to cross 225 million tons by 2005 AD. This would mean an annual agricultural growth rate of 6.7 percent, a daunting task considering the rapidly shrinking resource-base and fast declining input-use efficiency in major cropping systems. Not withstanding the impressive gain in the agricultural production, the vast agricultural potential still remains highly under-utilized. There are serious gaps both in farm yield realization and technology transfer, as the national average yield of most crop varieties of most crop varieties is low.
1.2 Not many superior varieties is mot pulses, many oilseeds and vegetable crops have been evolved in recent past. In case of vegetables the varieties which were imported or developed many decades ago are still being grown by the farmers. Their yields are low and their inherent ability to respond to improve production technology is also limited. Farmers have accepted bybrids in my vegetable crops such as cabbage, tomato and capsicum.
PRESENT STATUS
2. Research and Technology Transfer
2.1 The Central and State governments continued to invest heavilyu in research, hence the Indian public sector research system has increased in size in real terms but by mid 90s leveled off. The number of hybrids and varieties developed and released by ICAR Crop Improvement Projects and State Agricultural Universities in major and minor crops are enormous and have been well documented.
2.2 Private reasearch to develop superior hybrids was initiated by few seed companies in mid 60s. By 1987-88, the number increased to over 12 and in 1997-98 it is estimated at 34. With the governments recognition of provate sector's performance capabilities and with "New Seed Policy" announced in 1988 , the number of private companies involved in crop improvement programs have been steadily increasing ( Table 1 ).
Number of Private Companies Engaged in Crop improvement Program (1987- 1998)
Number of Companies with Crop
Improvement Programs
Crop 1987-88 1993-94 1997-98
Pearl Millet 12 23 25
Sorghum 10 12 15
maize 06 15 20
Sunflower 10 30 20
Cotton 09 21 34
Hibrid Rice - 4 6
2.3 For want of financial , infrastructural and trained human resources, most private companies specialize in br eeding superior hybrids in few crops characterized by low volume, high value and amenable to hybrid technology.
2.4 In addition to the ICAR and Agriculture University research system, about 13 privatesector seed companies are actively involved in vegetable R&D (Table 2). Some of them have joint ventures with multinational or companies specializing in vegetable crop research and utilize research facilities available with their overseas partners.Few have created facilities for field testingimported and public bred varieties.The role of private sector in vegetable research is primarily in the development of F hybrids and few open pollinated varileties.
Hybrid Vegetable and Melon seedss of Private R&D available in the market ( 1996-97)
Crop No. of
Companies No. of hybrid
Varieties
Tomatoes 11 45
Brinjal 10 38
Chilli 8 27
Bhendi 13 25
Cabbage 11 40
Cauliflower 8 21
Ridgegourd 6 8
Watermelon 5 13
Muskmelon 2 7
2.5 Number of private/public hybrids in major crops in market during 1995 are compared with the number in 1997 in table 3.
Table 3 : Number of private and public bred hybrids in major crops in the market during 1995 and 1997.
Number of Hybrids in Market
1995 1997
Crop Private Public Private Public No of Private Hybrids
grown on 2% plus area
Pearl Millet 50 04 60 06 14
Sorghum 22 04 41 05 6
Maize 57 03 67 03 12
Sunflower 47 05 35 06 10
Cotton 73 15 150 15 19
Hybrid Rice 4 4 8 4 -
2.6 In pearl millet, sorghum, maize and cotton number of hybrids introduced by private, companies has been steadily increasing. Many hybrids especially in paddy and cotton have regional adaptability . The number of hybrids which are accepted by the farmers and may be grown on 2 percent or more area is much lesser, so also the number evaluated in coordinated project trails or identified for release.
2.7 Many hybrids recently supplied by the private sector embodies new technology which is either imported or developed by private companies. Private R&D 's real investment in research has quadrupled between 1986 and 1997. Subsidiaries or joint ventures with multinational companies account for 30 percent of all private seed industry research in 1997. Both domestic companies and
multinationals companies have started research programs on rice and mustard. Recently, Monsanto has also focused on hybrid wheat.
2.8 Few private sector companies have also initiated joint ventures ( e.g. Mahyco-Monsanto Biotech, ProAgro-Agro-Evo) to transfer specific genes to their product lines to provide effective protection against pests. Some of them have taken initiative to treat their seed with high-tech chemicals to provide protection against sucking pests ( aphids, jassids, thrips) during seedling and grand growth crop stages and diseases (downy mildew in bajra) during flowering.
Commercial seed production
2.9 Majority of certified/ commercial seed is produced under contract with trained seed multipliers in suitable agro-climatic conditions. Both public and private companies make contact with progressive farmers or trained seed multipliers and negotiate terms and conditions of production. Individual seed multipliers have small areas to contract and this greatly increases the cost of production and administration. To overcome this situation, contracts are arranged through local organizers, who in turn contract individual farmers, consolidate individual fields intoblocks and supply to the company the ultimate product. Companies generallyprepare a technical package for seed multiplication specifying the kind of soil needed, isolation distances required, staggered plantion in case of a hybrid if needed, distances among rows and plants, depth of planting, time of nutrient and spray applications, frequency and time of irrigation, mode of harvest especially in case of hybrid seed etc. They prefer to contract between 300-400 acres in a village and designate such an area as a "seed village" . They create seed processing facilities and place technically trained staff to guide seed multipliers, monitor actual production and supervise seed processing. Generally one such unit serves a cluster of 5-10 seed villages
2.10 Only seed lots meeting genetic Purity, Physical Purity, germination and disease standards prescribed by the government of India, are packed and commercially sold. User- farmers have become very conscious not only of genetic purity and germination, but also of physical attributes of seeds. They prefer bold, shining and plump seed, unaffected by mould The companies therefore, organize seed production in areas with appropriate agro-climatic conditions and no rains in the post-flowering period of seed crop. They also ensure proper cleaning to remove undersized, premature, broken seeds or inert matter on cleaner-cumgraders, gravitv table, de-stoners and thus improve physical attributes of seed lots. Seeds are treated with recommended pesticides to prevent them against stored grain and soil pests. To add value to their seed, many companies now treat them with specific chemicals to provide protection agains sucking pests during seedling stages or specific diseases such as downys mildew for 40-45 days after emergence.
2.11 The seed production of most hybrid crops is generally undertaken in Western and Southern parts of the country because of congenial agro-climatic conditions and possibility of taking two seed crops in a year if necessary . The prominent states are Gujrat, Manarashtra, Andhra Pradesh, Karnataka and Tamil Nadu. In contrast, the Northern states from Punjab to West Bengal are dominated by rice, wheat, and legume crops which are less profitable. Consequently there is a major difference in the cadre of seed industry between the North and West/ South of India.
2.12 Technology of seed production is moving at a rapid pace. Hence the companies have to ensure that they pass on the technology to the cont ract seed multipliers to harvest high yields of good quality seeds. Most public bred hybrids and variety seeds are certified while the proprietary hybrid seeds are sold under truthful label. All seeds meet minimum prescribed standards but for proprietary hybrids quality monitorimng is through their in-house system.
Private Hybrid's Share of Seed market
2.13 Private sector has played a major role in supplying quality seeds of both private and/or public hybrids. It is interesting to note that 69% of the pearl millet seeds produced during 1996-97 season was of private hybrids (Table4). Other crops where private research plays key role in seed supply are sudangrass sorghym (100%), sunflower (98%), Maize (90%), sorghum (52%) and cotton (50%). The contribution of private research in value terms is also streadily increasing (Table5). The share of research hybrids to total turnover in these crops was about 70 percent in 1996-97 as compared with 46 percent in 1990-91. Private hybrids are successfully meeting the regional needs of early maturity, tolerance to pests, unpredictable agro-climatic condition and soil variations.
Government intervention: Legislation and Policy issue
2.14 At the highest level, government policy is to reduce controls and to make the economic system more transparent in practice however, there is potential proliferation of legislation affecting seed sector. Given the current climate of economic development there is an urgent need for positive relationship between the government and the private sector. in order to fulfill farmer's needs and GOI food production targets set for the year 2005, the existing misapprehensions should disappear to ensure private sector investment in infrastructural improvement and expansion to increase quality seed production.
2.15 Presently Indian seed industry is governed by the following Acts:
- Seed Act 1966
- Seed Rules 1968
- Seed Control Order 1983
- Essential Commodities Act 1955
- Package Commodities order 1975
- Standrads of Weights and Measures Act 1976
- Consumer Protection Act 1986
- Export Regulations and Quarantine
- Plants, Fruits and Seeds (Regulation of import into India) Order 1989
- Urban Land Ceiling Act 1976
- State Acts of land acquisition/land use
- State Acts for the control/movement of crops and seeds
2.16 The policy framework hitherto has been regulatory with excessive legislation. Above plethora of legislation covering the seed sector is out of date and restrictive rather than progressive. The multiplicity of Acts, rules and administrative orders have resulted in over regulation of the nascent industry.
3 Future Trends
3.1 During past four decades spectacular progress has been achieved in agricultural production in the country. Compared to 51 million tons of food grain production in 1950-51, India realized a food grain production of over 196 million tons during 1997-98, resulting not only in self-sufficiency in food but also in a buffer stock of over 30 million tons. Food grain production is expected to cross 200 million tons in current year (1998-99). In the oilseed sector, which is primarily production was coupled with important polivy planning and research and technology development transormation. The steady increase in productivity has been accomplished by exploiting hybrid vigour in maize, sorghum, pearl millet, sunflower, cotton, castor and improved genetic potential of high yielding varieties in wheat, paddy, many legumes and oilseed crops. The superiority was for high inherent harvest index,
inbuilt resistance to major disease-pest complex, ability to withstand environmental stress conditions, adjusting growth cycle to better suit the available growing conditions, generally greater physiological efficiency and/or improved quality.
3.2 Nineties focused on exploiting hetrosis in rice, rapeseed-mustard and cajanas for enhanced productivity, sustainability and utilizing the vast agricultural potential which still remains highly under-relized through bridging the serious gaps in inherent yield potential and ensuring a rapid technology transfer to increase national average yields leading to increased productivity.
3.3 The Indian seed industry shows a clear pattern of development that also reflects in government policies. The decade, after the announcement of New Seed Policy of 1988, witnessed entry of major multinational companies and foreign genetic material to the Indian seed market. Nineties also saw proliferation of domestic seed companies into more dynamic prevailing economic climate. Although public sector dominance continues in open pollinated variety seeds, the private sector is steadily increasing its market share of hybrid seeds. Commercially the seed industry is going through a period of accelerated development with activities now including in-house research, adoption of agro-biotechnology and genetic engineering techniques.
3.4 Till such time that the population stablizes, the demand for food would continue to increase. To keep pace with the present rate of population growth and consumption pattern, India's food requirement has been estimated to cross 225 million tons mark by 2005. The certified/quality seed distribution has considerably increased from a mere 18,300 tons in 1952-53 to over one million tons in 1997-98. The quality seed requirements are estimated to increase to 1.8 million tons by 2005 AD. If the population growth continues at current rate, the country qould require 300 million tons of food to feed an estimated 1.4 billion people by the year 2025. This will only be possible with an average agricultural growth rate of about 5 percent annually. India, therefore, need to continue the green revolution through introduction of value added superior genetic material possessing inherent high yield potential even under environmental stress conditions and genetically engineered or chemically induced seed treated tolerance to major disease-pest complex. Then only the income levels of small and marginal farmers who dominate Indian agriculture today will rise. Accomplishing such targets of production will not be an easy task considering the fast declining input use efficinecy for major cropping systems and rapidly shrinking resources base.
3.5 Future agricultural development would be guided not only by the compulsions of improving food and nutritional security but also major concerns for environmental protection, sustainablity and profitability. Following GATT agreement and the liberalization process, globalization of market would call for competitiveness and efficiency of agricultural production. Projected population migration from rural to urban areas will also demand a significant shift in the pattern of the food basket. Developments in bio-technology, molecular biology including genetic engineering and new cutting edge technologies in recent years will provide new potential for accelerated growth. Used in consort with conventional approach and harnessed judiciously, these new break throughs would help increase agricultural productivity and sustainablity.
3.6 To meet the future challenges of increased productivity - a daunting national need, the problem oriented, demand driven, value added approach of integrated research and development involving all reasonable players as partners would offer practical solution. This would necessitate an active co-operation between the public and private solution. This would necessitate an active co-operation between the public and private sector agricultural reasearch, massive private investments in R&D, global exchange of germplasm and technology and necessary changes in government policies to create a congenial environment to encourage entry and active participation of technology rich foreign private companies in Indian seed market. Investments and technology
would needed to breed
hybrids and varieties with high inherent genetic yield potential with value added traits, incorporated through genetic engineering to improve nutrition, provide protection against major pest-disease complex, inbuilt drought tolerance to ensure increased productivity even for arid and semiarid zones of the country. Bio-technology applications would not only minimize loss of biodiversity but will also expedite introduction of high yielding traits in desired crops of major economic importance.
3.7 ICAR is currently preparing a new prespective plan to upgrade farm research and man power development systems in the country. They are being reoriented to ensure sustainability and globalization of agriculture with emphasis on diversification, value addition and to encourage exports. This is opportune time for bold initiatives and policy decisions in support of private R&D which is steadily becoming stronger. The number of proprietary hybrids is increasing rapidly. Hybrids in rice are being commercialized. Hybrids in rapeseed-mustard and cajanas are on threshold of commercialization. Research efforts to evolve hybrids in wheat are on. Innovations in genetic engineering are being incorporated in Indian products; in cotton to provide resistance to Heliothis bollworm; in brinjal, cauliflower and cabbage among vegetables for black moth. Genetically engineered products will probably enter commercial market in early next decade. The present value of formal seed market estimated at Rs. 20,190 crore, i.e. US$ 480 million with private sector contributing approximately 72 percent, is likely to double in next 3-4 years. There is lot to be gained from these synergies that remain untapped between government laboratories, industrys and academia. It is an appropriate time for an effective partnership between ICAR projects and institutes, state agricultural universities and private R&D to evolve.
3.8 Time is ripe for a second green revolution which would not only concentrate on increased productivity but also on value added traits to reduce cultivation cost, pollution dangers and improve quality of products. Rapid developments in biotechnology, particularly in genetic competition. Indian seed industry is ready to face the chaallenge. Government is also cognizant of need to remove bureaucratic hurdles to its expansion. It is most opportune time for government to take bold decisions in favour of private sector development. It needs to start recognizing and rewarding innovations and encourage domestic companies to invest greater resources in research. Amended Indian Patents Act Of 1910 includes biotechnology and genetically engineered product patents and has been Passed by Rajya Sabha (Upper House). Government should expedite implementation of Plant Variety and Farmer's Rights Protection Bill. These steps would send right signals to the international of Plant Variety and Farmer's Rights Protection Bill. These steps would send right signals to the international seed market and would encourage massive investments both from multinational and domestic seed companies to set up high-tech R&D, seed productiona nd conditioning facilities to produce seed meeting international standards, for both domestic market and for export. Seed industry needs to become technology driven and innovation led. This transition will have to be facilitated through innovating strategies where both government and industry are partners. The private sector's R&D emphasis on hybrids would also then include open pollinated varieties in major self-pollinated crops where hybrid systems are not yet identified. As the business expands, large companies would create a full line of products to meet their dealer's demands. Since most of this technology will be high value proprietary products, many farmers are likely to become contract growers. Their risk will be limited, and profits although smaller will be guaranteed. New technology thus holds the potential to make farming more secure and profitable.
3.9 The guiding philosophy of ICAR research for next millennium's hi-tech environment should be to complement private sector R&D efforts. ICAR's "research product mix" should reflect priorities and targets that continuously evolve in response to changing internal and external
research environment. Its policies should consider a shift in emphasis to upstream research producing mainly intermediate outputs, i.e. inputs to further research, which in turn will yield better products.
3.10 In past 4-5 years over 19 billion US dollars have been committed to mergers, acquisitions and technology alliances in the crop genetic industry world wide. There has also been increadible growth of big company R&D budgets in this area. The agriculture in the developing world is becoming like any other industry and is being dominated by a hand full of big technology developers. Until a decade ago hundreds of competing companies except for one or two big ones accounted for nearly half of total seed market share. Now the technology is a hand full of large companies developing the technology and controlling much of the industry and fewer smaller players. This worldwide changes would have a major impact on the pattern of Indian seed industry growth in the coming cenutry.
3.11 Seed industry wourldwide is also going through a rapid technology revolution with value added output traits at its center, driven by consumer and commercial end users. It involves all aspects of agri-biotechnology and crop production. Emphasis is on proprietary genes in value added crops for the feed, food, chemical and pharmaceutical industries at the center of new seed industry. This change to value added agriculture will also have major impact on restructuring of Indian seed sector, hence seed business in coming decades. It will become more difficult for seed companies to assess new technology. In the changing seed industry scenario, seed companies in India will continue small-scale plant breeding, product testing and maintaining a strong, localized seed distribution network with cordial customer relationship. Using this strength they can get involved in alliances and agreements that may ensure access to the future technology. The future trend is quite clear from Monsanto's equity acquisition in Mahyco; Mahyco-Monsanto Biotech Ltd.; Monsanto acquiring Cargill and buying equity in E.I.D.Parry's seed business; Agr-Evo acquiring Pro-agro; Semenis buying 40 percent additional equity stock in Nath Sluis and so on. Hence the Indian seed companies will continue to play a basic and important role. Like present day contract grower farmers, small seed companies of all sizes will increasing become contract producers and developers for the bigh technology rich companies. Because of rapidly changing new technology the seed industry world over is going through a radical change with a whole new future of rapid growth ahead of it. Indian seed sector would have no option but to follow that path with active government support and huge private investments wherever needed.
3.12 A large cadre of highly skilled seed multipliers exist. Companies both in public and private sector have developed systems for training technical man power to monitor expanded infrastructure. As their R&D gains strength, they will develop new hybrids and varieties suitable not only for Indian market but also for the agro-climatic conditions prevailing in the export market. India's low cost skills at all levels of seed industry from research through seed production coupled with range of environments suitable for production of most crop seeds and rapid flow of technology offers excellent base for competitive supplies in the international market.
3.13 Indian seed industry has reached a stage of maturity and is in a position to shape itself to compete at national and international levels. This maV however, be recognized taht private sector for some more time will continue to concentrate on more lucrative sector of the market, with a strong emphasis on hybrids and the more specialized low volume crops, e.g. vegetables. Fundamental strength and potential of Indian seed market cannot be doubted. The country has a very large population and a strong commitment to self-sufficiency in food production. This can only be acheived by increasing productivity per unit area.
3.14 High quality improved variety seed has already been accepted by the educated, well-to-do
farmers. They ahve derived benefits by using superior genetic material and the associated technology by harvesting high yields. They realize that seed is the cheapest input in their total cost of cultivation and hence are willing to pay its fair price. They would certainly try high-tech value added seed as and when they appear in the market place and if convinced of their benefits accept them. The challenge in the coming years would be to convince the small and marginal farmers to accept quality seed of
recommended, adaptable, improved hybrids of varieties. Regional private sector seed companies would probably specialize in specific farming systems to cater to the needs of such arming families in their entirety by developing area specific technology considering the economic condition and the agro-climate of the region. These companies would play a crucial role as catalyst in transferring such technologies from research labs to the farmers fields.
3.15 Indian economy is opening up the opportunities and challenges offered by the globalization of agriculture, particularly in the seed sector. Given that the prevaling uncertainites about legislative changes which currently retard seed industry growth are favourably clarified, the present trend of industry's acceleated growth in domestic market, value addition to their products, custom production and export will continue. Indian seed industry is on the threshold of becoming a global player. Begininning next century, Indian private sector can look forward to playing a key role in the development of Indian seed industry and take its rightful place in the global market.
PRESENT STATUS OF INDIAN SEED INDUSTRY VALUE ADDITION THROUGH BIO-TECHNOLOGICAL APPLICATIONS AND THEIR RELEVANCE TO FARMERS
Kuldip R. Chopra Ph.D. (USA)
Director, Research and Production
Mahendra Hybri Seeds Co., Ltd. A-10 Old MIDC, Jalna 431 203, India.
1. Introduction
1.1 Increased food production must keep pace with the country's population increase. Not only the quantity of food made available should improve. To keep pace with the present population growth and consumption pattern, India's food requirement has been estimated to cross 225 million tons by 2005 AD. This would mean an annual agricultural growth rate of 6.7 percent, a daunting task considering the rapidly shrinking resource-base and fast declining input-use efficiency in major cropping systems. Not withstanding the impressive gain in the agricultural production, the vast agricultural potential still remains highly under-utilized. There are serious gaps both in farm yield realization and technology transfer, as the national average yield of most crop varieties of most crop varieties is low.
1.2 Not many superior varieties is mot pulses, many oilseeds and vegetable crops have been evolved in recent past. In case of vegetables the varieties which were imported or developed many decades ago are still being grown by the farmers. Their yields are low and their inherent ability to respond to improve production technology is also limited. Farmers have accepted bybrids in my vegetable crops such as cabbage, tomato and capsicum.
PRESENT STATUS
2. Research and Technology Transfer
2.1 The Central and State governments continued to invest heavilyu in research, hence the Indian public sector research system has increased in size in real terms but by mid 90s leveled off. The number of hybrids and varieties developed and released by ICAR Crop Improvement Projects and State Agricultural Universities in major and minor crops are enormous and have been well documented.
2.2 Private reasearch to develop superior hybrids was initiated by few seed companies in mid 60s. By 1987-88, the number increased to over 12 and in 1997-98 it is estimated at 34. With the governments recognition of provate sector's performance capabilities and with "New Seed Policy" announced in 1988 , the number of private companies involved in crop improvement programs have been steadily increasing ( Table 1 ).
Number of Private Companies Engaged in Crop improvement Program (1987- 1998)
Number of Companies with Crop
Improvement Programs
Crop 1987-88 1993-94 1997-98
Pearl Millet 12 23 25
Sorghum 10 12 15
maize 06 15 20
Sunflower 10 30 20
Cotton 09 21 34
Hibrid Rice - 4 6
2.3 For want of financial , infrastructural and trained human resources, most private companies specialize in br eeding superior hybrids in few crops characterized by low volume, high value and amenable to hybrid technology.
2.4 In addition to the ICAR and Agriculture University research system, about 13 privatesector seed companies are actively involved in vegetable R&D (Table 2). Some of them have joint ventures with multinational or companies specializing in vegetable crop research and utilize research facilities available with their overseas partners.Few have created facilities for field testingimported and public bred varieties.The role of private sector in vegetable research is primarily in the development of F hybrids and few open pollinated varileties.
Hybrid Vegetable and Melon seedss of Private R&D available in the market ( 1996-97)
Crop No. of
Companies No. of hybrid
Varieties
Tomatoes 11 45
Brinjal 10 38
Chilli 8 27
Bhendi 13 25
Cabbage 11 40
Cauliflower 8 21
Ridgegourd 6 8
Watermelon 5 13
Muskmelon 2 7
2.5 Number of private/public hybrids in major crops in market during 1995 are compared with the number in 1997 in table 3.
Table 3 : Number of private and public bred hybrids in major crops in the market during 1995 and 1997.
Number of Hybrids in Market
1995 1997
Crop Private Public Private Public No of Private Hybrids
grown on 2% plus area
Pearl Millet 50 04 60 06 14
Sorghum 22 04 41 05 6
Maize 57 03 67 03 12
Sunflower 47 05 35 06 10
Cotton 73 15 150 15 19
Hybrid Rice 4 4 8 4 -
2.6 In pearl millet, sorghum, maize and cotton number of hybrids introduced by private, companies has been steadily increasing. Many hybrids especially in paddy and cotton have regional adaptability . The number of hybrids which are accepted by the farmers and may be grown on 2 percent or more area is much lesser, so also the number evaluated in coordinated project trails or identified for release.
2.7 Many hybrids recently supplied by the private sector embodies new technology which is either imported or developed by private companies. Private R&D 's real investment in research has quadrupled between 1986 and 1997. Subsidiaries or joint ventures with multinational companies account for 30 percent of all private seed industry research in 1997. Both domestic companies and
multinationals companies have started research programs on rice and mustard. Recently, Monsanto has also focused on hybrid wheat.
2.8 Few private sector companies have also initiated joint ventures ( e.g. Mahyco-Monsanto Biotech, ProAgro-Agro-Evo) to transfer specific genes to their product lines to provide effective protection against pests. Some of them have taken initiative to treat their seed with high-tech chemicals to provide protection against sucking pests ( aphids, jassids, thrips) during seedling and grand growth crop stages and diseases (downy mildew in bajra) during flowering.
Commercial seed production
2.9 Majority of certified/ commercial seed is produced under contract with trained seed multipliers in suitable agro-climatic conditions. Both public and private companies make contact with progressive farmers or trained seed multipliers and negotiate terms and conditions of production. Individual seed multipliers have small areas to contract and this greatly increases the cost of production and administration. To overcome this situation, contracts are arranged through local organizers, who in turn contract individual farmers, consolidate individual fields intoblocks and supply to the company the ultimate product. Companies generallyprepare a technical package for seed multiplication specifying the kind of soil needed, isolation distances required, staggered plantion in case of a hybrid if needed, distances among rows and plants, depth of planting, time of nutrient and spray applications, frequency and time of irrigation, mode of harvest especially in case of hybrid seed etc. They prefer to contract between 300-400 acres in a village and designate such an area as a "seed village" . They create seed processing facilities and place technically trained staff to guide seed multipliers, monitor actual production and supervise seed processing. Generally one such unit serves a cluster of 5-10 seed villages
2.10 Only seed lots meeting genetic Purity, Physical Purity, germination and disease standards prescribed by the government of India, are packed and commercially sold. User- farmers have become very conscious not only of genetic purity and germination, but also of physical attributes of seeds. They prefer bold, shining and plump seed, unaffected by mould The companies therefore, organize seed production in areas with appropriate agro-climatic conditions and no rains in the post-flowering period of seed crop. They also ensure proper cleaning to remove undersized, premature, broken seeds or inert matter on cleaner-cumgraders, gravitv table, de-stoners and thus improve physical attributes of seed lots. Seeds are treated with recommended pesticides to prevent them against stored grain and soil pests. To add value to their seed, many companies now treat them with specific chemicals to provide protection agains sucking pests during seedling stages or specific diseases such as downys mildew for 40-45 days after emergence.
2.11 The seed production of most hybrid crops is generally undertaken in Western and Southern parts of the country because of congenial agro-climatic conditions and possibility of taking two seed crops in a year if necessary . The prominent states are Gujrat, Manarashtra, Andhra Pradesh, Karnataka and Tamil Nadu. In contrast, the Northern states from Punjab to West Bengal are dominated by rice, wheat, and legume crops which are less profitable. Consequently there is a major difference in the cadre of seed industry between the North and West/ South of India.
2.12 Technology of seed production is moving at a rapid pace. Hence the companies have to ensure that they pass on the technology to the cont ract seed multipliers to harvest high yields of good quality seeds. Most public bred hybrids and variety seeds are certified while the proprietary hybrid seeds are sold under truthful label. All seeds meet minimum prescribed standards but for proprietary hybrids quality monitorimng is through their in-house system.
Private Hybrid's Share of Seed market
2.13 Private sector has played a major role in supplying quality seeds of both private and/or public hybrids. It is interesting to note that 69% of the pearl millet seeds produced during 1996-97 season was of private hybrids (Table4). Other crops where private research plays key role in seed supply are sudangrass sorghym (100%), sunflower (98%), Maize (90%), sorghum (52%) and cotton (50%). The contribution of private research in value terms is also streadily increasing (Table5). The share of research hybrids to total turnover in these crops was about 70 percent in 1996-97 as compared with 46 percent in 1990-91. Private hybrids are successfully meeting the regional needs of early maturity, tolerance to pests, unpredictable agro-climatic condition and soil variations.
Government intervention: Legislation and Policy issue
2.14 At the highest level, government policy is to reduce controls and to make the economic system more transparent in practice however, there is potential proliferation of legislation affecting seed sector. Given the current climate of economic development there is an urgent need for positive relationship between the government and the private sector. in order to fulfill farmer's needs and GOI food production targets set for the year 2005, the existing misapprehensions should disappear to ensure private sector investment in infrastructural improvement and expansion to increase quality seed production.
2.15 Presently Indian seed industry is governed by the following Acts:
- Seed Act 1966
- Seed Rules 1968
- Seed Control Order 1983
- Essential Commodities Act 1955
- Package Commodities order 1975
- Standrads of Weights and Measures Act 1976
- Consumer Protection Act 1986
- Export Regulations and Quarantine
- Plants, Fruits and Seeds (Regulation of import into India) Order 1989
- Urban Land Ceiling Act 1976
- State Acts of land acquisition/land use
- State Acts for the control/movement of crops and seeds
2.16 The policy framework hitherto has been regulatory with excessive legislation. Above plethora of legislation covering the seed sector is out of date and restrictive rather than progressive. The multiplicity of Acts, rules and administrative orders have resulted in over regulation of the nascent industry.
3 Future Trends
3.1 During past four decades spectacular progress has been achieved in agricultural production in the country. Compared to 51 million tons of food grain production in 1950-51, India realized a food grain production of over 196 million tons during 1997-98, resulting not only in self-sufficiency in food but also in a buffer stock of over 30 million tons. Food grain production is expected to cross 200 million tons in current year (1998-99). In the oilseed sector, which is primarily production was coupled with important polivy planning and research and technology development transormation. The steady increase in productivity has been accomplished by exploiting hybrid vigour in maize, sorghum, pearl millet, sunflower, cotton, castor and improved genetic potential of high yielding varieties in wheat, paddy, many legumes and oilseed crops. The superiority was for high inherent harvest index,
inbuilt resistance to major disease-pest complex, ability to withstand environmental stress conditions, adjusting growth cycle to better suit the available growing conditions, generally greater physiological efficiency and/or improved quality.
3.2 Nineties focused on exploiting hetrosis in rice, rapeseed-mustard and cajanas for enhanced productivity, sustainability and utilizing the vast agricultural potential which still remains highly under-relized through bridging the serious gaps in inherent yield potential and ensuring a rapid technology transfer to increase national average yields leading to increased productivity.
3.3 The Indian seed industry shows a clear pattern of development that also reflects in government policies. The decade, after the announcement of New Seed Policy of 1988, witnessed entry of major multinational companies and foreign genetic material to the Indian seed market. Nineties also saw proliferation of domestic seed companies into more dynamic prevailing economic climate. Although public sector dominance continues in open pollinated variety seeds, the private sector is steadily increasing its market share of hybrid seeds. Commercially the seed industry is going through a period of accelerated development with activities now including in-house research, adoption of agro-biotechnology and genetic engineering techniques.
3.4 Till such time that the population stablizes, the demand for food would continue to increase. To keep pace with the present rate of population growth and consumption pattern, India's food requirement has been estimated to cross 225 million tons mark by 2005. The certified/quality seed distribution has considerably increased from a mere 18,300 tons in 1952-53 to over one million tons in 1997-98. The quality seed requirements are estimated to increase to 1.8 million tons by 2005 AD. If the population growth continues at current rate, the country qould require 300 million tons of food to feed an estimated 1.4 billion people by the year 2025. This will only be possible with an average agricultural growth rate of about 5 percent annually. India, therefore, need to continue the green revolution through introduction of value added superior genetic material possessing inherent high yield potential even under environmental stress conditions and genetically engineered or chemically induced seed treated tolerance to major disease-pest complex. Then only the income levels of small and marginal farmers who dominate Indian agriculture today will rise. Accomplishing such targets of production will not be an easy task considering the fast declining input use efficinecy for major cropping systems and rapidly shrinking resources base.
3.5 Future agricultural development would be guided not only by the compulsions of improving food and nutritional security but also major concerns for environmental protection, sustainablity and profitability. Following GATT agreement and the liberalization process, globalization of market would call for competitiveness and efficiency of agricultural production. Projected population migration from rural to urban areas will also demand a significant shift in the pattern of the food basket. Developments in bio-technology, molecular biology including genetic engineering and new cutting edge technologies in recent years will provide new potential for accelerated growth. Used in consort with conventional approach and harnessed judiciously, these new break throughs would help increase agricultural productivity and sustainablity.
3.6 To meet the future challenges of increased productivity - a daunting national need, the problem oriented, demand driven, value added approach of integrated research and development involving all reasonable players as partners would offer practical solution. This would necessitate an active co-operation between the public and private solution. This would necessitate an active co-operation between the public and private sector agricultural reasearch, massive private investments in R&D, global exchange of germplasm and technology and necessary changes in government policies to create a congenial environment to encourage entry and active participation of technology rich foreign private companies in Indian seed market. Investments and technology
would needed to breed
hybrids and varieties with high inherent genetic yield potential with value added traits, incorporated through genetic engineering to improve nutrition, provide protection against major pest-disease complex, inbuilt drought tolerance to ensure increased productivity even for arid and semiarid zones of the country. Bio-technology applications would not only minimize loss of biodiversity but will also expedite introduction of high yielding traits in desired crops of major economic importance.
3.7 ICAR is currently preparing a new prespective plan to upgrade farm research and man power development systems in the country. They are being reoriented to ensure sustainability and globalization of agriculture with emphasis on diversification, value addition and to encourage exports. This is opportune time for bold initiatives and policy decisions in support of private R&D which is steadily becoming stronger. The number of proprietary hybrids is increasing rapidly. Hybrids in rice are being commercialized. Hybrids in rapeseed-mustard and cajanas are on threshold of commercialization. Research efforts to evolve hybrids in wheat are on. Innovations in genetic engineering are being incorporated in Indian products; in cotton to provide resistance to Heliothis bollworm; in brinjal, cauliflower and cabbage among vegetables for black moth. Genetically engineered products will probably enter commercial market in early next decade. The present value of formal seed market estimated at Rs. 20,190 crore, i.e. US$ 480 million with private sector contributing approximately 72 percent, is likely to double in next 3-4 years. There is lot to be gained from these synergies that remain untapped between government laboratories, industrys and academia. It is an appropriate time for an effective partnership between ICAR projects and institutes, state agricultural universities and private R&D to evolve.
3.8 Time is ripe for a second green revolution which would not only concentrate on increased productivity but also on value added traits to reduce cultivation cost, pollution dangers and improve quality of products. Rapid developments in biotechnology, particularly in genetic competition. Indian seed industry is ready to face the chaallenge. Government is also cognizant of need to remove bureaucratic hurdles to its expansion. It is most opportune time for government to take bold decisions in favour of private sector development. It needs to start recognizing and rewarding innovations and encourage domestic companies to invest greater resources in research. Amended Indian Patents Act Of 1910 includes biotechnology and genetically engineered product patents and has been Passed by Rajya Sabha (Upper House). Government should expedite implementation of Plant Variety and Farmer's Rights Protection Bill. These steps would send right signals to the international of Plant Variety and Farmer's Rights Protection Bill. These steps would send right signals to the international seed market and would encourage massive investments both from multinational and domestic seed companies to set up high-tech R&D, seed productiona nd conditioning facilities to produce seed meeting international standards, for both domestic market and for export. Seed industry needs to become technology driven and innovation led. This transition will have to be facilitated through innovating strategies where both government and industry are partners. The private sector's R&D emphasis on hybrids would also then include open pollinated varieties in major self-pollinated crops where hybrid systems are not yet identified. As the business expands, large companies would create a full line of products to meet their dealer's demands. Since most of this technology will be high value proprietary products, many farmers are likely to become contract growers. Their risk will be limited, and profits although smaller will be guaranteed. New technology thus holds the potential to make farming more secure and profitable.
3.9 The guiding philosophy of ICAR research for next millennium's hi-tech environment should be to complement private sector R&D efforts. ICAR's "research product mix" should reflect priorities and targets that continuously evolve in response to changing internal and external
research environment. Its policies should consider a shift in emphasis to upstream research producing mainly intermediate outputs, i.e. inputs to further research, which in turn will yield better products.
3.10 In past 4-5 years over 19 billion US dollars have been committed to mergers, acquisitions and technology alliances in the crop genetic industry world wide. There has also been increadible growth of big company R&D budgets in this area. The agriculture in the developing world is becoming like any other industry and is being dominated by a hand full of big technology developers. Until a decade ago hundreds of competing companies except for one or two big ones accounted for nearly half of total seed market share. Now the technology is a hand full of large companies developing the technology and controlling much of the industry and fewer smaller players. This worldwide changes would have a major impact on the pattern of Indian seed industry growth in the coming cenutry.
3.11 Seed industry wourldwide is also going through a rapid technology revolution with value added output traits at its center, driven by consumer and commercial end users. It involves all aspects of agri-biotechnology and crop production. Emphasis is on proprietary genes in value added crops for the feed, food, chemical and pharmaceutical industries at the center of new seed industry. This change to value added agriculture will also have major impact on restructuring of Indian seed sector, hence seed business in coming decades. It will become more difficult for seed companies to assess new technology. In the changing seed industry scenario, seed companies in India will continue small-scale plant breeding, product testing and maintaining a strong, localized seed distribution network with cordial customer relationship. Using this strength they can get involved in alliances and agreements that may ensure access to the future technology. The future trend is quite clear from Monsanto's equity acquisition in Mahyco; Mahyco-Monsanto Biotech Ltd.; Monsanto acquiring Cargill and buying equity in E.I.D.Parry's seed business; Agr-Evo acquiring Pro-agro; Semenis buying 40 percent additional equity stock in Nath Sluis and so on. Hence the Indian seed companies will continue to play a basic and important role. Like present day contract grower farmers, small seed companies of all sizes will increasing become contract producers and developers for the bigh technology rich companies. Because of rapidly changing new technology the seed industry world over is going through a radical change with a whole new future of rapid growth ahead of it. Indian seed sector would have no option but to follow that path with active government support and huge private investments wherever needed.
3.12 A large cadre of highly skilled seed multipliers exist. Companies both in public and private sector have developed systems for training technical man power to monitor expanded infrastructure. As their R&D gains strength, they will develop new hybrids and varieties suitable not only for Indian market but also for the agro-climatic conditions prevailing in the export market. India's low cost skills at all levels of seed industry from research through seed production coupled with range of environments suitable for production of most crop seeds and rapid flow of technology offers excellent base for competitive supplies in the international market.
3.13 Indian seed industry has reached a stage of maturity and is in a position to shape itself to compete at national and international levels. This maV however, be recognized taht private sector for some more time will continue to concentrate on more lucrative sector of the market, with a strong emphasis on hybrids and the more specialized low volume crops, e.g. vegetables. Fundamental strength and potential of Indian seed market cannot be doubted. The country has a very large population and a strong commitment to self-sufficiency in food production. This can only be acheived by increasing productivity per unit area.
3.14 High quality improved variety seed has already been accepted by the educated, well-to-do
farmers. They ahve derived benefits by using superior genetic material and the associated technology by harvesting high yields. They realize that seed is the cheapest input in their total cost of cultivation and hence are willing to pay its fair price. They would certainly try high-tech value added seed as and when they appear in the market place and if convinced of their benefits accept them. The challenge in the coming years would be to convince the small and marginal farmers to accept quality seed of
recommended, adaptable, improved hybrids of varieties. Regional private sector seed companies would probably specialize in specific farming systems to cater to the needs of such arming families in their entirety by developing area specific technology considering the economic condition and the agro-climate of the region. These companies would play a crucial role as catalyst in transferring such technologies from research labs to the farmers fields.
3.15 Indian economy is opening up the opportunities and challenges offered by the globalization of agriculture, particularly in the seed sector. Given that the prevaling uncertainites about legislative changes which currently retard seed industry growth are favourably clarified, the present trend of industry's acceleated growth in domestic market, value addition to their products, custom production and export will continue. Indian seed industry is on the threshold of becoming a global player. Begininning next century, Indian private sector can look forward to playing a key role in the development of Indian seed industry and take its rightful place in the global market.
Opportunities in Indian Seeds Industry
Opportunities in Indian Seeds Industry
The Indian seed industry is the eighth largest in the world with an estimated value of INR 49 billion (USD 1.06 Billion) and with an annual growth rate of 12% to 13 %. The industry has shown a buoyant growth over the last two years on well supportive monsoons. The development of private seed industry is no more confined to just production and marketing of seed. It has well acquired technological strength to cater to the varietal needs of tomorrow. Along with industries Indian farmers have in recent years adopted intensive cultivation practices in order to meet the growing demand for agricultural produce.
If we look at the production capacity 70% of India’s seeds’ sales come from farmer bred seeds, 26% from those bred in publicly financed institutions, and only 4% from researched hybrids. The domestic hybrid seeds market is placed at INR 4.9 Billion and is annually growing at 10% a year, against the 5% global growth rate. Here, majors players like Monsanto India and Syngenta India dominate the hybrid seed market. The home market works out to about 3.7% of the global market.
As the organized Indian seed industry is just forty years old. Yet, its growth has been phenomenal. India is among the few countries where the seed sector is already reasonably advanced.
Content:
Chapter 1 : An overview of the Development of Indian Seed Industry
1.1 An overview of the development of world seed industry
1.2 The course of development of Indian Seed Industry
1.3 Main features of Indian Seed Industry
1.4 Main segment markets of Indian Seed Industry
Chapter 2 Current scenario of Indian Seed Industry
2.1 Current developments in Indian Seed Industry
2.2 Factors affecting the development of Indian Seed Industry
2.3 Analysis of the degree of concentration of Indian Seed Industry
Chapter 3 Main Market Segments of Indian Seed Industry
3.1 Indian seed market for paddy
3.2 Indian corn seed market
3.3 Indian vegetable seed market
3.4 Analysis of other seed markets in India
Chapter 4 Seed Market Analysis of India
4.1 Cost analysis of Indian seed production
4.2 Analysis of factors impacting on market demands for the seed industry of India
4.3 Analysis of the circulation systems of Indian seed market
Chapter 5 Future Trends of Indian Seed Industry
5.1 Impact on demands for seeds from rice, corn, etc. growing areas
5.2 The impact from genetic modification technology on seed industry
5.3 Main future trends of Indian Seed Industry
The Indian seed industry is the eighth largest in the world with an estimated value of INR 49 billion (USD 1.06 Billion) and with an annual growth rate of 12% to 13 %. The industry has shown a buoyant growth over the last two years on well supportive monsoons. The development of private seed industry is no more confined to just production and marketing of seed. It has well acquired technological strength to cater to the varietal needs of tomorrow. Along with industries Indian farmers have in recent years adopted intensive cultivation practices in order to meet the growing demand for agricultural produce.
If we look at the production capacity 70% of India’s seeds’ sales come from farmer bred seeds, 26% from those bred in publicly financed institutions, and only 4% from researched hybrids. The domestic hybrid seeds market is placed at INR 4.9 Billion and is annually growing at 10% a year, against the 5% global growth rate. Here, majors players like Monsanto India and Syngenta India dominate the hybrid seed market. The home market works out to about 3.7% of the global market.
As the organized Indian seed industry is just forty years old. Yet, its growth has been phenomenal. India is among the few countries where the seed sector is already reasonably advanced.
Content:
Chapter 1 : An overview of the Development of Indian Seed Industry
1.1 An overview of the development of world seed industry
1.2 The course of development of Indian Seed Industry
1.3 Main features of Indian Seed Industry
1.4 Main segment markets of Indian Seed Industry
Chapter 2 Current scenario of Indian Seed Industry
2.1 Current developments in Indian Seed Industry
2.2 Factors affecting the development of Indian Seed Industry
2.3 Analysis of the degree of concentration of Indian Seed Industry
Chapter 3 Main Market Segments of Indian Seed Industry
3.1 Indian seed market for paddy
3.2 Indian corn seed market
3.3 Indian vegetable seed market
3.4 Analysis of other seed markets in India
Chapter 4 Seed Market Analysis of India
4.1 Cost analysis of Indian seed production
4.2 Analysis of factors impacting on market demands for the seed industry of India
4.3 Analysis of the circulation systems of Indian seed market
Chapter 5 Future Trends of Indian Seed Industry
5.1 Impact on demands for seeds from rice, corn, etc. growing areas
5.2 The impact from genetic modification technology on seed industry
5.3 Main future trends of Indian Seed Industry
Structure of the Indian Seed Industry
Structure of the Indian Seed Industry
Although the Indian seed market is one of the largest, it is almost exclusively supplied by locally produced seeds. Farmers retain seed of major food crops (wheat, rice, sorghum, millet, corn, and pulses) and commercial crops for many years, and the largest volume of seed trade involves local exchanges of established self-pollinating varieties. The seed replacement rate in most crops is very low, with the exception of cotton and some vegetables. The use of hybrid seeds is mostly confined to cotton, and to some extent to corn, millet, sunflower, and few vegetables. However, awareness about the high yield and quality of produce from hybrid seeds, attracting farmers to switch over to hybrids, is growing. The Indian seed industry used to be dominated by public sector seed companies. However, following the easing of government regulations and the implementation of a new seed policy in 1988, the private sector seed companies have started playing a major role in seed development and marketing. More recently, the government’s decision to embrace biotechnology as a means of achieving food security has attracted several leading biotechnology-focused multinational seed companies to India. The composition of the seed industry, by volume of turnover, has reportedly reached a ratio of 60:40 between the private and public sectors.
Public Sector Seeds Companies
Public sector involvement in the seed industry on a national scale began at the beginning of the “green revolution” with the establishment of the National Seed Corporation (NSC) in 1963, which was charged with the responsibility of promoting seed industry development from production through processing, storage and marketing, and establishing a system of quality control. Before that, the Indian seed industry was little developed apart from a small number of private companies dealing with high value vegetable and flower seeds. In the initial years of operation, the NSC concerned itself mainly with foundation seed production and with seed certification after the enactment of Seed Act in 1966. The State Seed Corporations (SSC) were established later with support from the World Bank, initially in nine states, and later expanded to cover 13 states, for production and handling of seed in their respective states.
The role of public sector seed companies is now mostly confined to certified seeds of high volume, low value segment of high yielding varieties of cereals, pulses, and cotton with a limited presence in the high value hybrid sectors of cotton, cereals, and vegetables. Wheat and paddy seed constitutes a major share of the seeds handled by them. The NSC and SSCs work closely together to coordinate procurement and sales prices as well as variety demand and supply. Their presence is considered necessary by the government to ensure the availability of reasonably priced seeds of major crops throughout the country and to make sure that private sector seed companies do not enjoy and exploit unreasonable market power.
The public sector seed companies, however, lag behind in research; they are mostly dependent on public research institutions, under the aegis of Indian Council of Agricultural Research (ICAR) and State Agricultural Universities (SAUs) for their breeder seed requirements. Based on feed back from dealers and end-users, the public sector seed companies/state governments forecast seed demand for various crops three years in advance and a requirement for breeder seeds is placed with the GOI’s Ministry of Agriculture.
Using the breeder seeds supplied by government research institutes, the public sector seed companies produce foundation seeds on government farms or reliable, well-trained contract farms. These are further multiplied in contract farmers’ fields next year as certified seeds for commercial distribution. If for some reasons (drought or other weather calamities) the supply of certified seeds falls short of requirements, the public sector seed companies source commercial grain from the market, upgrade the quality, and after proper testing distribute it as quality seeds.
All seed grown by contract growers for seed corporations meeting the specified standards attract a premium price over and above the commercial grain price for that crop. The premium can vary between 25 percent for cereals to over 100 percent for hybrids. In the public sector, NSC is usually the retail price setter with the SSCs following NSC prices in determining their own for similar or substitute varieties. For self-pollinated field crops, an accepted basis is to add a margin of 15 to 25 percent on production costs. For hybrid seeds of cereals and vegetables, prices to some degree reflect market trends. However, there is government intervention in the pricing of seeds produced by public sector corporations with the degree of intervention varying from state to state. Some states are now thinking of giving greater autonomy to their seed corporations to make them financially viable by allowing them to market private branded seeds, domestically produced or imported. An advantage to the government seed companies is that they have a vast distribution network and trusted brand image. The reason why they are losing market share is because seeds by private companies often outperform the publicly available varieties. Some SSCs have started their own research to evolve superior propriety hybrids.
Private Sector Seed Companies
Easing of government regulations in the late 1980s spurred enormous development within the seed industry by attracting several foreign seed companies to India. While some of them (like Cargill) entered through joint venture partnerships with Indian seed companies, some others already had a presence in India through affiliate companies (like Hindustan Lever).
They identified potential crops for hybridization and started research and development activities. Typically they concentrated on hybrids, mainly corn, cotton, sunflower, vegetables, and flowers (more recently on rice), and they now account for a major share of commercial production of these seeds in India. The basic reason for the private sector’s focus on these crops is that it involves low production volume and higher margins. Concomitantly, they had little interest in developing self-pollinated crops, which involve high volume and low margin and are more prone to piracy in the absence of an effective Plant Variety Protection regime in India. Furthermore, there is no significant government intervention in the pricing of these hybrids, and the Indian seed regulations permit marketing of truthfully labeled seeds.
Currently, some 500 hybrids of field crops and vegetables are being marketed, as truthfully labeled seeds, mostly by private seed companies. The private seed sector now comprises some twenty or so large players (with sales turnover exceeding rs. 200 million), several medium companies (sales turn over between rs. 200 million and 20 million), and a large number of small, unorganized players (sales turnover less than rs. 20 million) with local presence.
The private seed industry is now undergoing a transition following the Indian government’s focus on biotechnology research, as a means of increasing agricultural production and also driven by trends in the domestic and world seed market. Intensifying international competition, increasing R&D costs, and the complexity of biotechnology have lead to increased consolidation of the Indian seed industry with several of the large and medium companies merging or being taken over by multinational seed companies. Most large multinational seed companies now have their presence in India (either as a joint venture or with 100 percent equity) with their main focus on biotechnology. These include Monsanto, Bayer CropScience, Syngenta, Advanta, Hicks-Muse-Tate, Emergent Genetics, Dow Agro, Bioseed Genetics International Inc., Tokita Seed Co, and Nunhems Zaden BV.
Another factor attracting international seed companies to India is the country’s varied agroclimatic conditions and abundant skilled and unskilled labor, as seed production, particularly hybrid seed production, is highly labor intensive. Private seed production is largely centered around Bangalore for vegetable crops and Hyderabad for field crops, particularly cottonseeds.
The emergence of these two seed production centers is due to ideal climatic conditions, better infrastructure, the technology and research leadership, and the expertise of the two regions’ seed farmers in manipulating crops for perfectly synchronized flowering. The initial focus of many of these companies has been cottonseed, for which genetically modified (Bt) hybrids have already been approved by the Indian government for commercial cultivation, with other bio-engineered crops in the pipeline. Most of these companies have licensing agreement with Monsanto for the Bt gene; some are trying to develop their own Bt technology, legally or illegally.
The seed industry is represented at the national level by two associations “ The Seed Association of India” based in New Delhi and the “Association of Seed Industries” based in Mumbai. Recently, a third association called All India Crop Biotechnology Association (AICBA), was formed with members from mostly hybrid seed producers and multinationals like Monsanto and Dow Chemicals.
Variety Development
Variety development (especially for self-pollinated crops) is predominantly carried out in the public sector, although in recent years there is growing private sector involvement, which focuses mainly on hybrid cereals, cotton, sunflower, vegetables, and flowers. The private sector is also actively involved in developing bio-engineered crops of cotton, oilseeds, and other crops. The ICAR, operating through 30 All India Coordinated Crop Improvement Projects (AICCIPs), five Crop Directorates, and seven National Research Centers coordinates public sector plant breeding. Basic genetic material from which new varieties are developed is available from the institutions’ own resources and from the National Bureau of Plant Genetic Resources (NBPGR), through which India has established a working relationship with international agricultural research centers. ICAR’s own institutes and several SAUs at research centers located in different parts of the country and focusing on various agroclimatic zones carry out the AICCIPs.
The present arrangement in India for variety development, testing, evaluation, and release are as follows:
§ New varieties are developed by SAUs, ICAR institutes, and private seed companies.
§ Varieties that show some promise are entered into the All India Coordinated Trials (AICT) operated by SAUs, ICAR institutes, and State Agricultural Departments under the auspices of ICAR.
§ Results of the AICT are presented at the respective Annual Workshops of participating
scientists working on the particular crop, where recommendations are formulated for submission to the Variety Release Sub-Committee of the Central Seed Committee who makes final recommendations to the Agriculture Ministry on which varieties should be released and notified.
Public-Private Sector Cooperation
Cooperation between private sector seed companies and public research institutes under ICAR, SAUs, and the International Crop Research Institute for Semi-Arid Tropics (ICRISAT), supported by the Consultative Group on International Agricultural Research (CGIAR), is growing. Public sector breeder seeds are available free of charge to private seed companies with no strings attached. The AICT annual workshops provide venues to private sector seed companies to assess what is available with public research institutes. Under the “consortium” model with ICRISAT, private companies can jointly fund research that results in publicly available parental lines, which they often cross with in-house genetics to produce proprietary hybrids. ICRISAT recently introduced a live-in campus for private sector researchers to use the institutions’ facilities and expertise. ICRISAT is focusing more on private sector partnerships for funding reasons and also because of private companies’ effectiveness in getting the research result out to farmers. ICRISAT is currently reviewing its policy of keeping all research in the public domain and is considering licensing/royalties/exclusive rights. Private companies can also fully fund research at SAUs for exclusive rights on the results and/or hire professors as consultants, although the degree of cooperation varies from state to state.
Although the Indian seed market is one of the largest, it is almost exclusively supplied by locally produced seeds. Farmers retain seed of major food crops (wheat, rice, sorghum, millet, corn, and pulses) and commercial crops for many years, and the largest volume of seed trade involves local exchanges of established self-pollinating varieties. The seed replacement rate in most crops is very low, with the exception of cotton and some vegetables. The use of hybrid seeds is mostly confined to cotton, and to some extent to corn, millet, sunflower, and few vegetables. However, awareness about the high yield and quality of produce from hybrid seeds, attracting farmers to switch over to hybrids, is growing. The Indian seed industry used to be dominated by public sector seed companies. However, following the easing of government regulations and the implementation of a new seed policy in 1988, the private sector seed companies have started playing a major role in seed development and marketing. More recently, the government’s decision to embrace biotechnology as a means of achieving food security has attracted several leading biotechnology-focused multinational seed companies to India. The composition of the seed industry, by volume of turnover, has reportedly reached a ratio of 60:40 between the private and public sectors.
Public Sector Seeds Companies
Public sector involvement in the seed industry on a national scale began at the beginning of the “green revolution” with the establishment of the National Seed Corporation (NSC) in 1963, which was charged with the responsibility of promoting seed industry development from production through processing, storage and marketing, and establishing a system of quality control. Before that, the Indian seed industry was little developed apart from a small number of private companies dealing with high value vegetable and flower seeds. In the initial years of operation, the NSC concerned itself mainly with foundation seed production and with seed certification after the enactment of Seed Act in 1966. The State Seed Corporations (SSC) were established later with support from the World Bank, initially in nine states, and later expanded to cover 13 states, for production and handling of seed in their respective states.
The role of public sector seed companies is now mostly confined to certified seeds of high volume, low value segment of high yielding varieties of cereals, pulses, and cotton with a limited presence in the high value hybrid sectors of cotton, cereals, and vegetables. Wheat and paddy seed constitutes a major share of the seeds handled by them. The NSC and SSCs work closely together to coordinate procurement and sales prices as well as variety demand and supply. Their presence is considered necessary by the government to ensure the availability of reasonably priced seeds of major crops throughout the country and to make sure that private sector seed companies do not enjoy and exploit unreasonable market power.
The public sector seed companies, however, lag behind in research; they are mostly dependent on public research institutions, under the aegis of Indian Council of Agricultural Research (ICAR) and State Agricultural Universities (SAUs) for their breeder seed requirements. Based on feed back from dealers and end-users, the public sector seed companies/state governments forecast seed demand for various crops three years in advance and a requirement for breeder seeds is placed with the GOI’s Ministry of Agriculture.
Using the breeder seeds supplied by government research institutes, the public sector seed companies produce foundation seeds on government farms or reliable, well-trained contract farms. These are further multiplied in contract farmers’ fields next year as certified seeds for commercial distribution. If for some reasons (drought or other weather calamities) the supply of certified seeds falls short of requirements, the public sector seed companies source commercial grain from the market, upgrade the quality, and after proper testing distribute it as quality seeds.
All seed grown by contract growers for seed corporations meeting the specified standards attract a premium price over and above the commercial grain price for that crop. The premium can vary between 25 percent for cereals to over 100 percent for hybrids. In the public sector, NSC is usually the retail price setter with the SSCs following NSC prices in determining their own for similar or substitute varieties. For self-pollinated field crops, an accepted basis is to add a margin of 15 to 25 percent on production costs. For hybrid seeds of cereals and vegetables, prices to some degree reflect market trends. However, there is government intervention in the pricing of seeds produced by public sector corporations with the degree of intervention varying from state to state. Some states are now thinking of giving greater autonomy to their seed corporations to make them financially viable by allowing them to market private branded seeds, domestically produced or imported. An advantage to the government seed companies is that they have a vast distribution network and trusted brand image. The reason why they are losing market share is because seeds by private companies often outperform the publicly available varieties. Some SSCs have started their own research to evolve superior propriety hybrids.
Private Sector Seed Companies
Easing of government regulations in the late 1980s spurred enormous development within the seed industry by attracting several foreign seed companies to India. While some of them (like Cargill) entered through joint venture partnerships with Indian seed companies, some others already had a presence in India through affiliate companies (like Hindustan Lever).
They identified potential crops for hybridization and started research and development activities. Typically they concentrated on hybrids, mainly corn, cotton, sunflower, vegetables, and flowers (more recently on rice), and they now account for a major share of commercial production of these seeds in India. The basic reason for the private sector’s focus on these crops is that it involves low production volume and higher margins. Concomitantly, they had little interest in developing self-pollinated crops, which involve high volume and low margin and are more prone to piracy in the absence of an effective Plant Variety Protection regime in India. Furthermore, there is no significant government intervention in the pricing of these hybrids, and the Indian seed regulations permit marketing of truthfully labeled seeds.
Currently, some 500 hybrids of field crops and vegetables are being marketed, as truthfully labeled seeds, mostly by private seed companies. The private seed sector now comprises some twenty or so large players (with sales turnover exceeding rs. 200 million), several medium companies (sales turn over between rs. 200 million and 20 million), and a large number of small, unorganized players (sales turnover less than rs. 20 million) with local presence.
The private seed industry is now undergoing a transition following the Indian government’s focus on biotechnology research, as a means of increasing agricultural production and also driven by trends in the domestic and world seed market. Intensifying international competition, increasing R&D costs, and the complexity of biotechnology have lead to increased consolidation of the Indian seed industry with several of the large and medium companies merging or being taken over by multinational seed companies. Most large multinational seed companies now have their presence in India (either as a joint venture or with 100 percent equity) with their main focus on biotechnology. These include Monsanto, Bayer CropScience, Syngenta, Advanta, Hicks-Muse-Tate, Emergent Genetics, Dow Agro, Bioseed Genetics International Inc., Tokita Seed Co, and Nunhems Zaden BV.
Another factor attracting international seed companies to India is the country’s varied agroclimatic conditions and abundant skilled and unskilled labor, as seed production, particularly hybrid seed production, is highly labor intensive. Private seed production is largely centered around Bangalore for vegetable crops and Hyderabad for field crops, particularly cottonseeds.
The emergence of these two seed production centers is due to ideal climatic conditions, better infrastructure, the technology and research leadership, and the expertise of the two regions’ seed farmers in manipulating crops for perfectly synchronized flowering. The initial focus of many of these companies has been cottonseed, for which genetically modified (Bt) hybrids have already been approved by the Indian government for commercial cultivation, with other bio-engineered crops in the pipeline. Most of these companies have licensing agreement with Monsanto for the Bt gene; some are trying to develop their own Bt technology, legally or illegally.
The seed industry is represented at the national level by two associations “ The Seed Association of India” based in New Delhi and the “Association of Seed Industries” based in Mumbai. Recently, a third association called All India Crop Biotechnology Association (AICBA), was formed with members from mostly hybrid seed producers and multinationals like Monsanto and Dow Chemicals.
Variety Development
Variety development (especially for self-pollinated crops) is predominantly carried out in the public sector, although in recent years there is growing private sector involvement, which focuses mainly on hybrid cereals, cotton, sunflower, vegetables, and flowers. The private sector is also actively involved in developing bio-engineered crops of cotton, oilseeds, and other crops. The ICAR, operating through 30 All India Coordinated Crop Improvement Projects (AICCIPs), five Crop Directorates, and seven National Research Centers coordinates public sector plant breeding. Basic genetic material from which new varieties are developed is available from the institutions’ own resources and from the National Bureau of Plant Genetic Resources (NBPGR), through which India has established a working relationship with international agricultural research centers. ICAR’s own institutes and several SAUs at research centers located in different parts of the country and focusing on various agroclimatic zones carry out the AICCIPs.
The present arrangement in India for variety development, testing, evaluation, and release are as follows:
§ New varieties are developed by SAUs, ICAR institutes, and private seed companies.
§ Varieties that show some promise are entered into the All India Coordinated Trials (AICT) operated by SAUs, ICAR institutes, and State Agricultural Departments under the auspices of ICAR.
§ Results of the AICT are presented at the respective Annual Workshops of participating
scientists working on the particular crop, where recommendations are formulated for submission to the Variety Release Sub-Committee of the Central Seed Committee who makes final recommendations to the Agriculture Ministry on which varieties should be released and notified.
Public-Private Sector Cooperation
Cooperation between private sector seed companies and public research institutes under ICAR, SAUs, and the International Crop Research Institute for Semi-Arid Tropics (ICRISAT), supported by the Consultative Group on International Agricultural Research (CGIAR), is growing. Public sector breeder seeds are available free of charge to private seed companies with no strings attached. The AICT annual workshops provide venues to private sector seed companies to assess what is available with public research institutes. Under the “consortium” model with ICRISAT, private companies can jointly fund research that results in publicly available parental lines, which they often cross with in-house genetics to produce proprietary hybrids. ICRISAT recently introduced a live-in campus for private sector researchers to use the institutions’ facilities and expertise. ICRISAT is focusing more on private sector partnerships for funding reasons and also because of private companies’ effectiveness in getting the research result out to farmers. ICRISAT is currently reviewing its policy of keeping all research in the public domain and is considering licensing/royalties/exclusive rights. Private companies can also fully fund research at SAUs for exclusive rights on the results and/or hire professors as consultants, although the degree of cooperation varies from state to state.
The Evolution of the Seed Industry in India
From a predominently public sector producing varieties suited for Green Revolution agriculture in the 1960’s, the Indian seed industry has evolved into a multi-faceted industry with a large involvment of private firms and increasing emphasis on research and development.
In its initial stage, the Indian seed industry consisted primarily of two national organizations. The National Seeds Corporation was established in 1963, and for about 13 years, it was the main organization in charge of the production and marketing of commercial seeds (1). NSC was assisted by the Rockefeller Foundation and USAID in its mission of quality control and training in seed production. A second national agency, the States Farms Corporation of India Limited (SFCL), was formed in 1969 with the mandate of producing breeder, foundation, and certified seeds of high yielding varieties. With its 12 large mechanized farms located in 8 different states, the SFCL continues to be the largest seed-producing agency in the country.
In the 1970’s and 1980’s, 13 State Seeds Corporations were formed on the model of the Terai Seed Development Corporation as a joint effort of the G. B. Pant Agricultural University in Uttar Pradesh and the World Bank, which financed two successive National Seed Projects in 1977 and 1978 (2). The SSC largely took over the role of the NSC in individual states. As Bharat Dogra points it out, the Indian seed sector has been and continues to be dependent on foreign funds and inputs for its development. For instance, Jonhson E. Douglas - a former seed specialist with the Rockefeller Foundation - played a major role in orienting India’s seed programme in the 1960’s (3). And recently, in 1990-91, National Seed Project III was launched thanks to a third World Bank loan. Its thrust was to upgrade the efficiency and infrastucture of the public seed sector (the NSC, SFCL, SSC, as well as the Seed Certification Agency, and the Central and State Seed Testing Laboratories). World Bank loans are not ’neutral’, and the restructuration of the seed sector is highly imbued with concepts of cost efficiency and rational investment.
The main task of the public sector today lies in meeting the national seed requirement for high volume, low value crops like self-pollinated crops such as rice or wheat. These seeds are supplied at fixed rates (determined by the government), and the NSC and SSC have incurred major deficits, because fixed prices do not always reflect the actual costs of production, processing, and distribution.
Private seed firms slowly emerged throughout the 60’s and the 70’s, with a number of them benefitting from NSC’s technical assistance. Many of these firms have developed their own breeding programmes, and released inbred improved cultivars. Firms set their own prices for their own hybrid varieties of crops such as pearl millet, sunflower, cotton, sorghum, and maize. These private hybrids represent an important share of the market for these crops. For public-bred varieties, private companies have to respect fixed government prices.
The production of hybrid seeds is to a large extent the prerogative of the private sector. Of all improved cutivars bred and marketed by private companies until 1993, nearly 70% were hybrids. Since hybrid seeds can not be multiplied in farmers’ fields, they must be bought from the company every time they are raised. This high seed replacement rate ensures firms good sales. That is not the case with high yielding varieties of crops like wheat or rice, for which the replacement rate fluctuates between 9 and 14%.
Apart from hybrids, the private sector is also largely involved in the commercialization of low volume, high value crops such as vegetable seeds.
With some 500 companies of various sizes, 24 of which with links to multinationals, the private sector contributes a little less than 50% of the commercial seed requirement for the country today.
In the recent years, partly as a consequence of the reduction of barriers on the entry of foreign firms and large Indian conglomerates into the seed industry (dating from1986), many joint ventures between foreign and Indian firms have entered the seed market. Private sector research is also fast expanding, with investments in research tripling between 1986 and 1995.
In its initial stage, the Indian seed industry consisted primarily of two national organizations. The National Seeds Corporation was established in 1963, and for about 13 years, it was the main organization in charge of the production and marketing of commercial seeds (1). NSC was assisted by the Rockefeller Foundation and USAID in its mission of quality control and training in seed production. A second national agency, the States Farms Corporation of India Limited (SFCL), was formed in 1969 with the mandate of producing breeder, foundation, and certified seeds of high yielding varieties. With its 12 large mechanized farms located in 8 different states, the SFCL continues to be the largest seed-producing agency in the country.
In the 1970’s and 1980’s, 13 State Seeds Corporations were formed on the model of the Terai Seed Development Corporation as a joint effort of the G. B. Pant Agricultural University in Uttar Pradesh and the World Bank, which financed two successive National Seed Projects in 1977 and 1978 (2). The SSC largely took over the role of the NSC in individual states. As Bharat Dogra points it out, the Indian seed sector has been and continues to be dependent on foreign funds and inputs for its development. For instance, Jonhson E. Douglas - a former seed specialist with the Rockefeller Foundation - played a major role in orienting India’s seed programme in the 1960’s (3). And recently, in 1990-91, National Seed Project III was launched thanks to a third World Bank loan. Its thrust was to upgrade the efficiency and infrastucture of the public seed sector (the NSC, SFCL, SSC, as well as the Seed Certification Agency, and the Central and State Seed Testing Laboratories). World Bank loans are not ’neutral’, and the restructuration of the seed sector is highly imbued with concepts of cost efficiency and rational investment.
The main task of the public sector today lies in meeting the national seed requirement for high volume, low value crops like self-pollinated crops such as rice or wheat. These seeds are supplied at fixed rates (determined by the government), and the NSC and SSC have incurred major deficits, because fixed prices do not always reflect the actual costs of production, processing, and distribution.
Private seed firms slowly emerged throughout the 60’s and the 70’s, with a number of them benefitting from NSC’s technical assistance. Many of these firms have developed their own breeding programmes, and released inbred improved cultivars. Firms set their own prices for their own hybrid varieties of crops such as pearl millet, sunflower, cotton, sorghum, and maize. These private hybrids represent an important share of the market for these crops. For public-bred varieties, private companies have to respect fixed government prices.
The production of hybrid seeds is to a large extent the prerogative of the private sector. Of all improved cutivars bred and marketed by private companies until 1993, nearly 70% were hybrids. Since hybrid seeds can not be multiplied in farmers’ fields, they must be bought from the company every time they are raised. This high seed replacement rate ensures firms good sales. That is not the case with high yielding varieties of crops like wheat or rice, for which the replacement rate fluctuates between 9 and 14%.
Apart from hybrids, the private sector is also largely involved in the commercialization of low volume, high value crops such as vegetable seeds.
With some 500 companies of various sizes, 24 of which with links to multinationals, the private sector contributes a little less than 50% of the commercial seed requirement for the country today.
In the recent years, partly as a consequence of the reduction of barriers on the entry of foreign firms and large Indian conglomerates into the seed industry (dating from1986), many joint ventures between foreign and Indian firms have entered the seed market. Private sector research is also fast expanding, with investments in research tripling between 1986 and 1995.
An overview of Indian Retail Industry
Brief of Indian Retail Industry, ways to enter in Indian Retail Industry, FDI, Favourable condition and threats in Indian Retail Industry
FOR IMMEDIATE RELEASE
PRLog (Press Release) – Aug 04, 2009 – Table of content
Industry Overview
Retailing in India
FDI in Retail format
Favourable Condition for retail
Other barriers for Organised retail
Retailing Formats in India
Overview
In terms of value, the Indian Retail industry is worth $300 billion. Its contribution to the Gross Domestic Product is about 10%, the highest compared to all other Indian Industries. The retail sector has also contributed to 8% of the employment of the country. The organised retail sector is expected to triple its size by 2010. The food and grocery retail sector is expected to multiply five times in the same time frame. The government policies are being..........
Retailing in India: the present scenario
The present value of the Indian retail market is estimated by the India Retail Report to be around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different types of retail industries present in India. Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world.
According to Indian Brand Equity Foundation, retail trade accounts for 12 per cent of the country's GDP and is expected to approach 22 per cent by 2010. A report from McKinsey, 'The rise of Indian Consumer Market', foresees the Indian consumer market growing by four times by the year 2025.
The contribution of retail sector to GDP has been manifested below:
Country Retail Sector's share in GDP (in %)
India 12
USA 10
China 8
Brazil 6
Retailing Format in India
Malls:
Malls are the largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon.
Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods.
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc.
Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop.
Hyper marts/Supermarkets:
Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium
MBO’s:
Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros
Cash & Carry
Cash and carry is a form of trade in which goods are sold from a wholesale warehouse operated either on a self-service basis, or on the basis of samples. Though wholesalers buy primarily from manufacturers and sell mostly to retailers, industrial users and other wholesalers, they also perform many value added functions
FDI in Indian Retail Industry
In the present scenario, 51% Foreign Direct Investment is permitted in India only through single brand retailing and FDI upto 100 per cent allowed under the automatic route for cash and carry wholesale
Since FDI is allowed only in single brand retailing - the multi-brand multiple product retailers like Wal-Mart and Tesco cannot sell directly to consumers. This is where the Indian partner comes in. They enter in India by tie up with Indian players.
Available Route for foreign player to enter in Indian Retail Market
Strategic License Agreement
A foreign player can be entering this route by licensing agreement with a domestic retailer or partnering with Indian promoter owned companies.
Cash-and-Carry Wholesale Retailing
Since FDI is 100 percent in this format which involves building of a large distribution network
Distribution
A foreign company can set up a distribution office in India and supply products to local retailers. Franchisee outlets can also set up in this route
Franchisee Route
The entry route, which includes the master franchise and the regional franchise routes, is widely used, with a number of international brands to set a presence in India
Manufacturing
A company can establish its manufacturing unit in India along with standalone retailing outlets.
Joint Venture
International firms can enter into agreements with domestic players and set up base in India. Share of MNCs is restricted to 49 per cent in this route.
International Player and via they enter in India.....
Advantage of Increasing FDI
The global retailers taken together buy about $60 billion of goods each year from China for exports. Contrast this with India where less than $1 billion of exports are accounted for by global retailers (mostly metro dairy farm). Increasing FDI will increase India’s exports.
FDI would bring about modern infrastructure that would help to boost the productivity of the organised retail sector in India
Demerits of FDI
The most important factor against FDI driven “modern retailing” is that it is labour displacing to the extent that it can only expand by destroying the traditional retail sector. Till such time we are in a position to create jobs on a large scale in manufacturing, it would make eminent sense that any policy that results in the e,....................................
Conditions Favours Retail in India
The trends that favouring retail in India are
1. Rise in the purchasing power of Indians- the rise in the per capita income in the last few years has been magnificent. This has led to the generation of insatiable wants of the upper and middle class. The demand of new as well as second hand durables has risen throughout the country thus providing the incentive for taking up retailing.
2. Favorable to farmers- retailing has helped in removing the middlemen and has thus enhanced the remuneration to farmers. This is a new revolution in the agricultural sector in India and will go a long way in amending the condition of agriculture, a major concern
.......................................................
Barriers to FDI
FDI not permitted in pure retailing
Franchisee arrangement allowed
Absence of global players
Limited exposure to best practices
Lack of Industry Status
Government does not recognize the industry
Restricted availability of finance
Restricts growth and scaling up
FOR IMMEDIATE RELEASE
PRLog (Press Release) – Aug 04, 2009 – Table of content
Industry Overview
Retailing in India
FDI in Retail format
Favourable Condition for retail
Other barriers for Organised retail
Retailing Formats in India
Overview
In terms of value, the Indian Retail industry is worth $300 billion. Its contribution to the Gross Domestic Product is about 10%, the highest compared to all other Indian Industries. The retail sector has also contributed to 8% of the employment of the country. The organised retail sector is expected to triple its size by 2010. The food and grocery retail sector is expected to multiply five times in the same time frame. The government policies are being..........
Retailing in India: the present scenario
The present value of the Indian retail market is estimated by the India Retail Report to be around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different types of retail industries present in India. Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world.
According to Indian Brand Equity Foundation, retail trade accounts for 12 per cent of the country's GDP and is expected to approach 22 per cent by 2010. A report from McKinsey, 'The rise of Indian Consumer Market', foresees the Indian consumer market growing by four times by the year 2025.
The contribution of retail sector to GDP has been manifested below:
Country Retail Sector's share in GDP (in %)
India 12
USA 10
China 8
Brazil 6
Retailing Format in India
Malls:
Malls are the largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon.
Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods.
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc.
Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop.
Hyper marts/Supermarkets:
Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium
MBO’s:
Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros
Cash & Carry
Cash and carry is a form of trade in which goods are sold from a wholesale warehouse operated either on a self-service basis, or on the basis of samples. Though wholesalers buy primarily from manufacturers and sell mostly to retailers, industrial users and other wholesalers, they also perform many value added functions
FDI in Indian Retail Industry
In the present scenario, 51% Foreign Direct Investment is permitted in India only through single brand retailing and FDI upto 100 per cent allowed under the automatic route for cash and carry wholesale
Since FDI is allowed only in single brand retailing - the multi-brand multiple product retailers like Wal-Mart and Tesco cannot sell directly to consumers. This is where the Indian partner comes in. They enter in India by tie up with Indian players.
Available Route for foreign player to enter in Indian Retail Market
Strategic License Agreement
A foreign player can be entering this route by licensing agreement with a domestic retailer or partnering with Indian promoter owned companies.
Cash-and-Carry Wholesale Retailing
Since FDI is 100 percent in this format which involves building of a large distribution network
Distribution
A foreign company can set up a distribution office in India and supply products to local retailers. Franchisee outlets can also set up in this route
Franchisee Route
The entry route, which includes the master franchise and the regional franchise routes, is widely used, with a number of international brands to set a presence in India
Manufacturing
A company can establish its manufacturing unit in India along with standalone retailing outlets.
Joint Venture
International firms can enter into agreements with domestic players and set up base in India. Share of MNCs is restricted to 49 per cent in this route.
International Player and via they enter in India.....
Advantage of Increasing FDI
The global retailers taken together buy about $60 billion of goods each year from China for exports. Contrast this with India where less than $1 billion of exports are accounted for by global retailers (mostly metro dairy farm). Increasing FDI will increase India’s exports.
FDI would bring about modern infrastructure that would help to boost the productivity of the organised retail sector in India
Demerits of FDI
The most important factor against FDI driven “modern retailing” is that it is labour displacing to the extent that it can only expand by destroying the traditional retail sector. Till such time we are in a position to create jobs on a large scale in manufacturing, it would make eminent sense that any policy that results in the e,....................................
Conditions Favours Retail in India
The trends that favouring retail in India are
1. Rise in the purchasing power of Indians- the rise in the per capita income in the last few years has been magnificent. This has led to the generation of insatiable wants of the upper and middle class. The demand of new as well as second hand durables has risen throughout the country thus providing the incentive for taking up retailing.
2. Favorable to farmers- retailing has helped in removing the middlemen and has thus enhanced the remuneration to farmers. This is a new revolution in the agricultural sector in India and will go a long way in amending the condition of agriculture, a major concern
.......................................................
Barriers to FDI
FDI not permitted in pure retailing
Franchisee arrangement allowed
Absence of global players
Limited exposure to best practices
Lack of Industry Status
Government does not recognize the industry
Restricted availability of finance
Restricts growth and scaling up
Agriculture Products And Agriculture Industry Products In India
Made-from-india.com launches a special agricultural products and agriculture industry products page of manufacturers, suppliers and exporters in India.
With an aim to aggressively address the needs of Indian agricultural Industry, Made-from-India.com has newly introduced a special agricultural feature page, agriculture.made-from-india.com.
It will act as a huge haunting ground for both buyers and sellers from the agricultural domain, seeking to strike profitable deals for both new and old agricultural products. The manufacturers, suppliers and exporters can post their agriculture sell leads and thereby close deals with the relevant buyers right away, while buyers can post their buy leads, and thereby zero down on quality suppliers.
The agriculture manufacturers, suppliers and exporters listed on our site are verified and therefore absolutely reliable. In fact, you can easily locate manufacturers, suppliers, dealers, exporters and importers of more than 1000 agricultural products.
Indian exports of agricultural and processed food products posted a 38 per cent increase in the 2007-08. Hopefully, the launch of this special agricultural feature page will provide a marked boost to the agricultural manufacturers and suppliers in India.
More Information Of Agriculture Products Click Here : http://agriculture.made-from-india.com/
With an aim to aggressively address the needs of Indian agricultural Industry, Made-from-India.com has newly introduced a special agricultural feature page, agriculture.made-from-india.com.
It will act as a huge haunting ground for both buyers and sellers from the agricultural domain, seeking to strike profitable deals for both new and old agricultural products. The manufacturers, suppliers and exporters can post their agriculture sell leads and thereby close deals with the relevant buyers right away, while buyers can post their buy leads, and thereby zero down on quality suppliers.
The agriculture manufacturers, suppliers and exporters listed on our site are verified and therefore absolutely reliable. In fact, you can easily locate manufacturers, suppliers, dealers, exporters and importers of more than 1000 agricultural products.
Indian exports of agricultural and processed food products posted a 38 per cent increase in the 2007-08. Hopefully, the launch of this special agricultural feature page will provide a marked boost to the agricultural manufacturers and suppliers in India.
More Information Of Agriculture Products Click Here : http://agriculture.made-from-india.com/
The Indian Agriculture Industry Overview
The Indian Agriculture Industry is on the brink of a revolution that will modernize the entire food chain, as the total food production in India is likely to double in the next ten years.
As per recent studies the turnover of the total food market is approximately Rs.250000 crores (US $ 69.4 billion) out of which value-added food products comprise Rs.80000 crores (US $ 22.2 billion). The Government of India has also approved proposals for joint ventures, foreign collaborations, industrial licenses and 100% export oriented units envisaging an investment of Rs.19100 crores (US $ 4.80 billion) out of which foreign investment is over Rs. 9100 crores (US $ 18.2 Billion). The agricultural food industry also assumes significance owing to India's sizable agrarian economy, which accounts for over 35% of GDP and employs around 65 per cent of the population. Both in terms of foreign investment and number of joint- ventures / foreign collaborations, the consumer food segment has the top priority. The other attractive features of the indian agro industry that have the capacity to lure foreigners with promising benefits are the deep sea fishing, aqua culture, milk and milk products, meat and poultry segments.
Excellent export prospects, competitive pricing of agricultural products and standards that are internationally comparable has created trade opportunities in the agro industry. This further has enabled the Indian Agriculture Industry Portal to serve as a means by which every exporter and importer of India and abroad, can fulfill their requirements and avail the benefits of agro related buy sell trade leads and other business opportunities.
This Indian agro industry revolution brings along the opportunities of profitable investment and agriculture-industry-india.com provides you the B2B platform with agro related trade leads, exporters & importers directory etc. that help you make your way to profit easy.
To lead yourself to the destination of profit through the Indian Agriculture Industry, know maximum about the EXIM policy, programs & schemes, price policy, seed policy and statistics at the Indian agro portal and harvest benefits from India, world's second largest producer of food and a country with a billion people. From canned, dairy, processed, frozen food to fisheries, meat, poultry, food grains, alcoholic beverages & soft drinks, the Indian agro industry has dainty areas to choose for business.
As per recent studies the turnover of the total food market is approximately Rs.250000 crores (US $ 69.4 billion) out of which value-added food products comprise Rs.80000 crores (US $ 22.2 billion). The Government of India has also approved proposals for joint ventures, foreign collaborations, industrial licenses and 100% export oriented units envisaging an investment of Rs.19100 crores (US $ 4.80 billion) out of which foreign investment is over Rs. 9100 crores (US $ 18.2 Billion). The agricultural food industry also assumes significance owing to India's sizable agrarian economy, which accounts for over 35% of GDP and employs around 65 per cent of the population. Both in terms of foreign investment and number of joint- ventures / foreign collaborations, the consumer food segment has the top priority. The other attractive features of the indian agro industry that have the capacity to lure foreigners with promising benefits are the deep sea fishing, aqua culture, milk and milk products, meat and poultry segments.
Excellent export prospects, competitive pricing of agricultural products and standards that are internationally comparable has created trade opportunities in the agro industry. This further has enabled the Indian Agriculture Industry Portal to serve as a means by which every exporter and importer of India and abroad, can fulfill their requirements and avail the benefits of agro related buy sell trade leads and other business opportunities.
This Indian agro industry revolution brings along the opportunities of profitable investment and agriculture-industry-india.com provides you the B2B platform with agro related trade leads, exporters & importers directory etc. that help you make your way to profit easy.
To lead yourself to the destination of profit through the Indian Agriculture Industry, know maximum about the EXIM policy, programs & schemes, price policy, seed policy and statistics at the Indian agro portal and harvest benefits from India, world's second largest producer of food and a country with a billion people. From canned, dairy, processed, frozen food to fisheries, meat, poultry, food grains, alcoholic beverages & soft drinks, the Indian agro industry has dainty areas to choose for business.
Agriculture in India
Agriculture in India is the means of livelihood of almost two thirds of the work force in the country. It has always been INDIA'S most important economic sector. The 1970s saw a huge increase in India's wheat production that heralded the Green Revolution in the country. The increase in post -independence agricultural production has been brought about by bringing additional area under cultivation, extension of irrigation facilities, use of better seeds, better techniques, water management, and plant protection. Dependence on India agricultural imports in the early 1960s convinced planners that India's growing population, as well as concerns about national independence, security, and political stability, required self-sufficiency in food production. This perception led to a program of agricultural improvement called the Green Revolution, to a public distribution system, and to price supports for farmers. The growth in food-grain production is a result of concentrated efforts to increase all the Green Revolution inputs needed for higher yields: better seed, more fertilizer, improved irrigation, and education of farmers. Although increased irrigation has helped to lessen year-to-year fluctuations in farm production resulting from the vagaries of the monsoons, it has not eliminated those fluctuations.
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