Indian seed industry- The journey so far and beyond

M. Prabhakar Rao, President, National Seed Association of India & Managing Director, Nuziveedu Seeds Limited

November 2015

Journey so far.. Key Milestones

1960’s1963: National

Seed Corporation

1966: Seed Act1969: Seed Rules

1969:HYVP

1970’s�1972: National

commission on Agriculture

� 1970s- Private sector started taking bigger role

�1975-80: SSCA,SSC,& STLs

1980’s�1980s-Rapid

growth of private sector- more focus on hybrids

�1988-New Seed policy

1990’s�1991-

Liberalization reforms

�1995- TRIPS & WTO

�1996-GM crop trials

2000 & present�2001:PVPFRA Act�2002: GM crops

commercialization�2002-Biodiversity

Act�2004- New Seed Bill

Source: NSAI data

Key legislations/Policies that shaped Indian seed industry

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Seed Act 1966

• Compulsory labeling and voluntary certification

• Focus on seed quality regulation

• To cover notified crops and varieties

Seed Control order 1983

• License for selling, exporting and importing seeds

• Powers to State Governments to regulate seed trade under EC act 1955

New policy on Seed Development,1988

• Encouraging commercial seed production by private sector

• Import of vegetable and flower seeds under OGL

• Time-bound Plant quarantine/Post entry quarantine system

• FDI permitted in seed sector since 1987.

Seed Bill 2004

(to be legislated)

• Compulsory registration of seed offered for sale after VCU testing

• Compulsory disclosure of performance in line with Consumer Protection Act.

• National seed registry

National Commission on Agriculture, 1971 recommended promotion of private sector in seed production. The National Seed policy 2002, encourages R&D in private sector and sets the context for growth of private sector in line with Seed Act, PVPFRA. Source: NSAI data

Key drivers for growth of seed industryDiverse agro-climatic conditions comprising tropical, sub-tropical & temperate climatesat different levels of humidity and temperatures, providing congenial atmosphere todevelop improved seeds for all important food grains ,commercial crops and vegetables.Second largest cropped area in the world at 198 mha

Important Centre of genetic diversity of major foodgrains, vegetables, horticultural crops endowed with rich natural resources and climatic diversity

Extensive National Agricultural Research System comprising ICAR and SAUs and an equally vibrant private sector R&D and technology development system

Skilled and trained manpower in Plant breeding, Seed technology, Agronomy, Biotechnology, Engineering, Information technology, etc. including Postgraduates and PhDs.

Systematic plant breeding, production, product evaluation and release processes driven by both Public and private sectors

Supportive Government policy and regulatory environment for creation of a vibrant seed sector and a huge unmet demand for quality seed of improved varieties & Hybrids

4

Leveraging Strengths in R&D

Well developed R&D –Institutional capacities in public sector, private sector and international agencies • National Agricultural Research System (NARS), comprising institutions of Indian Council of

Agricultural Research (ICAR) and State Agricultural Universities • International Research organizations under CGIAR- IRRI, ICRISAT,CIMMYT• Private sector R&D of Domestic Indian seed companies and MNCs

Large private sector firms more active in breeding and development of hybrids in Corn, Pearl millet, Sorghum, Rice, Cotton and several vegetables.

Public sector seed corporations and cooperatives focus on production of food grains (Cereals, Oilseeds and Pulses)

Small and medium private sector seed companies active in multiplying and distributing varieties developed by private and public sector breeding system.

Elaborate VCU testing system of NARS and private sector Product evaluation and technology development programs

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Seed production Vs Food grain production

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1950 1960 1970 1980 1990 2000 2010 2014 2020Food Grain (mil tons) 50 82 108 130 176 197 242 257 280Seed Production ( million tons) 0 0.02 0.05 0.2 0.6 0.86 2.57 3 3.5

50

82

108

130

176

197

242257

280

0 0.02 0.050.2

0.6

0.86

2.57

3

3.5

0

0.5

1

1.5

2

2.5

3

3.5

4

0

50

100

150

200

250

300

Mil

ton

s

~6X growth in food production and ~7x growth in Quality seed production

Source: Planning commission data 2013

Preference to quality of seeds of improved varieties-SRR growth

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Sl No. Crops 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

1 Wheat 13 18 13 16.5 17.6 22 25 27 32 33 33

2 Paddy 19 19 19 16 21 22 26 30 34 38 40

3 Gram 4 4 7 10 9 9 12 14 22 18 19

4 Urd 16.55 17 20.5 17 16 14 24 26 31 29 34

5 Moong 13.5 13.8 19.5 12.3 12.5 20 22 22 23 27 30

6 Arhar 8.7 8.8 13.6 9.8 10.5 11.5 16 16 28 17 22

7 G Nut 5 5.5 11 7 7 9.8 14 17 23 24.5 22.5

8 Soybean 12.4 12.5 15.6 27 28.8 28.4 33.4 35 38.95 36 53

Source: Seednet.gov.inMore than 40%-60% demand for Improved Quality

Seed to be met

0%

5%

10%

15%

20%

Wheat Rice Gram Blackgram Greengram Redgram Groundnut Soybean

CAGR of SRR (2001-2011)

Indian seed industry- A snapshot

8 CARE Report 2015

Value capture- Hybrid seed industry

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Adoption of Hybrids in Corn (60%) Adoption of Hybrids in Rice (5.2%)

CARE Report 2015

GM technologies in India

Bt Cotton, first and only GM Crop commercially released in India in 2002

Elaborate Biosafety mechanism institutionalized for evaluation, approval and release of GM crops under Cartagena protocol. Given below are GM technologies launched in India

• Mon 531-Cry 1 Ac - by Monsanto• Mon15985-Cry2Ab2 & Cry 1 Ac- by Monsanto• Event-1 Cry1 Ac by JK Agrigenetics• GTL-GFM311-7– Cry1Ab-Ac Fusion protein by Nath seeds/Global Transgenes • MLS 9124–Cry1C by MetaHelix

Technology well accepted by the farmers leading to 93% of the area converted into GM Cotton in a span of a decade. (2002-2012)

From 2002 to 2015 : Production increased from 2.0 to 3.9 million bales and productivity from 302 kg lint/ha to 550 kg lint/ha.

10 Source: ISAAA report 2014

GM Cotton adoption in India

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Source: ISAAA https://www.isaaa.org/resources/publications/biotech_crop_profiles/bt_cotton_in_india-a_country_profile/download/Bt_Cotton_in_India-2002-2014.pdfCCI data- http://cotcorp.gov.in/current-cotton.aspx?pageid=4

1% 1%6%

15%

42%

66%

81% 81%85%

88%93% 94% 94%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

2

4

6

8

10

12

14

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

GM crop adoption in India

Total Cotton area (Mil ha) GM crop area (Mil ha) % adoption

Source: ISAAA report 2014

GM Cotton-Benefits & challenges

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302

399470 472

521 554 524 503 517 493 518552 537

13.617.9

24.3 24.128 30.7 29 30.5

33.9 35.3 36.5 37.5 40

0

10

20

30

40

50

0

100

200

300

400

500

600

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Yiedl kg lint/ha Production-million bales

Challenges:• Yield stagnation after first 4 years (530-550 kg lint/ha). Indian Yields lower than global

average (770 kg lint/ha) & much lower than advanced Cotton growing countries (1000-2000 kg lint/ha).

• Complaints of High cost of seeds due to high trait value by farmers• Increasing labour costs affecting Cotton production/Relative profitability.• Adoption of hybrids also increased from 40% in 2002 to 95% presently in tandem with GM

crops. • Challenges to resistance management. Resurgence of minor pests and epidemics

increasing crop protection costs again to pre Bt era.• Disputes among parties of technology licensing agreements leading to demand for

regulation Source: CCI & ICAC data

Outlook for adoption on new technologies

New Biotechnologies including GM technologies required for addressing our productivity challenges within the ambit of biosafety and economic rationale.

Extensive testing including biosafety testing essential for getting approvals is necessary.

In balance with overall public interest and farmer interests, open access to technology to all eligible industry participants in line with ITPGRFA recommendations is essential.

Promotion of R&D on Molecular markers and New Plant breeding technologies (NPBTs) which can produce desired heritable outcomes without gene/genetic modification.

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Significant achievements for the industry

R&D

• With Public sector system laying foundation, supported by CGIAR and Private sector, a strong R&D setup developed for the seed industry.

• An extensive VCU testing, Biosafety and PVPFR evaluation framework developed

Regulation

• Since Seed Act 1966, A well organized institutional setup for Seed certification and quality enforcement. Institutional setup for other enabling regulation under EPA, PVPFR, NBA, etc.

• Affordable Seed pricing for providing quality seeds of improved varieties and hybrids to farmers due to adequate competition

Production & Quality systems

• Production capacities with state of the art Processing systems, Quality assurance, Seed technology machinery , Seed protectants, Seed storage developed across the country to cater to both domestic and global demand

• Seed testing laboratories & quality standards in line with Seed Act, OECD ,ISTA, etc.

Market & Farmers

• Increased demand for High quality seeds of improved varieties and hybrids due to superior performance led to increased SRR, hybrid & GM traits adoption

• Pan-India market & distribution channels.• Systems and processes including seed testing, SPS measures, & international trade

for servicing global markets well developed

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Key challenges

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Increasing labour and production and processing costs for seed companies

High entry barriers for access of advanced GM technology and traits for small and medium seed companies

Limited resources for evaluation and VCU testing in certain crops and states

Non-uniform Price regulation in Bt cotton leading to market uncertainty. Also legal disputes on this aspect.

Delayed rollout of OECD testing and international quality standard testing schemes leading to competitiveness of Indian Seed exports

Delays and lack of synergy between seed testing , SPS and regulatory processes for exports

Future growth prospects

Potential for increase in area under hybrids Corn, Rice, several vegetables etc.

Scope for increased yields and seed rate enhancement in Cotton through HDP agronomy

Significant potential to export quality hybrid seeds to other Asian countries and Africa

Ideal destination for quality hybrid seed production to the Americas and Europe

Increasing seed replacement rates opening up potential for quality seed of improved varieties in OPVs in cereal, pulses etc.

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Way Forward- Strategic Actions required

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Planning

• Strategic vision to unlock Indian seed industry potential with a coordination action between all Stakeholders to be developed

• Region-wise action plans for improvement in SRR and Varietal replacement of all crops to break the yield plateaus

International trade

• Working for harmonization of regulations and inclusion of seed industry issues as a part of the bilateral and multi-lateral agenda

• Simplified Import and export processes including single-window clearances including support/subsidies for Refrigerated logistics.

• Enabling policy for realizing the potential as a seed production destination for relevant countries with similar agro-climatic requirements

R&D

• Public private partnership models to further deliver the public sector R&D output to farmers

• Development of knowledge networks for sharing of information / Biotechnology resources across seed industry

• Simplified processes to be developed for utilization of genetic/bio-diversity without impact of business potential

Way forward: Key strategic actions

Evaluation & testing

• Strengthening VCU testing and aligning with PVPFR DUS testing• Public private partnerships , Accredited Private sector institutions for

development and increasing capacities of of Seed testing and evaluation • Capacity enhancement of Government testing network for OECD testing and for

preparedness for the New Seed Act

IPR & Technology

licensing

• Development of Standard setting organizations and Industry licensing Platforms for licensing new technologies by DAC in collaboration with industry

• Technology licensing to be regulated by the Govt. applying FRAND guidelines to get equitable to all the stakeholders i.e., technology provider, seed companies and farmers

Markets & Farmers

• Balancing market requirements of increased demand for hybrid seeds & technologies/traits with a rational price control regime

• Institutional support to farmers for soil health management, Adoption of improved Agronomies in PPP mode

• Enabling market driven value chain integration with farmer focus ultimately to make agriculture profitable to farmers

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Thank you