Emerging Trends, Challenges and Opportunities for the
Indian Seed Industry under New Policy Regime
R. K. Sinha, IAS (Rtd)
Executive Director
National Seed Association of India
National Seed Association of India• Seed industry has been represented in the past
by a number of associations, and hence lacked strength and cohesion
• 4 apex seed associations, namely INSIA, SAI, ASI and AICBA, have decided to merge and form a new entity, NSAI, to garner strength and clarity of vision and direction
• Other state level seed associations would be roped in as members
• It shall be the endeavour of NSAI to bring in its fold almost ALL the seed companies that fulfill the membership criteria
National Seed Association of India
• Amongst the public sector seed corporations/companies:
• National Seed Corp is already a member• Other State Seed Corporations/companies would also
be made members• NSAI will then be truly representative of the entire seed
industry• In order to respond effectively to local conditions, NSAI
will have branch offices in all the major seed producing states
• NSAI will present one unified voice for the entire seed industry in India before the policy makers and other stakeholders
Vision
A dynamic, innovative, internationally competitive, research based industry
producing high performance, high quality seeds and planting materials which
benefit farmers and significantly contribute to the sustainable growth of
Indian agriculture
Mission• Encourage investment in “State of the Art” R&D
to bring to the Indian farmer superior genetics and technologies, which are high performing and adapted to a wide range of agro-climatic zones
• Actively contribute to the industry policy development, with the GoI, to ensure that policies and regulations create an enabling environment including public acceptance so that the industry is globally competitive
Mission (contd.)
• Actively assist member companies in their efforts todevelop efficient seed production and distribution
systems to ensure high quality and reliable seed supply
create an enabling environment for partnering with the public sector where both parties can bring complementary and synergistic competencies for a competitive value proposition
strengthen information delivery systems to farmers to adopt new technology: increase seed replacement rates and implementation of best practices
Indian agriculture-concerns• Comparative advantage due varied agro climatic conditions• 170 mill ha of arable land, likely to reduce to 100 mill by 2020
(afforestation and environment concerns)• Rising population, estimated 1.4 bn by 2025• Per capita availability of arable land declining• Number of farmers would reduce• Inputs, particularly water, may either be in short supply or expensive• Low productivity• Yield levels plateauing• Heavy biotic (pests, pathogens, weeds) and abiotic (drought and
salinity) losses (30-40% )• Heavy post harvest losses (10-30%) • Nutritional deficiencies: Avg intake of vitamins, proteins and other
micro nutrients grossly inadequate
Indian Agriculture-concerns
• Challenge for ag scientists and technologists: increase productivity and at least double food production with declining land and water availability and limited farmers
• Newer production techniques and technologies suited to Indian agriculture
• Technologies in the areas of seed development that would ensure good yield even under constraints of water and land
• Matching of seed with fertiliser, water management and evolving pre-harvesting techniques under different soil conditions
• For food and nutritional security: newer ag technologies including biotechnology required
Indian agriculture, therefore, needs
• Enhanced productivity in drought prone / saline areas.
• Biotic stress tolerance• Reduced storage/transportation losses.• Healthier and nutritionally enhanced foods.• Optimise use of chemical pesticides:
Integrated Pest Management. • Hence GOI’s Doubling of food production
program lays emphasis on transgenics in agriculture (Prof Gandhi’s report)
mid 1980s - 1990s
Seed industry boomed as a result of several Govt. initiatives
Foreign direct investment allowed and encouraged
Imports of improved varieties and breeding lines liberalized
Trade regulations liberalized
Current statusThough nascent, yetprivate sector accounts for 70% turnover in seed domestically and is internationally recognised
Due to varied agroclimatic conditions and natural resources, R&D hubs are being created. Almost 1/3 companies have a global technology/ financial partner
Private seed companies are spending 10-12% of their turnover in R&D
R&D budget of medium sized companies is growing @ 20% p.a.
1960s – mid 1980s
Minimal private sector partici-pation
R&D in public domain
Restrictions on germplasm exchange, foreign ownership, etc.
Evolution of the Indian seed industry
Seed market composition
• Farm saved seeds: 75%• Commercial seeds: 25%• Of the commercial sector: private 76% and
public 24% ( by volume)• Of the private sector: organised is 57 %
(with research capabilities) and the small sector/largely unorganised is 43% ( no research)
Source: Rabobank report 2006
Contribution of Seed Industry to Indian Agriculture
Public bred hybrids
9%
Open pollinated
50%
Vegetable 11%
Private bred
hybrids30%
Market Segmentation
Seed industry• Total seed market: about Rs 5000 crores• Public sector: NSC, 13 State seed Corp, State Farm Corp of India
• High volume and low value seeds of improved varieties of cereals, pulses and oilseeds
• Private sector: highly fragmented– Size: 300 companies– Top ten 25% of total volume– 250 trading companies with turnover of Rs 5 crores– Low volume high value hybrids of cotton, corn, sunflower, millets and vegetables
• Key crops: – Foodgrains such as rice and wheat– Coarse cereals such as sorghum, pearl millet, ragi and maize– Pulses– Oilseeds– Cotton– Sugar cane– Fruits and vegetables
Source: Rabo 2006
Research priorities• Heavy dependence on rains: only 40% of the gross cropped area
under irrigation, seed companies thus focus on drought resistant varieties
• To produce more from less, need for appropriate technologies which can increase productivity and reduce the losses, apart from saving from the vagaries of nature
• About 70 mill ha of uncultivable land: seed development for dry land and saline land cultivation technologies
• Agricultural biotechnology and plant genomics for:• High yield and disease and insect resistant crops• Abiotic stresses: Drought and salt tolerance• Longer shelf life technologies to assist post harvest measures• Nutrient enrichment technologies• No till farming to conserve the environment and prevent top soil loss: HT
crops technologies• Global warming concerns: technologies and crops which would absorb the
extra CO2 from the atmosphere and also reduce carbon emissions
The private seed industry has come of age
• Strong scientific capabilities and breeding programs
• Comprehensive multi location testing including on-farm testing of pre-commercial hybrids as per national and international testing protocols
• Research trial data supplemented by on-farm test data and farmer feedback on performance and preference to facilitate decisions on commercialization of new hybrids
• High adoption of private bred hybrids by the farmers all across the country is a testimony to the robustness and successes of the development and testing protocol followed by the private industry
Contribution of Indian Seed Industry
• Achieved self sufficiency in foodgrains• Over 1 million acres of contract seed production• Direct employment for about 50 lakh persons in
rural areas• Rural income generation: about Rs 2000 cr• Hybrid and improved seeds produced on 10
lakh acres are sown on 10 cr acres resulting in incremental yield of about Rs 15000 cr per annum to the farmers
• India has the potential for growth of R&D and seed production global hubs like the IT sector
• High productivity agriculture requires optimum level of inputs
• Seed is the most important input as it determines maximum potential yield
• Improved high yielding genetics and high quality seed will increase productivity
• GM traits will reduce biotic (pest & disease attacks) and abiotic (DST) losses, and increase profitability
• Production of commercial seed generates considerable employment in rural areas
Industry’s potential to contribute to economic growth
Private enterprise qualities
• Quality germplasm collection and maintenance
• Technological superiority: reduced product life cycles has lead to the need for a product pipeline to suit disease profiles, climate pattern, and farmer choices
stability of parental lines for consistent performance
Trait fixation and advanced breeding techniques
Private enterprise qualities
• Established production systems built on loyalty and trust
• Distribution network to supply seeds within the short span of 25 days during the season
• Large inventory of 6-10 months: working capital management issues
• Advanced booking system• Product mix
Source: Rabobank 2006
Regulatory regime
• Strict regulatory regime• Seed Act, 1966• Seed Rules, 1968• Seed Control Order, 1983
• New Policy on Seed Development, 1988: first wave of liberal outlook- increased collaboration between domestic and foreign players
• Seed Policy, 2002: direction for reforms- it recognises the importance of technology as well as tries to protect the farmers
• Seed Bill, 2004, modelled on these lines• Compulsory registration on the basis of VCU• Farmers rights• Compensation for non performance as per CPA• Transgenic seeds
• Stdg Committee of Parliament has examined and given its report
Issues & Concerns
• Regulated industry, with variable implementation • Restricted movement of germplasm• Ineffective Intellectual Property Rights protection• Lack of rural infrastructure including irrigation, electricity,
roads and post harvest infrastructure• High risk, unpredictable business with no margins in
some sectors• Policies being followed in some State Governments
rather irksome for the industry
Challenges before the seed industry
• To provide quality seeds, either by itself or through an effective public private partnership, to farmers so that they can improve their quality of life,
• To discharge effectively the role of a reliable partner for sustainable growth in Indian agriculture
• To intensify R&D for future generation seeds• To strive to continuously enhance farmer education to
enable them to take informed decisions• To substantially increase the seed replacement rate in
the overall interests of farmers• To create a diverse, competitive, responsive and a
mature seed market for the benefit of farmers
To meet the challenges, the industry seeks
• GOI Vision for seed industry and consistency in application of same
• Freedom to operate in an enabling environment
• Responsibility and self regulation by industry
• Profitability (reasonable return on investment)
• Sustainability
The seed industry seeks
• An enabling legislative and policy environment• A regulatory framework that is flexible,
responsive, transparent and predictable• Unshackling of bureaucratic controls, in
particular, search seizure actions by Seed Inspectors under the Seed Control Order
• Greater reliance on self regulation• Greater role in the decision making process on
the basis of mutual trust, openness and dialogue
The seed industry seeks… contd
• An effective public-private partnership• Free flow of germplasm between public and
private sector, specially from the public sector• Smoother import of germplasm and planting
materials for R&D and contract multiplication• Greater consumer education, consumer
protection, and free flow of science based information to farmers
• A level playing field
To sum up
• The seed industry has come together to form the National Seed Association of India
• It will power the growth of sustainable agriculture• It is in the process of ushering in the Second Green
(Gene) Revolution through technological innovations• The seed industry is poised to be the hub of seed
production for the developing countries- production for export
• It seeks policy support and an enabling environment- FTO
• Emphasis on HYV and hybrids with an increased Seed Replacement rate
To sum up
• It seeks the state’s support for the establishment of seed valleys in different parts of the country- something in the nature of an SEZ
• Contract farming and the retail boom: changing the ways of farming
• Huge opportunities emerging• Pepsico: pioneered contract farming for tomatoes in Punjab• Reliance Retail• ITC- e-chaupal• Subhiksha• Aditya Birla Group• Bharti with Wal Mart• Biyani Goup
Borlaug speak• Dr Norman Borlaug, 93, World Food Prize Founder and 1970 Nobel
Peace Laureate was awarded the Congressional Gold Medal, highest US civilian honour, on July 17,07
• His article on ‘Global biotechnology: a tool for agricultural sustainability and survival’ appeared on July 18 in the WSJ
• He says:• Persistent poverty, environmental degradation, changing global climatic
patterns, use of crops to produce biofuels, all pose new challenges and opportunities
• Ag science including biotechnology critical to meeting the demand for food, feed and fibre
• Plant breeders would be challenged to produce seeds that are equipped to better handle salinity, drought, diseases and insects and increase the yield
• Tools of biotechnology such as molecular and marker assisted selections, enable scientists to achieve the goals in an organised and accelerated manner
• Advent of Gene revolution
53rd NDC
• Prime Minister laid emphasis on – reversing the prolonged slow down for inclusive
growth– raising the quality of inputs such as seeds, fertilizers
and pesticides and also improving the access to credit – technology fatigue– substantial yield gaps and the urgent need to focus
on such gap reduction– Amongst other policy interventions, he laid emphasis
on improving quality seed supply.
53rd NDC• Agriculture Minister said
– urgent need for effective development and transfer of technology covering all aspects such as seeds, nutrients, mechanization and water resource management, besides strengthening institutional support for credit, extension, marketing and value addition
– private-public sector partnership model must be explored on a wider range.
• Finance Minister urged NDC to consider issues relating to– both production and productivity, – continuous cultivation of same genetic material responsible for
deceleration in production and productivity growth– lack of technology breakthrough in the development of agro-climate
specific seeds, particularly for rainfed areas– appealed for focus on seeds, amongst other areas.
53rd NDC
• Chief Minister, Andhra Pradesh said that investments have to be made by Government in R&D for technological and for better seeds development in crucial areas. He goes on to say that States have to invest extensively in the development of appropriate technology and quality seeds essentially suitable for dry land agriculture.
• Deputy Chairman, Planning Commission stressed the need to– ensure that critical inputs of reliable quality, including specially,
seeds, fertilizers, credit etc. are available at the right time– seeds are critical and hence States need to prepare their seed
plans in advance.
53rd NDC
• Resolution passed at the 53rd N.D.C. meeting, amongst the actions to be taken by the State Governments, at para 4, states as follows:-– “Accord the highest priority to seed production so that adequate
supply of quality seeds of relevant major crops and fodder is available at reasonable prices and at the right time. This is necessary to improve seed replacement rates, which help reduce yield gaps. There should be close liaison between State Governments and State Agricultural Universities or ICAR institutions for ensuring production of seeds of varieties suitable for each agro climatic region. Public private partnership between SAUs, State Departments concerned and private sector for varietal development can be considered”
THANK YOU
• National Seeds Policy 2002
3.2.3: Registration after VCU for 3 seasons
3.2.8: Provisional registration on info filed by applicant relating to trials over 1 season
• The Seeds Bill 2004: Sec 15 stipulates that provisional registration can be given on the basis of information given by producer on the results of MLT
• Multilocation trials conducted over 2 seasons ( takes two years ) Ok when the technology was evaluated first time
• With experience would suggest that recommendation be done after one year of trial (National Seeds Policy, 2002, and The Seeds Act 2004)
Crop Biotechnology-Challenges and Prospects
Presentation made byR K Sinha
Executive Director, All India Crop Biotechnology Association
April 13, 2005National Agri Sciences Centre
Scheme of presentation
• Divided into two parts:
(a) Challenges: General features of Indian Agriculture, and the need for quality seeds for food and nutritional security
(b) Prospects
Challenges
Indian Agriculture-concerns
• Availability: around 142 mill ha of arable land out of a total surface area of 320 mill ha
• 120 mill ha affected by salinity and alkalinity• Population on the rise• Dangerously falling water tables and acute
variation in availability of water across regions• Avg intake of vitamins, proteins and other micro
nutrients grossly inadequate• 30-40% losses of crop productivity due pests,
weeds and pathogens• 10-30% post harvest losses
Indian Agriculture-concerns
• Per capita availability of arable land declining• Low productivity• Yield levels plateauing• Heavy biotic and abiotic losses• Heavy post harvest losses• Nutritional deficiencies• For food and nutritional security: GM technology
with biosafety a must
Indian agriculture, therefore, needs
• Enhanced productivity in drought prone / saline areas.
• Biotic stress tolerance• Reduced storage/transportation losses.• Healthier and nutritionally enhanced foods.• Optimise use of chemical pesticides:
Integrated Pest Management. • Hence GOI’s Doubling of food production
program lays emphasis on transgenics in agriculture
Objectives
• Human beings at centre of sustainable development
• Strike a balance between economic, social and environmental needs for sustained development
• A credible, predictable, transparent policy and regulatory framework which are at once flexible and evolving
• Built in provisions for monitoring, review and revision
Objectives of AICBA’s suggestions
• Currently to make available to the farmer a wide choice of high performing cotton hybrids with Bt gene in them so that he does not have to use (a) Bt hybrids unsuitable to his area, and (b) illegal Bt hybrids
• Long term: (a) improve the economic well being of Indian farmers, (b) ensure food and nutritional security, (c) ensure an internationally competitive Indian agriculture, without in any way sacrificing the safety of human beings, animals and the environment
GM crops- some statistics
• 1996: farmers harvest first significant acreage( 4 mill acres) of crops enhanced with biotech traits
• 2004: More than 200 mill acres in 17 countries by 8.25 mill farmers valued at approx $ 44bn
• Since 1996, nearly 1 bn acres with plant biotech, accounting for 47 fold increase between 1996-2004
• 2005: farmers around the world will plant and harvest increased acres of crops enhanced with biotech traits for the 10th consecutive year
GM crops…
• Regulatory authorities around the world have found biotech crops pose no more risk than crops thru conventional methods
• Food and feed from biotech crops have solid 10-year history of safe use
• More than 60 countries into plant biotech R&D on more than 50 plant species
GM crops…
• 1st decade (96-05): control insects and weeds
• 2nd decade (05-15):
food and nutrition security (increased productivity gains and enrichment with more tasty and nutrients)
ability to withstand abiotic stresses (drought, salinity, water logging etc)
Prospects
Issues regarding GM
• Safety Testing methods
• Unintended effects
• Gene transfer
• Detection, labelling and traceability
• Consumer acceptance
• Regulatory framework
Safety assessment
• Principle of substantial equivalence to a comparator food from conventional crops with long history of safe use
• Guidelines becoming standardised and detailed
• FAO/WHO and the Codex Alimentarius have outlined detailed approach to risk assessment for toxicity and allergenicity
Safety assessment…
• These guidelines should be adequate to determine if GM foods are as safe as their conventional counterparts
• Very little is known about the potential long term effects of ANY food
• GM foods have 10 years of safe use• No reliable documentation of any food safety
issues attributed to GM technology• Gives support to the efficacy of the Regulatory
process
Unintended effects
• Uncertainties in safety assessment of GM crops associated with unintended changes in plant genome no greater than similar uncertainties for conventionally bred crops
Risks of gene transfer across species
• Common in nature resulting in evolution
• No inherent risk in transfer of DNA between organisms as DNA is not toxic
• Transformation strategy and the recombinant DNA with care
• Agrobacterium mediated gene delivery safest
Precautionary approach
• Key elements: credible threats, scientific certainty, cost-effective measures and prevention
• Credibility must be based on currently acceptable scientific knowledge and should be obvious to the third party
• Care to be taken that precautionary approach is not a stumbling block to entry of new GM technologies
• Risk benefit analysis
Policy priorities
• For the policy to work, need to evolve broad based National Priorities in terms of crops and traits
• Firm commitment to agbiotech in national interest
• Streamline regulatory regime: released event and new event
• Enforce strict adherence to law • Monitor implementation
Future Direction
• GM technology Must enter the food and feed sector in a
big wayMust prevent losses due to pathogens,
weeds and pestsMust be resistant to salinity and drought
conditionsMust prevent post harvest losses
Future Direction…
Must increase nutritional contentMust increase productivity
• GM technology has the potential to achieve all that
• It needs encouragement and support
• Consumer acceptance will increase as exposure to GM technology strengthens
Future Direction…
• Need for a sound policy document on GMOsin place
• Streamlining of the regulatory process and procedure
• Evolve an IPR regime for products and hybrids/plant varieties as per international standards
• Effectively curb trade in illegal GM seeds• Communicate strongly and convincingly with all
stakeholders• Private-public partnership
Objectives
• Human beings at centre of sustainable development• Strike a balance between economic, social and
environmental needs for sustained development• A credible, predictable, transparent policy and regulatory
framework which are at once flexible and evolving• Built in provisions for monitoring, review and revision • Long term: (a) improve the economic well being of Indian
farmers, (b) ensure food and nutritional security, (c) ensure an internationally competitive Indian agriculture, without in any way sacrificing the safety of human beings, animals and the environment
