Private sector seeds now dominate India’s market, public companies give attention to staples

In 2023–24, personal companies accounted for 71% of the nation’s seed manufacturing, up from 40% in 2009-10, based on knowledge from the Indian Council of Agricultural Research (ICAR). In distinction, the share of state-run seed producers fell from 60% to only 29% over the identical interval.

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This shift has implications for Indian agriculture, which depends on each public establishments like ICAR and market-driven innovation to enhance yields, guarantee meals safety, and assist smallholder farmers. The divergence additionally displays the differing priorities of private and non-private gamers: whereas public companies give attention to low-value, high-volume crops similar to cereals, pulses, and oilseeds, personal corporations have cornered the market in high-margin segments with higher industrial potential.

“Public sector seed corporations in India are shedding market share as a result of they’re outpaced by personal companies, particularly in producing high-value seeds for horticulture crops and cotton the place seed substitute is excessive,” mentioned a senior govt at a state-run seed firm. “In staples like cereals and pulses, seed substitute is low, round 30-40%, as farmers typically protect their very own seeds. Also, the worth (of such seeds) is low.”

Public establishments like ICAR have traditionally targeted on staple crops similar to cereals, pulses, and oilseeds–vital for meals security–while personal companies have focused high-margin, hybrid-based programs for crops like cotton and horticulture. As personal corporations develop their footprint, they’re additionally taking part in a rising function in innovation, typically tailoring merchandise to market calls for by field-level insights, based on business consultants.

“Private sector companies perceive the farmer’s wants and work in coordination with them, making certain well timed availability of seeds,” mentioned Vaibhav Ravi Kashikar, govt director at Ankur Seeds Pvt. Ltd. “They even have strong high quality management programs to make sure higher seed high quality.”

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According to the Federation of Seed Industry of India (FSII), round 800 personal seed corporations function in India, together with multinationals. Nearly 100 of them run in-house R&D programmes. Many have additionally licensed seed varieties developed by ICAR for key crops similar to wheat, rice, maize, and mustard, highlighting a level of public-private collaboration.

Even so, farmer teams and civil society organizations have voiced issues about private-sector dominance, notably round affordability, entry, and farmer dependence.

Ram Kaundinya, advisor to FSII, dismisses such issues. “Successful economies around the globe are pushed by private-sector seed markets. There’s a false impression that personal companies exploit farmers, however no firm can afford to use its personal clients and anticipate to outlive,” he mentioned. “As per Ministry of Agriculture knowledge, seeds account for less than 5% of a farmer’s complete manufacturing value, together with for crops like cotton. Concerns about seed pricing are largely misplaced.”

Kaundinya additionally identified that India’s seed market is segmented by value and crop, with corporations concentrating on completely different farmer profiles. “Seeds can’t be priced past attain, in any other case, there’s no market,” he mentioned.

Farmer sentiment displays this range. 

Ramneek Singh, a grower from Abohar in Punjab, mentioned, “For meals grains like paddy and wheat, I often go together with authorities seeds. But for Bt cotton or horticulture, I select personal corporations. It is dependent upon the crop and what’s out there in my space.”

The Indian seed industry is valued at $6.3 billion ( ₹54,158 crore) and anticipated to develop to $12.7 billion by 2028 and $20 billion by 2040, based on FSII. With rising demand for meals and rising give attention to local weather resilience, each private and non-private gamers are anticipated to play a task, however with very completely different methods.

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“The personal sector is working intently with farmers, continuously upgrading R&D and creating varieties tailor-made to altering climate patterns,” mentioned Sameer Mulay, managing director at Ajeet Seeds Pvt. Ltd. “Gene-edited crops might be the subsequent huge shift.”

Industry our bodies, in the meantime, have been pushing for coverage assist to assist the sector develop past home borders. The Confederation of Indian Industry (CII), in a current proposal, urged the federal government to introduce a Production-Linked Incentive (PLI) scheme for the seed business, together with a Research-Linked Incentive scheme.

India at present accounts for simply 1% of the worldwide seed export market. With the appropriate insurance policies, CII estimates the nation may seize as much as 10% of the $14-billion international seed commerce, value round ₹10,000 crore, by 2028.