Private sector seeds now dominate India's market, public firms focus on staples

Mint

25-05-2025

New Delhi: The private sector has overtaken the public sector in India's seed production, driven by its dominance in high-value crops such as cotton and horticulture.
In 2023–24, private firms accounted for 71% of the country's seed production, up from 40% in 2009-10, according to data from the Indian Council of Agricultural Research (ICAR). In contrast, the share of state-run seed producers fell from 60% to just 29% over the same period.
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This shift has implications for Indian agriculture, which relies on both public institutions like ICAR and market-driven innovation to improve yields, ensure food security, and support smallholder farmers. The divergence also reflects the differing priorities of public and private players: while public firms focus on low-value, high-volume crops such as cereals, pulses, and oilseeds, private companies have cornered the market in high-margin segments with greater commercial potential.
'Public sector seed companies in India are losing market share because they are outpaced by private firms, especially in producing high-value seeds for horticulture crops and cotton where seed replacement is high," said a senior executive at a state-run seed company. 'In staples like cereals and pulses, seed replacement is low, around 30-40%, as farmers often preserve their own seeds. Also, the value (of such seeds) is low."
Public institutions like ICAR have historically focused on staple crops such as cereals, pulses, and oilseeds--vital for food security--while private firms have targeted high-margin, hybrid-based systems for crops like cotton and horticulture. As private companies expand their footprint, they are also playing a growing role in innovation, often tailoring products to market demands through field-level insights, according to industry experts.
'Private sector firms understand the farmer's needs and work in coordination with them, ensuring timely availability of seeds," said Vaibhav Ravi Kashikar, executive director at Ankur Seeds Pvt. Ltd. 'They also have robust quality control systems to ensure better seed quality."
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According to the Federation of Seed Industry of India (FSII), around 800 private seed companies operate in India, including multinationals. Nearly 100 of them run in-house R&D programmes. Many have also licensed seed varieties developed by ICAR for key crops such as wheat, rice, maize, and mustard, highlighting a degree of public-private collaboration.
Even so, farmer groups and civil society organizations have voiced concerns about private-sector dominance, particularly around affordability, access, and farmer dependence.
Ram Kaundinya, advisor to FSII, dismisses such concerns. 'Successful economies around the world are driven by private-sector seed markets. There's a misconception that private firms exploit farmers, but no company can afford to exploit its own customers and expect to survive," he said. 'As per Ministry of Agriculture data, seeds account for only 5% of a farmer's total production cost, including for crops like cotton. Concerns about seed pricing are largely misplaced."
Kaundinya also pointed out that India's seed market is segmented by price and crop, with companies targeting different farmer profiles. 'Seeds can't be priced beyond reach, otherwise, there's no market," he said.
Farmer sentiment reflects this diversity.
Ramneek Singh, a grower from Abohar in Punjab, said, 'For food grains like paddy and wheat, I usually go with government seeds. But for Bt cotton or horticulture, I choose private companies. It depends on the crop and what's available in my area."
The Indian seed industry is valued at $6.3 billion ( ₹54,158 crore) and expected to grow to $12.7 billion by 2028 and $20 billion by 2040, according to FSII. With rising demand for food and growing focus on climate resilience, both public and private players are expected to play a role, but with very different strategies.
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'The private sector is working closely with farmers, constantly upgrading R&D and developing varieties tailored to changing weather patterns," said Sameer Mulay, managing director at Ajeet Seeds Pvt. Ltd. 'Gene-edited crops could be the next big shift."
Industry bodies, meanwhile, have been pushing for policy support to help the sector expand beyond domestic borders. The Confederation of Indian Industry (CII), in a recent proposal, urged the government to introduce a Production-Linked Incentive (PLI) scheme for the seed industry, along with a Research-Linked Incentive scheme.
India currently accounts for just 1% of the global seed export market. With the right policies, CII estimates the country could capture up to 10% of the $14-billion global seed trade, worth around ₹10,000 crore, by 2028.