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

Mint

time25-05-2025

  • Business
  • Mint

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

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. Read this | India to revamp rice cultivation technique to save water, cut labour costs, reduce methane emissions 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." Read this | Can soil-less farming revive a revered Kashmiri rice variety on the verge of extinction? 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. Also read | Soon, farmers will be able to assess soil health in seconds with a handheld device '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.

High court reserves order on Punjab's ban on hybrid paddy seeds
High court reserves order on Punjab's ban on hybrid paddy seeds

Time of India

time20-05-2025

  • General
  • Time of India

High court reserves order on Punjab's ban on hybrid paddy seeds

Bathinda: With less than two weeks left to transplanting paddy in Punjab, a bench of the Punjab and Haryana high court on Monday reserved its order over a petition challenging a ban on hybrid seeds of paddy. The arguments had been closed, but the court did not fix a date for pronouncing the order. The Federation of Seed Industry of India (FSII) challenged Punjab govt's decision to ban hybrid paddy seeds in 2019. This decision was later amended, but the Punjab agriculture department again banned the cultivation of Pusa-44 and hybrid varieties on April 7 this year, aiming to safeguard groundwater from depletion and tackle pollution. Another petition was filed in the court over the matter recently, and it was clubbed with the 2019 petition. Rice millers were against the cultivation of hybrid varieties, claiming they produced more broken rice. Certain farmers and FSII were of the view that hybrid varieties use less water and produce more paddy. During the last hearing on May 13, Punjab Rice Millers' Association president Tarsem Saini was impleaded as a respondent in the petition. FSII chairman Ajai Rana said as the court had reserved its verdict on the Punjab govt's decision to ban hybrid rice, the seed industry was hopeful of a balanced outcome that recognised the role of science and innovation in agriculture. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 나이들어 노안+백내장 절대 방치 하지 마세요! 부산백내장노안 전문안과 더 알아보기 Undo "Hybrid rice is a proven solution to meet the dual challenge of increasing productivity and conserving natural resources. It offers 5–6 quintals more yield per acre, short-duration varieties mature faster, and supports direct seeding of rice method, which reduces water use by 30% and lowers emissions. These hybrids are also bred for better tolerance to abiotic stress and resistance to major pests, helping farmers manage risks more effectively," he said. All hybrids in the market have undergone rigorous three-year trials under ICAR's All India Coordinated Rice Improvement Project and comply with national standards, including the 67% out-turn ratio mandated by FCI, he added. Saini said the quality of rice from hybrid varieties was below the standard, with the broken ratio being much higher. He said they wanted hybrid varieties of rice to be milled under the supervision of a state-level monitoring committee. The federation also approached the authorities in Punjab and Aam Aadmi Party supremo Arvind Kejriwal, urging them to reconsider their decision to ban the cultivation of hybrid rice in the state. Paddy, including basmati, is transplanted on nearly 32 lakh hectares in Punjab, and there are varied figures for hybrid varieties, with Punjab Agriculture University pegging hybrid varieties at only 5-6% of the total area under paddy. Millers claimed they were not getting the required 67% head rice from hybrid varieties, as more broken rice was produced from these varieties. Out of 67kg rice to be delivered to FCI after custom milling, 25% broken is allowed, but in these varieties, it was turning out at more than 35%. After milling (de-husking and polishing, turning brown rice into white rice), there was also the issue of chalkiness due to incomplete starch and protein accumulation. The federation stated that on an average, hybrid rice delivered 15%-20% higher yield over other varieties, translating to Rs 8,000 - 10,000/acre incremental income opportunity for Punjab rice farmers. Due to the shorter crop cycle of 120-125 days (seed to grain), hybrid rice saves 20-25% groundwater and reduces greenhouse gas emissions.

Punjab hybrid rice ban to cost farmers up to ₹10k per acre: FSII
Punjab hybrid rice ban to cost farmers up to ₹10k per acre: FSII

Hindustan Times

time29-04-2025

  • Business
  • Hindustan Times

Punjab hybrid rice ban to cost farmers up to ₹10k per acre: FSII

The Federation of Seed Industry of India (FSII) on Tuesday sought Centre's intervention in the Punjab government's ban on hybrid paddy seeds, warning of significant income losses for farmers as the kharif sowing season approaches. FSII chairman Ajai Rana said the April 7 ban could reduce farmers income by ₹8,000-10,000 per acre. The Punjab government prohibited hybrid rice cultivation citing groundwater depletion concerns and alleged poor milling recovery. However, FSII disputes these claims, stating hybrid varieties offer higher yields, conserve water and reduce stubble burning. 'FSII has filed side-by-side milling results from Punjab Agriculture University, ICAR multi-location trials and the IRRI Grain Quality Lab: hybrids posted 70–72.5 per cent total milling recovery and more than 60 per cent head-rice, comfortably above FCI norms,' Rana said. The industry body has approached both Punjab authorities and the Union agriculture ministry while also filing a petition in the Punjab and Haryana high court. Justice Kuldeep Tiwari has asked the state government to justify the legal basis for the ban. Rana argued that under the Seed Act, 1966, and provisions of Seed Control Order, 1983, states cannot prohibit centrally approved seeds. 'State governments can regulate quality but cannot prohibit the sale of centrally approved seeds,' he said. The ban has created uncertainty for farmers who rely on hybrid rice varieties, particularly in the Malwa region where saline soils benefit from these adaptable seeds. Seed dealers who have already invested in hybrid rice purchases also face significant financial losses.

Punjab's ban on hybrid paddy seeds draws flak from seed industry
Punjab's ban on hybrid paddy seeds draws flak from seed industry

Business Standard

time29-04-2025

  • Business
  • Business Standard

Punjab's ban on hybrid paddy seeds draws flak from seed industry

The Federation of Seed Industry of India (FSII) has sought the Central government's intervention to lift the ban imposed on the use of hybrid paddy seeds by the Punjab government for the upcoming Kharif sowing season, claiming that the move could dent farmers' income by as much as ₹8000- ₹10,000 per acre. 'Hybrid rice consistently delivers five to six quintals higher productivity per acre, with better water efficiency. By blocking these seeds, the state is effectively writing off roughly one-month income of a small farmer's earnings,' said Ajai Rana, Chairman of FSII and also that of CII North Region Agriculture Committee. 'The ban's timing is particularly concerning, as the Kharif 2025 sowing season approaches. Farmers and seed dealers are left in a state of uncertainty, potentially leading to significant economic losses,' Rana, also a noted seeds expert, said. FSII has also filed a petition in the Punjab and Haryana High Court, challenging the state's decision. The hearing is scheduled for later this month. The Punjab government, in an order issued April 7, banned the cultivation of hybrid rice varieties for the upcoming paddy transplantation season. The state argued that some hybrid paddy varieties were banned on concerns over groundwater depletion and allegations of poor milling recovery. However, industry experts differ. They said that hybrid rice varieties are more water-efficient and milling recovery is at par with varieties approved by Punjab state. Rice farmers across states have reported higher yield benefits of hybrid rice and these higher income claims are based on years of scientific trials and farmers field data, said Rana. 'Hybrid rice varieties are scientifically validated and government-notified. They offer higher yields, conserve water, and reduce stubble burning,' said Rana. 'By banning these varieties, farmers are being denied the opportunity to increase their income and contribute to sustainable agriculture,' he said. FSII has filed side-by-side milling results from Punjab Agriculture University, ICAR multi-location trials and the IRRI Grain Quality Lab. Hybrids have posted 70-72.5 per cent total milling recovery and more than 60 per cent head-rice, comfortably above Food Corporation of India norms.

Punjab hybrid rice ban to cost farmers up to Rs 10,000 per acre, says industry body FSII
Punjab hybrid rice ban to cost farmers up to Rs 10,000 per acre, says industry body FSII

Time of India

time29-04-2025

  • Business
  • Time of India

Punjab hybrid rice ban to cost farmers up to Rs 10,000 per acre, says industry body FSII

The Federation of Seed Industry of India (FSII) on Tuesday sought Centre's intervention in the Punjab government's ban on hybrid paddy seeds , warning of significant income losses for farmers as the kharif sowing season approaches. FSII Chairman Ajai Rana said the April 7 ban could reduce farmer incomes by Rs 8,000-10,000 per acre. #Pahalgam Terrorist Attack The groundwork before India mounts a strike at Pakistan India considers closing airspace to Pakistani carriers amid rising tensions Cold Start: India's answer to Pakistan's nuclear threats "By blocking these seeds, the state is effectively writing off roughly one month income of a small farmer's earnings," Rana said in a statement. The Punjab government prohibited hybrid rice cultivation citing groundwater depletion concerns and alleged poor milling recovery. However, FSII disputes these claims, stating hybrid varieties offer higher yields, conserve water, and reduce stubble burning. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3 Reasons to Plug This Into Your Home Today elecTrick - Save upto 80% on Power Bill Learn More "FSII has filed side-by-side milling results from Punjab Agriculture University, ICAR multi-location trials and the IRRI Grain Quality Lab: hybrids posted 70-72.5 per cent total milling recovery and more than 60 per cent head-rice, comfortably above FCI norms," Rana said. The industry body has approached both Punjab authorities and the Union Agriculture Ministry while also filing a petition in the Punjab and Haryana High Court. Live Events Justice Kuldeep Tiwari has asked the state government to justify the legal basis for the ban. Rana argued that under the Seed Act, 1966, and provisions of Seed Control Order, 1983, states cannot prohibit centrally approved seeds. "State governments can regulate quality but cannot prohibit the sale of centrally approved seeds," he said. The ban has created uncertainty for farmers who rely on hybrid rice varieties, particularly in the Malwa region where saline soils benefit from these adaptable seeds. Seed dealers who have already invested in hybrid rice purchases also face significant financial losses.

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