Market Overview

The Indian seed market was valued at USD 2.14 billion in 2018, and it is projected to register a CAGR of 6.4% during the forecast period (2019-2024).

• There has been an increase in hybrid seed penetration in multiple crops, in order to address the rising food demand-supply mismatch in the country. Due to a stagnant growth observed in the arable land and a constantly increasing population, the per capita arable land has been declining. These factors, along with poor crop productivity, are likely to lead to pressure on food supply in the country.
• In India, hybrid seed penetration is high in cotton (>90%), corn (>60%), limited cereals, such as sorghum and pearl millet, and oilseeds, such as sunflower (hybridization >80%). However, penetration is still very low in major cereals, such as paddy and wheat (<5%). Cotton hybridization is almost reaching saturation, as Bt cotton is sown over 90% of the cotton-producing area in the country. Hybridizations in corn, paddy, and vegetables are estimated to drive the sector’s growth during the forecast period.
• The patenting process in India is not very vigorous, enabling other companies to replicate better performing seeds in the marketplace. In addition, after the discovery of a successful hybrid, seed multiplication needs many rounds of sowing. Therefore, the availability of a large land bank or access to a large dedicated network of seed growers acts as a major entry barrier for smaller seed companies, as the lack of such a network may delay the process of market expansion for them.