The Indian Seed Industry was valued at USD 2,078.3 million in 2017 and is expected to register a CAGR of 6.4% during the forecast period (2018-2023). Due to a stagnant growth observed in arable land and a constantly increasing population, the per capita arable land has been declining. This factor, along with poor crop productivity, is likely to lead to pressure on food supply in the country.
In 2017, Row Crops dominated the Indian seed sector, with a share of around 80%. Cotton accounted for the largest share in the row crop seed sector in the country. Vegetable seeds are estimated to witness a higher CAGR of 6.8% during the forecast period. Increasing seed replacement rate in the country, as well as the adoption of hybrid and biotech crops, are the major drivers for the market. However, rising concerns over GM seeds, long GM approval timelines, and excessive government regulations are the likely market constraints.
The Fastest Market Growing Segment by Row Crop Type – Cotton
Cotton holds the maximum share of revenue when the market is segmented by row crop. The large-scale adoption of Bt cotton seed in India has been the driving force behind this large share.
Vegetables and maize are also crops with high hybridization and seed replacement rates, and hence have high shares among all the crops. Bt cotton remains the only transgenic crop that is approved and that is being cultivated in the country. In a period of 14 years, the Bt cotton cultivating area has increased accounting for about 95% of the total cotton acreage, and has led to a surge in the Indian cotton production. Although there have been incidences of resistance in Bt cotton to pink bollworm in the recent years, the adoption rate of Bt cotton is expected to sustain over the forecast period on the back of expected approvals with regard to herbicide tolerance traits.
Increasing Seed Replacement Rates in Critical Crops
The growth of the seed industry in any country is dependent on how often farmers are replacing their seeds. Seed replacement rate refers to the percentage of seeds replaced every year by farmers. The seed replacement rates for almost all the crops in India have considerably improved in the recent times. Over a ten-year period, from 2002 to 2012, the seed replacement rates of key cereal crops have more than doubled, with that of rice experiencing a 111% jump, wheat increasing by 154%, and maize 238%. Increasing seed replacement rates are a result of increased farmer extension and marketing activities of seed companies, as well as the general perception among farmers about yield improvements that can be achieved through replacement of seeds every year.
Unpredictable Weather Patterns and Dependence on Monsoon
Indian agriculture is highly dependent on the weather and monsoon. India stands first among the rain-fed agricultural countries in terms of production and value of production. More than 60% of the farms in the country are dependent on the rain; with the volatility of the rainfall and weather impacting production. The adverse climatic conditions also result in increased incidences of pests and diseases, contributing to crop losses. Thus, monsoon has a direct impact on the farmers’ income, affecting their spending capacity for the next cropping cycle. The climatic changes and irregular monsoon in the past few years have impacted the seed industry adversely.
Key Developments of India Seed Sector Analysis
- Aug 2018: United Phosphorous Ltd (UPL) is planning for stake purchase of Telangana-based Kaveri seeds Co. Ltd.
- Aug 2018: The panel of Competition Commission of India (CCI) is going to decide on the BASF acquisition of Bayer’s vegetable seed business in India.
- Major Players: Rallis India Ltd, Advanta Seeds (UPL), Nuziveedu Seeds Ltd, Kaveri Seeds Ltd, National Seeds Corporation Ltd., PHI Seeds Private Ltd (DuPont Pioneer), Monsanto India Ltd, Mahyco, Rasi Seeds, JK Agri Genetics Ltd, VNR Seeds, Syngenta India Ltd, list not exhaustive.
India Seed Sector Analysis
(2014 – 2023)
Market Size in 2017
USD 2,078.3 million
Market Size in 2023
USD 3,009.3 million
Rallis India Ltd, Advanta Seeds (UPL), Nuziveedu Seeds Ltd, Kaveri Seeds Ltd, National Seeds Corporation Ltd., PHI Seeds Private Ltd (DuPont Pioneer), Monsanto India Ltd, Mahyco , Rasi Seeds, JK Agri Genetics Ltd, VNR Seeds, Syngenta India Ltd, list not exhaustive.
India Seed Sector Analysis offers the latest trends, growth prospects, industry competitiveness, major players, regional market share and forecast to 2023.
Reasons to Purchase the Report
- To have an understanding of the fastest growing regions in the India seed sector and growth trends during the forecast period
- The report outlines drives, restraints, and trends that are currently effecting the market
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The report covers in-detail insights about the competitors’ overview and company share analysis
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Market Definition
1.2 Key Findings of the Study
2. Research Scope and Methodology
2.1 Study Deliverables
2.2 Market Segmentation
2.3 Study Assumptions
2.4 Research Methodology
2.5 Research Phases
3. Seed Sector Overview
4. Policies and Regulatory environment
5. Market Dynamics
5.1.1 Increasing Seed Replacement Rates in Critical Crops
5.1.2 Increasing Adoption of Hybrid Seeds
5.2.1 Unpredictable weather patterns and Dependence on Monsoon
5.2.2 Regulatory Constraints Related to the Approval of Transgenic Seeds
5.3 Porter's Five Forces Analysis
5.3.1 Bargaining Power of Suppliers
5.3.2 Bargaining Power of Buyers
5.3.3 Threat of New Entrants
5.3.4 Threat of Substitute Products and Services
5.3.5 Degree of Competition
6. Key crops under cultivation (Overview, Area harvested and Production)
6.8 Pigeon Pea
7. Market Segmentation
7.1 By Crop type
7.1.1 Row Crops
126.96.36.199 Other Row Crops
188.8.131.52 Other Vegetables
8. Competitive Landscape
9. Company Profiles
9.1 Rallis India Ltd.
9.2 Advanta Seeds (UPL)
9.3 Nuziveedu Seeds Ltd.
9.4 Kaveri Seeds Ltd.
9.5 National Seeds Corporation Ltd.
9.6 PHI Seeds Pvt. Ltd. (Dupont Pioneer)
9.7 Monsanto India Ltd.
9.9 Rasi Seeds Pvt. Ltd.
9.10 JK Agri Genetics Ltd.
9.11 VNR Seeds
9.12 Syngenta India Ltd.