India Seed Sector Analysis - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Indian seed market is projected to grow at a CAGR of 6.8% during the forecast period (2020-2025).

• 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 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.

Scope of the Report

The report defines the Indian seed sector, in terms of end-users. The scope of the study encompasses the analysis of major crops  along with competitive analysis, which will include the profiles of major players (company overview, product portfolio, key developments, such as merger and acquisition, product innovation, and R&D) operating in the market. For the purpose of this report, the seeds used for sowing have been considered for market estimations and forecasts. The market does not include seeds used for human or animal consumption.

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Key Market Trends

Increasing Adoption of Hybrid Seeds

The adoption of hybrid seeds has significantly increased in the country during and after the Green Revolution, due to the increasing pressure for high crop production for food security. The hybrid seed sector witnessed a growth of 15-20% per year, over the past decade. The major boost has come from the increased adoption of Bt cotton hybrids, single-cross corn hybrids, and hybrid vegetables. This increased demand for hybrid seeds has boosted the market for commercial seeds. The aggressive promotion measures are undertaken for the use of hybrid seeds resulted in the increased demand for, and production of, hybrid seeds in the country. Farmers are adopting and using more hybrid seeds, considering the disease- and pest-resistant properties of these seeds, and reducing the losses and cost of production. The scenario post-adoption of hybrid seeds has resulted in many advantages, such as yield improvement, ensuring higher prices, and the availability of seeds at an affordable price, thus promoting the growth of the Indian seed market. Therefore, the benefits of the adoption of hybrid seeds have led farmers to use them in low productivity regions. This has further boosted the demand for seeds in India.

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