Market Trends of Pakistan Seed Industry
This section covers the major market trends shaping the Pakistan Seed Market according to our research experts:
Decrease In Arable Land
The arable land in Pakistan was reduced from 2017 to 2020. The total arable land in Pakistan in 2017 was around 31,210,000 hectares condensed and reached 30,930,000 hectares in 2020. As a result of population expansion and a steady land degradation rate, the per capita land is anticipated to decrease in the future. The decreasing per capita availability of arable land is a significant concern for agricultural production in Pakistan. However, it is considered to be a driver for the seed industry.
The need to increase production from the fluctuating arable land to get higher returns can be met using HYVs and hybrid varieties. This trend encourages farmers to shift their focus from conventional seed sources to packaged seeds, which promise better returns. Hence, to meet the increasing food demand, the production of crops, such as cereals and pulses, needs to increase despite the limited availability of arable land. This has propelled the farmers in the country to adopt high-yielding varieties to produce more within the little available land. This, in turn, drives the growth of the market.
The fluctuating arable land encourages corporations and farmers to pool their resources for contract farming, especially potato and maize crops in Pakistan. The increasing contract farming practices help converge a large set of farmers to one point for seed selection. This maintains uniformity in the produce, thereby assisting the seller in obtaining sustainable demand and augmenting the bulk sale of seeds.
Open Pollinated Seeds Dominates the Market
In 2020, the Maize and Millets Research Institute (MMRI) in Yousafwala, one of the leading maize research institutes in Pakistan, released four open-pollinated varieties (OPVs) sourced from CIMMYT. The varieties, named Gohar-19, CIMMYT-PAK, Sahiwal Gold, and Pop-1, are the new additions to Pakistan's maize variety list. These varieties are of short duration, and can be harvested quickly to rotate land for the next crop. They can also be grown in the main and off-season, which makes them suitable for many different cropping systems.
According to a study by the International Maize and Wheat Improvement Center (CIMMYT), Pakistan in 2020, maize is considered the third most important cereal crop in the country, and its area is increasing at a steady rate by substituting various crops in its non-core area. Around 30% of the land cultivating maize is used for hybrids, while 70% cultivates open-pollinated varieties (OPVs). The farmers in the country, are poor and they prefer to use open-pollinated varieties over hybrid varieties due to the high prices of hybrid varieties. This is further driving the growth of the market.
The Variety Evaluation Committee (VEC) on Rice of Pakistan Agriculture Research Council (PARC) in 2020, introduced an open-pollinated rice variety for commercial cultivation across the rice-growing areas of the country to promote the crop output. Furthermore, in 2020 the Maize & Millets Research Institute introduced Pop-1, the first approved popcorn variety recommended for general cultivation. This variety was found to be moderately resistant to stalk rot caused by Fusarium moniliform during two seasons and shows resistance against the disease. The approval of this variety is also aiding the country in reducing imports.
In recent years, the trend of home production of vegetables is increasing throughout the country. Though the number of garden supply stores has multiplied in the country, the gardeners in the country are finding it difficult to source seeds. Therefore, they are opting for open-pollinated seeds areas that are more readily available than hybrid seeds. This is further augmenting the growth of the market.
