The Indian seed market is going from strength to strength in recent years. Currently, the market is sized at USD 2.8 billion, moving at a CAGR of 3.9% from FY 15 to FY 22, outperforming the global growth rate of 1.5%. Over the next 5 years, growth in the seed market is expected to take a further upturn and is expected to reach USD 3.95 billion, at a projected CAGR of 7.1%.
The Indian seed industry has also been party to favorable policies in the past, which include R&D support, investment in the supply chain, and govt. sponsored promotion activities which have helped the industry to scale fast. The governing agencies including the Ministry the Agriculture in India understand the critical role high-yielding seeds will play in reducing gaps in food supplies, improving farmers’ income, and giving a positive flip to the agrarian economy.
Meanwhile, farmers are also adopting the practice of using high-yielding crops in India rather than using the produce from the previous yields. This is also giving a strong push to the domestic market.
Growth Drivers of Seed Market in India
The Way Forward
India’s seed industry is poised to grow at an accelerated pace in the foreseeable future. The market ascent has plenty of potentials to further take off. A bullish agrarian sector coupled with the growing popularity of better yielding seeds will continue to drive the market in an upward direction. Meanwhile, the smaller size of the landholdings and the unorganized nature of agriculture can weigh on the growth and the governing agencies should adopt robust institutional support and concentrated policies to improve distribution and offer credit support to the farming communities.
In addition to domestic demand, India can play a pivotal role in the export of seeds and join the league of other exporting nations such as France, Germany, the USA, the Netherland, etc. However, this will also require sound policy backing and incremental investments in infrastructure such as dry ports and supply chain facilities.
Custom Seed Production, wherein the international parent company will provide seeds and the Indian manufacturer will produce and supply them back, could be a potent area to look into; provided better IP protection policies are enforced. Such seeds will also need an exemption from the registration process, stipulated under the Seed Act.
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