Report Description

India seeds market was valued at USD 3,914.36 million in 2023 and is further anticipated to grow at a CAGR of 7.41% during the forecast period, owing to the rising awareness regarding the benefits of using hybrid seeds. The growth of the market is primarily driven by the increasing demand for better quality seeds. Seed is defined as a fertilized ovule, which contains the plant embryo. It is a mature ovule that consists of an embryo or a miniature undeveloped plant and food reserves, all enclosed within a protective seed coat. The seed is a basic part of any plant. Seeds perform diverse functions in a plant including nourishment of embryo, dispersal to a new site, and hibernation during unfavorable climatic conditions.

India is endowed with the second-largest arable land area in the world, fifteen major climatic zones, and forty-six soil types out of a global total of sixty. This diversity provides us with the opportunity to carry out breeding and evaluation research in most of the world. Furthermore, Indian farmers are highly innovative and responsive to new technologies, as evidenced by their adoption of the Bt cotton technology. India's strength lies not only in its physical characteristics, but also in its values, culture, and traditions. This has been evidenced to the world through the Green Revolution, which enabled the country to achieve self-sufficiency in food grain production. The Indian seeds market is a growing market, and the leading companies are well-positioned to capitalize on this growth. They have strong product portfolios, distribution networks, and marketing strategies. They are also investing in research and development to develop new and improved seed varieties.

The seed replacement rate among hybrids in crops such as cotton, sunflower, jowar, and bajra is 100%, however, the seed replacement rate in OPVs in Indian agriculture is sub-par. To ensure the future growth of the sector, the industry, in conjunction with the public extension system, must increase the SRR from the current level by 2 to 17%, depending on the crop. The immediate objective should be to enhance the Sugar Residue Ratio (SRR) in food crops such as paddy, wheat and pulses. Since the implementation of the Plant Protection and Refrigeration (PPV & FR) Act, the private industry has invested heavily in research and development in this area, and it is evident that there is an increasing demand for proprietary varieties for these crops. In contrast, the SRR of maize is particularly low in certain areas of the state of Rajasthan, which is home to the largest maize area in the country. Therefore, the development of suitable hybrids for this area is likely to result in a significant increase in SRR.

The Indian population's changing lifestyle and dietary habits have led to an increase in the consumption of fruits and vegetables. As a result, the area and production of these crops is expanding due to the demand created by the rising incomes. This will lead to an increased demand for hybrid vegetable seeds. Additionally, genetically modified traits, such as Bt brinjal, will add further value to the vegetable seeds market.

Increasing Foreign Investments and Technological Advancements is Driving Market Growth
The seed industry has recently gained the attention of investors, and Indian investors are eager to see several Initial Public Offering (IPOs) from the seed industry. The government of India has granted foreign direct investment (FDI) in certain agri-related sectors, including seed production. Private equity firms, such as the Blackstone Group and Summit partners, have invested in the seed industries, with the latter having acquired stakes in two of the largest seed companies in India, Nuziveedu Seeds Limited and one seed company Krishi Dhan Seeds. The capital injection will enable the development of the necessary infrastructure for the rapid expansion of the Indian seed industry.

The seed industry is the primary vehicle of technologies designed to enhance productivity. The world was astounded by the rapid adoption of the Bt cotton technology. In this context, the new technology refers to any innovations in seed that farmers find value-for-money. This could be a biotechnological trait, a new hybrid/variety, or a value-add to seed. In addition to public investments in research and development, the private sector has seen a surge in biotechnology/breeding research. The private sector is sponsoring research in both domestic and international research institutions, either on their own or through consortium platforms. For example, rice hybrids with greater adaptability and fine grain quality are expected. This will significantly contribute to the growth of the seed industry. Additionally, biotechnological traits on a number of important crops are in the process of regulatory approval.