Business Opportunities in Agri/Seed Segment in SAARC Countries: Vol. 7 N by NATIONAL SEED ASSOCIATION OF INDIA

Volume 7 No. 1 Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

5 33 95

Economic Environment of the SAARC Region Indiaâ&#x20AC;&#x2122;s Production and Trade in Seeds Rice Seeds Industry Structure and Seed Delivery Mechanism

Objectives To create a policy environment for the seed industry To create better interaction & provide business opportunities among our stakeholders To hold meetings and interactions between the public & private sector to discuss common issues To facilitate Public Private Partnership

Activities



Scientific Seminars & Interactive Meetings across the globe



Communication & Knowledge Dissemination through Seed Magazine, News mailers, Seed Handbook and other publications



Policy Advocacy by engaging with Government and scientific entities in enabling the favorable policy environment and furthering the stakeholder's interest



Brain Storming Sessions/ Roundtables/ Conferences & Seminars



Works towards globalizing the seed industry, harmonization of regulatory environment, promoting export of seed and investment in seed industry



Promoting international collaborations with stakeholders and industries



Knowledge and skill enhancement of Human resources through:



Capacity building & training



Internship



Exposure to the industry visits & on job training



Training & Capacity building of agri-entrepreneurship



Training & Capacity building of Government Officials



Study Tours



Collaborative trainings with various institutes, organizations & universities

FRONT INSIDE

BACK INSIDE

CONTENTS

nsa

National Seed Association of India

Message from Secretary, Ministry of Agriculture

Message from Director General Foreign Trade

Message from President, National Seed Association of India

Message from Executive Director, National Seed Association of India

About National Seed Association of India

Abbreviations

6-7

About SAARC Region

8 - 12

Economic Environment of the SAARC Region - Mr. David Sinate, Mr. Vanlalruata Fanai, Ms. Snehal Bangera

13 - 15

Recent trends in SAARC International Trade - Mr. David Sinate, Mr. Vanlalruata Fanai, Ms. Snehal Bangera

17 - 28

Introduction- Potential for Trade in Seeds between India and Other SAARC Countries - CUTS International

29 - 32

India's Production and Trade in Seeds - CUTS International

33 - 37

India's Seed Trade with Other SAARC Countries - CUTS International

39 - 48

Potential of Seed Trade and Revealed Comparative Advantage - CUTS International

49 - 51

Past achievement and Future direction of the seed sector in Sri Lanka -D.J.L.Sunil Govinnage

52 - 55

Seed Industry in Pakistan- Regulation, Politics and Entreprenuership - Muhammad Ahsan Rana

56 - 83

Seed Policies and Regulations- India & Bangladesh - CUTS International

84 - 90

Accelerating Seed Sector Development In Bangladesh - Firdousi Naher, IFPRI

91 - 94

Rice Seeds Industry Structure and Seed Delivery Mechanism

95 - 110

External Trade and Trade-related Barriers in Rice Seeds - CUTS International

111 - 124

Informative Tables & Charts:

125 - 127

Annexure 1: Country-wise Revised Sensitive List Relating to Seeds under SAFTA

128 - 130

Annexure 2: Applied MFN Rate by SAARC Countries on Import of Seeds

130 - 133

Annexure 3: Seed Trade Intensity of India and Other SAARC Countries Bilateral Trade Intensity Statistics

134 - 138

Annexure 4: Revealed Comparative Advantage Index of India with Four Countries in Different Seeds

139 - 140

EVENTS NSAIâ&#x20AC;&#x2122;S Contribution to CM Relief Fund AP.

142

NSAI Organizes 8th Annual General Meeting

144 - 145

New Members List

146 - 154

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ASHISH BAHUGUNA SECRETARY

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Government of India Ministry of Agriculture Department of Agriculture & Cooperation

MESSAGE I am happy to learn that the next edition of seed times, the quarterly magazine published by the National Seed Association of India, is on the theme ''Business opportunities in agriculture and seed segment SAARC Countries ''. Seeds are a vital link in the agriculture production chain. The interaction of seeds with other natural resources and agricultural inputs is the key determinant of agriculture productivity. The Indian seed industry is at the forefront in providing quality seeds to the Indian farmers. I am happy that the industry is, in response to the encouraging developments in the recent SAARC regional summit in Kathmandu, Nepal, now focusing on business opportunities in the south Asia region. This a golden opportunity to provide farmers in SAARAC Countries access to improved quality seeds. I hope that the current issue of this magazine will play a catalytic role in enhancing opportunities of collaboration in the seed sector among public and private institutions across various SAARC countries . I convey my best wishes to "National Seed Association of India.

New Delhi 8áľ&#x2014;Ę° November, 2014

(Ashish Bahuguna )

Office : Krishi Bhawan, New Delhi-110001. nwjHkk"kk@Phone : 23382651, 23388444 QSDl la0@Fax No. : 23386004 E-mail : secy-agri@nic.in 1

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GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DIRECTORATE GENERAL OF FOREIGN TRADE Udyog Bhawan, New Delhi-110011

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PRAVIR KUMAR, IAS Director General

MESSAGE It gives me immense pleasure to know that National Seed Association of India is coming up with the next edition of their magazine "Seed Times" on the theme of "Business Opportunities in Agriculture and Seed Segment in SAARC Countries". I am informed that global commercial market for planting seed is estimated at $ 45 billion. Our neighbouring SAARC countries offer a very good potential market for planting seed and Indian Seed Producers should try to make the most of this business opportunity. I am happy to know that the present issue of "Seed Times" gives a rare and useful insight into the opportunities available to Indian Seed Producers and Exporters. It will provide an excellent opportunity to the readers to broaden their knowledge on SAARC related issues. My best wishes for the success of "Seed Times".

Dated: 20th November, 2014. (Pravir Kumar)

8, Udyog Bhawan, H-Wing, (Entry through Gate No. 2), New Delhi-110011; Ph : +91-11-23062777, FaxL +91-11-23061613 E-mail : dgft@nic.in Website : www.dgft.gov.in

nsa

National Seed Association of India

Message from the Desk of President NSAI

The South Asian Association for Regional Cooperation or SAARC was created in 1985 to ensure social and economic development among 7 South Asian nations namely India, Bangladesh, Pakistan, Bhutan, Nepal, Maldives, and Sri Lanka. Members of SAARC countries have advantage of similar market, comparative low transaction cost of carrying out business, similar agro-climatic conditions, food habits and common languages. With a high economic growth and varied agro-climatic and biodiversity the region has significant potential to develop a vibrant seed sector. It also presents an opportunity for complementing each other's strengths to develop intra and inter-regional trade. The low level of trade within the region is a clear indication of low level of cooperation in seed sector. While the intra-regional cooperation in seed sector can be further improved by easing the trade barriers and enabling a quality and standards based compliance system in the entire region by harmonization of the legislative and regulatory frameworks. Other supporting measures by skilling human resources, augmenting R&D capabilities and institutional collaboration within SAARC region will enable overall development of seed industry in the region with an opportunity to meet global demand for high value crops, while providing improved seeds for resource poor farmers. Still a lot of scope remains for expanding the market and reaching out to farming communities across the region with quality inputs. There is significant potential for developing contract based production systems in SAARC countries i.e. to produce in one country with suitable agro climatic conditions and supply in another. However seed Business in SAARC countries should also focus on production of affordable seeds of high quality bundled with agronomic and advisory services to help farmers realize sustainable profits. This edition of “Seed Times with the theme “Business Opportunities in “Agriculture and Seed Segment In SAARC Countries” is exciting and provides lot of useful information for further laying a foundation for developing a vibrant seed sector in the region. The analysis and insights provide an opportunity for us to rethink our strategies for creating a quality and standards based seed industry built on strong foundations of innovation to make agriculture a profitable enterprise and to develop global export capabilities within the SAARC region.

-M. Prabhakar Rao

nsa

National Seed Association of India

Message from ED NSAI

griculture is an integral part of the economy. Agriculture not only provides source of income to rural households but also ensures food security for millions. With rapid growth in science and technology great results in the field of agricultural advancement is expected out of both Public and Private Bodies. Seed Industry has a significant role to play in ensuring that the farmers in our country have the best input material. India is a member of SAARC i.e. South Asian Association for Regional Cooperation. South Asia is characterized by dense population, poverty, hunger and malnutrition, hence for improving the overall development indicators it is essential that we focus on availability and accessibility to quality seeds and partnerships among nations. Seed is an integral and vital input for continuity and improvement in agricultural production systems. Majority population in South Asia lives in rural areas, depending on agricultural activities as their principal source of income and employment. As pointed out in the SAARC Agriculture Vision 2020 share of rural population in total population varies between 66% in Pakistan to 86% in Nepal. Except for Maldives, share of agriculture in total GDP varies between 16.5% - 40% (approx.). In Maldives, less than 3% of total GDP is contributed by agriculture. Due to low productivity of agriculture, per worker income in agriculture is low and, as a consequence, the proportion of population living under poverty is quite high. Constant innovation in the seed sector has led to greater yield and better price of crops for the farmers. In coming times it is imperative that trade in agriculture sector with focus on seed should be of prime importance in the region. Greater cooperation between SAARC countries would ensure good quality seeds which are, on an average, significantly low in South Asia as compared to other countries of Asia. Under South Asian Free Trade Area (SAFTA) agreement it has been agreed to reduce customs duties of all traded goods to zero by the year 2016. However trade is yet to realize its complete potential. Increased cooperation in agriculture among SAARC nations would provide access to raw materials, technology and market. There is an urgent growing need to widen the scope of engagement among SAARC nations for development of region as a whole. However the journey is long and much needs to be done!

-Dr. Kalyan Goswami

ABOUT NSAI National Seed Association of India (NSAI) is the apex organization representing the Indian Seed Industry. The vision of NSAI is to create a dynamic, innovative and internationally competitive, research based industry producing high performance, high quality seeds and planting materials which benefit farmers and significantly contribute to the sustainable growth of Indian Agriculture. The mission of NSAI is to encourage investment in state of the art R&D to bring to the Indian farmer superior genetics and technologies, which are high performing and adapted to a wide range of agro-climatic zones. It actively contributes to the seed industry policy development, with the concerned governments, to ensure that policies and regulations create an enabling environment, including public acceptance, so that the industry is globally competitive. NSAI promotes harmonization and adoption of best commercial practices in production, processing, quality control and distribution of seeds.

OFFICE BEARERS 2013 -2015 President

Mr. M. Prabhakar Rao (Nuziveedu Seeds Pvt. Ltd.)

Vice President

Mr. M. G. Shembekar (Ankur Seeds Pvt. Ltd.)

General Secretary

Mr. Bhupen Dubey (UPL Advanta Ltd.)

Treasurer

Dr. K. S. Narayanaswamy (GEO Biotechnologies Pvt. Ltd.)

Immediate Past President

Dr. K. V. Subbarao (PHI Seeds Ltd.)

GOVERNING COUNCIL MEMBERS Dr. D. B. Desai (Navbharat Seeds Pvt. Ltd.)

Mr. A.S.N. Reddy (Seed Works India Pvt. Ltd.)

Dr. Manish Patel (Incotec India Pvt. Ltd.)

Mr. Pawan Kumar Kansal (Kohinoor Seeds Pvt. Ltd.)

Mr. K. Niranjan Kumar (GARC Seeds Pvt. Ltd.)

Mr. Satish Kagliwal (Nath Biogene Pvt Ltd)

Mr. Venkateshwarlu Yaaganti (Yaaganti Seeds Pvt. Ltd.)

Mr. Girdhar D. Patel (Narmada Sagar Agri Seeds Pvt. Ltd.)

Mr. Rajendran Ramasami (Rasi Seeds Pvt Ltd)

Mr. N. P. Patel (Western Agri Seeds Pvt. Ltd.)

Dr. P. Sateesh Kumar (Prabhat Agri Biotech Pvt. Ltd.)

Mr. V.K. Gaur (National Seed Corporation)

NSAI SECRETARIAT Dr. Kalyan B. Goswami Executive Director

Mrs. Nilendri Biswal Asst. Director

Ms. Vipra Verma Asst. Director

Ms. Vipra Verma & Mrs. Nilendri Biswal The views and opinions expressed by the authors are their own and NSAI by publishing them here, does not endorse them. The editorial correspondence should be sent to, National Seed Association of India, 909, Surya Kiran Building, 19, Kasturba Gandhi Marg, New Delhi -110001 (INDIA) Ph.: 011-4353 3241-45 Fax : 011-43533248

E-mail : info@nsai.co.in Printed at: PRL Print House 6/8 Kirti Nagar Industrial Area, New Delhi - 110015 Ph.: 011-42078052. E-mail: prlprint@gmail.com

A b b re v i a t i o n s AARI

: Ayub Agricultural Research Institute

: Foundation Seeds

ACI

: Advanced Chemical Industries, Ltd

FSC&RD : Federal Seed Certification and Registration Department

ADA

: Agriculture Development Authority

AICBA

: All India Crop Biotechnology Association

AICT

: All India Coordinated Trials

ARI

: Agricultural Research Institute

ARM

: Agricultural Reform Movement

BADC

: Bangladesh Agricultural Development Corporation

: Gilgit Baltistan

GDP

: Gross Domestic Product

: Genetically Modified

GMO

: Genetically Modified Organism

HYV

: High Yielding Varieties

IBC

: Institutional Biosafety Committee : Islamabad

BARI

: Bangladesh Agricultural Research Institute

Ibd

BAU

: Bihar Agriculture University

BINA

: Bangladesh Institute of Nuclear Agriculture

ICRISAT : International Crop Research Institute for SemiArid Tropics

BRBN

: Bihar Rajya Beej Nigam Ltd.

BRRI

: Bangladesh Rice Research Institute

: Breeder Seeds

BSGDMA : Bangladesh Seed Growers, Dealers, and Merchants Association BTI

: Bilateral Trade Intensity

CAGR

: Compound Annual Growth Rate

CCRI

: Central Cotton Research Institute

: Intellectual Property

IPO

: Intellectual Property Organization

IPRs

: Intellectual Property Rights

IRRI

: International Rice Research Institute

ISOPOM : Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize KPK

: Khyber Pakhtunkhwa

KVK

: Krishi Vikas Kendras

: Certified Seeds

MFN

: Most Favoured Nation

CSC

: Central Seed Committee

MNFS&R : Ministry of National Food Security and Research

CSCB

: Central Seed Certification Board

CSTL

: Central Seed Testing Laboratory

DAE

: Department of Agricultural Extension

DUS

: Distinctiveness, Uniformity, and Stability

EDV

: Essentially Derived Variety

FDI

: Foreign Direct Investment

NARS

: National Agricultural Research System

NBC

: National Biosafety Committee

NGOs

: Non-Government Organisations

NIBGE

: National Institute for Biotechnology and Genetic Engineering

NSAI

: National Seed Associations of India

A b b re v i a t i o n s NSB

: National Seed Board

SFCI

: State Farm Corporation of India

NSP

: National Seeds Policy

SMFs

: Seed Multiplication Farms

OGL

: Open General License

SSC

: Sindh Seed Corporation

PAEC

: Pakistan Atomic Energy Commission

SSTLs

: State Seed Testing Laboratories

PARC

: Pakistan Agricultural Research Council

SSTLs

: State Seed Testing Laboratories

PBR

: Plant Breeders' Right

STRASSA: Stress-Tolerant Rice for Africa and South Asia

PCCC

: Pakistan Central Cotton Committee

PEQ

: Post Entry Quarantine

PSC

: Punjab Seed Corporation

R&D

: Research and Development

RAU

: Rajendra Agriculture University

RCA

: Revealed Comparative Advantage

: Raw Seeds

SAARC : South Asian Association for Regional Cooperation SAFTA

: South Asian Free Trade Area

SAUs

: State Agricultural Universities

SCA

: Seed Certification Agency

SVP

: Seed Village Programme

TAC

: Technical Advisory Committee

: Truthfully Labelled Seeds

TMOP

: Technology Mission on Oilseeds & Pulses

TRIPS

: Trade-Related Aspects of Intellectual Property Rights

UAF

: University of Agriculture, Faisalabad

VAT

: Value Added Tax

VCU

: Value in Cultivation and Use

WBSSC : West Bengal State Seed Corporation WPADC : West Pakistan Agricultural Development Corporation

Seed Times Jan. - Mar. 2015

About SAARC Region

Business Opportunities in Agri/Seed Segment in SAARC Countries

About SAARC Region

Unit

Year/ Period

Afghanistan

Bangladesh

India

Pakistan

Area

Population

Nepal

Sri Lanka Maldives Bhutan

000'Sq.Km

2010

652

144

3287

796

147

0.3

38.4

Millions

2010

34.4

148.70

1224.60

173.60

30.0

20.9

0.3

0.6

Millions

2020b

44.8

167.10

1385.20

205.20

35.1

22.3

0.4

0.7

25.1

28.7

34.9

15.8

15.1

29.6

11.1

Population Urbanised

2004b

2015b

29.9

32.0

39.6

20.9

15.7

34.8

14.8

Population under age 15

2010

Population age 65 and above

2010

3.8

4.6

Population Annual Growth Rate

2000-10

2.8

1.4

1.5

1.8

2.1

1.1

1.8

1.5

Crude Birth Rate

Per 1000 population

2010

Total Fertility Rate

Births per woman

2010

6.3

2.2

2.6

3.4

2.7

2.3

Crude Death Rate

Per 1000 Live Births

2010

10.

Infant Mortality Rate

Per 1000 Live Births

2010

103

11.

Mortality Rate Under 5 years age Per 1000 Live Births

2010

149

12.

No. of Deaths under 5 years

000'

1992

103

13.

Life Expectancy at Birth

Male

Years

2010

Female

Years

2010

Persons

Years

2010

Note : -- : Not Available b: Data refer to medium-variant projections c: Data refer to estimates for the period speciďŹ ed. Sources: World Bank, World Development Report 2012 & World Development Indicators 2012.

Business Opportunities in Agri/Seed Segment in SAARC Countries

Item

S.No.

Seed Times Jan. - Mar. 2015

About SAARC Region

SAARC Economic Indicators Demographic indicators for SAARC Countries

S.No. Item

Unit

Year/Period Afghanistan

Bangladesh

India

Pakistan

Nepal

Sri Lanka

Maldives Bhutan

a. Health Expenditure total of GDP

2010

7.6

3.5

4.1

2.2

5.5

2.9

b. Health Expenditure Public of total

2010

11.7

33.6

29.2

38.5

33.2

44.7

c. Health Expenditure Per Capita

(PPP US $)

2010

132

148

494

a. Prevalence of undernourished

2006-08

i. Children underweight-Male

2005-10

40.2

43.1

37.7

21.6

ii. Children underweight-Female

2005-10

42.4

43.9

39.8

21.6

iii. Under age 5 Stunting- Male

2005-10

43.8

47.9

49.1

19.8

-- --

iv. Under age 5 Stunting- Female

2000-07

42.6

48.0

49.6

18.7

i. Prevalence of overweight children (% under age 5)- Male

2005-10

1.2

2.2

0.6

0.7

ii. Prevalence of overweight children (% under age 5)- Female

2005-10

1.0

1.7

0.6

1.0

Infants with low birth weight

2002-07

Population with access to improved water source

2010

Population with access to Improved Sanitation

2010

No.

2005-10b

0.2

0.3

0.6

0.8

0.5

No.

2005-10b

0.5

0.3

1.0

0.6

1.9

-- Against Measles

2010

-- DPT3

2010

About SAARC Region

a. Physicians (per 1000 people) b. Nurses and Midwives

b. Prevalence of child malnutrition

Child Immunisation Rate

Births attended by skilled health staff

2007-07

-- : Not Available PPP : Purchasing Power Parity. a: Data refer to the average for the years specified. b :Data refer to the most recent year available during the period specified. c: Data refer to a year or period other than that specified. Differ from the standard definition or refer to only part of a country. Source: World Bank, World Development Indicators 2012. Source- Rural Development Statistics, Development Indicators for CIRDAP and SAARC Countries, http://www.nird.org.in/

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

Health and Nutrition Indicators of SAARC Countries

Year

Lao PDR

Indonesia

Iran

Vietnam

Philippines

Thailand

Myanmar Malaysia

Education Indicators

Adult Literacy Rate (of 15 years and above)

2005-10

Youth Literacy Rate (of 15-24 years ) - Male

2005-10

100

Youth Literacy Rate (of 15-24 years) - Female %

2005-10

Net Primary Enrolment Ratio

2010

Net Secondary Enrolment Ratio

2010

Technology Indicators

Telephone Mainlines

Per 100 population

2010

Cellular subscribers

Per 100 population

2010

177

104

119

Internet users

Per 100 population

2010

7.0

9.9

13.0

27.9

25.0

21.2

0.2

56.3

Unit

Year

Afghanistan

S.No.

About SAARC Region

Unit

Item

Bangladesh India

Pakistan

Nepal

Sri Lanka

Maldives

Bhutan

Education Indicators

Adult Literacy Rate (of 15 years and above)

2005-10

97.0

52.8

Youth Literacy Rate (of 15-24 years ) - Male

2005-10

98.2

Youth Literacy Rate (of 15-24 years) - Female

2005-10

Net Primary Enrolment Ratio

2010

Net Secondary Enrolment Ratio

2010

Technology Indicators

Telephone Mainlines

Per 100 population

2010

Cellular subscribers

Per 100 population

2010

466

Internet users

Per 100 population

2010

3.7

32.1

7.5

16.8

7.9

12.0

Note : CIRDAP Countries : Column No. 5-18. SAARC Countries: Column No. 13-20. Source- Rural Development Statistics, Development Indicators for CIRDAP and SAARC Countries, http://www.nird.org.in/

Business Opportunities in Agri/Seed Segment in SAARC Countries

Item

S.No.

Seed Times Jan. - Mar. 2015

Education and Economic Indicators of SAARC Countries

Economic Environment of the SAARC Region - Mr. David Sinate, Mr. Vanlalruata Fanai, Ms. Snehal Bangera Export - Import Bank of India

signed by the seven member states during the twelfth 'SAARC Summitâ&#x20AC;&#x2122; held in Islamabad, Pakistan on January 04-06, 2004, and came into force from January 01,2006.

n December 1985, seven South Asian countries Bangladesh, Bhutan. India. Maldives, Nepal, Pakistan and Sri Lanka - charter formally establishing the South Asian Association for Regional Cooperation (SAARC). With Afghanistan joining the organisation in2007. SAARC comprised eight members. SAARC member cooperation among others were in the area of agriculture and rural, biotechnology, culture, energy, environment, economy and trade, finance, funding mechanism, human resource development, poverty alleviation, people to people contact, security aspects, social development, science and technology, communications, and tourism. The SAARC Preferential Trading Agreement (SAPTA) signed in April 1993 in Dhaka, Bangladesh, paved way to the Agreement on South Asian Free Trade Area (SAFTA), SAFTA was

Seed Times Jan. - Mar. 2015

The size of economy of the SAARC region has increased by nearly three-fold, from US$ 793.9 billion in 2003 to US$ 2.4 trillion in 2013, and is projected to touch 3.5 trillion by 2013 (Table 1.1). Accordingly, the share of the SAARC region in global GDP also increased from 2.1 per cent in 2003 to 3.2 per cent In 2013, and is expected to increase further to 3.7 per cent by 2018. India, the largest economy in the SAARC region, accounted for 79 per cent of the GDP of SAARC region in 2013, followed by Pakistan and Bangladesh, contributing around 10 per cent and 6 per cent to GDP, respectively.

Business Opportunities in Agri/Seed Segment in SAARC Countries

Economic Environment of the SAARC Region

Table 1.1: Macroeconomic Snapshot of SAARC Countries GDP (US $ bn)

GDP Growth (%)

2003

country 2013

Consumer PriceInďŹ&#x201A;ation (%)

GDP per capita (uS$)

2013

2003

2013

2003

2013

Exports (uS$ bn) 2003

Imports (uS$ bn)

2013

2003

2013

Afghanistan

4.5

20.7

8.4

3.6

195.3

678.7

24.8

7.4

0.2

0.7

1.6

6.6

Bangladesh

54.5

141.3

5.8

391.4

903.9

5.4

7.5

8.3

30.7

8.5

32.8

0.6

2.0

9.1

5.0

907.3

2665.1

2.1

8.7

0.1

0.2

0.1

0.3

618.4

1870.7

7.9

4.4

572.3

1504.5

3.9

9.5

59.4

336.6

72.4

466.0

Maldives

1.0

2.3

14.2

3.7 3332.1

6764.9

-2.8

4.0

0.1

0.2

0.5

1.8

Nepal

6.3

19.3

3.9

3.6

258.0

692.6

4.7

9.9

0.6

0.7

1.1

5.9

Pakistan

89.8

238.7

4.7

3.6

612.0

1307.5

3.2

7.4

11.9

25.1

13.0

43.8

Sri Lanka

18.9

65.8

5.9

7.3

982.3

3161.7

9.0

6.9

5.1

9.5

6.1

16.7

793.9

2360.8

7.5

4.6

906.3

2209.9

6.3

7.6

85.7

403.7 103.3

573.9

Bhutan India

SAARC

e: estimates; f: forecast Source: IMF, WEO, April 2014; ITC Trademap; and Exim Bank Analysis

as growth in India is expected to recover due to structural reforms. Sri Lanka's economy is expected to grow on the back of an improving external environment, higher investments, and a recovery in domestic consumption.While both Bangladesh and Pakistan are engaged in wide-ranging adjustment programs, which are forecast to strengthen their economic fundamentals. In Bhutan, real GDP growth is expected to rebound as hydropower construction projects under the Eleventh Five-Year Plan get under way. Improving global economic prospects are expected to boost tourism in Maldives and thus overall economic growth. Favourable monsoons resulting in recovery of the agricultural sector and an expected strengthening in remittance inflows will lead to a recovery in growth in Nepal. While in Afghanistan, recovery is expected to be slow during the forecast period.

SAARC economy is mostly dominated by services sector, which accounted for 55 per cent of GDP in 2012, followed by industry and agriculture (Table 1.2). In Bhutan, however, industry continued to be a dominant sector, accounting for 44 per cent of the GDP in 2012; while in Afghanistan and Nepal, however, agriculture continued to remain the second largest sector.

Outlook SAARC is among the fastest growing regions in the world with an average real GDP growth rate of 6.5 percent in the last 10 years (2004-2013), and is expected to grow faster than emerging markets and developing economies, and several other regions including ASEAN-5, CIS, and LAC during 2014-2018 (Chart 1.1). SAARC's real GDP growth is forecast to improve, mainly

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

Economic Environment of the SAARC Region

Table 1.2: Structure of SAARC’s Economy (Share in GDP, %) 1.Agriculture

country

2002

2.Industry

2012

2002

2.a.Manufacturing

2012

2002

3.Services

2012

2002

2012

Afghanistan

Bangladesh

Bhutan

India

Nepal

Pakistan

Sri Lanka

SAARc

Maldives

Source: World Development Indicators 2014, World Bank; and Exim Bank Analysis

Chart 1.1: Real GDP Growth of the SAARC Region (annual percentage change)

f - forecast ; Source: IMF, WEO, April 2014; and Exim Bank Analysis. From the “POTENTIAL FOR Enhancing Intra-SAARC Trade: A Brief Analysis”. Reprinted with the kind permission of Export-Import Bank of India. EXIM Bank's Working Paper Series is an attempt to disseminate the findings of research studies carried out in the Bank. The results of research studies can interest exporters, policy makers, industrialists, export promotion agencies as well as researchers. However, views expressed do not necessarily reflect those of the Bank. While reasonable care has been taken to ensure authenticity of information and data, EXIM Bank accepts no responsibility for authenticity, accuracy or completeness of such items.

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Business Opportunities in Agri/Seed Segment in SAARC Countries

Recent Trends in SAARC’s International Trade - Mr. David Sinate, Mr. Vanlalruata Fanai, Ms. Snehal Bangera Export - Import Bank of India

In the case of exports. SAARC's total exports have risen from US$ 35.3 billion in 2003 to US£ 403.7 billion in 2013, with a resultant rise in the share of SAARC in global exports from 1.1 per cent to 2.2 per cent during the period.

he SAARC region is well endowed with natural resources. The region also has abundant agricultural wealth in terms of the variety and mass of arable land and has significant human resources and technological capabilities. With a combined population of 1.7 billion and an estimated GDP of USS 2.5 trillion in 2013 the SAARC region represents a huge market for trade.

As regards imports, SAARC's total imports have also witnessed a continuous growth. In 2013, SAARC's total imports rose more than five-fold to US$ 573.9 billion (3.1 per cent of global imports), up from US$ 103.3 billion (1.3 per cent of global imports) in 2003.

The total trade of SAARC has increased over five-fold from US$189 billion in 2003 to US$977.6 billion in 2013 (Table 2.1). This upward trend has been underlined by favourable growth performances of both SAARC's exports and imports.

SAARC generally maintains a trade deficit, which has widened from US$ 17.5 billion in 2003 to US$ 170.2 billion in 2013.

Table 2.1: SAARc’s Foreign Trade, 2003-2013 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

85.7

103.4

132.6

157.4

185.7

228.5

220.6

272.5

365.6

351.9

403.7

41.9

23.8

28.2

18.7

18.0

23.1

-3.5

23.5

34.2

-3.7

14.7

% share in Asia

3.7

3.5

3.8

3.9

4.1

5.0

4.7

5.2

4.8

5.8

% share in Global Exports

1.1

1.3

1.4

1.8

2.0

1.9

2.2

103.3

138.7

191.6

238.4

285.6

398.2

334.5

438.4

572.3

594.9

573.9

39.8

30.9

38.1

24.4

19.8

39.4

-16.0

31.1

30.5

3.9

-3.5

% share in Asia

5.0

5.3

6.1

6.7

6.8

7.8

8.1

8.6

8.0

% share in Global Imports

1.3

1.5

1.8

1.9

2.0

2.4

2.6

2.9

3.1

3.2

3.1

Total Trade (uS$ bn)

189.0

242.1

324.2

395.7

471.3

626.7

555.1

710.9

937.9

946.8

977.6

Trade Balance (uS$ bn)

-17.5

-35.3

-59.0

-81.0

-99.9

-169.6 -113.9

-166.0

-206.8

-243.0

-170.2

Exports (uS$ bn) % growth

Imports (uS$ bn) % growth

Source: ITC Trade Map, Geneva; and Exim Bank Analysis

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In the SAARC region, India is the largest trading member, accounting for 83.4 per cent of SAARC's total exports and 81.2 per cent of SAARC's total imports in 2013. Other important exporters from the region include Bangladesh (7.6 per cent of SAARC's total exports), Pakistan (6.2 per cent), and Sri Lanka (2.4 per cent). Other major importers in the region include Pakistan (7.6 per cent of SAARC's total imports), Bangladesh (5.7 per cent), and Sri Lanka (2.9 per cent) (Chart 2.1 and 2.2).

countries. For instance, India alone accounted for 82.1 percent of total trade of the region. An important aspect of SAARC trade is that member countries generally maintain a trade deficit, which has increased from US$ 113.9 billion in 2009 to US$ 170.2 billion in 2013. This can be primarily attributed to the trade deficit of USS 129.4 billion witnessed by India in 2013, followed by Pakistan (USS 18.7 billion). Sri Lanka (US$ 7.2 billion). Afghanistan (US$ 5.9 billion), Nepal (USS 5.2 billion), Bangladesh (US$ 2.1 billion), Maldives (USS 16 billion), and Bhutan (US$ 0.1 billion).

There exist wide disparities in trade among member Chart 2.1: SAARCâ&#x20AC;&#x2122;s Global Exports (2009-2013)

450.0

403.7

400.0

365.6

351.9

350.0 272.5

US$ billion

300.0 250.0

220.6

200.0 150.0 100.0 50.0 0.0 Bhutan Maldives Afghanistan Nepal Sri Lanka Pakistan Bangladesh India SAARC Aggregation

2009

2010

2011

2012

2013

0.5 0.1 0.4 0.9 7.1 17.6 17.3 176.8 220.6

0.4 0.1 0.4 0.9 8.3 21.4 20.6 220.4 272.5

0.5 0.1 0.4 0.9 10.0 25.3 26.9 301.5 365.6

0.2 0.2 0.4 0.6 9.4 24.6 27.0 289.6 351.9

0.2 0.2 0.7 0.7 9.5 25.1 30.7 336.6 403.7

Source: ITC Trade Map, Geneva; and Exim Bank Analysis

products, and edible vegetables and certain roots and tubers. Major export destinations of Afghanistan in 2013 include Pakistan (43.6 per cent of its total exports), India (30.2 per cent), USA (5.8 per cent), Finland (2.4 per cent), and Germany (2.3 per cent).

Afghanistan Table 2.2 presents Afghanistan's major traded commodities and their respective trading partners. As can be seen from the table, edible fruit, nuts, peel of citrus fruit and melons are the largest items in Afghanistan's export basket, accounting for 27.7 per cent of its total exports in 2013. Other important items include cotton, mineral fuels, oils, and distillation

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As regards imports, vehicles other than railway, tramway were the largest imported commodity accounting for 11.4 per cent of Afghanistan's overall

Business Opportunities in Agri/Seed Segment in SAARC Countries

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Chart 2.2: SAARCâ&#x20AC;&#x2122;s Global Imports (2009-2013)

700.0 572.3

600.0

US$ billion

500.0 400.0

594.9

573.9

438.4 334.5

300.0 200.0 100.0 00.0 Bhutan Maldives Nepal Afghanistan Sri Lanka Bangladesh Pakistan India SAARC Aggregation

2009

2010

2011

2012

2013

0.5 1.0 3.8 3.3 9.4 18.5 31.6 266.4 334.5

0.9 1.1 5.1 5.2 12.4 26.3 37.5 350.0 438.4

1.1 1.4 5.9 6.4 19.7 31.9 43.6 462.4 572.3

0.3 1.6 5.2 6.2 17.9 31.0 43.8 489.0 594.9

0.3 1.8 5.9 6.6 16.7 32.8 43.8 466.0 573.9

Source: ITC Trade Map, Geneva; and Exim Bank Analysis

25.3 per cent of Bangladesh's overall imports in 2013. Bangladesh's major import sources include China (29.6 per cent of its total imports), India (18.3 per cent), Singapore (7.7 per cent), and Malaysia (4.8 per cent).

imports in 2013, followed by electrical and electronic equipment, and mineral fuels, oils, and its distillation products. Afghanistan's major import sources include Pakistan (30.3 per cent of its total imports in 2013), USA (21.4 per cent), India (7.8 per cent), Russian Federation (7.3 per cent), and China (5.0 per cent).

Bhutan Bhutan's major traded commodities and their respective trading partners are presented in Table 2.4. Iron and steel is the largest item in Bhutan's export basket, with a share of 72.3 per cent of its total exports in 2013. India is the largest destination for Bhutan's exports accounting for 88.5 per cent of Bhutan's total exports in 2013.

Bangladesh Bangladesh's major traded commodities and their respective trading partners are presented in Table 2.3. As can be seen from the table, readymade garments (articles of apparel, accessories, knit or crochet and not knit or crochet) are the largest items in Bangladesh's export basket accounting for 85.1 percent of its total exports in 2013. Major export destinations of Bangladesh in 2013 include USA (18.2 per cent of its total exports), Germany (15.2 per cent), UK (9.5 per cent), France (6.5 per cent), and Spain (5.4 per cent).

As regards imports, mineral fuels, oils, and its distillation products were the largest imported commodity accounting for 23.5 per cent of Bhutan's overall imports in 2013, followed by machinery and equipment (10.8 per cent of its total imports), and electrical and electronic equipment (10.4 per cent). Bhutan's major import sources include India (61.3 per cent of its total imports in 2013), Thailand (9.8 percent), and China (6.6 percent).

Cotton, machinery and equipments were the largest imported commodities cumulatively accounting for

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export destinations of Nepal in 2013 include India (53.9 per cent of its total exports in 2013), USA (11.9 per cent), China (6.2 per cent), and Germany (5.5 per cent).

India Table 2.5 presents India's major traded commodities and their respective trading partners. Mineral fuels, oils, and distillation products (petroleum products) are the largest items in India's export basket, with a share of 20.7 per cent of its total exports in 2013. Major export destinations of India include USA(12.5 percent of its total exports), UAE (10.1 per cent), China (4.9 per cent), Singapore (4.2 percent), and Hong Kong (4.1 percent).

As regards imports, articles of apparel, accessories, knit or crochet were the largest imported commodity accounting for 15.7 per cent of Nepal's overall imports in 2013. Nepal's major import sources include India (53.8 per cent of its total imports in 2013), China (37.4 per cent), and Singapore (1.9 per cent).

Pakistan

Mineral fuels, oils, and distillation products (crude) were the largest imported commodity accounting for 39.5 per cent of India's overall imports in 2013, followed by pearls, precious stones, metals, coins which accounted for 14.5 per cent of the overall imports during the same year. India's major import sources include China (11.1 per cent of its total imports), Saudi Arabia (7.9 per cent), UAE (7.1 per cent), Switzerland (5.3 per cent), and USA (4.8 percent).

Ta b l e 2 . 8 p re s e n t s Pa k i stan's major traded commodities and their respective trading partners. Cotton is the largest item in Pakistan's export basket, with a share of 21.2 per cent of its total exports in 2013. Major export destinations of Pakistan in 2013 include USA (14.9 per cent of its total exports in 2013), China (10.6 per cent), Afghanistan (8.0 per cent), UAE (7.1 per cent), and UK (5.7 percent). Mineral fuel, oil, and its distillation products were the largest imported commodity accounting for 34.8 per cent of Pakistan's overall imports in 2013, followed by machinery and equipment, and electrical and electronic equipment. Pakistan's major import sources include UAE (17.7 per cent of its total imports in 2013), China (15.1 per cent), Kuwait (9.0 per cent), Saudi Arabia (8.8 per cent), and Japan (4.5 per cent).

Maldives Ta b l e 2 . 6 p r e s e n t s M a l d i v e s ' m a j o r t ra d e d commodities and their respective trading partners. Fish, crustaceans, molluscs, and aquatic invertebrates are the largest item in Maldives' export basket, accounting for 88 per cent of its total exports in 2013. Major export destinations of Maldives in 2013 include Thailand (37.0 per cent of its total exports in), France (13.5 per cent), Iran (6.5 per cent), Germany (6.0 per cent), and Sri Lanka (5.7 per cent).

Sri Lanka Table 2.9 presents Sri Lanka's major traded commodities and their respective trading partners. As can be seen from the table, readymade garments (articles of apparel, accessories, knit or crochet and not knit or crochet), followed by coffee, tea, mate and spices are the largest items in Sri Lanka's export basket in 2013. Major export destinations of Sri Lanka in 2013 include USA (27.0 per cent of its total exports in 2013), UK (11.6 per cent), Germany (6.3 per cent), India (5.4 per cent), and Belgium (5.1 per cent).

As regards imports, mineral fuels, oils, and distillation products were the largest imported items commodity accounting for 29.1 per cent of Maldives' overall imports in 2013, followed by machinery and equipment, and electrical and electronic equipment. Maldives' major import sources include UAE (28.4 per cent of its total imports), Singapore (16.2 percent), India (8.9 per cent), Sri Lanka (5.9 per cent), and Thailand (5.0 per cent).

As regards imports, mineral fuel, oil, and its distillation products were the largest imported commodity accounting for 16.2 per cent of Sri Lanka's overall imports in 2013. Sri Lanka's major import sources include India (28.4 per cent of its total imports in 2013), China (20.5 per cent), Singapore (11.7 per cent), Japan (3.5 per cent), and Malaysia (3.4 percent).

Nepal Nepal's major traded commodities and their respective trading partners are presented in Table 2.7. Carpets and other textile floor coverings, accounting for 12.9 per cent of Nepal's overall exports in 2013, was the largest item in Nepal's exported basket. Major

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Table 2.2: Major Commodities Traded by Afghanistan and its Major Trading Partners, 2013 Exports commodity hS code

All products

Edible fruit, nuts, peel of citrus fruit, melons

cotton

Exports (uS$ mn) 705.3

195.2

127.1

Imports Major Export Destinations for each Product

Pakistan

(43.6%)

India

(30.2%)

Edible vegetables and certain roots and tubers

Iron and steel

42.1

6591.5

Pakistan

(30.3%)

USA

(21.4%)

India

(7.8%)

Finland

(2.4%)

Russian Federation

(7.3%)

Germany

(2.3%)

China

(5.0%)

India

(70.7%)

Pakistan

(17.5%)

Vehicles other than railway, tramway

751.2

USA

(28.9%)

Thailand

(20.8%) (14.2%)

Russian Federation

(6.0%)

Germany

(0.9%)

China

(6.8%)

(0.8%)

Netherlands

(5.4%)

Pakistan

(99.6%)

Malaysia

(0.3%)

55.7

46.5

All products

Major Import Sources for each Product

(5.8%)

Electrical, electronic equipment

495.8

USA

(37.6%)

China

(12.7%)

Turkey

(8.7%)

Germany

(8.3%)

Pakistan

(6.3%)

(99.9%)

Mozambique 27

hS code

Imports (uS$ mn)

USA

Pakistan

Mineral fuels, oils, distillation products

commodity

Russian Federation

(0.1%) 27

Mineral fuels, oils, distillation products

490.4

(62.4%)

Estonia

(8.3%)

Lithuania

(7.3%)

Kazakhstan

(5.5%)

Pakistan

(5.2%)

Pakistan

(54.1%)

India

(36.7%)

Optical, photo, technical, medical apparatus

440.9

USA

(87.0%)

Italy

(4.2%)

Kazakhstan

(4.5%)

China

(1.7%)

Russian Federation

(4.3%)

Japan

(1.2%)

Canada

(0.3%)

(1.0%)

Pakistan

(99.1%)

Germany

Machinery and equipment

403.4

USA

(35.9%)

(0.3%)

Pakistan

(13.6%)

Mexico

(0.2%)

China

(10.0%)

Mozambique

(0.2%)

Turkey

(4.9%)

Senegal

(0.1%)

(4.2%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

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Table 2.3: Major Commodities Traded by Bangladesh and its Major Trading Partners, 2013 Exports commodity hS code

All products

Articles of apparel, accessories, knit or crochet

Articles of apparel, accessories, not knit or crochet

Other made textile articles, sets, worn clothing

Fish, crustaceans, molluscs, aquatic invertebrates

Vegetable textile ﬁbres,paper yarn, woven fabric

Exports (uS$ mn) 30693.5

13115.0

12993.0

1032.6

625.7

585.4

Imports Major Export Destinations for each Product

USA

(18.2%)

Germany

(15.2%)

commodity hS code

All products

Imports (uS$ mn) 32836.1

Major Import Sources for each Product

China

(29.6%)

India

(18.3%)

(9.5%)

Singapore

(7.7%)

France

(6.8%)

Malaysia

(4.8%)

Spain

(5.4%)

South Korea

(4.3%)

Germany

(19.5%)

(10.7%)

cotton

4974.1

China

(43.6%)

India

(33.4%)

USA

(9.3%)

Pakistan

(12.3%)

France

(8.8%)

Australia

(2.3%)

Spain

(6.9%)

USA

(2.1%)

USA

(29.4%)

Germany

(13.7%)

Machinery and equipment

3345.1

China

(34.1%)

Singapore

(13.7%)

(9.4%)

India

(8.5%)

France

(5.7%)

Germany

(6.5%)

Spain

(5.1%)

Italy

(5.7%)

USA

(19.0%)

Germany

(12.4%)

Mineral fuels, oils, distillation products

2270.5

Singapore

(47.5%)

Malaysia

(31.0%)

(7.5%)

India

(7.1%)

France

(7.1%)

South Korea

(5.8%)

Canada

(6.9%)

Qatar

(2.8%)

China

(52.4%)

(14.9%)

Belgium

(13.5%)

Germany

Electrical, electronic equipment

1805.0

Singapore

(9.4%)

(12.3%)

India

(7.3%)

Netherlands

(11.1%)

South Korea

(4.6%)

China

(10.0%)

Germany

(3.7%)

Turkey

(31.4%)

Japan

(19.2%)

India

(17.0%)

India

(15.4%)

China

(15.8%)

Taipei, Chinese

(14.6%) (10.8%)

Iron and steel

1618.2

Pakistan

(7.5%)

South Korea

Russian Federation

(3.8%)

China

(8.6%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

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Table 2.4: Major commodities Traded by Bhutan and its Major Trading Partners, 2013 Exports commodity hS code

All products

Iron and steel

Inorganic chemicals, precious metal compound, isotopes

Exports (uS$ mn) 154.9

112.0

22.5

Plastics and articles thereof

4.7

Imports Major Export Destinations for each Product

India

(88.5%)

copper and articles thereof

Wood and articles of wood, wood charcoal

3.3

2.7

hS code

All products

Imports (uS$ mn) 263.7

Major Import Sources for each Product

India

(61.3%)

Germany

(4.3%)

Thailand

(9.8%)

Italy

(2.0%)

China

(6.6%)

Japan

(1.4%)

Austria

(4.1%)

Netherlands

(1.0%)

Singapore

(3.4%)

India

(88.1%)

Germany

(5.5%)

Italy

Mineral fuels, oils, distillation products

61.8

India

(100.0%) -

(2.8%)

Netherlands

(1.4%)

France

(1.1%)

India

(100.0%)

Machinery and equipment

28.6

India

(34.2%) (17.0%)

Switzerland

Singapore

(9.5%)

Japan

(7.9%)

Austria

(6.7%)

Austria

(28.8%)

India

(15.6%)

India

(99.9%)

Austria

commodity

Electrical, electronic equipment

27.5

(0.1%) -

Singapore

(14.7%)

Sweden

(12.1%)

China

(10.2%)

India

(89.3%)

India

(100.0%)

Articles of iron or steel

19.0

China

(4.2%)

Austria

(2.5%)

Belgium

(1.6%)

Italy

(1.1%)

India

(93.9%)

Japan

(6.1%)

Iron and steel

15.4

India

(99.6%)

USA

(0.3%)

Germany

(0.1%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

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Table 2.5: Major commodities Traded by India and its Major Trading Partners, 2013 Exports commodity

hS code

All products

Mineral fuels, oils, distillation products

Pearls, precious stones, metals, coins

Vehicles other than railway, tramway

Organic chemicals

Machinery, nuclear reactors, boilers

Exports (uS$ mn)

336611.4

69571.3

44157.7

13787.3

13299.9

13126.0

Imports Major Export Destinations for each Product

commodity

Imports (uS$ mn)

Major Import Sources for each Product

USA

(12.5%)

China

UAE

(10.1%)

Saudi Arabia

(7.9%)

UAE

(7.1%)

hS code

All products

466045.6

(11.1%)

China

(4.9%)

Singapore

(4.2%)

Switzerland

(5.3%)

Hong Kong

(4.1%)

USA

(4.8%)

Singapore

(11.8%)

Mineral fuels, oils, distillation products

184194.0

Saudi Arabia

(17.9%)

Iraq

(10.9%)

Saudi Arabia

(9.9%)

UAE

(8.0%)

Kuwait

(9.0%)

Netherlands

(6.5%)

Venezuela

(8.1%)

USA

(5.4%)

UAE

(7.7%)

UAE

(34.8%)

Hong Kong

(26.9%)

USA

(19.4%)

Pearls, precious stones, metals, coins

67499.9

Switzerland

(33.4%)

UAE

(22.2%)

Belgium

(12.3%)

Belgium

(6.0%)

Hong Kong

(7.6%)

Israel

(3.2%)

South Africa

(5.7%)

USA

(8.1%)

South Africa

Machinery and equipments

31945.7

China

(30.6%)

(7.7%)

Germany

(12.0%)

(6.8%)

Japan

(9.0%)

Mexico

(4.8%)

USA

(8.7%)

Nigeria

(3.6%)

South Korea

(5.4%)

USA

(12.8%)

Electrical, electronic equipment

29787.3

China

(48.5%)

China

(7.9%)

South Korea

(6.1%)

Malaysia

(5.0%)

Viet Nam

(4.9%)

Germany

(4.8%)

USA

(4.7%)

Indonesia

(4.4%)

Germany

(4.7%)

Organic chemicals

16921.4

China

USA

(13.1%)

UAE

(5.5%)

Singapore

(9.5%)

Germany

(4.9%)

South Korea

(7.4%)

(4.8%)

Saudi Arabia

(7.0%)

China

(3.9%)

USA

(5.1%)

(30.9%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

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Table 2.6: Major commodities Traded by Maldives and its Major Trading Partners, 2013 Exports commodity hS code

All products

Fish, crustaceans, molluscs, aquatic invertebrates

Exports (uS$ mn) 168.4

148.2

Meat,ﬁshand seafood food preparations

16.7

Imports Major Export Destinations for each Product

Thailand

(31.1%)

France

Iron and steel

1.8

Residues, wastes of food industry, animal fodder

copper and articles thereof

0.7

All products

1753.1

Major Import Sources for each Product

Share (22.5%)

(16.4%)

India

(12.8%)

USA

(11.8%)

China

(10.0%)

(9.0%)

Italy

(6.9%)

Thailand

(36.5%)

France

(19.2%)

USA

Mineral fuels, oils, distillation products

509.7

Thailand

(8.4%)

Malaysia

(8.1%)

Singapore

(92.6%)

India

(4.0%)

(13.7%)

Oman

(2.1%)

Italy

(8.0%)

China

(0.7%)

(7.4%)

USA

(0.2%)

Ireland

(29.5%)

Machinery and equipment

143.0

Singapore

(28.9%)

(28.6%)

Italy

(11.2%)

Netherlands

(18.7%)

Malaysia

(10.5%)

Japan

(13.1%)

India

(7.9%)

(5.2%)

China

(7.2%)

India

(99.9%)

Pakistan

hS code

Imports (uS$ mn)

Singapore

Germany 72

commodity

Electrical, electronic equipment

(0.1%) -

Turkey

125.3

Singapore

(48.1%)

China

(21.6%)

USA

(4.6%)

Czech Republic

(3.7%)

Malaysia

(3.1%)

(100.0%) -

Aircra , spacecra , and parts thereof

57.2

France

(84.4%)

Australia

(6.0%)

Canada

(5.0%)

Singapore

(1.7%)

Germany

(0.9%)

Malaysia

(38.1%)

New Zealand

(15.4%)

India

(94.7%)

Malaysia

(5.3%)

Wood and articles of wood, wood charcoal

52.8

Singapore

(14.1%)

China

(12.9%)

Czech Republic

(3.6%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

Recent Trends in SAARC’s International Trade

Table 2.7: Major commodities Traded by Nepal and its Major Trading Partners, 2013 Exports commodity hS code

All products

carpets and othertextileﬂoor coverings

Beverages, spirits and vinegar

Articles of apparel, accessories, not knit or crochet

Exports (uS$ mn) 699.1

89.9

66.2

53.9

Imports Major Export Destinations for each Product

Plastics and articles thereof

Manmade staple ﬁbres

49.3

37.5

hS code

India

(53.9%)

USA

(11.9%)

All products

Imports (uS$ mn) 5909.1

Major Import Sources for each Product

India

(53.8%)

China

(37.4%)

China

(6.2%)

Singapore

(1.9%)

Germany

(5.5%)

Thailand

(0.9%)

(3.4%)

Germany

(0.7%)

USA

(41.4%)

Germany

(18.5%)

Articles of apparel, accessories, knit or crochet

927.4

China

(99.2%)

India

(0.7%)

Thailand

(0.1%)

(7.2%)

Canada

(6.0%)

Netherlands

(3.5%)

India

(99.4%)

Japan

(0.4%)

USA

(0.1%)

Mineral fuels, oils, distillation products

859.5

India

(99.7%)

Australia

(0.1%)

Singapore

(0.1%)

USA

(20.4%)

France

(16.0%)

Germany UK Japan 39

commodity

India

Articles of apparel, accessories, not knit or crochet

437.6

China

(98.5%)

India

(0.8%)

(13.1%)

South Korea

(0.3%)

(11.8%)

Thailand

(0.3%)

(6.1%)

Indonesia

(0.1%)

(98.8%)

Iron and steel

349.2

India

(97.7%)

Mexico

(0.5%)

Japan

(1.5%)

Czech Republic

(0.3%)

China

(0.7%)

USA

(0.1%)

China

(0.1%) 85

India

(69.6%)

Turkey

(27.5%)

China

(2.9%)

Electrical, electronic equipment

325.9

China

(55.3%)

India

(24.8%)

Singapore

(12.9%)

Germany

(1.0%)

Italy

(1.0%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

Recent Trends in SAARC’s International Trade

Table 2.8: Major commodities Traded by Pakistan and its Major Trading Partners, 2013 Exports commodity hS code

All products

cotton

Other made textile articles, sets, worn clothing

cereals

Articles of apparel, accessories, knit or crochet

Articles of apparel, accessories, not knit or crochet

Exports (uS$ mn) 25120.9

5333.8

3685.5

2181.0

2105.3

1854.9

Imports Major Export Destinations for each Product

USA

(14.9%)

China

(10.6%)

commodity hS code

All products

Imports (uS$ mn) 43775.2

Major Import Sources for each Product

UAE

(17.7%)

China

(15.1%)

Afghanistan

(8.0%)

Kuwait

(9.0%)

UAE

(7.1%)

Saudi Arabia

(8.8%)

(5.7%)

Japan

(4.5%)

China

(36.3%)

Bangladesh

(11.5%)

Hong Kong

Mineral fuels, oils, distillation products

15247.4

UAE

(43.2%)

Kuwait

(22.8%)

(3.9%)

Saudi Arabia

(19.1%)

Italy

(3.8%)

Oman

(5.9%)

Turkey

(3.1%)

Malaysia

(2.5%)

USA

(38.6%)

(12.8%)

Machinery and equipment

3058.3

China

(27.4%)

USA

(12.7%)

Germany

(6.4%)

Japan

(9.2%)

Australia

(4.4%)

Germany

(9.2%)

Belgium

(4.3%)

Italy

(6.6%)

Kenya

(9.1%)

UAE

(8.7%)

USA

(7.1%)

Afghanistan

(6.7%)

Singapore

(2.9%)

China

(6.6%)

(2.8%)

Saudi Arabia

(5.8%)

South Korea

(2.3%)

USA

(49.9%)

(14.3%)

Electrical, electronic equipment

Organic chemicals

2682.3

2015.5

China

(65.5%)

Kuwait

(20.3%)

China

(18.8%)

Netherlands

(5.9%)

Saudi Arabia

(15.6%)

Germany

(5.2%)

India

(12.9%)

Belgium

(4.0%)

UAE

USA

(28.4%)

(13.3%)

Germany

(11.3%)

Spain

(11.2%)

Belgium

(6.4%)

Animal, vegetable fats and oils, cleavage products

1979.6

(5.2%)

Malaysia

(58.8%)

Indonesia

(35.8%)

Argentina

(2.8%)

Australia

(0.8%)

USA

(0.4%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

Recent Trends in SAARC’s International Trade Table 2.9: Major Commodities Traded by Sri Lanka and its Major Trading Partners, 2013 Exports commodity

hS code

All products

Articles of apparel, accessories, knit or crochet

Articles of apparel, accessories, not knit or crochet

coﬀee, tea, mate and spices

Rubber and articles thereof

Pearls, precious stones, metals, coins

Exports (uS$ mn)

9531.4

2525.9

2051.9

1022.1

990.9

527.2

Imports Major Export Destination for each Product

commodity

Imports (uS$ mn)

Major Import Sources for each Product

USA

(27.0%)

India

(28.4%)

(11.6%)

China

(20.5%)

Singapore

(11.7%)

hS code

All products

16728.5

Germany

(6.3%)

India

(5.4%)

Japan

(3.5%)

Belgium

(5.1%)

Malaysia

(3.4%)

USA

(36.3%)

(18.5%)

Mineral fuels, oils, distillation products

2713.3

Singapore

(47.4%)

India

(24.3%)

Italy

(7.1%)

China

(8.8%)

Belgium

(5.9%)

Malaysia

(5.5%)

Germany

(5.3%)

Oman

(4.9%)

China

(32.6%)

Singapore

(14.9%) (10.5%)

USA

(41.3%)

(21.9%)

Machinery and equipment

1445.1

Germany

(6.5%)

India

Italy

(6.1%)

Germany

(7.7%)

Russian Federation

(2.4%)

Italy

(3.9%)

Russian Federation

(24.6%)

Vehicles other than railway, tramway

1158.8

India

(38.1%)

Japan

(34.7%) (10.7%)

India

(8.4%)

Mexico

(6.2%)

China

Japan

(5.3%)

(3.9%)

USA

(5.2%)

Germany

(3.9%)

USA

(30.9%)

Germany

(11.4%)

Aircra , spacecra , and parts thereof

959.1

India

(97.0%)

Netherlands

(1.3%)

(4.8%)

Singapore

(0.8%)

Belgium

(4.6%)

France

(0.4%)

Italy

(4.6%)

Germany

(0.1%)

Belgium

(35.6%)

USA

(21.1%)

Israel

(13.1%)

Electrical, electronic equipment

874.7

China

(42.7%)

India

(14.9%)

Singapore

(11.4%)

Switzerland

(6.7%)

France

(3.3%)

Thailand

(5.4%)

Indonesia

(2.8%)

‘-’ negligible or not available or not applicable Source: ITC Trade Map, Geneva; and Exim Bank Analysis. From the “POTENTIAL FOR Enhancing Intra-SAARC Trade: A Brief Analysis”. Reprinted with the kind permission of Export-Import Bank of India. EXIM Bank's Working Paper Series is an attempt to disseminate the findings of research studies carried out in the Bank. The results of research studies can interest exporters, policy makers, industrialists, export promotion agencies as well as researchers. However, views expressed do not necessarily reflect those of the Bank. While reasonable care has been taken to ensure authenticity of information and data, EXIM Bank accepts no responsibility for authenticity, accuracy or completeness of such items.

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

Seed Trade in

SAARC Region

Introduction- Potential for Trade in Seeds between India and Other SAARC Countries - CUTS International

developing and developed countries. At present, this region faces huge challenges on account of climate change, global warming and higher prices of food grains. All these challenges coupled with lack of adequate irrigation facilities and declining agricultural productivity lead to the reduction in agriculture production which implies low level of food availability. It also results in increased volatility in the food market. Besides, the region is popularly known for its low income and middle low-income status in the world.

SAARC member-countries are predominantly agriculture-based economies. All the SAARC countries derive their sustainability in member-countries are predominantly agriculture-based economic growth and development from agriculture to a large extent. SAARC, as per its mandate, seeks to facilitate cooperation and collaboration between its membercountries in 11 areas. These include agriculture, education, culture and sports; health, population and child welfare; the environment and meteorology; rural development; tourism; transport; science and technology; and communications. All the SAARC countries derive their sustainability in membercountries are predominantly agriculture-based economic growth and development from agriculture to a large extent.

It is accepted that India and other SAARC countries potentially offer natural markets for each other's export products. Close proximity could result in low transaction costs. Other factors that create advantageous position include scope for quicker delivery, similar agro-climatic conditions and food habits and common languages. In reality, however, the situation is not very conducive. It is observed that the region suffers from high trade cost because of various factors. These primarily include infrastructure bottlenecks and also non-trade-related issues.

Any decline or stagnancy in agriculture growth not only impacts growth in gross domestic product (GDP), but also reduces per capita income and thus increases poverty and food insecurity. Though it is observed that the contribution of the agriculture sector in GDP for all SAARC countries in the last decade has declined except for Nepal and the contribution of service and manufacturing sector has increased, this in no way negates importance of agriculture for these countries. This is because agriculture is not only a contributor to GDP but it also provides employment and livelihood to millions of people in the region. Another feature of the SAARC countries is that agriculture yield and production is found to be low as compared to the other

Seed Times Jan. - Mar. 2015

To address the issue of lack of cooperation, continuous efforts from the government of South Asian countries culminated in establishment of the South Asian Free Trade Area (SAFTA) agreement in January 2004 (at the 12th SAARC summit in Pakistan). The agreement virtually created a free trade area of 1.8 billion people. Under the agreement, it was agreed to reduce customs

Business Opportunities in Agri/Seed Segment in SAARC Countries

Introduction- Potential for Trade in Seeds between India and Other SAARC Countries

duties of all traded goods to zero by the year 2016. The SAFTA agreement came into force on 1 January 2006 and is operational following the ratification of the agreement by the member-countries.

and 1970s is clear evidence of this. Particularly in food grain production, India and other South Asian countries got a tremendous boost. The major achievement in wheat and also rice production was due to adoption of high-yielding varieties (HYV) of seeds by the farmers. In India, a similar development occurred during 2000s, when Bt cotton and hybrid maize seed showed spectacular results in the production of both the crops. The paper seeks to explore and understand the scope and potential for trade in agricultural seeds within the region with a focus on India. The selection of seeds as the focus for the paper stems from the fact that seed Potential for Trade in Seeds between India and Other SAARC Countries is one of the most important determinants of crop yields and thus food security in the region. The paper identifies nine important agricultural products (seeds) that are directly or indirectly related to food security and livelihood in the region. These include vegetable, fruit, oil, maize, wheat, rice, barley, grain sorghum and buckwheat seeds. This paper consists of five sections. Section two deals India's trade in seed and seed scenarios in India. Section three deals with India's trade in seed in SAARC countries. Section four presents the results and findings. Section five provides the conclusion.

As far as real development and cooperation between the SAARC member-countries is concerned, not much has changed despite establishment of SAARC and SAFTA. The region continues to remain one of the least integrated regions globally with less than 10 percent of total trade of the member-countries occurring within the group. This is obviously not because of lack of complementarity or lack of potential. Agriculture, including agricultural inputs, suffers from the same fate, despite looming threats to food security and climate change in the region. Many Indian states share a border with some of the countries of the SAARC countries like Bihar with Nepal, West Bengal with Bangladesh, and Jammu and Kashmir and Rajasthan with Pakistan, indicating potential to significantly enhance the level of peopleto-people contact within the region. Needless to say, seed is the basic input in the enhancement of agricultural production and productivity of different crops. The green revolution in India and other South Asian countries during the 1960s

From the Bookâ&#x20AC;? Potential for Trade in Seeds between India and Other SAARC Countriesâ&#x20AC;?. Reprinted with the kind permission from CUTS International.

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Production and Trade in Seeds Seed-related Initiatives - CUTS International

ndia constitutes the fifth largest seed market measured in value terms in the world. The share of Indian seed industry in the global seed production is 4.7 percent preceded by the US (28.1 percent), China (21.2 percent), France (8.4 percent), and Brazil (6.2 percent). In terms of overall demand-supply scenario, the Indian seed industry appears to be self sufficient in a number of seeds categories such as flower, fruits, vegetables and field crop. The future scenario also portends well.

Institutional Set-up and Trend in Seed Acreage In India, it is noted that the supply of breeder seed by Indian Council of Agricultural Research (ICAR) and state agricultural universities (SAUs) are available in sufficient quantity to meet the domestic demand of all breeder seed. There are, however, some issues with regard to multiplication of breeder seed to foundation and certified seed. It is often argued that the full potential is not realised. This might be due to inadequate follow- up of recommended policy on seed multiplication, leading to low seed replacement rate in the country. The SAARC report on seed (2009) shows that only 25 percent certified seed are distributed by the organised sector and rest of the remaining seed comes from the farmer- saved seed/unorganised sector.

According to an estimate done by the National Seed Associations of India (NSAI), the seed industry will grow at an average of about 11 percent till 2016. The growth would be primarily because of increase in demand and the need for increasing supplies of grain in the world. It is expected that grain productivity would gradually decline in many regions owing to low seed replacement rates and other factors. Such a scenario would call for initiatives to improve the seed replacement rate.

Despite some issues encountered, the seed sector in India has shown impressive progress over the last few decades. The area under certified seeds for all crops has increased from less than 500 hectares in 1962-63 to over 5 lakh hectares in 1999-2000. Even in the later years, impressive developments have occurred with regard to requirement and availability of quality seeds. The requirement and availability of certified/quality seed which was 110.83 and 132.27 lakh quintals in 2004-05 increased to 207.25 and 250.35 lakh quintals in 2008-09. In the four-year period, the increase in requirement and availability was by a whopping 1.87 and 1.89 times.

In addition, Indian seed policies and regulations are seemingly in favour of seed producer and exporter, and that might help the sector to grow in coming years. The industry is exempted from income tax, excise duty and value added tax (VAT). Besides, considering the importance of the sector, the government of India has allowed 100 percent foreign direct investment (FDI) in the development and production of seeds and planting materials.

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Production and Trade in Seeds

cereals, a function earlier dominated by the public sector.

Structure of Seed Industry The Indian seed system is run by the Central and State governments, ICAR, SAUs, the public sector, cooperative sector and private sector institutions. The seed sector in India consists of two national-level corporations, i.e. National Seeds Corporation (NSC) and State Farm Corporation of India (SFCI), 13 State Seed Corporations (SSCs) and about 100 major private sector seed companies (Figure 1).

Trend in Seed Production Table 1 shows that overall production of breeder and foundation seed and distribution of all inclusive certified seed in India from 2000-01 and 2010-11. The production of breeder and foundation seed during this period has increased three times. The compound annual growth rate (CAGR) for the production of breeder and foundation seeds works out to 12.08 percent and 12.84 percent respectively for the 10 year period covering 2000-01 to 2010-11. Production of certified seeds over the same periods has increased by over three times, registering a CAGR of 13.85 percent.

For quality control and certification, there are 20 State Seed Certification Agencies (SSCAs) and 100 State Seed Testing Laboratories (SSTLs). It is observed that over the last few years since the introduction of the New Seed Policy of 1988, the private sector has started to play a significant role in the production and distribution of seeds, particularly for food crops and

It is observed that the production of seed in India is

Figure 1: Mapping of Indian Seed Industry (Seed Supply Chain in India) ICAR Institute, SAU, etc

Li ing

Allotment for Production

Government of India Indent of Breeder Seed

Allocation for Production

Production of Breeder Seed

ICAR

Production of Breeder Seed

Allotment of Breeder Seed

Certiﬁed Seed Distribution

State Governments (SSC), NSC, SFCI, SAI etc

Farmers

Certiﬁed Seed Production Seed Multiplication Foundation Ratio (SMR) and seed seed Replacement Rate Production (SRR) undertaken by States

Distributors

Agencies Agencies

Foundation seed to Certiﬁed Seed

Agencies : NSC, SFCI, Private Co-oprative etc Distibutors : Co-operatives, NSC etc.

Source: http://seednet.gov.in/Material/Channels_of_Seed_Supply.htm

(20.91) followed by Madhya Pradesh (13.77), Tamil Nadu (10.75) in 2009-10 while in 2011-12, private sector supply is highest in Uttar Pradesh (27.89), followed by Andhra Pradesh (22.19), West Bengal (16.36), Maharashtra (15.76), Punjab (15.3) and Madhya Pradesh (14.21). Table 2 (page 9) shows the total demand-supply and supply by the private sector of certified/ quality seed in Indian major agricultureproducing states.

concentrated in a few states. For example, more than 90 percent of hybrid rice seed is produced in Andhra Pradesh. The major seed-producing states include Andhra Pradesh, Tamil Nadu, Haryana, Maharashtra, Odisha, West Bengal and Chhattisgarh. In all the major seed- producing states, the private sector has emerged as a major player. As indicated in the table, the contribution of private sector in seed supply is recorded highest in the Andhra Pradesh

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Production and Trade in Seeds

Table 1: Production of Breeder, Foundation and CertiďŹ ed Seed in India Year

Production of Breeder Seed (In thousand qtl)

Production of Foundation Seed (In lakh qtl)

Distribution of CertiďŹ ed/Quality Seed (In lakh qtl)

2000-01

42.69

5.91

86.27

2001-02

45.54

5.44

91.8

2002-03

48.42

6.14

98.03

2003-04

61.82

6.5

108.59

2004-05

66.46

6.9

120.26

2005-06

68.64

7.4

126.75

2006-07

73.83

7.96

155.01

2007-08

91.96

8.22

179.05

2008-09

94.41

9.69

215.81

2009-10

105

10.5

257.11

2010-11

119.21

17.53

277.34

Source: Indiastat.com, 2012-13

the highest seed replacement rate amongst all Indian states. At the aggregate level, it is observed that Andhra Pradesh has the largest area under crops and has also the largest supply of quality/certified seeds in fact, its total seed requirement is more than the total requirements of 15 states combined together.

Data also show that per hectare availability of quality/certified seeds is the highest in Andhra Pradesh, whereas it is the lowest in the state of Jharkhand. This might be indicative of higher varying seeds replacement rates across different states in India. It is well understood that Andhra Pradesh has

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Production and Trade in Seeds

Table 2: State-wise Total Demand and Supply of Quality/CertiďŹ ed Seeds in India (Quantity, in lakh quintals)

Total Supply

Total requirements

Supply by Private Sector

Total Supply

Total cropped area (lakh ha)

2010-11

Supply by Private Sector

2011-12

Total requirements

2010-11

Supply of quality/ certiďŹ ed seeds per hectare (quintal)

Andhra Pradesh

44.01

14.43

55.02

48.04

22.19

69.51

145.12

0.48

Bihar

13.13

6.61

13.68

15.8

8.95

17.06

41.60

0.41

Gujarat

8.11

6.56

9.2

13.76

10.82

14.14

122.47

0.12

Haryana

11.35

10.56

14.1

10.85

11.27

15.61

65.05

0.24

Jharkhand

3.39

2.78

5.25

5.65

1.01

12.49

0.08

Karnataka

11.04

4.32

15.3

11.6

5.11

13.48

130.62

0.10

Madhya Pradesh

23.52

17.47

31.08

29.16

14.21

33.12

220.46

0.15

Maharashtra

27.04

14.93

27.78

27.3

29.6

240.69

0.12

Odisha

6.86

7.64

8.35

6.24

54.29

0.11

Punjab

13.28

13.18

15.18

13.59

15.3

17.82

78.83

0.23

Rajasthan

18.42

9.62

19.25

20.42

12.04

24.99

260.02

0.10

Tamil Nadu

5.93

6.71

5.51

5.72

8.69

57.53

0.15

Uttar Pradesh

55.25

24.74

46.63

61.95

27.89

51.02

253.83

0.20

West Bengal

30.88

17.33

31.19

35.13

16.63

29.31

95.63

0.31

Other states*

18.86

6.66

20.06

23.3

7.07

22.01

194.93

0.11

States/UT

15.76

Source: Indiastat.com, 2012-13 Note: *indicates the combined value of Arunachal Pradesh, Assam, Chhattisgarh, Goa, Himachal Pradesh, Jammu and Kashmir, Kerala, Meghalaya, Manipur, Mizoram, Nagaland, Pondicherry, Sikkim, Tripura, Uttarakhand,

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Production and Trade in Seeds

increasing every year and availability is much higher than the requirement for each of the years. The figure also demonstrates that India has maintained seed surplus in all years.

Requirements & Availability of Seeds Figure 2 shows the trend in requirement and availability of seeds in India. Data shows that the requirement and availability of seeds in India is

Figure 2: Requirements and Availability of Seeds in India

From the Bookâ&#x20AC;? Potential for Trade in Seeds between India and Other SAARC Countriesâ&#x20AC;?. Reprinted with the kind permission from CUTS International.

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Seed Trade with Other SAARC Countries - CUTS International

percent in 2011, a clear indication of low level of cooperation in seed.

ow level of economic integration has its impact on low level of trade and cooperation. This is true for all the tradable products, but particularly for agricultural trade, including seeds. Seed trade in SAARC countries is very low compared to its potential and also when compared to trade with other countries outside the region. India's total export of selected nine seeds to the world and also the other SAARC countries may be grouped into three categories: food grains including maize, wheat, rice, barely; vegetables and fruits and fiber. A detailed analysis is presented in this section.

While the intra-regional cooperation is quite low, India has a dominant share when it comes to SAARC's overall trade in seeds. India, at present, accounts for almost three-fourths total seed export from the SAARC region. In comparison, its share in total import is less than 20 percent (Table 3). This export domination of India, however, shows a declining trend over the period 2001-11. Its share in seed export from the SAARC region in 2001 was as high as 100 percent in 2001. In comparison to export, its share in total import is less than 20 percent. This establishes the fact that while India's seed industry has fared relatively better compared to other SAARC countries; it has not been able to penetrate markets of other South Asian countries optimally.

Overall, India's seed trade with other SAARC constitutes less than three percent of its total seed trade. Similarly, intra-SAARC trade with India is also observed to be quite low accounting for less than two

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Seed Trade with Other SAARC Countries

Table 3: Trend in Indiaâ&#x20AC;&#x2122;s Seed Trade within and outside SAARC Region

in US$ thousand

Intra-SAARC seed trade with India (% of their total seed trade with the world)

198

1.51

1.05

2001-02

4,900

121,591

2.79

1.9

2002-03

11,731

193,703

307

47,489

3.87

2.48

2003-04

23,532

260,685

139

28,736

4.50

3.39

2004-05

13,254

210,736

111

17,779

3.65

2.02

2005-06

16,706

220,523

219

19,023

3.69

1.96

2006-07

27,790

405,337

369

129,146

3.06

2.3

2007-08

39,393

591,029

353

95,560

2.32

1.22

2008-09

31,294

332,309

5,132

93,447

3.46

2.23

2009-10

41,702

520,410

650

37,893

3.25

2.53

2010-11

52,443

661,474

508

727,197

2.60

1.57

Exports of seeds by SAARC Countries to ROW (excluding India)

162,321

Exports of seeds by SAARC Countries to India

3,087

Exports of seeds from India to ROW (excluding SAARC)

2000-01

Exports of seeds from India to SAARC

Indiaâ&#x20AC;&#x2122;s seed trade to SAARC (% of its total trade)

Year

in percent

Source: ITC Trade Map, 2012-13

compared to a CAGR of 16 percent in case of seed export to the world. Data on import of nine seeds by India from the world and other South Asian countries show a similar pattern. The share of South Asia in India's import of nine seeds works out at a little over one percent (1.12 percent to be precise) out of total imports valued at US$17mn in 2001. Notably, this low share of South Asia further declined to 0.47 percent out of total imports of these nine seeds valued at US$108mn in 2011. This implies that while India's import of the selected nine seeds from the world has increased more than six times, it has decreased from the SAARC countries.

Data shows that India's export of seeds to the other SAARC countries constituted less than two percent of total seeds export from India in 2001. Data relating to nine select seeds shows that South Asia accounted for 1.87 percent of total export of seeds from India valued at US$165mn in 2001. The share, however, increased to over 7.3 percent in 2011 out of total export from India (US$713mn), reflecting an increasing trend and deeper integration over the decade. It is also observed that while India's seed export to the world during 2001-11 increased by over four times, export to the South Asian countries increased by a whopping 17 times, realising a CAGR of 33 percent

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Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Seed Trade with Other SAARC Countries

vegetable seed (2011). It is also reflected that the net position of India has varied during the period 2001-11 in case of buckwheat and wheat seeds. Table 4 also reflects that the net export of vegetable seed from India has declined over the period 2001-2011. The gap between export and import of vegetable seed has widened by about four times. On the other hand, net export from India in case of fruits, oil9 and maize seed has increased five times. In other cases also, net export situation has significantly improved.

In other words, one can argue that while India was dependent on the world market for 98 percent of its imported seeds in 2001, in the later years this dependency has further increased to almost 100 percent in 2011. Table 4 shows the net export and import of India's seed trade with the world. Data reveal that while India is a net exporter of fruit, oil, wheat, rice, maize, grain sorghum and barley seed; it is a net importer of

Table 4: Indiaâ&#x20AC;&#x2122;s Status as Net Exporter of Seed* from the World (US$ Thousand)

India.s net position as seed exporter Types of seed

2001

2002

2003

2004

Vegetable Seed

-4,409

-7,463

-9,560

-8,893

Fruit Seed

2,783

10,372

3,162

3,070

Oil Seed

2005

2006

-13,208 -9,414

3,282

5,637

2007

2008

-8,743 -20,391

7,771

6,197

2009

2010

2011

-29,498 -26,290 -18,158

6,371

10,555

14628

145,695 92,537 143,637 176,079 171,514 171,924 311,985 439,055 220,138 424,078 568,376

Wheat Seed

31,952

12,546

5,859

-24,221

Rice Seed

463

1,450

1,069

2,882

5,264

1,980

5,842

13,368

17,297

3,665

7,797

8,860

66,787

12,198

11,746

15,896 75,187

28,172

19,865

16,924

Grain Sorghum Seed

1,834

862

764

2,181

1,430

4,308

5,905

14,608

5,971

Barley Seed

1,245

24,200 20,533

5,542

153

Buckwheat Seed

-8

-14

-89

-30

-101

-111

145

Maize Seed

Integrating India's net export position with the SAARC countries (including India) import position reveals an interesting scenario. Table 5 shows the SAARC seed import from the world for the last decade, 2001- 10. During this period, overall seed import in SAARC countries shows a fluctuating trend. However, when one compares seed import for 2001 to the 2010 period, it is observed that import of all nine seeds except wheat has increased. Total seed import of nine seeds in SAARC countries increased by over four times.

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-302

-69

At individual level, increase in import of rice seeds was the highest (1,000 times) followed by grain sorghum (474 times during 2002-10), barley seed (221 times), oil seed (19 times), buckwheat and maize seed (10 times), fruit seed (six times) and vegetable seed (five times). This implies that while India's net export position has improved, South Asian countries import has also increased, creating a complementarity between export from India and import by SAARC countries.

Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Seed Trade with Other SAARC Countries

Table 5: SAARC Seed Import from the World (US$ Thousand) Types of seed

SAARC countries position as seed importer 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Vegetable Seed

14,510

18,664

28,978

32,143

46,954

48,718

56,383

56,354

68,941

82,601

Fruit Seed

1,883

2,532

1,869

1,566

4,727

7,019

14,102

13,367

13,821

12,368

Oil Seed

3,577

19,636

37,750

36,352

38,486

49,065

54,621

70,096

92,061

69,264

Wheat Seed

72,042

16,500

12,410

42,141 148,548

159,084 73,125 1,275,612 254,005

65,006

803

2270

6,305

6,983

154,809 12,062

15,850

14,946

23,214

20,701

47,494

67,408

57,088

71,847

70,077

73,280

107,072

155,489

213,717

Grain Sorghum Seed

293

102

149

3,978

5,619

7,123

Barley Seed

101

110

136

1,409

3,999

499

1,132

2,051

1,996

Buckwheat Seed

451

478

1,210

616

1,361

878

1,443

3,580

9,292

4,947

Rice Seed Maize Seed

Total

113,196

106,223 152,013 176,640 32,030

493,751 285,664 1,547,041 616,225

480,236

Source: ITC Trade Map, 2012-13

54 percent), oil seed (from over 80 percent to about 72 percent).

India's growing importance as supplier of seeds is, however, not reflected by the penetration of Indian seeds in the other South Asian market (Table 6). The table presents India's share in SAARC total seed import (nine seeds) from world for the last 11 years.

Interestingly, data reveal that there is no import of HYV food grain seed from India to other SAARC countries. These include wheat, rice, maize, grain sorghum and barley.A clear revelation from the data is that while India is in a better position to serve import requirements of seeds of other South Asian countries, in practice there is not much development. This is reflected in negligible/ declining share of India in South Asian countries total import of seeds.

From the table, it emerges that India's share in SAARC import of vegetable, fruit, and oil seed has decreased over the one-decade period. The maximum percentage decline has been recorded in fruit seed (from over 96 percent to 22 percent) followed by vegetable (from over 89 percent to about

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India's Seed Trade with Other SAARC Countries

Table 6: India.s Share in SAARC Seed Import Types of seed

India.s Share in SAARC Seed Import (Figures in percent) 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

89.4

77.7

54.2

53.2

50.9

51.8

56.5

65.9

69.8

58.5

53.7

Fruit Seed

96.3

62.1

45.2

59.1

51.4

37.6

10.5

14.2

12.3

15.5

22.2

Oil seed

80.8

36.5

22.6

35.8

48.9

76.5

77.4

80.1

71.5

Wheat Seed

15.4

Rice Seed

Maize Seed

0.2

0.1

Grain Sorghum Seed Barley Seed

5.5

Buckwheat Seed

1.3

7.6

6.6

5.7

24.5

1.1

2.4

0.5

India.s share in SAARC total import (9 seeds)

Source: ITC Trade Map, 2012-13

However, in most of the cases, a fluctuating trend is observed. In one case (maize), it is also observed that India's share in SAARC total export to the world is continuously declining from 24.8 percent in 2001 to 1.5 percent in 2011. It implies that other SAARC countries, such as Bangladesh, have emerged bigger players over the last decade.

India's importance as a growing seed market is fully demonstrated by the share of India in SAARC total export (Table 7). India's percentage share in SAARC seed export to the world is over 94 percent in three seeds, namely vegetable, fruits and oil seeds. In case of rice seeds also, the share is quite high at over 72 percent.

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Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Seed Trade with Other SAARC Countries

Table 7: India’s Share in SAARC Seed Export Types of Seed

India’s Share in SAARC Seed Export (in perc ent) 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

99.9

100

93.3

92.2

95.9

94.4

96.5

99.0

98.4

97.4

97.9

Fruit Seed

100

99.9

90.9

95.0

97.5

98.5

99.6

97.4

88.9

94.4

97.3

Oil Seed

100

96.2

87.7

94.7

93.5

92.7

93.1

86.7

93.5

95.7

Wheat Seed

0.0

25.9

15.3

54.7

11.0

0.0

0.1

0.0

6.0

0.0

Rice Seed

0.0

9.0

53.7

12.9

29.0

61.9

26.0

33.2

99.5

72.5

Maize Seed

24.8

43.0

29.8

35.3

16.5

11.2

5.1

7.9

4.9

3.7

1.5

Grain Sorghum Seed

0.0

14.4

13.9

14.5

19.4

24.0

18.2

47.6

37.9

37.4

Barley Seed

0.0

5.2

71.8

31.4

17.9

28.5

31.6

80.0

1.9

0.4

Buckwheat Seed

0.0

0.2

0.3

0.0

0.1

0.3

0.0

0.6

India’s share in SAARC total export (9 seeds)

100

Source: ITC Trade Map, 2012-13

An Overview from India to Nepal is seemingly because of a combination of factors such as inadequate local infrastructure and similarities in agro-climatic condition.

Analysis of data for the 10-year period demonstrates that the overall export of seeds from India to other SAARC countries (Bangladesh, Pakistan, Nepal, Sri Lanka and Maldives) has increased by a whopping over 17 times from US$3mn to over US$52mn (Table 8).

Another important factor could be a good political relationship between the two countries. Bangladesh also recorded a less than 10 times increase in seed import from India. The lowest increase was recorded in case of Sri Lanka. In between years, a clear fluctuation is also observed.

Growth in exports at country levels is, however, not uniform. While seed export to Nepal has increased by over 57 times; export of seeds to Pakistan multiplied by 19 times. The exceptional increase in export of seed

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India's Seed Trade with Other SAARC Countries

Table 8: Trend in Export of Seeds from India to Other SAARC Countries Export of seeds from India to other SAARC countries (US$ Thousand) Region

2001

2002

World

165,408

SAARC

3,087

4,900

Bangladesh

594 (19.24)

249 (5.08)

Pakistan

2003

126,491 205,434

2004

2005

2006

2007

2008

2009

2010

2011

284,217 223,990 237,229 433,127

630,422 363,603 562,112 713,917

11,731

23,532

13,254

16,706

27,790

39,393

31,294

41,702

52,443

5,370 (45.78)

1,806 (7.67)

3,362 (25.37)

3,011 (18.02)

2,467 (8.88)

3,101 (7.87)

3,620 (11.57)

2,774 (6.65)

4,936 (9.41)

973 (31.52)

1513 1,484 (30.88) (12.65)

2,190 (9.31)

3,160 (23.84)

5,898 (35.3)

8,983 (32.32)

8,811 (22.37)

11,876 (37.95)

21,074 (50.53)

19,048 (36.32)

Nepal

360 (11.66)

1,968 3,353 (40.16) (28.58)

7,368 (31.31)

3,820 (28.82)

5,412 (32.4)

11,636 (41.87)

24,074 (61.11)

12,357 (39.49)

9,498 (22.78)

22,542 (42.98)

Sri Lanka

390 (12.63)

602 (12.29)

10,062 (42.76)

2,756 (20.79)

950 (5.69)

2,073 (7.46)

1,084 (2.75)

1,311 (4.19)

944 (2.26)

1,460 (2.78)

426 (3.63)

Source: ITC Trade map, 2012-13 Note: ďŹ gure in bracket shows the percentage value.

while seed import from the world increased by over six times, increase in import from the SAARC countries was only about 2.5 times, much lower compared to import from the world. It is also found that the share of India's import of seed from other SAARC countries has fluctuated over the years. Overall, the share of SAARC countries in India's total import of nine seeds has been below one percent except for two year 2003 (1.22 percent) and 2009 (4.23 percent). And mostly, the import of India's seed is from Pakistan.

A similar pattern is revealed in case of export of seeds from other SAARC countries to India in 2001-11). As indicated above, data reflect that the import of seeds by India from other South Asian countries is significantly low compared to import from the world (Table 9). The share works out to a little over one percent in 2001, and further lower at 0.47 percent in 2011. During the 10-year period, it is also observed that

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Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Seed Trade with Other SAARC Countries

Table 9: Trend in Import of Seeds by India from other SAARC Countries Import of seeds by India from other SAARC countries (US$ Thousand)

Region 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

World

17,674

23,248

25,085

31,085

42,569

76,490

75,625

SAARC

199

341

210

127

666

618

572

5,319

1,593

755

Bangladesh

0 (0)

1 (25)

0 (0)

16 (2.59)

0 (0.00)

41 (0.77)

0 (0.00)

175 (23.18)

Pakistan

198 (99.50)

3 (75.00)

279 (81.82)

92 (43.81)

21 (16.54)

25 (3.75)

0 (0.00)

282 (49.30)

4,988 (93.78)

527 (33.08)

244 (32.32)

Nepal

1 (0.50)

0 (0.00)

62 (18.18)

118 (56.19)

106 (83.46)

641 (96.25)

602 (97.41)

290 (50.70)

290 (5.45)

1,066 (66.92)

336 (44.50)

103,594 121,232 105,872 108,642

Source: ITC Trademap, 2012-13 Note: figure in bracket shows the percentage value.

Not much variation with respect to other SAARC countries share in India's total export and import are observed when the analysis is extended crop-wise. There is no consistency in trade for different seeds. However, SAARC countries share in India's overall export is found to be much higher than their share in India's overall import of seeds (Table 10).

in all the years except fruit and buckwheat seed whose share is 4.2 percent and 100 percent in 2011. The share of India's export to other SAARC countries from India has fluctuated in most seeds, except vegetable seed, in which it has increased from 12.3 percent in 2001 to 50 percent in 2011. Interestingly, the share of export of rice seed from India to other SAARC countries shows a declining trend.

It can be noted that the share of SAARC countries in India's total import of nine seeds is below one percent

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Business Opportunities in Agri/Seed Segment in SAARC Countries

Table 10: Share of Other SAARC Countries in India.s Import and Export of Seeds

India's Seed Trade with Other SAARC Countries

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Business Opportunities in Agri/Seed Segment in SAARC Countries

India's Seed Trade with Other SAARC Countries

Seed-related Sensitive List under SAFTA and Applied MFN Tariff

product lists of member-countries under SAFTA and also applied MFN tariffs. Under the revised sensitive list, even though members have significantly reduced their list of products, the number still is quite high as demonstrated by Table 11.

It is here important to note that intra-regional seed trade in SAARC is influenced by a number of factors. Seemingly, the most important of these are sensitive

Table 11: Negative List of SAARC Member Countries Member State

Number of Products in the earlier Sensitive Lists

Number of Products in the Revised Sensitive Lists (Phase-II) (eﬀective from 01 January 2012)

Afghanistan

1,072

Bangladesh

1,233 (LDCs), 1,241 (NLDCs)

987 (LDCs), 993 (NLDCs)

150

156

Bhutan India

Nepal

858

480 (LDCs), 868 (NLDCs)

25 (LDCs), 614 (NLDCs)

Maldives

681 154

1,257 (LDCs), 1295 (NLDCs)

Pakistan

1,169

Sri Lanka

1,042

998 (LDCs), 1,036 (NLDCs) 936 [845 (LDCs)], 906 (NLDCs)

Source: South Asian Association for Regional Cooperation http://saarc-sec.org/areaofcooperation/detail.php?activity_id=35

Besides, most of the member-countries apply MFN tariffs on import of certain seed products. This could be for the obvious reason of protecting one's domestic seed industry from external competition. A detailed list of MFN tariffs applied by member countries in SAARC is presented as Annexure 2.

Moreover, in most of the member-countries, a large number of seeds continue to be in the sensitive list. For example, while India has 19 different types of seeds in the sensitive list, Afghanistan has 15. A detailed list of seeds maintained by member countries in sensitive list is enumerated in Annexure 1.

From the Book” Potential for Trade in Seeds between India and Other SAARC Countries”. Reprinted with the kind permission from CUTS International.

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Business Opportunities in Agri/Seed Segment in SAARC Countries

Potential of Seed Trade and Revealed Comparative Advantage - CUTS International

trade intensity index is used to explain the flow of trade between two regions. In the present case, it is India and other SAARC countries. The process is reversed to understand flow of seed from other SAARC countries to India.

o assess the potentiality of seed trade between the SAARC member countries, and the positioning of different member countries, techniques of RCA and bilateral trade intensity index have been applied. RCA for India and other SAARC countries has been computed. A revealed comparative advantage is calculated to understand the relative advantage or disadvantage of a certain country in a certain class of goods or services as evidenced by trade flows.

Table 12 summarises the results obtained from the RCA analysis. The table establishes the fact that India has revealed comparative advantage in eight out of nine seed categories traded between India and other SAARC countries for the entire period 2001-11. The table reflects that there is big scope and opportunity for both India and other SAARC countries in seed. Both India and other SAARC countries stand to potentially gain from trade in these nine seeds.

Computation of revealed comparative advantage relies on bilateral trade intensity index, that has been computed for India on the one hand and other SAARC countries on the other. It might be noted that bilateral

Table 12: Trade Potentials between India and Other SAARC Countries by RCA Commodities

India

Vegetable Seed

Potential Exporter

Potential Importer

Fruit Seed

Potential Exporter

Potential Importer

Oil Seed

Potential Exporter

Potential Importer

Wheat Seed

Potential Exporter

Potential Importer

Rice Seed

Potential Exporter

Potential Importer

Maize Seed

Potential Exporter

Potential Importer

Grain Sorghum

Potential Exporter

Potential Importer

Barley Seed

Potential Exporter

Potential Importer

Buckwheat Seed

Potential Importer

Potential Exporter

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Other SAARC countries

Business Opportunities in Agri/Seed Segment in SAARC Countries

Potential of Seed Trade and Revealed Comparative Advantage

bound initiatives are required. Some of these include the following:

However, it is important to emphasise that there exists potential for bilateral and intra-regional trade between India and other SAARC countries. This is because while India has comparative advantage in some, other SAARC countries have advantages in others. This is, however, a dynamic situation and can change over time. Seed-wise revealed comparative advantage in seed trade between India and other SAARC countries is appended as annexures (see Annexure 3). Country-wise and seed-wise revealed comparative advantage of different SAARC countries is shown in Annexure 4.

Presently a clear understanding of seed market in the South Asian countries is missing. It is difficult of the countries in the region to design solutions, unless there is a proper assessment of what is available and what needs to be done. There is urgent need for understanding of market dynamics, demand-supply and gap; capacity of each county to meet seed requirement of domestic and regional market. These should also include proper assessment of challenges faced at the country level keeping regional perspective in view.

Conclusion & Policy Recommendations

Considering that seeds are living basic inputs for a sustainable agricultural growth, South Asian countries should come forward with initiatives such as identifying major varieties that could be adapted to other countries in the region.

From the analysis and results obtained above, one can conclude that India has fair potential to meet the import needs of the SAARC region. The scope of benefiting from the bilateral trade with SAARC region looks quite good. Greater opening of seed trade might help other member countries in SAARC to have better access to quality/certified seeds. These countries might also benefit from the efficiency which trade will bring in to their respective domestic markets. Considering the mutual benefits which could be ushered in as a result of seed trade, countries in South Asia need to join hands to avail existing potential and opportunities within the region and further to address challenges to food security and poverty reduction. The tasks at hand are challenging, considering the present low level of cooperation reinforced by trust deficit. To have a real breakthrough, some focused and time

Research institutions in one or more countries in the region should design a plan of action for engagements with similar institutions in other countries. Such engagements could be premised on what is required to not only ensure adequate seed production for the local market, but also to meet regional demand. The focus, obviously, should be on development and use of seeds. The SAARC Seed Bank is a noble initiative. Its objective could be embedded with focused and time bound activities and initiative to effectively address seedrelated challenges faced by the region

Reference Bangladesh Seed Grower, Dealer and Merchants Association (2007),

Cromwell, Elizabeth, Esbern Friis-hansen and Michael Turner (1992), The Seed Sector in Developing Countries: A Framework for Performance AnalysisĂŽ, ODI Working paper No. 65.

Bangladesh Seed Industry at a GlanceĂŽ, accessed on March 4, 2013, URL: www.apsaseed.org/docs/bc3147ea/

Murugkar, Milind, Bharat Ramaswami, Mahesh Shelar (2007),Competition and Monopoly in the Indian Cotton Seed Market,Economic and Political Weekly, Vol - XLII No. 37, September 15, 2007

Bangladesh_Seed_Industry_at_a_Glance.pdf. Cho, Renee (2013), Improving Seeds to Meet Future Challenges, available a http://blogs.ei.columbia.edu /2013/02/08/ improving-seeds-tomeet-future-challenges/

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Pray, Carl E. and Bharat Ramaswami (1991), A Framework for Seed Policy Analysis in Developing Countries. IFPRI: Washington, D.C.

Business Opportunities in Agri/Seed Segment in SAARC Countries

Potential of Seed Trade and Revealed Comparative Advantage

22 percent in 2011; and Sri Lanka from 20 percent in 2001 to about 13 percent in 2011

SAARC Agriculture Centre (2009), ìQuality Seed in SAARC Countries (2009), Production, Processing, Legal and Quality Control and Marketing. Ravi, S. Bala, (December 2009), ìThe Conflict between Seed Bill and PPVFR Act of India. Sikdar, Chandrima (2012), Prospects of Bilateral Trade between India and Bangladesh. Spielman, David J., Deepthi Kolady, Anthony Cavalieri, N. Chandrasekhara Rao, (IFPRI Discussion Paper 01103, July 2011), ìThe Seed and Agricultural Biotechnology Industries in India: An Analysis of Industry Structure, Competition, and Policy Options. Tripp, Robert, Ruifa Hu and Suresh Pal (2010), Rice Seed Provision and Evolution of Seed Markets, in Sushil Pandey, Derek Byerlee, David Dawe, Achim Dobermann, Samarendu Mohanty, Scott Rozelle, and Bill Hardy, Rice in the Global Economy: Strategic Research and Policy Issues for Food Security, IRRI: Manila.

IFPRI (2011), The Seed and Agricultural Biotechnology Industries in India: An Analysis of Industry Structure, Competition, and Policy Options, IFPRI Discussion Paper 01103, July 2011, available at: www.ifpri.org/sites/ default/files/ publications/ifpridp01103.pdf

It might be noted that Breeder seed is used for the production of foundation seed and certified seeds

The estimate of total seed requirement in India is based on state-level estimate of seed requirements presented at the Bi-annual (Kharif and Rabi) national-level conferences. Each of the states are invited and present their seed requirement for Kharif and Rabi cropping seasons

For details, see CUTS (2013), Dynamics of Rice Seeds Trade: Need for Cooperation between India and Bangladesh, available at: www.cutscitee.org/RISTE/pdf/Dynamics_of_Rice Seeds_TradeNeed_for_Cooperation_between_In dia_and_Bangladesh.pdf

End Note 1.

SAARC, established in 1985, consists of eight countries in South Asia namely Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. Afghanistan is a relatively new entrant, having joined the group in April 2007

7. Consumers and Economic Cooperation: Cost of Economic Non-cooperation to Consumers in South Asia, CUTS International, 2012, available at: www.cuts citee.org/pdf/Consumers_and_Economic_Coope rationCost_of_Economic_Noncooperation_to_Co nsumers_in_South_Asia.pdf

Afghanistan from over 45 percent in 2002 to less than 30 percent in 2010; Bangladesh from 24 percent in 2001 to a little over 18 percent in 2011; Bhutan from about 28 percent in 2001 to about 19 percent in 2009; India from 23 percent in 2001 to less than 18 percent in 2011; Maldives from about 10 percent in 2001 to about 3 percent in 2010; Pakistan from over 24 percent in 2001 to less than

Vegetable seed includes cabbage, cauliflower, onion, pea, radish, tomato, among others 9. Oil seed includes palm nuts and kernel, cotton, mustard, coaster, sesamum, safflower, melon, poppy, sea nuts.

From the Book” Potential for Trade in Seeds between India and Other SAARC Countries”. Reprinted with the kind permission from CUTS International.

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Seed Sector

Srilanka

Past achievement and Future direction of the seed sector in Sri Lanka

- D.J.L.Sunil Govinnage Director, Seed & Planting Material Development Center, Department of Agriculture, Sri Lanka

Evolution of the integrated seed sector

Introduction T h e i m p o r ta n ce o f a g r i c u l tu re i n e co n o m i c development in Sri Lanka has highly emphasized in the government manifesto â&#x20AC;&#x153; Mahinda Chintana Way Forwardâ&#x20AC;? recognized agriculture as basic sector for the economic development and seed sector has been given important place in agriculture development effort. Since it is one of the most effective means of increasing food security in the country is distributing quality seeds and planting materials of improved crop varieties. It increases the yield, improve the quality of the final product and lower the cost of production.

During colonial rule seed production of crops cultivated in Sri Lanka was looked after at divisional levels. The department of Agriculture (DOA) was inaugurated in 1912 by British rules. The botanist worked at Central Agriculture Research Institute was responsible for breeding and seed production of important food crops. An organized seed sector started by Department of Agriculture (DOA) with establishment of Paddy Seed Station in 1914. In 1926 there were 19 Paddy Seed Stations which covered the all the province of Sri Lanka. In addition to paddy Seed production, during the decade of 1930 the Department of Agriculture started to produce other Field Crop seed, vegetable seed and Planting material. The first rice variety developed through hybridization was released in 1957. This is considered as the beginning of formal seed sector in Sri Lanka. The DOA was the sole supplier of seed up to late 1980's. However, with increasing demand for quality seed, the government with the dawn of the decade 1990 took the initiative to invite the private sector in seed production and supply. Seed importation was liberalized and private sector was allowed to import seed from 1984. Seed industry in the country has now become a multiinstitutional function, in which both public and private sector is being actively involve. With more private sector involvement in local seed production, the government declared a National Seed Policy (NSP) in

The policies of seed and planting material sector include: promotion of supply of quality seed and planting material for economically important crops by public and private sector, increase of seed security by maintaining buffer seed stock, implementation of certification and quarantine regulations for seed and planting material and increase provision of quality seed and planting material to the market. Even though, currently majority of farmers in Sri Lanka use informal system to acquire the seeds, the most important one is the formal seed supply system which assured quality of the seed. Therefore this analysis based on those aspects of formal seed production system of DOA which include a wide range of activities from plant breeding, multiplication, certification and distribution.

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Past achievement and Future direction of the seed sector in Sri Lanka

production system which consists of two components. The basic seed production (Foundation & Registered) of DOA recommended varieties in 23 Government Seed Production Farms while certified/Standard seed production is in the hand of both public and private sector seed producers. The certified seed production of the DOA is mainly operated through a â&#x20AC;&#x153;Contract Growingâ&#x20AC;? scheme and also small amounts in government seed farms. Besides the production of Seed, DOA is involved in producing quality planting material of fruit crops. At present DOA seed production is mainly confined to open pollinated varieties. However, seed multiplication of few recommended hybrid varieties are also carried out by the SPMDC.

1996. The main trust of the NSP is to establish viable seed industry in Sri Lanka. Seed policy of 1996 is still operational without any amendments. The quality of the agriculture inputs results better outputs including quality and quantity. The high quality and availability of seed and planting material helps to maximize output of farmer and it will help to ensure food and nutritional security to the nation. Therefore, recently Minister of Agriculture has appointed a Seed Task Force (STF) consisting officers from public sector and private sector to make strategies to enhance the seed sector. The government aims to develop the seed sector in support of development of agriculture through the promotion of government and private sector involvement on seed production, implementation of national seed production programme and initiations of hybrid seed production.

Paddy: At present there are 28 recommended varieties included in seed production programme in ten government seed production farms. The average of basic seed and certified/quality assured production from 2003 to 2013 is around 2012 mt and 14391 mt it respectively. There is amounted to 2.5% and 15% of the total seed paddy requirement of the country. However about 20-25% of the total seed requirement should be supplied as certified/quality assured seed in order to obtain a significant increase in rice productivity.

Government enacted legislations for National Seed Act in 2003. A national seed council, the apex body is responsible for seed sector development, which has been formed with private sector representation.

Crop Improvements and Plant Breeding Genetic improvement has been the back bone of the increase in yields and production of crops. Varietal improvement programmes of Rice, Other Field Crops (Condiments, Oil Crops, Grain legumes and coarse grains) Roots and tuber crops, Vegetable and fruits are carried out by DOA. Rice breeding is handled by the Rice research and Development Institute (RRDI), where as breeding of OFC and, Tuber crops, vegetable and fruits handled by the Field Crop Research and Development Institute (FCRDI) , Horticulture Research and Development Institute (HORDI) and Fruit Research and Development Institute (FRDI) of the DOA respectively. Considering the future demand and changing economic and social environment, basic objectives of food crop breeding programme are to increase in variety yield potential, adaptability and stability over seasons and environments. Quality improvements and maximizing inputs use efficiency and minimizing the use of agrochemicals are also objectives of the breeding programme.

Other Field Crops: DOA has been handling an organized seed production of 34 varieties of nine other OFCs (Black gram, Green gram, Cowpea, Soybean, Ground nut, Sesame, Finger millet, Chilli, and Maize) Except chilli and Maize all other field crops seed production and supply (both basic and certified) handled by the public sector since private sector seed producer are not interested in handling seed production of OFC seed and that could be mainly due to erratic demand and low profitability. During year 2013, SPMDC supplied 566mt of OFC seed which equals to 10% of total OFC seed requirement of the country. Vegetable: The total requirement of exotic varieties of vegetable seed is imported and distributed by private sector. However basic seed belonging to 18 crops comprising 53 varieties recommended by the DOA are produced in seven government seed farms. A number of private seed companies are involved in producing standard seeds from basic seed supplied by the DOA. Fair amount of standard are also produced by the DOA farms and under contract growing programme. The average amount of seed supplied by SPMDC from 2006

Seed Production Seed and Planting Material Development Center (SPMDC) of DOA carried out the formal seed

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Past achievement and Future direction of the seed sector in Sri Lanka

recommendations. Quality of seed is further ensured by adopting quality standard to breeder, foundation, registered and certified seed of all kind of food crops by following field and laboratory test under the provisions of the Seed Act No 20 of 2003. Field level standards are maintained by 20 Seed Certification Regional units and 4 seed testing laboratories.

to 2010 is around 21.1 mt. which is equals to 3.8% of total vegetable seed requirement of the country and the highest seed supply percentage were recorded of Tomato, Snake gourd, and capsicum as 20%,10% and 10% respectively.

Potato: The DOA produces basic seed locally by using tissue culture techniques from year 1998. Under this programme five major stages involved such as Invitro plantlets production in tissue culture laboratory , Rapid multiplication of plantlets in net house, pre basic (GO) tuber production in polytunnels, Multiplication of pre basic seed in open field to produce basic (G1,G2,G3) and production of certified(C,C2) seed. In this programme varieties (Desiree & Granola) of Seed potato productions are implemented in five government seed potato farm in the Nuwara Eliya district. Total seed production in 2013 was recorded as 472 mt while seed issuing was recorded as 247 mt which equals to 2.6% of total seed requirements.

Seed Distribution DOA Seeds are distributed basically under two streams. One is directly through DOA sales outlet operated by 14 DDA (SPMDC) Regional units. The other stream is through the registered dealer net work known as â&#x20AC;&#x153;Lak Krushi â&#x20AC;&#x153; Seed Dealers. Regional DDA (seeds) are guided by the Regional seed committees of DDA regions and the Director, SPMDC on the distribution of basic seed among the seed producers.

Conclusion After studying all aspects of seed production at DOA and the country, it is needed to further develop the public sector formal seed production system for the overall improvement of seed industry of the country. For that it is needed to develop local competitive hybrid, an accurate database and information management system of all the seed activities in the country, increase the capacity efficiency of human and physical resources of seed sector by giving proper training and improving infrastructural facilities at the government seed farm and strengthening the seed distribution net work to ensure the seed availability at real time to farmers at affordable price.

Planting Materials: DOA farms are also involved in the production of high quality planting materials of 28 fruit crops comprising 72 varieties. Average annual planting material production and issuing during 2011 to 2013 were 846,509 and 580467 respectively.

Seed Certification A fully fledged Seed Certification Service (SCS) came in to existence in 1979. SCS of DOA ensure the quality of seed and planting materials developed by respective breeders subjecting those materials to Distinctness, Uniformity and Stability (DUS) test before making

Printed with the kind permission of author

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Seed Industry in

Pakistan

The Seed Industry in Pakistan Regulation, Politics and Entrepreneurship

- Dr. Muhammad Ahsan Rana

INTRODUCTION

eed provision in Pakistan is characterized by tensions between archaic regulation and entrepreneurs in a growing market. All key aspects of the systemâ&#x20AC;&#x201D;licensing of seed producers, variety release procedures, access to public germplasm, quality control, intellectual property rights (IPRs), import and exportâ&#x20AC;&#x201D;are governed by laws and rules framed several decades ago for a system dominated by public-sector enterprises. The failure of this governance framework to evolve along with growth of the private seed business since the early 1980s has rendered much of it obsolete, redundant, and irrelevant. The tension between the imperatives of complying with the law and doing business in an increasingly competitive market has occasion-ally pushed most actors, including public-sector enterprises, to the informal sector,1 at least for part of their business.

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Reform of such archaic governance framework is long overdue. Local and international seed providers, research insti-tutes, development agencies, and government departments have been calling for a more enabling regime that facilitates market-led transactions of seed and its associated knowledge between providers and growers. However, these calls have so far not been strong enough to overcome official inertia and resistance from actors who benefit from a continuation of the ex-isting framework. Therefore, any meaningful reform effort must involve identification of key actors, their interests, and how they are served or affected by existing and proposed legal and institutional arrangements. Unfortunately, seed provision is an under-researched area, and muchneeded systemic documentation and analysis have not been carried out in the recent past to inform the reform process.

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

As the sector's principal regulator, FSC&RD is supposed to maintain up-to-date records on variety releases; operations of seed providers; and seed requirements, certification, import, and export. However, significant gaps in FSC&RD's data, especially for the past 3–4 years, along with the complete absence of the informal sector from its records, have resulted in similar gaps in academic papers and reports, which rely principally on FSC&RD data.

This paper is an effort to fill this gap. It critically examines the legislative and institutional framework that governs seed provision in Pakistan, underscoring the need for policy reform in key areas of variety release procedures, IPRs, and quality control. The paper also systematically documents the current state of seed provision for various major and minor crops. It provides up-to-date data—in so far as these are a va i l a b l e i n t h e p u b l i c d o m a i n — o n va r i et y development, seed requirement, production, and sale for various crops; identifies various actors in the public and private sectors; and examines their political and economic interests in continuing or changing the existing system.

Rigorous policy work in the seed sector is scarce, as this area has not attracted much academic interest in Pakistan. Most of the recent work focuses on specific aspects, such as the spread of Bacillus thuringiensis (Bt) cotton2 (e.g., Ali et al. 2007), rather than on the governance framework that enables or impedes this spread, or it focuses on a particular crop (e.g., Rana et al. 2013) instead of examining the seed sector holistically. Nevertheless, these papers and industry reports provide useful insights into specific aspects of seed provision. Articles and reports about seed provision in other developing countries are also useful, as they explain how regulatory frameworks have evolved in these countries.

This paper is divided into seven sections. Section 2 identifies data sources for this study. Section 3 provides a brief his-tory of the development of seed business in Pakistan to provide context for subsequent discussion. Section 4 overviews seed sector laws and rules, describes the existing institutional infrastructure to regulate seed provision, describes variety approval and seed certification procedures, and identifies gaps in those procedures that constrain the private sector. Section 5 identifies key actors in the sector, explores their respective interests in and capacity to influence potential reform, and briefly discusses important professional networks to identify resources that these actors can deploy to pursue their interests. Section 6 discusses recent efforts to reform the legal framework, which it contends have so far been unsuccessful, largely because the proposed legislation merely extends regulatory oversight over the working of the private sector without offering anything in return. In conclusion, section 7 observes that the boundary between the formal and the informal is more blurred in Pakistan than is often recognized.

The third source—officials from the seed corporations, the federal Ministry of Food Security and Research, provincial agriculture departments, seed companies, and farmers—is a particularly valuable source for understanding the nuances of the political economy of seed sector regulation in Pakistan. However, only a few interviews with these key informants were possible, as time and resource constraints did not allow a wider and deeper engagement with a representative stakeholder sample.

Development of the Seed Industry The Pakistani seed industry has passed through four different phases. The first phase—1947 to late 1950s—was character-ized by small-scale research and development (R&D) in the public sector and a continuation of the colonial focus on a few major crops in the rich alluvial plains of Pakistan's two agricultural provinces, Punjab and Sindh. The second phase—late 1950s to mid 1970s—was characterised by state-led development of an elaborate network of agricultural research institutes, extension departments and procurement and supplies agencies in the public sector. The third phase—mid 1970s to mid 1990s—was the period of legal and institutional development. The

Data Sources This paper uses data from the following three sources: (1) the Federal Seed Certification and Registration Department (FSC&RD), (2) academic papers and industry reports, and (3) key informants. There is no tradition of independent industry surveys, such as those conducted regularly by Francis Kanoi in India (e.g. Francis Kanoi 2013). In the absence of such surveys, FSC&RD remains the only source of quantitative data on the seed industry in Pakistan.

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sciences, and agricultural economics. AARI upgraded existing stations and sections, and established several new sections that carried out research on new varieties and farming practices. And WPADC established seed farms and developed a system of seed certification.

fourth phase – mid 1990s to date – has seen rapid growth of the private sector and a gradual shift of several seed supply functions to seed companies and other actors in formal and informal markets. A brief discussion of each phase follows.

Phase 1

When the Norman Borlaug's Institute for International Agriculture in Mexico and the International Rice Research Institute in the Philippines developed improved varieties of wheat and rice, AARI and WPADC provided a convenient conduit for transmitting these new varieties and allied technologies to farmers in Pakistan. Therefore, they can rightfully claim some credit for the transformation initiated by the Green Revolution.

Upon its independence in 1947, Pakistan inherited only one institute for agricultural research and education—the Punjab Agricultural College and Research Institute, Lyallpur3 (Sarwar 2007). Among the Institute's several crop-specific stations and sections for R&D activities, the most prominent were the Cereal Station, the Rice Farm at Kala Shah Kaku, the Vegetable Research Section, and the Sugarcane Research Station, which bred new planting material for cultivation in the province.

The establishment of AARI and WPADC, however, resulted in an inadequate arrangement for seed provision, for three reasons. First, they operated in a legal vacuum, as the procedures and protocols of variety approval were yet to be devel-oped. Second, having started from a low baseline, it took them several years to scale up operations and even then they were able to serve only a small proportion of farmers in Pakistan. Their focus for most part was limited to irrigated areas in Punjab and Sindh to the exclusion of other provinces that now comprise Pakistan. Third, capacity constraints – mainly shortage of skilled manpower – forced these organisations to concentrate their R&D on a few major crops. AARI continued to grow in the third and the fourth phase, but WPADC was wound up in 1972 after dissolution of West Pakistan as a single administrative unit. The function of seed production and marketing was assigned to provincial organizations, namely, the Punjab Agricultural Development and Supplies Corporation and the Sindh Agricultural Supplies Organisation. Balochistan and Khyber Pakhtunkhwa (KPK) continued to rely on seed produced by Punjaband Sindh-based organizations and on farmers' seed saving.

Since there was no formal system of variety approval and registration, these varieties were simply handed over by breeders to the provincial agricultural department. The department had established a Seed Wing in 1929 to produce seed on government farms and to distribute the seed through its officials. While seed certification was not an entirely unknown concept, it could not formally be put into operation in the absence of an appropriate legal and institutional infrastructure. Overall, these public-sector stations and sections played a small role in seed provision, and farmers remained dependent mostly on their own seed production (Ali and Ali 2004).

Phase 2 Economic development in the 1950s necessitated the establishment of more elaborate arrangements for agricultural re-search and seed production. In 1961, the government took two major initiatives. One was the bifurcation of the Lyallpur College and Institute into an Agricultural University at Lyallpur and the Ayub Agricultural Research Institute (AARI), and the other was the establishment of the West Pakistan Agricultural Development Corporation (WPADC). These organizations grew quickly and emerged as dedicated institutional hubs for agricultural research and teaching, variety development, and seed production, respectively. Given the nature of these activities, overlaps were inevitable. The University at Lyallpur started academic programs in multiple disciplines, including plant breeding, veterinary

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Another important development of the 1960s was the promulgation of Pakistan's first seed law—the West Pakistan Seeds and Fruit Plants Ordinance, 1965. The Ordinance was a very basic instrument that provided for the registration of growers for production of certified seeds and establishment of nurseries. Registered growers could voluntarily apply for certification. Certified seed was to be sold to the

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

pre-basic seed, and basic seed; seed testing; and certification. Such exclusive focus reflected broader economic policy, which pursued broad-spectrum nationalization in the 1970s. Several projects carried out in the 1980s to strengthen the public sector involved establishing seed production farms, setting up seed-testing laboratories, installing seed processing plants, and training seed technologists.

government, while only leftover certified seed could be sold in the open market. The Ordinance did not prohibit production of uncertified seed (other than the seed of fruit plants), which meant that seed pro-ducers could develop seed for the market, but had to register with the government and to maintain standards if they wished to have their seeds certified.

Phase 3

Phase 4

The third phase started in 1973 when the Pakistan government sought help from the World Bank to review its seed provision system and formulate recommendations for comprehensive reform (Salam 2012; Ahmad and Nagy 1999). This was the beginning of Pakistan's first large-scale seed industry project under which wide-ranging legal and institutional reforms were undertaken to improve seed provision to farmers.

Changes in macroeconomic policy in the 1980s led FSC&RD to proactively seek the private sector's induction into the seed business. This was the beginning of the fourth phase in the seed industry's development. The first seed company was formally registered in 1981. Another eight seed companies—all based in Punjab—launched their business in the next few years (Sarwar 2007).

The most salient feature of this project was the enactment of the Seed Act, 1976, which specified procedures for variety registration and seed certification. The Act also created elaborate institutional infrastructure for its implementation, which included the National Seed Council, provincial seed councils, and two separate agencies (under the federal Ministry of Agri-culture) for variety registration and seed certification. These agencies were merged in 1998 to constitute the FSC&RD as it stands today. The mandate of Punjab and Sindh corporations for agricultural supplies was redefined, and these were converted into Punjab and Sindh Seed Corporations, respectively. In KPK, an Agriculture Development Authority was established, which was mandated to produce seed for local consumption. In Balochistan, no separate institutional arrangements were made, and the provincial agriculture department continued to provide seed on a limited scale.

The pace picked up in the 1990s. In 1994, the seed business was formally categorized as an industry (Ali and Ali 2004) and was granted privileges associated with that designation. By 2000, 291 private seed companies had registered with FSC&RD (Ali and Ali 2004). Sindh, KPK, and Balochistan had their first seed companies in 1996, 1996, and 1998, respectively. Four multinational corporations (MNCs) also established their Pakistan affiliates during the 1980s and 1990s: Mon-santo (1984), Pioneer Seeds (1989), Syngenta (1991), and ICI Pakistan (1998). The number of seed companies continued to grow during the last decade, and by 2012, 963 companies had registered with FSC&RD (Figure 3.1). Initially, Pakistani seed companies were limited to multiplication of basic seed obtained from seed corporations. Very quickly, however, they established their own variety development programs and were able to bring a number of new crop varieties in the market during the last decade. As their operations grew, they started to displace public-sector corporations from the market. Several companies also started to import and export planting material. Gradually, they became the lead provider in several crops—cotton, vegetables, oilseeds, maize, and fodders. The leadership of the Pakistani seed industry had quietly shifted to the private sector.

A characteristic feature of this phase was the leadership of public-sector organizations and the marginal role of the private sector. The Seed Act did not provide for the registration of private seed companies. The only role it assigned to the private sector was seed multiplication on farmers' fields. The Act assigned all other functions in the seed development chain to the public sector—variety development; production of breeder nucleus seed,

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Figure 3.1â&#x20AC;&#x201D; Registration of seed companies (1981 â&#x20AC;&#x201C; 2012) 2011-12

103

2006-10

312

2001-05

257

1996-00

229

1991-95

Before 1991

Registered seed companies

6 0

100

150

200

250

300

350

Source: Author's compilation from FSC&RD data.

of provincial seed councils. It leaves it to the federal government to assign functions in consultation with the provincial governments.

Legal and Institutional Framework The Seed Act, 1976 and rules developed under the Act provide the framework for the operation of Pakistan's seed industry. The Biosafety Rules and Guidelines of 2005 are another important component of the seed sector legal framework. Their salient features are examined below.

The Seed Act authorizes the federal government to prescribe seed quality standards (germination, purity, etc.) and the information to be printed on a label, along with the varieties it has approved for production in a province. The Act prohibits the sale, offer for sale, holding in stock, etc., of seed of a notified variety, unless it conforms to seed quality standards and bears a label describing the required information. Such restrictions apply only to seed of notified varieties. The Act allows a person intending to produce seed of a notified variety to have the seed certified by FSC&RD, but stops short of mandatory certification.

Seed Act, 1976 The Seed Act's objective is "controlling and regulating the quality of seeds." To achieve this objective, the Act establishes a set of institutions, specifies procedures for registering new varieties and producing seed, specifies breaches of the laws, and specifies penalties for committing them. The Act creates three institutions: (1) the National Seed Council, (2) provincial seed councils, and (3) FSC&RD. Chaired by the federal Minister of Agriculture, the National Seed Council is required to perform a range of regulatory and advisory functions. These include specifying seed standards, regulating the interprovincial movement of seed, guiding the administration of seed quality standards, advising the government in general on seed policy, and ensuring and protecting investment in the seed industry. The Act does not pursue the private investment function in subsequent sections, nor does it specify the functions

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FSC&RD has been assigned two functions: (1) registration of new varieties and (2) certification of seed. As the secretariat of the National Seed Council, FSC&RD is required to support the Council in discharging its functions. Broadly, FSC&RD is mandated to perform the following five types of roles: 1.

Conduct preregistration checking of varieties for assessing their eligibility for registration (i.e., meeting distinctive-ness, uniformity, and stability (DUS) standards) and for meeting seed quality standards

Business Opportunities in Agri/Seed Segment in SAARC Countries

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Maintain a register of notified varieties containing information on their botanical description

with a fine or with imprisonment for up to 6 months, or both.

Control seed quality based on inspections during the seed production stage

Build the capacity of seed technologists

The Act assigns no role to private seed companies, and does not provide for their registration or regulation (Box 1). The only role assigned to the private sector is seed multiplication, for which FSC&RD is required to register seed growers. The Act applies certain restrictions to the sale, etc., of notified seed varieties, but none to the production, storage, or sale of varieties not notified (i.e., either rejected or not presented for registration). There is no provision to ban a variety on any grounds or to prohibit its cultivation. Further, variety registration with FSC&RD does not confer any right upon the breeder. The Act also does not restrict or regulate farmer seed saving or non-commercial exchange of seed of notified or other varieties.

The Act allows the federal government to appoint seed analysts, seed certification officers, and seed inspectors, and specifies their powers and the process to be followed in discharging various functions. Violating any provision of the Act or preventing a duly appointed person from performing his or her functions is declared an offense punishable with a fine not exceeding Rs 1,000. Repeat offenses may be punished Box 1: Registration of seed companies

The 1976 Seed Act is silent on registration of seed companies. However, in its December 31, 1979, meeting, the federal government's Economic Coordination Committee constituted an Inter-ministerial Working Group to register or deregister new seed companies (Hussain 2011). Chaired by the Agriculture Development Commissioner of the federal Ministry of Food Security, the Group includes the Director General of FSC&RD, secretaries of provincial agriculture departments, Managing Directors of the Punjab and Sindh Seed Corporations, and a representative of the Planning Commission of Pakistan. Since the Working Group is not a statutory body, it may not create a new organization. Thus, seed companies are established under other instruments (e.g., the Companies Ordinance, 1984), and then must apply to the Working Group for registration, and attach a detailed feasibility statement of their proposed seed business. The legality of requiring already registered companies to register again with the Working Group is questionable. Also, the double registration and the feasibility statement impose a restriction on seed business operations, as a duly registered company may normally carry out the business for which it was originally registered.

government without recourse to the Parliament (or the p r o v i n c i a l A s s e m b l y ) . T h e y e l a b o ra t e a n d explainâ&#x20AC;&#x201D;rather than add to or contradictâ&#x20AC;&#x201D;the parent 1976 Seed Act.

Rules developed under the Seed Act, 1976 Three sets of rules have been framed to implement the Seed Act: (1) Seed (Registration) Rules, 1987; (2) Seeds (Truth-in-Labelling) Rules, 1991; and (3) Pakistan Fruit Plants Certification Rules, 1998. Each is briefly discussed below.

Rule 7 of the Seed (Registration) Rules of 1987 requires a new variety to be both (1) superior to existing varieties in at least one important aspect, and (2) at least satisfactory in other major characteristics. Rule 9 specifies the effects of non-registration of a variety, and prohibits any seed of an unregistered variety included in a Schedule to the Rules from being produced or certified in Pakistan, unless the variety is validly registered with FSC&RD. This is unusual because such rules are meant to be subordinate legislation carried out by the government without

The Seed (Registration) Rules of 1987 establish a Federal Seed Registration Committee to be chaired by the Secretary of the Ministry of Agriculture and comprised of various high-level officials from publicsector research organizations. The Rules require the Committee to evaluate candidate varieties for compliance with variety registration standards. These rules are subordinate legislation carried out by the

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or private institutes undertaking manipulation of living organisms at the molecular level.

recourse to the Parliament (or a provincial assembly). They are meant to elaborate and explain, rather than add to or contradict the parent legislation. But by prohibiting production of seed of unregistered varieties, Rule 9 is effectively an unlegislated addition to the Seed Act which is silent on the production of seed of unregistered varieties.

Accordingly, all major research institutes and leading seed companies have established IBCs to oversee biosafety aspects of their R&D programs. These IBCs comprise the institutes' head, a subject matter expert, a social scientist, and a representative of the public. IBCs are the first point of biosafety regulation and perform a range of functions. Their assessment reports a re fo r wa rd e d to t h e TAC a l o n g w i t h t h e i r recommendations.

Read alone (which was definitely the case between 1976 and 1987), the Act indicates that if a breeder wants to register his variety with FSC&RD, he may apply in the prescribed form and the variety will be registered if it meets the criteria. Once the variety has been notified, he may seek certification of its seed. But both are optional for the breeder. If he does not seek registration of his variety, he may market it at his own risk and cost. Read with the Seed (Registration) Rules, 1987, the Seed Act indicates that if a breeder does not register his variety or his application fails, seed of such variety cannot be produced.

TAC is chaired by the Director General of the Environmental Protection Authority and comprises 12 officials and 2 members of the public. Its role is to evaluate IBC applications and IBC assessment reports, monitor field activities, and collect data that may be required for biosafety purposes. Its recommendations are submitted to the NBC, which is the highest forum for biosafety regulation.

The Seeds (Truth-in-Labelling) Rules of 1991 deal with labelling seed packets and containers. These rules require all seed offered for sale in Pakistan or for export to carry a label to be affixed prominently on the packet or container showing basic information about the seed, such as the names of the variety and producer and its purity percentage, germination percentage, production month, expiration date, and packet weight. Similar information is also required for imported seed.

NBC comprises 12 officials representing various ministries and research organizations. Its functions include granting or refusing approvals for the import, export, trial, and commercial release of cultivated varieties. So far, NBC has only approved commercial release of Bt cotton, although it has allowed limited trials for a range of genetically modified (GM) crops, including drought-tolerant wheat and herbicidetolerant and insect-resistant maize.

Key Actors in the Seed Provision System

The Pakistan Fruit Plants Certification Rules of 1998 specify procedures for registering plant nurseries, certifying fruit plants, and tagging certified rootstock.

This section critically examines the role of key actors in seed provision. It discusses both formal and informal sector actors, as the latter farmers and private/public seed enterprises operating without legal sanction are as much a part of the seed industry as the former. Such a broad construction is necessitated by large scale, informal sector operations in a loosely regulated system.

2005 Biosafety Rules and Guidelines The Pakistan Biosafety Rules and National Biosafety Guidelines of 2005 are other important components of the seed sector legal framework. Framed under the Pakistan Environment Protection Act, 1997, these rules regulate various aspects of the import, export, manufacture, trial, and sale of genetically modified organisms (GMOs). They prohibit the import, export, sale, purchase, or trade of GMOs and their products without obtaining a license from the federal government. They also provide for the establishment of three committeesâ&#x20AC;&#x201D;a National Biosafety Committee (NBC) and a Technical Advisory Committee (TAC) at the federal level as part of the Ministry of Environment and an Institutional Biosafety Committee (IBC) at all public

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Public sector research organizations Pakistan has one of the larger agricultural research systems among developing countries, with an estimated 3,513 full-time-equivalent researchers (Flaherty et al. 2012). Most of these researchers are employed in public sector research organizations, which play an important role in several seed sector activities, such as maintaining germplasm, importing exotic material from international research institutes

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The Seed Industry in Pakistan

Box 2: The 18th Constitutional Amendment and devolution of functions Under the 1973 Constitution of Pakistan, agriculture is a provincial subject, with provincial governments responsible for establishing the parameters of conducting seed business within their jurisdictions. However, in 1976, Pakistan prevailed upon its provincial governments to delegate their legislative powers to the federal government in the interest of legislative harmony. As a result, the 1976 Seed Act was enacted, and FSC&RD was created. When several federal functions and powers were decentralized to provinces in 2010 through the 18th Amendment to the Constitution, this issue of re-delegation of powers resurfaced. The federal government dissolved the Ministry of Food and Agriculture, so that its functions could be transferred back to the provinces. However, the federal bureaucracy was able to make a successful case for re-creating the dissolved Ministry into the new Ministry of National Food Security and Research (MNFS&R) (Rana 2013). FSC&RD, whose responsibilities were initially expected to be delegated to provinces, was first assigned to the Ministry of Science and Technology and later to the MNFS&R in 2011. Similarly, the Ministry of Environment was dissolved, only to be quickly replaced by the Ministry of Climate Change. The transfer of the environment function to provincial governments has resulted in widespread confusion regarding jurisdiction for administering biosafety rules.

Committee (PCCC) is the federal government's dedicated organization for research on cotton, and has developed several popular cotton varieties. PCCC is funded by federal grants and a small cess on the textile industry under the Cotton Cess Act of 1923. Formerly administered by the Ministry of Textile Industry, in 2012, the PCCC's management control was transferred to the All Pakistan Textile Mills' Association, which has nominated one of its leading members as PCCC's Vicepresident and Chief Executive Officer. The Central Cotton Research Institute (CCRI) is the leading Pakistani organization for cotton R&D, and falls under the control of the PCCC.

for local adoption, developing varieties, and training workers for the seed industry. Three sets of institutes and universities are important: federal institutes, provincial government institutes, and agricultural universities.

Federal Institutes The most prominent federal institutes are the Pakistan Agricultural Research Council (PARC), Pakistan Central Cotton Com-mittee (PCCC), and agricultural research institutes of the Pakistan Atomic Energy Commission (PAEC). We briefly discuss each below. Established in 1981, the Pakistan Agricultural Research Council (PARC) is the federal government's leading research outfit with a diverse portfolio. PARC carries out R&D for all crops, except cotton. It manages the National Agricultural Research Centre and nine areaand crop-specific research centers and institutes. Research is organized under four divisions: Plant Sciences Division, Animal Sciences Division, Natural Resources Division and Social Sciences Division. Scientific and technical staff members in these divisions conduct traditional breeding and agronomic research, as well as modern genomic and biotechnology research. PARC also runs an institute for preservation of plant genetic resources, which holds in its gene bank more than 27,000 accessions of different crop species (PARC 2013).

The Pakistan Atomic Energy Commission (PAEC) also runs several research institutes that carry out important seed sector activities. Most notable are the National Institute of Biotechnology and Genetic Engineering (NIBGE) and the Nuclear Institute of Agricultural Biology (both located in Faisalabad). These institutes use modern techniques and tools in agricultural biotechnology to support the breeding of new plant varieties. NIBGE has successfully developed GM varieties of cotton and is actively pursuing development of GM varieties of other crops (including drought-tolerant wheat).

Provincial Government Institutes The largest provincial government institute is the Punjab government's AARI in Faisalabad. AARI has several crop-specific research institutes and stations

Established in 1948, the Pakistan Central Cotton

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Figure 5.1â&#x20AC;&#x201D;Shares in variety release

throughout the province, which develop new crop varieties, find novel and effective ways of countering pests and pathogens, and suggest appropriate farming practices to boost production and reduce costs. There is extensive overlap and duplication among the federal and provincial variety development programs. Perhaps the most obvious case is PCCC's CCRI, which is located in Multan, a large agricultural district in South Punjab. CCRI has elaborate plant-breeding facilities, and has developed several popular cotton varieties. Situated across the road from CCRI is AARI's premier Cotton Research Station, which pursues the same mandate and has similar facilities. Yet the two institutes exist as separate entities and rarely communicate.

Agricultural Universities Five major agricultural universities in Pakistan carry out research leading to variety development: the University of Agriculture, Faisalabad (UAF); the University of Arid Agriculture, Rawalpindi; the Agriculture University, Peshawar; the Sindh Agriculture University, Tando Jam; and the Lasbella University of Agriculture, Water and Marine Sciences, Lasbella. Their academic programs Bachelor of Science, Master of Science, Master of Philosophy, and Doctor of Philosophy (PhD) provide a trained w o r k fo rce fo r t h e s e e d i n d u s t r y a n d o t h e r agribusiness. Current total enrolment is estimated at 27,000 (Flaherty et al. 2012). UAF is the largest agricultural university and has a current enrolment of about 12,000 students (UAF 2013). It em-ploys 593 faculty members, of whom 288 (49 percent) hold a PhD from a foreign or a local university. Since its founding, the UAF has conferred 916 PhDs (i.e., only 17 per year on average).

Source : Authorâ&#x20AC;&#x2122;s calculations from FSC & RD data.

noticeable. First, public sector institutes and universities account for 96 percent of all varieties released to date. The private sector has only recently started developing its own varieties for commercial release, and this effort is restricted to a few crops. Cotton varieties all are Bt varieties account for more than half of all variety development in the private sector. It is suspected that the proportion of varieties released by the private sector is larger than what is reported here, but these additional varieties have been released in the informal sector and, thus are not included in FSC&RD data sets. Second, most variety development is concentrated in a few crops. Cotton and wheat, in particular, account for a disproportionately large share 40 percent of all varieties released so far. Third, Punjab has developed almost half of all varieties and hybrids, which is in line with its share of agricultural production. However, this also means that the agricultural requirements of other provinces are not being adequately met. Balochistan and Sindh seem to depend upon germplasm development in agro-ecologically different regions of Punjab.

Notable Trends In Public-sector Research Organizations Developing new varieties is one of the several seed sector activities these research organizations undertake. By far, AARI has been the most productive (Figure 5.1), accounting for 39 percent of the total varieties released to date, followed by KPK's Agricultural Research Institute (ARI), with 13 percent of the total.

Finally, the release of new crop varieties and hybrids peaked during the 1990s and 2000s, which was also the period when most seed companies were established. Although these new varieties and hybrids were still coming from the public sector, the private sector's growing participation seems to have played a

Tables 5.1 and 5.2 contain segregated data on the release of varieties. Four important trends are

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new companies. This also shows that companies were competing on germplasm, rather than on seed quality. Thus, a high rate of varietal change albeit fictitious emerges as a prominent feature of the past two decades.

key role. It not only enlarged the market, but also (and more important) created an appetite for nominally different varieties, so that companies could differentiate their products in an emerging market. In other words, existing varieties were being repackaged to meet an ever-growing demand from

Table 5.1—Number of registered and released varieties Crop

Public sector* Punjab

Sindh

Wheat

Barley

Maize

KPK

Private sector

Total

Balochistan

Ibd

Rice

Cotton

109

Sugarcane

Pulses

Oilseed

Fodder

Vegetables

Fruits

Total

305

171

613

134

Source: FSC&RD data. Notes: "Ibd" denotes Islamabad; "KPK" denotes Khyber Pakhtunkhwa. *The geographic distribution in this table shows the location of the research institute that developed these varieties. Thus, Punjab-based institutes developed 305 varieties and hybrids.

Table 5.2—Release of varieties and hybrids (1933–2013) Crop

Pre-1970

1970-1979

1980-1989

1990-1999

2000-2009

2010-2013

Total

Wheat

134

Rice

Cotton

109

Maize

Sugarcane

Vegetables

Barley

Fodder and forage

Oilseed

Pulses

Fruit

Total

198

202

613

Source: Author's compliation from FSC & RD data

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delinting capacity of 13,500 metric tons, storage capacity of 6,700 metric tons, and a marketing network of 1,136 dealers and 19 sales points in Punjab and 70 dealers in other provinces (PSC 2008). PSC produces seed of the following crops: wheat, cotton, gram, paddy, maize, fodder, pulses, oilseed, potato, and vegetables. In addition to producing seed on its own farms, PSC buys seed from more than 1,200 registered growers (PSC 2008).

Seed Corporations An important development of the 1970s was the establishment of seed corporations in Punjab and Sindh, and an Agriculture Development Authority (ADA) in KPK. The performance of the KPK ADA and the Sindh Seed Corporation (SSC) was disappointing, and their role in seed provision remained minimal over the years (Hussain and Hussain 2007). The KPK ADA and SSC were disbanded in 2001 and 2002, respectively. SSC was revived in 2006 (mainly under pressure from its retrenched employees), but has played an insignificant role in seed provision. For all practical purposes, Punjab Seed Corporation (PSC) is the only seed provider in the public sector.

Despite this infrastructure, PSC is now largely irrelevant to seed provision in Pakistan. Data in Table 5.3 show that PSC is unable to sell its seed stock every year, which shows poor demand for its seed and inadequate marketing mechanisms. It is also clear that PSC provides a very small proportion of the total seed requirement for various crops. Finally, PSC has also started to lose its farms: Since 2006–2008, tenants on PSC's largest farm in Khanewal have illegally occupied a large part of the farm and have refused to grow seed or to pay rent; thus, more than 5,000 acres are effectively lost to PSC.

Punjab Seed Corporation PSC has an impressive infrastructure for seed production and distribution: seed farms on 7,303 acres, processing plants with a capacity of 72,000 metric tons, ginning capacity of 22.5 bales per hour,

Table 5.3—Seed provisioning by the Punjab Seed Corporation (2011–2012) Crop

Total seed requirement (metric tons)

PSC seed procurement and sale (metric tons)

Seed sold as % of Total requirement

Price13 (US$/kg)

Procured

Sold

1,085,400

57,280

12,958

0.39

Rice

42,480

2,334

2,333

100

0.95

Maize

31,914

0.73

Cotton

40,000

1,800

668

1.92

Wheat

Source: PSC 2013.

Director—PSC's Chief Executive Officer—is appointed by the government and is usually a civil servant. During 2002–2008, the position was occupied by two retired Brigadiers, whose only claim to this posting was their military background in the then military government.

PSC's governance structure is a major factor in this poor performance. The Punjab Seed Corporation Act of 1976 vests PSC's governance function in a Board. Although, the Act states that "the Board in discharging its functions shall act on commercial considerations and be guided by such directions as the Government may give to it from time to time" (Section 4(2)), the composition of the Board dictates that PSC work as an appendage of the Punjab Agriculture Department, rather than as a professionally managed seed provider operating under market conditions.

Federal Seed Certification and Registration Department FSC&RD is Pakistan's premier agency for regulating seed provision. It is led by a Director General, who is assisted by professional staff in the Islamabad office and regional directorates for Punjab, KPK, and Sindh. Seed certification work in Balochistan province is handled by the Sindh Directorate, which FSC&RD manages a network of 28 seed-testing laboratories. Figure 5.2 presents an FSC&RD organizational chart.

Chaired by the Punjab Minister for Agriculture, the Board comprises four senior officials of the Punjab Government, one representative of the farming community (to be nominated by the government), and one representative from the seed trade (also nominated by the government). The Managing

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FSC&RD employs a large number of seed professionals and support staff in the Islamabad office and field outlets. During the last 3 years, the cost of maintaining these employees has been about 80 percent of the

total FSC&RD annual budget (about US$6 million in 2009–2010) (FSC&RD 2009). This leaves very little for other activities, such as training, facilitation of seed providers, or development of databases.

FSC&RD performs the following key functions: (1) registration of seed companies, (2) registration of varieties, (3) seed certification, and (4) enforcement of the Seed Act, 1976. A brief discussion follows.

must contain necessary information about the variety—a detailed description of its physiological and morphological characteristics and how it is different from existing varieties—and must propose a specific denomination.

Registration of seed companies: As discussed in Section 4, registration of seed companies by FSC&RD is sanctioned neither by the Seed Act nor by the rules develop under the Act. Rather, registration is carried out under a decision of the Economic Coordination Committee of the federal government. Seed companies submit their application on a prescribed form, which is accompanied by a detailed feasibility report and the registration fee. FSC&RD examines the feasibility report essentially the applicant's credentials and capacity to undertake seed business—and grants a certificate of registration. Since 1981, FSC&RD has registered 963 Pakistani seed companies (Figure 3.1), along with the Pakistan offices of five MNCs. FSC&RD occasionally publishes a National Directory of Seed Companies containing basic information on seed companies; the last Directory was published in 2007.

The applicant also submits a sufficient quantity of seed to enable its evaluation. FSC&RD conducts various trials for two or more years to assess the seed's suitability for cultivation in specific areas. These trials are carried out on various federal and provincial research farms, where the performance of the applicant's variety is closely observed and recorded. Based on these trials, FSC&RD prepares its recommendations for the Federal Seed Registration Committee, which makes a decision on the registration application. If the application is successful, the variety is granted a certificate of registration, which is valid for 10 years from the date of issue and may be renewed for a term not exceeding 5 years. For horticultural plants, the validity of the registration certificate may be extended for another term of five years. Upon the seed's registration, the name of the variety is entered into a register maintained by FSC & RD, at which point the

Registration of varieties: Applicants use a specific form to register a new variety with FSC&RD. The application

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FSC&RD to be able to sell seed to government programs that often purchase only certified seed and to avoid field inspections by FSC&RD officials, which they are authorized to carry out for any seed production facility, regardless of whether certification is sought.

variety may be sold only under its assigned name. Applicants who are aggrieved by any decision of the Committee may appeal their case to the National Seed Council. This variety approval procedure has effectively discouraged many breeders in the public and private sectors from registering their new varieties with FSC&RD. In 2013, Rana et al. reported that 10 out of 14 varieties currently under large-scale cultivation in Sindh were not registered with FSC&RD.

Enforcement of the Seed Act, 1976: FSC&RD employs 27 Seed Inspectors to carry out field inspections and to enforce provisions of the Act. If they observe a violation, they may confiscate the seed stock and impose a fine. However, the current workforce is too small to effectively inspect seed production activities in various parts of the country. Consequently, seed production mostly takes place without regulatory oversight.

Seed certification: FSC&RD carries out this core function through a system of field inspections during the production of seed at farms. Genetic purity is assessed through crop inspection, and physical purity is assessed though analysis in laboratories. Based on these inspections, various categories of seeds are provided identification labels. Imported seed is not certified by FSC&RD, but the import must be accompanied by a certificate showing that the seed has been inspected and approved in the producing country.

Availability Of Certified Seed Tables 5.4, 5.5, and 5.6 present data on the availability of certified seed. Table 5.4 presents crop-wise data on total seed requirement and availability for 2012–2013. Table 5.5 compares availability of certified seed over the past 4 years to identify any trends. Table 5.6 presents time-series data for selected crops.

Although certification is voluntary, several seed companies prefer to obtain certification tags from

Table 5.4—Availability of certiﬁed seed (2012–2013) (metric tons) Crop

Total estimated seed requirement

Total certiﬁed seed availability Pakistani public and private sectors

Imported

Total certiﬁed seed

Public

Private

Total

1,085,400

72,112

187,792

259,904

Rice

42,480

5,068

40,699

45,767

3,725

49,492

116*

Maize

31,914

245

3,460

3,705

10,303

14,008

Cotton

40,000

801

3,829

4,630

Potato

372,725

4,558

4,621

Pulses

47,496

892

916

917

Oilseed

10,582

134

448

582

1,284

1,866

Vegetables

5,070

237

241

5,177

5,418

107*

Fodder

40,138

21,253

21,279

78,434

237,400

315,834

46,300

362,137

Wheat

Total

1,675,804

Metric ton

% of requirement

Source: Constructed from FSC&RD data. * This means that either total seed requirement for rice and vegetables is more than what FSC&RD estimates, or some of the certiﬁed seed remains unused.

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Table 5.5—Comparison of availability of certiﬁed seed (2010–2013) Crop

2009–2010

2010–2011

2011–2012

2012–2013

Availability

Metric tons

% of require-ment

Metric tons

% of require-ment

Metric tons

% of require-ment

Metric tons

% of require-ment

284,344

319,023

259,904

22,253

28,895

34,528

49,492

116

9,785

9,041

12,550

14,008

Co on

18,645*

7,366

5,446

4,630

Potato

7,834

4,441

5,541

4,621

Pulses

1,365*

1,285

1,229

917

Oilseed

2,023*

716

1,256

1,866

5,533

100

6,775

134

5,453

108

5,418

107

9,230*

6,300

13,326

21,279

361,012

383,841

339,234

362,137

Wheat Rice Maize

Vegetables Fodder Total

Source: Constructed from FSC&RD data.

* Data for 2008-2009; data for 2009-2010 were not readily available.

Table 5.6—Certiﬁed seed availability for selected crops, 1996–2013 Wheat Years

Paddy Requirement

Maize

Requirement

Availability

Requirement

Availability

1995-96

1,005,180

78,929

30,265

1,848

18,774

1,854

1996-97

973,092

73,618

31,515

1,378

18,554

1,961

1997-98

1,002,552

78,544

32,442

2,047

18,652

1,498

1998-99

987,588

104,213

33,930

2,281

19,244

3,028

1999-00

1,015,560

106,379

35,216

3,845

19,234

2,564

2000-01

981,708

159,220

33,272

2,106

18,882

2,119

2001-02

966,900

134,954

29,599

3,541

18,832

2,636

2002-03

964,068

120,610

31,153

4,678

18,710

4,040

2003-04

985,944

135,499

34,448

7,547

18,942

5,321

2004-05

1,002,960

173,557

35,274

9,840

19,456

8,867

2005-06

1,013,748

166,627

36,700

12,157

20,840

9,063

2006-07

1,029,384

203,837

36,137

10,727

20,338

8,647

2007-08

1,025,976

188,879

35,216

11,474

21,034

9,951

2008-09

1,085,520

196,029

41,476

22,688

21,042

12,380

2009-10

1,095,792

284,344

40,363

22,253

18,702

9,785

2010-11

1,085,400

319,023

42,480

28,895

31,914

9,041

2011-12

1,085,400

259,904

42,480

34,528

31,914

12,550

2012-13

1,085,400

259,904

42,480

49,492 116

31,914

14,008

Sources: Salam 2012and FSC&RD data.

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category. Bt cottonseed cultivated large scale during 2005â&#x20AC;&#x201C;2010 is an example of quality uncertified seed. The key concept here is seed quality, rather than official sanction.

Several observations can be made from the data presented above: 1. Certified seed is a small proportion of the total seed requirement, ranging between 20 and 23 percent during the last 4 years. The rest of the seed requirement is provided by the informal sector farmer saved seed and uncertified seed supplied by agricultural input dealers and seed companies.

Seed companies In all, 963 Pakistani seed companies have registered with FSC&RD since 1981. Over the years, 213 companies were deregistered after they were found to be involved in irregularities (Salam 2012). Currently, 750 Pakistani seed companies are registered (Table 5.7). Several of these companies were started by contract growers of a provincial seed corporation with sufficient experience in producing seed for the public sector, or by successful farmers who had been providing seed in the neigh-borhood and wanted to formalize the arrangement. Other companies were established by members of the value chain (e.g., a ginning factory, an exporter, or an agrochemical company) seeking to diversify their business portfolio.

2. There is substantial variation from crop to crop. The range is as large as 1 percent for potato seed and 116 percent for rice seed. 3. The private sector provides a much larger share of certified seed than does the public sector. The latter now occupies a marginal position in several crops, such as maize, fodder, and vegetables. 4. While the share of certified seed has substantially increased over time in several crops (e.g., wheat, paddy, and maize), it has declined in others (e.g., cotton and oilseed).

It is common for seed companies to sell the seed of one set of crops for a few years and then move to another set. It is also common to enter and exit the seed business. Hence, not all registered seed companies may be currently active. In 2003â&#x20AC;&#x201C;2004, FSC&RD circulated a questionnaire to update its database: only 73 companies responded (Hussain and Hussain 2007). In the absence of a rigorous survey and regular updating of the FSC&RD database, it is difficult to estimate the actual number of seed companies dealing in various crops.

Although, certified seed is only 20 percent of the total seed market, quality seed may comprise a much larger share. It should be emphasized that quality seed and certified seed are not the same thing: certified seed is a subset of quality seed. Being quality-tested seed of notified varieties, certified seed definitely qualifies as quality seed. But pure seed of non-notified varieties may also be quality seed, despite being uncertified. Similarly, seed of a notified variety not presented for certification for any reason may also fall in this

Table 5.7â&#x20AC;&#x201D;Number of registered seed companies (2013) Type of company

Punjab

Sindh

KPK

GB and Ibd

Balochistan

621

750

Total registered

626

100

759

Deregistered

182

213

Total

808

123

972

Public sector Private (national) Private (multinational)

Total

Source: FSC&RD data. Notes: "GB" denotes Gilgit Baltistan; "Ibd" denotes Islamabad; "KPK" denotes Khyber Pakhtunkhwa,

number of companies is large and growing (see Fig-ure 3.1), which shows that the seed industry has yet to start consolidating. (In comparison, the Indian seed industry, worth US$1.5 billion, had 410 local and 6 multinational companies (Kumar 2010, cited in Spielman et al. 2011).

Data presented above show two important trends. First, seed business is concentrated in Punjab, with 82 percent of companies having their registered offices there. Most of these companies are located in Southern Punjab, which enables them to also serve the markets in Sindh and Balochistan. Second, the

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Association, Seed Companies Association of Pakistan, Chambers of Private Seed Industries, All-Sindh Private Seed Companies, and All Pakistan Seed Merchants Trade Association (Agricultural Re-form Movement (ARM) 2008; FSC&RD 2001). The most active of these associations, the Seed Association of Pakistan, has effectively used the platform to present seed companies' perspective on seed legislation in Pakistan. MNCs have their own small association.

Five MNCs are also involved in the seed business in Pakistan: (1) Monsanto Pakistan Agritech (Pvt.) Ltd.; (2) ICI Paki-stan Ltd.; (3) Pioneer Pakistan Seed Ltd.; (4) Bayer CropSciences; and (5) Syngenta Pakistan Ltd. None of them has a significant local R&D component. They mostly import hybrid seeds of maize, sunflower, fodder, canola, alfalfa, and sorghum (Hussain and Hussain 2007). MNCs have played a key role in introducing hybrid seed in Pakistan. Monsanto and Pioneer were central to introducing hybrids of maize and sorghum, whereas ICI introduced a canola hybrid. Pioneer's modern plant in Sahiwal processes seeds for cereals. It was very successful in its wheat seed business during the early 1990s, but has since abandoned wheat seed procurement and distribution, saying that it is no longer profitable (Hussain and Hussain 2007).

Pakistani and multinational companies are important seed providers in Pakistan, playing a lead role in several crops. No longer limited to multiplication of basic seed from the public sector, these companies are now developing varieties. For example, 10 out of 17 Bt cotton varieties approved for commercial cultivation in Pakistan were developed by (and are registered with FSC&RD in the name of) Pakistani seed companies. The actual number of Bt cotton varieties developed by the private sector may be larger, given that companies often enter the market directly without recourse to FSC&RD. Similarly, the import of seed is almost entirely carried out by the private sector.

During the 1990s, Monsanto produced cotton, wheat, and rice seed for local sale as well as for export to Afghanistan. Since 2002–2003, it has stopped producing seed for these crops. Syngenta and Bayer have also been in the seed business on a limited scale, but now they mostly focus on their agrochemical business. Both, however, are carefully watching developments regarding commercialization of GM crops, as they want to commercialize their GM seeds in Pakistan.

Table 5.8 presents data on private sector's share in provision of certified seed of selected crops. These data show that seed companies dominate the certified seed market. For important crops listed above, their share (local production plus import) ranges from 72 percent for wheat to 100 percent for vegetables and fodders. Quite clearly, they have reduced the pub-lic sector seed providers (viz. the seed corporations) to a small role in the certified seed market.

Seed companies have formed several associations to lobby for favorable policy decisions. These include the Seed Association of Pakistan, All Pakistan Private Seed

Table 5.8— Shares of private and imported seed in certiﬁed seed (2013) Crop

Certiﬁed seed as a proportion of total seed requirement (%)

Private sector's share of total certiﬁed seed (%) Local production

Import

Total

Wheat

Rice

116

Maize

Cotton

Potato

Pulses

Oilseed

Vegetables

107

100

Fodder

100

Source: Constructed from Table 5,4. Seed Times Jan. - Mar. 2015

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a premium for quality, and that brand names have started to emerge. It is noteworthy that although not all of these varieties are registered with FSC&RD, their seed is sold openly under company labels. Even registered varie-ties are not exclusion goods—at least not yet, as their seeds are sold by multiple companies.

Companies compete on germplasm as well as seed quality. Table 5.9 presents data on Bt cottonseed prices in Sindh, showing that companies sell seeds of the same varieties of Bt cotton at substantially varied rates. This also indicates that farmers are willing to pay

Table 5.9—Cottonseed price (Rs/kg) in Sindh, 2012 Name of variety

Jalandhar Seed Co.

Thakkar. Seed Co.

Al-Karam Seed Co.

Manthar Seed Co.

Shahbaz Seed Co.

Paradise Seed Co.

Rabanni Seed Co.

Bt-121

145

115

250

100

Bt-886

175

100

130

100

250

IR-901

140

135

110

100

110

100

IR-3701 Bt-702

100 100

135

Vip333

Summer Tawakkal Seed Co. Seed Co.

100

95 120

500

from an agrochemical base. Similarly, several seed companies are developing brand names and emerging as lead players in selected crops, such as Neelum Seeds Ltd. of Multan. Starting from a small (cotton ginning and farming) base in late 1990s, Neelum Seeds has grown into a large company, with a diversified portfolio (cotton, wheat, maize, rice, pulses, fodder, and vegetables) and a marketing network in three provinces. However, the time has not yet come for corporate buyouts, mergers, and acquisitions.

In the absence of data on individual companies' sales, it is difficult to comment on the seed sector's size (see Box 3), or the extent of horizontal and vertical integration across companies. However, anecdotal evidence suggests that both types of integration are taking place, though the process may have just started recently. Several agrochemical companies are venturing into seed sales and are quickly emerging as important players. Examples are Auriga Chemicals and M/s Four Brothers, both of which expanded into seeds Box 3: Estimating the size of the seed market

Hussain (2011) estimated the total size of the Pakistani seed market in 2008–2009 at US$845 million. More recent estimates are not available. Estimating the size of the Pakistani seed market is problematic for two reasons. First, the total seed requirement for various crops is a function of area under cultivation, seed application rate, and seed replacement rate. In the absence of regular censuses and surveys, approximations are made for each of these variables. Second, seed prices vary significantly for various varieties and providers. Companies compete on seed quality and price for the same variety. Often, the prices of certified seed supplied by the Punjab Seed Corporation are used, which are less than the prices charged by companies. For example, Hussain (2011) estimated the cottonseed market was US$37.16 million in 2008–2009, whereas Rana et al. (2013) calculated the same at approximately US$97.7 million in 2012. A different set of approximations, rather than growth during 2008–2012, seems to cause such large variation in size estimation. Financing of seed companies comes from a variety of sources. Since the declaration of the seed business as an industry in 1994, bank financing is available not only from the state-owned Agricultural Development Bank of Pakistan, but also from commercial banks. Small companies use their farm income or income from allied activity, such as cotton ginning, to invest in their seed

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business. Corporate data are not publicly available to estimate the respective shares of each type of financing. Companies face several constraints in their operations. Perhaps the most salient is the inadequate, archaic, and inconsistent legislative and institutional framework. Another constraint is limited access to

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

In addition to seed companies, several other seed providers—e.g., farmers, agricultural input dealers, and other members of the value chain (e.g., cotton ginners and sugar mills)—provide seed in brown bags. In providing uncertified seed, these providers operate without official sanction—sometimes in violation of an express injunction. The key concept here is official sanction, rather than seed quality.

breeder seed from public-sector research institutes. The absence of IPR protection is also discouraging R&D, especially the development of open pollinated varieties. Companies participate more extensively in the hybrid seed market, which offers inbuilt intellectual property (IP) protection. The small size of the domestic market and barriers to seed trade with India, which could have developed a regional market, also push corporate investment into other segments of the production chain.

The case of Bt cotton is instructive. Bt cotton seeds first reached farmers' fields in Sindh in 2002–2003. They were brought by enterprising farmers from abroad and planted on a small scale. As the seeds provided effective protection against bollworms, their popularity grew. In the meantime, several seed companies had successfully crossed exotic Bt material with local cotton varieties to produce Bt varieties of their own. By 2005–2006, several companies were marketing their Bt varieties on a large scale. By 2007, Bt varieties accounted for 80 percent and 50 percent of the arable area under cotton cultivation in Sindh and Punjab, respectively (Ali et al. 2007). Soon cultivation of non-Bt varieties was limited to pockets of land. Since the government had not approved any of the Bt varieties by then,14 all of this large-scale spread occurred in the informal market.

The informal sector Data presented in Tables 5.4 and 5.5 show that uncertified seeds account for about 80 percent of the total seed requirement every year. These seeds are provided by a very large informal sector comprising (1) farmer-to-farmer seed exchange on a non-commercial basis, (2) small-scale farmer-to-farmer seed sale, (3) farmer-saved seed for planting in subsequent years, and (4) medium- to large-scale sale of seed in brown bags. Farmer-to -farmer exchange on a noncommercial basis and small-scale sale are not rare, but the volume of such exchange or sale is negligible as a proportion of Pakistan's total seed requirement. The third and fourth categories constitute the bulk of the informal sector. The tradition of saving seed is old and well established in Pakistan. The proportion of farmer-saved seed varies from crop to crop. Wheat seed, for example, may not be replaced for 3–4 years, but rice may be replaced more frequently. The amount of saved seed depends upon several factors, including type of seed (varietal or hybrid), size of farm, ease of storage, disease and pest complex, and farmer's expertise. Farmers save seed for a variety of reasons, such as low cost, familiarity, performance under local conditions, and preferred attributes other than yield. Usually, farmers will purchase new seed from the market if they want to replace their variety or the seed stock has deteriorated as a result of contamination, etc.

The spread of Bt. cotton seeds in the informal sector was the result of three factors: First, none of the Bt varieties was approved by the government, which did not approve seed for considerations other than quality. Second, FSC&RD or provincial agriculture departments did not have the capacity to monitor or check the spread. Third, seed companies did not feel disadvantaged in the absence of the official notification that changed the status of their Bt varieties from unapproved to approved—they had discovered that the market did not care. Not wanting to be bypassed, public sector research institutes and seed producers had also joined the fray early on. At least two research institutes—the Centre of Excellence in Molecular Biology and NIBGE—developed cotton varieties containing local genetic transformation events. Not only had AARI and other breeding organizations developed Bt varieties, but their breeders were also marketing Bt seeds in the informal sector. PSC was also openly producing and marketing Bt seeds in 2008–2010, while their production and sale were still illegal in Pakistan (Rana 2010). In short, the entire ensemble of seed providers—research institutes, breeders, seed corporations, and seed companies had

Sometimes, seed companies also sell uncertified seed—usually because the variety is unapproved. Companies sell uncertified seeds through their own outlets, as well as through the vast network of input dealers. The undocumented character of such transactions places them in the informal, rather than the formal, category. Sometimes these seeds are sold in company packaging bearing a company label. Weak enforcement of seed laws allows companies to conduct their operations in the informal sector. Usually, however, uncertified seeds are sold in brown bags.

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Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

legislation addressed only notified varieties and certified seed. IPRs, brand names, and similar other concepts were less relevant in the given context.

become part of the informal sector, at least to the extent of their cotton seed business. In 2010, the situation changed with official approval of nine Bt varieties. One of these belonged to NIBGE, and eight to seed companies. Official approval hardly conferred a market advantage on these varieties, but it enabled providers to market seeds under their label. This improved quality, as brand names started to emerge. Since official approval did not confer IPRs, they were fair game for all. Companies conveniently produced and marketed under their own label seeds of whichever variety they preferred. This forced them to compete on seed quality as well as germplasm (see Table 5.9).

However, by the mid-1990s, the private sector had an established presence in all aspects of seed provision. New seed companies and MNCs were not only selling seed of public-sector varieties, but were also developing their own varieties and importing germplasm formally and informally (Section 5 above). As the private sector's operations grew, it gained confidence and started to find the existing legal regime stifling and archaic. In contrast , the public sector—principally FSC&RD—lacked the resources needed to oversee private-sector activities in various areas.

Several of the approved varieties quickly disappeared from the market and were replaced by new varieties, not all of which were approved by FSC&RD. Rana et al. (2013) found that only 4 out of 14 varieties under largescale cultivation in Sindh were notified. They calculated the respective shares of various providers as follows: seed companies, 69 percent; breeders, 15 percent; other farmers, 8 percent; farmer-saved seed, 6 percent ; and others (ginning factories, noncommercial exchange), 2 percent. In other words, 69 percent of cottonseed was being sold in properly labelled packets—i.e. it could be traced to its producer—and 31 percent was either farmer-saved seed or seed in brown bags.

The following two examples illustrate the growing dissonance between the market and the legislative framework. Under the existing procedures, a new variety was tested for at least 2 years for DUS as well as for Value in Cultivation and Use (VCU) at various research stations and farmers' fields. As long as only the public sector was developing varieties, the system worked well. But when companies entered into variety development, they were reluctant to hand over their germplasm for testing at competitor institutes. They also found varietal evaluation procedures to be time consuming and bureaucratic. Since approval of a variety did not bring any value to their business—it did not create IPRs—several companies started releasing their varieties directly into the market—i.e. without recourse to FSC&RD approval.

Compare these results with data in Table 5.4, which say that certified seed is only 12 percent of the total cotton seed requirement. Certification is an important indicator of seed quality, but so is brand name. This 57 percent of uncertified but branded seed is not necessarily of low quality. Moving from the current regime to voluntary registration of varieties readily transmogrifies into truthfully labelled seed. Thus, the distinction between formal and informal is somewhat amorphous.

For its part, FSC&RD felt that seed companies were releasing varieties of dubious quality that were unstable, had poor germination, and were susceptible to pests and diseases. FSC&RD was also critical of the growing practice of introducing exotic germplasm without proper testing and adaptation. Clearly, the companies and FSC&RD were at odds in one important aspect: the companies thought they were operating in an over regulated environment, whereas FSC&RD thought the regulation lacked the necessar y safeguards for meeting its quality control objective. Albeit for different reasons, both agreed that the legal framework was archaic.

Removing Contradictions Between The Law And The Market When the Seed Act was enacted in the 1970s, all important aspects of seed provision—variety development, evaluation tri-als, control of germplasm, import, and export—occurred within the public sector, as the private sector was virtually nonexist-ent then. The Act reflected this reality and sought to strengthen the existing system, rather than replace it with something new. As a result, the Act and its subordinate

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In another example, a key FSC&RD function was to certify seed, which was performed through field inspections during the production stage. FSC&RD field

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

The 2009 draft Bill proposes to amend the Act in three important aspects in addition to imposing stringent biosafety requirements for GM varieties (Box 4). First, it substantially adds to and modifies the Act's definitions. Basic Seed, which up to this point is defined as "seed produced by an organisation set up by a Provincial Government (Section 2(b) of the Seed Act, 1976)" is redefined as "progeny of the pre-basic seed produced by any public sector or private sector organisation and certified by the Federal Seed Certification and Registration Department." Seed business has also been defined as "any commercial operation, involving production, processing, conditioning, packaging, distribution, import and export of seed." Another important definition added is that of the misbranded seed—i.e., seed purporting to be what it is not. These definitions are significant, as they enable the private sector's formal entry into seed provision, including production of basic seed.

officials would periodically visit seed growers' fields to determine whether proper procedures were being followed. They would take samples from seed lots and examine them carefully to see if the seed met the specified quality standards. The process culminated with the issuance of tags, which seed distributors were required to dis-play prominently as a mark of quality. The private sector, however, viewed the whole paradigm differently. It felt that it had the necessary know-how on producing quality seed and therefore found FSC&RD inspections intrusive, time consuming, and uncalled for. Since a brand name, rather than a tag issued by an official, carried weight in the market, the private sector found seed certification of little value in its business. In any case, seed certification was possible only for notified varieties. As the number of unregistered varieties in the market grew, certification became even less relevant. The Bt cotton saga brought the growing irrelevance of the existing legal and institutional regime to the fore. Clearly, a comprehensive reform was warranted to remove the growing dissonance between the law and the market. Two types of re-sponses emerged: (1) a comprehensive reform proposal from FSC&RD to make regulation more effective and to include the private sector in its ambit, and (2) a proposal for a paradigm shift to truth-in-labelling-based quality control of seed. These proposals are discussed below.

Second, the Bill requires anyone desiring to do seed business, to establish a seed-processing plant, or to work as a seed dealer to register with FSC&RD. Such registration will be valid for 5 years, and an application for renewal will be required to continue the seed business thereafter. This proposal extends FSC&RD's role—previously limited to registration of seed growers and plant varieties—into other aspects of the seed business. Third, the Bill prohibits several activities including: (a) doing seed business without registration; (b) selling, importing, stocking, bartering, or otherwise supplying seed of an unregistered variety; and (c) selling, etc., misbranded seed. Any con-travention may be punished by imprisonment for a term extending up to 3 months, or by a fine, or by both.

Draft Seed Act Amendment Several proposals have been put forth by various stakeholders during the past two decades to amend the Seed Act, 1976. The latest is the 2009 draft presented by FSC&RD to the Ministry of Food and Agriculture. Its salient features are discussed below. Box 4: Registration of GM varieties

Section 22(G) of the Bill proposes that no application for registration of a GM variety will be accepted unless it is accom-panied by (1) an affidavit that it does not contain a gene involving terminator technology and (2) a certificate from the National Biosafety Committee that the variety will have no adverse effect on the environment, human, animal, or plant life and health. Clearly, the Bill is an effort to extend regulatory oversight to all aspects of seed provision in Pakistan. It is a response to the current free-for-all environment in which FSC&RD finds itself severely handicapped in dealing with delinquency. If ap-proved by the Parliament, the Bill will place the seed business—both public and private—firmly under FSC&RD's regulatory

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control. Not only will a seed company require regulatory approval to start its operations, it will also have to report regularly on its activities to stay in the business. In return, the Bill does not offer any incentives to the seed business. Notification of a variety will not create

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

Third, The proposal also divides crops into two categories—the ones listed in a Schedule and the rest—and proposes a different regulatory regime for each category. Although, all seed businesses are to be registered and their seed may be sold only by their authorized dealers, varieties of only scheduled crops are to be registered. Seed of crops not listed in the Schedule—which the government may amend from time to time—may be sold under a truth-in-labelling regime, which dispenses the requirement of variety registration. If only a few commercially important crops are included in the Schedule, the seed of all other crops may be produced and sold with minimum interference from the government. Fourth, the proposal specifically protects farmers' rights to save and reuse seed from one season to the other.

IP, and registration of a business will not confer a market advantage. Official seals of approval carry little weight in an increasingly competitive market, which is deeply sceptical of the government's willingness and capacity to enforce its writ. These amendments have not been passed yet. Despite several efforts to obtain approval from the Cabinet to move forward on the Bill, it is still pending within the Ministry.

Draft Punjab Seed Act of 2010 The inaction of the federal government has frustrated Pakistan's provincial governments. Punjab, in particular, felt that the inordinate delay in amending the Seed Act, 1976 was hurting its efforts to improve seed provision in the province. The devolution of functions carried out in the aftermath of the 18th Constitutional Amendment in 2010 (see Section 4) provided an opportunity to attempt amending the Seed Act or enacting a new law. The time had come for the Punjab government to take matters in its own hand.

The draft Punjab Seed Act, 2011 presents a paradigm shift. It proposes the regulatory function to be performed by a private-sector led Council and some crops to be shifted to a truth-in-labelling-based regulatory regime, as long as minimum standards are met. However, the draft has not made much headway, and remains in the official files of the Punjab Agriculture Department.

Several drafts have been prepared since 2010–2011. Mostly, these adopt FSC&RD proposals as discussed above to the extent of Punjab province. They propose substituting federal procedures with provincial procedures and replacing the federal bureaucracy with a provincial version. Thus, the Punjab Seed Council will replace the National Seed Council, and the Punjab Seed Certification and Registration Department perform FSC&RD's functions.

Draft Plant Breeders' Rights (PBR) Act Another important piece of legislation currently pending with the federal government is the draft PBR Act. The first draft was prepared by FSC&RD in 1999, and several versions have appeared since then. The one that went the farthest was pre-sented to the Cabinet in 2007. Its salient features are discussed below.

However, one proposal—the draft Punjab Seed Act, 2011—goes beyond this in at least four important respects. First, it cites as its objective "to regulate the quality of seed and to support the development of a vibrant seed industry in the prov-ince" (Government of Punjab 2011).

The draft PBR Act, 2007 is based on the 1991 International Union for the Protection of New Varieties of Plants model law, which aims to create IPRs for development of new plant varieties. Toward this end, the draft law proposes the creation of a Plant Breeders' Registry to be attached to the federal Ministry of Agriculture. The Registry will perform several functions, such as registering new plant varieties, ensuring that the seed of registered varieties is available to farmers, documenting, and cataloguing. The Registrar will be appointed by the federal government, which may shift officials from FSC&RD to the Registry. The federal government will also establish an Advisory Committee, comprising 12 members (including the Chair-person) to be nominated by the federal government to represent various ministries and provincial governments. The role of the Committee is envisaged as purely advisory, and its advice will not be binding on the Registrar.

Second, it vests power in a broad-based Punjab Seed Council, which is to comprise government officials, seed experts and representatives of seed business, members of the public, and farmers. Interestingly, private individuals are to outnumber officials in the Council and are to be nominated by their respective institutions, rather than being nominated by the government . The Council may also elect its Chairperson and appoint a Chief Executive Officer on terms and conditions that it settles. The proposal also enhances Council's role to include several support functions, such as building the private sector's capacity and facilitating international collaborations.

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Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

Box 5: Moving from VCU to novelty The proposed PBR legislation not only drops the VCU requirement, it also redefines the notion of novelty to not having been sold, rather than the usual DUS criteria. This shift from utility to not having been sold is significant, in that it allows the breeder to create product differentiation by means other than utility. Thus, the breeder may effortlessly produce as many varieties as the market can believe to be new. As a result of this, the menu of choices put before the farmer may increase, though these choices may be fictitious rather than real. But the reality is that the VCU criteria have already been meaningless for publicsector breeders in Pakistan who have successfully commercialized nominally different varieties over the past three decades. Therefore, the draft PBR Act only proposes to convert the de facto into the de jure and extends to the private sector a privilege previously available only to the public sector.

is significant or cosmetic. A breeder of an EDV will enjoy all rights as are enjoyed by the breeder of the original variety. Theoretically, this opens the possibility of a breeder enjoying rights for the specified period, developing an EDV toward the end, and enjoying rights on the EDV for another term, etc.19

Any seed producer may apply to the Registrar for registration, if the variety is novel and meets the DUS criteria. A variety qualifies to be new if it has not been sold in Pakistan for more than 1 year or in a foreign country for more than 4 years18 before filing application for registration. Thus, the VCU criteria is dropped (Box 5).

Registration confers several rights upon the breeder: (1) conditioning, multiplying, importing, exporting, selling, offering for sale, or marketing the registered (i.e., protected) variety; (2) carrying out any of these acts with respect to an EDV; and (3) authorizing another person to carry out any of these acts. These rights are valid for 25 years for trees and vines and for 20 years for other crops. Everyone other than the PBR holder is prohibited from performing any of these acts, except under authorization from the PBR holder or as provided in the Act. However, use of a registered variety is allowed for scientific research and plant breeding, and for use as an initial source for creating other varieties. Farmers' rights to save, sow, and re-use seed from one crop to another are also protected (though not as liberally as in the Indian PBR law (Box 6)).

An application for registration must be in the prescribed format and accompanied by a detailed description of the variety. For a GM variety, it should be accompanied by an affidavit that the variety does not contain terminator gene sequence, and a certificate from the Biosafety Committee that it will not harm human, animal, or plant health. The application is to be advertised by the Registrar, and anyone may oppose the application within 3 months of its advertisement. The Registrar will adjudicate on the matter and issue a decision on the application (and opposition, if any). Anyone aggrieved by a decision by the Registrar may appeal the decision in the High Court. In addition to new varieties, an Essentially Derived Variety (EDV) may be registered. An EDV is defined by the draft Act as a variety derived from a registered variety that retains the essential characteristics of the original variety but is clearly disinguishable. The draft Act specifies neither how to determine whether an EDV retains essential characteristics nor the criterion for assessing whether the difference between two varieties

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While the breeder usually enjoys these rights, in case of breeders working in public-sector institutes, the institutes will enjoy such rights instead. However, the draft Act provides for creation of a Research Incentive Board that will incentivize public-sector breeders by entitling them to a minimum 20 percent royalty to be earned from a registered variety.

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

Box 6: Comparison with Indian PBR legislation Comparison of Pakistan's proposed PBR legislation with Indian Protection of Plant Varieties and Farmers' Rights Act, 2001, is instructive. The latter is friendly to farmers in several ways. First, the Indian legislation creates a 15-member broad-based Authority to govern the Plant Varieties Registry, which has considerable flexibility to determine and perform its func-tions. The Authority includes representatives from farmers' organizations, tribal organizations, women's organizations, agri-cultural universities, the local seed industry, and the provinces (Section 3(5)). Second, the Registrar is appointed by the Authority, rather than by the government. Third, it not only enunciates farmers' rights to save and reuse seed in unequivocal terms, but also provides for compensation to farmers if a variety fails to perform according to the claims made by the breeder. Fourth, it protects farmers against innocent infringement as well as excludes farmers or local communities from payment of fees in proceedings before the Authority. Finally, it extends PBRs to 35 crops, of which 20 have been specified so far. has been a major marketing tool for seed providers in Pakistan during recent years (Rana 2010).

Political economy of seed legislation The discussion above has highlighted inadequacies and contradictions of the legal regime for seed provision in Pakistan. Given that the current system is not working well, it is surprising that numerous attempts by the federal and provincial governments to update and upgrade the regime have not succeeded. This may be explained by a reference to the interests of key actors in legislative reform.

Since the proposed amendments do not offer anything in return, the seed industry has been lukewarm at best in its response. Neither registration of a variety with FSC&RD nor seed certification by its officials confers any right or places the seed provider in a position of competitive advantage in the market. Thus, the seed business views the proposed amendments to the Seed Act largely as an effort by the state to extend its control to the private sector without offering anything in return. Were it possible, FSC&RD would still push through the proposed legislation. But the seed business is now too power-ful to be taken lightly.

For FSC&RD (or its Punjab equivalent should the draft Punjab Seed Act, 2011, be pursued), the proposed amendment serves an important purpose: it extends regulatory oversight to the working of the private sector in seed provision. Hence-forth, all important activities, especially production and marketing of new seed varieties, will be subject to official verification and approval. An increased role will bring more privileges and greater opportunities for rent seeking for officials entrusted with the regulatory authority. For farmers, the proposed amendments offer some protection against spurious seed and against false claims on performance. For the private sector, however, the amendment's implications are less clear. On one hand, the existence of a legal framework makes the seed business more predictable for the seed industry. It forces all breeders and seed producers to compete in the regulated market, rather than slip into the informal, unregulated segment of the market. On the other hand, a legal framework also subjects the seed business to external oversightâ&#x20AC;&#x201D;something it has avoided for two important reasons: (1) it will require seed providers to meet minimum standards in equipment, human resources, and seed quality; and (2) it will limit its ability to bring "new" varieties to the market. The latter will be a restraint on artificial product differentiation, which

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A similar reference to the interests of various actors is required to understand the lack of progress during the last 14 years in moving forward PBR legislation. FSC&RD has been advocating for the legislation for two principal reasons. First, the legislation is part of Pakistan's obligations under the agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Under TRIPS, developing countries are required to provide patent or sui generis (i.e., unique) protection to plant varieties. Since the Pakistan Patents Ordinance, 2000 specifically excludes plants from protection under a patent, Pakistan is obligated to enact another form of protection for plant varieties. Second, the legislation extended FSC&RD's portfolio of regulation and control. The draft legislation specifically mentions that the federal government may transfer as many officials from FSC&RD to the PBR Registry as are required. This means new positions, vehicles, and promotions. FSC&RD has been less enthusiastic about the proposed amendments since 2007â&#x20AC;&#x201C;2008, when the newly created Intellectual Property Organisation (IPO) of the federal

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

shows that the industry may be emerging from its growth phase into its consolidation phase. However, the private sector's focus is limited to a small num-ber of crops.

government claimed that the PBR Registry should be housed in IPO, rather than in FSC&RD. It was argued that since patent, trademark, and copyright registries were housed in IPO, it was natural for the PBR Registry also to be housed in IPO. For its part, FSC&RD, considered it natural that the PBR Registry be established as a natural heir to its registration wing. It had the infrastructure, the expertise, the institutional knowledge, and the linkages with breeding institutes.

Second, the legal structure is archaic and internally inconsistent. Developed four decades ago to support a state-led provision of seed, it has long exhausted its potential to foster the growth of Pakistan's seed industry. The need to reform the legal and institutional regime is clear, but there are deep divisions on how to move forward toward this end. Various actors—the seed business, scientists, and regulators—deploy their professional networks to steer the reform process in their favor. The lack of internal agreement has hampered efforts to rewrite the regulations.

This turf war continued for quite some time. In 2007, the Cabinet approved the draft legislation for presentation to Parliament, but it decided that the PBR Registry would be housed in IPO (DG FSC&RD 2008). This decision was a serious loss to FSC&RD. Not only did it lose an opportunity to extend its portfolio, it was now required to redefine itself as a mere seed certification agency. Since the draft legislation is still pending, FS C & R D co n t i n u e s t o p u r s u e i t , a l b e i t l e s s enthusiastically. IPO is also promoting the legislation however, being a new entrant to the regulatory framework, IPO may require some time to develop the necessary networks to finalize the legislation.

Third, farmers are almost entirely absent from the discourse. They appear to be the passive recipients of development within the seed industry. Farmers' lack of representation in important policy forums, such as the national and provincial seed councils or in the proposed PBR Registry, confirms that they play a limited role in setting agendas, determining priorities, and monitoring seed quality.

The other major group that has pursued PBRs is the seed companies. MNCs have been leading the campaign, but their number is small and their field operations are limited. Pakistani seed companies are generally supportive of the legislation, but are skeptical of the government's willingness and ability to effectively enforce PBRs. Also, there is some tension between seed companies' desire to protect their germplasm through PBRs and their ability to use others' germplasm in their variety development programs. They seek protection for their own material, but free access to others' material. Thus, the Pakistani seed industry is unable to generate enough pressure to push the PBR legislation through routine official inaction.

Fourth, conceptualization of the formal and the informal sectors is challenged by the above discussion. The formal may be understood as the sale of certified seed of approved varieties by registered seed companies through their licensed deal-ers. Or it may be understood as commercial distribution of seed under company labels. These represent two different paradigms. The former requires several permissions before a seed can legitimately reach the farmer—registration for the company, approval for the variety, license for the dealer, and certification for the seed. The latter relies almost exclusively on truth-in-labelling—i.e., a seed that meets quality benchmarks may be marketed so long as the provider is ready to associate its name with the product. The buyer, rather than the official, makes the decision regarding what stays in the market and what leaves.

Findings and Recommendations Previous sections have presented several important findings. First, the Pakistani seed industry is large and diversified (see Appendix A for a summary). Although certified seed is only about 20 percent of the total seed requirement, quality seed—which is not the same as certified seed—may constitute a larger proportion (see Section 5.3.1). There is large-scale private-sector participation in the seed business by Pakistani seed companies and MNCs. The number of seed companies is still growing, but at the same time vertical and horizontal integration has started to take place, which

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The discussion in this paper shows that the former represents the de jure and the latter the de facto. If the formal sector is defined as the former, around 80 percent of the seed sector in Pakistan is informal. However, if it is defined as the latter—as this paper tends to define it—the entire segment being provided by seed companies under their labels will fall in the formal sector, regardless of whether the variety is approved or the seed is certified.

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

important crops, it should aim at formalizing, rather than penalizing, the informal sector.

Fifth, the dichotomy between the two sectors emerges as less distinct than previously believed. This paper has documented how several companies, breeders, and even state enterprises have produced and marketed the seed of unapproved varieties in specific situations. Thus, neither the formal nor the informal sector emerges as a discrete entity. More pertinently, these are sectors across which seed providers move over time, or in which they may be multiply located for the same or different crops.

Third, the role of FSC&RD needs to be redefined. FSC&RD provides two services: registration of varieties and certification of seed. Given that registration benefits neither the breeder nor the farmer, why should it be required at all? Similarly, seed certification has become largely irrelevant, as much for the lax implementation regime as for farmers' reliance on their judgment, rather than a tag issued by an official displayed on the seed bag. Companies usually obtain these certification tags from FSC&RD to avoid unwarranted inspections, rather than for any value that the tags may add to their business.

Several policy recommendations also emerge from the discussion in this paper. First, there is a strong and urgent case for reimagining the regulatory framework. When farmers have multiple providers to choose from in a functioning, competitive market, why not let them use their judgment to select the best seed they thinks best suits their site-specific agro-climatic conditions. The state should redefine its role from an entity that certifies, approves, registers, and licenses to an entity that defines benchmarks, enables accreditation services, and ensures compliance with benchmarks. Making variety registration voluntary and replacing certification by truth-in-labelling is not a call for a withdrawal of the state from seed regulation; rather, it is a call for strengthening regulation by making it reflect current seed business practices. The draft Punjab Seed Act, 2011 may be a good starting point to move forward in this direction. Its proposal to establish a privatesector-led, independent regulatory authority and to deal with scheduled and other crops differently merits consideration.

Similarly, PSC also needs to develop a better business model, as the current model is flawed on several counts. PSC is unable to dispose of the seed it produces on its farms or procures from its registered growers. Thus, rather than being a mainstream seed provider, it struggles every year to offload its stocks. Further, PSC is providing commodities that are being supplied (more successfully) by several providers in the private sector. Why should PSC compete with these private providers in crops where it has neither a competitive advantage nor an established market share? There appears to be a case for either closing down PSC or shifting its focus to producing seed for niche and ignored markets. Further policy research needs to be reoriented to the informal sector. Rather than investing in collecting and analyzing data on the provision of certified seed, which constitutes only 20 percent of the total seed requirement, investing in understanding the dynamics of the use and provision of uncertified seed will yield more productive results. Determining how seed providers compete on seed quality in a market with an unusually large number of providers will be instructive. It will also be useful to explore ways to support farmers in saving their seed, which will continue to be an important source for several crops.

Second, variety release procedures should be simplified and made more transparent. In the current milieu, breeders find these procedures time consuming and unwarranted. They are also reluctant to submit their seed to institutes for evaluation because the two compete in the market with similar products. Ideally, variety registration should be voluntary. But even if an approval regime must be put in place for commercially

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Seed Times Jan. - Mar. 2015

6,694

2,626 7,904

Rice

Maize

Co on

82 627 4,797

Vegetables

Fodder

–

Mung: 10 Gram: 16 Mash: 8 Len l: 4

Hybrids: 10 Varie es: 40

Hybrids: 5 –7

Average seed applica on rate (kg/acre)

Local

Varietal

40,000

40,138

5,070

10,582

116

44 12

PSC, seed companies and farmers PSC, seed companies and MNCs PSC, seed companies and farmers

107 53

MNCs and seed companies PSC and seed companies MNCs and seed companies

Mainly imported; very small locally produced

Imported Local and imported

Both Both

PSC, Pakistani seed companies and farmers

PSC, seed companies and farmers

Cer ﬁed seed as % of total requirement

Major seed providers

both

Local

Local and imported

Both

31,914

Varietal

Local and imported

Fine types are hybrid; coarse types are mostly varietal

42,480

47,496

Local

Varietal

1,085,400

Imported or Total seed requirement Varietal or hybrid (metric tons)locally produced FSC&RD es mates

–

Mung: 0.96 Gram: 0.96

1.92

0.73

0.95

0.39

Price of seed sold by PSC (US$/kg)

Note: Very high availability of certified seed for rice and vegetables shows that the seed requirement is more than FSC&RD estimates and/or some certified seed remains unused. Seed prices vary for different varieties; only the highest are cited.

Source; Author's compilation from various sources. Cultivation area is from the Pakistan Economic Survey 2012-2013. Total seed requirements are FSC&RO estimates, which may be oﬀ the mark in the absence of regular surveys. The rest is from data presented in this report and information collected from key informants.

2,049

Oilseed

3,302

22,341

Wheat

Pulses

Area (‘000 acres)

Crop

APPENDIX A: SUMMARY OF SEED PROVISIONING FOR VARIOUS CROPS

The Seed Industry in Pakistan

Business Opportunities in Agri/Seed Segment in SAARC Countries

The Seed Industry in Pakistan

REFERENCES Kumar, S. 2010. Seed Production in India: Triumphs and Challenges in Field Crops. http://nsai.co.in/Publication/upload/Dr%20sateesh%20kumar.pdf, accessed November 2013.

Ahmad, M. and Joseph C. Nagy. 1999. "Private Sector Investment in Agricultural Research in Pakistan." Pakistan Develop-ment Review. Islamabad: Pakistan Institute of Development Economics. Ali, I. and S.M. Ali. 2004. A Note on the Seed Business in Pakistan. Lahore: Lahore University of Management Sciences.

PARC (Pakistan Agricultural Research Council). 2013. Pakistan Agricultural Research Council: profile. www.parc.gov.pk

Ali, S., S. Hameed, S. Masood, and G.M. Ali. 2007. Status of Cotton Harboring Bt Gene in Pakistan." Islamabad: Pakistan Agricultural Research Council (PARC).

PSC (Punjab Seed Corporation). 2008. "Introduction and Overview—A Presentation to Secretary of Agriculture." Lahore: Punjab Seed Corporation, Agriculture Department, Government of Punjab.

ARM. 2008. Green Pages. Lahore: Agricultural Reform Movement. DG FSC&RD (Director General, Federal Seed Certification and Registration Department). 2008.

PSC (Punjab Seed Corporation). 2013. Overview of the Punjab Seed Corporation. Lahore: Punjab Seed Corporation, Agri-culture Department, Government of Punjab.

"Note for Secretary MINFAL dated 3 May 2008—Enactment of Plant Breeders Rights Bills, 2008." Islamabad: Federal Seed Certification and Registra-tion Department, Ministry of Food, Agriculture and Livestock, Government of Pakistan.

Rana, M.A.. 2010. "Formalising the Informal: The Commercialisation of Bt Cotton in Pakistan." In Melbourne School of Land and Environment. PhD dissertation. Melbourne: The University of Melbourne. 2013. 18th Constitutional Amendment: Contextualising Fiscal and Administrative Decentralisation. Lahore: Lahore University of Management Sciences.

Flaherty, K., M. Sharif, and D.J. Spielman. 2012. Pakistan: Recent Developments in Agricultural Research. Islamabad: Paki-stan Agricultural Research Council. Francis Kanoi. 2013. Cotton Crop Track 2013-14: Usage of Seeds. Chennai: Francis Kanoi Marketing Research.

Rana, M.A., H. Khawar, A. Tahawar, and H.S. Rana. 2013. Exploring Dynamics of Cotton Seed Provision in Sindh: Informing Policy and Business Decisions. Lahore: International Growth Centre. 31 SUMMARY | APRIL 2010

FSC&RD (Federal Seed Certification and Registration Department). 2001. Seed Industry Development in Pakistan. Islama-bad: Federal Seed Certification and Registration Department, Government of Pakistan.

Salam, A. 2012. Review of Input and Output Policies for Cereal Production in Pakistan. Islamabad: Pakistan Strategy Sup-port Program, International Food Policy Research Institute.

———. 2009. Annual Progress Report. Islamabad: Federal Seed Certification and Registration Department, Government of Pakistan. Government of Punjab. 2011. Draft Punjab Seed Act, 2011. Lahore: Department of Agriculture, Government of Punjab.

Sarwar, B. 2007. Formal and Informal Seed Supply System in Pakistan. Islamabad: Federal Seed Certification and Registra-tion Department, Ministry of Food Security and Research, Government of Pakistan.

Hussain, A. 2011. "Status of Seed Industry in Pakistan." Presentation at World Bank Roundtable Discussion on Agriculture and Water, Islamabad, Pakistan. March 10–11.

Spielman, D.J., D. Kolady, A. Cavalieri, and N.C. Rao. 2011. The Seed and Agricultural Biotechnology Industries in India. Washington, D.C.: International Food Policy Research Institute.

Hussain, A., and T. Hussain. 2007. Seed Industry of Pakistan. Islamabad: Federal Seed Certification and Registration De-partment.

UAF (University of Agriculture Faisalabad). 2013. University of Agriculture, Faisalabad: profile. www.uaf.edu.pk, accessed November 2013.

Printed With Kind Permission Of Author. “The Seed Industry in Pakistan- Regulation, Politics and Entrepreneurship/Pakistan Strategy Support Program Working Paper No. 19. Islamabad/Washington DC. IFPRI/PSSP - IFPRI”

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Seed Trade in

Bangladesh

Seed Policies and Regulations - India & Bangladesh - CUTS International

Seed Policies and Regulations in India The Seeds Act 1966

legislation. Some of these include Central Seed Committee (CSC), Central Seed Certification Board (CSCB), Seed Certification Authority (SCA), Central Seed Testing Laboratory (CSTL), and State Seed Testing Laboratories (SSTLs). The Act also provided for regulation regarding the sale of seed; and the establishment of suitable law enforcement machinery.

eed legislation is India has passed through different phases. One can recall that until the mid1960s, there was no legislation governing the quality of seeds sold to farmers. Beginning sixties, the rapid development of agricultural production with the introduction of hybrid varieties of maize, jowar and bajra, and dwarf varieties of wheat and paddy necessitated the enactment of seed legislation. The first seed legislation in the Seeds Act was passed in December 1966, and the Act came into force in October 1969. The Act empowered the central government to make rules to carry out the purposes of the Act and to give directions to state governments, if necessary, for carrying into execution, in the state concerned, the provisions of the Act or Rules. The Seeds Act of 1966 had three main features. First, the Act applied to only notified varieties of seeds used for sowing; second, it provided for the formation of a number of statutory authorities that were required to fully implement the

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The Seeds Act that was implemented in 1966 had several provisions to regulate seeds market. Some of the provisions included: a) Seed certification is voluntary requirement, implying that seed producing and marketing agencies may or may not get their seed certified; b) the work of seed certification can be done only by an officially sanctioned agency notified for a particular area; c) the certified seed producers are required to comply with all the requirements set forth for seed certification by the certification agency; among others.

Business Opportunities in Agri/Seed Segment in SAARC Countries

Seed Policies and Regulations - India & Bangladesh

through domestic and foreign investment, which will ensure the availability of high quality seeds and planting material to Indian farmers.

Seeds (Control) Order 1983 and New Policy on Seed Development 1988 To deal with issues such as compulsory licensing of the seed dealers, price control, and submission of information about procurement and sale of seed, which were conspicuous by their absence in the Seeds Act 1966, the Government of India issued Seeds (Control) Order 1983 under the Essential Commodities Act, 1955 to license seed dealers (those engaged in selling, exporting and importing seeds, including their a ge n t s ) t h ro u g h o u t t h e co u n t r y. T h e O rd e r empowered the State Governments/ Union Territories to either compulsorily license all the seed dealers within their jurisdiction or exempt such class of seed dealers, deemed fit to it through official Gazette Notification. It was made categorically clear that all persons carrying on the business of selling, exporting and importing seeds will be required to carry on the business in accordance with terms and conditions of license granted to him.

Some of the important provisions of the Act include,

After careful consideration of emerging dynamics, a New Policy on Seed Development 1988 evolved to provide Indian farmers with access to the best available seeds and planting materials, domestic as well as imported. The Policy permitted the import of selected seeds under Open General License10 (OGL), and put special emphasis on four major areas: a) import of high quality seeds; b) a time boundprogramme to strengthen/ se plant quarantine facilities; c) effective observance of procedures for quarantine/post entry quarantine (PEQ); and d) incentives to encourage the domestic seed industry.

The legislation contains provisions for compulsory licensing in the public interest;

The legislation extends to all categories of plants except micro-organisms.

In order to be eligible for protection, a variety must pass through the DUS (distinct, uniform and stable) test.

Farmers will continue to enjoy their traditional rights to save, use, exchange, and share their produce of the protected variety with only restriction that the farmers will not be able to commercially sell their seeds

There is provision for protection of different kinds of already existing varieties, which is supported by a provision for essentially derived varieties for honouring the contribution of an earlier breeder.

Benefit sharing with owners of earlier protected varieties, and compulsory licensing to get the production of seed of a registered variety undertaken by institutions when the reasonable requirements of the public for seed have not been satisfied.

Two years after the introduction of the Act, in 2003 Protection of Plant Varieties Rules, 2003 were introduced for the implementation of the Act, 2001. The rules provide detailed procedures while applying for protection, ways of administering the national gene fund, procedure on application for compensation, procedure to alter the denomination of a registered variety, procedure for cancellation of certificate and all other procedures to be implemented as per the provisions given in the Act, 2001.

The policy was immediately followed by an order by the government of India (Plants, Fruits and Seeds Order) to regulate the import of agricultural items into India.

Protection of Plant Varieties and Farmer's Rights Act, 2001 Another major development with regard to seed industry in India occurred in 2001, when the government brought in Protection of Plant Varieties and Farmers· Rights Act, 2001. It has the following two objectives: a) to stimulate investments for research and development both in public and private sectors for the development of new plant varieties by ensuring appropriate returns on such investments; and b) to facilitate the growth of seed industry in the country

Seed Times Jan. - Mar. 2015

National Seeds Policy, 2002 The Seeds Act, 1966, Seeds (Control) Order 1983, promulgated there under, and the New Policy on Seeds Development, 1988 form the basis of promotion and regulation of the Seed Industry in India. Formulation and introduction of the National Seeds Policy 2002 was a significant development

Business Opportunities in Agri/Seed Segment in SAARC Countries

Seed Policies and Regulations - India & Bangladesh

infrastructure and market opportunities to help India achieve a place of prominence in the international market.

relating to the seeds regime in India. A major objective of the NSP 2002 was to raise India's share in the global seed trade by providing financial and advanced scientific assistance to farmers so that they can increase production and yield for export purposes. The policy encourages private sector participation in research and development of new plant varieties.

T h e e x p o r t p o l i c y s p e c i f i c a l l y e n c o u ra g e s establishment and strengthening of Seeds Export Promotion Zones with special incentives by the government. In addition, it seeks to create a data bank to provide information on the international market and on export potential of Indian varieties in different parts of the world.

There are several thrust areas of the NSP 2002. These cover various facets of seed industry and its usage by the farmers, and include the followings: ·

Varietal Development and Plant Variety Protection;

Seed Production;

Quality Assurance;

Seed Distribution and Marketing;

Infrastructure Facilities;

Transgenic Plant Varieties;

Import of Seeds and Planting Material;

Export of Seeds;

Promotion of Domestic Seed Industry; and

Strengthening of Monitoring System.

Interestingly, trade policy relating to seeds is quite open and encourages both import and export of seeds varieties, except in some specific cases. That way, the seed-related policy/legislations, especially seeds trade, do not come in the way of increased trade of seeds between India and other countries, including Bangladesh. Some of the aims of the NSP 2002 such as development of infrastructure, ensuring supply of good quality seeds and facilitation of the seed trade are sought to be addressed through the proposed Seeds Bill, 2004.

Seeds Bill, 2004 The Seeds Bill, 2004 is remains controversial. The Bill, y e t t o b e p a s s e d b y Pa r l i a m e n t , s e e k s t o regulate the production, distribution and sale of seeds. It requires every seller (including farmers) to meet certain minimum standards of seeds. However, the Parliamentary Standing Committee is not in favour of farmers being required to meet certain criteria in selling or exchange of seeds. It has recommended that farmers selling or exchanging seeds from other farmers be exempt from this requirement. The government proposed new amendments to the Bill in April 2010 and November 2010, accepting most of the recommendations given by the Standing Committee.

The policy has clear provisions for trade (import and export) in seeds. The major objective of the policy relating to import of seeds is to provide the best planting material available anywhere in the world to Indian farmers, to increase productivity, farm income and export. In addition, it also seeks to ensure that there is no deleterious effect on environment, health and bio-safety. The policy makes it clear that all imports of seeds will require a permit granted by the Plant Protection Advisor to the government of India, which will be issued within the minimum possible time frame. All import of seeds and planting materials, etc. will be allowed freely subject to EXIM Policy guidelines and the requirements of the Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989 as amended from time to time. Import of parental lines of newly developed varieties will also be encouraged.

The new Bill with proposed amendments aims to regulate the quality of seeds sold, and replaces the Seeds Act, 1966. All varieties of seeds for sale have to be registered. The seeds are required to meet certain prescribed minimum standards. Transgenic varieties of seeds can be registered only after the applicant has o b ta i n e d c l ea ra n ce u n d e r t h e E n v i ro n m e n t (Protection) Act, 1986. In addition, the label of a seed container has to indicate specified information.

The government seeks to evolve a long-term policy for export of seeds with a view to raise India's share of global seed export from the present level of less than 1 percent to 10 percent by the year 2020. It also recognises the need for strong seed production

Seed Times Jan. - Mar. 2015

Most importantly, the proposed Bill requires that if a

Business Opportunities in Agri/Seed Segment in SAARC Countries

Seed Policies and Regulations - India & Bangladesh

increase in the area under cultivation of certified seeds of HYV. Besides rice, this covers other crops as well. The area under certified seeds of all crops has increased from less than 500 hectares in 1962-63 to over 5 lakh hectares in 1999- 2000.

registered variety of seed fails to perform up to e x p e c t e d s ta n d a r d s , t h e fa r m e r c a n c l a i m compensation from the producer or dealer. The Bill provides for setting up a compensation committee that shall hear and decide these cases. It also provides for an appellate mechanism to be set up by notification. The penalty for contravening any provision of the Act or selling misbranded or substandard seeds is a fine ranging between Rs 25,000 and Rs 1 lakh. The penalty for giving false information may incur a prison term for up to a year and/or a fine of up to Rs 5 lakh.

Another major difference between the present and old regimes is that the role of the private sector has significantly changed in the present regime, while in the old regime, both the production and distribution of HYV seeds was carried out essentially through public sector institutions. This development is primarily because of the failure of the public sector to meet the growing demand for seeds. This, in fact, created incentives for private sector to supply seeds. It is also noticed that while the New Policy on Seed Development, 1988, allowed only limited trade of commercial seeds; trade became more open and liberalised in later periods. In 1990s, economic reforms allowed the entry of foreign companies with majority foreign equity, compared to 40 percent equity allowed earlier. As indicated above, major changes were proposed in the National Seeds Policy of 2002, allowing imports and exports of seeds of all crops including rice.

Summarising the overall development since the eighties, one can argue that the present seed regime in India marks a new phase of commercialisation of Indian agriculture, with adequate protection to farmers, especially small and marginal ones. One also notices far-reaching changes that have taken place in the national economic and agricultural scenario and in the international environment since the enactment of the existing seed legislation and the announcement of the 1988 Policy. These also have resulted in a gradual and clear shift from traditional varieties to high yielding variety (HYV). This shift is based on the

Box 3.1 List of Seed - Related Legislations and Regulations in India    

           

Enactment of the Seeds Act, 1966 Seed Review Team -SRT (1968) National Commission on Agriculture's Seed Group (1972) Launching of the World Bank aided National Seeds Programme (1975-85) in three phases leading to the creation of State Seeds Corporations, State Seed Certiﬁcation Agencies, State Seed Testing Laboratories, Breeder Seed Programmes etc Seed Control Order (1983) Creation of the Technology Mission on Oil seeds & Pulses (TMOP) in 1986 now called The Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM). Production and Distribution Subsidy Distribution of Seed Mini-kits Seed transport Subsidy Scheme (1987) New Policy on Seed Development (1988) Seed Bank Scheme (2000) National Seed Policy (2002) The Seeds Bill (2004) Formulation of National Seeds Plan (2005) National Food Security Mission (2007) Rashtriya Krishi Vikas Yojana (2007)

Source : Indian Seed Sector available at http:/ seednet.gov.in /Material/Indian seed sector .htm

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Seed Policies and Regulations - India & Bangladesh

supports, balanced development of public and private sector seed enterprises;

Over the past few decades, the overall seeds industry in India (including the rice seed-producing sector) has expanded significantly because of positive policy and infrastructural changes. Currently, the market size is estimated at US$2,000mn for the overall seeds sector (rice seed constitutes a large part of it).

* to simplify the importation, for research and commercial purposes, of high quality seeds and planting materials; * to promote seed technology by providing training and technical supports to agricultural specialists and professionals, farmers and workers, and private seed growers and merchants in seed production, processing, storage and use of high quality seeds; and

Seed Policies and Regulations in Bangladesh The evolution of seeds regime in Bangladesh is summarised in a report. There are at least three important seed-related laws in Bangladesh, namely, (i) The National Seed Policy (1993); (ii) The Seed Ordinance, 1977 (Amendments in 1997 and 2005), and (iii) The Seed Rules, 1998. In addition, Plant Quarantine Acts and Rules are considered part of the regulatory framework affecting the seed sector. These are briefly described here under to understand the evolution of the seeds regime in Bangladesh.

* to monitor control and regulate the quality and quantity of seeds produced as well as development and commercialisation of the seed industry. The National Seed Policy 1993 clearly recognises importance of quality seeds to enhance agricultural production and thereby achieving self-sufficiency in food production. The policy makes it clear that effectiveness of other inputs like fertiliser and irrigation depends largely on good seed. It also provides for policy directives to increase production of improved seed both in the public and private sectors and for making best quality seeds available to the farmers on timely basis, and at competitive price. The seed policy has also provisions, among other things, for liberalisation of import of seed and seed-processing machineries, strengthening of quality control and research system and maintaining a seed security arrangement. A major thrust of the seed policy has been on the institutional arrangement of the seed sector.

The National Seed Policy, 1993 Bangladesh National Seed Policy (NSP) was introduced in 1993. The policy is premised on a draft prepared by a committee, formed by the Ministry of Agriculture, government of Bangladesh. The Committee reviewed the seed policies of a number of neighbouring countries and drafted a National Seed Policy drawing lessons and inputs from the experiences of countries having similar agroecological and socio-economic settings. The overall purpose of this policy is to make the best quality seeds of improved varieties of crops conveniently and efficiently available to farmers with a view to increasing crop production, farmer's productivity, per-capita farm income and export earnings. Specific objectives of the policy include the followings:

The Seed Ordinance 1977 (The Seed Act Amendments in 1997 and 2005) The Seed Ordinance 1977 stipulates the role and function of the National Seed Board and the Seed Certification Agency (SCA). It also provides clauses for the import and export of seeds, the representation of board members, regulations of standards for quality of seed, approval and registration of new varieties, labelling of seeds and the functions of SCA and penalties for violating the ordinance or rules.

* to breed, develop and maintain improved crop varieties with special emphasis on those suitable for high-input and high-output agriculture; * to multiply and distribute, on a timely basis, to all farmers sufficient quantities of quality seed of improved high yielding varieties that are resistant or tolerant to disease and insect pests;

Seed Rules 1998 The Seed Rules also play an important role in regulation of seed industry. It elaborates on the function of the National Seed Board (NSB) and on the procedures for registration of seed dealers, registration

* to promote farmer's acceptance and use of improved varieties of seeds; * to promote, through education, training and financial

Seed Times Jan. - Mar. 2015

Business Opportunities in Agri/Seed Segment in SAARC Countries

Seed Policies and Regulations - India & Bangladesh

duly described. Further, any individual, company or agency that wishes to import seed, develop and register new seed varieties, or package seed in labelled containers must first be registered with the NSB. Registration will be automatic by paying the prescribed fees. To facilitate smooth import of seeds, the policy stipulates that importers of seeds and seed-processing equipment will be made eligible for allotment of foreign exchange. Seed merchants will be allowed to enter into supplier's credit arrangements with foreign seed suppliers. Finally, the policy recognises importance of importing improved seeds which may contribute in ensuring food security for the country.

of varieties and labelling of the seed offered for sale in sealed containers or packets. Besides, it also highlights the functions of the SCA and its seed inspectors and describes in detail the seed regulatory framework and stipulates the forms and procedures in relation to application for variety registration, field inspection, seed certification and market control. The 1998 amendment of Seed Policy of the 1993 has made provisions for active participation of the private sector and NGOs. In Bangladesh NGOs have their own foundation seed farms, and to some extent their own processing and storage facilities (Bashar et al. in Mele et al. 2005). But NGOs often lack the equipment and skills, resulting in questionable seed quality. Interestingly, the public research institutions, appears to have developed linkages with the public sector seed agencies, private companies and NGOs. However, the linkages are largely confined to the distribution of breeder seeds. There are also inadequate linkages between research institutions and BADC and NGOs during the variety testing and delivery of improved varieties.

How do India and Bangladesh Complement Each Other? Tripp (2003) says that for rice seed, regulatory reforms in Bangladesh and India repeat some common themes but are far from identical. Prior to the reforms, Bangladesh had compulsory variety registration. Bangladesh reduced barriers to new varieties by making variety registration voluntary for all major crops, including rice. India had voluntary variety registration for several decades. Relaxation of seed import controls has played a major role in improving technology transfer in India. Since 1988, India has allowed imports of commercial seed, parent seed, and germ plasm for vegetables but blocked private imports for rice, including germ plasm for breeding (Gisselquist et al. 2002; Tripp and Pal 2001). The development of a seed industry requires consideration of appropriate regulatory frameworks.

It is also noticed that in case of quality control, SCA has its network all over the country but its linkages with the private sector and NGOs are mainly confined to the foundation seeds. Since BADC's operation is subsidised by the government, the private sector cannot compete with BADC, which constrains expansion of the private sector's network of seed growers. Despite this limitation, the entry of the private sector and NGOs has brought a structural change in the seed delivery system (Hossain et al. 2001).

MNCs, which account for a major share of breeding investments, carry out breeding activities in some countries, and sell their products in many countries. In case of India and Bangladesh, one can argue that Bangladesh is so close to India that companies could breed in either one for both, and sell the product in other or both the countries. India has a much larger market and higher research efficiency. India, with its large population, presents one of the largest potential seed markets in the world. This can be used by Bangladesh, if it comes out with good quality seeds that could be useful to both India and Bangladesh. However, the gains from liberalising import policies will ultimately depend on how much technology is available from regions with similar agroclimatic conditions.

On the issue of trade in seeds, there are clear guidelines. The NSP prescribes that except for appropriate plant quarantine safeguards, restrictions on importation of seeds are to be eliminated. Approved varieties of rice, wheat, jute, potato and sugarcane may be imported for commercial sale. However, registered seed growers will be permitted to import small quantities of seeds of rice, wheat, jute, potato and sugarcane for adaptability testing. The policy also requires that any variety, whether imported or developed in Bangladesh, must be registered with the NSB. The registration will require the characteristics and attributes of the variety to be

From the Book â&#x20AC;&#x153;Dynamics of Rice Seeds Tradeâ&#x20AC;?. Reprinted with the kind permission of CUTS International.

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Accelerating Seed Sector Development In Bangladesh

Firdousi Naher, IFPRI International Food Policy Research Institute Bangladesh Policy Research and Strategy Support Program

he seed system in Bangladesh has undergone a s u b s t a n t i a l c h a n g e s i n ce t h e co u n t r y 's independence four decades ago. From being solely a public sector entity, the system has matured over time with the expansion of the agricultural research organizations, reforms in the extension services and the entry of private seed companies. This trend of g ra d u a l d e r e g u l a t i o n co m m e n ce d w i t h t h e formulation of the National Seed Policy in the early 1990s which paved pathways for the private sector and the Non-Governmental Organizations (NGOs) to have a share in the seed sector development alongside the large parastatal, the Bangladesh Agricultural Development Corporation (BADC). In particular, there had been an increasing participation of local as well and multinational seed companies which have contributed to the twin objectives of increasing seed availability and crop yield, particularly for the medium and large farmers. However, questions have been raised on the ability of these developments to respond to the needs of the small and marginal farmers who are, often, seed insecure. A second issue associated with seed system development has been the poor performance of the National Agricultural Research Systems (NARS) which has witnessed continued stagnation in pipeline that produces improved cultivars.

The critical importance of modern, high-yielding, quality seed in a severely land-crunched country such as Bangladesh can hardly be overemphasized. Since the early 1970s, rice production has tripled while the harvested area has gone up by only 10 per cent. The contribution of technological advancements in attaining such an increase in rice production is evident since the area under traditional varieties has gradually given way to accommodate modern, high-yielding varieties. The systematic and continuous introduction of improved varieties and good quality seed are a vital dimension of sustained agricultural productivity growth. By making modern cultivated varieties widely available, farmers can often produce enough to feed a nation. The application of modern science to agriculture also means that seed becomes a “technology” and the gains from that technology must be distributed in a manner that encourages continued production and innovation. It is the role of the policymaker to develop policies that encourage both production and innovation to benefit society. However, despite the liberalization in the seed sector, constraints remain in the seed regulatory framework that inhibit private sector development and hold it back from complementing the role of the public sector.

This note is based on F. Naher and D. Spielman, “Seeding the Future: Accelerating Seed System Development in Bangladesh”, prepared under the Bangladesh Policy Research and Strategy Support Program, funded by USAID and implemented by IFPRI. The views and opinions contained in the note are those of the author and are not necessarily shared by IFPRI or USAID.

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Accelerating Seed Sector Development In Bangladesh

Bangladesh might reasonably expect its national research system to perform at in the future. In addition, it is critical to revive the agricultural research capacity that has also deteriorated over time with the brain drain of qualified and experienced researchers.

The continued role of the state in many aspects of the seed system discourages sustainable private investment in the development, production, and marketing of improved cultivars. The need is for an appropriate delineation of roles for the private and public sectors so as to foster healthy linkages between the two.

There is a second constraint that is more directly relevant to the seed system. Although the seed system is an important supplier of improved germplasm for state owned seed companies and farms, many private sector firms and farmer organizations argue that they do not have equitable access to that same germplasm. This limits the innovation pipeline from the research system to seed producers and, ultimately, to farmers. There is a need for both greater investment and deep structural reforms in the research system. This implies (i) widening the R&D pipeline with more and more frequent releases, and with increased access to breeder/foundation seed for all seed system actors, (ii) Increased, sustained investment in national research system, and (iii) reforms to research structures, management, funding systems.

Role of the Public Sector: BADC, NARS and DAE The public sector's role in Bangladesh's seed system revolves around three pillars: the NARS for cultivar improvement, the BADC in seed production, and the Department for Agriculture Extension (DAE) for extension and advisory services. The most pressing issue regarding Bangladesh's seed system may be the role of BADC. In theory, the 1993 National Seed Policy aims to relegate BADC to the role of foundation seed producer for non-notified crops, thereby creating a financially viable public supplier of high quality material to small and medium-sized seed enterprises who can produce and market improved cultivars directly to farmers. This particular arrangement has been applied in India and other developing countries, and has contributed to the growth of private seed industries.

An important role in the seed system is that of the Department of Agriculture Extension (DAE) in terms of transmission of information on new cultivars to farmers and crop management practices. Some NGOs also provide extension services but their catchment area is, understandably, very limited. With extension services being at a minimum, the country-wide network of DAE offices and field workers remains a highly underutilized facility. Farmer-to-farmer dissemination of information on issues such as crop variety, input dosages, and other advice is the dominant channel.

Indeed, in compliance with the spirit of the policy, BADC is increasing its production of foundation seed. Yet BADC remains active in the production of certified and truthfully labeled seed for a wide range of crops, including hybrid maize where the private sector has a well-established comparative advantage. Meanwhile, BADC continues to price seed well below its costs of production, suggesting continued reliance on public funds to make ends meet. In fact, BADC may also be crowding out private investment in breeding, production, and marketing of certain crops, and it may be wasting scarce public resources by competing with the private sector in the maize seed market.

Creating a Level Playing Field for the Private Sector The National Seed Policy 1993 specifically mentions that BADC will adhere to the production of seeds of only publicly bred notified crops (rice, wheat, potato, sugarcane and jute) and will gradually withdraw from the production of seeds of all other crops. Indeed it continues to produce large quantities of foundation seeds of these crops. At the same time, it also produces large quantities of certified seeds and TFL seeds of nonnotified crops. The Policy also clearly states that the BADC's seed price should reflect costs more closely and subsidies should ultimately be phased out. Two decades later, the BADC is still selling seeds subsidized to the extent of 50-100 percent depending on the type

For the public research system, funding has been insufficient relative to the needs and expectations of the country. Agricultural R&D spending as a share of GDP from agriculture has hovered between 0.31 percent and 0.46 percent during the decade 2000-2009. Though agricultural R&D intensity in Bangladesh compares favorably with India and Pakistan, it falls well below countries such as Malaysia which spends more than 1 percent of its GDP from agriculture on R&D. This could serve as a useful benchmark for the level

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of seed. The Seed (Amendment) Act 2005 allows only the public sector (NARS and public agricultural universities) to develop new varieties of notified crops. This is contrary to the seed policy that lays down that private initiative for plant breeding will be allowed. Thus, despite the pledge to create a 'level playing field', which will enable the private sector and public sector to complement each other, the reality is very different. Private seed companies are gradually withdrawing from selling seeds of open pollinated varieties while BADC is enjoying an advantage by marketing their seeds at less than cost price.

Simplifying Variety Testing and Release Process Notified crops have to go through a cumbersome registration procedure, which, coupled with slow processing, tends to limit the number of improved cultivars that can be registered and put into production. New waiting-to-be released varieties have already been through a rigorous trial regime under the plant breeder. Yet another round of performance trials prior to their registration results in excessive delays. The varietal registration process could be rationalized through coordination among R&D institutions and the BADC, DAE, NGOs and seed companies during the variety testing and release process. For varieties that are registered and in use in neighboring countries with similar production environments, the requirement to register those varieties again when introduced in B a n g l a d e s h m a y b e r e l a x e d . M o r e o v e r, a harmonization of research for varietal testing among the different R&D institutes, along the lines that is prevalent in India, would ensure participatory testing of advanced lines across agro-ecological zones and facilitate movement of breeding material among the institutes. For performance testing, there is need for a greater participation by farmers' groups who are the ultimate decision makers of adoption of the variety best suited for specific environments. The All India Coordinated Crop Improvement Program, for example, is actively involved in Front-Line Demonstrations on improved technologies and is also organizing Kisan Melas for effective and speedy dissemination of newer technologies.

The government must recognize the inadequacies of the private sector. Private companies will conduct research on hybrid crops such as maize and sunflower which have a high-value, low volume market but will rarely breed open â&#x20AC;&#x201C;pollinated crops such as rice and wheat unless plant breeders' right are enforced. Neither will they invest in the production and distribution of most self-pollinated crops because they cannot compete with the farmers. Thus, the government must continue to breed open-pollinated crops and produce enough foundation seeds to ensure that farmers can spread the new varieties. There is s co p e f o r a s l o w w i t h d ra w a l o f B A D C f r o m certified/quality seed production and into foundation seed supply to private companies. This is a fiscally responsible solution to strengthening the seed market, but it assumes that private firms and cooperatives will step in to fill the gap. One must tread cautiously since the open pollinated crop reproductive biology may not provide sufficient incentives for private sector investment. That said, a withdrawal of state-owned seed companies may work if accompanied by regulatory easing and business reforms that encourage private firms and cooperatives to invest in the seed industry. These reforms include tax incentives and tariff reductions for importation of production equipment and materials, as well as targeted financing from the public or private sector to encourage the industry. Less attention can probably be given to those markets where private firms are more likely to concentrate, i.e., the higher-value market for hybrids or horticulture crops where farmers prefer to purchase high-quality seed each year. In these markets, the key is to maintain strong investment incentives by rationalizing the imposition of taxes, tariffs on imported equipment and materials, and ad-hoc non-tariff barriers that seem to be discouraging investment.

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Seed Quality Control and Reforming the Seed Certification Agency The Seed Certification Agency (SCA) is the principal regulatory body in Bangladesh, responsible for seed certification and market monitoring. The country saw a major policy change in 1998 when the mandatory provision for seed certification was relaxed to allow for truthful labeling and the private sector was allowed to market TFL seeds. Almost 80 percent of the seeds supplied to the farmers are TFL seeds and BADC markets the lion's share of these. BADC has its own internal quality control system but many private agencies are also selling TFL seeds with little capacity and capability for quality control. SCA has very limited capacity to monitor seed quality once it reaches the market and is purchased by farmers. With only 30 field

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officers and 6 regional seed testing laboratories, the organization is under-funded and under-equipped to perform the wide-ranging duties assigned to it. An equally important element of seed quality control is to have strict penalties for fraudulent seed production and marketing and other activities that diminish the quality of the seed - an area often overlooked in Bangladesh.

Reviewing and Prioritizing Research and Development

The SCA also certifies breeder seed. Early generation seed warrants stringent controls since impurities introduced at this stage keep on getting amplified for generations. Breeder seed certification requires special technical skills, which are best left to special committees, as is the case in neighboring India. Moreover maintenance breeding to preserve yield potential through improved resistance to rapidly evolving biotic and abiotic stresses plays a critical role in seed system development. However maintenance breeding is very poor in Bangladesh, both in terms of capacity and resources, and needs to be strengthened.

There is an urgent need to review the current mandate of the agricultural research organizations to meet emerging needs and to rectify overlaps. The usefulness of the network of stations and sub-stations needs to be assessed including the possibility of closing redundant establishments. The deterioration of expertise must be checked and an appropriate pool of skill mix should be created. With growing populations, the strong need for increasing cereal productivity is understandable. But the rice-centric research efforts in Bangladesh have relegated other high-value nutrient-dense food crops to the background. Agricultural research should maintain a fine balance between the objective of continued food security for the masses and research and investment made for diversification out of primary staples. Farmers' flexibility in making crop choices must be made a priority through research at both the crop level and system level.

Relaxing Seed Import Barriers

Tightening the Role of Agriculture Extension

To import any type of seed into Bangladesh, an import permit (issued by the Plant Protection Wing of the DAE) and a phytosanitary certificate from the exporting country are required. In addition, imported varieties of the five notified crops (rice, wheat, potatoes, jute and sugarcane) must be listed on the official list of varieties and must comply with the crop specific standards. To top these, are a series of tax and non-tax barriers that add up to the cost of private investment in the seed industry. Needless to mention, the final tax burden is on the farmer. An advance income tax of three percent is levied on imported rice seed. The tax structure for wrapped and canned seed is higher than unwrapped and un-canned seed with the result that latter group is more preferred by importers. The point of having a phytosanitary certificate from the country of origin is to ensure that the seed is of good quality. However, on reaching the port, plant quarantine offices often want to conduct further checks on the quality of the seed that add up on the costs and time. Reforming the seed tax structure by easing of taxation, tariffs, and nontariff barriers and also by harmonizing and rationalizing the plant quarantine act and the export policy for seed is crucial for overall seed sector development. Tax imposition should be reviewed in the light of quality seed supply at a cheaper price to the farmers.

There is a dire need to reform the extension service structure and delivery to fully exploit the benefits of the large, country-wide set-up that DAE already has. The financial sustainability of the extension services is often questioned â&#x20AC;&#x201C; more than 90 percent of the annual revenue budget is spent on staff salaries while the operational funds for extension activities are largely provided by externally funded projects which serve specific objectives of individual projects (World Bank 2005). The cost-structure should be rationalized providing for relocating staff from places (where private extension services run parallel alongside public extension) to marginalized areas. The extension agents should give feedback on actual field experience to the research institutes and help provide the crucial link between the farmers and the R&D institutes. It is critically important to develop the capacity of the extension staff through appropriate trainings which enhance their understanding of the agro-ecologies and location-specificity of production conditions. The staff should also be incentivized through a system of performance-related rewards or bonuses. Finally, there is a need to have a greater involvement of the private sector in extension service provision that can complement the public service and, perhaps, aid in shifting some of the latter to more remote, marginalized areas.

Reprinted with the kind permission of author Firdousi Naher, International Food Policy Research Institute, Bangladesh, Policy Research and Strategy Support Program.

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Rice Seeds Industry Structure and Seed Delivery Mechanism - CUTS International

including but not limited to public institutions, private sector seed producing companies, farmers and NGOs. In other words, the seed delivery system consists of channels through which seeds pass through from the stage of development (seed developer) to the stage of final usage (farmers). More specifically, it encompasses development of Breeder Seeds (BS), Foundation Seeds (FS), Certified Seeds (CS), and Truthfully Labelled Seeds (TL).

proper and effective seeds (rice) flow mechanism, also called seed delivery system, is very important for a sustainable growth of farm sector in developing countries, especially in South Asia. This proper and effective seed delivery mechanism implies that good quality seeds are available to farmers at right time and at affordable prices. At the same time, it implies that the system has the involvement of all the stakeholders,

Box 4.1: Understanding Types of Seeds Nucleus seed/stock: When a new variety is released there is very little seed. There may be only a handful of seed selected by the breeder from individual plants. This seed is the basis of a variety and is known as the Nucleus Stock. This nucleus stock must be managed with great care so that all seed produced from it remains true to the new variety. The nucleus stock seed is not available to farmers. The next step in the chain from plant breeder to farmer is that the plant breeder develops Breeder seed. Breeder seed: Breeder seed is the seed of the highest purity of the new variety. It is produced by the breeder and provided by the breeder's institution to agencies for further multiplication. Breeder seed is the most expensive seed to buy. Foundation seed: Foundation seed is the seed produced from growing breeder seed. It is produced by trained officers of an agricultural station to national standards and handled to maintain the genetic purity of the variety. It may be produced by a government seed production farm/ a private organisation. Foundation seed is less expensive than breeder seed. Certified seed: Certified seed is produced from growing foundation, registered or certified seed. It is grown by selected farmers to maintain sufficient varietal purity. Production is subject to field and seed inspections prior to approval by the certifying agency. Harvest from this class is used for producing again. Truthfully Labelled Seeds: Truthfully labelled seed is produced from foundation, registered or certified seed. It is not subject to inspection by a certifying agency. Its quality is dependent on the good reputation of the farmer who has grown the seed. Source: IRRI 2013

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Effectiveness of a seed flow system is reflected by rising seed replacement rates, which has a direct bearing on crop yields. Experiences show that average paddy yields tend to be relatively high in those areas where seed replacement rate is high. As far as quality of seeds is concerned, this is not restricted to modern varieties; rather it also applies to farmer's saved seeds.

In Bangladesh, Bangladesh Rice Research Institute (BRRI) is responsible for producing breeder seed. BRRI produces and supplies breeder seed to the Bangladesh Agricultural Development Corporation (BADC) which multiplies the seed and distributes it nationwide. In case of BADC (renamed in 1975), it might be recalled that BADC (the successor of the successor of the East Pakistan Agricultural Development Corporation) was created in 1961 with a number of important roles. The primary function of BADC is to make suitable arrangements for the production, procurement, transport, storage and distribution of essential agricultural inputs such as seed and fertiliser and provide irrigation facilities through utilisation of surface and underground water to the farmers. The organisation spearheaded the revolution in minor irrigation in Bangladesh.

Bangladesh: Rice Seeds Flow, Institutional and Industry Issues Presently there are a numbers of stakeholders involved in the rice seed delivery system. The delivery system practically seeks to combine and integrate activities of all the stakeholders in Bangladesh to serve the farmers. More specifically, there are four prospective participating entities in the seed delivery system viz., the public sector, the private sector, NGOs and farmer's organisations. They seek to ensure adequate supply of quality seeds of modern varieties at affordable prices in the right time to farmers. The system duly recognises the need for supportive institutional and policy conditions for active participation of all key entities and for strengthening the public-private interface to play their basic roles in an efficient way.

It is, however, noticed that since the middle of the 1980s, the government has been progressively withdrawing from procurement and supply of agricultural inputs. As a consequence, BADC withdrew from minor irrigation. Presently, BADC's role is confined to seeds and monitoring of minor irrigation.

Seed Delivery System Seed delivery system in Bangladesh has five stages. These include: a) the development of new variety which is until now mostly done by the public system; b) stage of the seed delivery system, also done by the public system; c) multiplication of seed currently out by public sector, private sector and NGOs; d) stage of the seed delivery system, which is related to the marketing of seed, being carried out by public sector, private sector and NGOs through their own outlets as well as through private seed dealers; and e) end user i.e. farmers. The basic structure of seed production, marketing and distribution is reflected by Figure 4.1.

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It is observed that since 2003, few private seed producers became involved in the seed network, mostly operating at about the same scale as the local Non-Government Organisations (NGOs) but selling their seed on the private market. Presently, an increasing number of NGOs have embarked on seed production and are also distributing quality seed to the farmers. Despite this, however, BADC and Department of Agricultural Extension remain the largest supplier of rice seeds and they meet about 46 percent of the overall demand for improved rice seeds.

Business Opportunities in Agri/Seed Segment in SAARC Countries

Rice Seeds Industry Structure and Seed Delivery Mechanism

Figure 4.1 : Organisational Chart Of seed System in Bangladesh Ministry of Agriculture Secretariat of National Seed Board, Monitoring implementaion of Seed Policy

National Seed Board Policy, Regulations

Public

Seed Certiﬁcation Agency

NGO

Private

Framers Meet 94% of seed requirement (1999)

32 Organisations having signiﬁcant involvment in agriculture

Certiﬁcation, quality control National Agriculture Research System (NARS)

BARI, BRRI, BJRI, BSRI , BAU, BSMRAU, BINA Varietal development and seed research

Bangladesh Agriculture development Corporation Promotion, Processing, Marketing, internal QC of rice, wheat, potato,jute pulses, oilseed, vegetable

Department of Agriculture Extension Extension of modern varieties

Seed traders/seed Shop mostly seed wholesalers and retailling activities in vegetable seeds

Research Three NGOs Seed Supply Most of the NGOs

Seed Company Production and Marketing of vegetables seeds and hybrid of diﬀrent crops

Nursey Nd seedling Supply Most of the NGOs

Bangladesh Seed Traders and Merchants Association Seedman's Society of Bangladesh Seed Dealers Welfare Associtation Seed Growers Association

Seed Company establishment One NGO has established Seed Company more is expected.

Developing collaberation with diﬀrent stakeholders and processing group interest

Source : BARCIK 2010

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Figure 4.2 : Seed Delivery / Production/ Dstribution system in Bangladesh

Stage1: Activity : Development of new Seed variety Participant : Public Sector

Stage 2: Activity : Production Source Seed (Breeder's Seed) Participant : Public Sector

Seed Delivery/ Production/ Distribution System

Stage 3: Activity : Multiplication of seeds Participant : Public Sector, Private Sector, NGOs

Stage 4: Activity : Marketing seed through heir own outlets as well as through Private seed dealers Participants: Public Sector, Private Sector, NGOs

Stage 5: Activity : seed Utilisation in crop production Participants: Farmers

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Breeder Seeds (BS) BRRI and BINA

Foundation Seeds (FS) BADC is the main agency in charge of production of FS in Bangladesh

Certiﬁed Seeds (CS) BADC produces CS in the farmers ﬁeld through contractual arrangments

There are the three formal marketing channels for distribution of publically produced CS under BADC. These are :  BADC's own widespread marketing network  Licensed Pvt seed dealers, and  NGOs

Business Opportunities in Agri/Seed Segment in SAARC Countries

Rice Seeds Industry Structure and Seed Delivery Mechanism

Interestingly, studies show that no institutional complementarity exists between public and private agencies between production and marketing of seed. A project paper (IFPRI 2012) also shows that basic skill is lacking in seed management with respect to research, extension, production and marketing, which are hindering increasing supply of quality seed. Further, to meet increasing demand for rice seeds, private sector players are investing in biotechnology and importation of hybrid seeds, but their scope appears to be quite limited.

Current Status and Emerging Trend in Rice Seeds Supply in Bangladesh The seed industry in Bangladesh comprises of both public and private sector organisations. In the private sector, there are more than 100 companies involved, with over 5,000 registered seed dealers operating across the country. The expansion of the private sector seed companies has resulted in the engagement of thousands of contract farmers in the formal seed production chain.

It also needs to be highlighted that out of total supply of quality rice seed, government organisations like BADC and DAE supply most of the quantity (84 percent) while the share of private traders and NGOs is considerably low (only 16 percent). BADC gets subsidy by the government, which allows it to provide seeds at a lower cost. However, even this is not sufficient to meet the rice seed requirements of smallholder resource-poor farmers. These farmers have less access to BADC seed, and therefore, they have to depend on the private sector for purchasing quality rice seed at a high price (IFPRI 2012).

Bangladesh rice seeds industry does not appear to have performed well, as reflected by existing demand-supply gaps in rice seeds. The poor performance can be understood from the fact that there has been no change in the total seeds requirement in Bangladesh in 2007-08 compared to 2004-05. Data show that during this period, requirement for rice seeds remained almost stagnant at 309,000 tonnes. This is below the requirement in 2004-05 at over 310,000 tonnes. If one compares the requirement for rice seeds in 2005-06 estimated at over 313,000 tonnes, the performance turns out to be worse (Table 4.1).

Table 4.1 : Trend in Rice Seed Requirment in Bangladesh (mt) Type

2004-05

2005-06

2006-07

2007-08

Aus Local

22,800

22,500

Aus HYV

19,650

19,730

15,000

Total Aus

42,450

42,280

37,500

T. Aman

1,24,700

1,24,730

1,38,000

B. Aman

34,650

34,600

30,000

1,59,350

1,59,330

1,68,000

6,200

6,180

4,350

BoroHYV

1,02,400

1,05,680

99,450

Total Boro

1,08,400

1,11,860

1,03,800

Total Paddy

3,10,400

3,13,470

3,09,300

Total . Aman Boro Local

Source : Agriculture Inputs, Bangladesh, http:/www.bbs.gov.bd/WE Test Application/userďŹ les/Image/Arg YearBook 11/Chapter-6.pdf

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quality rice seed is government organisations (Table 4.2).

The table above, in fact, summarises the challenges being faced by the government, as well as the farmers. This is indicative of the fact that the initiatives taken by the government are yet to materialise and benefit the farmers, which could accrue through increased rice seeds replacement rates. The situation becomes worse when one compares rice seeds requirements with distribution.

Another important feature of the Bangladesh seed industry is that apart from the public and private sector seed companies, there are associations in the seed sector. Associations differ as seed companies, growers and dealers. All the associations are members of the National Seed Board. Associations play a vital role in formulating policy to regulate seed business in Bangladesh. Distributors and importers also play an important role in the seed industry. It is observed that distributors/importers import seeds directly from foreign countries and make it available to the farmers

Data on rice seed available for Bangladesh reveals that supply of quality seed is inadequate compared to demand in Bangladesh. For example, in 2007-08, the supply of quality rice seed was 118,500 metric ton against the demand of 306,840 metric tons. This implies

Table 4.2 : Demand and Supply of Quality Seed in Bangladesh, 2007-08 (MT) Foodgrain Type

Demand for quality seed (mt)

BADC

DAE

BRRI

BARI

Private /NGO

Total

Supply as % of demand

Rice

306840

47090 (40%)

52500 (44%)

110 (<1%)

-----

18800 (16%)

118500 (100%)

Wheat

70800

21000 (54%)

18000 (46%)

216 (<1%)

----

39200 (100%)

Maize

5000

470 (10%)

---

4500 (90%)

4970 (100%)

Note : Figures in the parentheses indicate percentage of total supply Source : BADC, 2011

that the supply of quality rice seed was only 39 percent of its demand. This is primarily of low capacity institutions engaged in production and distribution of quality seeds. Among different sources of quality seed, BADC and DAE supplied about 15 percent and 17 percent respectively in 2007-08. In comparison, supply from the private sector dealers/traders and NGOs constituted only 6 percent of the demand

or seed users through wholesalers and retaile s. In the local production- based system of marketing, distributors/marketing organisations are procuring seeds through contract farmers or procuring seeds from reliable seed producers of selected areas, and after cleaning, grading and processing, preserving in seed stores. It has been reported that some factors influence farmers to use seed from unknown sources such as the landowners who dominate the choice of variety; NGOs are supplying seeds in the form of credit.

It is also import to mention that out of total supply of quality rice seed, BADC and DAE supplied 84 percent of total supply while private traders and NGOs supplied only 16 percent, which indicates the major source of

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Table 4.3: Strengths and Weaknesses of Rice Seed Supply Systems in Bangladesh System Variables Conservation and use of germplasm

Strengths

Weakness

BRRI holds the national rice gene bank; BRRI also ensures ready access to germplasm

BRRI's collection and evaluation of local germplasm is outside the order of rice seed network

Breeding/variety selection

BRRI increasingly involves NGOs to identify technology identification with farmer groups

Most associate actors do not select varieties, but use 2-3 varieties already widely available in the area; delay in variety release

Production of breeder seed

BRRI researchers are highly skilled and motivated; BRRI can multiply any variety or accession in small quantities on request; current level of production can be sustained by BRRI

The rice seed network depends on breeder seed supply from BRRI, which relies on government support and commitment; BRRI not allowed to recover costs from breeder seed production, may hamper motivation; limited buffering from natural disasters

Production of breeder seed

BRRI researchers are highly skilled and motivated; BRRI can multiply any variety or accession in small quantities on request; current level of production can be sustained by BRRI

Multiplication of foundation seed

More producers since policy reform, more coverage and flexibility; production by NGOs is incentive based; BADC supports development of new pathways

Supply system needs improvement and strengthening; vulnerable to natural disasters, potentially reduces buffer capacity of BADC

Multiplication of truthfully labelled seed

Many organisations and actors involved at various levels; low transaction costs

Risk of fake seed producers accessing the market; potentially unequal competition from BADC due to government subsidies

Processing/storage

High capacity of BADC; NGOs pay service fee to BADC and other organisations for seed processing; constructive interaction among service suppliers improves national coverage

Capital costs constrain alternative service providers; processing and storage capacity may hinder increase in seed production; risk of losing trust and transparency if seed is processed in a centralised unit

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Quality assurance

Some NGOs have a long record of seed production and quality control, so their seed quality is much better than farm-saved, especially in the dry season

No seed health testing in the official seed certification scheme; staff turnover at SCA due to structural problems; capacity of SCA to assess all requirements for breeder and foundation seed; quality assurance system for truthfully labelled seed depend on market forces and self regulation

Distribution/ marketing

Positive effect of selling less foundation seed to seed farmers; production and distribution networks close to the client, seed farmers participate in marketing; rice seed network is framework for assessing seed markets

Limited business and organisational skills of many organisations

Outlet markets

Potential for linking seed networks to grain markets

Not addressed in rice seed network.

Source: http://www.knowledgebank.irri.org/qualityseedcourse/pdfs/15Propoorseedsystems.pdf

general hybrid rice variety can give 20-30 percent more yield than HYV but development and use are quite complicated, cumbersome and time consuming. They argued that mere use of hybrid rice seeds would not help increase production. It requires measured and timely application but the overwhelming majority of peasant cultivators are illiterate.

Seed Industry and Political Issues in Bangladesh It may be recalled that the Bangladesh government decided to import hybrid rice seeds from India and China in 1998 (Islam 1998); and again in 2008 (Grain 2008) to meet the demand.19 These decisions sparked controversies in both the years 1998 and 2008 among different political quarters, agricultural scientists and also farmers. Political leaders opposed the import from India on political grounds as relations between the two countries were not favourable at that time. On the other hand, it was argued by scientists that use of foreign seed which has not been tested in local conditions would be risky. The critics fear and assume that imports will make farmers dependent on hybrid rice for planting, as seeds will have to be purchased every time. Moreover, the imported seeds are more expensive - one kg of hybrid rice seed costs at least 200 taka (more than 4 dollars) as against 10 taka (roughly 20 US cents) for one kg of locally grown HYV seed.

Dr Mohammed Ali Fakir, a professor of the Department of Plant Pathology, Bangladesh Agriculture University, warned against the use of imported hybrid rice seeds without analysing the cost-benefit ratio of production and testing the reactions of the hybrid rice varieties to diseases. Insects and related agro-ecological conditions critically would be suicidal for the entire crop production of the country.

Problems of Seed Quality in Bangladesh Bangladesh also faces the problem of supply of lower quality seeds. Huda (1993) evaluated quality of certified seed and farmer's seed. It was noted that the quality of farmer's seed was not satisfactory in most cases, though there were some farmers whose seed was of high standard.20 The quality of seedconservation, collection, and hence their value for species restoration, is critically dependent on factors

The import without quarantine has also drawn sharp criticism from agricultural scientists and researchers. It was argued to be against the biodiversity conservation strategy and bio-safety regulations. Agronomists, while noting that hybrid rice variety has greater potential in

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therefore affected seed quality in storage. Germination loss in storage was rapid at high moisture content and slow at low moisture content. Between 60 and 80 percent of seeds germinated after six months storage at 12.8 percent moisture content. There is a need to improve seed quality of improved cultivars if farmers are to benefit from their higher yields and grain quality and to improve storage practices.

operating in the period between the point of collection and arrival at environmentally controlled processing and storage facilities. It is also noted (Bam et al. 2007) that improved upland rice cultivars stored poorly compared to farmer's traditional cultivars. A survey conducted to get an insight into farmer's seed production and storage practices found that the system was not efficient and

Figure 4.3 : Scenario of Rice Seeds management in Bangladesh

Formal Seed segment (produced following seed production technology and procedure)

Semi- Formal segment inculding fake seed supplier(Partially followed the seed technology and procedures)

InformalSeed (does not follow any seed technology procedure)

13% quality seed

BADC, DAe<BARi, BRRI, Some NGOs and private companies

40% non-teseted and unlabled seed

Seed trader, seed dealer and some eďŹ&#x20AC;icent and select farmers

47% Farmer's seed

Farmer'sown production and consumption

Huge Untapped potential for rice seeeds business

Source : http://www.apsaseed.org/docs/bc3147ea/Bangladesh_seed_industry_at_a_Glance.pdf.

states in India is very low, with the exception of cotton and some vegetables. Recently, it has been observed that awareness about high yield and quality of produce from hybrid seeds is attracting farmers to switch over to hybrids and modern varieties. Sub-sections below present current structure and flow of rice seeds in India.

India: Rice Seeds Flow, Institutional and Industry Issues The Indian seed market is one of the largest, estimated at Rs 10,500 crore in 2012 and expected to increase to Rs 13,500 crore by 2015. However, it is almost exclusively supplied by locally produced seeds. Evidence suggests that farmers retain seed of major food crops (wheat, rice, sorghum, millet, corn, and pulses) and commercial crops for many years, and the largest volume of seed trade involves local exchanges of established self-pollinating varieties. The seed replacement rate in most crops and in most of the

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Structure and Composition of the Indian Seed Industry The Indian seed industry primarily comprises public sector research institutions and companies, private sector companies, seed associations at the state and

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The public sector seed companies are mostly dependent on public research institutions for their breeder seed requirements. Public sector research institutions, namely Indian Council of Agricultural Research (ICAR) and State Agricultural Universities (SAUs) are mainly into the production of breeder seeds. Using the breeder seeds supplied by government research institutes, the public sector seed companies produce foundation seeds on government farms or reliable, well-trained contract farms. These are further multiplied in contract farmer's fields next year as certified seeds for commercial distribution. In case the supply of certified seeds falls short of requirements, the public sector seed companies source commercial grain from the market, upgrade the quality, and after proper testing distribute it as quality seeds.

national levels, and non-governmental organisations (though their presence is relatively limited compared to other stakeholders), farmers (both contract growers and general farmers). In the public sector, there are several organisations that directly or indirectly influence flow of seeds, including rice seeds in India. The Indian seed industry was earlier dominated by public sector companies. This changed following the easing of government regulations and the implementation of a new seed policy in 1988. The private sector seed companies started playing a major role in seed development and marketing of seeds. This helped the industry to record a composition, by volume of turnover, of 60:40 between the private and public sectors.

Public Sector Research Institutions and Seed Companies

Private Sector Seed Companies The late 1980s witnessed easing of government regulations in the seed industry in India. This brought in structural changes within the seed industry by attracting several foreign seed companies in the country. Benefiting from the move, the private seed companies became dominant players in the next few years. Presently, the private seed sector comprises some 20 or so large players, several medium companies, and a large number of small, unorganised players with local presence.

Public sector companies are playing a significant role in the seed industry. Their journey started in 1963 at the beginning of the green revolution and with the establishment of the National Seed Corporation (NSC). The NSC sought to promote seed industry development from production through processing, storage and marketing, and establishing a system of quality control. The NSC in the initial years of operation focused on foundation seed production and with seed certification after the enactment of Seed Act in 1966. After the Seed Act 1966, the State Seed Corporations (SSC) was established, with the support of the World Bank, for production and handling of seed in states.

More importantly, most large multinational seed companies now have their presence in India (either as a joint venture or with 100 percent equity with their main focus on biotechnology. These include Monsanto, Bayer CropScience, Syngenta, Advanta, Hicks-Muse-Tate, Emergent Genetics, Dow Agro, Bioseed Genetics International Inc., Tokita Seed Co, and Nunhems Zaden BV. These companies are, however, more focused and concentrated in the hybrid seed segment.

Presently, the role of public sector seed companies is primarily confined to certified seeds of high volume, low value segment of high-yielding varieties, and these have a limited presence in the high value hybrid sectors. In addition, they are also into variety development (especially for selfpollinated crops). Paddy and wheat seed constitutes a major share of the seeds handled by them. The two organisations (NSC and SSCs) work closely to coordinate on issues relating to procurement and sales prices as well as variety demand and supply. They make sure that the availability of reasonably priced seeds of major crops, including rice, throughout the country. They also work to safeguard farmers against anti-competitive practices resorted to by private sector seed companies to exploit uninformed farmers.

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The seed industry is represented at the national level by two associations, namely The Seed Association of India based in New Delhi and secondly the Association of Seed Industries based in Mumbai. In the recent period, a third association called All India Crop Biotechnology Association (AICBA) has been formed with members from mostly hybrid seed producers and multinationals like Monsanto and Dow Chemicals.

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campus for private sector researchers to use the institution's facilities and expertise. Under the model, private companies can now also fully fund research at SAUs and have exclusive rights on the results.

Variety Development Variety development (especially for self-pollinated crops) is predominantly carried out in the public sector, although in recent years there is growing private sector involvement. ICAR institutes along with several SAU research centres located in different parts of the country focus on seed development based on requirements of various agro-climatic zones. The present arrangement in India for variety development, testing, evaluation, and release are as follows: * New varieties are developed by SAUs, ICAR institutes, and private seed companies. * Varieties that show promise are entered into the All India Coordinated Trials (AICT) operated by SAUs, ICAR institutes, and State Agricultural Departments under the auspices of ICAR.

Understanding Rice Seed Flow in Four Eastern States of India India is a big country and has 28 states and seven Union Territories. In addition, these states fall in varying agro climatic zones in India. One can, therefore, expect that rice seed flow channels and delivery systems might be different in different states. At the same time, production, requirement and supply of quality/ certified seeds within the states may also differ because of varying requirements for different types of seeds. As far as overall supply of quality/certified seeds is concerned, India has come a long way. It is observed that in a number of states, supply of seeds outstrips demand; whereas in some other states, it is also found that many states depend on others to meet their local seeds requirements. This is duly reflected by the table below (Table 4.5).

* Results of the AICT are presented at the Annual Workshops of participating scientists working on the particular crop, where recommendations are formulated for submission to the Variety Release SubCommittee of the Central Seed Committee who makes final recommendations to the Agriculture Ministry.

Public-private Sector Cooperation

The table reflects that the overall supply of certified seeds has increased by over 26 percent over the last three years (since 2009-10). This, however, is not reflective of the state-wise situation. In case of four select states, it is found that while Bihar is a surplus state, producing more than what is required by the state; on the contrary three states, namely Jharkhand, Odisha and West Bengal run in deficit and are therefore could be dependent on other states. This also implies that the existing seed delivery system in Bihar on the one hand and other states on the other might be different. It also implies that depending on the magnitude of requirements, a particular state might be dependent on one or more states for meeting its seeds requirements, including its requirement for rice seeds.

A new mantra of cooperation between private sector seed companies and public research institutes is emerging in India. This is evidenced by increasing cooperation between public research institutions under ICAR, SAUs, and the International Crop Research Institute for Semi-Arid Tropics (ICRISAT). There are indications that now public sector breeder seeds are available free of charge to private seed companies. This is facilitated by the AICT annual workshops which provide venues to private sector seed companies to assess what is available with public research institutes. A new consortium model for cooperation developed with the ICRISAT, private companies can jointly fund research that results in publicly available parental lines. Besides, ICRISAT has recently introduced a

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Table 4.4: Comparative Demand and Supply of Quality / Certified Seeds in Eastern Indian States (in Lakh Qtls) States

2009-10

2010-11

2011-12

Total Demand

Supply by pvt. sector

Total Supply

Total Demand

Supply by pvt. sector

Total Supply

Total Demand

Supply by pvt. sector

Total Supply

Bihar

11.8

4.0

12.7

13.1

6.6

13.7

15.8

9.0

17.1

Jharkhand

2.5

2.1

3.4

2.8

5.3

5.7

1.0

Odisha

6.5

6.6

7.0

7.6

8.4

6.2

West Bengal

16.5

8.4

16.6

30.9

17.3

31.2

35.1

16.6

29.3

India

249.1

108.9

279.7

290.8

155.9

321.4

330.4

173.0

353.6

Soruce: Indiastat.com

developing their capacities to further develop CS which are then distributed among farmers. The private participation in the rice seeds flow in the state of Bihar is very minor.

It might be noted that out of this total requirement of certified seeds, rice seeds accounts for more than 26 percent of the total. The seeds flow mapping is an indicative figure for the stages that any seed, including rice seeds, has to flow through so as to reach the end user, i.e. farmers. In all the four selected states of eastern India, there are SAUs take up in-house development of breeder seeds (BS). Breeder seeds are further used by the state seed corporations to develop the foundation seeds (FS) through state seed multiplication farms. The foundation seeds developed needs to further go through processing so as to convert foundation seeds into certified seeds (CS). Finally, CS is sent to the retail store to be sold to the farmers.

Jharkhand is a resource-poor state which is developing its capacity in ensuring quality seed supply to its large number of marginal farmers. It is largely characterised as a seed deficit state which imports seeds from neighbouring surplus states and the National Seeds Corporation. Realising the importance of the supply of quality seeds in the state, the central government has introduced multiple programmes and schemes such as Seed Exchange Programme (the programme procures raw seeds from the farmers and provides them CS); Watershed committee involvement in developing CS, MOU with private seed manufacturers etc. NGOs like Grameen Vikas Trust are also involved in distributing seeds directly to farmers.

Seed flow from the development stage to the end user passes through various stages. While some states follow a similar mapping of seeds flows; there are others in which the process is completely different. A very brief description of how seeds reach farmers in the four select states is presented below. The description, however, is limited to distinguishing features across the four eastern states in India.

Odisha is a seed-surplus states with well-developed seed markets and notable private participation. The BS are largely developed by the SAU, which not only takes in-house seed development but is also involved in all the other stages of seeds flow map. West Bengal, a resource-rich state and bigger in size, has developed/encouraged the private participation in quality seed supply. The private sector not only takes up the final distribution and setting up of outlets but is involved in the process of developing the FS and CS as well. [Note: The flow charts are preliminary and are further subjected to validation and updation]

Bihar has successfully taken up the village seed programme, which is playing an integral part in ensuring the quality seed supply in the state. It is more like an interconnection between the Krishi Vikas Kendras (KVKs) in the state and the state seed multiplication farms supplying FS to KVKs and

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Figure 4.4 Flow of Seed Production and Distribution in bihar

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Figure 4.5 Flow of Seed Production and Distribution inJharkhand*

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Figure 4.6 : Flow of Seed Production and Distribution in Odisha

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Figure 4.7 : Flow of Seed Production and Distribution in West Bengal

From the Book â&#x20AC;&#x153;Dynamics of Rice Seeds Tradeâ&#x20AC;?. Reprinted with the kind permission from CUTS International.

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- CUTS International

Rice Seeds Trade between India and Bangladesh

seeds, yet there is a huge untapped market for hybrid rice seeds that needs to be fulfilled (Table 5.1).

rade data for Bangladesh relating to rice seeds show that Bangladesh is a net importer of rice seed, though this is primarily hybrid rice seeds. In the year 2010-11, hybrid rice seeds imports by Bangladesh were estimated at US$ 5.9mn24 Data also shows that Bangladesh's annual rice seed import has fluctuated in recent years, but has grown in terms of value during the period 2005- 2011 from US$1.4mn to US$5.9mn. Although government is allowing less import of hybrid rice seeds as it wants to increase dependence on local

Domestic production of HYV and hybrid rice seeds varieties has not grown in comparison with rising demand for the same. Currently, Bangladesh meets its import demand of hybrid rice seeds primarily from China. Over the past few years, the Philippines has also become an important source of hybrid rice seeds import to Bangladesh.

Table 5.1 : Trend in Bangladesh's Hybrid Rice Seeds Import and Untapped Gap

Import Quantity (tonnes)

Govt. Permission to import hybrid rice seeds (tonnes)

Untapped gap of hybrid rice seeds (tonnes)

2008-09 2009-10

8,148 3,472

11,900 11,550

3,752 8,078

2010-11 2011-12

3,945

8,530 7,330

4,585 7,330

Year

Data on import of rice seeds reflects China being the largest source of imports, accounting for over 98 percent of total hybrid rice seeds imports by Bangladesh in 2007. Moreover, its share in the total import has remained almost constant since 2005.

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Table 5.2 Bangladesh's Trade in Hybrid Rice Seeds (US$ thousand ) Imports in 2005

Imports in 2006

Imports in 2007

World

1447

4893

7746

China

1,430(98.8)

4,872(99.6)

7,621(98.4)

India

2(0.1)

20(0.4)

124(1.6)

Source: international Trade Centre, Trade Map Database(2011-12) Figures in brackets show percentages totals in case of India data of partner country in used . When compared to Bangladesh, India is a net exporter of rice seeds with an exhibited export capacity of US$17.3mn in 2011 (Table 5.3). India's major export destinations are Vietnam, Indonesia, Philippines and Nepal. India's exports to Bangladesh remain negligible, accounting for less than 3 percent of its total exports of rice seeds.

Table 5.3: India's Trade in Rice Seeds US$ thousand) Imports in 2007 0

Import in 2008 0

Imports in 2009 0

Imports in 2010 0

Imports in 2011 0

Exports in 2007

Exports in 2008

Exports in 2009

Exports in 2010

Exports in 2011

5264

1980

5842

13368

17297

Vietnam

960(18.2)

400(20.2)

830(31.3)

4904(36.7)

5518(31.9)

Indonesia

466(8.9)

597(30.2)

5(0.1)

2360(17.7)

5032(29.1)

Philippines

352(6.7)

853(43.1)

3103(53.1)

4191(31.4)

3905(22.6)

2737(52.0)

69(3.5)

823(14.1)

842(6.3)

1841(10.6)

Bangladesh

124(2.4)

17(0.9)

5(0.1)

402(3.0)

78(0.5)

Net Exports

5264

1980

5842

13368

17297

Trade Potential

5140

World

Nepal

Source: international Trade Centre, Trade Map Database (2011-12) Figures in brackets show percentages in totals.

than import price of Bangladesh (Table 5.4). Export and import data of long grain rice from ITC (8-digit HS code) reflects that in 2007 Indian seed export price was US$0.16 per kg, while Bangladesh's import price was US$1.59 per kg, registering a huge difference of US$1.43 per kg. This implies that if Bangladesh starts importing rice seed from India, it could potentially save a significant amount of foreign exchange.

Will Bangladesh Gain by Importing Rice Seeds from India? It is interesting to note that estimates based on per unit import price of rice seeds by Bangladesh and per unit export price of India shows that on an average there is a wide difference, as export price of India is much lower

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Table 5.4 : Per Unit Export Price of Rice Seed of India & Import Price of Rice Seed of Bangladesh Importers

Exported unit value , US Dollar / Kilogram

Year World

2005 0.10

2006 0.26

2007 0.16

2008 0.6

Viet Nam

0.29

1.36

0.32

0.75

Indonesia Philippines

5.46 0.75

1.10 0.87

0.33 0.21

1.42 0.43

0.09

0.11

0.29

Nepal 0.07 Per Unit Import Price of Bangladesh Exporters

Imported unit value, US Dollar / Kilogram 2005 2006

2007

China

0.28

0.2

1.59

Thailand

0.29

0.2

1.59

Source : International Trade Centre, Trade Map Database (2011-12)

easy transportation facilities. If these roadblocks are removed from the India-Bangladesh border, India can also trade with Bangladesh at a similar rate.

It is also noticed that Bangladesh's average bilateral trade cost in agricultural products with India is much lower compared to its bilateral trade costs with other trading partners (Table 5.5). As per the latest available data for 2007, and based on simple cost advantage, it is estimated that the cost of rice seeds originating from India would only increase by 1.2 times (or 120 percent) in value/price in Bangladesh because of trade costs. In comparison, the rice seeds originating from China

Potential Gain for India Given that India has a significant advantage amongst Bangladesh's trading partners in the case of rice seeds and also has high export capacity compared to import requirements in Bangladesh, the potential market size

Table 5.5 Bangladesh Trade Cost, 2007 (as % of totoal domestic value trading partner's territory Country

Agriculture Tariff

Non-Tariff

Overall

China

116

159.56

189.58

Thailand

120

173

206.02

India

188

86.49

121.57

Source : The World Bank- UNESCAP Trade Cost database, 2013

for Indian exports to Bangladesh can be safely assumed as Bangladesh's entire import market, which stood at US$5.9mn in 2010-11. However, there is another way to look at the potential. The opportunity and potential for India in rice seeds is reflected by the size of rice seeds market and demand. Bangladesh rice seed market in volume terms is over 300,000 tonnes. The market is big

would register an average increase of 1.8 times (or 180 percent) in value. This shows substantial amount of potential gains for Bangladesh upon meeting its rice seed import requirements from India, instead of China. India's per unit cost of export to Nepal is very low because of better connectivity, lesser regulations and

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Besides, it is also required that all varieties of seeds must be certified by Seed Certification Agency (SCA). Even though, these rules are not properly followed by most seed companies and businessmen, one can always argue that there is no such legal provision in Bangladesh which is restrictive on import of rice seeds from India.

in value terms also. In 2012, the value of Bangladesh's rice seeds market was estimated at US$261mn. This is based on estimated value of hybrid and improved varieties seeds used in Bangladesh. Of this, while HYV accounts for about 64 percent of the market, the rest is hybrid seeds. Incidentally, Bangladesh does not allow import of high-yielding varieties of rice seeds but that is where the demand is increasing. The real opportunity becomes much bigger and can be safely assumed to be over US$780 million if one includes areas sown with farmers saved seeds that could be proportionately converted into hybrid and/or HYV seeds.

Another important feature that could facilitate seeds trade between India and Bangladesh is that Bangladesh does not impose any customs duty on import of some agricultural inputs such as fertiliser and seed (World Bank 2008). There are also instances (Parikh et al. 1995) wherein inefficiencies in resource use in agriculture is argued to be because of trade restrictions, inappropriate pricing of inputs and outputs, among others. It might be recalled that trade liberalisation in the early 1990s brought tariff rates down sharply from 74 percent in 1991 to only 32 percent in 1995 (Ahmed et al. 2007).

Together the two countries constitute a market of about 3.5 million tonnes. It could be expected that increased cooperation will result in economies of scale in the production and distribution of rice seeds and help millions of farmers to have more access to better quality seeds at a cheaper price. Increased bilateral cooperation in rice seed trade has the potential to help both the countries attain the twin objective of availability and affordability of quality rice seeds. Despite this huge market and scope for cooperation between the two countries, lack of trade between India and Bangladesh in rice seeds signifies prevalence of procedural non-tariff barriers (NTBs), lack of information flow and lack of business connectivity between the respective sectors in both countries.

It is expected that requirement of rice seeds in Bangladesh will increase in the near future. In Bangladesh, improved varieties are now used in threefourths of the land under rice cultivation and their adoption has followed the development of the country's irrigation infrastructure (Hossain 2009). The increased share of rice acreage under high-yielding varieties has significantly contributed in increase in rice yields in Bangladesh. In spite of this spread of modern seed varieties, the Bangladesh Seed Growers, Dealers, and Merchants Association (BSGDMA) estimates that domestic improved seed production meets only a small share of the demand in the market for quality, improved cereal seed. The rest of the demand, therefore, is primarily met through import of rice seeds or through the informal cross-border import of Indian varieties.

If these barriers/hindrances are addressed, both countries will gain substantially, with India being able to expand its exports of high yield varieties of rice seed and with Bangladesh enjoying significantly lower import expenditure for meeting its ever-increasing import demand. At the same time, India has to be aware that its own policies hinder cross-border trade.26

Do Regulations in Bangladesh Restrict Rice Seeds Import from India?

In addition, Bangladesh uses 60 hybrid rice varieties of which 50 are from China; three from India; four from the Bangladesh Rice Research Institute; and three from the private sector, of which one is from the Philippines. Data shows and as indicated above, that the overall import of hybrid rice seed is declining in the country for the last couple of years mainly because of area has decreased from around 1.4 million ha in 2008-09 to about 600,000 hectare in 2011. Another reason for this is increased local production. The official data showed that the import of hybrid rice seed peaked during 200809 fiscal, and after that period the demand for imported

Hossain and Jaim (2009) note that in Bangladesh, the National Seed Policy (NSP) of 1993 and Seed Rules of 1998 made a number of provisions that ensured quality of seeds either produced domestically or imported, though it requires that any variety whether imported or domestically developed, must be registered with the National Seed Board (NSB). In addition, the law also requires that all private dealers involved with seed import, registering new seed variety and packaging seeds in labelled containers, must be registered.

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these varieties, farmers plant seed brought into Bangladesh through informal channels from India or grow and informally trade these in Bangladesh. It is argued that in 2004, informal imports from India constituted nearly 20 percent of Bangladesh's total recorded imports of rice seeds.

varieties has declined. Data show that in 2010-11, the private sector import of hybrid seed was 3,945 tonnes against the permission of some 8,530 tonnes. But the local production of hybrid rice seed which was 3,600 tonnes in 2010-11 increased in 2011-12 to 4,800 tonnes. Increasing need for rice seed import does not indicate that there is no issue relating to import from India or other countries. A very serious issue which translates into one of the most important risks with imported seed is the quality of imported seeds. Since the informal system of seed trade falls outside of any legal, regulatory, or quality-monitoring system, it creates a serious issue of quality assurance.

The trend continues even in the latter years. This is reflected by the study (Rashid et al. 2012), which shows that in 2010, Indian rice varieties covered 12 percent of planted rice area (Table 5.6). Farmers plant Indian varieties in all seasons, but especially in the late rainy season, when the short field duration of many Indian varieties gives farmers more options for the subsequent dry season crop. Estimating that the advantage farmers realise with Indian varieties is equivalent to one-tenth of the rental value of irrigated land in the dry season (circa 1 ton per hectare of clean rice, or US$442 per hectare in 2010), the additional net income from Indian rice varieties introduced through the informal private sector was US$59mn in 2010.

Informal Trade of Rice Seeds There is evidence to suggest that Bangladeshi farmers have adopted rice HYVs from India, even though the government of Bangladesh has not officially approved them. A study (Rashid et al. 2012) found that to grow

Table 5.6: Planted rice area under government varieties, private hybrid, informal private varieties, and local varieties, 2009/10 Type of cultivar, source, name of cultivar, and Percentage of paddy area in 2009/10 year released Late Dry season Early rainy season rainy (boro) (ams) season (aman) Area planted to cultivars registered 2000-10 6 16 1 Bangladesh Rice Research Institute 5 2 0 (non-hybrid)varieties ,BR40-BR52

Three sesons

9 3

Private hybrids Area planted to old registered cultivars Bangladesh Rice Research Institute highyielding varieties released 1985-99, BR17-BR39

1 38 13

14 67 60

1 41 26

6 50 34

Bangladesh Rice Research Institute highyielding varieties released 1970-84 BR1-BR16

Area planted to unregistered cultivars Indian varieties (new and old cultivars) Other foreign varieties(old cultivars) Local varieties , aromatic and non-aromatic Total

57 18 1 38 100

17 5 8 4 100

58 7 17 35 100

40 12 5 24 100

Source: Adapted from Harun â&#x20AC;&#x201C;AR-Rashid, Mohafez Ali, and David Gisselquist2012, private- sector Agricultural Research and Innovation in Bangladesh, Overview, Impact, and Policy Options

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through syndicate and prices are fixed on the basis of understanding before marketing and expected demand.

The informal trade is channeled through a large informal setup that exists for seed production and sales and seed exchange among farmers. The extent of formal and informal seed markets differs according to the crop and seed varieties. Field survey findings (Jaim and Akter 2012; Ahmed et al. 2011) suggest that informal sources (own harvest and exchange with neighbouring farmers) account for well over two-thirds of the Bangladeshi-origin modern rice seed varieties and three-fourths of the Indian-origin modern rice seed varieties. In contrast, hybrid rice (grown by less than 2 percent of the farmers in this study) seeds are sourced mainly from the formal system. One can expect that with proper trade facilitation, the share of informal rice seeds trade will come down significantly.

Such developments often result in confusion among the farmers and lead to lack of acceptability of improved rice seeds. A proper pricing mechanism of both domestically available and imported rice seed could help in ensuring greater acceptability of improved varieties of rice seeds.

India-Bangladesh Seeds Trade in Other Crops Bangladesh imports fruits and vegetable seeds from India as seeds from India seem to enjoy comparative advantage in case of maize, fruits, potato, jute and tobacco (Ahmed 2004). Data shows that India's overall seed exports to Bangladesh are impressive compared to export of rice seed. The trend in export is presented in the table below (Table 5.6). The table clearly reflects that export of maize and fruit seeds constituted nearly 80 percent of total seeds export from India in 2011. This is a significant improvement over 2005 when these two seeds constituted about 34 percent of total seeds export to Bangladesh.

Not only this, cross-border rice seeds trade through informal channel also occur from Bangladesh to India as many Bangladeshi rice seed varieties, being suitable to Indian conditions, are informally imported into India.

Is Price Factor a Deterrent in Greater Acceptability of rice seeds? There is not much absolute comparative advantage to either of the countries in production of food crops. Hossain and Deb (2003) claims in their study that for rice, the variable cost of production per unit of output is the lowest in India for some states such as for Punjab.

In addition to what could be observed from the above table, import data of Bangladesh for these seeds are available at the ITC from 2007 to 2011. India's export to Bangladesh and Bangladesh imports from world along with its percentage value for three years have been shown in the below table. Interestingly, it is found that the percentage value of India's export to Bangladesh in the total imports from world by Bangladesh is 100 percent in fruit seeds in 2005. This slightly declined to 80 percent in 2011, still quite impressive. During this period, the percentage value of vegetables seeds has almost doubled. A quantum jump has been recorded in the flower seeds from the level of 2005 to 100 percent in 2011.

For Bangladesh the cost of production is higher in the cultivation of boro rice than in aman rice. However, it is noted that the cost for Bangladesh is lower than in the neighbouring Indian state of West Bengal. A major factor behind the high unit cost of production of the HYV rice in Bangladesh is the cost of irrigation compared to India as India provides high government subsidy on electricity and diesel. It is also noted and observed that seed traders control the market in Bangladesh. The observation is corroborated by a field-based study covering two districts (Gaibandha and Natore). The study demonstrates that there exist syndication systems for both hybrid and HYV: some varieties are imported

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In terms of existing potential for export of seeds from India to Bangladesh, data clearly reflects that there is a huge potential in most of the segments. This is especially true for segments such as seed of fruits; seed of vegetables; and seed of flowers. The existing scope and potential is reflected by the table below (Table 5.8).

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Table 5.6: India’s Exports to Bangladesh (US$ thousand) Type of seeds

Value in 2005

Value in 2008

Value in 2011

1,676 (48.0)

24(0.4)

32(0.3)

128 (3.7)

2,204(40.0)

5,035(50.0)

1,016 (29.1)

1,600(29.0)

2,902(28.8)

659 (19) 0(0.0)

665(12.0) 20(0.4)

1,913(19.0) 65(0.6)

Seeds forage plants, except beet seeds, for sowing nes

0(0.0)

214(4.0)

57(0.6)

Oil seeds and oleaginous fruits, nes, whether or not broken

0(0.0)

704(12.7)

0(0.0)

Rice in the husk, “paddy” or rough Of seed quality

2(0.1)

17(0.3)

78(0.8)

Seasamum seeds, whether or not broken Mustard seeds, whether or not broken

8(0.2) 1 (0.0)

3(0.1) 74(1.3)

0(0.0) 0(0.0)

Total

3,490

5,525

10,082

Durum wheat of seed quality Maize seed Seeds, fruit and spores for sowing, nes Seeds, vegetable, nes for sowing Seeds, flower, for sowing

Source : International Trade Centre, Trade Map Database (2012-13) Figures in parent theses show percentage of India's total seeds export to Bangladesh

Table 5.8: Share of India's Export to Bangladesh in total imports by Bangladesh Product Label

India’s exports to Bangladesh (US$ thousand)

Bangladesh Import from the World (US$ thousand

Value in 2008 1600 (71.7)

Value in 2011 2902 (80.9)

Value in 2005

Value in 2008

Seeds, fruit and spores for sowing, nes

Value in 2005 1016 (100.0)

1016

2232

Value in 2011 3589

Seeds, Vegetable ,nes for sowing,

659 (16.7)

665 (15.7)

1913 (31.3)

3944

4245

6151

Seeds, flower, for sowing

0 (0.0)

20 (39.2)

65 (100)

Seeds of forage plants, except beet seeds, for sowing nes

0 (0.0)

214 (82.9)

57 (77.0)

1852

258

Source : International Trade Centre, Trade Map Database (2012-13) Figures in parentheses show percentage of India's export to Bangladesh in Bangladesh total import from the World.

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Table 5.9 : Potential for Cooperation between Bangladesh and India in Agri-Seeds Type of seeds

India’s exports to World Unit : US Dollar thousand

India’s exports to Bangladesh Unit : US Dollar thousand Value in 2005 1,676 (28.6)

Value in 2008 24 (85.7)

Value in 2011 32 (91.4)

Value in 2005 5,859

Value in 2008 28

Value in 2011 35

Maize seed

128 (1.0)

2,204 (3.1)

5,035 (29.4)

12,208

72,240

17,152

Seeds, fruit and spores for sowing, nes

1,016 (17.8)

1600 (19.8)

2,902 (16.1)

5,713

8,090

17,977

Seeds, Vegetable ,nes for sowing,

659 (6.2)

665 (4.0)

1913 (6.6)

10681

16739

29205

Seeds, flower, for sowing

0 (0.0)

20 (3.2)

65 (6.7)

1010

620

977

Seeds of forage plants, except beet seeds, for sowing nes

0 (0.0)

214 (19.2

57 (4.9)

302

1,112

1,173

Rice in the husk “paddy” or rough: Of seed quality

2 (0.2)

17 (0.09)

78 (0.5)

1,071

1980

17,297

India share in export of Bangladesh to India’s world export

3,481 (9.4)

4,744 (4.7)

10,082 (12.0)

36,844

100,809

83,816

Oil seeds and oleaginous fruits, nes, whether or not broken

0 (0.0)

704 (2.1)

0 (0.0)

13,794

32,446

36,489

Sesamum seeds whether or not broken

8 (0.0)

3 (0.0)

0 (0.0)

166,111

434,768

563,888

To India share in export of Bangladesh to India’s world export

3,489 (1.61)

5,451 (0.96)

10,082 (1.47)

216,749

568,023

684,193

Durum wheat: Of seed quality

Source : International Trade Centre, Trade Map Database (2012-13) Figures in parentheses show percentage of India's export to Bangladesh in India's total export to the World.

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Gisselquist, David, John Nash and Carl Pray (2002), D e r e g u l a t i n g t h e t ra n s f e r o f a g r i c u l t u ra l technology: lessons from Bangladesh, India, Turkey and Zimbabweî, The World Bank Research Observer, Vol. 17, No. 2, Fall 2002, pp. 237-265. Grain (2008), Bangladesh: when seed companies dictate ag policiesî, 2/16/13, online web accessed on M a r c h 7 t h , 2 0 1 3 , U R L : w w w. g r a i n . o r g / f r /article/entries /1653 bangladesh-when-seedcompanies-dictateag-policies.

IRRI (2013),îRice production and processingî, URL: http://www.irri.org / index.php?option=com k2&view=item&layout=item&id=9151&lang=en IFPRI (2012), Seed, Fertiliser and Innovation in Bangladesh: Industry and Policy Issues for the F u t u r e î , P r o j e c t Pa p e r, S e p t e m b e r 2 0 1 2 ITC (2013), Trade statisticsî, online web accessed on March 5th, 2013, URL: http://www.intracen.org/ trade-support/trade-statistics/.Jaim, W. M. H.;

Gujja, Biksham and T.M. Thiyagarajan (2009), New hope for Indian food security?: the system of rice intensificationî, IIED gatekeeper 143: November 2009. Hossain, M. (2002), Rice research and poverty alleviation in Bangladeshî, CPD-IRRI policy brief 2, Dhaka. Hossain, Mahabub, Aldas Janiah, Muazzam Hussain and Firdousi Naher (2001), The rice seed delivery system in Bangladesh: institutional and policy issuesî, The Bangladesh Development Studies, Vol XXVII, December 2001, No.4.

Shaheen Akter (2012), Seed, Fertiliser and Innovation in Bangladesh: Industry and Policy Issues for the Futureî, Project Paper, September, International Food Policy and Research Institute (IFPRI), Washington, DC.

Hossain, M. A. Janaiah, M. Husain and F. Naher (2002), The rice seed delivery system in Bangladesh: Institutional and Policy Issuesî, Center for Policy Dialogue (CPD), January 8, 2002.

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Kumar, S. (2010), Seed production in India: triumphs and challenges in field cropsî, online web accessed on March 15th, 2013, URL: http://nsai.co.in/publication /upload/Dr%20sateesh%20kumar.pdf.

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developing countriesî, IFPRI: Washington, D.C. Pray, C. E., and L. Nagarajan (2009), Improving crops for arid lands: pearl millet and sorghum in Indiaî, in D. J. Speilman and R. Pandya Lorch, Millions fed: proven successes in agricultural development, IFPRI: Washington D.C..

NCAP (2000), Public sector roles in rice seed systemî, online web accessed on March 11, 2013, URL: http://www.ncap.res.in/ upload_files/policy_ paper/pp12.pdf.

Prio (2013), Bangladesh hybrid rice seeds importîî, URL: http://news.priyo.com/topic/badc Rabobank (2006), Indian seed industry: market overview and outlookî, Industry note 184-2006, Global Department of Food and Agribusiness Research and Advisory, Rabobank International: Utrecht, Netherlands.

Nirmala, B., Jagriti Deshmanya, P. Muthuraman, Shaik N. Meera and Mangal Sain (2009), Yield gap analysis of rice in Raichur district of Karnatakaî, Karnataka J. Agric. Sci., 22 (1), pp. 238-39. Oryza (2012), Bangladesh Rice Farmers Distressed w i t h Fa ke Pa d d y S e e d s î , U R L : h t t p : / / oryzamarket.com/Rice-News/15478.html. Pal, S., Pandey S., and Abedullah (2000), Growth and variability in agriculture revisited: district level evidence of rice production in Eastern Indiaî, in Pandey S., Barah B.C., Villano RA and pal S., Risk analysis and management in rainfed rice systems, IRRI: Manila.

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Pal, S., R. Tripp and A. Janaiah, Public private interface and information flow in rice seed system of Andhra Pradesh, Indiaî, Policy paper 12, NCAP: New Delhi.

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Pandey, Sushil. and S Pal. (2007), Are less-favoured environments over invested? The case of rice research in Indiaî, Food Policy, 32: 606-23. Pandey, Sushil and Humnath Bhandari (2008), Economics of hybrid rice in tropical Asia: major issues and opportunitiesî, in F. Xie and B. Hardy, Accelerating hybrid rice developmentî, IRRI: Manila. Pingali, Prabhu L. and Mahabub Hossain (1998), Impact of rice research: proceedings of the international conference on the impact of rice researchî, TDRI: Bangkok and IRRI: Manila.

Revathi, E. and R V Ramana Murthy (2005), Changing seed policy, law and regulation: an appraisal of the emerging seed markets in Andhra Pradeshî, GAPS Series Working paper: 6/June 2005. Saggi, Naiyya (2006), Seed bill in India: Policy analysis and implicationsî, CCS Working paper no. 151, summer research internship programme 2006/CCS. Santhy, V., P. R. Vijaya Kumari, Anshu Vishwanathan, R. K. Deshmukh (2009), Legislations for seed quality regulation in Indiaî, CICR technical bulletin no. 38: Nagpur.

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Endnotes

Spielman, David J., Deepthi Kolady, Anthony Cavalieri, and N. Chandrasekhara Rao (2011), The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy optionsî, IFPRI: Washington DC. Singh, Harbir and Ramesh Chand (2011), The seeds bill, 2011: some reflectionsî, Economic and Political Weekly, Vol. XLVI, No. 51, December 17, 2011, p. 22-25.

In 1979 IRRI conducted a study entitled ëBarriers to Increased Rice Production in eastern Indiaí and that showed that the problem of rice yield existed even in that period (IRRI 1979).

Good seed is pure (of the chosen variety), full and uniform in size, viable (more than 80 percent germination with good seedling vigour), and free of weed seeds, seed-borne diseases, pathogens, insects, or other matter. Using good seed leads to lower seeding rates, higher crop emergence, reduced replanting, more uniform plant stands, and more vigorous early crop growth. Vigorous growth in early stages reduces weed problems and increases crop resistance to insect pests and diseases. All of these factors contribute to higher yields and more productive rice farms (IRRI 2013).

Rice accounts for 73 percent of the calorie intake in Bangladesh and 30 percent in India (FAOSTAT 2010). With 44 million hectares, India has the biggest area under rice worldwide; with a production of 96 million tonnes. The area under rice accounts for 34 percent of India's food crop and 42 percent of its cereal crop areas.

Demand for rice seed is sensitive not only to changes in the price of seeds itself, but also to changes in the price of other factors and products in the agriculture system. This includes complementary inputs and grain producer prices and thus demand will be particularly influenced by government intervention in the price mechanism (administered input and product prices, direct taxes and subsidies etc.) in these markets.

Singh, Harbir, Prasoon Mathur and Suresh pal (2008), Indian seed system development: policy and institutional optionsî, Agricultural Economics Research Review, Vo. 21, January-June 2008, pp. 20-29. The Financial Express (2012), Private sector's share in seed business increasingî, 19 December 2012. The Economic Times (2012), India's seed industry to grow by 53% by 2015: ASSOCHAMî, 9 December 2012. Thiyagarajan, T. M. and Biksham Gujja (2012), Transforming rice production with SRI knowledge and practice: reducing agriculture footprint and ensuring food securityî, NCS. Tripp, R. (2001), Seed provision and agricultural developmentî, The Institutions of Rural Change, Oxford: James Currey. Tripp, R. and S. Pal (2001), The private delivery of public crop varieties: rice in Andhra Pradesh India, World Development, Vol. 29, 103-117. Tripp, Robert (2003), How to cultivate a commercial seed sector, paper presented at the symposium on ëSustainable Agriculture for the Sahelí, Bamako,

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Rough Rice: Rice that has been harvested from the plant with its hull intact is known as rough or paddy rice. The hull is not eaten by humans but is sometimes burned for use as an energy sources. Unmilled rice: when the hull is removed from rough rice it is called unmilled rice. Milled rice: rice that has had its bran and hull layers removed by milling is called white, table, polished, or milled rice.

Various organisations, including International Rice Research Institute (IRRI), are focussing on the Stress- Tolerant Rice for Africa and South Asia (STRASSA) for South Asia.

Yield gap is the difference between the maximum attainable yield and the farm level yield. Maximum attainable yield is the yield of experimental or onfarm plots with no physical, biological and economic constraints and with known management practices at a given time and in a given ecology. Farm level yield is the average farmers yield in a given area at a given time in a given ecology. Yield gap has two components. The first component cannot be narrowed or is not exploitable because it is mainly due to factors that are non 単 transferable such as environmental conditions. The second component is mainly due to difference in management practices (Nirmala et al. 2009).

Often, farmers do not distinguish between grain and seed, and use common farm produce as seed. The reasons for this can be: lack of awareness about the potential of quality seed, the non-availability of quality seed, and high seed price. This also explains the large gap between attainable levels of productivity achieved in demonstration plots and the actual productivity at farm levels (Chand 2007; Singh and Chand 2011).

Researchers suggest that genetic purity of rice seed would be lost, if farmers use their own harvest as a seed without proper cleaning for three consecutive seasons. It would ultimately leads to lower crop yields (Mew 1997; Diaz et al. 2000).

Seed Act of 1998 loosened the restrictions on the production and certification of foundation and commercial seed, so the private sector and NGOs could participate. 13 Danish Seed Health Centre for Developing Countries, Seed Sector Country Profile, Bangladesh 2006. 14 T h e N a t i o n a l S e e d P o l i c y , B a n g l a d e s h , http://www.dae.gov.bd/wpcontent/uploads/2011/0 6/NSP_eng.pdf. 15 The National Seed Board (NSB) and SCA were both established in 1974. The NSB is the statutory body comprising 21 representatives from the official institutions and the private seed sector. NSB advises the GoB on different seed issues such as development of seed industry, seed ordinance, seed rules and policies, variety release and registration, seed standards, variety and seed promotion, etc. On the other hand, SCA is the statutory body which authorises the seed certification and variety release. SCA also coordinates the technical committee meetings and the field evaluation and variety release system. 16 Approval for the five notified crops, which includes rice seed, requires that any person requiring registration of a variety of a notified crop must apply to the National Seed Board (NSB) of MOA. The new variety can be approved by the NSB after it has passed the DUS test (carried out by the Seed Certification Agency) and the Technical Committee of NSB has endorsed the results of the multilocation trials for performance testing (VCU tests). In addition to market seeds of notified crops, the varieties of these crops are to be on the national list of varieties through notification in the official gazette. Source: S e e d S e c to r C o u n t r y P ro f i l e : B a n g l a d e s h , http://www.dshc.life.ku.dk/Publications/~/media/ migration%20folder/upload/shc/docs/pdf/country %20profile%20bagladesh%20vol%20i%20final.pdf. ashx 17 Public and private institutions and agencies, individuals, NGOs, importers/exporters of seeds, and others involved in production, marketing and distribution of rice seeds.

10 CICR Technical Bulletin No: 38, Legislations For Seed Q u a l i t y R e g u l a t i o n I n I n d i a , a va i l a b l e a t http://www.cicr.org.in/pdf/legislation_seed_qualit .pdf

18 Centre for Policy Dialogues (2002), Rice Seed Delivery System and Seed Policy.

11 National Seed Policy 2002, available at http://agricoop.nic.in/seedpolicy.htm.

19 In 1998, the Bangladesh's National Seed Board announced that private companies import 2200 metric tons of seed for cultivation of boro (dry) season. Immediately following the Seed Board's decision, Advanced Chemical Industries, Ltd (ACI) of Bangladesh announced plans to import hybrid rice

12 The Indian Seed Bill of 2004 was also meant to overhaul the seed regulatory system with an objective to regulate the seed market and ensure supply of quality seeds. While in Bangladesh, the

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from India. The company imported the Aalok 6201 variety from Hybrid Rice International. A total of about 600 metric tons seed of four varieties from India and one variety from China were imported. Among various hybrids, 75 per cent of total imported seed was of Alok 6201 from India followed by Sonar Bangla of Chinese hybrid (Biothai et al. 2000).

cent of Bangladesh's total hybrid rice market (www.businessinquirere.net, 2013). 26 India's trade with Bangladesh in agricultural products fluctuates from time to time. In 2008, trade of rice seed went down because of internal restrictions as there was a global food crisis. Many times in the 1990s and 2000s, India's trade with Bangladesh in rice fluctuated, so policymakers and scholars in Bangladesh started to consider India as a non-reliable trading partner for agricultural products. It led to deteriorated agricultural economic relations for a very long time. Apart from that, India's Aalok variety made a negative impact on the crop production in some regions of Bangladesh, so India has to recheck its varieties before sending them to Bangladesh.

20 It was observed that during the peak planting season fo r B a n g l a d e s h 's A m a n r i ce c ro p (J u l y to November), poor quality paddy seeds were being sold under fake labels of well-known brands and caused distress to rice farmers in remote areas. Several farmers are unable to differentiate fake and poor quality seeds from the good ones (Oryza 2012). 21 Bhupen Sharma, Indian Seed Industry 2012 22 Government of India (2012), Seed Net, Structure of Seed Sector, available at: http://seednet.gov.in/ Material/Structure.pdf

27 India is cultivating the BRRI's ëBR-11í variety. Bangladesh started exchange of seeds across the world through the International Network for Genetic Evaluation of Rice from 1980. The Assam Agricultural University of India has requested the BRRI to provide seeds of BR-29. Assam's land is fit for cultivating the BRRI's developed variety of BR

23 One of the most important reasons that attracted international seed companies to India is the country's varied agro-climatic conditions and abundant skilled and unskilled labour, as seed production, particularly hybrid seed production, is highly labour intensive.

29 and some seeds have already been smuggled out to India, and some Assamese farmers are now cultivating BR-29 (BE 2009).

24 Although the hybrid rice seeds sector in Bangladesh accounts for only 600,000 hectares out of the 10 million ha of rice areas, it has started to contribute around 18 percent to the country's total production.

28 Situation Analysis of Seed Business in Bangladesh (2007), Bangladesh Resource Center for Indigenous Knowledge (BARCIK)

25 SL8H variety of hybrid rice seeds that was developed by Philippines but later due to the technological transfers it was developed in Bangladesh itself. This variety since its inception in 2006 has captured 20 per

29 India's potential for exports of seeds can be understood by the huge differences in total exports of seeds from India to the world and share of Bangladesh in this.

From the Book “Dynamics of Rice Seeds Trade”. Reprinted with the kind permission of CUTS International.

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Informative Tables & Charts:

Informative Tables & Charts: Intra-SAARC Trade (US$ billion) 2003 INTRA-SAARC TRADE

2004

2005

2006

2007

2008

2009

2010

2011

2012

11.0

12.8

16.6

19.2

23.4

29.8

23.7

33.1

41.5

40.0

Afghanistan

0.6

0.8

1.3

1.2

2.0

2.1

2.4

3.5

2.9

Bangladesh

1.7

1.6

1.8

2.4

3.2

4.1

3.0

4.2

5.2

6.4

Bhutan

0.1

0.5

0.6

0.9

1.0

1.1

0.3

India

4.5

5.5

6.8

7.7

9.6

12.3

8.9

13.2

15.4

16.0

Maldives

0.1

0.2

0.1

0.2

0.3

Nepal

1.3

1.0

1.2

1.3

1.6

2.2

2.8

3.9

4.4

3.9

Pakistan

1.1

1.6

2.6

3.1

4.4

3.5

4.7

6.2

5.4

Sri Lanka

1.5

2.0

2.2

2.6

3.6

2.4

3.5

5.4

4.7

Source: ITC Trade Map, Geneva; and Exim Bank Analysis Source- “Potential For Enhancing Intra-Saarc Trade: A Brief Analysis” Working Paper No 31, June 2014, Export Import Bank of India

Intra-SAARC Exports (US$ billion) 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

INTRA-SAARC EXPORTS

5.5

6.7

8.8

9.8

11.8

14.8

11.7

16.4

19.9

19.7

Afghanistan

0.1

0.2

0.3

Bangladesh

0.1

0.2

0.3

0.6

0.4

0.3

0.5

0.7

Bhutan

0.1

0.2

0.3

0.6

0.5

0.4

0.2

India

3.9

4.6

5.4

6.2

7.8

10.1

7.4

11.1

12.9

13.7

neg.

Nepal

0.4

0.3

0.4

0.3

0.5

0.6

0.7

0.6

Pakistan

0.7

1.0

1.8

1.6

2.4

2.2

2.9

4.2

3.5

Sri Lanka

0.3

0.5

0.6

0.4

0.6

0.7

0.8

Maldives

neg. - negligible Source: ITC Trade Map, Geneva; and Exim Bank Analysis. Source- “Potential For Enhancing Intra-Saarc Trade: A Brief Analysis” Working Paper No 31, June 2014, Export Import Bank of India

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Informative Tables & Charts:

Intra-SAARC Imports (US$ billion) 2003 INTRA-SAARC IMPORTS

2004

2005

2006

2007

2008

2009

2010

2011

2012

5.4

6.1

7.8

9.4

11.6

15.0

12.0

16.7

21.6

20.2

Afghanistan

0.5

0.6

1.2

1.1

1.8

2.1

3.2

2.6

Bangladesh

1.6

1.4

1.5

2.1

2.6

3.7

2.6

3.8

4.5

5.7

Bhutan

0.1

0.3

0.4

0.7

0.8

0.2

India

0.6

0.9

1.4

1.5

1.7

2.2

1.5

2.1

2.5

2.3

Maldives

0.1

0.2

Nepal

1.0

0.8

0.9

1.2

1.7

2.1

3.3

3.8

3.4

Pakistan

0.3

0.6

0.8

1.3

1.5

1.9

1.3

1.8

2.0

Sri Lanka

1.2

1.5

1.6

2.0

3.0

3.1

1.9

2.9

4.7

3.9

Source: ITC Trade Map, Geneva; and Exim Bank Analysis.

Comparative Analysis of Trading Time, cost & Documents across South Asia and Select Regions, 2007, 2009, 2011 and 2013 A. Time (in days) 2007 Regions

Export

2009

Import

Export

2011

Import

Export

2013

Import

Export

Import

Afghanistan

Nepal

Bhutan

Bangladesh

Pakistan

Maldives

Sri Lanka

India

THAILAND

MALAYSIA

INDONESIA

Source: World Bank, Doing Business, Various Issues.

Source: “Potential For Enhancing Intra-Saarc Trade: A Brief Analysis” Working Paper No 31, June 2014, Export Import Bank of India

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Informative Tables & Charts:

B. Costs (US$/container) 2007 Regions

2009

2011

Export

Import

Export

Import

Export

Import

Afghanistan

2,500

2,100

3,000

4,645

5,180

Nepal

1,599

1,800

1,764

1,900

1,960

2,095

2,295

2,400

Bhutan

1,230

1,950

1,210

2,140

1,352

2,665

2,230

2,330

Bangladesh

902

1,287

970

1,315

985

1,390

1,075

1,470

Pakistan

996

1,005

611

660

611

680

660

725

Maldives

1,000

1,784

1,348

1,550

1,526

1,625

1,610

Sri Lanka

797

789

865

895

715

745

595

775

India

864

1,244

945

960

1,055

1,025

1,170

1,250

THAILAND

848

1042

625

795

625

795

595

760

MALAYSIA

481

428

450

485

INDONESIA

546

675

704

660

704

660

615

660

2,600

Export

2013 Import

3,865

3,830

Source: World Bank, Doing Business, Various Issues.

C. Documents required (no.) 2007 Regions

Export

2009

Import

Export

2011

Import

Export

2013

Import

Export

Import

Afghanistan

Nepal

Bangladesh

Pakistan

Maldives

Sri Lanka

THAILAND

MALAYSIA

INDONESIA

Bhutan

India

Source: World Bank, Doing Business, Various Issues.

Source- “Potential For Enhancing Intra-Saarc Trade: A Brief Analysis” Working Paper No 31, June 2014, Export Import Bank of India

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Informative Tables & Charts:

Annexure 1: Country-wise Revised Sensitive List Relating to Seeds under SAFTA Afghanistan's Revised Sensitive List in Seeds under SAFTA 9092000

Seeds of coriander

9093000

Seeds of cumin

9094000

Seeds of caraway

9095000

Seeds of fennel; juniper berries

12051000

Low erucic acid rape or colza seeds

12060000

Sunflower seeds, whether or not broken

12072000

Cotton seeds

12074000

Sesamum seeds

12075000

Mustard seedsa

12091000

Sugar beet seed

12092100

Lucerne (alfalfa) seed

12092200

Clover (Trifolium spp. ) seed

12092300

Fescue seed

12093000

Seeds of herbaceous plants cultivated principally for their flowers

12099100

Vegetable seeds

Bangladeshâ&#x20AC;&#x2122;s Revised Sensitive List in Seeds under SAFTA 90920

Seeds of coriander

90930

Seeds of cumin

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Informative Tables & Charts:

India’s Revised Sensitive List* in Seeds under SAFTA 070110

Potatoes seeds

071339

Guar seeds

090920

Seeds of coriander

090940

Seeds of Carrway

100510

Maize seeds

120100

Soya Beans of seed quality

120210

Groundnut seeds

120400

Linseed

120510

Rape Seeds

120600

Sunflower seeds

120710

Palm nuts of seed quality

120720

Cotton seeds

120730

Castor Oil Seeds

120740

Seasum Seeds

120750

Mustard Seeds

120760

Safflower Seeds

120791

Poppy Seeds

120799

Other Oil Seeds (Ajams, Mango kernel, niger seed, kokam and others)

120810

Soyabeans

*Relates to LDCs.

Pakistan’s Revised Sensitive List in Seeds under SAFTA 100110

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Durum wheat

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Informative Tables & Charts:

Sri Lankaâ&#x20AC;&#x2122;s Revised Sensitive List in Seeds under SAFTA 9011110/ 9011210

Coffee Seeds

90910

Seeds of anise or badian

90940

Seeds of caraway

120740

Sesamum seeds

120750

Mustard seeds

12079910

Tea seeds

Source: SAARC Secretariat, http://saarc-sec.org/areaofcooperation/detail.php?activity_id=35

Annexure 2: Applied MFN Rate by SAARC Countries on Import of Seeds Bangladesh HS Code

Types of seed

10061010

Rice seed, wrapped/canned upto 2.5kg

0.00

120991

Vegetable seed

0.00

120999

Fruit Seed

0.00

1207

Oil seed, wrapped/canned upto 2.5kg

10051000

Maize, wrapped/canned upto 2.5kg

10071010

Grain Sorghum, wrapped/canned upto 2.5kg

100310

Barley, wrapped/canned upto 2.5kg

10081010

Buckwheat, wrapped/canned upto 2.5kg

10011010

Wheat seed upto 2.5kg

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HS 2007 (percent)

130

25 0.00 5 0.00

Business Opportunities in Agri/Seed Segment in SAARC Countries

Informative Tables & Charts:

India HS Code

Types of seed

HS 2007 (percent)

10061010

Rice seed

120991

Vegetable seed

120999

Fruit seed

1207 Oil

seed

10051000

Maize

10071010

Grain Sorghum

100310

Barley Seed

0.00

10081010

Buckwheat

0.00

10011010

Wheat seed

Maldives HS Code

Types of seed

10061010

Rice seed

120991

Vegetable seed

120999

Fruit seed

1207

Oil seed

10051000

Maize

10071010

Grain Sorghum

100310

Barley

10081010

Buckwheat

10011010

Wheat seed

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HS 2007 (percent)

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Informative Tables & Charts:

Nepal HS Code

Types of seed

HS 2007 (percent)

10061010

Rice seed

120991

Vegetable seed

120991

Free trade agreement duty rate for SAFTA

120999

Fruit Seed

120999

Free trade agreement duty rate for SAFTA

1207

Oil Seed

1207

Free trade agreement duty rate for SAFTA

10051000

Maize

10071010

Grain Sorghum

10071010

Free trade agreement duty rate for SAFTA

100310

Barley

100310

Free trade agreement duty rate for SAFTA

10081010

Buckwheat

10081010

Free trade agreement duty rate for SAFTA

10011010

Wheat seed

10011010

Free trade agreement duty rate for SAFTA

Pakistan HS Code

Types of seed

10061010

Rice seed

0.00

120991

Vegetable seed

0.00

120999

Fruit seed

0.00

1207

Oil seed

0.00

10051000

Maize

0.00

10071010

Grain Sorghum

0.00

100310

Barley

10081010

Buckwheat

10011010

Wheat seed

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Informative Tables & Charts:

Sri Lanka HS Code

Types of seed

HS 2007 (percent)

10061010

Rice seed

120991

Vegetable seed

0.00

120999

Fruit seed

0.00

1207

Oil seed

1207

Preferential duty rate for India under the Indo-Sri Lanka free trade agreement

0.00

1207

Free trade agreement duty rate for Pakistan

0.00

1207

Free trade agreement duty rate for SAFTA

17.50

1207

Free trade agreement SAFTA

10051000

Maize

10071010

Grain Sorghum

10071010

Free trade agreement duty rate with Pakistan

100310

Barley

100310

Preferential duty rate for India under the Indo-Sri Lanka free trade agreement

0.00

100310

Free trade agreement duty rate for Pakistan

0.00

100310

Free trade agreement duty rate for SAFTA

10.83

100310

Free trade agreement duty rate for least developed countries under the South Asia

4.50

Rs20/kg

5 0.00 30 0.00 15

10081010

Buckwheat

10081010

Free trade agreement duty rate for Pakistan

0.00

10011010

Wheat seed

0.00

Source: WTO, http://tariffanalysis.wto.org/report/TariffLines.aspx

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Informative Tables & Charts:

Destination Share

Annexure 3: Seed Trade Intensity of India and Other SAARC Countries

A unit value of IT ij shows that country I has no gain in supplying of country j or supplying the same in foreign markets. Following the results of second equation, if ITij> 1 implies that nation ĂŹjĂŽ is an important market for exporter I, than for any other country of the world. Likewise,, if 0<IT ij<1, then country j would be a less important market for I than any other country exporting to j.

The analysis below provides the trade intensity index of seed trade between India and SAARC, Bangladesh, Pakistan and Nepal. The trade intensity index provides the flow of trade between India and SAARC countries. This index has been used since 1960 to analyse the direction and magnitude of international trade. The intensity index allows the country to trade with each other more or less depending on its value. The importance of this index is that it can capture the small changes in trade between two countries. It can also highlight the small change in trading countries even if their earlier pattern of trade happens to be small.

The bilateral trade intensity index has been computed by using the second equation for the nine seeds as mentioned above. It has been computed for the period 2001-11. The changes in the results of this index will show the experience of trade of increasing or decreasing over the time. Table A.1 shows that SAARC countries has offered good market for seed from Indian origin over the last one decade. Data show that while supply of seeds from India to SAARC countries like vegetable, maize and barley has been increasing, Indian seed like fruit, oil, wheat, rice, grain, sorghum have also penetrated markets in other SAARC countries over the last one decade. However, the bilateral trade intensity index of the seed has come down in the last decade. The bilateral trade intensity index of most of the seeds is greater than one except one buckwheat seed whose value is less than one. So SAARC region has potential market to import seeds from the Indian origin.

Bilateral trade intensity index measures are an exporter's penetration of an importer's market within the context of overall world trade. A formula of this index is as follows:

Alternatively, if one abstracts from transportation margin, then this index can also be reshaped to focus on exporting country and its competing suppliers in market j. In that case, the IT index becomes supply, a ratio of destination shares (ds) as is stated below:

Bilateral Trade Intensity Statistics It is revealed that the bilateral trade intensity index of seed from SAARC region to India in most of cases is very small (less than one) as compared to export of seeds from India to other SAARC countries during last one decade except one (buckwheat seed whose value is greater than one). Buckwheat seed shows an increasing trend over the last decade. The results show that seeds from other SAAARC countries have not been able to fully penetrate Indian market in this period. Thus, India having a bigger market has not been fully utilised by other SAARC countries. On the contrary, other SAARC countries have offered good import market for the seed originating from India.

Where Xij is export from country I to country j; Xiw is total exports to the world by country I; Xwj is total export to country j; Xww is total world export; Mji is import of country j from country I; Mjw is total imports from the world by country j; Mww is total world imports; ds is

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Informative Tables & Charts:

Table A.1: Bilateral Trade Intensity Index of India and other SAARC Region Types of seed

Bilateral Trade Intensity Index 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

8.72

14.47

16.35

16.64

12.90

14.83

16.08

13.97

14.04

22.48

19.11

Fruit Seed

9.89

1.33

9.29

18.14

12.41

9.95

5.23

7.12

9.76

7.93

7.64

Oil Seed

1.50

1.20

0.68

1.52

0.67

0.63

0.97

2.00

1.15

0.62

1.25

Wheat Seed

21.35

2.03

3.03

10.24

41.79

3.65

0.00

17.89

Rice Seed

41.20

52.15

37.80

0.77

22.55

2.40

7.46

6.04

2.10

90.08

16.75

18.40

35.45

33.89

41.89

71.25

19.46

26.44

52.44

67.72

Grain Sorghum

1,917.92

57.97

2,879.89

189.71

88.01

74.81

5,756.62

Barley Seed

21,573.19

0.00

234.60

5.53

20.32

0.00

1,140.02

0.00

Buckwheat Seed

121.48

0.00

229.82

0.00

0.26

Maize Seed

2,307.16 2,988.65

Source: Source: ITC Trade Map Note: (-), indicate that country has not traded the seeds during the period

Table A.2: Bilateral Trade Intensity Index of other SAARC Region and India, 2001-2011 Types of seed

Bilateral Trade Intensity Index 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1.64

0.01

0.03

0.26

0.00

0.02

0.00

0.07

Fruit Seed

0.02

0.86

2.03

0.20

0.10

0.00

0.06

0.00

0.25

Oil Seed

0.05

0.00

0.02

0.00

0.02

0.49

0.05

0.01

Wheat Seed

Rice Seed

Vegetable Seed

Maize Seed

Grain Sorghum

Barley Seed

Buckwheat Seed

503.20

713.72 23,970.68 1,066.28 2,134.94 6,151.30 3,085.42 1,598.52

19.38

Source: ITC Trade Map, 2012-13 Notes: (-) indicates that trade has not occurred during that period. This clearly indicates that SAARC as a whole except India did not reported any amount of exporting value to the world.

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Informative Tables & Charts: Table A.3 indicates bilateral trade intensity index of India and Bangladesh from 2001 to 2011. Bangladesh has offered good market for seed originating in India side. The index value of seed like vegetable seed, fruit seed, and maize seed have shown increasing trend over the last one decade. Large fluctuation in index value of wheat seed has been recorded in this period. But index value of rest of the seed has been showing decreasing trend and its index value is less than one in most of seeds.

Table A.3: Bilateral Trade Intensity Index for India with Bangladesh Types of seed

Bilateral Trade Intensity Index 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

9.87

60.70

39.92

27.03

21.40

10.93

22.94

19.92

26.39

35.89

Fruit Seed

1.47

26.99

110.01

73.20

33.19

34.53

33.42

40.28

20.18

21.76

Oil Seed

0.00

0.03

0.00

0.03

0.00

1.18

0.50

0.14

0.00

Wheat Seed

26.33

18.46

62.35

408.99

0.00

159603.81

0.00

16.73

Rice Seed

14.24

1.63

0.11

0.02

0.98

0.48

0.09

3.33

0.47

Maize Seed

20.63

28.75

21.87

4.74

49.24

107.06

58.15

14.47

55.15

63.99

Grain Sorghum Seed

1.45

0.63

0.40

572.29

Barley Seed

52734.45

0.00

Buckwheat Seed

Source: ITC Trade Map, 2012-13.

Notes: (-) indicates that trade has not occurred during that period

Analysis shows that seeds from India have been able to penetrate markets in Pakistan. The intensity index of India with Pakistan has realised an increasing trend in vegetable, fruit, oil, maize and grain sorghum seed. The index value of rest of the seed is either zero or have shown decreasing trend in the last decade. Analysis and results also show that India has potential and opportunity to export the seed in Pakistan market.

Table A.4: Bilateral Trade Intensity Index for India with Pakistan Types of seed

Bilateral Trade Intensity Index 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

31.20

38.12

27.03

31.77

52.86

55.86

67.66

68.85

55.32

Fruit Seed

8.21

9.14

4.39

0.71

1.66

2.88

1.90

3.73

Oil Seed

0.99

1.36

0.04

1.88

0.00

0.24

1.53

6.95

3.46

Wheat Seed

0.00

0.63

0.00

Rice Seed

0.00

0.02

4.18

0.00

Maize Seed

8.47

0.74

0.99

24.10

4.34

13.71

54.36

86.44

91.74

Grain Sorghum Seed

Barley Seed

3,958.567

Buckwheat Seed

Source: ITC Trade Map, 2012-13

Seed Times Jan. - Mar. 2015

117,44.50 103,379.01 11,986.99 53,264.66 11,5661.03

Notes: (-) indicates that trade has not occurred during that period

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Informative Tables & Charts: As reflected by Table A.5, seed trade data for India and Nepal is not available in many years. Available data indicate that Nepal is a good exporting destination of seed originating in India. The index value of most of the seed is greater than one.

Table A.5: Bilateral Trade Intensity Index for India with Nepal Types of seed

Bilateral Trade Intensity Index 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

34.46

27.10

71.56

13.45

Fruit Seed

12.85

43.47

250.60

39.00

Oil Seed

13.97

37.95

13.08

5.46

Wheat Seed

1.87

0.00

13,990.80

Rice Seed

62.14

201.15

19.70

7.50

Maize Seed

48.11

165.07

43.39

76.94

Grain Sorghum Seed

Barley Seed

Buckwheat Seed

1.40

Source: ITC Trade Map, 2012-13 Note: (-), indicate seed trade data is not available

Where Xih denotes export of country I for commodity h, Mih denotes import of I for the commodity of h.

Pattern of Revealed Comparative Advantage The bilateral trade intensity index shown above explains the importance of a particular country as an export destination for the products of other countries. The results above shown can be compared with the revealed comparative index (RCA). This estimate will help to distinguish between exportable showing improved comparative advantages from those that show declining tendencies or none at all.

The RCA value of a country evaluates the trade performance of the country and simultaneously and also shows the exporting and importing of a particular commodity. The RCA value ranges from -1 to +1; where -1 indicates that there are no export from country (Xih = 0) which reveals comparative disadvantage and +1 indicates that there are no imports (Mih =0) which reveals that comparative advantage. RCA can be computed at the various level but the results would be finer if it is disaggregated. Larger the level of disaggregation, it will identify the product in which export potential exit. Table A.6 show revealed comparative advantage of India in different seeds from 2001 to 2011. India has maintained comparative advantage in all of the seeds except buckwheat in which India has comparative disadvantage. The RCA value is close to one or one in all seeds except buckwheat seed.

Comparative advantage is generally used to understand the pattern of trade. The concept of comparative advantages contains the features of theoretical as well as policy discussions. RCA of a country in a particular good is the ratio of net export to its total trade in that good. A formula can be written as follows: RCA = (Xih-Mih)/ (Xih+Mih)…………………………………………. (iii)

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Informative Tables & Charts:

Table A.6: Revealed Comparative Advantage Index of India and SAARC Region Types of seed

RCA Index 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

0.68

1.00

0.97

1.00

0.99

Fruit Seed

0.97

0.83

0.80

0.97

0.98

0.94

Oil Seed

0.86

1.00

0.92

1.00

0.98

0.41

0.85

0.98

Wheat Seed

Rice Seed

Maize Seed

Grain Sorghum Seed

Barley Seed

Buckwheat Seed

-1

-0.71

-1

-0.81

-1

-0.97

Source: ITC Trade Map, 2012-13.

Note: (-), indicate seed trade data is not available

Table A.7: Revealed Comparative Advantage Index of SAARC Region and India Types of seed

RCA Index 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Vegetable Seed

-0.7

-1.0

Fruit Seed

-1.0

-0.8

-1.0

-0.9

Oil Seed

-1.0

-0.9

-1.0

-0.9

-1.0

-0.4

-0.8

-1.0

Wheat Seed

-1.0

Rice Seed

-1.0

Grain Sorghum Seed

-1.0

Barley Seed

-1.0

Buckwheat Seed

1.0

0.7

1.0

0.8

1.0

Maize Seed

Source: ITC Trade Map, 2012-13.

Note: (-), indicate seed trade data is not available

Table A.7 shows that other SAARC countries have revealed comparative disadvantage in eight seed out of the nine seed traded with India. RCA value of eight seed except buckwheat seed possess negative value throughout the period 2001-11. This negative value shows that other SAARC countries have disadvantage in export of these seed to India. The SAARC region has comparative advantage in buckwheat seed supply to India. The above results provide useful information for the nature and extent of RCA in India and SAARC region. India appears to have comparative advantage in eight seed except one, namely buckwheat seed. Seed Times Jan. - Mar. 2015

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Informative Tables & Charts:

Annexure 4: Revealed Comparative Advantage Index of India with Four Countries in Different Seeds Vegetable Seed Country

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0.99

0.96

0.97

0.59

1.00

0.99

0.96

1.00

Nepal

0.94

1.00

0.89

Sri Lanka

Bangladesh Pakistan

Fruit Seeds Country

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Bangladesh

0.91

Pakistan

0.94

0.45

0.10

0.75

0.37

1.00

0.89

Nepal

Sri Lanka

Oil Seed Country

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-0.52

0.93

-0.12

0.02

0.30

0.48

-0.91

0.50

-1.00

-0.86

-0.70

-0.60

-0.06

Nepal

0.99

Sri Lanka

-0.20

Bangladesh Pakistan

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Informative Tables & Charts:

Wheat Seed Country

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Bangladesh

Pakistan

Nepal

Sri Lanka

Rice Seed Country

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Bangladesh

Pakistan

Nepal

Sri Lanka

Maize Seed Country

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Bangladesh

Pakistan

Nepal

Sri Lanka

Source: ITC Trade map, 2012-13 Note: (-) Indicate that trade did not occur during this period.

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EVENTS

E V E N T S

NSAI's Contribution to CM Relief Fund Andhra Pradesh About Contribution to CM relief fund

he National Seed Association of India (NSAI) members have contributed Seeds worth Rs 1.55 Crores to the farmers of the severely affected regions of Cyclone HudHud. Shri.M. Prabhakara Rao, President, NSAI along with

the representatives of the Seed industry association, met the Hon. Chief Minister of Andhra Pradesh, Shri N. Chandra Babu Naidu and handed over the letter regarding the committed contribution on 27th October 2014. The seeds contributed as a part of the relief assistance is being distributed to support marginal farmers of areas severely affected by the cyclone. This would assist the farmer for raising the forthcoming crop in the Rabi season. The Hon. Chief Minister of Andhra Pradesh thanked the NSAI delegation for its contribution and welcomed the seed industry to be a part of the agribusiness development initiatives for benefitting the farmers of Andhra Pradesh.

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EVENTS

The inauguration for distribution of Seeds to Hudhud cyclone affected farmers was initiated on 03.12.14 in Vizianagaram. Honorable Minister for Rural Development Dr K. Mrunalini, Shri. M. M. Nayak, District Collector Smt. Premila JDA , 4 MLA's and Seed company officials were present. At the program, the minister distributed four kg of maize seeds free of cost to each farmer. Seeds were successfully distributed to 300 farmers. On a call from the Chief Minister Shri. NChandrababu Naidu to help farmers, about 17 companies came forward to supply the quality seeds through National Seed Association of India. The minister asked the farmers to take advantage of this opportunity and get good results. She thanked the representatives of various companies who came forward to supply the seeds. District Collector Shri. M. MNayak asked the officials to enumerate the details of the farmers who suffered losses. Compensation would be provided to all the farmers in a short period of time, he added. He also asked plantation farmers to apply under Employment Guarantee Act for developing farms. “There is a good suitable condition for growing maize crop in the district on par with paddy and also a good market”,said the Collector. Seeds worth Rs 74 lakh were being distributed to the farmers freely. The distribution process would finish in three days, he added. Representatives of various companiessaidthatthecostofseedswasINR1.55 crore which would be distributed in the three districts of North Andhra. (Source-THE HANS INDIA)

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NSAI Organizes

8th Annual General Meeting T

he Eighth Annual General Meeting of the National Seed Association of India (NSAI) was convened on Saturday 13th September 2014 at International Convention Centre, Hyderabad. The AGM was chaired by NSAI President, Mr. M. Prabhakar Rao.

with the members beforehand. He reassured the members that good care has been taken to keep finances in healthy shape. The annual statement of accounts was accepted unanimously. The AGM appreciated the continued efforts of NSAI at knowledge dissemination through very informative and useful publications. The 2nd edition of 'Seed Directory' was then released to the members by the NSAI Office Bearers, Mr. M. Prabhakar Rao, Mr.Bhupen Dubey, Mr. M.G. Shembekar and Mr. K. S. Narayanaswamy.

68 NSAI members &dignitaries participated in the AGM. The AGM began with a warm welcome by the Executive Director, NSAI, Dr. Kalyan Goswami. He thanked Office Bearers, Governing Council & other members for providing continued support to the Secretariat. The huge turnout of the members at the AGM also reflected the interest of the members for the association. Based on the quorum present, President declared the 8th AGM of NSAI open.

1st edition of newsletter 'Seed News' was also released at the AGM by the Office Bearers. It was informed by Dr. Kalyan Goswami, ED that NSAI would come out with the Newsletter every Month & we shall also update the Seed Directory every year.

The minutes of the Eighth AGM held on 31st July 2013 in Delhi was circulated earlier among the members were put up for discussions and adoption. The minutes were approved and accepted by General Body unanimously.

President, NSAI addressed the assembly by thanking them for being part of the event. He then welcomed the new Government and applauded the previous Government for the work they have done for farmers and entire seed industry and wished new government would continue to extend the welfare policies in same direction. He then made it a point that after last year's election, two new members joined the Governing Council namely; Mr.Rajendran Ramasami and Mr.Satish Kagliwal, which has made the GC more balanced with diverse experience and representation from all the regions.

As part of the Annual General Meeting â&#x20AC;&#x201C; Compendium, a 'Report' on the activities of the Association during 2013-14 (since AGM 2013) was prepared. General Secretary, Mr.Bhupen Dubey read out the report in front of the members. The increase in NSAI membership to 309 (till 31st August 2014), improved communication instruments (magazine, new website, newsletter, daily/weekly mailers, etc.), highly visible recognition of NSAI as a true representative of the Indian Seed Industry, consideration of Industry stand by NBA represented by NSAI and the success of the Fifth Indian Seed Congress, were highlighted. The 'Report' was adopted by the General Body, where the members present appreciated the growth and participation of the Association.

President appreciated the Secretariat for building good & regular communications with the members. He then apprised the members of his ambitious plan to bring new people to increase the band width of Secretariat. He acknowledged that Indian Seed Industry can do wonders in Asian/African countries and other international market where association can play even greater role. He touched base with significant issues related to Seed Industry, like: Exemption of Seed industry from NBA act,

Dr. K.S. Narayanaswamy, the Treasurer then briefly presented his report, highlighting the significant aspects of the annual statement of accounts which was shared

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EVENTS

Exemption of companies in Seed segment from Income tax. It is expected that a rule bound approach to taxation of income from seeds be adopted through inclusion of appropriate rule in the Income Tax act. President has invited suggestions on the way subsidy schemes should be implemented as the present way is distorting the market. He opined that the GM Trials should be continued to meet the demand of the growing population; exemption of service tax on royalties; suggestions on Seed Bill& BRAI which is to be submitted to Ministry. With this he designated NSAI to develop certified courses with standard curriculum & formats and run its courses in places like A.P, Karnataka, Gujarat to facilitate Industry with people for entry level jobs.

encouraged members to join the same and make utmost use of the platform. Mr.Satish Kagliwal, GC Member, complimented all the members who have been instrumental in formation of this association and applauded for the Members and Secretariat. To the problems faced in Maharashtra, he added that Local Association has been meeting officials and receiving verbal assurances but no implementation has happened as yet due to lack of trust and poor image in their eyes of this industry, which needs to be rebranded. Members participated in the open house discussions actively and put forth their suggestions for the better functioning of NSAI and welfare of Seed Industry, which includes: Drafting subsidy model for Seeds, Felicitation of industr y people, and de velopment of the SME organizations engaged in Seed business.

Mr. M.G. Shembekar, Vice-President, NSAI, greeted all the members and presented Maharashtra point of view. He pin pointed that members across Maharashtra face lot of problems and suggested that NSAI along with State Seed Association of Maharashtra should work out a mechanism to sort out problems with regard to approvals/licensing/ trials as these issues are creating hurdles.

Dr. Kalyan Goswami, ED pronounced the Vote of thanks!! After the AGM proceedings got over, two minute silence was observed in the memory and honor of Mr.Venkat Reddy who passed away recently. Late Shri Reddy was the General Secretary of Seedsman Association & a great supporter of NSAI.

Mr.Bhupen Dubey apprised the assembly of the institutes and online courses working towards achieving skill development. He informed about the role of Agriculture Sector Skill Council in development of curriculum and certification, MOOCS- Massive Online Open Courses. He

Seed Times Jan. - Mar. 2015

There was a Technical session convened after the AGM &Dr. R RHanchinal, Chairman, PPV & FR was the guest speaker in the session.

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EVENTS

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Business Opportunities in Agri/Seed Segment in SAARC Countries

New Members ORDINARY MEMBERS

Bharat Agro Overseas (India) A-64, Industrial Area, G.T. Karnal Road, New Delhi-110033

Devkishanji Vaktaji Seeds R.R. Estate, Ujala Circle, Nr. Hotel Shahi Darabar, Rajkot Highway, Sarakhej, Ahmedabad-382210

Plantsman's Seeds Rajbaha Road, Patiala-147-001 (PB)

Garnier Seeds India Pvt. Ltd. 129, LSC Vardhman Royal Plaza, Gujranwala Town Part-1, Delhi-110009

West Bengal Hybrid Seeds & Bio-Tech Pvt. Ltd. 181/35, Dakshindari Road, Kolkata-700048

Swarnim Farms India Pvt. Ltd. C-501, Signature-2, Business Park, Sarkhej Circle, Sarkhej- Sanand Road, Off. S.G. Highway, Sarkhej, Ahmedabad-382210.

Akal Seed Farm Mastuana Sahib, Tehsil & Distt. Sangrur, (Punjab)

Divya Seeds 8/8, Tirupati Shopping Centre, Deodar-385330 Distt. Banaskantha (Guj)

Dhartiratna Seeds Pvt. Ltd. At. Panthavada, Dhaniyavada Road, Ta. Dantiwada, Dist. Banaskantha (Guj)

Parth Seeds Corporation Chandan Chambers, Nr.. S.T. Bus Stand, At-PostTq. Idar, Dist. Sabarkantha-383430 (Guj)

Krushak Krushi Kendra Gurunanak Chowk, At-Post- Tq- Palanpur-385001, Dist. Banaskantha (Guj)

Laxmi Seeds 40, Market Yard Bhildi, Ta. Deesa, Dist. Banaskantha (Guj)

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New Members ORDINARY MEMBERS

Dev Seeds Co. 28, Damodar Complex, Jawanpura, Idar, Dist. Sabarkantha (Guj)

Kovilpatti Selection Seeds Farm IE- 3rd Chekkadi Street, Kovilpatti-628501 Tuticorin District (T. Nadu)

Vishnu Ginning & Seeds Processing Plant At & Post- Via Sherpur, Hasanpur Road, At-Post. Sherpur, Ta. Idar, Dist. Sabarkantha (Guj)

Ellora Natural Seeds Pvt. Ltd. Row House No. 06, Samyak Garden, Hotel Oasis Chowk, Behind Udyog Icen, Waluj, Aurangabad-431136

Arbuda Agro Centre At & Post. Sariyad, Tq. Patan, Dist. Patana (Gujarat)

Indus Valley Agro Seeds Pvt. Ltd. Plot No. 71, H. No. 11-13-1261, Road No.-5, Vasavi Colony, R.K. Puram, Saroor Nagar, Hyderabad-500035

Kisan Beej Nigam 5, M.D. Complex, State Highway, Matoda, Ta. Khedbrahma, Dist. S.K.

Mudit Seeds Panethi, Etah, G.T. Road, Aligarh-202002 (U.P)

Indrani Hybrid Seeds Co. H.No. T-47, NH-7 Road, Damaracheruvu (V), Ramayampeth-(M), Medak, Dist, (A.P)-502101

Sobhari Seeds & Farms 99, Prem Nagar Colony, G.T. Road, Aligarh-202001 (U.P)

Supreme Seeds 10-A, Anaj Mandi, Fatehabad-125050 (Haryana)

Bhawani Seeds & Bio-tech 70, Vikas Bazar, Mathura-281001 (U.P)

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New Members ORDINARY MEMBERS

Sreenivasa Agencies D.No. 9-69,College Road, Pedanandipadu, P.O. & Mandal Guntur District-522235

Raj Seeds Company Kotli Road, Maur Mandi-151509 Distt. Bathinda (Pb)

Bhishma Diagnosis 207, Liberty Complex, Swastik Char Rasta, Near S.T.Xaviers Ladies Hostel, Navrangpura, Ahmedabad-380009 (Guj)

Janak Seeds Shop No. 89-B, New Grain Market, Indri, Karnal

Vasanth Agri Biotech Pvt. Ltd. Plot No. 408/B, 3rd floor, Rajendra Nagar, Station Road, Mahabubnagar-509001 (A.P)

Aujla Seeds Machhiwara Shop No.54, New Grain Market, Machhiwara, Tehil: samrala, Distt. Ludhiana (PB)

Sai Bhavya Seeds Pvt. Ltd. D.No. 451/8, B.G. Complex, NH-7, 'x' Road, Bhoothpur-509382 Dist Mahabubnagar

Sadbhawna Seeds Corporation SCF-17,Grain Market, Rania (Sirsa)

Punjab Agro Seeds Shop No. 19, Nai Anaj Mandi, Sirsa-125055 (Haryana)

Shri Ram Traders Kotli Road, Maur Mandi-151509 Dist. Bathinda (Pb)

Naveen Seeds Company Near Bus Stand, Tehsil Indri, Distt. Karnal-132041 (Har)

Tera Tera Seeds Banskhera Kala, Dhakiya Gulabo Road, Kashipur, U.S. Nagar-244713 (Uttrakhand)

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Business Opportunities in Agri/Seed Segment in SAARC Countries

New Members ORDINARY MEMBERS

Haldhar Seeds & Agrotech Pvt. Ltd. Jalesar Road, Awararh-207301 Dist. Etah (U.P)

Swastik Seeds Co. Near Dhani Satnam Singh Road, Rania Dist. Sirsa (HR)

Shri Ganesh Seeds C/o Aggarwal Trading Co. Oil Court Road, Mansa-151505

Singla Seeds Behind Anaj Mandi, Rania-125076 Dist. Sirsa (HR)

Punjab Agri Seed Farm C/o Shop No.231,Old Grain Market, Mansa-151505 (Pb)

Goyal Corporation Near Railway Station, Babrala, Distt. Sambalpur (U.P)

Hitech Kamboj Seeds H.No. 1739, Sector-9, U.E, Karnal (Haryana)

Garg Agro Seeds Vikampur- Bazpur, U.S. Nagar-262401 (Uttarakhand)

Unnat Beej Company Janta Bhawan Road, Opp. 2nd Gate, Anaj Mandi, Sirsa-125055(Haryana)

Dashmesh Hybrid Seeds Rania Road, Sri Jiwan Nagar, Sirsa-225075 (Haryana)

Namdhari Agro Seeds Behind Govt. Women Polytenic Collage, Shamshadbad Patti, Sirsa-125055(HR)

Pure Line Seeds R-58, Industrial Area, Sikandrabad, Distt. Bulandshahr-203205 (U.P)

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Business Opportunities in Agri/Seed Segment in SAARC Countries

New Members ASSOCIATE MEMBERS

Directorate of Seed Research (Indian Council of Agricultural Research) Village Kushmaur, P.O. Kaithauli, MAU-275101 (U.P)

Shankranti Seeds Survey No. 35/2, Vajarahalli Village, Bidadi Hobli, Bidadi, Ramnagaram-562109

Tierra Seed Science Pvt. Ltd. "Mahalaxmi Courtyard", Khaja Guda, Golconda Post, Hyderabad-500008

Shipra Overseas India A-61, Industrial Area, G.T. Karnal Road, Azadpur, Delhi-110033

Enza Zaden India Pvt. Ltd. 168/169, Bizz Bay Complex, Opp. Clover Hills, NIBM Road, Kondhwa, Pune-411048

Uday Agro Centre 61, Aditya Complex, Near Bus Stand, Deesa-385535 Dist. Banaskantha (Guj)

Royal Seeds & Fertilisers Pvt. Ltd. 181/35,Dakshindari Road, 1st Floor, Kolkata-700048

Krishna Seeds Shop No.1, Old Gunj Road, Chokshi Block, Gurunanak Chowk, Palanpur-385001 Dist. Banaskantha

Amar Immunodiagnostics Pvt. Ltd. 242/1, Road No.18, Jubilee Hills, Hyderabad-500033

Uma Ginning & Seed Processing Plant At- Post. Shreeji Chambers, First Floor, Jawanpura, Tq. Idar, Dist. Sabarkantha (Guj)

Radikal Foods Ltd. 28,Communitee Centre, Radikal House, Saket, New Delhi-110017

Balaji Seeds B/4, First Floor, Kuber Plaza Complex, Nr. G.E.B. Idar-383430 Dist. Sabarkantha (Guj)

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New Members ASSOCIATE MEMBERS

Shree SAI Seeds Co. 22, Sardar Patel Marketyard, Near Durga Complex, Himmatnagar-383001 (Guj)

Sarvoday Agro Seeds Corpn, Opp. Jawanpura Panchayat Market, Shop No.12, Idar, Ta. Idar, Dist. Sabarkantha (Guj)

Arbuda Seeds Processing Unit At & Post: House No. 941, National Highway No. 14, At & Posr: Bhiladi, Tq. Deesa, Dist. Banaskantha

Chaudhari Fertilizers At-Po. Poshina, Tq. Poshina, Dist. Sabarkantha (Guj)

Uttam Seeds Opp: At & P.o.Dena Bank, Tq. Khedbrahma, Sardar Patel Road, Dist. Sabarkantha (Guj)

Surya Seeds B, 'City Centre', Opp. Sabar Sheet Kendra, Highway Road, Idar-383430, Dist. S.K. (Gujarat)

Shiv Seeds Co. 1, Anandprabha Shopping Centre, Behind Taluka Panchayat, Idar-383430 (Gujarat)

UNT Seeds 109, Ambica Chembers, Opp. Damodar Complex, Idar (Gujarat)

Arbuda Agro Traders At-Po; Deodar, 17, Soni Complex, Market Yard Road, Tq. Deodar-385330 Dist. B.K (Gujarat)

Diamond Seeds Station Road, At & Post- Jadar, Tq. Idar, Dist. S.K.-383110 (Gujarat)

Neelam Seeds Corporation Srinagar Road No. 4, At, Post. Tehsil: Idar-383430 Sabarkantha (Guj)

Swarna Seeds 16, India Exchange Place, 3rd Floor, Room No. 6, Kolkata-700001

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Business Opportunities in Agri/Seed Segment in SAARC Countries

New Members ASSOCIATE MEMBERS

Nico Orgo Manures Opp. Railway Station, Dakor-388225 (Gujarat)

Hari Seeds Trader H No. 118/5, Mohan Nagar, Back Side of Jindal House, Kurukshetra-136118

Bhumishree Seed Farm Vill.& Po. Gajdharpara, P.S.& Block- Berhampore, Dist. Murshidabad-742102 (W.B)

Daawat Foods Ltd. Plot No. 7, Satlapur Growth Centre, Phase-II, Industrial Area, Mandideep-462046 Distt. Raisen (M.P)

Uttarakhand Seeds & Tarai Development Corporation Ltd. Pantnagar, P.O. Haldi-263146 Distt. Udham Singh Nagar (Uttarakhand)

Geolife Agritech India Pvt. Ltd. 301, Marathon Max, LBS Marg, Mumbai (W) Mumbai-400080

Satman Agri Shine Seeds 25, Central School Scheme, Ratanada, Jodhpur (Rajasthan)

Veda Seed Sciences Pvt. Ltd. # 6-11-5, Arundelpet 11/2, Guntur-522002 (A.P)

Fortune Rice Limited 449-456,1st Floor, Naya Bans, Khari Baoli, Delhi-110006

Bharat Seeds Ambaji Highway, GG Market, Near Old Bus Stand, AT-Post-Ta- Khedbrahma, Dist. Sabarkantha

Mittal Agrotech Talwandi-Rampura Road, Maur Mandi-151509

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Business Opportunities in Agri/Seed Segment in SAARC Countries

New Members PUBLIC SECTOR Gujarat State Seeds Corporation Ltd. " Beej Bhavan" Sector-10A, Gandhinagar-382010

ASSOCIATION MEMBER Seed Industries Association of Maharashtra E-8,9,10, ABC Complex, 4th Floor, Opp. Dist. Court, Adalat Road, Aurangabad-431001

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Business Opportunities in Agri/Seed Segment in SAARC Countries

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