Indian Seed Industry– December 2012 Index
The Indian seed industry is the fifth largest seed market in the world, accounting for 4.4%
Outlook and Challenges
of global seed market after the U.S. (27%), China (20%), France (8%) and Brazil (6%). In
Global Agriculture
terms of global trade, India is almost self-sufficient in flower, fruits and vegetables and
Indian Agriculture
field crops seeds. According to NSAI, the market size of Indian seed is expected to grow at a rate of 11% p.a. to $3.2bn till FY16 on account of favorable global grain supply demand fundamentals, grain productivity well below world’s major grain producing regions and government’s continued focus on improving seed replacement rate. Despite improved demand and favorable crop economics, EBITDA margins of most
Agri inputs Value Chain Demand Drivers Global Seed Industry
domestic seed companies declined in FY12 over the previous corresponding period due
Indian Seed Industry
to increase in competition intensity, maturation of growing cotton seed market and
Indian Cotton Seed
significant increase in labor cost on the back on the shortage of labor. Going ahead, seed
Profitability Analysis
industry top-line is expected to continue to witness positive demand trend in FY13, but
Regulatory Scenario
margin may remain under pressure. Over the long-term, companies are targeting to increase the market share in higher margin seed products such as fruits & vegetables and introduction of innovative products which improve the crops yield. CARE Research expects favorable government policies will continue to support the growth of Indian seed industry. Government has exempted domestic seed companies from payment of income tax, excise duty and VAT, allowed 200% of deduction on R&D expenditure under Section 35 of IT Act, provided back ended subsidy to private companies for creation of seed infrastructure, allowed FDI up to 100% under the automatic route in the development and production of seeds and planting material, subject to certain conditions. CARE Research’s report on the ‘Indian Seed Industry’ seeks to answer questions such as: what is the estimated seed demand over the next five years? what are the current levels of seed demand by crop-wise and state-wise? what is the outlook and concern of Bt cotton industry? what are the key cost components incurred by the Indian seed companies? what are the regulatory scenario of Indian seed industry? The report is indispensable for any company operating in seed industry, agricultural input sectors, banks/ FIs, policy makers, research & academic organizations, other international and national agencies, etc.
Company Overview
Advanta India
Monsanto India
Kaveri Seeds
Annexures
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