The document discusses the potential of the seed business for agri start-ups, highlighting the current status, opportunities, and challenges in the Indian seed industry. It identifies the growing demand for quality seeds driven by agricultural production needs and outlines the challenges faced by seed companies, including competition and regulatory hurdles. Additionally, the document details support services offered by BPD-JNKVV, including business training and access to improved seed varieties.

1. New market opportunities for agri start-ups
in
Seed Business
Global Agribusiness Incubation Conference
6-8 February 2012
Dr. S. K. Rao
Principal Investigator
Business Planning and Development Unit
Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur

2. Coverage
• Status of Seed Industry
• Opportunities in Seed Business
• Challenges
• How to Make Seed Business Successful
• Incubation Support Services of BPD-JNKVV,
Jabalpur
2

3. Thrust Areas in Agriculture
• Need for increase food grain production
• Technologies to produce crops with less water, less
fertilizer and other inputs
• Enhancing disease and pest tolerance
• Breed crops to enable farmers practice sustainable
agriculture
• Develop technologies to reduce labour and enable
mechanization
3

4. Impact of Quality Seed
Year Food Grain Cotton Oil Seeds Quality seeds
Production Production Production distributed
(million tonnes) (million bales) (million tonnes) (lakh qtls)
1950-51 50.82 3.04 5.16 -
1960-61 82.02 5.60 6.98 -
1970-71 108.42 4.76 9.63 5.0
1980-81 129.59 7.01 9.37 35.0
1990-91 176.39 9.84 18.61 57.10
2000-01 195.92 9.65 18.40 85.44
2007-08 227.30 31.00 28.82 110.00
Quality seed supply is one of the important factors
driving agricultural production in India
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5. Global Seed Markets
Country Value ($ Million)
• $ 42 bn seed market USA 12,000
world wide China 6,000
France 2,400
Brazil 2,000
• India is among top five India 2,000
countries at $ 2 bn Japan 1,400
Germany 1,261
Italy 780
• Growth of Indian seed Argentina 600
industry is on an Canada 550
average 20% World 42,000
Source: ISF 2011

6. Indian seed industry
• Govt. Sector - NSC, SFCI and 14 SSCs
• More than 500 private seed companies operating
at various levels.
• Total value of seeds sold in India is estimated at Rs.
15,000 Crores
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7. Opportunities for seed business
• Seed Replacement Rate is around 25% - huge gap in
quality seed requirement
• Quality seeds will be main drivers of crop production
• Need for development of improved technologies
• Integration with other inputs like crop nutrition and
protection
• Several business opportunities in each stage of the
seed value chain

8. Opportunities for seed business
R&D Production Marketing
• C & F Agents
• Seed Production • Distributors &
• Breeding and Biotech
Organizers Dealers
Research
• Seed Processors • Extension Service
• Transport Agencies Providers
• Warehouses
Farmer Producer Companies, Seed Cooperatives,
Small Scale seed companies

9. Challenges
• Increase in the number of seed companies
• No entry barriers
• Highly competitive markets
• Long production lead-time
• Concentrated seasonal selling period
• Product line is perishable
• Strict regulatory production
• Quality assurance systems
• Vulnerable to environmental stresses

10. Challenges
• Development and registration of new products is
often a long process
• Customers are diverse
• Have a wide range of product requirements
• Long-term cash flow
• Inventory management
• Seed production, Processing and quality assurance
• Market knowledge application
• Product evaluation and development

11. KEY ISSUES
Key Managerial Issues Value Chain Component
Customer requirements
Intellectual property Research: Variety Development and
Release procedures Registration
Grower contracts
Production procedures Seed Production
Quality Assurance
Packaging
Processing procedure Processing and Conditioning
Quality Assurance
Advertising
Labeling Information Marketing and Sales
Distribution and Pricing
Extension Information
Customer Support
FARMER

12. How to make seed business successful
Seed businesses are….
• Highly dynamic
• Demanding
• Long-term commitment
• Involvement
• Drawing on the experience of the managers and
employees from within and without the business,
• Observing, learning and applying the daily lessons
from the “shop floor” that will make a difference

13. The three pillars of the business plan
VISION
Production
Products Equipment
People Resources Finance
The vision of a company is supported by three legs or pillars – the
marketing, production and financial strategies

14. Indenting
SEED ENREPRENEURES
Seed association Director of Director to
of India agriculture of each SAUs/ IC/
state Research
ICAR for
GOI prerelease
varieties
ADG [Seeds]

15. Seed for Exports
• Testing of Indian hybrids abroad
• Breeding of hybrids for export
• Strict quality control
• Yield improvement
• Sales promotion

16. Benefits of Being Global
• Earning valuable foreign exchange
• Creation of job opportunities
• Better quality seeds as well as better varieties
• Equitable exchange of germ-plasm coming in from
different countries

17. Business Support Sources
• Technology
– Agricultural Universities, ICAR Institutes, Private
Companies
• Finance
– Commercial Banks, Venture Capitals, Govt. support in term
of subsidies
• People
– Qualified agri. Personnel from SAUs
• Processing facilities
– Available all over India from govt. as well as pvt. players

18. Business Incubation Services offered by
BPD - JNKVV
• Help with business basics
• Networking activities
• Marketing assistance
• Help with financial management
• Access to capital – linking to banks
• Links to university/corporate partners
• Seed Business training programs
• Mentoring and coaching

19. JNKVV Seed Consortium
• Eligible for access to breeder seeds of improved
varieties
• Access to parent materials of hybrids by paying the
license fees
• Seed Company shall sign an agreement with JNKVV
agreeing to the prescribed terms and conditions.
• Consortium membership fee of @ Rs.1 lakh for 5
years

20. Supports Provided from BPD-JNKVV
• Eleven seed consortium members – 4 have licensed
for early maturity hybrid rice
• Fifteen members start ups / cooperatives for seed
business
– Breeder seed support
– Training of seed production technology
• Seed business management training to producer company
CEOs and officials of seed cooperative societies

21. Thank You
Contact at
info@bpd-jnkvv.org
www.bpd-jnkvv.org