The Indian seed companies are eyeing the export markets in SAARC (South Asian Association for Regional Cooperation) and African countries with a host of hybrid seeds and best farm practices. The seed producers, who are seeking to expand their horizons, are cashing in on the poor market infrastructure in East and West African countries and appetite for hybrid seeds in the SAARC region.
Some of the Indian companies like J K Seeds, Namdhari Seeds, Nuziveedu Seeds, Nath Seeds, Rasi and Vibha Seeds have already entered the markets in Bangladesh, Pakistan, Sri Lanka and Nepal in the SAARC region and East and West African countries. While most of them have already commenced exports to the SAARC region, many of them are actively engaged in carrying out field trials in the East and West African markets.
According to V N Kulkarni, scientist and head of international business at Hyderabad-based JK Seeds, “SAARC as a region is a huge market because; the germ plasm which is adaptable in West Bengal and Punjab can be easily adapted in Bangladesh, Pakistan and Sri Lanka. Many crops grown in India are also grown in these countries. So without any extra R&D cost, expansion can be done in these countries.”
The seed market in Bangladesh and Pakistan put together is worth Rs 500 crore and growing at the rate of 15 per cent annually. It is expected that the entire seed market in SAARC region including India is of the order of $1.5 billion (about Rs 7,000 crore) currently and expected to reach $2.5 billion (about Rs 11,250 crore) by 2013-14. The absence of hybrid seeds in these countries offers a huge opportunity for Indian companies, as most of them have developed expertise in hybrids, he said.
In these countries, germ plasm and biotech trials play a very important role. The knowledge of growing hybrid and packing technology into hybrid seeds is not comparable to India’s. SAARC countries, except India, are still using open pollinated varieties. India, fortunately, is one of the world leaders in hybrid seed production. These countries can access this technology from India. It works out to be more economical and friendly for them, he noted.
According to C L Laxmipathi Gowda, Global Theme Leader, Crop Improvement and Management, International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), the opportunities for Indian seed companies in Africa are immense. Mostly, because the infrastructure for markets are really not well developed. Particularly, in West Africa, the market infrastructure in general and then the input market like pesticides and fertilisers is very very poor.
“If the farmers want to buy the fertilizers or seeds, they will have to go long distances. They don’t have markets nearby. So in that situation, if Indian seed companies who have very good experience of larger market base with many traders and good network of traders, can go and establish seed marketing network now, they can expand their market share very quickly,” he said.
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The Indian companies should partner with the local small traders and train them and try to see that this network of marketing chains gets established. Companies like JK Seeds and Pioneer International have sent hybrid seeds for experiment in Africa, he said.
Gowda said some companies have formed an Alliance for Green Revolution in Africa (AGRA), which is funded by Bill and Melinda Gates Foundation and Rockefeller Foundation together. They have formed this alliance for green revolution in Africa. They are trying to train and develop traders for input supply of seeds and fertilizers.
“Indian seed companies have much better chance of success. Farmers in Africa are spending lot of money for hybrids, which are coming from Europe or USA. These varieties are not very adaptable to tropical conditions of Africa. Whereas Indian hybrid varieties can be adapted as weather conditions are similar. They can be adapted to west and east African countries,” Gowda said.
The Indian seed firms are presently experimenting hybrid seeds in East and West African countries. Sorghum, pearl millet, rice, maize, sunflower and vegetables are under experiment stage. “It’s a continuous process and within three to four years time, Indian seed companies can have a foothold in African markets as the arable land in Africa is of the order of 200 million hectares. So, the opportunities are huge for us,” Kulkarni added.
However, he said the Indian seed companies need to overcome the problem of lack of harmonization in seed laws among SAARC countries. SAARC as an entity, should allow free trade of seeds for Indian companies to taste greater success.
“Unnecessary plant quarantine measures should not be put as hurdle for seed trade. Whatever we are doing in India was applicable to the SAARC region. So there should not be any hurdle on crops. For example, Sri Lanka does not allow Indian corn and hybrid rice to be experimented in their land. However, they allow the same from Thailand and China. Pakistan does not allow Indian cotton. Rice is a notified crop in Bangladesh. If we harmonise the seed laws in the region, there is a huge market for Indian companies to look beyond the boundaries,” he added.
Indian companies are also involved in knowledge and capacity building in these countries. They are currently multiplying seeds in India and exporting. Currently, Indian seed exports to all SAARC countries are of the order of Rs 50 crore. It is expected to reach the Rs 200 to Rs 300 crore within two years.
The MNCs operating in India like Syngenta, Monsanto and Pioneer are also trying to expand their business in these regions with the help of the germ plasm developed in India. They are using India as a hub to enter other markets.
Pakistan and Bangladesh are emerging as big markets for Indian seed companies. Presently, the government of Pakistan has allowed Bt cotton for experiments only, although close to 70 per cent of its 3 million hectares of cotton area is covered with illegal Bt cotton. They have allowed companies like Bayer and Monsanto to carry out experiments.
S V R Rao, Senior Vice President, Nuziveedu Seeds Pvt Ltd of Hyderabad said, “We have sent our Bt cotton samples to Pakistan for trials in Lahore area to test for resistance against cotton leaf curl virus. Once the trials are succeeded, we will apply to the government of Pakistan for commercial launch.”
Another firm, JK Seeds is in advanced talks with Pakistan government for permission to export Bt cotton seeds. “Within next four years there will be some change in Pakistan. Opportunities for Indian companies are huge, but restricted presently,” Kulkarni said.
Indian firms are also experimenting vegetable seeds in Sri Lanka, as their plant quarantine regime does not allow Indian corn and rice.
West Asia is another potential market for Indian seed companies to export. For example, 3 grams of tomato seeds fetch $180 in Turkey and one watermelon seed is priced at $2 in many countries, Kulkarni added.