Vegetable Seed Industry in India - Vibrant & Looking ahead

This paper was presented by Dr. N. Anand, Uday Singh and Dr. O.P. Dutta for the World Seed Congress, Bangalore 2003.

India is the second largest producer of vegetables, with a total estimated production of 84 million tones from 6.2 million hectares and a growth of 2.6%. The present annual requirement of vegetables is estimated to be 100 million tones and is expected to be over 135 million tones by 2010. This leap can best be achieved through use of improved varieties and hybrid technology in combination with superior crop management skills. Substantial increases in productivity can thus be attained even with diminishing land and water resources.

Indians are predominantly vegetarians and depend on vegetables for bulk of their nutrients and minerals. More recently, the role and usefulness of anti-oxidants present in vegetables in human health has been demonstrated, adding value to this set of crops. Vegetables cultivation has been known to stimulate development because it is labour intensive, earns higher returns and involve extra skills. Development in vegetable production will therefore contribute not only to food and nutritional security but also to poverty alleviation and income generation.

Hybrid vegetable technology has made significant impact in most crops in developed countries. India has not lagged behind in adopting this technology. The estimated area under vegetable hybrids has gone up from 192,100 ha in 1993-94 to 416,013 ha in 1999-2000. Vegetable production increased from an average of 10.5t/ha in 1991-92 to 15.2t/ha in 1999-2000 amounting to an increase of 52%. Figures on area, production and productivity over the last decade (Fig.1) reveal that overall production showed an upward trend while the total area showed an erratic movement and had an increase of only 0.42%. During the corresponding period, there had been a substantial growth in hybrid seed usage in India and this can be directly attributed to the steep increase in total production and productivity.

With intensive cultivation using hybrids, the average yields under open field condition in India has been steadily increasing and the yield difference with developed countries is getting narrower. It is not uncommon to see growers achieving yields of 100 tonnes per hectare in tomato, 50 tonnes/ha in watermelon, 70 tonnes/ha in eggplant and 35 tonnes/ha in chilli pepper. The advantages conferred by hybrids include higher yields, increased harvesting period, better adaptability, better transport quality favoring the growers and occasional disease resistance. The consumers are benefited by better quality of hybrids, in terms of eye appeal, keeping quality and the hidden and yet, all-important nutritional value. Realizing the benefits that accrue in terms of productivity and the possibility of enhanced income, hybrid cultivation has become popular in traditional vegetable belts.

Private Sector - on a growth phase

During the seventies, the advantages of hybrid vegetables were successfully demonstrated in growers' fields. In the same period, the vegetable seed industry became more organized. Initially, hybrids in tomato and capsicum made a mark with the growers. Since then, there has been a spurt of activity in the Indian vegetable seed scenario with the hybrid acreage soaring and a number of vegetable seed companies coming into existence.

In the transformation of the largely unorganized seed sector to a more organized one, the policies of the Government of India played a significant role. In 1988, the private sector got a huge boost in growth with the removal of restrictions by a Government order liberalizing seed imports through open general license and removing tariff barriers. This move resulted in import of hybrid seeds in cabbage, cauliflower, chillies, etc. besides large quantities of seeds of carrot and beetroot by private seed companies. This Act also encouraged healthy competition in local research efforts leading to release of several hybrids by the private seed industry. Subsequently foreign direct investments flow increased, joint ventures (JVs) were set up and there was import of germplasm. Presently the private seed industry comprises of the following categories: (a) Local companies dealing predominantly with open pollinated varieties (b) Indian companies marketing hybrids sourced from abroad (c) Indian companies developing, producing and marketing hybrids (d) Foreign companies (JVs of subsidiaries) have R&D, production and marketing outfits and (e) Foreign companies marketing their products developed abroad. There has been an increased expenditure in R&D of companies in general. Many of the companies spend between 3 and 6% of the turnover on R&D.

Vegetable hybrids - Market segments & Successes

Today the hybrid vegetable seed industry in India is estimated to be $40 million. Tomato occupies nearly 20% of this, followed closely by okra and cabbage (Table 1). Among the hybrid seeds sold, almost the entire quantity of cabbage is imported followed by cauliflower (70%). Other major imports include chillie pepper and capsicum hybrid seeds. These are examples of successes in seed trade, stimulating growth of the industry. The area under hybrids in cabbage, tomato and watermelon is estimated to be in excess of 50% of the total area under the respective crops. In chilli pepper and okra the area under hybrids is expanding sharply as indicated by increased hybrids seed sales.

Today the estimated quantity of tomato hybrids seeds sold in India is 28 tonnes. India is the second largest user for hybrid tomato seeds after USA. The market is getting more refined in terms of quality and yield expectations and there is a clear demand for perfect hybrids. Dual purpose and processing hybrids (determinate) account for the major market share. The market requirements also include hybrids with resistance to major tropical diseases like bacterial wilt and tomato leaf curl virus (TLCV). TLVC resistant segment is getting to be important, with rapid spread of this disease. Indeterminate hybrids are grown in some places. The harvesting season is extended in these hybrids and the fruits have good transport quality. Hybrids with high yields, high acid fruits have a fairly large share of the market in south. Besides the classes of tomato mentioned, there is a need for hybrids with resistance to tomato spotted wilt virus in south and west, higher levels of resistance to TLCV and cold tolerant hybrids for sowing in October in the north.

Cabbage is a popular crop in this subcontinent and hybrids have almost completely replaced open pollinated varieties in most areas. This quantity of cabbage hybrid seeds sold is estimated to be as high as 40 tonnes. Preferences for size and shape vary widely between regions and also between seasons in the same region. In West Bengal the season begins (June/July) with KK cross type, moves to Green express type for August sowing and in the main season, hybrids with very firm heads, weighing two kgs and with good field holding capacity are popular. In Maharashtra, small (1 kg) round firm heads are preferred while in Karnataka, varieties with large semi flat (2.5 kg) heads dominate the market. In general, resistance to black rot and diamond back moth, heat tolerance and good field holding capacity are important requirements.

Chillie pepper occupies the largest area (0.6 million acres) among the vegetable crops in India. During the last five years there has been a rapid change to hybrids in most states, especially in the largest chillie growing state of Andhra Pradesh. In this crop also there are different market needs with

Distinct preferences for pungency and colour. While very pungency (>70,000 Schoville Heat Units is the requirement for use in fresh market and as dry powder, medium pungency (30,000 SHU) is required for pickle making and low pungency coupled with attractive deep red colour is another preference. The grower's needs also include resistance to virus complex and anthracnose fruit rot. Hybrids with resistance to viruses have maintained their market share. Better export promotion strategies in this crop will support increased growth and seed sales in this sector.

In watermelon too, a popular public bred variety like Arka Manik has been replaced by hybrids. The hybrid market share in this crop is around 40 tonnes. The market prefers early hybrids with large size (12 kg), oval to oblong in shape, very good transportability, internal qualities of color, taste (TSS-13%) and texture. Presently, the hybrid watermelon market is dominated by Jubilee pattern throughout the country. Sugar Baby and Charleston types are also grown in some areas while a small market for icebox type (3-4 kg fruits) exists. Resistances to Fusarium wilt and tospo virus are the major requirements for the future.

Okra is a popular Indian vegetable and is estimated that presently 500 tonnes of hybrids seeds are sold annually. Most companies vie for a share of this market, wherein resistance to yellow vein mosaic virus (YVMV) is mandatory. With other viruses like enation leaf curl also showing up, it becomes important to have multiple virus resistant hybrids. New targets may include use of male sterility and resistance to Fusarium wilt.

Although melons are grown in most parts of the country, hybrids are mostly restricted to Haryana, Punjab and Rajasthan belts. Consistent yields, good fruit and transport quality are critical traits. Netted cantaloupe types are preferred while honeydew, sutured melon and Galia types have some niche market. Resistance to virus complex, Fusarium wilt, better adaptability and shipping qualities will favor wider usage of hybrids.

Good quality cauliflower curds are found almost throughout the year, thanks to successful varieties in early, mid and late season groups. In south and west, early and mid season groups are dominated by hybrids. Consistency in curd colour and quality, size and black rot tolerance are prime needs besides suitability to extended sowing periods.

Market needs for eggplant are many, depending on fruit colour and shape. Round with purple and white stripes (with & without spines), green long, purple long, green round and large purple oval are major segments in this crop. In traditional Indian vegetables like cucumber and Indian Gourds (bitter gourd, bottle gourd and ridge gourd) also, hybrids are gaining popularity. Hybrids are preferred because they are early, higher yielding and more uniform. In cucumber, the Asiatic type (green to light green 15-18 cm long) is widely grown.

Although there is diversity in types of products required in each of these crops, many of the companies are able to meet the needs through their breeding efforts. The farmers are also willing to pay more for hybrids seeds, especially if they have some value addition. Hybrid acceptance in tomato, cauliflower, cabbage and watermelon has been spectacular. Acreage under hybrid okra, chilli pepper, eggplant and melons have shown tremendous increases in the last few years. It is expected that in cucumber and Indian gourds also significant increase in hybrid seed volumes will be seen.

Open Pollinated Seed Market - A shift from farmer saved seeds

The open pollinated seed market in India is presently estimated to be around $ 118 million (Table 2). Local and unidentified varieties, referred to as farmer saved seeds, even now occupy large

areas. These estimates are as high as 30 to 50% of the total area in chilli pepper, cauliflower and eggplant, 15 to 20% of the area in tomato and okra, and above 60% of the area in melons. In this class of seeds, cucumber ranks first among the crops in seed sales ($ 14.34 million), followed by onion ($ 12.30 million) and okra ($ 9.85 million). Among the imported seeds sold coriander ($ 16.33 million) and carrots ($ 15.99 million) are valued higher than all others. French beans, cluster beans and dolichos beans have significant seeds ales in the beans group. Cauliflower of different maturity groups for north and east markets, radish, cucumbers and all types of gourds have large sales. A number of superior varieties have been developed and released by Universities / Institutes in various states and many of the private companies and Seed Corporations produce and market the seeds of select varieties in significant quantities. There is sufficient room for growth in this seed sector to replace the local seeds although there is shift to hybrids in some of the crops.

Another significant achievement of the private sector in the open pollinated seed segment has been the import and popularization of high yielding multi-cut coriander, Kuroda, and Nantes carrot with better colour and adaptability and beetroot of high colour and good uniformity. Production of quality seeds in self and cross-pollinated crops, capability to import quality seeds of carrot, beetroot and coriander and neat packaging have helped in sustaining the growth of seed sales in this sector. Greater use of improved varieties and reduction in use of saved seed can be expected to result in enhanced yields and therefore better returns for the growers.

Vegetable Seed Production

India figures among the top three vegetable seed producing countries in Asia requiring hand pollination, others being China and Thailand. In India, commercial seed production for export on a commercial scale was organized during the 70s by two private companies. A number of medium and small sized companies have begun to operate now in this venture covering seed production in most of the solanaceous and cucurbitaceous crops for internal market and exports. They include Namdhari Seeds, Mahyco, Indo-American Hybrid Seeds, Golden Seeds, Tropica, Exim, Oriental Biotech, Unicorn Biotech, etc. Custom production for export is mainly for companies in US, Europe and Japan. Vegetable seed export constitutes nearly 70% of total seed exports. It is estimated that seeds valued at $ 63 million have been produced and exported during 2000-01.

India is endowed with several advantages making it competitive for production of hybrid vegetable seeds for foreign companies and meeting international seed quality standards. Seed production areas have been identified, developed and seed villages organized on a professional scale. Reasons for India's success in hybrid seed production include availability of skilled labour (pollinators and growers) at inexpensive rates, skilled supervisors and favourable climate for production of major crops like tomato and cucurbits over an extended production season. Systems to import parent seeds and export of hybrid seeds are in place. The Government has been supportive of export-oriented activities.

The state of Karnataka produces nearly 90% of the total hybrid vegetable seeds, the major areas being located around Ranebennur in the northern part of the State. Availability of trained labour and guaranteed returns and incentives for quality have helped in setting up of several seed villages. The returns can be as high as three times as that of crops for market purpose from the same area. This has also helped in improving the socio-economic scenario of these regions, including overall prosperity, narrowing down of rural / urban divide and employment generation especially for village women and youth.

It is estimated that the total employment generation is over 7,00,000 in this sector. This is one of the most significant achievements of this agricultural activity leading to improved per capita income and quality of life. Hard work and diligence of the farm workers involved have helped in meeting the international seed quality standards, which in turn has led to continued growth of the business. New areas for production are also being added, extending this benefit to other rural areas. India has a major advantage in having a choice of latitudes and altitudes to select appropriate seed production areas. Some of the progressive companies have also set up greenhouses for successful production for difficult-to-produce crops like capsicum. Availability of quality technical expertise, increased production and productivity of hybrid seeds of international standards, reduced risks and maintaining low costs have helped to make custom seed production a viable opportunity for foreign companies in India.

Public Sector - Contributions and Strengths

The initial impetus to the vegetable variety development was from public institutes. Several high yielding varieties in many crops were released including some with disease resistances. These institutions continue to develop and release new varieties and hybrids. Popular varieties released by the Institutes are produced and marketed by many small and medium sized companies. These include Arka Anamika in okra, Arka Manik in watermelon, Arka Vikas in tomato, G4 in chillies, Hara Madhu in melons, Arka Komal in beans besides others.

The private seed companies have also been benefited as these releases formed the base material for the start of their breeding programs. Okra hybrids developed and sold by private companies today owe their success to releases resistant to YVMV like Arka Anamika, Parbani Kranti and A4. In tomato also, the private industry has successfully used the bacterial wilt resistant lines released from public institutes like IIHR, Bangalore to develop resistant hybrids. Many of the Institutes and Universities have formulated rules by which the seed companies can buy their varieties including parents of hybrids.

Biotechnology is an important growing area today with wide applications. The tools of molecular biology can be dovetailed with conventional breeding programmes enabling great advances in crop improvement. Many of the public Institutes have reasonably strong programs in this area. The objectives include marker - assisted selection (MAS), markers for use in purity tests and transgenics. Some of the companies have state of the art laboratories for molecular biology. Projects underway in Institutes and private companies include introduction of Bt gene into brinjal, tomato, cauliflower and chillies for insect resistance as well as engineering TLCV resistance in tomato. It would be important to prove the usefulness of the introduced gene(s) and also demonstrate biosafety aspects. With regulatory agencies in place, testing procedures and schedules worked out, it is expected that transgenics, when developed with the advantages demonstrated, will find favour with the growers. Strong linkages and joint operational projects in areas of molecular biology with public institutes will help medium sized private seed companies to utilize the scientific talent available in public institutes and benefit from costs of research.

Government and Seed Industry

During the last decade Governments, both central and state, and other related agencies have been supportive and proactive. It can be expected that further removal of controls and restrictions, which impede growth of the industry, will facilitate in making this sector stronger. India is also a signatory to WTO and the barriers for seed trade have been removed. PVP bill has been passed by the Parliament and this is expected to generate more investments in R&D. Government Institutes provide breeders seeds at reasonable prices. Private participation is also welcomed in coordinated trials conducted by ICAR. Above all, removal of seed trade barriers in 1988 has been a milestone. This new seed policy greatly helped import of vegetable seeds. As a further fillip to this industry, under the industrial policy, seed production was declared as a high priority industry in 1991.

Private Sector - Peep into Future

The growers and consumers today have a better and wider choice of products and this has a strong parallel with the activities and offering from the private seed sector. R&D activities have been strengthened and new hybrids with disease resistance and better quality have emerged from private sector, which are rapidly gaining ground.

In crops like tomato, cabbage, cauliflower, chilli pepper, melon, watermelon and okra where strong hybrids have emerged and growers have not hesitated to pay more for value added products like disease resistance, seed sales have grown over the years. While there appears to be room for rapid growth in okra, chilli pepper, and cucumber, specialty traits or incorporation of disease resistance genes will be the key for augmenting growth of hybrid seed sales in tomato, melons, watermelons, cauliflower, etc. Eco-friendly hybrids with biotic / a biotic stress tolerance will have big market share and these are expected to perform well in off-seasons also. Products with good transport quality and better shelf life will be preferred by traders and also by consumers. Choice of growers and consumers keep changing and is not consistent over regions. It is important that R&D units reorient on shifting time scales dictated by market compulsions. Super markets in cities bringing in quality vegetables, well packed and presented provide scope for premium quality, unique new products and convenience items (icebox watermelon) as well as novelty items (cherry tomato, colored bell pepper, baby corn, asparagus, lettuce, etc.). Processing industry will have specialized needs in crops like tomato and chilli pepper.

Efforts to economize seed production costs will be important. Seed quality and treatment will become key points for growers to make choices and there is a need for upgrading quality control laboratories to meet international standards. Biotechnology products will have scope if clear advantages are demonstrated along with safety aspects to consumers.

A right blend of research activities of private and public enterprises is prevailing. Import of cabbage, cauliflower, chilli and capsicum hybrids besides large volumes of open pollinated varieties in carrot, beetroot and coriander exemplifies the successful functioning of international seed trade. Seed associations are ready to take up the cause of the industry, to support effective and efficient seed trade with other countries for imports.

Success and continued growth in the private sector will depend on customer needs, development of need-based hybrids, development of efficient and appropriate technologies in frontier areas and germplasm enhancement. The Indian vegetable seed industry has the requisite technological skills and strength to provide the varietal needs of the future.

India has a unique opportunity in terms of breeding a range of vegetable crops. Competent breeders capable of developing superior hybrids, backed by strong production capabilities can galvanize the industry towards development of hybrids not only for the Indian subcontinent but also for other Asian and middle-eastern countries. India has a vibrant vegetable seed industry and appears to be on the right track for a bright future.

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