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
 Table 1: Hybrid Vegetable Sales and Imports
Crop All India Sales (Tonnes) Value (US $ million) Imported Seeds (%)
Okra 500 8.16 0
Eggplant 15 1.84 0
Tomato 28 8.57 2
Chilli 15 5.5 50
Capsicum 1.0 1.02 40
Cabbage 40 6.12 100
Cauliflower 10 3.27 70
Cucumber 3 0.42 15
Melons 5.5 0.84 20
Watermelons 40 3.27 15
Gourds (total) 30 1.44 30
Total 632.2 40.45

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

Table 2 : Open Pollinated Varieties - market size, value & overall seed market size
Crop OPV OPV TOTAL (OP + Fis)
Qty in Tonnes Value in $ million Value in $ million
Brinjal 250 1.531 3.371
Okra 3800 9.846 18.006
Onion 2190 12.296 12.420
Chilli 403 3.701 9.201
Tomato 300 2.437 11.107
Cauliflower 400 3.930 7.200
Cabbage 100 1.186 6.772
French beans 2085 2.126 2.126
Cluster beans 1350 2.154 2.154
Bottlegourd 500 2.093 2.999
Ridgegourd 500 1.681 2.125
Spoongegourd 100 1.905 1.95
Beetroot 40 0.8 0.8
Dolichos bean 500 2.55 2.56
Watermelon 800 2.701 5.971
Muskmelon 300 4.286 5.126
Cucumber 1000 14.335 14.758
Pumpkin 50 0.240 0.309
Radish 800 2.43 2.43
Carrot 800 15.984 15.984
Capsicum 25 0.868 2.137
Bittergourd 300 4.300 4.757
Peas 8000 8.163 8.163
Knolkhol 70 0.429 0.429
Coriander 8000 16.327 16.327
 Total 32663 118.299 159.182

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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