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India Rice EGS Case Study Early Generation Seed System Case Study India Rice August 2019 Table of Contents India Rice Case Study Executive Summary 1. Market Dynamics 2. Leadership 3. Research & Varietal Development 4. Demand Planning & Operations 5. Financial Sustainability 6. Enabling Environment Appendix 1 Acronyms ABBREVIATIONS DESCRIPTION ABBREVIATIONS DESCRIPTION All India Coordinated Rice Improvement IPRD Integrated Program for Rice Development AICRIP Project IVT Initial Varietal Trial AVT Advance Varietal Trial Kg/ha Yield (Kilogram per hectare) BS Breeder seed KVK Krishi Vigyan Kendra CS Certified seed Mha Million hectare Department of Agriculture, Cooperation and DACFW MMT Million Metric Tons Farmers Welfare MSP Minimum Support Price EGS Early generation seed MV Modern varieties FLD Frontline demonstration NARS National Agriculture Research System FS Foundation seed NFSM National Food Security Mission FSII Federation of Seed Industries GOI Government of India NIC National Informatics Centre HYV High yielding varieties NRRI/CRRI National Rice Research Institute (formerly Central Rice Research Institute) ICAR Indian Council of Agricultural Research NSAI National Seeds Association of India Integrated Cereals Development Programme ICPD in Rice based Cropping System Areas NSC National Seed Corporation IET Initial Evaluation Trial NSRTC National Seed Research and Training Centre IIRR Indian Institute of Rice Research OPV Open Pollinated Variety 2 Executive Summary 3 SEED SYSTEM Strong Federal and State Institutions Enable OVERVIEW the Rice Seed System STRATEGIC OBJECTIVES VARIETAL DEVELOPMENT & SEED DEPLOYMENT Varietal Development Seed Multiplication Quality Seed Production Varietal development for India’s rice is Breeder seed (BS) multiplication takes place Certified seed (CS) and truthfully conducted through state agriculture universities at SAUs and ICAR research stations under the labeled (TL) seed production is done by (SAUs) and national institutes, with funding and observation of the government of India (GOI). 16 SSCs, ~5 farmer cooperatives, and strategic coordination from the Indian Council of Foundation seed is multiplied at a state level more than 100 private companies. Agricultural Research (ICAR). Private companies by state seed corporations (SSC), the National There are 26 state seed certification have also begun purifying and making Seed Corporation (NSC), and licenced private agencies (SSCAs) that provide seed proprietary selections of notified varieties within companies, which order and receive breeder quality assurance at a state level. the open pollinated variety (OPV) segment in seed allocations through a structured demand recent years. planning and production process. INDUSTRY ADVOCACY & MARKET TRENDS Industry Advocacy Demand Segments Industry Advocacy Market Trends Conducive policy reforms and government support has Certified and truthfully labeled OPV seed production in India spurred the seed industry’s transformation with new seed increased threefold between 2001 and 2017 in response to higher policy (1988). Government support for the role of the demand for quality rice seed. Proprietary OPV (private sector) is a private sector, combined with effective advocacy from the fast-growing, new market segment (12% of area). Demand for National Seeds Association of India (NSAI) and the hybrid rice (8% of area) has also increased significantly. Rice Federation of Seed Industries of India (FSII) contribute to seed exports are small but expanding, with seed now exported to an enabling environment that supports seed companies’ more than 10 countries. ability to develop profitable, diversified businesses. 4 SEED SYSTEM India Rice: Planned & Targeted Growth EVOLUTION Sustained Period of Intentional, Structured Government Engagement Productivity (kg/ha) MMT and M Ha With the support of state 1 20 governments, GOI has 3,000 implemented various Production (MMT) Productivity (Kg/ha) Area (Mha) rice development programs since the 2,500 1 00 1950s, including: Rice Seed Minikit 2,000 80 State-level Training on Rice Production Technology Special Rice Development 1,500 60 Special Food grains Production Programme (SFPP)-Rice 1,000 40 Integrated Program for Rice Development (IPRD) Integrated Cereals Development Programme in Rice based Cropping 500 20 System Areas (ICDP-RICE) Promotion of Hybrid Rice National Food Security Mission 0 0 (NFSM)-Rice 1951 to 1956 1956 to 1961 1961 to 1966 1969 to 1974 1974 to 1979 1980 to 1985 1985 to 1990 1992 to 1997 1998 to 2002 2002 to 2007 2007 to 2012 2013 to 2017 Frontline Demonstration-Rice 1st Plan 2nd Plan 3rd Plan 4th Plan 5th Plan 6th Plan 7th Plan 8th Plan 9th Plan 1 0t h Pl an 1 1t h Pl an 1 2t h Pl an 5 Source : Rice in India during Tenth plan , Directorate of Rice Development MARKET Formal Seed System Expanding to Meet DYNAMICS Demand for Improved Seed All India Rice Seed Distribution1 Evolving Indian Rice Seed Market Structure2 000’ MT 900 60 Farmer Saved Seeds OPV-Public Proprietary Hybrids Proprietary Varieties Distribution of Certified/ Quality Rice Seeds (000'MT) 800 Seed Replacement Rate (%) 50 100% IN PERCENTAGES IN 3% 700 10% 12% 17% 8% 600 40 80% 20% 500 30 60% 400 90% 300 20 40% 80% 60% 200 10 20% 100 0 0 0% 2001-02 2006-07 2011-12 2016-17 2000 2008 2018 * SRR ranges between 40% to 48% if informal seed distribution is also considered (1) GOI, Agriculture Agricultural Statistics at a Glance 2017 6 (2) Context expert analysis SEED SYSTEM Formalization Supported by Public Sector Varietal STRUCTURE Development & Breeder Seed Deployment Germplasm/ Foundation/ Certified Primary Distribution/ Breeder Seed Distribution Varieties Basic Seed Seed/QDS Production Consumers Financial sustainability PRIVATE SECTOR PUBLIC SECTOR Certified/TL OPV seed CERT/TL seed Low Medium High demandCERTIFIED/QDS forecasting and Govt. demand forecasting and ≤ 1/3 of 2/3< x >1/3 ≥ 2/3 of productionSEED planning production planning OpEx of OpEx OpEx Public ~12% OPV, ~8% Hybrid Private ~20% Sector participants Sector SEED ~60% FOUNDATION SEED Own Farmer Market demand forecasting and CULTIVATION stocks exch. production planning STORAGE Varietal CONSUMPTION Development BREEDER SEED demand forecasting and production planning 7 SEED DSYSTEM E M A N D Public Sector Plays Key Role in Production, P L A NSTRUCTURE N I N G A N D O P E R A T I O N S Distribution, Seed Quality Assurance Public R&D system has made significant Producing Agency Class of Seed Quality Control contributions to the delivery of new modern Monitor by breeders, varieties (MVs) and SAUs / ICAR Breeder Seed certification agencies, hybrids to farmers through institutes and SSCs transfer of technology (TOT) programs, such as on-farm verification trials, frontline demonstrations (FLDs), and the minikit Foundation Seed - I SSCAs and seed program. Public sector (NSC, SSC, state producers, including seed ag department), Foundation Seed - II Certified Seed - I Lead farmers who private sector, and companies participate in TOT cooperatives programs have become Certified Seed - I Certified Seed - II promoters and suppliers of new MV seeds for fellow farmers. Distributor(s) Publicly bred MVs and Retailer other improved germplasm are accessible by the private sector, farmers’ Farmers 8 cooperatives, and NGOs. Source: Context expert analysis EGS DEMAND- SUPPLY Breeder Seed Demand Forecasting & Production PLANNING Planning Is Well-Coordinated & Efficient Agencies: Agencies : SAUs, SSC, NSC, Private Other ICAR institutes sector Seed Division, GOI Seed Division, GOI Indentors Seed Division, Indian Council Breeder Seed Seed Division, (Orderers/Purchasers) Government of Agricultural Producing Government Agencies of India Research (ICAR) of India Indent of Allocation for Allotment for Production of Allotment of breeder seed production production breeder seed breeder seed The breeder seed Decides allocation Makes variety Undertake production Completes the process indent is applied based based on current allocations to and submit actual in 17 months from the state government target varietal various institutions production to the seed date of submission of which is calculated on recommendations, across India. division through ICAR. indents for kharif seed multiplication rate and passes on the season and in 22 (SMR) and seed allocation to ICAR. months for rabi season. replacement rate (SRR) 9 EGS DEMAND- SUPPLY Bottom-Up Demand Forecasting & Top-Down PLANNING Production Planning Process EGS demand and supply system Public sector FEDERAL Research institutions (SAUs and ICAR) are responsible for producing and supplying Bottom-up Top-down breeder seed (BS) of notified crop varieties to Private sector demand production plan both public and private seed companies. forecasting allocation Both STATES ICAR These companies in turn produce foundation Lifting Institutes, seed (FS) from which certified seed (CS) is SAUs produced and distributed to farmers. Allotment for Production of Allotment for production Breeder seed Indents (orders) from various seed producing Seed Multiplication Ratio production agencies are collected by State Departments (SMR) & Seed Govt. of of Agriculture (SDAs) and submitted to Replacement Rate (SRR) ICAR Department of Agriculture, Cooperation and undertaken by states India Farmers Welfare (DACFW), Ministry of Indent of Production of Agriculture, and GOI. Breeder Breeder seed seed Allotment of Breeder The DAC compiles all information on the crop State Seed Corps., seed and sends it to the crop project coordinator at Distributors ICAR who performs the final allocation
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