Seed industry pins hopes on monsoon for double-digit growth this year

After clocking single-digit production growth in 2015, the Rs 20,000-crore Indian seed industry is pinning its hopes on good monsoon to achieve double-digit growth.

The industry grew at 12 per cent in 2012 and 2013, before slowing down a bit. It now hopes to achieve 12 per cent growth again in 2016, thanks to Met forecast of above-normal monsoon.

Te demand for cotton seeds is expected to decline a bit as farmers are likely to switch to other crops after bad experience with BT cotton last year. Paddy farmers have already started purchasing seeds and the industry expects demand for oil seeds and seeds for other kharif crops to go up by June-end.

"Since last two years, growth of seeds industry was limited to single-digit. But this year we expect the industry to be back on track. If everything goes well, the market could increase to over Rs 20,000 crore," said M G Shembekar, managing director, Ankur Seeds.

According to Shembekar, weak economical situation, coupled with poor monsoon had resulted in a decline of growth in the past two years. Nearly 50 per cent of demand for seeds is fulfilled by private companies and about 40 per cent is accomplished by state and Union governments. The remaining 10 per cent seeds are developed by farmers on their own. After the bad experience of drought-like situation for two years, farmers this year are waiting for rains before buying seeds from the market. Usually, by June first week, farmers start buying seeds and fertilizers. "Because of bad experience of last year, farmers are waiting for first rain.

As on date, demand for seeds has not picked up," said Kalyan Goswami, executive director of National Seed Association of India.

Shembekar said, "As farmers had faced trouble with BT cotton last year, this may shift them to other crops. However, seed demand for paddy and pulses will be good."

United States Department of Agriculture (USDA) has forecasted India soybean production for 2016-17 at 11.70 million tonnes, up 58 percent from last year.