SEEDS of CHANGE

According to TechSci Research, the Indian seed market is valued at $3,914.36 million in 2023 and is projected to grow at a CAGR of 7.41 per cent by 2029. The seed industry has recently gained the attention of investors and Indian investors are eager to see Initial Public Offerings (IPOs) from the seed industry.

- Nitin Konde

The government has authorised FDI in agricultural fields such as development and production of seeds and planting material. Apart from this, many private entities are getting attracted towards seed companies and are investing in them. The latest example is Summit Partners, a private equity group, that has bought a minority investment in two of India's leading seed companies, Nuziveedu Seeds Ltd. and Krishi Dhan Seeds. Crystal Crop Protection Limited recently made a smart purchase from Kohinoor Seeds by acquiring the Sadanand Cotton Seeds company. Leading seed companies are also incorporating cutting-edge digital technologies to mitigate the effects of pests, climate, and other external variables on farming, propelling the market to expand. Data science, Al tools, cutting-edge phenomic analysis, and genomic sequencing are being leveraged to enhance production. However, there are certain challenges that are hampering the growth of this sector. For instance, marginal investment in R&D, short shelf life, unpredictability of demand, lack of effective monitoring mechanism, among others, are becoming a dampener in this growing sector. Let's take a closer look at the Indian seed sector and gauge the projections for the future.

Over the decades, farmers across India have evolved a complex formal, informal, and integrated seed system that began with the age-old practice of saving seeds from preceding harvests. The diversity of formal seed systems has matured and the Indian seed industry has undergone significant transformation in the past 30 years.