Ppp seed production

Dr.Vijendra Sangam
DGM & Head
Varietal Research & Development Center (VRDC)
Karnataka State Seeds Corporation ,
Dharwad
12/10/2015Varietal Research and Development Centre, Dharwad 1

• Indian Seed scenario
• Periodic Trends in Seed sector
• Seed systems & Seed Industry
12/10/2015
Varietal Research and Development
Centre, Dharwad 2
• What is PPP
• PPP in Seed sector & Challenges
• Govt Efforts
• Case Study
• Conclusion
Presentation breakup

• The Indian agriculture sector accounts for 13.9 per cent of
India's gross domestic product (GDP) and employs just a little less
than 54.6 per cent of the country's workforce.
• The Department of Agriculture and Cooperation under the
Ministry of Agriculture is the nodal organisation responsible for
the development of the agriculture sector in India.
• The Immediate challenge to the Ministry of Agriculture, is to
sustain the increasing agricultural output of the country. This can
be addressed by developing Technology transfer and seed
Innovation systems.
• Indian seed sector is characterized by diverse crops & vegetables
with both public and pvt sector playing pivotal role .

 Worlds biggest Research System
 India has a mega public sector in agricultural research. There
are 60 agriculture universies, 4 deemed universies and 4 central
universities having agricultural faculty. There are 45 central
institutes,17 national research centers, 25 project directorates,
and 630 Krishi Vikas Kendra More than 35000 agricultural
scientists are working in this public sector
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 Of the various technological interventions seed
is considered as critical basic input for aiming
sustained long term growth in agricultural
production
 Without good seed, investment like fertilizer,
water, pesticides and other input will not pay
the desired dividends
 Agriculture is backbone of our nation while
seed is the backbone of Agriculture

 Seed firms – an important agent in the innovation
system - major concern is in making profit out of
investment on technology development.
 Establishing an innovative seed system for transfer
of technology is need of the hour to enhance
productivity and food security of the nation. PPP is an
effort in that direction.
 In this regard, the role of policy in catering to the
interest of various stakeholders as well as facilitating
the overall growth of the sector becomes crucial.
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Year Favours Domination Key Growth drivers
1963-1983 Establishment of NSC marking a
beginning of formal seed sector
in India (1963),Seeds Act 1966
Public Sector Green Revolution ,launch of
govt schemes like National
Seed Project
1984-1994 The liberalisation of seed policy
in the form of New Policy on
Seed Development (NPSD) in
1988
Entry of private
domestic and
multinational seed
companies &
investment in research
and development,
50-60% pvt
contribution
The rapid growth of
innovations (improved
varieties, hybrids and
proprietary technologies)
and seed markets
1995-2005 Strengthening of IPRs coupled
with liberalised seed policies
Private Sector (80-
90%)
Bt cotton, single-cross
maize hybrids, hybrid rice,
vegetables , strengthening
of IPRs coupled with
liberalised seed policies
2006-2015
2015- Favorable regulatory environs
,Government policies to promote
investment in seed R&D and
infrastructure. Access to
international Markets.
Improvement in SRR
Private/Public Technological
breakthroughs,
Collaborations,Breeding for
climate change,New Biotech
traits

 Seed systems are generally considered to be either formal (commercial) or
informal (farmer‐led).
 Formal seed systems usually consist of public and private sector research (plant
breeding)
 institutions, public and private sector agencies bulking up seed, mostly private
sector companies distributing and marketing seed, and mostly public sector
organisations responsible for seed certification and quality control. In formal seed
systems, all parts of the seed production, processing and marketing chain are
subject to regulation, inspection and certification.
 Informal seed systems comprise large numbers of farmers who produce both
traditional(landrace) and modern (improved) varieties with no regulatory
oversight. They save, process and store seed for their own use as well as sharing it
with their relations, neighbours and other local community members through
exchange, barter, gifts and sales. Help in conservation of biodiversity. Mainly
farmers & NGOs are involved.

Indian Seed Industry Value
The private sector is playing a
vital role. The number of
companies engaged in seed
production or seed trade is of
the order of 400 or 500.

As per available data, the availability
of quality seed is sufficient to meet our
requirement
Source: Directorate of Economics & Statistics, Ministry of Agriculture, GOI
Seeds of new improved varieties are not
available to the farmers at right time and
place
Production of certified seed by following an efficient chain of
BS-FS-CS is still a major concern.
0
100
200
300
400
2004–052005–06
2006–07
2007–08
2008–09
2009–10
2010–11
2011–12
lakhQ
2004–05 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12
Requirement 110.83 107.08 128.74 180.74 207.28 249.12 290.76 330.41
Availability 132.27 140.51 148.18 194.31 250.35 279.72 321.36 353.62

Institute No Activities
National seed
corporation
1 Apex public sectoral central
agencies
State Seed
Corporation
15 Region specific
State Seed farm
Corporation
1 Under NSC
Seed Companies > 400 Research,Production & Marketing

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Varietal Research and Development Centre, Dharwad
14
Seed replacement rates (SRR) in different crops and
states

Low
SRR
Farmers use crop
produce as a seed
resulted in low
demand for quality
seed
Lack of Transfer of
knowledge form
R&D to farmers.
Companies are not in favor
of their demand for
neglected crop/orphan
crop seeds.
Need State
policy
implementation
efforts for tech
transfer
Farmers are generally
not aware of the
correct package of
practices and
replacement schedule
of seed
Fake & Spurious
seeds

Crop Typical
multiplication
rate
Crop Typical
multiplication
rate
Pearlmillet 200 Sunflower 50
Sorghum 100 Cowpeas 40
Rice 80 Wheat 20
Pigeon pea 100 Soyabean 16
Maize 80 Ground nut 8
Cotton 50 Beans 8
Crops with high seeding rates and
low multiplication rates, especially
when the crop has a low market
value, are mostly unattractive to
Private seed companies
The main focus of private seed companies
is on the high value low volume seeds
(Maize,Sunflower,Cotton,Bajra)

Number of Hybrids in Major Field Crops Developed by Private and
Public Sector in India
2002-2010
Private Public Private sector
Hybrids in total
hybrids
Cotton 193 25 88.5
Maize 103 28 78.6
Paddy 23 19 54.8
Pearl millet 82 13 86.3
Sorghum 53 13 80.3
Pigeon 1 2 33.3
Sunflower 48 16 75
Castor 4 9 30.8
Mustard 11 1 91.7

 A public-private partnership is a contractual agreement
between a public agency (federal, state or local) and a
private sector entity. Through this agreement, skills and
assets of each sector (public and private) are shared in
delivering a service or a facility for the use of the general
public. In addition to the sharing of the resources, each party
shares risks and rewards potential in the delivery of the
service and/or the facility.

 Reduces public capital investment·
 Improves efficiency due to strong profit incentive·
 Private entity is more accountable than government·
 Expedited project completion by grouping multiple responsibilities
into a single contract·
 Specialized expertise·
 Relieves government from staffing issues·
 Shares risk/responsibility·
 Government can still step in when private entities are misbehaving
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Public sector Private Sector
1 Social responsibility Profit oriented
2 Investment in infrastructure tax payer
3 Has extensive infrastructure,
Institutions of higher learning that
can generate knowledge through
basic research,
A vast pool of both trainers and
trained human resource
The private sector is known to have
better marketing skills, operational
efficiencies, efficient product
,delivery system, quality service
providing capability, and better up-
scaling technologies
4 Research is separate from
Production & Marketing
Research ,Production and
marketing are integrated

Identifying and negotiating the common
interest
Financing the Solution
Regulatory/contractual and legal issues
Choosing an organizational
design/scope based on the above
Operating partnerships
Evaluating and terminating
partnerships (if applicable)
Source: Hartwich, F. J.-A. (2007)

 PPPs require TRUST and relationships.
 We need to grow this pool as a resource.
 Understand and respect each other’s motivations and
limitations.
 Keep your eye on the end goal, don’t get lost in the
details.
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Scope
 Adoption of Public Private Partnerships (PPP)
helps to create a sustainable structure for
adoption of hybrid seeds, improve crop
management practices, thus creating market
linkages towards a better price discovery

 In India many farmers lack awareness and
benefits of improved seeds and crop management
practices.
 Innovative approaches were required to
researching the fields, practicing Parent Seed
Multiplication, developing infrastructure and
training growers for field production, processing
the results and create acceptance among very
large numbers of small farmers spread across
large geography.

 •IP protection is difficult,
-but can often be overcome.
–On paper easier than within human resources. –
Critical to understand as clearly as possible the
fine line between competitive and pre-competitive
space, between what can and should be shared
and what can not.
–Confidentiality and stewardship are often larger
concerns.
–Availability of experts as resources often a larger
concern.

 There is as much diversity between institutions as
between regions
—and this needs to be respected.
–Difficult to do when organizations do not fully
understand each other.
–Difficult to do when organizations do not fully
understand themselves - their own capabilities
and limitations.
–Communication—within partnership and with
external stakeholders—is essential.

The major share of investments in agriculture by the private sector pertains to
Seed and Biotechnology Research, which is about 33% of the total budget.

 Complexity in seed production
 Precision in crop management under seed
production
 Maintaining timelines
 Understanding the basic difference from normal
seed production
 Requires training on regulatory, environment &
seed handling & quality aspects.
 Institutional financing (poly house prdoduction of
vegetables) & subsidies for inputs
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Indian farmer is poor needs financing to support seed
production
- Govt support (subsidy on inputs)
- Bank loans (Banks shy away from making such loans)
-Flexibility with ensuring an integrated value chain
approach, covering all aspects from production to
marketing.
-Organize and market specialized training courses in input
supply, seed production, crop management and
extension methods, on a cost recovery basis, for private
organizations in the seed, crop and agro-input sectors.

EFFORTS towards PPP in Seed production
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 ICAR-Industry Meet Agricultural Transformation
through Public-Private Partnership: An Interface
(March 2007)
 To enable an optimal policy approach to promote
social and economic development, bringing together
efficiency, flexibility and competence of the private
sector with the accountability, long-term perspective
and social interest of the public sector. Both the
partners have mutual gains from such arrangements
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 The outcome of the workshop is expected to result in a strong national
network linking seed scientists, seed enterprises and other stake
holders to address the following:
 To Develop and promote a shared vision and consensus for action on
seed science and Technology & food security.
 To develop network projects on frontier areas of seed science and
Technology encompassing: 1. Documenting knowledge generated so far
across NARS in seed Research; 2. Seed production and protection;
and 3. Seed quality assessment and enhancement Generation of
information to encourage and debate to influence action by SAUs, NSP,
and AICRPs to serve the cause of seed science and Technology
 To usher in an environment to create India as a hub of excellence in
seed research, production and international seed trade
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32

 Main objective is Augmenting the government efforts in agricultural development
by leveraging the capabilities of the private sector
 Projects can be proposed by corporates to State Governments through Small
Farmers’ Agri-business Consortium (SFAC). This institution has been designated as
a National Level Agency for this purpose by Dept. of Agriculture and Cooperation.
 Implementing Agencies
1. Small Farmers Agri-Business Consortium (SFAC).
2. State Government (Agriculture Department)/State level agencies.
3. Private sector partner
 Covers farmer related services 50 % subsidy ondrip/
 sprinkler irrigation/mechanization/grading/shade nets etc (max 50,000), 100%
subsidy on community based projects like ware housing, Rural godowns.
 Financing Performance based overhead costs to companies (2-8%)
 Sgovt. closely tracks the performance through NABARD/qualified consultancy firm.

 Agriculture Production Commissioner or Principal Secretary,
Agriculture – Chair
 (b) Commissioner/Director, Agriculture – Member Secretary
 (c) Representative of Private Sector Implementing Partner –
Member
 (d) Representative of independent monitoring agency –
Member

Program Activities
Assistance for Boosting
Seed Production in
Private Sector
(The DAC is implementing a
Central Sector Scheme
known as ‘Development
and Strengthening of
Infrastructure Facilities for
Production and Distribution
of Quality Seeds’ since
2005-06)
Under this component, credit linked back-ended capital
subsidy is provided @ 25% of the project cost subject to a
maximum limit of Rs.25.00 lakh per unit on seed
infrastructure development. Private companies, individual
entrepreneurs, self help groups, seed cooperatives,
partnership firms are eligible for subsidy.
The component is implemented through
nationalised/scheduled commercial banks. The assistance
is for creation of infrastructure facilities relating to seed
cleaning, grading, processing, seed treating, packaging and
storage units as well as for seed testing facilities.
This assistance is primarily for high volume low value
seeds. National Seeds Corporation is the nodal agency for
implementation and monitoring of this component
DAC through ATMA
(Agriculture Technology
Management Agency)
Hybrid Seed Production of chilly and tomato. Production
of cotton Technology Dissemination and Soil Health at
Sangrur (Punjab) under PPP model
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 It is beyond doubt that public-private- partnership in seed sector is
critical for future growth of Indian agriculture
 Now a time has come where the private sector will have to join hands with
the public sector to cater to the resource poor farmers.
 Public institution bred hybrids and OPVs of field crops have been
commercialized by the private sector through nonexclusive licensing.
 The success of licensing PRH-10 by IARI to 18 seed companies paved way
to several replications of the P-P-P model.
 Hybrids and parental lines of vegetables developed by
 Indian Institute of Vegetable Research (IIVR), Varanasi,
 Indian Institute of Horticulture Research (IIHR), Bangalore and
 Indian Agricultural Research Institute (IARI), New Delhi
shared with the private seed sector for commercialization and breeding
purposes through non-exclusive licensing.

Improving productivity of Soybean in Maharashtra by
Archer Daniels Midland Company (ADM)
and
Department of Agriculture, Government of Maharashtra
 Supported by
Public Private Partnership for Integrated Agriculture Development Programme
PPPIAD gudielines - http://www.nhm.nic.in/Archive/PPPIAD-Brochure.pdf

 India has the fifth largest vegetable oil economy in the world. After
cereals, oilseeds are the second largest agricultural commodity,
accounting for the 14% of the gross cropped area in the country
 Production of soybean in India is dominated by Maharashtra(50lakhMT)
and Madhya Pradesh (60 lakhMT)which contribute 89 per cent of the
total production
 Vidarbha constitutes 15.6 percent of Maharashtra’s GDP. However
despite its inherent strengths and a rich resource base, it is felt that
Vidarbha has not been able to attain its full potential. Government of
Maharashtra is keen to improve the standard of living of farmers in
Vidarbha and have taken several initiatives in this regard. The two
flagship programmes launched by State Government are (a) PPPIAD
programme and (b) CAIM (Convergence of Agriculture Intervention
Management
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1. To increase the net income to the farmer per acre of crop by –
providing better quality, High-Yielding varieties of seed, seed
production programs, technology transfer and customized agri-
extension services.
2. To increase net income to farmer by providing him with an
alternative marketing channel by way of direct procurement from
the farmer

 Archer Daniels Midland Company (ADM)
 Department of Agriculture, Government of Maharashtra
 Soybean growers of Vidharbha region
 FICCI, which has been involved in the formulation of the
PPPIAD guidelines with the Ministry of Agriculture,
Government of India was therefore entrusted the task of
evaluating the pilot project on increasing productivity of
Soybean in Maharashtra and also for dissemination and
advocacy
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Sl No Intervention 2012-14 2013-14
1 Soil Testing √ √
2 Distribution of Certified Seed √ √
3 Seed Product ion (Breeder to Foundation) √
4 Seed Production (Foundation to Certified) √
5 Front Line Demonstration √
6 Training (Seed Production Training √ √
7 Training on Value Chain Awareness √
8 Farmer Linkage with commodity exchange √
9 Farm Mechanization √

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& project lead) (Project partner) (Project partners) (Evaluating partners)
Increasing productivity of Soybean
Improving income of Soybean farmers in Maharashtra
ADM
(Project designer
& project lead)
Govt.Maharashtra
(Project Partner
Farmers (Project
partners)
FICCI
(evaluating
partner)
Improving income of Soybean farmers in Maharashtra
Increasing productivity of Soybean

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Target
Achievem
ent
Component Unit quantity No Farmers Hacters Quantity
No
farmers Hacters
1 Breeder to
Foundation
Ha 80 80 80 51.2 65 51.2
2
Foundation
to certified Ha 800 800 800 367.6 326 367.6
•ADM played a major role in identifying and selecting lead farmers
•Department of Agriculture assisted in registering of farmers for seed
production and timely release of subsidies as per achievement
Farmers were trained about all aspects of seed production such as plant spacing efficiency ,
Good Agriculture Practices etc. The farmers were regularly visited by ADM Extension team
for supervision and advice.

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Intervention ADM responsibilities
1. Soil Testing and soil
nutrientmanagement
Ensures that farmers are educated on the proper soil sampling
methodology .
Ensures that the soil test results are provided to farmers in a
timely fashion
Coordinates the samples and test results for the farmers
2. Seed Production •Selection of Seed Production Farmers.
•Training selected farmers on seed production, plot registration
for certification etc.
•Processing the harvested seeds, grading, bagging, tagging
and sending samples for lab test and certification.
•Obtaining release orders
•Facilitate warehousing, processing, bagging, labelling and
certification process of the seeds
3. Distribution of certified
seeds
(DS-228, MAUS-71 &
JS-97520
Distribution of certified seeds produced to farmers at
subsidized rates
4. Procurements &
marketing support
Incur the infrastructure expenses to buy approximately
1,15,000 MT of Soybeans
• Procure soybeans directly from farmers under direct
marketing license.
• Train the farmers on all aspects of Direct procurement
through awareness meetings

Intervention ADM Responsibilities
5. Linkage of farmers with Commodity
exchange
•Organized farmers into informal group
•Training farmers for warehousing
beans so as to sell at the best price at a
future date through NCDEX-NSPOT
•Provide buying support as buyer in the
Spot Exchange whenever farmer
wants to sell on the Exchange
6. Front line demonstrations (FLD) •Farmer's selection for FLD
•Distribution of subsidized inputs as per
government guidelines
7. Farm Mechanization Formation of FPOs
•Assist FPOs in registering as a legal
entity,
•Assist FPOs in preparation of project
report for obtaining financial
assistance from Banks.
• Explain benefits of mechanization to
user farmers.
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NCDX-National Commodity & Derivatives Exchange Ltd . NSPOT- NCDX Spot Exchange Ltd.

 Introduction of new farm implements in Soybean cultivation which led to end to
end mechanized solutions led to net saving of 30% in Soybean cultivation, 25%
increase in yield and saving of Rs 640 per acre in cost of seed.
 The financial support provided by ADM and State Govt of Maharashtra was very
instrumental in success of this pilot on farm mechanization in Soybean.
 Creation of market linkages by Direct procurement programme by way of
creating ADM kissan cards for each farmer. Farmers saves 2% cost by selling
directly to ADM
 The project has been able to enhance the productivity of Soybean by
(a) distributing certified varieties of high yielding varieties of Soybean such as
DS 228 and MAUS 71 which gave incremental yield of 20-30%. (806 qtl of
certified seed distributed in year 2013-14)
 (b) training and skill development of farmers and FPOs (Farmer Producer
Organisations) for seed production programme (total 418 ha of area is covered
under seed production programme in year 2013-14)
 (c) providing end to end mechanized solutions for soybean cultivation which led
to 25% increase in yield for Soybean crop
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Two major seed related problems as
informed by farmers

 It was felt that the project has further scope of strengthening
Soybean value chain by
 (a) creation of more FPOs
 (b) incentivizing FPOs to undertake activities such as custom hiring
centre and seed production programme
 (c) Convergence among State Govt of Mahrashtra, Universities,
industry and FPOs regarding supply of breeder seed and building
strategies for conversion of breeder to foundation and certified seeds.
 Connecting farmers to Commodity exchange, scientific storage under
Maharashtra state warehousing corporation and linking farmers to
banks.
 All farmers who transact with ADM now hold bank account and
have improved marketability of Soybean under PPPIAD project.
 This should be promoted in big way and include other crops.
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 Supply of High quality pure seed with Agri inputs for seed production
 Regular advise on extension services by ADM officials at each ADM
Extension centres known as KVKs (Krishi Vigyan Kendras) has
contributed to the adoption of best practices in Soybean cultivation.
 Financial support to farmers in subsidy form , bank loans etc.
 Conducting FLDs. ADM has facilitated SMS service to more than 3000
lead farmers. Training farmers on seed production was one of the major
initiatives under extension programme
 New technologies new challenges
 There is a well-defined institutional mechanism created both at the
Government and at the company level to oversee the implementation and
monitoring the progress of the project with periodic reporting and
assessment across all levels.
 Supporting of the development of the back end supply chain along
with providing the market linkage opportunities to the Soybean growing
farmers
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 Maharashtra government has initiated a Private-Public Partnership (PPP) for
Integrated Agriculture Development (PPP-IAD) project under the World Economic
Forum’s (WEF) “New Agriculture Initiative (2012)
 WEF has chosen Maharashtra as the only region along with four countries
Tanzania, Vietnam, Indonesia and Mexico.
 The idea is to create a value-chain in agriculture by involving corporates that will
work with farmers’ groups or associations from production to marketing stage.
 Twenty-two companies, 12 of them private sugar mills, have been selected and
have agreed to partner with such group in everything — from inputs and
processing to marketing.
 They will be working in seven categories of produces — sugar, cotton, oilseed,
pulses, fruits, vegetables and poultry.
 The companies and the farmers will draw benefit of subsidies and
financial support for 38 state and Central government schemes for
these categories of produces.
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 A partnership with the Department of Agriculture, Government of
Uttar Pradesh, India, initiated a two year project in 150 blocks of 26
rice growing districts of Uttar Pradesh,
 To deliver hybrid rice and mustard to small and marginal farmers, to
help optimize farmer inputs and improve net income.
 The objective of this alliance is to adopt "Farm School Models", where
farmers are trained on seed sampling, provided agronomic and technical
training along with crop advisory services, during the critical stages of
development. The model is scalable year over year based on the
performance.
 A technical committee comprising of research and extension officers
from the Department of Agriculture and DuPont Pioneer will formulate
the right practices suitable to the specific growing conditions.
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 Through a PPP initiative, DuPont Pioneer, in India engaged with the
Government of Orissa to introduce high yielding corn hybrid seeds.
 For maize, Orissa has been prevalent in the open pollinated variety
(OPV).
 A shift to hybrid seeds has encouraged farmers to achieve high
productivity and profitability. With the adoption of PPPs, 2500 farmers
from eight (8) districts Ganjam, Mayurbhanj, Gajapati, Rayagada,
Sambalpur Bargada, Balasore and Bhadrak.
 Farmers have been continuously receiving agronomic support coupled
advancement in technology practices to help increase productivity and
enhance the livelihood of farmers.
 This is also an opportunity for the government to an approach towards
addressing the food security challenge by 2050.
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 The usage of farm saved seed is to be reduced and farmers are to be
encouraged to use quality seed to increase productivity levels
 The rising vital role of Pvt industry in seed sector has lead to emergence of
Scientific seed supply chain management.
 Ensuring Seed quality is utmost important in BS-FS-CS chain. Quality
assurance system should be best organized with modern tools of QMS with
tracking facility.
 Public sector should work towards creating awareness about new
innovations of R & D among stake holders and Collaborate with private
sector in tech- transfer.
 Assuring Credit facility & remunerative prices to the seed producer.
 Training of farmers is essential for scientific seed production wherein SMEs
of both Public and Private sector should work together .

 The public sector research organisations, Viz., ICAR/SAUs to provide the
seeds of latest varieties/hybrids of rice to public and private sector seed
companies on liberalised terms of MOA.
 Creating facilities for commodity exchange and storage facilities.
 At the time of risks and lesser opportunities P & P should help the farmer
to mitigate the risks and help him to earn the lively hood. While
production and price risks are the most obvious areas of
attention, partnerships between farmers’ groups and market
players can lead to better links with input suppliers, financial
institutions and research bodies
 Benefit schemes to pvt industries by Govt like tax exemptions, duty frees,
subsidy supports to encourage their participation in orphaned crops
which are major part of food security system of the country.
 Incentives and award system for the farmer,program.participating
agencies
 Encouragement for proper feedback and documentation and advocacy
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 This PPP convergence can lead to better targeting of
government agricultural subsidies and better outcome for public
policy.,
 A collaborative effort between the government, farmers and
corporates in agriculture is likely to raise the rate of
agricultural GDP growth, thereby directly impacting rural
poverty.

Ppp seed production

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