deep goel summer_internship_report_on_seed_management_updated - copy
TRANSCRIPT
1
SEED MANAGEMENT
A SUMMER INTERNSHIP PROJECT REPORT
Submitted by
Deep Goel
Roll No 859
2 Month Internship Done at IMT, MANESAR, GURGAON branch of
In partial fulfilment of summer internship for the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
At
UNIVERSITY INSTITUTE OF LAW & MANAGEMENT STUDIES
SECTOR 40 GURGAON 122001 HARYANA
MAHARASHI DAYANAD UNIVERSITY ROHTAK
HARYANA- 124001
JULY 2014
2
Declaration
I hereby declare that the work being presented as the summer internship project report titled
“Seed Management” is an authentic record of my work carried out at Sakata Seeds India under
the able guidance and supervision of Mr. Ram Niwas Yadav. The matter embodied in the report
has not been submitted for the award of any other degree or diploma.
Deep Goel
College Roll No: 859
Exam Roll No
3
Certificate
This is to certify that the Summer Internship Project Report Titled
“Seed Management ”
is bonafide work of
Mr. Deep Goel College Roll No _859_ Examination Roll No _____________ 2nd year, 3rd
Sem MBA in UILMS Gurgaon
and has been carried out under my supervision from
July 2014 to August 2014
at
Sakata Seeds India.
This report is in partial fulfilment of summer internship for the award of degree of MBA by
MDU Rohtak.
I wish him success in all his future endeavours.
Place Manesar, Gurgaon Signature of the Supervisor
Date: Name:
Designation:
Department/Organization:
4
Acknowledgement
First of all, I would like to thank the Management at Sakata Deeds India for giving me the
opportunity to do my two-month project training at their esteemed organization. I am highly
obliged to Mr. Ram Niwas Yadav (Development Manager) for agreeing to supervise my
training at the Manesar branch. I am thankful to him for taking keen interest in my project and
for providing his constant guidance that made my training fruitful.
I express my thanks to all the Marketing Managers at the company under whose able guidance
and direction, I was able to give shape to my training. Their constant review and excellent
suggestions throughout the project are highly commendable.
My heartfelt thanks go to all the executives and employees of the company who spared their
valuable time and helped me gain knowledge about the actual working and the processes
involved in a seed research and marketing company. It has been a truly good learning
experience for me.
Deep Goel
College Roll No: 859
Exam Roll No
5
Table of Contents
Abstract .................................................................................................................................................... 11
1. Introduction to Agriculture .............................................................................................................. 13
1.1 Development of Scientific Agriculture ..................................................................................... 13
1.2 Importance of Agriculture ........................................................................................................ 13
1.3 Agriculture as Art, Science and Business of Crop Production .................................................. 14
1.4 Branches of Agriculture ........................................................................................................... 15
1.5 An introduction to Agronomy .................................................................................................. 16
1.5.1 Basic Principles of Agronomy ........................................................................................... 16
1.6 Agricultural Inputs.................................................................................................................... 17
2. Seed Production and Types of Seeds ............................................................................................... 19
2.1 Seed Evolution ......................................................................................................................... 19
2.2 Seed Production ....................................................................................................................... 19
2.3 Types of Seeds – First Classification ......................................................................................... 20
1. Open-pollination: ......................................................................................................................... 20
2. Heirloom: ..................................................................................................................................... 21
3. Hybrids: ........................................................................................................................................ 21
4. Genetically modified seeds (GMO – Genetically modified Organisms): ...................................... 24
5. Organic: ........................................................................................................................................ 24
2.4 So what is best —hybrid, open-pollinated, genetically modified, organic or heirloom
varieties? .............................................................................................................................................. 25
2.5 Difference between organic seeds/plants and heirloom seeds/plants ................................... 26
2.6 Types of Seeds – Second Classification .................................................................................... 27
1. Nucleus seed: ............................................................................................................................... 27
2. Breeder's seed: ............................................................................................................................ 27
3. Foundation seed: ......................................................................................................................... 27
6
4. Certified seed: .............................................................................................................................. 27
3. Sakata Seed Corporation – An Introduction .................................................................................... 28
3.1 Sakata Seeds Corporation ........................................................................................................ 28
3.2 History of Sakata Seed Corporation ......................................................................................... 28
3.3 Sakata Company Profile ........................................................................................................... 31
3.3.1 Business ............................................................................................................................ 31
3.3.2 Fields of Business ............................................................................................................. 31
3.3.3 Paid-in Capital and Annual Turnover ............................................................................... 32
3.4 Major Research Products from Sakata Seeds .......................................................................... 32
3.5 Sakata Seeds in India ................................................................................................................ 38
1. Poorvi – Okra – ......................................................................................................................... 38
2. Green Express – Cabbage – ...................................................................................................... 38
3. Anokhi – Chilli – ........................................................................................................................ 38
4. Emerald – Tomato – ................................................................................................................. 38
5. White Marble – Cabbage – ...................................................................................................... 38
6. Hachi Michi – Water Melon – .................................................................................................. 38
7. Yellow 300 - Marigold - ............................................................................................................ 38
3.6 Corporate Governance at Sakata Seeds .................................................................................. 38
4. Seeds, Treatment, Sowing, Storage and Transport ......................................................................... 40
4.1 Characteristics of a Seed .......................................................................................................... 40
4.2 Advantages of Using Good Quality Seeds ................................................................................ 40
4.3 Seed Germination .................................................................................................................... 41
4.3.1 Factors Affecting Seed Germination ................................................................................ 41
4.4 Seed Rate ................................................................................................................................. 42
4.5 Seed Treatment ....................................................................................................................... 42
4.5.1 Methods of Seed Treatment ............................................................................................ 43
7
4.6 Sowing ...................................................................................................................................... 43
4.6.1 Methods of Sowing .......................................................................................................... 43
4.7 Seed Storage and Transport .................................................................................................... 44
5. Soil Survey ........................................................................................................................................ 47
5.1 Objectives of Soil Survey .......................................................................................................... 47
5.2 Plant Protection ....................................................................................................................... 48
6. Seed Regulation in India .................................................................................................................. 49
6.1 New Policy on Seed Development, 1988 ................................................................................. 49
6.2 Plants, Fruits and Seeds Order (Regulation of Import into India order) 1989 ......................... 49
6.3 Protection of Plant Varieties and Farmers Right Act, 2001 ..................................................... 51
6.4 National Seed Policy, 2002....................................................................................................... 54
6.5 Regulatory Measures Specific to Transgenic Seeds ................................................................. 55
7. Structure of Seed Sector .................................................................................................................. 57
7.1 Structure of the Indian Seed Industry ...................................................................................... 57
7.2 Public Sector Seeds Companies ............................................................................................... 57
7.3 Private Sector Seed Companies ............................................................................................... 59
7.4 Towards Developing Plant Varieties ........................................................................................ 60
7.5 Public-Private Sector Cooperation ........................................................................................... 61
8. Types of Seed Production and Distribution Organizations .............................................................. 63
8.1 Government Departments ....................................................................................................... 63
8.2 State-Owned Corporations ...................................................................................................... 63
8.3 Private Enterprises ................................................................................................................... 63
8.4 Cooperatives ............................................................................................................................ 64
8.5 Seed Producers' Associations .................................................................................................. 64
9. The Purpose of Seed Marketing ....................................................................................................... 65
9.1 Marketing Information ............................................................................................................ 65
8
9.1.1 The information required on general economic and political factors includes:.............. 66
9.1.2 The following information is needed about the market place: ....................................... 66
9.1.3 Information required by managers on their company and its products: ........................ 66
9.1.4 Information required about competitor companies includes: ........................................ 67
9.1.5 Seed companies will also require the following information on their distributors: ........ 67
9.1.6 Information needed regarding farmers includes: ............................................................ 68
9.1.7 Finally, information is required from the buyers of farm produce grown from the
company's seeds. This information includes: .................................................................................. 68
9.2 Sources of Information ............................................................................................................ 69
9.2.1 Internal Information......................................................................................................... 69
9.2.2 External Information ........................................................................................................ 69
10. The Importance of Price ............................................................................................................... 71
10.1 Price and Demand .................................................................................................................... 71
10.2 The Cost of Seed ...................................................................................................................... 72
10.3 Pricing Policy ............................................................................................................................ 73
10.4 Pricing Strategies ..................................................................................................................... 74
10.4.1 Low Price Strategy ............................................................................................................ 74
10.4.2 Market Price Strategy ...................................................................................................... 75
10.4.3 High Price Strategy ........................................................................................................... 75
10.5 Pricing Techniques ................................................................................................................... 75
10.5.1 Cost-Plus Pricing ............................................................................................................... 75
10.5.2 Contribution Pricing ......................................................................................................... 75
10.5.3 Competitive Pricing .......................................................................................................... 76
10.5.4 Short-Term Pricing Techniques ........................................................................................ 76
10.6 Distributors' Margins ............................................................................................................... 76
10.7 Price Lists, Terms and Conditions of Sale Price Lists ................................................................ 77
9
10.7.1 Some Components of Terms and Conditions of Sale ....................................................... 77
10.7.2 Terms and Conditions of Sale .......................................................................................... 78
11. Market Segmentation .................................................................................................................. 79
12. Management of Distribution and Sales ....................................................................................... 81
12.1 Sales Service ............................................................................................................................. 81
12.2 Order and Stock Administration .............................................................................................. 82
12.3 Operations Calendar ................................................................................................................ 84
12.4 Selection of Dealers ................................................................................................................. 84
12.5 Competitor Companies ............................................................................................................ 84
12.6 Marketing Techniques that Sakata Seeds Can Adopt in India ................................................. 85
12.6.1 Participation in flower shows, vegetable shows and trade and village fairs – ................ 85
12.6.2 Advertisement on Radio and Television including Kissan Channel ............................... 85
12.6.3 Sponsorship of Scholarships in State Agriculture Universities in India .......................... 86
12.6.4 Membership of National Seed Association of India and Advertisements in its Magazines
86
12.6.5 Employing of Direct Sales Agents of the Company ........................................................ 86
12.6.6 Partnership with Seed Dealers ......................................................................................... 86
12.6.7 Set up of dedicated Sakata Seeds Sale Channels/Counters Near the Agricultural Farms 87
13. Opportunities for Sakata Seeds in India ...................................................................................... 88
13.1 Impact of Hybrid Technology in India ...................................................................................... 88
13.2 Relevance of Hybrid Technology in India ................................................................................. 92
13.3 Hybrid Revolution in Vegetables in India ................................................................................. 94
13.4 Strengths, Weaknesses and Constraints in Hybrid Vegetable Seed Production in India......... 96
13.4.1 Strengths .......................................................................................................................... 96
13.4.2 Weaknesses ..................................................................................................................... 97
13.4.3 Constraints in Hybrid Seed Production ............................................................................ 97
10
13.5 Vegetable Hybrid Seed Production System ............................................................................. 98
14. Concluding Remarks................................................................................................................... 101
Appendix A ............................................................................................................................................. 102
1. Changing Agricultural Scenario in India ......................................................................................... 102
1.1 National horticulture mission ................................................................................................ 102
1.2 Agricultural Credit (Kisan credit card) .................................................................................... 102
1.3 Agriculture Insurance ............................................................................................................. 102
1.4 Agriculture Marketing Reforms ............................................................................................. 102
1.5 National Food Security Act, 2013 .......................................................................................... 103
1.5.1 Salient Features.................................................................................................................. 103
1.6 WTO: Indian Stand on Food Security ..................................................................................... 104
2. Climate Change and Variability ...................................................................................................... 105
2.1 Climate Change ...................................................................................................................... 105
2.2 Climate Variability .................................................................................................................. 105
2.3 Causes of Climatic Variability ................................................................................................. 106
2.3.1 External Causes .............................................................................................................. 106
2.3.2 Internal Causes ............................................................................................................... 106
2.4 Effects of Climate Change ...................................................................................................... 106
2.4.1 Greenhouse Effect –....................................................................................................... 107
Appendix B ............................................................................................................................................. 108
1. References ..................................................................................................................................... 108
11
Abstract
Agriculture is defined as the art, the science and the business of producing crops and the livestock
for economic purposes. It is the branch of science encompassing the applied aspects of basic
sciences. As various groups of men undertook deliberate cultivation of wild plants and
domestication of wild animals, agriculture came into being. Agronomy is a branch of agricultural
science which deals with principles and practices of field crop production and management of soil
for higher productivity.
Agriculture provides the bulk of wage goods required by non agriculture sectors and most of the raw
materials for the industries sector. Seeds form the most important agricultural input and directly
impact agricultural production and productivity. Seeds can be classified in many categories
depending on the pollination method or the breeder’s generation. Seed production today has become
a cost and labour intensive industry. In India, public sector companies look into low value, high
volume crop seeds while the private sector seed companies are focussed on the high value, low
volume vegetable and fruit seeds.
In the 100 years since its founding in 1913, Sakata Seed Corporation has always shown pride in
itself as a seed seller. It has been able to establish its research and sales centres across many counties
in the world. In 2008, it entered the Indian market as well. Its focus in the Indian market has been on
select vegetables and fruits for which the market is matured and there would be no apprehensions in
the mind of farmers. This will also provide a very good head start to the company in the Indian
market. What is required is to make the Indian farmers aware of the research based quality seeds
free from genetic modification being supplied by the company. This can be done through various
marketing techniques.
Also, Sakata Seeds has made entry in the Indian market at a very opportune time. Sakata Seeds is
mostly offering F1 vegetable hybrids. The Indian market is in a very receptive stage towards F1
vegetable hybrids. Many of the vegetable seeds being offered by Sakata Seeds in India have been
well received by Indian farmers and they have seen the positive impact of using such seeds in the
form of increased production up to 194 percent. In addition, many programs are being run to ensure
nutritional security for the Indian population. This has created even higher need for F1 hybrid seeds
in the Indian market. Hence, the Indian market presents very good opportunity to Sakata Seeds to
grow its market share and in turn be benefitted through the company’s R&D.
Private companies have been supplying the seed of the more easily controlled and more profitable
hybrid and vegetable crops, leaving the public sector to concentrate on the more strategic, higher
volume, non-hybrid crops. Non hybrid seed, which the farmer can save, will be more price sensitive
than hybrid seed. Seed held in stock at the various stages of processing also have to be financed.
This is a significant cost item and there may be serious financial consequences for a business that
12
has high stock levels. Government pricing policy should not undermine private enterprise in a mixed
economy since the private sector will need to establish a price structure which will reflect the true
cost of seed and meet its business objectives.
The distribution of seeds takes place through retail outlets which can receive their supplies directly
from the seed producer, through intermediate distributors, or through wholly integrated companies
which control all the major functions of breeding, production and distribution and have a complete
sales network. In a market economy seeds of the same or similar varieties will be available from
various sources, allowing customers to choose between different brands. Individual customers have
different needs but an organization cannot provide a different product and service for each customer,
neither can customers be served properly if they are all treated as being the same. This calls for the
need of market segmentation.
Farmers' demands are seasonal and they generally buy seed just before sowing time, rather than
planning ahead, with the result that the transport and delivery system can be put under extreme
pressure. Intermediate storage between the seed company's stores and the retailers will therefore
need to be considered to make the system more responsive, but this will add to the cost.
Private companies supplying field crop seeds are unlikely to be able to justify a direct sales
organization unless they have a monopoly on the market or are selling a broad product range in a
developed market. The marketing manager in the supplying organization must be satisfied that
minimum storage standards can be met by the distributors, allowing for the length of time seed is
expected to be in store. The dealership should be worth holding so that dealer will work to achieve
targets rather than risk losing his dealership.
Private companies also need to look into the seed marketing aspects. There are seven aspects to seed
marketing covering information on general economic and political factors, market place, company
and its products, competitor companies, distributors, farmers and the buyers of farm produce grown
from the company's seeds. Information on these aspects can be and should be collected from both
internal and external sources.
Apart from this, private companies need to consider the pricing of their seeds, market segmentation
as the entire market cannot be reached and sales and distribution management including dealer
selection and dealer management.
All these aspects have been covered in this report as part of my internship input to the company.
13
1. Introduction to Agriculture
Agriculture is the principal source of livelihood for more than 55 per cent of the population of this
country. Agriculture provides the bulk of wage goods required by non agriculture sectors and most
of the raw materials for the industries sector. The combined efforts of the Central Government, State
Governments, Corporate Sector and the Farming Community have succeeded in achieving record
production of 259.29 million tonnes of food grains during 2011-12.
1.1 Development of Scientific Agriculture
Early man was hunter-gatherer. He hunted animals, fished and collected fruits, roots and other forest
produce. He had wide knowledge on which plants to eat and which plants were poisonous. To this
day, some groups still pursue this simple way of life and others have continued as roving herdsmen.
However, as various groups of men undertook deliberate cultivation of wild plants and
domestication of wild animals, agriculture came into being. Cultivation of crops, notably grains
such as wheat, rice, barley and millets, encouraged settlement of stable farm communities, some of
which grew into a town or city in various parts of the world. Slowly, around 8000 years ago,
agriculture developed in Mehrgarh area in West Pakistan for the first time in human history. It
changed the way of life and man started living a more settled life tending to his plants.
Early agricultural implements-digging stick, hoe, scythe and plough-developed slowly over the
centuries and each innovation caused profound changes in human life. From early times too, men
created indigenous systems of irrigation especially in semi-arid areas and regions of periodic
rainfall.
1.2 Importance of Agriculture
Agriculture helps to meet the basic needs of human and their civilization by providing food,
clothing, shelter, medicine and recreation. Hence, agriculture is the most important enterprise in the
world. It is a productive unit where the free gifts of nature namely land, light, air, temperature and
rain water etc. are integrated into single primary unit indispensable for human beings. Secondary
productive units namely animals including livestock, birds and insects, feed on these primary units
and provide concentrated products such as meat, milk, wool, eggs, honey, silk and lac.
14
Agriculture provides food, feed, fibre, fuel, furniture, raw materials and materials for factories;
provides a free fare and fresh environment, abundant food for driving out famine and favours
friendship by eliminating fights. Satisfactory agricultural production brings peace, prosperity,
harmony, health and wealth to individuals of a nation by driving away distrust, discord and anarchy.
It helps to elevate the community consisting of different castes and clauses, thus it leads to a better
social, cultural, political and economical life. Agriculture consists of growing plants and rearing
animals in order to produce and thus it helps to maintain a biological equilibrium in nature.
Agricultural development is multidirectional having galloping speed and rapid spread with respect
to time and space.
In India, after green revolution, farmers started using improved cultural practices and agricultural
inputs in intensive cropping systems with labourer intensive programmes to enhance the production
potential per unit land, time and input. It provided suitable environment to all these improved
genotypes (crop varieties) to foster and manifest their yield potential in newer areas and seasons.
1.3 Agriculture as Art, Science and Business of Crop
Production
Agriculture is defined as the art, the science and the business of producing crops and the livestock
for economic purposes.
A. As an art, it embraces knowledge of the ways to perform the operations of the farm in a
skilful manner. The skill is categorized as:
Physical skill: It involves the ability and capacity to carry out the operation in an efficient way e.g.,
handling of farm implements, animals etc., sowing of seeds, fertilizer and pesticides application, etc.
Mental skill: The farmer is able to take a decision based on experience, such as (i) time and method
of ploughing, (ii) selection of crop and cropping system to suit soil and climate, (iii) adopting
improved farm practices etc.
B. As science: It utilizes all modern technologies developed on scientific principles such as
crop improvement/breeding, crop production, crop protection, economics etc. to maximize
the yield and profit. For example, new crops and varieties developed by hybridization,
transgenic crop varieties resistant to pests and diseases, hybrids in each crop, high fertilizer
15
responsive varieties, water management, herbicides to control weeds, use of bio-control
agents to combat pest and diseases etc.
C. As business: As long as agriculture is the way of life of the rural population, production is
ultimately bound to consumption. But agriculture as a business aims at maximum net return
through the management of land, labour, water and capital, employing the knowledge of
various sciences for production of food, feed, fibre and fuel. In recent years, agriculture has
been commercialized to run as a business through mechanization.
1.4 Branches of Agriculture
Agriculture has 3 main spheres viz., geoponic (cultivation in earth-soil), aeroponic (cultivation in
air) and hydroponic (cultivation in water).
Agriculture is the branch of science encompassing the applied aspects of basic sciences. The applied
aspects of agricultural science consist of study of field crops and their management (agriculture)
including soil management.
Crop production - It deals with the production of various crops, which includes food crops, fodder
crops, fibre crops, sugar, oil seeds, etc. It includes agronomy, soil science, entomology, pathology,
microbiology, etc. The aim is to have better food production and how to control the diseases.
Horticulture – It is the branch of agriculture that deals with the production of flowers, fruits,
vegetables, ornamental plants, spices, condiments (includes narcotic crops-opium, etc. which has
medicinal value) and beverages.
Agricultural engineering - It is an important component for crop production and horticulture
particularly to provide tools and implements. It is aiming to produce modified tools to facilitate
proper animal husbandry and crop production tools, implements and machinery in animal
production.
Forestry - It deals with production of large scale cultivation of perennial trees for supplying wood,
timber, rubber, etc. And it also supplies raw materials for industries.
Animal husbandry - The animals being produced, maintained, etc. maintenance of various types of
livestock for direct energy (work energy). Husbandry is common for both crop and animals. The
objective is to get maximum output by feeding, rearing, etc. The arrangement of crops is done to get
minimum requirement of light or air. This arrangement is called geometry.
16
Fishery science - It is for rearing marine fish and inland fishes including shrimps and prawns.
Home science - Application and utilization of agricultural produces in a better manner. When
utilization is enhanced production is also enhanced, e.g., a crop once in use in South was found that
it had many uses now.
1.5 An introduction to Agronomy
The word agronomy has been derived from the two Greek words, agros and nomos having the
meaning of field and to manage, respectively. Literally, agronomy means the “art of managing
field”. Technically, it means the “science and economics of crop production by management of farm
land”.
Definition: Agronomy is the art and underlying science in production and improvement of field
crops with the efficient use of soil fertility, water, labourer and other factors related to crop
production.
Agronomy is the field of study and practice of ways and means of production of food, feed and fibre
crops. Agronomy is defined as a branch of Agricultural science which deals with principles and
practices of field crop production and management of soil for higher productivity.
Importance: Among all the branches of agriculture, agronomy occupies a pivotal position and is
regarded as the mother branch or primary branch. Like agriculture, agronomy is an integrated and
applied aspect of different disciplines of pure sciences. Agronomy has three clear branches namely,
(i) crop science
(ii) soil science, and
(iii) environmental science that deals only with applied aspects i.e., soil-crop-environmental
relationship
Agronomy is a synthesis of several disciplines like crop science, which includes plant breeding,
crop physiology and biochemistry etc. and soil science, which includes soil fertilizers, manures etc.
and environmental science which includes meteorology and crop ecology.
1.5.1 Basic Principles of Agronomy
Basic principles of agronomy include:
Planning, programming and executing measures for maximum utilization of land, labourer,
capital and other factors of production
17
Choice of crop varieties adaptable to the particular agro-climate, land situation, soil fertility,
season and method of cultivation and befitting to the cropping system
Proper field management by tillage, preparing field channels and bunds for irrigation and
drainage, checking soil erosion, levelling and adopting other suitable land improvement
practices
Adoption of multiple cropping and also mixed or intercropping to ensure harvest even under
adverse environmental conditions
Timely application of proper and balanced nutrients to the crop and improvement of soil
fertility and productivity. Correction of ill-effects of soil reactions and conditions and
increasing soil organic matter through the application of green manure, farm yard manure,
organic wastes, bio-fertilizers and profitable recycling of organic wastes
Choice of quality seed or seed material and maintenance of requisite plant density per unit
area with healthy and uniform seedlings
Proper water management with respect to crop, soil and environment through conservation
and utilization of soil moisture as well as by utilizing water that is available in excess, and
scheduling irrigation at critical stages of crop growth
Adoption of adequate, need-based, timely and exacting plant protection measures against
weeds, insect-pests, pathogens, as well as climatic hazards and correction of deficiencies and
disorders
Adoption of suitable and appropriate management practices including intercultural
operations to get maximum benefit from inputs dearer and difficult to get, low-monetary and
non-monetary inputs
Adoption of suitable method and time of harvesting of crop to reduce field loss and to
release land for succeeding crop(s) and efficient utilization of residual moisture, plant
nutrients and other management practices
Adoption of suitable post-harvest technologies
1.6 Agricultural Inputs
Agro Inputs
Input is Something put into a Agriculture/farming to achieve output in terms of yield/income or a
result, especially:
a. Energy, work, or power used to drive a machine - Current, electromotive force, or power supplied
to an electric circuit, network, or device.
b. The other commonly used agricultural Inputs are Seeds, Fertilizers, pesticides and human &
18
natural resources, water, manures, sunlight, etc.
Of these, seeds are one of the most important inputs which have the tremendous potential to
increase productivity, especially during climate change. Seeds are also the subject of study for this
project report also as Sakata Seed is a seed research and seed producing company.
19
2. Seed Production and Types of Seeds
2.1 Seed Evolution
The evolution of plants has resulted in increasing levels of complexity, from the earliest algal mats,
through bryophytes and ferns to the complex gymnosperms and angiosperms of today. While the
groups which appeared earlier continue to thrive, especially in the environments in which they
evolved, each new grade of organisation has eventually become more "successful" than its
predecessors by most measures.
Seed Development, Maturation and Seed Structure
A true seed is defined as a fertilized mature ovule consisting of embryo, stored food material and
protective coats. The important events involved in seed development and maturation include:
1. Pollination
2. Fertilization
3. Development of the fertilized ovule by cell division
4. Accumulation of reserve food material
5. Loss of moisture content.
2.2 Seed Production
Seed companies produce and sell seeds for flowers, fruit and vegetables to the farmers. The
production of seed is a multibillion dollar business, which uses growing facilities and growing
locations worldwide. While most seed is produced by large specialist growers, large amounts are
produced by small growers that produce only one to a few crop types. These larger companies
supply seed both to commercial resellers and wholesalers. The resellers and wholesalers sell to
vegetable and fruit growers, and to companies who package seed into packets and sell them on to
the farmers.
Most seed companies or resellers that sell retail, produce a catalogue – generally published during
early winter for seed to be sown the following spring. These catalogues are eagerly awaited by the
farmers, as during winter months there is little that can be done in the garden, so this time can be
spent planning the following year’s gardening. The largest collection of nursery and seed trade
20
catalogues in the U.S. is held at the National Agricultural Library. The earliest catalogues there date
from the late 18th century, with most published from the 1890s to the present. Shakers were among
the earliest commercial producers of garden seeds; the first seeds sold in paper packets were
produced by the Watervliet Shakers.
Seed companies produce a huge range of seeds from highly developed F1 hybrids to open
pollinated wild species. Many gardeners like to stick to old familiar varieties but each year seed
companies produce new varieties for gardeners to try. They have extensive research facilities to
produce plants with better genetic materials that result in improved uniformity and gardening
appeal. These improved qualities might include disease resistance, higher yields, dwarf habit and
vibrant or new colors. These improvements are often closely guarded to protect them from being
utilized by other producers, thus plant cultivars are often sold under their own names and by
international laws protected from being grown for seed production by others. Along with the growth
in the allotment movement, and the increasing popularity of gardening, there have emerged many
small independent seed companies. Many of these are active in seed conservation and encouraging
diversity. They often offer organic and open pollinated varieties of seeds as opposed to hybrids.
Many of these varieties are heirloom varieties. The use of old varieties will continue to maintain
diversity in the horticultural gene pool. There is a good case for gardeners to use older (heirloom)
varieties as the modern seed types are often the same as those grown by commercial producers, and
so characteristics which are useful to them (e.g. vegetables ripening at the same time) may be
unsuited to home growing.
2.3 Types of Seeds – First Classification
Deciding which seed to plant can be a daunting task, and the decision is often more complicated
than simply trying to pick which beautiful tomatoes to grow. Among the more important decisions
every gardener makes is the choice between open-pollinated, hybrid, heirloom, organic and
genetically modified seed varieties. Each of these seed types has something to offer, depending on
the gardener's needs, interests, and values.
For seed-saving purposes, the most significant distinction among these types is that gardeners can
save true-to-type seed from open-pollinated and heirloom varieties, but not hybrids or GMs.
Here are a few more distinctions that might help a gardener decide what to grow in a season:
1. Open-pollination: Open-pollination occurs when pollination occurs by insect, bird, wind,
humans, or other natural mechanisms. Because there are no restrictions on the flow of pollen
between individuals, open-pollinated plants are more genetically diverse. This can cause a greater
21
amount of variation within plant populations, which allows plants to slowly adapt to local growing
conditions and climate year-to-year. As long as pollen is not shared between different varieties
within the same species, then the seed produced will remain true-to-type year after year.
2. Heirloom: An heirloom variety is a plant variety that has a history of being passed down
within a family or community, similar to the generational sharing of heirloom jewellery or furniture.
An heirloom variety must be open-pollinated, but not all open-pollinated plants are heirlooms.
While some companies create heirloom labels based on dates (such as a variety that is more than 50
years old), Seed Savers Exchange identifies heirlooms by verifying and documenting the
generational history of preserving and passing on the seed. All Heirloom seeds are open-pollinated
(OP). Whatever the birds, bees or wind does, these seeds are stable, in that they produce the same
plant characteristics as the parent plants, year after year. Heirloom vegetables have been grown and
passed down through farmers and gardeners for hundreds or thousands of years.
3. Hybrids: Hybridization is a controlled method of pollination in which the pollen of two
different species or varieties is crossed by human intervention. Hybridization can occur naturally
through random crosses, but commercially available hybridized seed, often labelled as F1, is
deliberately created to breed a desired trait. The first generation of a hybridized plant cross also
tends to grow better and produce higher yields than the parent varieties due to a phenomenon called
‘hybrid vigour’. However, any seed produced by F1 plants is genetically unstable and cannot be
saved for use in following years. Not only will the plants not be true-to-type, but they will be
considerably less vigorous. Gardeners who use hybrid plant varieties must purchase new seed every
year. Hybrid seeds can be stabilized, becoming open-pollinated varieties, by growing, selecting, and
saving the seed over many years.
In the 19th century, a European monk called Gregor Mendel, unravelled the genetic code of plants,
starting with peas. Mendel's code pertains to many life forms and answers question as to why two
blue-eyed humans can produce a brown-eyed baby.
Hybridization of plants has greatly expanded our choices. Hybridists and common-or-garden yokels
are constantly producing new hybrids, seemingly better than before. These are done under closed
pollination conditions to keep away birds, bees and wind.
For example, we can take a strawberry plant which produces luscious strawberries, but sadly
averages only two fruits per plant. But if we take the seeds of those strawberries and cross pollinate
them with the seeds of a strawberry plant that has abundant fruit, but with average lusciousness.
Then we have a new hybrid strawberry plantm with abundant, luscious fruit!
Ah, would it be so easy! It can take up to many thousands and more attempts to get the
characteristics we desire. Over generations of experiments, finally it can pay off, and a new hybrid
22
is produced. Or, maybe not, because this grand new hybrid somehow is too disease prone to stand
up to general commercial conditions, so hybridists have to go back to the greenhouse to go down
another gene line.
Corn is a good example. From little finger sized wild corn found in North and South America, we
now have hundreds of varieties that feed livestock and humans — some larger than a policeman's
foot! And desirable characteristics have been bred into other plants that provide us with superior
building materials, clothing fibre and beauty, and flood, desert or erosion control.
2.3.1 What are New Hybrid or F1 & F2 hybrids?
F1 (First filial generation) and F2 hybrid seeds produce vigorous, uniform plants. These hybrids are
produced after extensive inbreeding to arrive at plants with totally predictable characteristics. Pure
genetic lines have been crossed and re-crossed with each other over many generations, and at
obviously great expense.
The pure gene lines of these new hybrids need to be constantly maintained, so that the same F1 &
F2 hybrid seeds are produced each year. This is done in controlled conditions by hand. That’s why
they cost a lot.
2.3.1.1 F1 Hybrid
An F1 hybrid (or Filial 1 hybrid) is the first filial generation of offspring of distinctly different
parental types. F1 hybrids are used in genetics and selective breeding. The term is sometimes
written with a subscript, as F1 hybrid. The offspring of distinctly different parental types produce a
new, uniform phenotype with a combination of characteristics from the parents. In plant and animal
genetics the parents usually are two inbred lines. Mules are F1 hybrids between horse and donkey.
Today, certain domestic hybrid breeds, such as the Savannah cat, are classified by their filial
generation number.
In plants, crossing two genetically different plants produces a hybrid seed. This can happen
naturally, and includes hybrids between species (for example, peppermint is a sterile F1 hybrid of
watermint and spearmint). In agronomy, the term “F1 hybrid” is usually reserved for agricultural
cultivars derived from two parent cultivars. These F1 hybrids are usually created by means of
controlled pollination, sometimes by hand-pollination. For annual plants such as tomato and maize,
F1 hybrids must be produced each season.
For mass-production of F1 hybrids with uniform phenotype, the parent plants must have predictable
genetic effects on the offspring. Inbreeding and selection for uniformity for multiple generations
ensures that the parent lines are almost homozygous. The divergence between the (two) parent lines
23
promotes improved growth and yield characteristics in offspring through the phenomenon of
heterosis ("hybrid vigour" or "combining ability").
Two populations of breeding stock with desired characteristics are subjected to inbreeding until the
homozygosity of the population exceeds a certain level, usually 90% or more. Typically this
requires more than ten generations. Thereafter the two strains must be crossed, while avoiding self-
fertilization. Normally this happens in plants by deactivating or removing male flowers from one
population, taking advantage of time differences between male and female flowering or hand-
pollinating.
2.3.1.2 F2 Hybrid
In plants, F2 hybrids are the result of self or cross pollination of F1s and lack the consistency of
F1s, though they may retain some desirable traits and can be produced more cheaply, because hand
pollination or other interventions are not required. Some seed companies offer F2 seed at less cost,
particularly in bedding plants where consistency is less critical.
2.3.1.3 Advantages of F1 Hybrids
1. Homogeneity and predictability: The genes of individual plant F1 offspring of
homozygous pure lines display limited variation, making their phenotype uniform and
therefore attractive for mechanical operations and easing fine population management.
Once the characteristics of the cross are known, repeating this cross yields exactly the
same result.
2. Higher performance: As most alleles code for different versions of a protein or enzyme,
having two different versions of this allele amounts to having two different versions of the
enzyme. This increases the likelihood of an optimal version of the enzyme being present
and reduces the likelihood of a genetic defect.
2.3.1.4 Disadvantages of F1 Hybrids
The main advantage of F1 hybrids in agriculture is also their drawback.
1. When F1 cultivars are used as parents, their offspring (F2 generation) vary greatly from
one another. Some F2s are high in homozygous genes, as found in their grandparents, and
these will lack hybrid vigour. From the point of view of a commercial seed producer who
does not wish customers to produce their own seed, this genetic assortment is a desired
characteristic.
2. Both inbreeding and crossing the ancestral lines of the hybrid are costly, which translates
into a much higher price. In general, the higher yield, etc., offsets this disadvantage.
24
3. F1 hybrids mature at the same time when raised under the same environmental conditions.
They all ripen simultaneously and can be more easily harvested by machine. Traditional
cultivars and landraces are often more useful to gardeners because they crop over a longer
period of time, avoiding gluts and food shortages.
4. Genetically modified seeds (GMO – Genetically modified Organisms): Genetic
modification means introducing the DNA of one species, say animals into another species, in this
case, plants. This is done in laboratories, and involves combining genes from one species into a
completely different one (think fish and corn), something that is impossible for nature to do. The
risks are enormous and the outcomes for the future are unknown and feared dangerous.
Many major crops like corn, soybeans and wheat are now grown with GMO seed, bred to resist
certain chemicals such as herbicides.
Most GMO crops have been designed to produce sterile seeds by inserting what they call a gene
terminator. This means farmers have to re-purchase new seeds each year from the corporations that
own the patent rights to these seeds.
5. Organic: Organic seeds are those seeds produced by organic farms. When buying organic
seeds, buyer can be assured that the parent plants were raised using organic techniques, most likely
in healthier soil and free from more toxic synthetic chemicals. Typically, organic farms carry the
USDA National Organic Standards label and advertise their organic status on their seeds and
produce.
Simply put, organic seed comes from organic farms. When customers ask for organic seeds they
have two goals in mind: one is to support this farming method in order to increase demand for it;
and the other is to complete the organic cycle by using the seed to organically grow their own
garden and consume the produce.
Organic farming uses integrated pest management methods, such as crop rotation, compost and
green manure for crops and pastures. One important goal is to restore the natural balance of land
that has been damaged by decades of use of manufactured fertilizers and pesticides, plant growth
regulators (hormones) and genetically modified organisms (GMOs).
According to the USDA, organic seed producers are allowed to process seeds in a number of ways
and still call their seeds organic. These processing techniques include treating seeds with hot water,
using legume inoculants to protect against disease, pelletizing seeds (encasing them in a protective
25
covering) as long as no fungicides are included in the pellet, as well as various other treatments
such as the application of microbial activators and bacterial inoculants. No genetically modified
organisms are allowed to be used to treat seeds. In general, most of these treatments are designed to
protect the seed against fungal and bacterial disorders, which can wreak havoc with healthy plants.
It's important to note, however, that an "organic seed" will not necessarily produce an organic plant.
An organic seed will merely produce a seedling that came from organically grown parent plants. To
produce a fully organic plant, the seedling should be grown using organic principles and, when
necessary, organically approved chemicals. If strict organic production is important to buyer, he or
she needs be especially aware of buying seedling starting soil.
For seed-saving purposes, the most significant distinction among these types is that gardeners can
save true-to-type seed from open-pollinated and heirloom varieties, but not hybrids.
2.4 So what is best —hybrid, open-pollinated, genetically
modified, organic or heirloom varieties?
While hybrids have their benefits, choosing open-pollinated varieties conserves the genetic diversity
of garden vegetables and prevents the loss of unique varieties in the face of dwindling agricultural
biodiversity.
Furthermore, focusing on heirloom varieties creates a historical connection to gardening and food
production, building a more sustainable future by carrying on our garden heritage. By choosing
open-pollinated and heirloom varieties, farmers have the ability to help conserve biodiversity and to
contribute to the stories behind their seeds.
And it also helps to conserve the true taste of vegetables unlike the hybrids. Gardeners can also
localize their heirloom seeds because of their well-known adaptability. That means each year they
select the best plants to save seeds from, and over time the slight variations will produce a slight
strain difference that has adapted perfectly to their particular climate and conditions. Heirloom
seeds give gardeners huge choices, different ripening times and lots of fun experimenting with all
their quirky shapes, colours and characteristics.
Benefits of Seed Hybridization:
Higher yields
Improved fruit setting
Reduced pest and disease problems due to stronger vigour
Extended growing season
Earlier maturity
26
Withstands adversities, such as weather stresses
Known outcomes in terms of uniformity
Disadvantage of Hybrids:
Very sadly the progress made with our edible plants, coupled with our food and buying
habits has resulted in many cases in us, the public, having less choice!
Hybrids now fill up supermarket shelves. They are routinely bred with tough skins to stop
damage; same shape and size for easy packing; less sweetness to repel insect, bird and
animal damage: capable of being picked green and ripened in storage with gas... so we end
up with less taste, less softness, less nutrition, and less choice of varieties and sizes.
With the newer hybrids, seeds saved will generally not breed true and revert to the parents'
traits. They may be lucky and depending on the variety, gardeners could save the seeds for
another year or so and they will still be like original seeds. But eventually they will have to
buy new seeds if they want the same results, that means high input cost or with few plants
they can propagate them from cuttings or from division.
Home garden vegetables are so far not genetically modified. History will show just who is playing
fast and loose with the truth on genetic modification of our food. We need to know soon whether
GMO is good progress, or a very fast disaster in the making, for all life on Earth.
2.5 Difference between organic seeds/plants and heirloom
seeds/plants
Organic refers to a specific way plants and seeds are grown, while heirloom describes a plant's
heritage. Plants and seeds labelled as organic must be grown and processed in accordance with the
USDA's National Organic Program (NOP), which prohibits the use of synthetic fertilizers and
pesticides, genetically engineered seeds and materials, sewage sludge (bio-solids), and fresh
manure. Organic growers and processors, and the plants and seeds they produce, must be certified
as organic by an inspection agency accredited by the USDA.
The definition of heirlooms is less cut-and-dried. With seed-grown plants, only open-pollinated
varieties are considered heirlooms. Unlike hybrids, open-pollinated seeds will reproduce true to
type, meaning the offspring will display the same characteristics as the parent plant, and seeds can
be saved from season to season. Plants are considered heirlooms if they were once significant in
gardens but are now rare or even extinct in cultivation. For example, there are many cultivars of iris
or phlox or daylilies from the early 20th century that are nearly impossible to find. Seeds are
generally considered heirlooms if they were introduced into cultivation at least 40 years prior to the
27
current date, though some heirloom experts consider seeds heirlooms only if they were introduced
prior to World War II.
Gardening organically goes hand in hand with growing heirlooms, since many heirlooms were
introduced into cultivation before synthetic fertilizers and pesticides became available. Home
gardeners play a very important role in the preservation of heirlooms. Many people preserve special
plants and pass them down from one generation to the next along with the stories and histories
surrounding these heirlooms. When we lose that essential connection, it is often lost forever.
2.6 Types of Seeds – Second Classification
Generation system of seed multiplication is nothing but the production of a particular class of seed
from specific class of seed up to certified seed stage. The choice of a proper seed multiplication
model is the key to further success of a seed programme. The types of seeds considered here as
follows:
1. Nucleus seed: Nucleus seeds are the initial hand full of seeds obtained from selected
individual plants of a particular variety, for the purpose of purifying and maintain that variety, by
originating plant breeder.
2. Breeder's seed: Progeny of Nucleus seeds, its production is directly controlled by the
originating or the sponsoring breeder or institution, providing for the initial and recurring increase
of foundation seed.
3. Foundation seed: The Progeny of breeders or foundation seed handled to maintain specific
genetic purity and identity. This seed is the source of all other certified seed classes.
4. Certified seed: The progeny of foundation or certified seed that is handled so as to maintain
satisfactorily genetic identity and purity and that has been approved and certified by the certifying
agency.
28
3. Sakata Seed Corporation – An Introduction
3.1 Sakata Seeds Corporation
With Passion in Seed, Sakata is a world leader in breeding and producing vegetable and ornamental
seed and vegetative cuttings. Sakata breeders around the world work diligently to develop varieties
that offer superior performance and set new standards for the industry. It was established by Takeo
Sakata in the year 1913.
3.2 History of Sakata Seed Corporation
1913 Establishment of Sakata Noen after return of Takeo Sakata from Europe and
North America.
1921 Establishment of the first germination laboratory in the private sector in Japan.
1930 Establishment of Chigasaki breeding station and commencement of R&D over
wide ranging varieties.
1934
Sakata awarded Silver prize in the All-America selections for the first time with
the F1 all double petunia "victorious mixed", world's first all double flower
petunia.
1940 Announcement of "Suteki Kanran", the world's first F1 hybrid cabbage.
1942 Company is incorporated as "Sakata Seed Corporation."
Shanghai Branch closes due to proliferation of war.
1951 Retail section establishment in head office, one of Japan´s first gardening shops
(presently garden center Yokohama).
1959 Establishment of Misato research station.
1960 Establishment of Chogo research station.
1961 Establishment of Nakai research station.
1962
Commencement of sales of the "Prince" melon. Historically melon was a luxury
item grown in green houses and available to very few people. Prince Melon was
created as a cross-breed of melons native to Japan and to Europe. Initially Sakata
struggled to produce melons in Japan's hot, humid climate. Through a process of
29
trial and error, the "Prince" melon was born; a melon with high sugar content, a
good smell and soft flesh that could be grown in the open fields in Japan for the
first time.
1965
Medallion of honour of the All-America selections awarded to Takeo Sakata.
Commencement of sales of the "Kinkei 201" cabbage.
"Savoy king" cabbage awarded prize in the All-America selections.
1966
Establishment of Hazawa distribution center as packaging and shipping base.
World's first F1 Pansy "majestic giant mixed" and "white with blotch". Awarded
bronze in the All-America selections.
1971
Import and sale of sweet corn "Honey Bantam".
Kimitsu research station established and vegetable seed research program
expanded.
1972 Commencement of sales of the "Atlas" spinach and "Zuiko" tomato with multiple
disease resistance.
1977 Establishment of Sakata Seed America, Inc.
Commencement of sales of the "Andes" melon.
1983 Flower exhibition held at Mukogaoka-Yuen in celebration of the 70th anniversary.
1985 Commencement of sales of "Peter Corn" sweet corn and Sakurasuto high tech
seeds.
1986 Corporate name changed to “Sakata Seed Corporation”.
1987
“Sakata Seed Corporation” listed on the Tokyo Stock Exchange Second Section.
Successful pollen culture of Chinese cabbage.
Successful culturing of broccoli from anthers.
Successful raising of male sterile cabbage from cultivar.
1990
Establishment of Sakata Seed Europe B.V.(presently Sakata Holland B.V.).
Sakata Seed listed on the first section of the Tokyo Stock Exchange.
Establishment of Kakegawa research center.
Establishment of Hokkaido research station.
Participation in international garden and greenery exposition, and grand prize
awarded to "King of Snow" lisianthus.
1991 Establishment of Sakata Seed Chile S.A.
1993
Flower exhibition "Dream Show" held at Kakegawa Research Center in
celebration of the 80th anniversary.
Establishment of Sakata Seed Mexico S.A. de C.V.
Opening of Florida Research Station.
1994
Purchase of Agroflora S.A.
Establishment of Sakata Seed Do Brazil Ltda. (presently Sakata Seed Sudamerica
Ltda).
30
1995 Head office moved to Tsuzuki-ku, Yokohama.
1996
Establishment of Sakata Siam Seed Co. Ltd. (Thailand)
Establishment of Sakata Seed Iberia D.L. (Spain)
Establishment of Sakata Seed France S.A.R.L. (presently Sakata Vegetables
Europe S.A.S.).
Acquisition of Samuel Yates Ltd. (presently Sakata UK limited).
1997 Purchase of Chung Won Seed Co. Ltd. (presently Sakata Korea Co. Ltd.).
1998 Establishment of Sakata Seeds (Suzhou) Co. Ltd.
Establishment of research center in Uchaux, France.
1999
Zinnia "Profusion Cherry" and "Profusion Orange" both awarded Gold prizes in
the All-America selections.
Purchase of May Ford Holding Ltd. (presently Sakata Seed Southern Africa (pty)
L td.).
2000 Establishment of Yoju Research Station (Korea).
Sakata Seed Guatemala, S.A. established.
2001
Zinnia "Profusion White" awarded Gold prize in the All-America selections.
Establishment of European Sakata Holding (France) S.A.S. as headquarters for
Europe/Africa
2002
Garden center Yokohama renewed.
Purchase of Alf Christianson Seed Co.
The sales in Japan changed to four-branch organization.
2003
Celebration of the 90th anniversary.
Acquisition of the flower division of l.dæhnfeldt A/S (Denmark).
Establishment of Sakata Ornamentals Europe A/S.
Seed testing dept. (presently quality control dept.) obtained the certification of the
international seed testing association for the first time in Japan among private
companies.
2005
Medallion of honour of the All-America selections awarded to Shunichiro Suda,
Senior Managing Director.
Purchase of Qualiveg Seed production, Inc. (America)
2006 Establishment of Yaita logistics center.
2007 Adoption of Executive Officer System.
2008
Establishment of Sakata Seed India Private Limited.
Breeder's cup of the All-America selections awarded to Masao Bessho, Deputy
General Manager of production dept.
2010 F1 "Seirin" cabbage authorized for "2009 ministry of agriculture and forestry
authorized variety," the first authorized variety developed in the private sector.
2011 Establishment of Sakata Turkey.
31
60th year anniversary of Garden Center Yokohama and 80th year anniversary of
mail order.
2013 Celebration of the 100th anniversary
In the 100 years since its founding in 1913, Sakata Seed Corporation has always shown pride in
itself as a seed seller. Its work however, does not stop at seed sales. The company is truly committed
to making the world a better place by brightening home and gardens for as many people as possible.
3.3 Sakata Company Profile
3.3.1 Business
Sakata Seed was the first Japanese breeding company to export seeds and has actively developed
the global market for its products from its foundation. Currently Sakata Seed provides many best
selling varieties in more than 130 countries. They have a dynamic global network of research
production and sales activities in 16 countries, which are rooted in the needs of each region, so as
to develop greater market for their products. By offering varieties which meet every need though a
total support network under the reputed 'Sakata Brand', they continue to provide dreams to their
customers throughout the world.
They are actively developing their business not just in wholesale channel, but in support of
landscape and flower gardening review as well as garden centres for direct sales to consumers.
It is important to note that Sakata Seeds is not in the business of producing any genetically
modified seeds or crop.
3.3.2 Fields of Business
1. Production and sales of vegetable seeds, flower seeds, grass seeds, vegetable seedlings, flower
seedlings, bulbs and agricultural/gardening materials. Publication of gardening literature.
2. Research and development, contract seed production.
3. Designing, management and contract of following constructions: landscaping, greenhouse,
agricultural facilities.
32
3.3.3 Paid-in Capital and Annual Turnover
The company has a paid capital of 13,500 million Yen, annual turnover of 53,922 million yen and
ordinary profits of 3,909 million yen.
3.4 Major Research Products from Sakata Seeds
The top vegetable and ornamental products from Sakata Seeds can be listed in the table below:
# Product Image
1 Broccoli
2 Cabbage
33
3 Carrot
4 Cantaloupe Melon
5 Okra
34
6 Onion
7 Tomato
8 Pumpkin
35
9 Squash
10 Water Melon
36
11 Sunflower
12 Pansy/Viola
37
13 Petunia
14 SunPatiens
15 Zinnia
38
3.5 Sakata Seeds in India
Seeds on offer in India are primarily vegetable seeds. There are a few fruits and flower seeds also.
These can be listed as below:
1. Poorvi – Okra – Early maturity with fruits ready for harvest in 40-43days after sowing,
dark green fruits with smooth surface and 5 ribs, recommended for cultivation in Rabi and
Kharif seasons.
2. Green Express – Cabbage – Medium size, very firm, solid heads are well textured and
have exceptionally good flavour, excellent for early market, 5-55 days after transplanting
weighs 1 kg.
3. Anokhi – Chilli – Tall plants with spreading habit, green fruit with pendent bearing
habit, good dry fruit colour and quality.
4. Emerald – Tomato – Determinate, vigorous plants with good foliage cover, fruits are
ready to harvest in 60-65 days after transplanting, oval shaped uniform and deep red fruits
have smooth surface.
5. White Marble – Cabbage – Matures in 50-55 days after transplanting, curd shaped
dome, early tropical and plant size is small, weight 0.5 kg, Colour – White, Curd
protection – Open.
6. Hachi Michi – Water Melon – Oval to oblong with blackish green skin colour, fruit
weight 1.5-2 kg, harvesting after 70 days.
7. Yellow 300 - Marigold - A compact, deep yellow colour flower with strong
branching, plant height 35-60 cm depending upon days length, ball shaped firm flower.
3.6 Corporate Governance at Sakata Seeds
Basic policies regarding internal control and measures adopted to improve internal control at its
meeting of may 19, 2006, the board of directors adopted the following basic eight-point policy
related to the development of internal systems as prescribed under articles 362-4-6 and 362-5 of the
corporation law. These articles of the corporation law require companies to establish systems to
ensure that the directors, in executing their duties, act in compliance with the relevant laws and
ordinances and in compliance with their articles of incorporation. The eight-point policy has also
39
been developed in accordance with ministerial ordinances of the ministry of justice, which aim to
ensure the appropriateness of other activities by joint stock corporations.
1. Mechanisms to ensure that, in executing their duties, the directors and employees act in
accordance with relevant laws and ordinances and with Company’s Articles of
Incorporation.
2. Mechanisms to ensure the preservation and control of information related to the directors’
execution of duties
3. Regulations and other structures to protect against the risk of losses
4. Mechanisms to ensure efficient execution of duties by the directors
5. Mechanisms that ensure the appropriate conduct of operations of the Corporate Group
(comprising the Company and its subsidiaries)
6. Matters with respect to the employees concerned when the corporate auditors request the
assistance of employees in carrying out their auditing duties; matters related to ensuring the
independence of such employees from the directors
7. Mechanisms related to reporting by the directors and employees to the corporate auditors
and to other instances of reporting to the corporate auditors
8. Mechanisms related to ensuring the effectiveness of the corporate auditors in other areas.
40
4. Seeds, Treatment, Sowing, Storage and Transport
Plants reproduce sexually by seeds and asexually by vegetative parts. Grains, which are used for
multiplication, are called seeds while those used for human or animal consumption are called grains.
Good stalks of planting materials are basic to profitable crop production. The seed or planting
material largely determines the quality and quantity of the produce. A good seed or stalk of planting
material is genetically satisfactory and true to type, fully developed and free from contamination,
deformities, diseases and pests.
Seed is a fertilized ripened ovule consisting of three main parts namely seed coat, endosperm and
embryo, which in due course gives rise to a new plant. Endosperm is the storage organ for food
substance that nourishes the embryo during its development. Seed coat is the outer cover that
protects or shields the embryo and endosperm.
4.1 Characteristics of a Seed
A good quality seed should posses the following characteristics:
• seed must be true to its type i.e., genetically pure, free from admixtures and should belong
to the proper variety or strain of the crop and their duration should be according to agro
climate and cropping system of the locality
• seed should be pure, viable, vigorous and have high yielding potential
• seed should be free from seed borne diseases and pest infection
• seed should be clean; free from weed seeds or any inert materials
• seed should be in whole and not broken or damaged; crushed or peeled off; half filled and
half rotten
• seed should meet the prescribed uniform size and weight
• seed should be as fresh as possible or of the proper age
• seed should contain optimum amount of moisture (8-12%)
• seed should have high germination percentage (more than 80%)
• seed should germinate rapidly and uniformly when sown
4.2 Advantages of Using Good Quality Seeds
The following are the advantages of using good quality seeds.
41
• reduced cost of cleaning, standardization and disinfections
• uniform germination thus avoiding replanting, gap filling
• vigorous seedling growth, which reduces weed and disease, damages
• uniform growth stages, maturity and products
• maintain good quality under storage conditions
• reduced cost
4.3 Seed Germination
Germination is a protrusion of radicle or seedling emergence. Germination results in rupture of the
seed coat and emergence of seedling from embryonic axis. Factors affecting germination are soil,
environment, water, temperature, light, atmospheric gases and exogenous chemicals required for
germination of seeds.
4.3.1 Factors Affecting Seed Germination
Soil: Soil type, texture, structure and microorganism greatly influence the seed germination.
Environment: Generally, the environmental conditions favouring growth of seedling also favours
germination. Germination does not occur until the seeds attain physiological maturity.
Water (soil moisture and seed moisture): Imbibition of water is the prerequisite process for
germination. Both living and dead seeds imbibe water and swell. Dead seeds imbibe more water and
swell rapidly as compared to good seeds. The amount imbibed is related to the chemical
composition of the seed such as proteins, mucilage’s pectins and biochemical components. Cereal
grains such as maize imbibe water to approximately 1/3 of its seed weight, soybean seeds to 1/2 of
its seed weight.
Seed germination will be at its maximum when the soil moisture level is at field capacity. Slower
rate of germination is noticed in places where soil moisture is near or at wilting point.
Temperature: The optimum temperature is that one gives the highest germination percentage in the
shortest period of time.
Light: The most effective wavelength for promoting and inhibiting seed germination is red (660
nm) and infrared (730 nm), respectively.
42
Atmospheric gases: Most crop seeds germinate well in the ambient composition of air with 20%
Oxygen, 0.03% Carbon-di-oxide and 78.2% Nitrogen.
Exogenous chemicals: Some chemicals induce or favour quick and rapid germination.
• Gibberellins stimulate germination in protoplasmic seeds.
• Hydrogen peroxide (H2O2) is used for legumes, tomato and barley.
• Ethylene (C2H4) is used for stimulating groundnut germination.
4.4 Seed Rate
Seed rate is the quantity of seed required for sowing or planting in a unit area. The seed rate for a
particular crop would depend not only on its seed size/test weight, but also on its desired population,
germination percentage and purity percentage of seed.
4.5 Seed Treatment
Seed treatment is a process of application either by mixing or by coating or by soaking in solutions
of chemicals or protectants (with fungicidal, insecticidal, bactericidal, nematicidal or biopesticidal
properties), nutrients, hormones or growth regulators or subjected to a process of wetting and drying
or subjected to reduce, control or repel disease organisms, insects or other pests which attack seeds
or seedlings growing there from. Seed treatment also includes control of pests when the seed is in
storage and after it has been sown or planted. The seed treatment is done for the following reasons:
• To protect from seed borne pests and diseases.
• To protect from or repel birds and rodents.
• To supply plant nutrients.
• To inoculate microorganisms.
• To supply growth regulators.
• To supply selective herbicides.
• To break seed dormancy.
• To induce drought tolerance.
• To induce higher germination percentage, early emergence.
• To obtain polyploids (genetic variation) by treating with x-rays, gamma rays and
colchicines.
• To facilitate mechanized sowing.
43
4.5.1 Methods of Seed Treatment
Dry Treatment: Mixing of seed with powder form of pesticides/nutrients.
Wet Treatment: Soaking of seed in pesticide/nutrient solutions
Slurry Treatment: Dipping of seeds/seedlings in slurry. Example–rice seedlings are dipped in
Phosphate slurry.
Pelleting: It is the coating of solid materials in sufficient quantities to make the seeds larger, heavier
and to appear uniform in size for sowing with seed drills. Pelleting with pesticides as a protectant
against soil organisms, soil pests and as a repellent against birds and rodents is also done.
4.6 Sowing
Sowing is the placing of a specific quantity of seeds in the soil for germination and growth while
planting is the placing of plant propagules (may be seedlings, cuttings, rhizomes, clones, tubers etc.)
in the soil to grow as plants.
4.6.1 Methods of Sowing
Seeds are sown directly in the field (seed bed) or in the nursery (nursery bed) where seedlings are
raised and transplanted later. Direct seeding may be done by:
Broadcasting - Broadcasting is the scattering or spreading of the seeds on the soil, which may or
may not be incorporated into the soil. Broadcasting of seeds may be done by hand, mechanical
spreader or aeroplane. Broadcasting is the easy, quick and cheap method of seeding.
The difficulties observed in broadcasting are uneven distribution, improper placement of seeds and
less soil cover and compaction. As all the seeds are not placed in uniform density and depth, there is
no uniformity of germination, seedling vigour and establishment. It is mostly suited for closely
spaced and small seeded crops.
Dibbling - It is the placing of seeds in a hole or pit made at a predetermined spacing and depth with
a dibbler or planter or very often by hand. Dibbling is laborious, time consuming and expensive
44
compared to broadcasting, but it requires less seeds and, gives rapid and uniform germination with
good seedling vigour.
Drilling - It is a practice of dropping seeds in a definite depth, covered with soil and compacted.
Sowing implements like seed drill or seed cum fertilizer drill are used. Manures, fertilizers, soil
amendments, pesticides, etc. may be applied along with seeds. Seeds are drilled continuously or at
regular intervals in rows. It requires more time, energy and cost, but maintains uniform population
per unit area. Rows are set according to the requirements.
Sowing behind the country plough - It is an operation in which seeds are placed in the plough
furrow either continuously or at required spacing by a man working behind a plough. When the
plough takes the next adjacent furrow, the seeds in the previous furrow are closed by the soil closing
the furrow. Depth of sowing is adjusted by adjusting the depth of the plough furrow. E.g. Ground
nut sowing in dry land areas of Tamil Nadu is done in this manner.
Planting - Placing seeds or seed material firmly in the soil to grow.
Transplanting - Planting seedlings in the main field after pulling out from the nursery. It is done to
reduce the main field duration of the crops facilitating to grow more number of crops in a year. It is
easy to give extra care for tender seedlings. For small seeded crops like rice and ragi which require
shallow sowing and frequent irrigation for proper germination, raising nursery is the easiest way.
4.7 Seed Storage and Transport
There are several reasons why seeds are stored:
To allow the efficient management of seed handling and processing;
To cover the natural time gap between seed harvest and sowing;
To enable sufficient stocks to be carried in the distribution system;
To carry over unsold stock from season to season;
To provide security of supply (buffer stocks) to meet fluctuations in demand and supply and
meet the agreed inventory policy;
To provide sufficient stock seed for future production requirements.
Assuming that seed is harvested at maturity with satisfactory germination and vigour, it will become
subject to a natural process of deterioration over time, the rate of decline being influenced by several
factors such as moisture content, packaging, treatments and storage. These factors must be
45
controlled to ensure that seed bought by farmers is in satisfactory condition and has retained its
potential for high performance.
It is very important that storage conditions are satisfactory and that seed is regularly monitored for
both internal as well as external deterioration. Dealers frequently sell fertilizer as well as seeds and
it is imperative that seed is not stored alongside fertilizer. Fertilizer attracts moisture from the
atmosphere creating damp conditions that damage seeds. Separate arrangements have to be made for
the transport and distribution of potato seed, which requires special cool storage conditions. Storage
problems and seed quality loss are caused by:
High humidity and high temperature causing loss of germination and vigour;
Water, causing direct damage, increasing humidity and promoting fungal attack;
Insects and pests (birds and rodents) causing direct damage and spillage;
Cross contamination from fertilizers, chemicals and toxic materials;
Pilfering of seed due to the insecurity of the store.
To avoid such storage problems a company should consider constructing or renting high quality
buildings which may be both fumigated and ventilated, with concrete floors, waterproof roofs,
moisture-proof walls, good roof space above stack height, power and light. The location chosen
should have adequate drainage and not be prone to flooding. Seed should be stacked off floor level
and apart from other products. Holes in roofs, walls and under doors need to be avoided to prevent
pests from entering the store. The stores should be secure with an efficient stock control system in
place; and regular checks of buildings and seed storage conditions should be carried out.
Although ownership of the seed may have passed to the dealer it is the name of the supplying
organization which is carried on the bag. The marketing manager in the supplying organization must
be satisfied that minimum storage standards can be met by the distributors, allowing for the length
of time seed is expected to be in store. Reference could be made to these minimum standards in the
representation agreements. In planning storage a judgment must be made concerning peak holding
capacity and carry-over requirements, the capital cost of building and the availability and the cost of
space which can be rented, and the off-take rate during the sales season. The latter will depend on
distance, transport, demand patterns and storage at the point of sale.
If the seed organization has a regional structure, a network of regional seed stores should be
provided from which distributors and retail sales points can be quickly supplied. Apart from
concerns about security and basic protection, physical storage requirements will depend on the
amount of time that the seed is likely to be held. Generally, seed can be moved back to central stores
which have the required specifications after the selling season, to ensure that quality is maintained
over longer periods of time. This will also make retesting and relabeling more convenient. A policy
decision will have to be made regarding the provision of a return system for dealers.
46
The supplying organization can be expected to have comprehensive insurance for goods held in its
own stores but special cover may have to be arranged for goods in transit if the seed-supplying
organization undertakes delivery. Alternatively, seed can be sold ex-store with responsibility
passing to the customer. The decision whether to supply ex-store or deliver can only be made in
relation to the local situation but will be influenced by the product type, customer base and the
competition.
47
5. Soil Survey
Soils are non-renewable natural resource of any country. A thorough knowledge of a soil is very
essential for making all kinds of land use policies. To frame such land use policies, an inventory of
soil resources of a country should be made first. Preparation of such inventory starts with soil
survey. Without soil survey, effective land development projects, irrigation projects, development of
wild life sanctuaries, parks laying out transport facilities cannot be executed property. The soil
survey helps us in several ways.
At national level, soil survey helps to prepare soil resource inventory and overall land related
policies and plans.
At state level, it is basic to form land related development schemes. It is also useful to delineate
agricultural, forestry wastelands etc. At town level, soil survey reports are of immense use for town
planning or locating areas for residential building, roads, parks, waste disposal sites, other sanitation
facilities etc.,
In an agro climatic region, soil survey helps us in locating research stations and in identifying
representative soils for conducting field experiment, on farm trials and demonstration plots.
At farm level, it helps to identify the suitable crops, cropping sequence, irrigation and nutrient
managements.
Soil survey can be defined as the study of soil in the field for their morphological and other
characteristics supplemented by certain laboratory analysis, to classify the soils and map them into
texa usually up to soil series level so as to enable any user to interpret their potentialities for
different uses.
In soil survey, we obtain the following information a through field examination and laboratory
analysis. The information so obtained is used to interpret the utility of soil, limitation of soil for
specific use and to suggest suitable soil management practices.
• a complete description of soil
• distribution of different soil types
5.1 Objectives of Soil Survey
48
A thorough knowledge of soil is very essential for effective land use planning and conservation. Soil
survey is the 1st step for any land use planning. The objectives of soil survey may be fundamental or
applied (practical). The fundamental objectives of soil survey help thorough understanding of
genesis and classification of soils. The applied objectives or practical aspects of soil survey are
numerous. A few important applied practical objectives are listed below:
• To delineate cultivated soils, problem soils (such as saline soil, saline-alkali and alkali,
water logged, drained soils, coarse and heavy textured soils and wastelands.)
• To identify areas prone (subject) to wind and water erosion and suggest soil conservation
measures.
• To identify areas suited to specific crops.
• To identify areas having one or more nutrient deficiencies or stresses.
• To identify areas for settlement, rehabilitation, tax, appraisal, location of rail lines, airport,
roads, parks etc.
• To assess the suitability of area for irrigation and to assess the soil health due to irrigation
etc.
• To provide soil related information to development agencies or department for planning
optimum land use policies or executing those policies.
5.2 Plant Protection
Plant protection is of importance in crop production given the high degree of losses on account of
pests & diseases. The field of plant protection encompasses primarily activities aimed at minimizing
crop losses due to pest and diseases, promotion of sustainability management practises like
integrated pest management, regulation of pesticides, and preservation of bio-security and capacity
building of all stakeholders.
49
6. Seed Regulation in India
Signing of WTO in 1995 paved the way for private research and development of varieties. In order
to regulate such varieties, the protection of Plant Varieties and Farmers' Right Act was passed in
2001 which was followed by National Seed Policy, 2002 and Seeds Bill, 2004.
6.1 New Policy on Seed Development, 1988
The policy was formulated to provide Indian farmers with access to the best available seeds
and planting materials of domestic as well as imported
The policy permits the import of selected seeds under Open General License (OGL), to
make available to farmers high quality seeds to maximize yield, increase productivity thereby
farm income. The policy allow import under OGL of items such as seeds of oilseed crops,
pulses, coarse grains, vegetables, flowers, ornamental plants, tubers, bulbs, cuttings and saplings
of flowers.
While the import of horticultural crops including flowers need recommendation from
Directors of Horticulture, import of crop seeds require permission from ICAR. ICAR will direct
multi -locational trials in various agro-climatic conditions at least for one season.
Evaluation of important traits such as yield, pest resistance etc. needs to be done within 3
months of harvest after which importer shall apply to the DAC for permit. Within a month, DAC
will process it and thereafter controller of Imports and Exports will issue a license.
Private seed producing firms should compulsorily register with NSC before importing the
seeds.
The policy was immediately followed by an order by Government of India (Plants, Fruits and
Seeds Order) for the purpose to regulate the import of agricultural items into India.
6.2 Plants, Fruits and Seeds Order (Regulation of Import into
India order) 1989
The order was made suppressing the Plants, Fruits and Seeds Order (Regulation of Import
into India) 1984 and provides regulations during import based on post entry quarantine
checks.
50
Post entry quarantine facilities shall be established which shall be permitted to be released
by Designated Inspection Authority.
Import of any form of seed for consumption or sowing should carry a permit issued by the
competent authority, and the import should be only through specified customs stations.
The consignment shall be inspected by the Plant Protection Advisor.
Amendments have been made for the above order during 1998, 2000 and 2001. With the
liberalized trade in agriculture, as consequence to WTO agreements, Government thought of
providing new legislative provisions under the new order, Plant Quarantine (Regulation of
import into India) Order, 2003. The Order has now replaced the Plants, Fruits and Seeds
order, 1989.
The order has widened the scope of plant quarantine activities and has made pest risk
analysis compulsory for imports
The order includes provision for regulating the import of soil, moss, germplasm and
GMO's for research, insects, microbial cultures and bio-control agents, timber and wooden logs
The order prohibits import of commodities contaminated with weeds, alien species, and
packaging material of plant origin unless the material has been treated
Agricultural imports are thus classified as: prohibited plant species, restricted species
where import permitted only by authorized institutions and declarations and plant material
imported for consumption or industrial processing permitted with phytosanitary certificate
Phytosanitary certificate according to Plant Quarantine requirements has to be provided so
as to prevent spread of noxious pests
Pest risk analysis during post entry quarantine is compulsory.
Import of germplasm has to be permitted by NBPGR and any other biological materials
such as soil, microbes, moss etc. has to be permitted by Plant Protection Advisor
A list of 590 quarantine pests and 61 weed species have been declared under the Order
Notified entry points for import have been increased compared to PFS Order, 1989
Strengthening Plant Quarantine facilities, opening new quarantine stations, establishing
advanced molecular diagnostic facilities for rapid pathogen detection, setting up of National Pest
Risk Analysis unit are other important features of the Order
51
Global realization on the role of plant genetic resources in development of superior crop varieties
and use of many traditionally grown plants in development of medicines and various industrial
applications raised concerns for Conservation of Biological Diversity (CBD) which came into force
in the year 1993. Government of India felt the need to provide protection to plant varieties which
have tremendous commercial value after India became signatory to the Trade Related Aspects of
Intellectual Property Rights Agreement (TRIPS) in the year 1994. The TRIPS agreement required
the member countries to provide for protection of plant varieties either by a patent or by an effective
sui generis system or by any combination there-of. The sui generis system for protection of plant
varieties was developed by India integrating the rights of breeders, farmers, and village
communities. The Protection of Plant Varieties and Farmers Right Act was thus formulated in the
year 2001.
6.3 Protection of Plant Varieties and Farmers Right Act, 2001
The Act covers all categories of plants except microorganisms
The variety being claimed for protection needs to be notified
The food crops including major cereals, pulses, oilseeds, vegetables and fruit crops are
selected on first priority
Crops important for India in the world trade, species of Indian origin, crops where India
could benefit from introduction of new germplasm are other priorities
The act is unique in the world with inclusion of rights of farmers, breeders, researchers and
equity concerns
The Central Government shall establish a PPV & FR Authority with a Chairman and 15
members to implement the various functions of the Act
A variety can be registered for protection if it satisfies the criteria of Novelty, Distinctness,
Uniformity and Stability (NDUS)
Novel means the variety was not sold or disposed by the breeder for commercial exploitation in
India earlier than one year or outside India, earlier than four years before the date of filing of
application for registration.
Distinct means the variety is clearly distinguishable by at least one essential characteristic from
any other variety whose existence is known in any country at the time of filing of application
52
Uniformity means the variety is sufficiently uniform for essential characteristics other than the
variation that may be expected within the variety due to its mode of reproduction
Stability means the variety remain unchanged for its essential characteristics even after repeated
propagation
The DDS test guidelines have been laid for - many crops and registration for many crops
for protection has already been initiated. In cotton, 37characters for tetraploid and 31 for diploid
cotton have been identified. A manual is available giving the description of such traits in various
crops published by Directorate of Seed Research, MAU
The detailed contents to be provided in the application form for registration has been
given. Complete passport data of the variety, clear pedigree and source of origin of the variety,
statement declaring no terminator gene is present, specification on novel and distinct character of
the variety etc. are some of the major features in the form
It shall not apply for registration of farmers’ varieties
Period of protection is six years in case of crops and may be renewed on condition that the
total period of validity does not exceed 15 years
Breeder has to pay an annual fee based on the royalty gained by the variety for retention of
registration of the same
Registration certificate issued to a breeder confer him/her exclusive right to produce, sell,
market, distribute, import or export the variety
Researchers are not prevented for conducting research using the registered variety or using
the same for creating newer varieties provided an authorization is given by the breeder indicating
the necessity of use of protected variety
The breeder of essentially derived varieties so developed using the protected varieties shall
have the same rights as the breeder of other new varieties
Farmers have been provided right to avail protection of varieties conserved or developed
by them
Farmers can save, re-sow, exchange, share and sell farm produce of any protected variety
except its commercial marketing with brand name
Farmers have the right for innocent infringement when, at the time of infringement he is
not aware of the existence of breeder rights
53
A National Gene Fund has been constituted which will be utilized for payment as rewards
to farmers who has preserved a variety and which has been used as donor of genes in
development of a new variety by any breeder
The gene fund is also utilized for providing compensation to farmers if the variety does not
perform to the expected performance of the variety. The expected performance of a protected
variety under specific condition needs to be compulsorily provided to the farmers during sale
Under situations of unavailability of seeds of protected varieties, the authority can grant
compulsory license to any person for producing and distributing the seeds to public at a
reasonable price, provided the expiry period of 3 years of registration of variety is completed
Breeder needs to share the benefits accrued from a registered variety with the necessary
claimers who shall be heard and if convinced, his share may be given as per the nature and extent
of the benefit
National Gene fund is credited with the benefit sharing from the breeder, the annual fees
payable by the breeder through royalties and contribution from any national and international
organization and other sources
Fund will be utilized for disbursing shares to benefit claimers, compensation to seekers,
supporting conservation and sustainable use of genetic resources, and for strengthening the
capabilities of the Panchayat in carrying out such conservation measures
Constitution of Plant Variety Protection Appellate Tribunal to exercise jurisdiction and
powers consisting of Judicial as well as Technical members
The authority provide measures to Institutions for registration of extant (already known to
exist) and new varieties, characterization, documentation and developing a data base of all
existing varieties, cataloguing of farmers' varieties, ensuring availability of seeds of registered
varieties, maintenance of register of plant varieties etc. taking advantage of any institution
including ICAR
Identification of possible reference varieties is a requirement under DDS testing which has
to be for all crop species. Their storage is an important component of the act for which
appropriate storage facilities need to be created at selected locations
The Indian PPV & FR Act thus appears to be an effective sui generis system providing a balance
between plant breeders' rights along with farmers' rights and researchers' rights. The impact will be
felt only after its effective implementation.
Seed industry was promoted and regulated through Seeds Act, 1966, Seeds (Control) Order, 1983
and the New policy on seed development, 1988. However, far reaching changes have been taken
54
place in the national economic and agricultural scenario and in the international environment since
the enactment of the existing seed legislation. Biotechnology sector came up with promises of
extremely productive GM crops. It was believed that the new technology has the potential to
improve living standards. Various organizations such as ICAR, Ministry of Environment and
Forests, Government of India, Federation of Indian Industries (FICCI) support commercialization of
such crops. National seeds policy was thus formulated in the year, 2002 to provide an appropriate
climate for the seed industry to utilize available and prospective opportunities, safeguarding the
interest of farmers and conservation of the biodiversity.
Liberalization has been targeted towards certain components of the policy retaining regulation to
some components to safeguard national interest.
6.4 National Seed Policy, 2002
National Seed Policy was formulated in 2002 to raise India’s share in the global seed trade by
facilitating advanced scientific aspects such as biotechnology to farmers and in March 2002, first
transgenic Bt cotton was approved for commercial cultivation in India.
The policy encourages private sector participation in research and development of new
plant varieties.
The rights empowered to various bodies for regulating the quality of seeds produced,
distributed and for providing variety protection as per the Seeds Act, 1966 and PPV & FR
Act, 2001 have been retained in the policy
Promotion of seed village scheme to increase the production and make available the seeds
in time as well as upgrading the quality of farmers' saved seeds
Establishment of seed banks for ensuring supply in times of calamity and storage facility at
village level
Establishment of a National Seed Board in place of Central Seed Committee and Central
Seed Certification Board to undertake seed certification and advising Government on all
matters related to seed planning and development. NSB will serve as the apex body in the seed
sector
Setting up of National Seed Research and Training Centre to impart training in seed
technology
55
Development of a National Seed Grid to provide information on availability of different
varieties of seeds with production details. Both public and private sector will be encouraged to
join the grid for a clear assessment of demand and supply of seeds.
Few of Policy’s other recommendations have been addressed in PPV &FR, Act, 2001 also. Major
ones are maintenance of a National Register on seeds of varieties, establishing a national gene fund,
disclosure of the variety's expected performance and provision for farmer to claim compensation in
case of crop failure. Further, aims of National Seed Policy such as development of infrastructure,
ensuring supply of good quality seeds and facilitating the International seed trade are sought to be
addressed through the proposed Seeds Bill, 2004.
6.5 Regulatory Measures Specific to Transgenic Seeds
Recognizing the potential of Genetic Engineering and its relevance to India, Ministry of
Science and Technology gave sufficient impetus for research and monitoring of transgenic
seed development. The measures of transgenic regulation fall under the Environment and
Protection Act, 1986 and EPA rules, 1989.
Establishment of Department of Biotechnology in 1986 exclusively to apply
biotechnological approaches in agriculture and human health
Establishment of Review Committee on Genetic Manipulation (RCGM) in 1989 for
effective monitoring and evaluation which lay guide lines for assessment of GM crops
Establishment of Institute Bio-safety Committee at the organization level, to monitor r-DNA
technology work
Establishment of Special Monitoring cum Evaluation Committee under RCGM to monitor
the impact of transgenic plants on the environment with following members:
Establishment of Genetic Engineering Approval Committee which will recommend the
Government for approval of a transgenic variety for commercial cultivation
An All India Crop Biotechnology Association (AICBA) was also formed to represent seed
industry in addition to existing ones such as Seed Association of India at New Delhi and
Association of Seed Industries at Mumbai
56
Under Seeds Rules, 1968, Central Government has declared CICR laboratory of ICAR as
Referral Laboratory for Bt. cotton seeds in 2003. The detection kits developed at CICR has
been recognized by the Government as a standard test for Bt. detection in GM seeds. As per
the rule all seed testing laboratories are to perform Bt. purity testing along with genetic
purity testing and the following standards have been specified for the same:
Submitted sample size: 25g
Working sample size: 10 seeds
Minimum level of Bt. toxin to be present: 450nanog/sq.cm. or /gm seed
The purity in terms of quantum of gene expression of Bt. Protein should be 90% for labelling of Bt.
cotton seed.
57
7. Structure of Seed Sector
7.1 Structure of the Indian Seed Industry
Although the Indian seed market is one of the largest, it is almost exclusively supplied by locally
produced seeds. Farmers retain seed of major food crops (wheat, rice, sorghum, millet, corn, and
pulses) and commercial crops for many years, and the largest volume of seed trade involves local
exchanges of established self-pollinating varieties.
The seed replacement rate in most crops is very low, with the exception of cotton and some
vegetables. The use of hybrid seeds is mostly confined to cotton, and to some extent to corn, millet,
sunflower, and few vegetables. However, awareness about the high yield and quality of produce
from hybrid seeds, attracting farmers to switch over to hybrids, is growing. The Indian seed industry
used to be dominated by public sector seed companies. However, following the easing of
government regulations and the implementation of a new seed policy in 1988, the private sector
seed companies have started playing a major role in seed development and marketing.
More recently, the Government’s decision to embrace biotechnology as a means of achieving food
security has attracted several leading biotechnology-focused multinational seed companies to India.
The composition of the seed industry, by volume of turnover, has reportedly reached a ratio of
60:40 between the private and public sectors.
7.2 Public Sector Seeds Companies
Public sector involvement in the seed industry on a national scale began at the beginning of the
“green revolution” with the establishment of the National Seed Corporation (NSC) in 1963, which
was charged with the responsibility of promoting seed industry development from production
through processing, storage and marketing, and establishing a system of quality control. Before that,
the Indian seed industry was little developed apart from a small number of private companies
dealing with high value vegetable and flower seeds.
In the initial years of operation, the NSC concerned itself mainly with foundation seed production
and with seed certification after the enactment of Seed Act in 1966. The State Seed Corporations
58
(SSC) were established later with support from the World Bank, initially in nine states, and later
expanded to cover 13 states, for production and handling of seed in their respective states.
The role of public sector seed companies is now mostly confined to certified seeds of high volume,
low value segment of high yielding varieties of cereals, pulses, and cotton with a limited presence in
the high value hybrid sectors of cotton, cereals, and vegetables. Wheat and paddy seed constitutes a
major share of the seeds handled by them. The NSC and SSCs work closely together to coordinate
procurement and sales prices as well as variety demand and supply. Their presence is considered
necessary by the Government to ensure the availability of reasonably priced seeds of major crops
throughout the country and to make sure that private sector seed companies do not enjoy and exploit
unreasonable market power.
The public sector seed companies, however, lag behind in research; they are mostly dependent on
public research institutions, under the aegis of Indian Council of Agricultural Research (ICAR) and
State Agricultural Universities (SAUs) for their breeder seed requirements. Based on feedback from
dealers and end users, the public sector seed companies/state governments forecast seed demand for
various crops three years in advance and a requirement for breeder seeds is placed with the GOI’s
Ministry of Agriculture.
Using the breeder seeds supplied by government research institutes, the public sector seed
companies produce foundation seeds on government farms or reliable, well trained contract farms.
These are further multiplied in contract farmers’ fields next year as certified seeds for commercial
distribution. If for some reasons (drought or other weather calamities) the supply of certified seeds
falls short of requirements; the public sector seed companies source commercial grain from the
market, upgrade the quality, and after proper testing distribute it as quality seeds.
All seed grown by contract growers for seed corporations meeting the specified standards attract a
premium price over and above the commercial grain price for that crop. The premium can vary
between 25 percent for cereals to over 100 percent for hybrids. In the public sector, NSC is usually
the retail price setter with the SSCs following NSC prices in determining their own for similar or
substitute varieties.
For self-pollinated field crops, an accepted basis is to add a margin of 15 to 25 percent on
production costs. For hybrid seeds of cereals and vegetables, prices to some degree reflect market
trends. However, there is Government intervention in the pricing of seeds produced by public sector
corporations with the degree of intervention varying from state to state. Some states are now
thinking of giving greater autonomy to their seed corporations to make them financially viable by
allowing them to market private branded seeds, domestically produced or imported.
59
An advantage to the government seed companies is that they have a vast distribution network and
trusted brand image. The reason why they are losing market share is because seeds by private
companies often outperform the publicly available varieties. Some SSCs have started their own
research to evolve superior propriety hybrids.
7.3 Private Sector Seed Companies
Easing of government regulations in the late 1980s spurred enormous development within the seed
industry by attracting several foreign seed companies to India. While some of them (like Cargill)
entered through joint venture partnerships with Indian seed companies, some others already had a
presence in India through affiliate companies (like Hindustan Lever).
They identified potential crops for hybridization and started research and development activities.
Typically they concentrated on hybrids, mainly corn, cotton, sunflower, vegetables, and flowers
(more recently on rice), and they now account for a major share of commercial production of these
seeds in India. The basic reason for the private sector’s focus on these crops is that it involves low
production volume and higher margins. Concomitantly, they had little interest in developing self-
pollinated crops, which involve high volume and low margin and are more prone to piracy in the
absence of an effective Plant Variety Protection regime in India.
Furthermore, there is no significant Government intervention in the pricing of these hybrids, and the
Indian seed regulations permit marketing of truthfully labelled seeds. Currently, some 500 hybrids
of field crops and vegetables are being marketed, as truthfully labelled seeds, mostly by private seed
companies. The private seed sector now comprises some twenty or so large players (with sales
turnover exceeding INR 200 million), several medium companies (sales turn over between INR 200
million and 20 million), and a large number of small, unorganized players (sales turnover less than
INR 20 million) with local presence.
The private seed industry is now undergoing a transition following the Indian Government’s focus
on biotechnology research, as a means of increasing agricultural production and also driven by
trends in the domestic and world seed market. Intensifying international competition, increasing
R&D costs, and the complexity of biotechnology have lead to increased consolidation of the Indian
seed industry with several of the large and medium companies merging or being taken over by
multinational seed companies. Most large multinational seed companies now have their presence in
India (either as a joint venture or with 100 percent equity) with their main focus on biotechnology.
These include Monsanto, Bayer CropScience, Syngenta, Advanta, Hicks-Muse-Tate, Emergent
Genetics, Dow Agro, Bioseed Genetics International Inc., Tokita Seed Co, and Nunhems Zaden
BV.
60
Another factor attracting international seed companies to India is the country’s varied agro-climatic
conditions and abundant skilled and unskilled labour, as seed production, particularly hybrid seed
production, is highly labour intensive. Private seed production is largely centered around Bangalore
for vegetable crops and Hyderabad for field crops, particularly cotton seeds. The emergence of
these two seed production centres is due to ideal climatic conditions, better infrastructure, the
technology and research leadership, and the expertise of the two regions’ seed farmers in
manipulating crops for perfectly synchronized flowering.
The initial focus of many of these companies has been cotton seed, for which genetically modified
(Bt) hybrids have already been approved by the Indian government for commercial cultivation, with
other bio-engineered crops in the pipeline. Most of these companies have licensing agreement with
Monsanto for the Bt gene; some are trying to develop their own Bt technology, legally or illegally.
The seed industry is represented at the national level by two associations “The Seed Association of
India” based in New Delhi and the “Association of Seed Industries” based in Mumbai. Recently, a
third association called All India Crop Biotechnology Association (AICBA) was formed with
members from mostly hybrid seed producers and multinationals like Monsanto and Dow
Chemicals.
7.4 Towards Developing Plant Varieties
Seeds are particularly important in farming systems where resources are scarce since a significant
contribution to productivity can often be gained solely from the seed used, independent of other
purchased inputs. Thus, the genetic potential of seed largely dictates crop yields and the productivity
than other agricultural inputs and cultural practices.
The situation in countries where the seed market is immature is that improved plant varieties are
released to farmers mainly through public sector research. In markets which support a mature seed
Industry, private sector companies are usually the main source of new varieties, with the Public
Sector concentrating on basic breeding and releasing new genetic material rather than finished
varieties ready for commercial use.
The degree of public sector involvement in the release of finished varieties reflects both
Government policy and the extent to which the private sector has developed. While Governments
may support National breeding programmes, in order to ensure a flow of improved varieties of the
major crops, investment by the private sector is also to be encouraged.
61
The private sector is only likely to become involved if a well-regulated market exists and the
products of private research are granted protection through plant breeders' rights. This is particularly
necessary for inbred crops. Hybrids, and many vegetable crops, have a degree of in built protection
as the breeder controls the parent lines. Initially, therefore, private companies will probably begin
supplying the seed of the more easily controlled and more profitable hybrid and vegetable crops,
leaving the public sector to concentrate on the more strategic, higher volume, non-hybrid crops.
Variety development (especially for self-pollinated crops) is predominantly carried out in the public
sector, although in recent years there is growing private sector involvement, which focuses mainly
on hybrid cereals, cotton, sunflower, vegetables, and flowers. The private sector is also actively
involved in developing bio-engineered crops of cotton, oilseeds, and other crops. The ICAR,
operating through 30 All India Coordinated Crop Improvement Projects (AICCIPs), five Crop
Directorates, and seven National Research Centres coordinate public sector plant breeding. Basic
genetic material from which new varieties are developed is available from the institutions’ own
resources and from the National Bureau of Plant Genetic Resources (NBPGR), through which India
has established a working relationship with international agricultural research centres. ICAR’s own
institutes and several SAUs at research centres located in different parts of the country and focusing
on various agro-climatic zones carry out the AICCIPs. The present arrangement in India for variety
development, testing, evaluation, and release are as follows:
New varieties are developed by SAUs, ICAR institutes, and private seed companies.
Varieties that show some promise are entered into the All India Coordinated Trials (AICT) operated
by SAUs, ICAR institutes, and State Agricultural Departments under the auspices of ICAR.
Results of the AICT are presented at the respective Annual Workshops of participating scientists
working on the particular crop, where recommendations are formulated for submission to the
Variety Release Sub-Committee of the Central Seed Committee who makes final recommendations
to the Agriculture Ministry on which varieties should be released and notified.
7.5 Public-Private Sector Cooperation
Cooperation between private sector seed companies and public research institutes under ICAR,
SAUs, and the International Crop Research Institute for Semi-Arid Tropics (ICRISAT), supported
by the Consultative Group on International Agricultural Research (CGIAR), is growing. Public
sector breeder seeds are available free of charge to private seed companies with no strings attached.
The AICT annual workshops provide venues to private sector seed companies to assess what is
62
available with public research institutes. Under the “consortium” model with ICRISAT, private
companies can jointly fund research that results in publicly available parental lines, which they
often cross with in-house genetics to produce proprietary hybrids. ICRISAT recently introduced a
live-in campus for private sector researchers to use the institutions’ facilities and expertise.
ICRISAT is focusing more on private sector partnerships for funding reasons and also because of
private companies’ effectiveness in getting the research result out to farmers.
ICRISAT is currently reviewing its policy of keeping all research in the public domain and is
considering licensing/royalties/exclusive rights. Private companies can also fully fund research at
SAUs for exclusive rights on the results and/or hire professors as consultants, although the degree
of cooperation varies from state to state.
63
8. Types of Seed Production and Distribution Organizations
8.1 Government Departments
Ministries are normally given the responsibility for seed production and distribution programmes in
those countries in which the state is directly involved in the supply of agricultural inputs and where
there are no other reliable and effective channels.
The mandate of Government departments is usually to serve all categories of seed user. Therefore,
they are obliged to supply a diverse range, including seeds of low value grains, to areas of both high
and low productivity. Being, in general, non-commercial in nature, Government departments tend to
be heavily bureaucratic with time consuming communications processes which are not responsive to
the needs of the market.
8.2 State-Owned Corporations
Public sector corporations have an independent management and financial structure, albeit
underwritten by Government. As such they may have some financial autonomy but their operational
strategies and approach to pricing are usually determined by official policy rather than by market
forces. Management is frequently expected to operate amid conflicting social and commercial
objectives, while not losing money. Although profit may not be an actual aim, pricing to achieve full
cost recovery should be.
State-owned seed corporations may be integrated plant breeding, production and marketing
Organizations or simply act as the seed supplier with breeding being part of Government-financed
Research. Distribution may take place through Government supply points, direct from seed plants or
through private dealers. If a seed corporation is well managed, embracing commercial principles,
then the option exists to attract a private sector partner in a joint venture.
8.3 Private Enterprises
In the seed sector, private enterprise involvement can range from international seed companies and
National seed businesses to local suppliers working in perhaps just one region of a country. Private
Businesses should operate within the framework of Government seed legislation thus giving the
farmer consumer protection. The distribution of seeds takes place through retail outlets which can
64
receive their supplies directly from the seed producer, through intermediate distributors, or through
wholly integrated companies which control all the major functions of breeding, production and
distribution and have a complete sales network. Such companies will concentrate their activities in
those market segments where there is commercial demand and on those crops which can be
marketed profitably, for example, hybrids, vegetables and seeds which are not retained by farmers
for replanting.
8.4 Cooperatives
The main function of a cooperative is to act on behalf of its member farmers in providing them with
inputs and in the marketing of their crops. Individual cooperatives can be members of a single
centralized state organization or independent, if owned directly by the farmers themselves.
Cooperative groups are well placed to become involved in seed production on an independent or
contract basis and can act very effectively as marketing agents. A good example of an independent
cooperative is the seed cooperatives of Zimbabwe, the success of which depends on the mutual
cooperation between Government and the mainly privately owned seed Cooperative. The
cooperative sells seed at prices which are agreed with Government and surplus funds are distributed
to members.
8.5 Seed Producers' Associations
Yet another kind of organization is one in which individual seed producers come together to form an
Association. In the beginning, an association produces improved seed from those crops which are
planted by farmers in its immediate vicinity. As the association gains experience and seeks the
services of technically competent personnel it may extend the scope of its activities by adding new
crops and seeking new markets.
65
9. The Purpose of Seed Marketing
Although Governments in developing countries have, in general, succeeded in establishing seed
Legislation as well as seed production and trading activities, Government supply objectives are
frequently not met and seed stocks remain unsold.
This may be because the public sector usually operates passive distribution systems, simply stocking
outlets from which the farmer can collect seed but often leaving many outlets un-stocked or stocked
with wrong varieties. Such systems are not responsive to the needs of the farmer.
However, by introducing a commercial perspective and applying sound management and marketing
Techniques these passive systems can be transformed into active marketing systems which may
prove far more beneficial to the farmer and the supplier .The principle that marketing is about
identifying, anticipating and satisfying the needs of the farmer, as well as realizing the
objectives of the supplier, is fundamental. Even if public sector objectives are not necessarily
profit oriented there is no reason why a public organization should not adopt sound management and
marketing techniques.
9.1 Marketing Information
The information required to make business decisions and to plan and control seed marketing
activities fall under the broad headings of:
1. General economic and political factors;
2. The market place;
3. The company and its products;
4. The competition;
5. The distributors;
6. The farmers;
7. The traders and industrial users who buy farm produce
Considering the above headings, the following items will act as a guide to the kind of information
required by managers of a seed company and how it might be used.
66
9.1.1 The information required on general economic and political factors
includes:
National economic performance and political indicators;
Agricultural policy;
Seed sector policy;
Seed legislation;
Infrastructure development;
Crop and regional development assistance;
Industrial development in the food sector
These are factors which should be considered in longer range planning and when making investment
decisions. They are important when setting up new breeding programmes, as ten years may elapse
before the new products become available.
9.1.2 The following information is needed about the market place:
Size, volume and value of seed required;
Structure, farm size and type and regional differences;
Trends, changes taking place in the market;
Demand;
Seed supply, the volume of seed certified, imports;
Import regulations and duty payable;
Transport;
Geographic and climatic factors
Such market data are used when creating sales forecasts and making seed production and purchasing
decisions. This basic market data is also needed when consideration is being given to new products
and markets.
9.1.3 Information required by managers on their company and its products:
The image and reputation of the company among distributors and farmers;
Satisfaction of the dealers and their customers with the company's products and service;
Aspects of the company's product presentation and service which should be improved;
The responsiveness of the organization to customers' needs and changes in the market;
67
The reason why farmers choose the company's products, e.g. For cost benefits, technical
benefits, superior yield;
New products in the pipeline;
Progress reports on production and processing and stock available for distribution.
Several of the above factors fall into the category of qualitative data. This can be collected by
questions to customers and may be used in making changes to the internal organization of the
Company as well as in planning promotional campaigns. Also included is internal information, such
as variety performance and stock availability, which is required by management for day-to-day
Operations.
9.1.4 Information required about competitor companies includes:
Ownership and organizational details;
Market shares by variety, breeder, distributor;
New varieties undergoing official trials;
Distribution systems used, number and location of outlets;
Pricing to distributors and farmers, price history, margins and commission, terms of trade;
Promotional activities, extension, product and market support, advertising, packaging;
Number and location of sales representatives and their areas of operation;
Dealers shared with other suppliers and how much they sell from each company;
Responsiveness of competitors to customers' needs and changes in the market
In a market economy seeds of the same or similar varieties will be available from various sources,
allowing customers to choose between different brands. It is therefore important to know as much
about the competition as possible since choice is based on many factors, not just product
performance.
9.1.5 Seed companies will also require the following information on their
distributors:
The company's distributors and their location;
Methods of communication with the distributors;
Their purchasing pattern and history;
The level of support they need;
The factors limiting their purchases of the company's products;
Their financial soundness;
68
Alternative channels of distribution
This is operational information that is used to manage and control the channels of distribution and to
evaluate alternative methods.
9.1.6 Information needed regarding farmers includes:
Factors which limit or influence their demand for seeds;
Land ownership and who makes the buying decisions;
Banking and credit sources to which farmers have access;
Agronomic problems such as pests, diseases and weeds;
The leading farmers in the area;
Literacy level;
Availability of transport and in what form;
Sources of information used by farmers
Customer information of this type helps in market planning and focusing the target of sales and
promotion efforts. Such information is also useful to distributors and dealers. Indeed distributors and
dealers may be used to collect information on farmers.
9.1.7 Finally, information is required from the buyers of farm produce grown
from the company's seeds. This information includes:
Marketing arrangements that exist for farm produce;
The uses to which the product is put;
Quality requirements;
Quality premiums available to the farmer;
Contract growing systems and whether seeds are supplied or varieties specified;
Developments in the commodity and final products markets, including demand, price and
replacement by substitutes.
This will indicate the extent to which the buyer or industrial user influences the farmer's decision to
buy a particular seed. Often industrial users provide seed as part of a buy-back contract. Research
gives an indication of the strength of the market for farm produce and, therefore, future demand for
seed. There are also quality factors which should be understood and incorporated into plant breeding
objectives. Examples are barley used for making malt, wheat used for bread making and cotton used
for high quality yarn.
69
9.2 Sources of Information
9.2.1 Internal Information
Much of the information required by management can be found within the company so that is the
best place to start. Often, extensive records are kept but the data is not made available in a form that
can be readily used by management. All organizations collect information in the course of their
everyday operations. For example, orders are received and delivered, costs are recorded, activity
reports are submitted and invoices are sent out. As an example, the information that can be derived
from invoices includes:
Sales by territory:
Sales by customer type (if they are classified):
Average order size by customer type and area;
Sales by product type and variety, package type and size;
Average sales by the personnel responsible;
Frequency and seasonality of orders;
Sales incentive or promotion programmes;
Payments outstanding;
Such information helps managers analyse sales performance, target the sales and promotion effort,
evaluate distribution channels and dealer performance, and follow up late payments when credit is
given.
9.2.2 External Information
There are many sources, depending on the particular type of information required. Some of these
sources are listed below, with examples of the kind of information available.
# Source Type of Information
1 Dealer network Variety and types of seed grown, buying
habits, competitors' products and prices,
stocks
2 Farmers and farmers' organizations Consumer profiles, factors affecting seed
70
purchasing, level of input use
3 Government agricultural and trade
statistics
Crop area, yield and farm size and number,
imports and exports
4 Provincial and regional Government
offices
Precise statistical data and local knowledge,
support programmes
5 Government organizations breeding
institutes, certification and extension
services
Crop agronomy and variety, information,
seed certification tonnages
6 International agencies Statistics, special studies, crop and
commodity reports
7 Seed associations and other trade
organizations
Seed company listings and details, seed
production and supply data
8 Product catalogues Competitor product range, treatments,
prices, terms of trade, sales organization
9 Trade directories Company listings, product details
10 Related industries Agrochemical, fertiliser and machinery
companies
11 Agricultural banks Economic data, credit and loan facilities,
linkage with development programmes
12 Universities and other teaching
establishments
Library facilities, technical and research
data, studies and specialist knowledge
13 Journals and publications Technical articles and special features,
product and market reviews
Attention must be given to the accuracy and reliability of the source and attempts made to cross
reference and double check. Data must be treated with care. Seed import, export and production
figures, for example, may or may not distinguish between seed used for sowing and oil seed for
crushing.
71
10. The Importance of Price
Price has different meanings for different groups of people:
To the buyer price is a cost which is used as a measure of value; the buyer evaluates one
variety or source of seed against the alternatives;
To the seller price is revenue and therefore a key element in the marketing mix.
Setting the right price is an important tactical decision and is a key factor influencing revenue and
profit. To a Government price may mean popularity and votes and is therefore a sensitive political
issue; Governments may therefore seek to influence and control seed pricing.
The importance of price varies from one market to another and between different segments in the
same market. For example, non hybrid seed, which the farmer can save, will be more price sensitive
than hybrid seed. Price will be a more critical factor in marginal farming areas, where spending
power is low, but less important where high yields can be obtained and farm produce can be sold
profitably. Providing the benefits of the seed are understood, it is other factors, such as the
availability of fertilizer and confidence in the produce market, rather than price that dominate the
farmer's decision to purchase.
10.1 Price and Demand
The manager responsible for pricing a product must know how much more will be sold if the price
is lowered and, conversely, how much less will be sold if the price is increased. There is obviously a
limit to what the farmer will pay as well as a limit to demand however low the price is set (unless
seed is used for human consumption). As prices increase the point is reached where substitutes to
bought seed, such as farm saved seed, may be used or the farmer may choose to plant a different
crop.
Price can be one of the most effective marketing tools available to a company. Pricing strategies for
a product or product line should be established on the basis of reaching short and long-term
marketing objectives such as selling a certain quantity, achieving a certain market share or making a
given margin over costs. However, prices are often set without taking into account the true cost of
production and the effect which that may have on the competitive position of a product or product
range.
72
10.2 The Cost of Seed
Cost of seed is a major factor in any discussion about price. Thus the costs involved in putting a bag
of seed on the farm must be recorded, analysed and known to management. These costs will include
the cost of the processed and packaged seed and the marketing costs associated with selling and
distribution.
Costs may be grouped according to the activities involved notably:
Seed production involving procurement cost
Processing and storage
Quality control and certification
Seed marketing, taking into account marketing, market research, advertising and
promotion, sales and distribution
Administration and finance
For a company planning a seed production programme the working capital needed to procure and
process seed has to be assured. If it is not to be financed out of existing resources then short-term
loans are required to ensure that there is sufficient working capital. Seed held in stock at the various
stages of processing also have to be financed. This is a significant cost item and there may be
serious financial consequences for a business that has high stock levels. The manner in which costs
are allocated and presented will depend on the accounting system used. Elements which make up a
profit and loss account are discussed below:
# Term Meaning
1 Revenue Income from various sources such as sales,
commissions or royalties
2 Sales Direct income from sales of seed
commission’s indirect income from sales
made on behalf of a third party.
3 Royalties or commissions Income earned from licensing varieties to a
third party
4 Cost of goods Direct costs of procuring seed for sale plus
treatments and packaging; may include
5processing costs depending on accounting
policy
5 Gross margin Sales income less purchase costs (also
expressed as a percentage); serves as a
73
The profit and loss account can be presented for the business as a whole or for individual products
or groups of products which may represent 'profit centres' within the business. Costs which are
common to the whole business, e.g. the central management or the fixed cost of owning and
operating a breeding station and processing plant, can be allocated across products. Although some
products will be more profitable than others, and will be able to bear a greater share of the
overheads, it is important to cost each product as honestly as possible for management control and
decision-making purposes.
10.3 Pricing Policy
Seed pricing involves setting prices when a new product is launched or a new distribution channel is
used. Also, decisions may need to be taken to change the price in response to competition and to the
general market situation.
In the public sector, prices are often based on an economic pricing policy. Economic pricing
considers the effect of seed price on the economy, taking into account the amount officials think
farmers can afford to pay and the role of the seed industry in the development of agricultural
production. Ideally, however, the public sector should follow a more commercial pricing policy, this
accounts for all costs and allows for an element of profit.
Some objectives in Government seed pricing could be:
To induce farmers to use certified seed of improved varieties in order to increase national
production;
useful indicator of the earning power of the
product or business
6 Expenses Company overhead costs associated with
different activities such as production, sales
and distribution, marketing, and
administration.
7 Trading profit gross Margin less expenses
8 Plant breeding Breeding, variety maintenance and trial
costs
9 Gross profit Trading profit less plant breeding
expenditure
10 Net profit after finance and tax
Gross profit less finance and tax charges
74
To provide adequate incentives to seed producers to supply seed in sufficient quantity to
meet demand;
To encourage the development of private distribution channels;
To implement Government agro-economic policies
The objectives of public-sector seed agencies are usually similar to those of Government since the
main purpose is to maximize seed use while achieving a marginal profit to finance the organization.
Institutional inefficiencies often mean that profits are not realized and the Government is, in effect,
financing a hidden subsidy to make up for the losses which cannot be covered by cost increases or
operational improvements.
State-run organizations may continue to supply the high volume and low margin non-hybrid seeds,
Such as cereals or seeds of public varieties while the private sector develops more profitable high
margin and imported seeds. Some objectives in private sector seed pricing are likely to be:
props maximization which will be the long-term target although there may be many other
shorter term considerations which will influence pricing policy, such as increasing market share
and gaining acceptance of new products;
price competition, may be achieved by setting a price that gives a competitive edge in the
market place but may not be lower than that of a rival because other factors, such as service, will
be contributing to a company's competitive advantage;
10.4 Pricing Strategies
Once a company's seed pricing objectives have been established, different pricing strategies must be
considered. These include:
10.4.1 Low Price Strategy
Low price strategies are used where consumers respond very positively to small downward changes
in price, but a company may not always gain from setting low prices as more efficient competitors
may respond with similar price cuts. If the product is not particularly price sensitive then the net
effect of a price reduction can simply mean a reduction in revenue. A company may be tempted to
reduce its price where similar or substitute products are also sold or when there is an oversupply.
However, seeds can become devalued by selling them cheaply especially where there are real
benefits associated with the product. Imported vegetable seeds are often chosen by farmers in
75
preference to locally produced varieties in the belief that they are better because they are more
expensive. It is therefore critically important to understand the likely response of the farmer when
adopting a low price strategy.
10.4.2 Market Price Strategy
Where a few large companies dominate supply, products tend to be similar (known in the seed
Industry as "me-too" varieties) and the role of price tends to be neutral, i.e., a market price is
established.
10.4.3 High Price Strategy
This strategy can be used as a long- or short-term policy. In the case of the long-term policy the
company will have identified a market segment for a high quality, value-added product such as
graded and treated seed for precision drilling. A high price will reflect the exclusive image or added
value of the product. A short-term, high-price policy takes advantage of a new product introduced
onto the market, as may be the case with a new high-yielding variety where supply is limited.
10.5 Pricing Techniques
The important influences on pricing are cost, demand, prices of the product's main competitors and
short-term sales targets.
10.5.1 Cost-Plus Pricing
This method involves calculating the unit cost of a product and adding the appropriate profit margin
to give a base price which might then be altered in relation to prevailing market conditions. While
this seems a simple approach the fact that such pricing is production oriented and may therefore not
reflect what is happening in the market place, makes it risky. A rigid application of cost-plus pricing
may lead to price increases when demand is lower and reductions when demand is strong. This is
the opposite of what should normally be done.
10.5.2 Contribution Pricing
76
This is a form of cost-plus pricing which involves separating the different products that make up the
Product portfolio and allocating to them the direct costs associated with their production. The price
is determined at a level which will generate revenues in excess of these costs, thereby contributing
towards meeting business overheads. Individual products can be analysed in terms of their ability to
cover their direct costs and contribute to overheads.
10.5.3 Competitive Pricing
Where there is market competition, costs cannot always be the determining factor in pricing. Here
the nature and extent of competition will have a major influence on the price. If a product is faced
with direct competition from similar products the price will be restrained. In contrast, when a
product is faced by indirect competition from products in different sectors of the market there will
be more scope to vary the price. This provides the possibility of using different strategies.
10.5.4 Short-Term Pricing Techniques
Pricing can be a useful tool for pursuing short-term marketing and sales targets. When a new variety
is launched higher prices can be set, providing the opportunity of earning higher returns from those
farmers’ willing to pay the higher prices before seed becomes more widely available. Lower prices
may be linked to promotional activities such as boosting sales of established varieties, creating
interest in new ones, reducing high stocks and encouraging farmers to buy early.
10.6 Distributors' Margins
There are no fixed rules to apply, but the basis for setting a margin will depend on what is expected
of the distributor and the acceptable final price to the consumer. Clearly, if the distributor is going to
be actively involved in selling the seed and is expected to take a stock risk then the margin must
afford adequate compensation.
Seed margins have to be attractive enough to provide the dealer with an incentive to stock and sell.
Where there is competition, seed marketing companies compete by offering more attractive trading
terms. This encourages dealers to stock their products and give them prominence. If farmers go to
buy seed, and are undecided about the variety, the dealer will recommend seed from the most
profitable supply source. If a seed company wishes to enter an exclusive arrangement with a dealer,
such that seed of other companies will not be sold through the same outlet, then it is usual to provide
77
a higher margin. The dealer will also have to be assured that the company is able to offer an
adequate range of competitive products.
10.7 Price Lists, Terms and Conditions of Sale Price Lists
Whatever the mechanism used for setting prices these prices need publishing and publicizing. Prices
must be published in time for the selling season and in time for farmers to make their buying
decisions. Frequently, situations arise in the public sector where all the parties involved in the price
setting process fail to agree or the administration of the system is too slow. As a consequence, the
Sales campaign is delayed or there is uncertainty in the market causing seed to remain unsold.
It is common to provide an internal price list for the seed company's sales staff giving details of
margins, commissions and discounts and indicating the latitude they have when selling to the
distributors. Retail prices may be published as part of a catalogue or as a separate printed list. The
advantage of a separate list is that it can be altered in response to market conditions more frequently
than a printed catalogue. The distributors' price list should give details of:
Product group and variety name;
Package sizes and details plus package prices and the per kilogram price for comparison;
Prices for different seed preparations and treatments;
The minimum unit of sale;
Discounts available;
Payment details;
10.7.1 Some Components of Terms and Conditions of Sale
Complaints procedure: the circumstances under which a complaint about seed quality will
be considered.
Seed standards: regulations governing the supply of seed.
Latent defect: since seeds are supplied free of disease the company disclaims responsibility
for subsequent infection when the seed is grown.
Definition of terms used to describe the variety response and performance: words such as
resistance, immunity, tolerance and susceptibility are defined.
Plant variety protection: adjustment of prices to account for any royalty payments those are
liable to be paid.
78
Published prices and quotations and subsequent alterations: explanation of what is included
in the price and the right to alter quotations.
Force majeure: covers factors outside the reasonable control of the supplier; standard
exclusion clause covering the failure of a crop or delivery under such circumstances, such as a
natural disaster, Government action or civil commotion.
Damage delay or loss in transit: time limit and procedure modification
Transport charges and insurance: the supplier determines the delivery system. If he covers
'normal' delivery then any excess, express delivery, may be charged the customer.
Payment: statement of standard payment terms and discounts.
Currency changes affecting the cost of seed this covers goods of foreign origin where there
may he currency changes or the imposition of import taxes
Bankruptcy affecting the buyer and seller: legal position pertaining to bankruptcy of either
party
Arbitration rules or legal jurisdiction under which disputes will be settled
Acceptance of terms: the placing of an order infers acceptance of these terms.
Seed supplied for crop production not seed production: disclaimer for performance of a
subsequent crop grown from retained seed.
Property rights and payment: definition of the transfer of properly at the point at which
payment is made in full.
Date and period for which the prices apply;
Minimum order time from supplier;
Transport costs and arrangements if applicable;
Insurance costs in transit if applicable;
Appropriate contact names, addresses and numbers
10.7.2 Terms and Conditions of Sale
These may be printed in catalogues, on price lists or on order and dispatch forms. They set out
formally the basis on which the business will be conducted between the seller and the buyer. They
also provide a reference point should there be any subsequent dispute. It should be understood that
basic consumer protection rights cannot be avoided by simply writing disclaimers into the terms and
conditions.
79
11. Market Segmentation
Individual customers have different needs but an organization cannot provide a different product
and service for each customer, neither can customers be served properly if they are all treated as
being the same. The technique of market segmentation is used to help solve this dilemma.
Market segmentation is the process of identifying and then separating a total market into parts so
that different marketing strategies can be used for each part. This involves collecting marketing
information about the different segments that the company has identified. Distinguishing between
the different characteristics and needs of consumers order to identify a particular market segment is
called differentiation. To be of value to the marketing manager, the segments should include, within
the segment, customers that are very similar to each other but, between segments, customers that are
as different as possible from each other. The manager will look for segments that are large enough
and have sufficient purchasing power to give an adequate return and make a differentiated
marketing approach worthwhile. This information is critical to the selection of target markets.
An example of differentiation could be the difference between vegetable growers with small
holdings supplying a range of fresh produce to local markets and specialist growers producing
vegetables to supply a canning factory.
Market Segments on the basis of a couple of factors can be shown below:
# Segments on the
basis of
Sub Type Attributes
1 Geographical factors
Location
Physical characteristics, rainfall,
soil types, altitude
Irrigated or dry land
Different cropping patterns and
input regimes, farming systems
2 Crop species Type or variety
White or yellow maize, hard or
soft wheat
Season Winter, spring or summer sown
80
Maturity groups Early, medium, late
Use and quality
Forage or grain, feed or bread
making, oil or meal, etc.
Non hybrid or hybrid
vegetables
Maize, sunflower
There are a number of broad classes of crops. These include cereals, pulses, oils, fibres, industrial
crops, vegetables and flowers. Vegetables can be further sub-divided by type, e.g. Leafy, legumes,
fruits and root. Each of these types has, in turn, a range of species and varieties. Thus a complete
study could involve too much work for the resources available. Crops must therefore be chosen
which are directly relevant to the company's business or form part of an evaluation of new
opportunities.
Farmers can be grouped according to the kind of farm they operate; since different farms have
differing needs, the services provided to each type will require specialists who can meet the
requirements of that particular farm type. Accordingly, the marketing manager may choose to
separate the larger managed farms for personal attention and target farmers who sell their crops for
cash rather than those who retain crops for use on the farm.
81
12. Management of Distribution and Sales
12.1 Sales Service
In order for distribution and sales to be managed effectively a sound management and reporting
structure is vital at every level. Within the marketing organization the sales service functions are
directly concerned with the operational aspects of seed distribution. Central sales and distribution
functions are:
Central sales management;
Order administration and preparation;
Transport;
Dispatch;
Stock records and inventory control;
Sales administration and invoicing (credit control).
While the field sales force consists of:
Regional sales management;
Technical representatives;
Sales representatives.
Assuming that seed is distributed on a regional basis through a dealer system the marketing manager
should:
Allocate responsibility for major customers within the organization in order that they may
receive special attention;
Define the sales territories of the area sales managers, salesmen and dealers;
Know what the potential seed requirement is by the type of seed in each territory;
Agree sales targets when setting the forecast and budget with those responsible for the
territory;
Schedule dealer visit and support programme with salesmen;
Insist on activity reports from the salesmen and arrange regular meetings;
Establish a regular reporting system for monitoring sales and stock availability, both at the
point of sale and at the supply locations;
82
Introduce a sales staff incentive scheme in the form of bonuses or gifts linked to individual
sales performance.
12.2 Order and Stock Administration
Every organization needs to develop a sales administration system which would include the
following steps:
Step Activity
Order receipt Entering the order into the order administration
system
Order validation Checking details, customer status and carrying
out credit checks
Stock allocation Checking that stock is available and adjusting
stock records
Order alteration Referring back, if necessary, to salesmen and
customer
Dispatch allocation Allocating packing date and rotation and dispatch
number
Order preparation Withdrawing stock and adjusting stock records
Order dispatch Notifying salesman and/or customer when to
expect delivery
Invoice Sending by post, or by special order if leash-on-
delivery' is being used
Payment receipt Entering payment receipts in the accounting
system
Credit control Collecting overdue accounts, where necessary
Reference has been made to the fact that useful marketing information can be generated from
invoices. Sales administration generates management control information, such as sales progress
and stock update reports, and triggers action if stock shortages develop in the distribution system.
The importance of accurate stock control and record-keeping throughout the system should not be
underestimated. This should include seed at all stages of bulk storage, processing and awaiting sale.
Information that may affect planning, e.g. the effect of drought, the timing of rains or possible
disruption to the transport system must also flow in from the sales regions. Obviously, good
communications are vital if the system is to respond quickly to potential sales opportunities.
83
84
12.3 Operations Calendar
Seed processing, packing and distribution creates a great deal of activity, involving people in
different departments and locations. It is important that the planning is well thought out and the
periods of peak activity identified and expressed in terms of working days, storage capacity or
transport tonnage, so that extra resources can be brought in if necessary.
12.4 Selection of Dealers
The number and distribution of sales' points and dealers is influenced by the cover required to
adequately service the market. A judgment will have to be made on how best to service the farmers
in a region and achieve the sales and financial objectives of the organization.
It is important to make an assessment of the general activity of the dealer since, as well as in selling
seed; the dealer is the primary contact point with the market. There is no point in a company
servicing inactive dealers. Once selected, they should agree to minimum targets for a mix of
products. The dealership should be worth holding so the dealer will work to achieve targets rather
than risk losing his dealership.
It is recommended practice to sign representation agreements with distributors and dealers. The
agreements should be simple and easy to understand and, if necessary, reproduced in the local
language.
It is important that the dealer be willing to participate in company training programmes. The dealer
should be trained, not only in the technical and agronomic aspects of the product range, but in
product presentation, selling and storage. There will also be a requirement for the dealer to follow
various administrative and record-keeping procedures.
The farmer may need a credit before being able to buy inputs. Credit can come from several sources
but competition between seed companies may lead to credit being extended to farmers through the
dealers. Dealers may therefore be required to operate a credit system supported by the seed
company.
12.5 Competitor Companies
85
The following seed companies are the major competitors of Sakata Seeds in India as they also work
in vegetable seeds research and development.
1. Nuziveedu Seeds
2. Nunhems Seeds
3. Namdhari’s Seeds
4. Ankur Seeds
5. Mahyco
6. Indo American Seed Company
(Monsanto and many other companies have not been listed as competitors as they are
involved with seeds of crops other than vegetables)
12.6 Marketing Techniques that Sakata Seeds Can Adopt in
India
Sakata Seeds Company can employ the following marketing techniques to increase its awareness
among Indian farmers and growers so that they become aware of the unique qualities, cost effective
nature and free from genetic modification (free from GM) qualities of its seeds.
12.6.1 Participation in flower shows, vegetable shows and trade and village
fairs –
This participation will present to people the unique qualities of the Sakata products. Winning prizes
at these shows will also offer free publicity on TV and in local newspapers. This publicity in the
form of prizes will be considered as genuine by prospective buyers as compared to company
advertisements. The company can either directly participate or encourage gardeners to use its seeds
to grow plants for show participation.
12.6.2 Advertisement on Radio and Television including Kissan Channel
86
As of now, the Indian farmers and gardeners are not much aware of the Sakata seeds qualities.
Launching advertisement campaigns on radio and Kissan Channels will make the farmers aware of
the company seeds. Being of Japanese origin, the Indian people will start with a positive outlook
about the company and would be easily willing to try out its products.
12.6.3 Sponsorship of Scholarships in State Agriculture Universities in India
By sponsoring a few scholarships in various state agricultural universities, the company will make
its presence registered with all the students studying there. These students would be tomorrow’s
decision makers in the form of agricultural managers, marketing managers, etc. and they would
keep it in mind to recommend Sakata Seeds where ever they go due to their good awareness of the
company.
12.6.4 Membership of National Seed Association of India and Advertisements in its Magazines
Membership of the National Seed Association will immediately introduce the company to the entire
seed market in the country. It will keep the company in sync developments and also of keep the
company aware of the competition in the market. Advertising in its Magazines will also
immediately take the company products to the target markets as the Magazines have got a very
good reach.
12.6.5 Employing of Direct Sales Agents of the Company
Employing of Direct Sales Agents of the Company would bring the complete knowledge about the
company to the doorsteps of farmers in a very small cost. The direct sales agents need to be trained
well about the hybrid technologies used by the company, its products and the unique selling
proposition of the company seeds.
12.6.6 Partnership with Seed Dealers
Partnership of a Seeds company with Seed Dealers is always of great value. This concept has
already been covered above.
87
12.6.7 Set up of dedicated Sakata Seeds Sale Channels/Counters Near the Agricultural
Farms
In addition to partnership with dealers, setting up of dedicated sales counters near farms during the
sowing season would help the company establish itself in the initial days. Farmers would be
tempted to buy from their doorsteps rather than spending time on going to seed markets. Once the
farmers try the seeds, they would be delighted with the results and would want to buy the same
seeds from next season onwards.
88
13. Opportunities for Sakata Seeds in India
Sakata Seeds has multiple F1 Hybrid vegetable products on offer in India. Given below is a
summary of the F1 Hybrid market status in general and F1 Hybrid vegetable and fruits market in
particular in India. This summary shows that the F1 hybrid vegetable market has matured over
decades in India, especially for the products being offered by Sakata Seeds. This mature market
means that there are no apprehensions regarding performance of hybrid technology in the minds of
Indian farmers or growers. This provides a unique opportunity to Sakata Seeds in India to quickly
grow its market share.
13.1 Impact of Hybrid Technology in India
Seed is the basic input in agriculture and plays a crucial role in enhancing agricultural production
and productivity. Without the use of quality seed, the investment incurred on inputs will not pay the
desired dividend which out to be realized.
The semi-dwarf high yielding varieties of wheat and rice developed in the early sixties laid the
foundation of “The Green Revolution” in the country. During this period, hybrids in maize,
sorghum, pearl millet and cotton were developed and released. Establishment of National Seeds
Corporation in 1963 facilitated the seed production and distribution system and quality assurance of
these high yielding varieties (HYV) and hybrids (HY). Later, the National Seed Project was
initiated in 1977 to encourage rapid multiplication and distribution of breeder, foundation and
certified seed of improved varieties in the country. Till early 90s, the public sector was primarily
responsible for seed research, production and distribution of quality seeds as well as HRD. The
“Programme on Hybrid Research and Development” of ICAR and New Policy for Seed
Development, 1988 implemented by the Government of India (GOI), boosted investments in the
seed sector, both from the domestic as well as multinational companies. The Government schemes
and funding, support of the World Bank through the National Seed Project (NSP) and investment
made by the private sector, both in research and infrastructure development resulted in rapid
growth, enhanced demand and supply of quality seeds of HYVs and hybrids of cotton, maize,
sorghum and pearl millet. Following this, the share of private sector increased significantly in
different crops (in maize, cotton and vegetables up to 80 percent). Presently, India ranks fifth in the
global seed market. The annual turnover of seed industry is estimated to be 150 billion rupees of
which 130 billion is from crop seeds and 20 billion from vegetable seeds.
89
The Indian seed Industry consists of both public and private players. The public sector meets the
demand of high volume low value seeds of field crops while the private sector sells high value low
volume seeds (hybrids, transgenic and vegetable seeds).
Initially reluctant, but after 2009, private sector contributed significantly towards quality seed
production. This can be seen from the three tables below:
Table 1: Private Sector Varieties/Hybrids in major field crops
Crop Number of Varieties and Hybrids by Decades
1980-1989 1990-1999 2000-2010
Rice 198 188 303
Wheat 84 66 112
Maize 43 64 113
Pearl Millet 38 45 51
Sorghum 55 49 55
Cotton 72 78 95
Total 490 490 729
90
Table 2: Trend in Private Sector Varieties/Hybrids in major field crops
Table 3: Total seed production by public and private sectors (lakh quintals)
Year Total seed
production
Quantity of
seed
produced by
public sector
Share of
Public
sector (%)
Quantity of
seed
produced by
private
sector
Share of
Private
sector (%)
2003-04 132.27 69.47 52.52 62.80 47.48
2004-05 140.51 77.25 54.97 63.26 45.02
2005-06 148.18 78.83 53.19 69.35 46.80
2006-07 194.31 114.64 58.99 79.67 41.00
2007-08 194.23 111.51 57.41 82.72 42.59
2008-09 250.40 150.79 60.22 99.61 39.78
2009-10 280 171 61.08 109 38.93
91
Presented below is a snapshot of the contribution of the private sector seed companies in offering
hybrid varieties for crops of food value in India:
Table 4: Popular hybrids in crops of food value
Crop %age are
under
hybrids
No. of
Hybrids by
Private
Sector
No. of
Hybrids by
Public
Sector
Share of
Private
Sector
Hybrids
(%age)
Maize 58.8 103 28 78.6
Rice 3.5 23 19 54.8
Sorghum 53.1 53 13 80.3
Pearl Millet 68 82 13 86.3
Sunflower 41.7 48 16 75
Wheat 0.2-0.3 3 0 100
Mustard 11 1 91.7
Pigeon Pea 1 2 33.3
92
Table 5: Trend of Private Sector’s Share in Popular hybrids in crops of food value
13.2 Relevance of Hybrid Technology in India
During the last 50 years, hybrid technology has proved in more than one way its relevance to the
country’s agricultural growth in general and crops of food value in particular. It was following the
introduction and extensive adoption of hybrid technology that there has been phenomenal advance
in production and productivity across field crops. Hybrid Maize and Sorghum have shown
impressive results. Despite significant yield increase in rice and rapeseed mustard since the
introduction of hybrid technology, its impact on production is not to the desired level because of
insignificant area planted to hybrids.
In the case of sunflower, in spite of impressive yield advantage and over 80% of the area planted to
hybrids, their impact is not visible in production due to drastic decline in the area under the crop
since 1990.
As for vegetable crops, close to three folds increase achieved in the production during the last 20
years has been due to sizeable increase in area under high yielding varieties and hybrids and yield
by 65%. The yield advance is attributable to increasingly more area planted to hybrids in cabbage
and cauliflower, tomato, brinjal and chillies and cucumber and melons. (The products in bold are
93
focus products for Sakata Seeds in India and the existing data provides the company a very good
opportunity to market its seeds since the market for its seeds has already matured in India)
Meeting the estimated future demands of food grains and vegetables and fruits is basic for the
country to become food and nutrition secure.
In the two tables below, the food demand for the country is presented. It shows that there are huge
opportunities for food grains, pulses, oil seeds, vegetables and fruits’ quality seeds production in the
country to meet the ever growing demand.
Table 6: Per Capita availability of food commodities: Present Status and Minimum
Requirements
Commodity Present (gm/day) Minimum Required
(gm/day)
Food Grain 440 460
Cereals 410 400
Pulses 29 70
Edible Oil 35 45
Vegetables and Fruits 140 400
Table 7: Demand projection of food commodities
Commodity 2011-12 2030 2050
Cereals 218.9 270 350
Pulses 18.8 30.5 48
Edible Oil 14.2 24.7 39
Vegetables 139.2 234 375
Fruits 77.4 181.5 325
94
Table 8: Trend in Demand projection of food commodities
13.3 Hybrid Revolution in Vegetables in India
With the changing paradigms of food and nutritional securities, the consumption of vegetables has
attained tremendous importance. The seeds are the basic resource to increase the vegetable
production. The term vegetable seed encompasses the botanical seed as well as vegetatively
propagated seed (stem cutting, root cutting, suckers, rhizomes, bulbs, corns and tubers). Majority of
the vegetable crops are propagated by true seed while few like pointed gourd, coccinia, garlic, etc.
are propagated vegetatively. Due to increasing pressure on land through urbanization and
industrialization, it is not feasible to increase the area under vegetables commensurate to our
requirements; hence the preciousness of the high quality vegetable seeds becomes more significant
than it has ever been to increase the yield per unit area. This is the point at which hybrids carve a
niche for themselves as they possess wider adaptability to environmental stress and are more
uniform from plant to plant than non-hybrids. Other benefits of hybrids may be earlier flowers,
higher yields, improved disease resistance or other characteristics. The extra vitality in hybrid plants
is called “hybrid vigour”. More plants survive the seedling stage, grow larger and stronger than
non-hybrids and have higher yields.
The focus of second green revolution or the so called “Evergreen Revolution” is on ensuring food
and nutritional security to the Indian populace, especially for below the poverty line population
which constitutes around 28% of the Indian population.
95
With practically no more land to farm and some depletion of agricultural land, this miracle is not
easy to achieve. Science and technology have to play a big role. High productive seeds, private
sector involvement and expenditure on long stalled irrigation schemes are keys to achieving higher
production.
Development in vegetable production, particularly through hybrids, contribute not only to food and
nutritional security but also to poverty removal and income generation, often stimulating the use of
new methods, machinery and yield enhancing agro-inputs, the seeds hold the key to increased
productivity. Coupled with bio-technology, seeds offer tremendous opportunity for improving the
productivity of Indian agriculture. During past 5 years, the Indian seed industry has been growing at
a Cumulative Aggregate Growth Rate (CAGR) of 12 percent compared to global growth of 6-7
percent.
Initially during seventies, hybrids in tomato and capsicum made a mark with growers. After the
introduction of new seed policy in 1989, 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 as private sector got a huge boost with the reforms of 1989.
Presently vegetables are grown in about 8.4 million hectare area with total production of 146.5
million tonnes. The productivity of vegetables has increased from 15 tonnes/hectare in 2001-02 to
17 tonnes/hectare at present. Use of quality seeds of improved varieties/hybrids of different
vegetable crops has witnessed tremendous growth in vegetable production and productivity in the
country.
The table below shows estimated vegetable seed requirement and production in India:
Table 9: Estimated vegetable seed requirement and production in India
# Crop (a) Total
Requireme
nt (tons)
(b)
Production
from
organized
sector (tons)
(c)
Other
quality
seeds (tons)
(d)
Shortage
(tons) [b – (c
+ d)]
1 Tomato 360 190 80 90
2 Brinjal 465 85 50 330
3 Chilli 200 68 80 52
4 Cauliflower 280 130 35 115
96
5 Cucumber 70 37 30 13
6 Muskmelon 110 37 40 33
7 Watermelon 320 135 100 85
8 Bottle gourd 615 105 100 410
9 Onion 1200 200 400 600
10 Okra 4250 1350 800 2100
11 Radish 650 300 200 150
12 Carrot 700 200 250 250
13 Beetroot 400 100 120 180
14 Peas 6000 1500 200 2500
15 Cabbage 200 80 60 60
(Vegetables in bold show the focus vegetables for Sakata Seeds in India)
13.4 Strengths, Weaknesses and Constraints in Hybrid
Vegetable Seed Production in India
13.4.1 Strengths
We have a well developed vegetable seed production chain under both public and private
sectors.
A network of seed certification agencies is available for maintaining the quality of seeds in
the country.
A large number of hybrids in different vegetable crops are available suited to varied agro-
climatic conditions. This makes selection easier for taking up production for a particular area.
A very fast development of private seed companies which are helpful in bridging the gap
between demand and supply of vegetable seeds in the country.
97
With protection given under PPV & FR Act, the private sector’s participation has increased in
R&D.
13.4.2 Weaknesses
The vegetable seed production in our country is taken up mainly under open sky which makes
its vulnerable to the vagaries of weather.
At present, the requirement of vegetable seeds in the country is mostly based on estimate
which does not reflect the actual position.
Since in our system, there is no restriction for planting any particular vegetable crops in any
particular area, it becomes difficult many times to maintain the recommended isolation
distance for producing pure seeds.
Most of the indenting agencies are ignorant about newly developed improved varieties of
different vegetables and they keep on indenting old and obsolete varieties time and again.
Many times the indenting agencies do not turn up to lift the seeds produced against their
indents. This situation leads to discouragement of producing centre and can affect the seed
production negatively the succeeding year.
13.4.3 Constraints in Hybrid Seed Production
The primary disadvantage of the hybrids is that the seeds cannot be saved from year to year.
Seeds saved from hybrid plants will not usually produce the same plant the next year.
High production cost – Hybrid seeds are produced mostly by private seed companies and
involve high production costs.
Hybrid seed production is very labour intensive enterprise particularly due to hand-pollination.
Hybrid seed production can only be undertaken by technically trained manpower for the
purpose.
High cost of hybrid seeds makes resource poor farmers reluctant to use it as many of them
cannot afford to purchase such costly seeds.
Less popularization of public sector hybrids and unavailability of their seeds in sufficient
quantity.
98
13.5 Vegetable Hybrid Seed Production System
F1 Hybrids have almost entirely replaced open-pollinated varieties of tomato, cabbage, cucumber,
squash, melons, onion and sweet pepper in Japan, Netherlands, Denmark, France, Canada,
Australia, U.K. and USA. Though India has also made a revolutionary progress in case of cabbage,
cauliflower, tomato, cucumber, bottle gourd and bitter gourd and is accelerating its pace in the
direction, still the path is long to move neck on with global vegetable plants. The first vegetable
hybrid in India was developed in bottle gourd in 1971 from IARI, Regional Research Station. It was
followed by development of summer squash and cucumber.
In private sector, Indo American Hybrid Seed Company was the pioneer, which in 1973, launched
its tomato hybrid “Karnataka” and capsicum hybrid “”Bharath.
Thereafter tremendous progress has been made by public and private sectors in the development of
hybrids in several vegetable crops. The reason for success of private sector lies in its flexibility to
meet changing demands, efficiency in adjusting seed costs, concentration on high value low volume
vegetables and distribution near the door of farmer.
Table 10: Estimated vegetable F1 hybrid seed requirement
Vegetable F1 hybrid seed requirement (MT)
Okra 1700
Gourds 800
Watermelon 130
Cabbage/Cauliflower 110
Tomato 90
Chillies 80
Brinjal 75
Cucumber 30
Capsicum 4
99
Other melons 20
(Vegetables in bold show the focus vegetables for Sakata Seeds in India)
Table 11: Estimated Production and acreage under F1 vegetable seed production (domestic
market)
Vegetable Domestic (t) Area (acre)
Tomato 67 1787
Watermelon 120 2400
Chilli 70 933
Okra 1500 15000
Melon 15 250
Brinjal 50 625
Cucumber 40 667
Ridge gourd 50 500
Bitter gourd 100 1000
Bottle Gourd 120 640
(Vegetables in bold show the focus vegetables for Sakata Seeds in India)
The hybrid vegetable seed market in India is estimated to be around US $105 million. During the
decade 1998-2008, there was remarkable increase in the market size of vegetable seeds (194 percent
increase.) Contribution of private sector in vegetable seed industry accounts for 90% of the market
turnover.
F1 hybrid seeds of temperate vegetables are produced in the states of Himachal Pradesh, Jammu &
Kashmir and Uttarakhand. These crops are late cauliflower, cabbage, garden beet, temperate
100
carrot, radish and turnip. Efficiently and economically, the hybrid seeds of these vegetables are
produced mainly by girls in many parts of South India also.
101
14. Concluding Remarks
Agriculture is the mainstay of human civilization. It has taken thousands of years for man to change
his life from hunter-gatherer to a settled agriculturist. Today agriculture provides us with food and
raw materials for multiple industries. Agriculture depends on multiple inputs like seeds, fertilizers
or manures, water, pesticides, etc. Of all these inputs, seeds form the single most basic and
important input on which depend the entire production and productivity.
There have been numerous efforts to improve the quality of seeds and today multiple public and
private sector companies have developed high yielding and hybrid varieties of seeds. Public sector
companies are more focussed on the low value, high volume food crop seeds while the private
sector companies are more focussed on high value, low volume vegetable and fruit seeds. Vegetable
and fruit seeds have undergone tremendous improvement due to private sector investment in both
India and abroad.
Sakata Seeds India Ltd. is one such seed company which has done major research in some
vegetable and fruit crops and developed multiple high yielding and hybrid varieties. Its products
have won gold and silver prizes at the All-America competitions. Sakata Seeds has entered Indian
markets in 2008.
This has been a very opportune time as the Indian hybrid seeds market has matured for the products
being offered by the company. There have been discussions on a second green revolution to provide
nutritional security to Indian population and with this horticulture has received new attention in
India. This has widened the scope for Sakata products in India.
By following right marketing strategies, pricing strategies, market and dealer management, Sakata
Seeds has a very big scope for capturing the ever growing Indian vegetable market share and offer
the Indian population the benefits of its research.
102
Appendix A
1. Changing Agricultural Scenario in India
1.1 National horticulture mission
India is endowed with ideal agro-climatic conditions for growing a variety of horticultural crops. In
order to harness their potential, DAC is implementing national horticulture mission since 2006 in 18
states and 3 Union Territories covering 382 potential districts. The mission endeavours the holistic
development of horticulture sector, duly ensuring forward and backward linkages by adopting
cluster approach, with the active participation of all stakeholders.
Our country is the second largest producer of fruits and vegetables in the world.
1.2 Agricultural Credit (Kisan credit card)
This policy has been providing timely and adequate credit support to farmers with particular focus
on small and marginal farmers and weaker sections of society to enable them to adopt modern
technology and improved agricultural practices for increasing agricultural production and
productivity.
1.3 Agriculture Insurance
To provide financial compensation to the farmers for losses in crop yield due to non-preventable
risks including natural calamities, pests and diseases and adverse weather conditions (El Nino),
Government will soon implement central crop insurance schemes.
1.4 Agriculture Marketing Reforms
These reforms were initiated to ease out restrictive and monopolistic approach of state and 2-3
grades are prescribed for each commodity. Grades help farmers/traders to get prices for agriculture
commodities as per the quality produced by them and consumers get the desired quality. 105
grading and marking rules covering 213 commodities have been notified under the provisions of
agriculture produce (grading and marking) act, 1937.
103
1.5 National Food Security Act, 2013
Food security and insecurity in India:
The national food security act, 2013 (also right to food act) is an act of the parliament of India
which aims to provide subsidized food grains to approximately two thirds of India's 1.2 billion
people. It was signed into law on September 12, 2013, retroactively from July 5, 2013. Under the
provisions of the bill, beneficiaries are to be able to purchase 5 kilograms per eligible person per
month of cereals at the following prices:
Rice at 3 (5.0¢ us) per kg
Wheat at 2 (3.3¢ us) per kg
Coarse grains (millets) at 1 (1.7¢ us) per kg.
Pregnant women, lactating mothers, and certain categories of children are eligible for daily free
meals. The bill has been highly controversial. It was introduced into India's parliament in December
2012, promulgated as a Presidential Ordinance on July 5, 2013, and enacted into law in August
2013.
1.5.1 Salient Features
75% rural and 50% of the urban population are entitled for three years from enactment to five kg
food grains per month at 3 (5.0¢ us), 2 (3.3¢ us), 1 (1.7¢ us) per kg for rice, wheat and coarse
grains (millets), respectively;
The states are responsible for determining eligibility;
Pregnant women and lactating mothers are entitled to a nutritious "take home ration" of 600
calories and a maternity benefit of at least Rs. 6,000 for six months;
Children 6 months to 14 years of age are to receive free hot meals or "take home rations";
The central Government will provide funds to states in case of short supplies of food grains;
The current food grain allocation of the states will be protected by the central Government for at
least six months;
The state Government will provide a food security allowance to the beneficiaries in case of non-
supply of food grains;
The public distribution system is to be reformed;
The eldest woman in the household, 18 years or above, is the head of the household for the
issuance of the ration card;
104
There will be state- and district-level redress mechanisms; and
State food commissions will be formed for implementation and monitoring of the provisions of the
act.
The cost of the implementation is estimated to be $22 billion (1.25 lack crore), approximately at
1.5% of GDP.
The poorest that are covered under the Antodaya Yojna will remain entitled to the 35 kg of grains
allotted to them under the mentioned scheme.
The commission concluded that the total bill for implementation of the bill "....may touch an
expenditure of anywhere between Rs 125,000 to 150,000 crores," i.e., 1.25 to 1.5 trillion rupees
1.6 WTO: Indian Stand on Food Security
Emphasising that India supports trade facilitation, prime minister Narendra Modi today told US
president Barack Obama that a solution must be found on its concerns over food security at the
WTO. Modi had an "open discussion" on WTO (world trade organisation) issue with Obama during
their summit talks where a host of other topics including economy were also discussed. "We had an
open discussion on WTO issue. We support trade facilitation but a solution that takes care of our
food security must be found," the prime minister said, adding, "I am sure that it is possible to do that
early".
India took a tough stand over food security issue at the WTO Geneva talks in July, 2014. The
country refused to ratify WTO's trade facilitation agreement (TFA), which is dear to the developed
world, without any concrete movement in finding a permanent solution to its public food stock-
holding issue for food security purposes. It has asked WTO to amend the norms for calculating agro
subsidies in order to procure food grains from farmers at minimum support price and sell that to
poor at cheaper rates.
The current WTO norms limit the value of food subsidies at 10 per cent of the total value of food
grain production. However, the support is calculated at the prices that are over two decades
old. India is seeking a change in the base year (current value 1986-88) for calculating the food
subsidies. It wants the change to a more current base year on account of various factors such as
inflation and currency movements. There are apprehensions that once India completely implements
its food security programme, it could breach the 10 per cent cap. Breach of the cap may lead to
imposition of hefty penalties, if a member country drags India to the WTO.
105
2. Climate Change and Variability
2.1 Climate Change
Any permanent change in weather phenomena from the normal of a long period average is referred
as Climate change e.g., the global temperature has increased by 2.0–3.0°c and increase in CO2 from
180 ppm to 350 ppm. The earth’s atmosphere has never been free of change (in its composition,
temperature, self-cleaning ability). Due to change in atmosphere, the world is warming, climatic
zones are shifting; glaciers are melting and sea level is rising.
2.2 Climate Variability
Climate Variability are the temporal changes in weather phenomena which are part of general
circulation of atmosphere and occur on a yearly basis on a global scale.
Climate change and climate variability are the concern of human kind in recent decades all over the
world. The recurrent drought and desertification seriously threaten the livelihood of over 1–2 billion
people who depend on the land for most of their needs. The weather related disasters viz. drought
and floods, ice storms, dust storms, landslides, thunder clouds associated with lightening and forest
fires are uncommon over one or other region of the world.
The year 1998 was one of the recent weather related disaster year, which caused hurricane house in
Central America and floods in china, India and Bangladesh. Canada and New England in the U.S.
suffered heavily due to ice storm in January while Turkey, Argentina and Paraguay with floods in
June 1998. Vast fires in Siberia burned over three million acres of forests. Human and crop losses
are the worst phenomena in such weather disasters, affecting global economy to a considerable
extent. In 2004, nobody can forget the tsunami problem in Indonesia, India, Sri Lanka and other
Asian countries.
The 1997-98 el-Nino events, the strongest of the last century is estimated to have affected 110
million people and cost the global economy nearly US $100 billion. Statistics compiled from
insurance companies for the period 1950-1999 show that major natural catastrophes that are mainly
weather and climate related caused estimated economic losses of US $960 billion. Most of the
losses were recorded in recent decades.
Increase in aerosols due to emission of green house gases including black carbon and
chlorofluorocarbons (cfcs), ozone depletion, Uv-b filtered radiation, cold and heat waves, global
106
cooling and warming and “human hand” in the form of deforestation and loss of wetlands in the
process of imbalanced development for betterment of human kind may be caused factors for climate
variability and climate change.
2.3 Causes of Climatic Variability
2.3.1 External Causes
• Solar output: An increase in solar output by 0.3% when compared to 1650–1700 A.D.
data.
• Orbital variation: 1. Earth orbit varies from almost a complete circle to marked ellipse
(eccentricity). 2. Wobble of earth’s axis (precession of equinox). Tilt of the earth’s axis of
rotation relative to the plane of the orbit varies between 21.8º and 24.4º.
2.3.2 Internal Causes
• Changes in the atmospheric composition-change in the green house gases especially CO2
• Land surface changes particularly the afforestation and deforestation
• The internal dynamics of southern oscillation–changes in the sea surface temperature in
western tropical pacific (el-Niño/la-Nina) coupled with southern oscillation index, Tahiti
minus Darwin normalized pressure index leading to the ENSO phenomena
• Anthropogenic causes of climate variation in green house gases and aerosols.
2.4 Effects of Climate Change
The increase in concentration of CO2 and other green house gases are expected to increase the
temperature of the earth. Crop production is weather dependant and any change will have major
effects on crop production and productivity. Elevated CO2 and temperature affects the biological
process like respiration, photosynthesis, plant growth, reproduction, water use etc. Depending on the
latitude, the CO2 may either offer beneficial effect or may behave otherwise also.
107
2.4.1 Greenhouse Effect – The theory of “greenhouse effects” was conceived by J.B. Fourler
over a century ago. It was supported by Tindal’s studies on the absorption of heat by gases.
The Swedish svante-arrhenius had calculated in 1896 that there would be a global warming by
3.2-4.0oC due to doubling of CO2 concentration in the atmosphere. This level could be
attained sometime in the next century, due to large industrial emissions and large population;
this has changed the land and increased the use of fossil fuels.
Some gases change the heating rates in the atmosphere. Like one way filter, they allow the energy
from sun to pass through them, but trap the heat that the earth’s surface sends back. This is similar
to what occur in a green house, where the glass on the roof is transparent to solar radiation but
absorbs long wave radiation. Due to this analogy the term “green house effect” has been given.
Increased human activities increase Carbon dioxide, methane, nitrous oxide, chlorofluorocarbons
(cfcs) etc., which lead to increase in temperature and sea level rise. These gases, which are in traces,
cause environmental perturbations (disturbances) such as green house effect (global warming),
stratospheric ozone depletion, acid deposition, smog and corrosion.
2.4.2 Impacts of Green House Effect
Global warming and sea level rise - The green house effect will disturb the climate by changing
rainfall, wind, cloud, ocean currents and the extent of polar ice caps. The global impact of these
changes could be very large.
The first issue and the cause of some major problems in the future, the depletion of the ozone layer,
threatens the inhabitants of earth due to the advent of harmful ultraviolet radiation. The second
issue, Global warming and the plight of Antarctica, involves the melting of polar ice caps
threatening our coastal regions in the future. The third issue, electric cars, may or may not be the
solution to major environmental problems 50 years in the future.
108
Appendix B
1. References
Reference to Manual
1. Agriculture and Food Management in India - FAO
Reference to Conference paper
1. History of Agriculture
Reference to Journal Paper
1. Legislations for Seed Quality Regulation in India
Reference to Text Book
1. Study Material of NIOS on Agriculture.
2. Study Material of NIOS on Interdependence on Agriculture & Industry.
3. Study Material of NIOS on Principles of Agronomy.
4. A textbook of Agronomy – by NewAge Publications
5. Seed Marketing – FAO Corporate Document Repository
Reference to Website
1. National Seed Association of India online magazines for year 2011 and 2012 (nsai.nic.in)
109