India seed industry will continue to grow in double digits

India seed industry is expected to continue to grow at double-digit rate over the medium term on improvement in seed replacement ratio (SRR) and farmers opting for improved varieties of hybrid seeds, ratings agency ICRA (Investment Information and Credit Rating Agency of India)has said.

 

The favourable policy environment aimed at supporting the usage of seeds through National Seeds Plan  and boosting agricultural productivity through National Food Security Mission  augurs well for the industry, ICRA said in a statement.

 

India seeds industry has grown at a CAGR of 8.4% in volume terms during 2008-09 to 2014-15 to reach 3.5 MT in consumption. “ICRA expects the domestic seed sector to continue its current pace of growth at early double-digit rate over the medium term. 

 

This is largely driven by improving SRR and increasing adoption of improved varieties of hybrid seeds,” it added.“As improving the level of mechanisation and ensuring adequate irrigation infrastructure is a long drawn process and challenging due to fragmented land holdings, ICRA believes that ensuring better quality seeds to farmers is a relatively low-hanging fruit to boost the yields,” ICRA senior vice-president Sabyasachi Majumdar said.