Economic Impacts Of Globalization On Indian Seed Sector and Food security

Abstract

Seed sector in India witnessed rapid changes since liberalization. In 2001, estimated total value of commercial Indian seed market was Rs 4050 crores accounting for 4 per cent of the world seed market. Of this, 98 per cent accounts for domestic and 2 per cent international sales. The total expenditure on seeds by Indian farmer increased sharply from Rs 679 crores in 1990-91 to Rs 2249.5 crores in 1998-99. Quantity of proprietary hybrids in Indian seed market increased from 19.3 thousand tonnes (valued at Rs 95 crores) in 1990-91 to 51.31 thousand tonnes (Rs 636 crores) in 1998-99, whereas quantity of public hybrids plummeted from 59.69 thousand tonnes (Rs 24.65 crores) to 38.70 thousand tonnes (Rs. 245 crores) and quantity of varieties seed purchased by farmers increased from 512.23 thousand tonnes (valued at Rs 460.2 crores) to 774.88 thousand tonnes (Rs 1368.55 crores) between 1990-91 and 1998-99 (Table-1). The hybrid vegetable seed industry in India is estimated at 180 crores rupees. During 2001-02 nearly 16.84 per cent of total area under vegetable was under hybrids seeds. India is the second largest user of hybrid tomato seeds after USA. Cabbage and tomato have largest area under hybrids 40 % and 35 % of their total area respectively.