Emerging issues in seed quality regulations:

Cotton production—an Understanding:
Climatic condition and fluctuation in yield
Cotton seed production planning before the actual sales season—planning & execution—a bit on approximations.
Procurement price war—no any understanding amongst industry players.
Organizers are dictating the terms & conditions—No germ clause and demand for relaxation in GP. Earlier practices of physical grading are missing—by farmers as they supply gin seed basis.
Over & above —demand of increased advances that too without interests.
All risks—over production & less production—on company heads.
Challenges:
Technical staff wants high color office jobs—trained well educated field staff are missing.
Facing of poaching for high demand germ plasm—price war amongst company; till arrival at plant—no prediction of volume !!!
Farmers, Organizers and political pressure in case of yield loss even due to climatic havoc and late sown acreage
Company faced—”Survival of fittest” without getting margin and stay in race.
More over—Price cap by Govt regulations on MRP—increased procurement price but restriction on selling price.
New entrants with new products—big problem as compare to established player.
Big organizers concept—Dictating the terms & conditions and getting benefits of — “Un-unified industry player” and Big organizers producing popular hybrids on their own and handling demand & supply situation.
Corn seed production:
Year-2023-24 Rabi production:
Volume target cum acreage increases by most of the company
Biggest price war –increase of procurement rate to capture acreage by 25-30%
To achieve target—increased sowing window and cyclonic rain damages 15-20% acreage—resulted in resowing.
Late sown acreage—comes under high temperature during flowering and resulted into seed setting issues & attracted disease & Pests
Every year farmers preferred to go with palm oil plantations (10-15%) and YOY—increasing trends in Popcorn cultivations—reducing corn seed production.
To secure coming season—every company increases procurement price and settle the price by min. guaranteed income of Rs.60000-70000/-per acres earnings for farmers.
Scenario: 2024-25
Most of the company facing Nil inventory and settles the last year yield loss issues with organizers & Farmers.
As an indications—every company planning 20-30% increased acreage compare to last year and Horse trading started in terms of procurement rate, areas finalization, Big organizers meeting in advance
Organizers are in dictating positions and asking for guaranteed income commitments for farmers.
Risk of new locations production and more dependency on Eluru, Khammam and Rajahmundry.
Hy. Paddy seed production scenario-2024-25
Scenario: 2023-24:
Faced the short supply and whatever produced—Nil inventory for seed company.
Major producing areas; Karimnagar & Warangal—being election year and hoping for incentives on MSP—farmers were in wait & watch mood-which delayed in nursery.
Extended sowing window to get acreage—results in low yield and high temperature during flowering played havoc in terms of yield loss.
End up with compensations demand and most of the company forced to do so to get coming season acreage.
With increase price at the time of sowing and further compensations reducing the margin for the company
Scenario looks alike & Challenges: 2024-25
Starts with nil inventory and bigger volume target– challenges to feed early market supply for Punjab, Haryana & UP
Last year, company started locations like Orissa, Dhamtari(Raipur) and different different location other than traditional belt of Warangal & Karimnagar.
Late sown acreage got heavy loss in terms of yield and no good mood scenarios for farmers.
Increased MSP with state Govt bonus declaration and no risk of seed setting in commercial—farmers will pursue for min.guaranteed demand for hy. paddy seed production.
Price war within company will be a big challenges in coming season
A big segment of Basmati paddy—increasing day by day for hybrid seed production-Biggest concern are—low yield if window missed.
Industry scenarios and How to face the issues?
Individual company declaring their own terms & condition and procurement rate—no any discussion unitedly –NSAI must take initiative for one procurement crop wise. Big player crop wise must be the part of discussion and set the guidelines.
One guidelines for Germ & GP and jointly declare the same
Monthly or quarterly meeting of seed company decision makers—before and during cropping season. Transparency in procurement rate hybrid wise and terms & conditions for quality produce.
Jointly represent for price cap especially for cotton.
Keep farmers interests intact for Hybrid seed production and come out with min. supports keeping in mind commercial earnings.
This includes field crops and vegetable crops.
Dr Sanjeev Nayan
Head-Production (SCM)
JK Agrigenetics Ltd, Hyderabad
Source – [email protected]