[SPICY IP] Beejasurs of the Indian seed market

[prakruthip]

A news item in the Economic Times (click here) is all praise for Mahyco, an “an Indian seeds company” for registering two varieties of genetically modified wheat. The seed varieties were registered under the Protection of Plant Varieties and Farmer’s Rights Act (Click here for a detailed exposition on the Act).

The article observes that the entry of Indian players into the market will create competition in a market that is dominated by multinational companies. The multinational companies dominate the 6000 crore market for seeds in India.

The article underscored the need for domestic seed companies to begin registering seed varieties for common vegetables soon. The vegetable seed market is more profitable in comparison to the field crop sector as farmers do not usually save seeds for the next crop. The article notes the presence of over 500 private sector players in the seed industry and research being neglected prior to the entry of multinational players.

Is Mahyco a purely domestic company?

Mahyco-Monsanto joint venture is still fresh in public memory owing to the infamous disaster caused by the failure of Bt Cotton crops in Andhra Pradesh (click for a detailed article and post on the same). The joint venture was formed for the marketing of Bt Cotton hybrid seeds. The formation of the joint venture was followed by the acquisition of a 26 percent stake in Mahyco by Monsanto at a cost of Rs.182 crore in April 1998 (click here for the news item).

The domination of multinational companies thus continues.

Image from here.

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Posted By prakruthip to SPICY IP at 1/13/2010 09:07:00 PM