The India seed treatment market is anticipated to register a CAGR of 6.6 %uring the forecast period 2021-2026.
As a result of the COVID-19 pandemic, there had been a supply chain disruption, due to which the agricultural sector had to face problems, such as labor unavailability, transportation barriers, restriction for market access, and the lack of inventories in some areas. The delays in the transport of seed produced to the other states also resulted in low seed supply for processing and storage. Furthermore, the nationwide lockdown has also impacted the demand for treated seeds for sowing during Kharif 2020. Hence, the market was affected by both the demand and supply side of treated seeds during the initial phase of COVID-19.
The majority of the farmers in the country use microbial species such as trichoderma and chloropyriphos for treating seeds of crops such as rice. For managing the bakanae disease in the basmati rice variety in India, the combination of carbendazim and trichoderma viride is the most preferred seed treatment method. The Indian government has started providing subsidies for the procurement of chemical seed treatment in some of its states, such as Odisha. According to the data from the Government of Odisha, the farmers are receiving subsidy assistance of INR 100 per hectare for the procurement of chemical seed treatment. The provision of subsidies is anticipated to encourage investments in chemical seed treatment in the country.
Key Market Trends
Need For Protection Against Adverse Condtitions
Seed treatment is being increasingly considered by farmers as a mode to protect investments made on good quality seeds due to an increase in regulatory issues relating to fumigation, as well as foliar application of pesticides. Seed diseases and volatile environments are few major challenges faced by the farmers that decrease the crop yield. Therefore, this boosts the demand for seed coatings as coating the seed with pesticides, fertilizers, plant growth regulators, and others helps in accelerating seed performance and germination.
Seed treatment has become a necessity, due to changing trends, as well as 100% seed emergence expectation by growers, even during unfavorable conditions. Top players in the market are focusing on the development of superior quality seeds through modern breeding techniques, thereby increasing the seed cost. Replanting seeds due to poor germination and insect attack is expensive. Moreover, the high cost of labor requirements is associated with overall cost. According to the Food and Agriculture Organization, the area harvested under various crops have shown a very minimal growth since 2016, and hence in order to meet the growing demand, farmers need quality seeds that are well treated to enhance the yield in limited harvested area. Thus, based on the aforementioned factors, the high cost of quality seeds, fluctuating arable land are making seed treatment one of the viable options for enhancing the yield.
Rising Cost of High Quality Seeds
The growth in seed treatment industry is largely fuelled by increasing farm sizes and rising concerns over its quality and safety due to harmful effects of chemicals to environment. Thus, some major drivers of the seed treatment industry are rise in the seed costs, crop rotations getting shorter and greater use of multi-component products. With the decreasing cultivable land area, there arises a need for increasing the produtivity. The farmers adopting organic techniques which have a lower environment impact is encouraging the adoption of seed treatment practices to enhance the productivity. High cost and time involved in bringing genetically-modified crops is driving the seed treatment market.
The India seed treatment market is highly consolidated, with major players holding a majority share of while others account for remaining share in 2020. Bayer Crop Science AG, Syngenta, UPL Limited, BASF SE, Indofill Industrial Limited, and Adama Agricultural Solutions Limited are some of the prominent players who are operating in the market. Major players in the market are expanding their presence to strengthen their operations in the market.
Reasons to Purchase this report:
The market estimate (ME) sheet in Excel format
3 months of analyst support