Increasing demand for Hybrid Seeds resulting in growth of Vegetable seeds Market
The increasing demand for hybrid seeds is the other primary driver for market growth worldwide. According to ICRA, the key to improve the adoption of hybrid seeds lies in ensuring the availability of quality seeds, bridging the awareness gap in farmers regarding better techniques, and developing supportive infrastructure. Vegetable seeds market growth is supposed to be driven by increased use of hybrid seeds. The number of hectares under biotech crop production increased from 179.7 million in 2015 to about 185.1 million in 2016 as per ICRA.
The increasing awareness of vegetables' consumption to meet diverse dietary and nutritional needs has caused a rise in vegetables' demand. Among all the vegetable seeds, cabbage (100%) and tomato (99.3%) account for the highest seed replacement rate. Currently, only 20% of the farmers' seeds are of good quality, whereas the remaining 75% of demand is catered to by the saved sources of farmers from the earlier season.
Globally, investments in research and development are increasing to develop hybrid seeds. For instance, The seed industry in the Philippines has been characterized by significant investment in research and development (R&D) to develop roots with improved genetic traits and better pest resistance. Rising government support in the country owing to the increasing demand for crops from the rising population. The government has taken various initiatives to encourage farmers to use hybrid seeds for multiple harvests.
One of the most important developments will be the increased demand for quality vegetable and fruit products because of the increased consumer awareness and increase in disposable income of the population. As a result of this, the trend of protected cultivation will increase worldwide. One more expected change that the seed industry is going to witness is in the form of increased demand for fruits and vegetable varieties with higher nutritional values.
An increase in seed replacement rate is the other significant opportunity for the growth of the market.
A better seed replacement rate shows a better utilization of the Certified / Quality Seeds. Since certified seeds are better in productivity, the Seed Replacement Rate is directly proportional to productivity. Thus, the higher the Seed Replacement Ratio, the higher is production and productivity, and higher are chances of achieving nutritional security, food security, and food price inflation.
The health crisis revolving around the COVID19 pandemic has affected all the industries. While many businesses are still coping with losses, the global agriculture sector is likely to suffer a huge impact. With the rising pandemic, the import/export of seeds has been affected severely concerning the agricultural season. This is because of the increasing gap between demand and supply. As the pandemic has impacted the developed countries more, the response strategies would be more centered for those nations than the developing ones. Therefore high-value seeds have experienced a larger demand-supply gap, especially the European vegetable and fruit varieties.
In India, During rabi season in India, harvests like wheat, gram, lentil, mustard, and so forth are at a harvestable stage or almost at development. With the requirement of seed estimated at 310 lakh quintals for the next agricultural season, farmers across the country look up to the Government to ensure uninterrupted harvesting of the crops as well as smooth procurement operations. As the lockdown coincided with the harvesting season, it has impacted both the seed and ancillary industries, including the delays in the transport of seed produced in other states.
Most companies in all regions, especially in Asia-Pacific and Europe, continue to negatively affect the demand and sale of sowing seed for all crops because of the COVID-19 pandemic. There is a huge impact of lockdowns on companies' every aspect. This includes difficulties in obtaining inputs and labor for their seed farms and factories, and difficulties in moving seed within and across national borders. For instance, many companies reduced the number of staff at their factories to comply with social distancing guidelines and introduced staggered work shifts.
Additionally, the constraints include getting customs clearance, export permits, import permits, and phytosanitary certificates. This is often because of reduced staffing of government offices, which causes delays. In many countries, national seed associations have worked closely with government agencies to resolve these problems, which may have helped to relax these bottlenecks. For instance, some have reported that government agencies accept electronic copies of documents instead of originals.
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