Evolution of Seeds Commerce: Deregulation, Technology, and Local Practices

Abstract

This paper captures the evolution of seeds commerce in India, a traditionally agrarian economy. It also captures some exciting aspects of industry evolution of one of the top seeds market in the world (given its size). Following a review of the industry in India over the last few decades one observes that the deregulation of seeds commerce has been influenced not only by the progressive liberalization of the Indian economy but also by the development of science and technology in the private sector, both locally and globally. This has resulted in the seeds market in India becoming highly competitive by attracting a large number of players.

The discussion also captures another interesting facet – that the norms and regulations of the industry and the way it develops can be severely influenced not only by the (large) private business players but also by the dispersed (and seemingly) powerless farming community! The existing farmer’s rights gives a free hand to farmers to multiply, exchange, sell and use any proprietary (seed) variety. The local practices especially of seed organizers also make the life of the rules setter (i.e., the state) very difficult. Perhaps, one can observe that seeds commerce in India has grown beyond the control of the state and its bureaucracy.

Keywords: Agriculture, Deregulation, Farm Input Markets, Industry Evolution, India, Local Practices, Seeds, and Technology

JEL Classification: N55, L70, O13, O34, Q12