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The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options

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  • Spielman, David J.
  • Kolady, Deepthi
  • Cavalieri, Anthony
  • Chandrasekhara Rao, N.

Abstract

Since the late 1980s, technological advances and policy reforms have opened up new opportunities for growth in India's seed and agricultural biotechnology industries. The impacts of such changes have been significant in India's cotton sector, but less so for the country's main cereal crops, where both yield and output growth rates have been relatively stagnant. Some public policymakers and corporate decisionmakers are confident that the private sector will help reverse these trends, arguing that the right combination of new technological solutions and progressive policy reforms will unleash a significant increase in private investment in productivity-enhancing products and services. The structure of India's seed and agbiotech industries, as well as the policies designed to support their growth, will be a significant determinant of this expected impact. This paper examines the structure of India's cereal seed and agbiotech industries, its potential effects on innovation and social welfare, and the policies that may improve both industry performance and the delivery of new technologies to resource-poor, small-scale farmers in India's cereal production systems. We focus our analysis on indicators and scenarios within India's agricultural innovation market for improved seed and agricultural biotechnology products. This market includes firms engaged in the development, commercialization, and marketing of new seed-based technologies; it is characterized by a high level of knowledge intensity, relatively high levels of R&D investment, significant barriers to entry, significant levels of regulation, and relatively few products in the market. And it is within this market that factors such as strategic corporate behavior and public policy can affect the balance between a socially desirable rate of innovation, on the one hand, and a socially desirable distribution of the gains from innovation among consumers, farmers, and innovators, on the other hand.

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  • Spielman, David J. & Kolady, Deepthi & Cavalieri, Anthony & Chandrasekhara Rao, N., 2011. "The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options," IFPRI discussion papers 1103, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1103
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    Cited by:

    1. Spielman, David J. & Kolady, Deepthi Elizabeth & Ward, Patrick & Ar-Rashid, Harun & Gulati, Kajal, 2012. "Public expenditures, private incentives, and technology adoption: The economics of hybrid rice in South Asia," IFPRI discussion papers 1233, International Food Policy Research Institute (IFPRI).
    2. Rana, Muhammad & Spielman, David J. & Zaidi, Fatima, 2015. "The Architecture of the Pakistani Seed System: A Case of Market-Regulation Dissonance," 2015 Conference, August 9-14, 2015, Milan, Italy 211560, International Association of Agricultural Economists.
    3. Rousselière, Samira & Rousselière, Damien & Ramani, Shyama, 2016. "Innovation Led Alliances: Theory and application to the GM Plant Industry," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235711, Agricultural and Applied Economics Association.
    4. Cai, Ximing & Yang, Yi-Chen E. & Zhao, Jianshi & Ringler, Claudia, 2011. "Can water allocation in the Yellow River basin be improved?: Insights from a multi-agent system model," IFPRI discussion papers 1117, International Food Policy Research Institute (IFPRI).
    5. Heng, Dora, 2015. "Incentives, Institutions and Investment in Private Agricultural Reasearch in Asia," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association.
    6. de Brauw, Alan & Gilligan, Daniel, 2011. "Using the regression discontinuity design with implicit partitions: The impacts of comunidades solidarias rurales on schooling in El Salvador," IFPRI discussion papers 1116, International Food Policy Research Institute (IFPRI).
    7. Orachos Napasintuwong Author-Email : orachos.n@ku.ac.th, 2017. "Development And Concentration Of Maize Seed Market In Thailand," Working Papers 201702, Kasetsart University, Department of Agricultural and Resource Economics.
    8. Spielman, David J. & Kolady, Deepthi E. & Cavalieri, Anthony & Rao, N. Chandrasekhara, 2014. "The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options," Food Policy, Elsevier, vol. 45(C), pages 88-100.
    9. Rashid, Shahidur & Tefera, Nigussie & Minot, Nicholas & Ayele, Gezahegn, 2013. "Fertilizer in Ethiopia: An assessment of policies, value chain, and profitability:," IFPRI discussion papers 1304, International Food Policy Research Institute (IFPRI).
    10. repec:bla:reviec:v:25:y:2017:i:2:p:403-425 is not listed on IDEAS
    11. Prasad, Sanjay K. & Pullabhotla, Hemant & Ganesh-Kumar, A., 2011. "Supply and demand for cereals in Nepal, 2010–2030:," IFPRI discussion papers 1120, International Food Policy Research Institute (IFPRI).
    12. David Laborde & Will Martin & Dominique van der Mensbrugghe, 2017. "Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions," Review of International Economics, Wiley Blackwell, vol. 25(2), pages 403-425, May.
    13. Spielman, David J. & Kennedy, Adam, 2016. "Towards better metrics and policymaking for seed system development: Insights from Asia's seed industry," Agricultural Systems, Elsevier, vol. 147(C), pages 111-122.
    14. Zambrano, Patricia & Maldonado, Jorge H. & Mendoza, Sandra L. & Ruiz, Lorena & Fonseca, Luz Amparo & Cardona, Iván, 2011. "Women cotton farmers: Their perceptions and experiences with transgenic varieties: A case study for Colombia," IFPRI discussion papers 1118, International Food Policy Research Institute (IFPRI).
    15. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Impacts of an early education intervention on students' learning achievement: Evidence from the Philippines," IFPRI discussion papers 1121, International Food Policy Research Institute (IFPRI).
    16. Venkatesh, P. & Sangeetha, V. & Pal, Suresh, 2015. "India’s Experience of Plant Variety Protection: Trends, Determinants and Impact," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 200413, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    17. Klara Fischer & Camilla Eriksson, 2016. "Social Science Studies on European and African Agriculture Compared: Bringing Together Different Strands of Academic Debate on GM Crops," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-17, August.
    18. Spielman, David J. & Smale, Melinda, 2017. "Policy options to accelerate variety change among smallholder farmers in South Asia and Africa South of the Sahara," IFPRI discussion papers 1666, International Food Policy Research Institute (IFPRI).
    19. Krishna, Vijesh V. & Spielman, David J. & Veettil, Prakashan C. & Ghimire, Subash, 2014. "An empirical examination of the dynamics of varietal turnover in Indian wheat:," IFPRI discussion papers 1336, International Food Policy Research Institute (IFPRI).
    20. Glendenning, Claire J. & Asenso-Okyere, Kwadwo & Babu, Suresh C., 2011. "Evaluation of value-added agricultural advisory services: Case study of agriclinics in Southern India," IFPRI discussion papers 1125, International Food Policy Research Institute (IFPRI).
    21. Guiyan Wang & Michel Fok, 2014. "Farmer and Market Interactions in using Biotech Cotton Varieties and Seed. A Case in Northern China," Journal of Development Studies, Taylor & Francis Journals, vol. 50(5), pages 696-714, May.

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