Page 67 - DMGT509_RURAL MARKETING

Rural Marketing

Notes While the Bt Cotton seeds sales accounted for bulk of this market, bio- pesticides,
biofertilizers and markers accounted for the rest. International Panacea, Multiplex Biotech
and Biotech International were the other major companies in the bio-pesticides and
biofertilizers category. International Panacea reported sales of 21.17 crore in 2005-06
compared to 17 crore in 2004-05, while Multiplex Biotech’s sales stood at 11.7 crore.
Monsanto’s technology is still the dominant Bt technology used in India. Each of the seed
companies paid Monsanto Biotech about 1,200 per packet as royalty and on account of
this fee, Monsanto Biotech’s revenues stood at 391.25 crore. This figure has not been
considered for the industry sizing.

Today, approvals have been given to 16 major seed companies in India i.e. Mahyco (MECH,
MRC), Rasi (RCH), Ankur Seeds (Ankur), Nuziveedu Seed (NSC), JK Seeds (JKCH), Nath
Seeds (NCEH), Ganga Kaveri Seeds (GK), Tulasi Seeds (Tulsi), Ajeet Seeds (ACH), Emergent
Genetics (Brahma), Vikki Agrotech (VICH), Vikram Seeds (VICH), Pravardhan Seeds
(PRCH), Krishidhan (KDCHH), Prabhat (PCH) and Vikram (VICH) seeds.
According to ISAAA, in 2005, six new varieties of Bt cotton hybrids were approved first
time for commercial cultivation in Northern zone. In addition, eight new Bt cotton hybrids
were approved for Central zone and five Bt cotton were approved for Southern zones in
2005. As a result, farmers had more choices to grow Bt cotton hybrids.

India experienced the highest proportional growth for any biotech crop globally in 2005
with Bt cotton cultivation soaring 160 percent according to ISAAA. Around 13,00,000
hectares of cotton land were planted with Bt cotton hybrids by more than one million
farmers in Northern, Central and Southern cotton growing zones in 2005.
The major states growing Bt cotton in 2005 were Maharashtra (ranked first with 590,000
hectares) followed by Andhra Pradesh with 280,000 hectares, Gujarat with 150,000 hectares,
Madhya Pradesh with 145,000 hectares, Northern States with 60,000 hectares, Karnataka
with 30,000 hectares and Tamil Nadu with 25,000 hectares for a national total of 13,00,000
hectares.

The GEAC has approved around 38 new varieties of Bt cotton hybrids for commercial
cultivation in 2006 season in addition to the 20 Bt cotton hybrids approved for sale in 2005.
This brings the total of Bt cotton hybrids to 58.
Interestingly, the GEAC has also approved three new events of biotech cotton in 2006. One
developed by JK Seeds Pvt Ltd containing the Cry 1Ac gene known as (Event 1) sourced
from IIT Kharagpur, India; Second one developed by Nath Seeds Pvt Ltd containing fusion
genes (cry 1Ab and cry Ac) known as (GFM event) sourced from China and, the third
developed by Mahyco containing stacked Cry X (Cry I Ac and Cry 2 Ab) genes (Event
MON 15985 or BG-II) sourced from Monsanto.

Clearly, there has been a surge in the demand for Bt Cotton and now there is a pressure on
Monsanto to bring down the royalty fees from 1200 to 750 per packet. This year would
be another landmark year for Bt cotton in India.
Question
Discuss the basic objective of seed marketing with your recommendations as how the idea
can be developed for the benefit of the farmers.

3.8 Summary

 A Research should be conducted before launching the business.
 The Company should develop a profiler for the rural consumers.

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