The Hindu Business Line : Seed industry divided over Budget proposals

THE Indian seed industry is divided over the impact of the Union Budget. While a section of the industry feels that the measures announced by the Finance Minister for agriculture and food-processing sectors would accelerate its growth, the other section feels the impact would be minimal because of the absence of proper linkages and infrastructure.

Mr K. Suresh, Chief Financial Officer and Company Secretary, Advanta India Ltd said the Finance Minister's speech on providing superior seed technology with appropriate price support for oilseed growers should result in increased sales for the seed companies.

The sops announced to the agro-processing industry and the call on State Governments to amend the agri-produce marketing rules and facilitate contract farming, would have a chain reaction and indirectly benefit the seed industry, he added.

However, Mr Arvind Kapur, Managing Director, Nunhems Seeds Pvt Ltd said the seed industry is unlikely to benefit from the measures announced for the agro and food processing sector unless the Government establishes proper linkages and brings changes to the laws governing the sector.

The Government's proposal to set up a National Horticulture Mission may not have any significant impact on the sector. "We already have agencies like National Horticulture Board and Agricultural and Processed Food Products Exports Developments Authority among others. But the forward linkages are still missing. Unless the Government sets up forward linkages, delivery mechanisms by creating the right kind of infrastructure, these new measures are unlikely to benefit the industry," Mr Kapur added.