ketkar

Ag Biotech - Gaining Critical Mass? Raj Ketkar Director, Mahyco-Monsanto Biotech : 

Ag Biotech - Gaining Critical Mass? Raj Ketkar Director, Mahyco-Monsanto Biotech BioInvest 2007 November 2, 2007

Has India achieved “Critical Mass” in Ag Biotech?: 

Has India achieved “Critical Mass” in Ag Biotech? Multiple Technology Providers Industry Support / Ancillaries Government & Regulatory Support Investment Bankers / VCs Academia / Universities Crop Focus

Slide3: 

Source: ISAAA Ag BIOTECH CLEARLY GAINED CRITICAL MASS IN US / NORTH AMERICA LAT AM / ASIA – GROWING ACCEPTANCE, TO GAIN CRITICAL MASS EU – EMERGING ACCEPTANCE

Agriculture & Indian Economy: 

Agriculture & Indian Economy Declining contribution to GDP Inconsistent and low growth rate Currently accounts for 18.5 of GDP Employs 58% of country’s workforce Accounts for 10.95% of exports 46% of Geographical area is utilized for agriculture

Cotton is the only exception to stagnant crop yields: 

Cotton is the only exception to stagnant crop yields kg/acre CAGR % (0.6%) (0.4%) 1.5% 4.2% 12.8% Source: Ministry of Agriculture, Agricultural Statistics 2006-07 World average 1,125 1,368 1,603 1,327 293 Other than wheat, India is nowhere near world average Seed replacement rates are low Wheat Rice Corn Soybean Cotton BG launch

Slide6: 

“Growth in agriculture is less than 2%. If we have to achieve our ambitions of growing at a rapid pace of over 8%, we must aim at an agricultural growth rate of over 4%.” “Hope that progress of agriculture through use of modern science & technology will spread to every nook and corner of the country.” Dr. Manmohan Singh – Hon’ble Prime Minister

India’s Priority – Food Security Crops: 

India’s Priority – Food Security Crops Wheat Rice Oilseeds Pulses Rice is the only crop with some progress in Ag Biotech

Cotton is only crop with approved Ag Biotech Traits: 

Cotton is only crop with approved Ag Biotech Traits Approved / Commercial Technology Bollgard - India’s first & only biotech crop (2002) Bollgard II – Two gene superior technology (2006) Near Approvals – by 2010 Bt Brinjal, RR Corn, Mustard, Potato, Okra, Rice Future Pipeline 23 crops, involving 67 GE traits, in different stages of development Public sector involved in development of 39 GE traits

Potential of Ag Biotech in India: 

Potential of Ag Biotech in India

Gaining Critical Mass – Ag Biotech – Current India Environment : 

Gaining Critical Mass – Ag Biotech – Current India Environment Multiple Technology Providers Monsanto, JK, Nath, Metahelix, Mahyco, Syngenta Partnerships Mahyco-Monsanto Biotech (MMB), 23 Sub-licensees Public & Private Insts. GMO Research 22 Public - CICR, IARI, ICRISAT, JNU, PAU, TERI, TNAU, UAS & other Ag Univs 10 Private - Ankur, IAHS, Mahyco, Proagro, Syngenta

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Govt. & Regulatory Support “The development of several GM food crops is on the anvil to catapult India towards an evergreen revolution.“ Kapil Sibal, Union Minister for Science & Technology

Slide12: 

CASE STUDY – BOLLGARD / BOLLGARD II

India’s cotton production has doubled in the last 6 years - outlook remains positive: 

India’s cotton production has doubled in the last 6 years - outlook remains positive Production – M bales* Area – M acres Yield – kg/acre Source: Cotton Corporation of India * 1 bale = 170 kgs Transitioned to a net exporter Government and media acknowledge technology contribution Positive outlook Growth in domestic demand at 6 to 7% Textile industry targeting exports of US$ 50B by 2010 (US$ 17B in 2006-07)

Slide14: 

“Replicate Bt cotton success in food crops”– Finance Minister

Bollgard area doubled in 2007: 

Bollgard area doubled in 2007 M acres 39% 56% 89% 73% 1.5 M BG penetration 2007 Cotton acreage 3.4 M 6.8 M 3.3 M In six years, Bt cotton covers 75% of cotton acres in India

Farmers Benefit – Bollgard (Bt) Cotton : 

Farmers Benefit – Bollgard (Bt) Cotton Increased Farmer Wealth Rs. 7757 (162%) higher Profits for BT farmers vs. conventional

Farmers’ Families Benefit – Bollgard (Bt) Cotton : 

Farmers’ Families Benefit – Bollgard (Bt) Cotton Socio Economic Benefits – Indicus Analytics Bt villages are ahead vs. NonBt in terms of presence of permanent markets (44% vs. 35%) shops (24% vs. 18%) banking system (34% vs. 28%) Bt farming positively impacted women & children members of Bt household Larger % women avail of maternal services (antenatal checkups & trained assistance at birth) Greater vaccination levels among Bt household children

Indian Economy Benefits – Bollgard (Bt) Cotton : 

Indian Economy Benefits – Bollgard (Bt) Cotton Rs. 7039 cr. Addl. Income to Economy Increased Rural Employment, optimal Utilization of Infrastructure (Ginning, Yarn Manufacturing, Transportation) Renewed Investments by Ag Industry E.g. Rasi invested in ginning facilities Growing Exports – Raw & Finished Goods

Has India achieved “Critical Mass” in Ag Biotech?: 

Has India achieved “Critical Mass” in Ag Biotech? Multiple Technology Providers Industry Support / Ancillaries Government & Regulatory Support Investment Bankers / VCs Academia / Universities Crop Focus

A World of Biotechnology Benefits: 

2015 2005 New Traits Better Foods Greater Benefits A World of Biotechnology Benefits Global Food Production Current Food Production More Food Less Pesticide Enhanced Taste Increased Nutrition Improved Health …the quality of our food Biotechnology continues to improve… 1996

Thank-you: 

Thank-you

Greater Yield Results from Good Seeds & Good Technology : 

Greater Yield Results from Good Seeds & Good Technology SEED (GENETIC GAIN) The starting point of all agriculture; farmers need to maximize ‘genetics’ in seed for yield TECHNOLOGY (% OF GENETIC GAIN PRESERVED) Technology is used to protect & maximize the yield potential of the seed MAXIMUM YIELD POTENTIAL The basic equation represents the maximum yield potential multiplied by the percent of that yield preserved by technology = + CONVENTIONAL BREEDING & MARKER ASSISTED BREEDING TODAY INSECT PROTECTION & HERBICIDE TOLERANCE NEAR FUTURE: DROUGHT TOLERANCE INTRINSIC YIELD FUTURE: NITROGEN USE EFFICIENCY NUTRITIONAL IMPROVEMENTS

Bollgard technology has driven the change: 

Bollgard technology has driven the change Post 2004: Rapid Technology acceptance demonstrates its contribution to Cotton Productivity Our Technology now touches 80% of hybrid cotton farmers of India (Appx. 4 M farmers)

50% higher Avg. Yield (quintal/acre) in Bollgard: 

50% higher Avg. Yield (quintal/acre) in Bollgard All Base: 5900 Farmers BG II farmers have reported the highest yield of 11.38 quintals / acre while BG farmers have reported 10.33. Quintals / Acre Source: Based on IMRB International Market Research, 2007

Slide25: 

Bollgard Cotton Farmers : Higher Yield, Higher Profits Rs. / Acre The net profit for a Bollgard farmer stands at Rs.12410 per acre. Technology Incremental benefit over Hybrid Users : Rs 6727 per AC Incremental > Rs 6000 crore income for cotton farmers in India Net Value = Gross value generated – Total Cost of cultivation including the seed cost Source: IMRB Study, 2006- 9 states, 4779 Farmers.

Biotech & Seeds can improve Rural Income: 

Biotech & Seeds can improve Rural Income Introduction of high yielding genetics in all crops have demonstrated higher yields Green revolution in 70’s Hybrid adoption in vegetables Yield losses due to biotic and abiotic stress can be reduced by adopting Agricultural biotechnology Bt/Bollgard cotton Yieldgard (Bt), Roundup Ready Corn