Change In Rules On FDI In Seeds Industry Mooted.

The Rs 5,000-crore Indian seeds market is likely to witness mixed reactions as reports suggest that the government is toying with the idea of ending automatic approval for Foreign Direct Investment (FDI) in seed development, animal husbandry, pisciculture and aquaculture in controlled conditions.

In fact, 100 per cent FDI in the seeds industry has been around for long. Thanks to its introduction in the 1980s, several international giants such as Monsanto, Pioneer Seeds, Limagrain, Syngenta and Bayer Crop Sciences entered the country and established themselves here firmly.

However, with the new move, FDI approvals for seeds and other above-mentioned categories will have to undergo scrutiny from the Foreign Investment Promotion Board (FIPB). Further, companies dealing in genetically modified (GM) seeds have to meet some extra conditions after the approval, these include complying with safety norms, seeking permission from the Genetic Engineering Approval Committee and ensuring that they are operating under controlled conditions. The entire process is conducted under the aegis of the agriculture ministry.

Interestingly, the move is evoking mixed reactions from the industry. While some experts feel that the move will not make any difference as most seed giants are already present in India, others say that it is likely to hamper the keen interest that the world is showing in the country right now.

Source : fnbnews.com