Business Potential for Agricultural Biotechnology - Asian Productivity ...

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Summary of Findings
stantially with greater demands for quality produce free from pesticides and other toxic residues
amidst growing public concern about sustainability. Excessive and indiscriminate use of agrochemicals
resulting deteriorating soil health has led to reduced profitability from agriculture in
spite of the development of high-yielding varieties and superior agrotechnologies. The gaps between
expected and actual yields from best agropractices continue to widen, forcing farmers
towards urbanization. The major causes are deterioration in soil structure and texture, deficiency
in soil micro-flora and -fauna, and nutritional imbalances. Emphasis is now being placed on
overcoming this situation by managing nutritional and biological stresses through organic, cultural,
and biological means. Here biofertilizers and biopesticides may play a significant role.
The area under organic cultivation has increased substantially and is presently estimated to
be more than 100,000 hectares (certified); it is expected to expand at a faster rate in the coming
years. This will require biological sources as nutritional and pesticide input supplements, and
thus there will be a significant demand for biofertilizer and biopesticide products. In 1983, 100
metric tons of biofertilizer was produced in India; by 2002–03 production had increased almost
100-fold, to 90,000 metric tons. Currently there are 126 biofertilizer units engaged in biofertilizer
production, and the government has extended financial assistance to 73 biofertilizer units for
commercial production. The use of biopesticides and biocontrol agents in India is on the increase,
but not to the desired level of growth, although presently a decrease in chemical pesticide consumption
is indicated. Many small entrepreneurs are developing biopesticides and biocontrol
agent products, but many of them have little quality consciousness. Success stories of biopesticides
in India include control of diamondback moths by Bacillus thuringiensis, control of
mango hoppers, mealy bugs, and coffee pod borers by Beauveria, control of Helicoverpa on
cotton, pigeon-pea, and tomato by Bacillus thuringiensi, control of white fly on cotton by neem
products, control of sugarcane borers by Trichogramma, and control of rots and wilts in various
crops by Trichoderma-based products.
There is a large market potential for biofertilizer and biopesticide products that can only be
tapped through a better understanding of rural markets and product/marketing constraints. To
achieve these objectives, an extensive research and development effort in areas pertaining to
production, quality assurance, field application, and knowledge transmission of biocontrol products
is of great importance.
Potential for Agribiotechnology Products in India
The estimated size of the Indian biotech industry is over INR2,305 billion. Specific advantages
include low operational costs, low-cost technologies, a skilled human resource base, a
large network of research labs, and an abundance of raw materials in the form of plant, animal,
and human genetic diversity. Biotechnology as a business segment for India has the potential of
generating USD5 billion in revenues and creating one million jobs through products and services
by 2010. Biopharmaceuticals alone have the potential to be a USD2 billion market opportunity,
largely driven by vaccines and biogenerics. Clinical development services can generate in excess
of USD1.5 billion, while bioservices or outsourced research services can garner a market of
USD1 billion over this time period. The balance of USD500 million is attributable to agricultural
and industrial biotechnology.
India has a strong pool of scientists and engineers, vast institutional networks, and costeffective
manufacturing. There are over a hundred national research laboratories employing
thousands of scientists. There are more than 300 college-level educational and training institutes
across the country offering degrees and diplomas in biotechnology, bioinformatics, and the biological
sciences, producing nearly 500,000 students on an annual basis. About 300,000 postgraduates
and 1,500 Ph.D.s qualify in biosciences and engineering each year.
The National Science and Technology Policy and the Vision Statement on Biotechnology
issued by the Department of Biotechnology have mandated significant interventions in the
public and private sectors to foster life sciences and biotechnology. There has been substantial