Reports suggest that the seed industry has agreed to a 10 percent price cut on all hybrid seeds except cotton. This is effective from today, and is for the kharif season that is currently underway.
In an interview to CNBC-TV18, G Vijay Kumar, CFO of Kaveri Seed Company discuss the impact on the company. He said the price cut will impact 2-3 percent revenues in the non-cotton seeed business. The price cut is also a part of corporate social responsibility towards the farmers who have struggled for the past three years, he added.
The industry is agreed to go for 10 percent price cut on non-cotton hybrid seed. 75 percent of the business for Kaveri Seed Company comes from cotton seed and 25 percent from non-cotton seed business out of which 50 percent business is over, he said.
Sales from vegetable business are expected to be around Rs 25 crore in FY18, which is a relatively new business. Maize is a big portion of revenues which will be around 23 percent of revenues this year, he said.For full discussion, watch video...