Determinants and Valuation of Plant Variety Protection in India

Abstract

Plant variety protection (PVP) is a recent phenomenon in the developing countries, and adequate evidence on the response of the seed industry to this policy change is lacking. This paper examines the trends in PVP in India and economic benefits accruing to the breeders. The results showed a significant growth in PVP, attracting participation of both the public and private sectors. However, there is some degree of crop segmentation with private sector mostly concentrated on vegetables and cotton and the public sector on food grains. Furthermore, 55 per cent of the applications from private sector were for new varieties, whereas 85 per cent of the public sector applications were for the extant varieties. The results of the logit model revealed that yield, adaptability, institute origin and variety traits were the major factors which influenced the PVP decisions. The hedonic pricing model indicated a price premium of 11-15 per cent for seeds of the protected varieties. The initial impact on other aspects of the seed system like growth in varietal development and public-private partnerships was also positive.