Market Trends of china rice seed Industry
Rice was second-largest crop cultivated driven by the government's support and the high per capita consumption rate
- China is one of the major rice-producing countries in Asia-Pacific. In 2022, it accounted for 21.3% of the of the region's rice cultivation area. The higher share is due to the higher consumption demand in the country, as it is a staple food crop. In 2022, China accounted for 30.4 million hectares under rice cultivation, which increased by 1.6% when compared to 2019. The area showed a decline in 2019 compared to the previous three years due to a shift in the corn area, driven by a rise in corn prices and demand in the international market. Hunan Province has the largest rice planting area in the country, with a total of 4.1 million hectares.
- Rice is China's most important food crop, and it is highly dependent on irrigation. However, an increasing number of extreme drought events have challenged rice production in many regions, resulting in a decreased harvest area. For instance, the harvest area decreased from 30.3 million hectares in 2020 to 30.1 million hectares in 2021.
- Domestic rice prices remained stable and are expected to continue to increase more than international rice prices, especially after the government increased rice procurement prices in 2022. The price will be USD 392 per metric ton for early Indica rice, up by USD 6.3 per ton from 2021, and USD 413 per ton for Japonica rice, up USD 3.1 per ton from 2021. The increase in the MSP of rice farmers is expected to increase the sowing area, thereby increasing the growth of commercial seeds.
- The transgenic rice is anticipated to increase because of the increasing acceptance of technology by farmers in the country. The acreage of transgenic rice seed has been expanding in recent years because farmers are getting higher crop yields and reduced pesticide use.
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Disease-resistant traits are preferred by rice producers in China, primarily due to the prevalence of diseases such as rice blast and bacterial blight in rice fields
- Rice production in China has grown increasingly during the past few decades, which is mainly due to increased yields of grain rather than increased planting areas across China. Due to the availability of high-yielding traits, production and productivity were enhanced largely in the country.
- Disease resistance is the most popular trait, while others, such as drought tolerance, insect resistance, moisture stress, wider availability, and effective tillers with panicles, are also cultivated in the country. In China, the major disease-resistant traits that are popularly used by seed companies are resistance to bacterial blight, brown plant hoppers, rice blasts, and heat resistance at the heading stage, as they lead to heavy yield loss. Furthermore, insect resistance traits, especially toward brown plant hoppers, and disease resistance toward rice blast disease and bacterial leaf blight are in high demand and largely cultivated by farmers. Companies such as Yuan Long-Ping Hi-tech companies, Win-All High-Tech, and Beidahuang Kenfeng Seed Co. Ltd are actively involved in breeding these rice varieties in the country.
- Drought tolerance is one of the major traits produced by seed companies as there have been changes in the climatic conditions, which has led to a high demand for this seed variety by growers. For instance, in 2022, China suffered drier conditions than normal rainfall conditions, which is expected to help increase the demand for drought-tolerant seed varieties.
- The demand for rice seeds with improved traits is increasing as farmers are turning toward sustainable agriculture. Therefore, it is anticipated that the market for seeds with improved traits will witness a positive trend during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Transgenic breeding dominated the market because it increased opportunities for genetic improvement of rice and reduced the damage from pests
