Factors influencing the development of the micropropagation industry: The experience in India

Micropropagation industry was identified as a priority area by the Government of India. More than 50 commercial laboratories were set up between 1987 and 1995, with a total installed capacity of 210 million plants per annum. It was seen that from 1986 - 1989 the targets achieved were 50 % of the installed capacity. In 1991, there was a decline and only 20 % of target was achieved. In 1996, there was a drastic reduction in the number of plants produced with regard to an increase in the number of units. Only a mere 7 % of the targeted volume was produced. The percentage increase in production decreased by 50 percent from 1991 to 1994 and in 1998 there was a negative percentage showing rapid decline. This was due to overestimation of the market, large size of the laboratories, narrow product range, rapid turnover of the employees, sharp increase in the wages, decline in the per unit sale price and poor human resource management.