Govt mulls private participation in seed processing sector

The coming days may see greater participation of private companies in the domestic seed business.

In a report submitted to the prime minister, the working group on agriculture production, headed by the chief minister of Haryana, has recommended public-private partnership for production of seeds, setting up of processing facilities and a complete revamp of state seed corporations. These suggestions could form a part of the National Seed Plan and the Seeds Bill 2004, which was awaiting enactment, officials said.

So far, the private sector has been quite active in the manufacturing of seeds, especially the hybrid variety. But, their participation in the seed processing segment was needed in order to improve the seed replacement ratio (SRR), officials said. SRR is the ability of the seed to improve yield of a crop used more than once.

 

The report is of the view that seed processing facilities could be created in state seed corporations, agriculture universities and private seed agencies, with the help of Rural Krishi Vikas Yojana ( RKVY) funds. In this regard, the National Seed Corporation and the State Seed Farms Corporation are likely to set up processing facilities with the help of private sector companies.

For production and supply of seeds, the report has recommended state seed corporation and private corporate/co-operatives of farmers to enter into long-term contracts.

The report has been categorical in suggesting either a large-scale revamp and restructuring of public sector seed-producing undertakings, or closure of these to allow alternative mechanisms to grow. “Restructuring and streamlining the public sector seed-producing undertakings is required for product diversification/upgradation and for improving governance, core competence and competitiveness,” the report said.

The restructuring, if approved by the government, will involve addressing issues of undesirable equity/board structure, poor professional management and heavy work load.

The report has also suggested that capital assets of the state seed firms can be optimally utilised if state farms and farmers partner with each other to produce certified seeds. While sates can procure the foundation seed and provide the land, actual seed multiplication can be entrusted to farmers under contractual arrangements, with assured price and purchase. Farmers could be selected under a bidding arrangement on annual basis, or for a short-period of two to three years.

“This will enhance productivity of state seed farms manifold without forcing the state farms management to work with temporarily- or casually-employed farmers,” the report said.