Introduction: Why the Draft Seeds Bill Matters Today

India’s agricultural landscape has undergone a dramatic transformation since the enactment of the Seeds Act of 1966, a law written at a time when the seed sector was dominated by the public sector, hybrid varieties were limited, and genetically advanced seeds did not exist. Today, India’s seed industry is valued at more than ₹25,000 crore, private breeders are major contributors, and farmers access thousands of seed varieties for crops across the country. In this context, the draft Seeds Bill—which the government has been attempting to finalise for several years—seeks to modernise the regulatory framework, improve accountability in seed production, enhance quality standards, and provide a legal structure for new technologies.

The Bill, however, has triggered reactions across various stakeholders. Seed companies argue that reforms are long overdue for quality enforcement and sectoral growth. Farmers’ organisations express concerns over possible corporate influence, higher liabilities, and limited farmer protections. At the same time, policymakers see the Bill as a way to ensure better seed quality and improved productivity.

This article provides a comprehensive explainer of what the draft Seeds Bill entails, the industry’s demand for reform, penalties prescribed, farmers’ concerns, and the roles of the Central and State Seed Committees.

What Does the Draft Seeds Bill Entail?

The draft Seeds Bill introduces a wide-ranging overhaul of India’s seed regulation mechanisms. Its core objective is to ensure that only quality seeds—with assured germination, purity, and performance—reach farmers.

1. Mandatory Registration of All Seed Varieties

Under the Bill, all seed varieties sold in India must be registered with the government. This includes:

• Public-sector developed seeds

• Private hybrids

• Imported varieties

• Transgenic seeds (subject to biosafety clearance)

Seed variety registration will require:

• Performance data

• Field trial results

• Germination and purity standards

• Traceability information

Unregistered seeds cannot be sold, and selling them becomes a punishable offence.

2. Seed Certification System Strengthened

While the original Seeds Act allowed voluntary certification, the new Bill emphasizes:

• Accredited seed testing labs

• Third-party seed certification

• Uniform quality standards across states

The intent is to improve consistency and reduce discrepancies in quality testing.

3. Labeling Requirements Made Mandatory

Companies must print accurate details on seed packets, including:

• Germination percentage

• Genetic purity

• Expected performance

• Date of testing and expiry

• Source of seed production

Misleading claims become punishable under the new provisions.

4. Provision for Refunds and Compensation

If seeds fail to perform as per prescribed standards, farmers are entitled to:

• Refund of cost

• Compensation for losses

• Replacement seed

This provision introduces accountability among seed producers and marketers.

5. Regulation of Seed Prices (in Specific Cases)

The Bill allows the government to regulate the price of certain seeds, especially:

• Transgenic seeds

• Hybrid seeds of public importance

• Seeds where price exploitation is reported

This clause has been welcomed by farmers but criticised by private companies.

6. Digital Record-Keeping and Traceability

Seed producers must maintain complete records, enabling:

• Traceability from breeder to retailer

• Identification of faulty batches

• Action against defaulters

This helps address issues like spurious seeds in the market.

Why Has the Seed Industry Been Demanding Reform of the Seeds Act of 1966?

The industry’s demand for reform stems from multiple factors:

1. Outdated Provisions No Longer Serve the Modern Seed Sector

The 1966 Act predates:

• Hybrid seed technology

• GM seeds

• Large-scale private breeding

• Modern seed testing methods

• Digital traceability

As a result, enforcement has become outdated and inadequate.

2. Lack of Strong Penalties Encouraged Proliferation of Substandard Seeds

The earlier Act’s penalties were minimal, often limited to small fines such as ₹500, which is negligible in today’s scale of operations. This made it difficult to curb:

• Spurious seeds

• Mislabeling

• Fraudulent claims

• Poor-quality production processes

Reforms were seen as essential for cleaning up the industry.

3. Need for Uniform Standards Across India

Different states follow varying norms for:

• Certification

• Registration

• Testing

• Field requirement standards

Companies argue that a centralised law with clear, uniform standards will reduce confusion and improve quality assurance.

4. Encouraging Research and Innovation

The private sector invests heavily in R&D but requires:

• Clear intellectual property safeguards

• Transparency in registration timelines

• Predictable regulation

Modernisation is necessary to enable innovation.

5. Growth of India’s Seed Export Market

India aims to become a global seed hub. The industry believes updated laws will:

• Improve global competitiveness

• Build credibility

• Attract investment

• Open export opportunities

What Penalties Are Prescribed Under the Draft Bill?

The new Bill introduces a stringent penalty structure to enforce compliance.

1. Selling Unregistered or Misbranded Seeds

Penalties include:

• Fine of up to ₹5 lakh

• Imprisonment up to 1 year

• Both, in case of repeated offences

2. Supplying Low-Quality or Spurious Seeds

Any company or individual found responsible will face:

• Fine up to ₹10 lakh

• Imprisonment up to 2 years

• Seizure of seed stock

• Cancellation of license

3. Misleading Claims in Labels or Advertisements

Penalties escalate for:

• False germination percentage

• Misrepresentation of yield

• Unverified “performance” claims

This attracts fines and imprisonment based on severity.

4. Non-Compliance with Testing or Record-Keeping Rules

Penalties include:

• Fines

• Suspension of operations

• Blacklisting

5. Accountability for Compensation to Farmers

If a seed fails due to quality issues:

• Producer or marketer must pay compensation

• Failure to do so may lead to legal action

• Authorities may impose penalties

This shifts financial responsibility to the seed company rather than the farmer.

Why Are Farmers’ Groups Worried About the Draft Bill?

Farmers’ organisations have raised several key concerns:

1. Fear of Corporate Control Over Seeds

Farmers worry that mandatory registration may:

• Allow large corporations to dominate

• Increase seed monopolies

• Push out traditional and indigenous varieties

They argue that the Bill favours private companies.

2. Potential Criminalisation of Farmers’ Traditional Seed Practices

Farmers traditionally save, exchange, or sell seeds. Although the Bill claims to protect these practices, activists fear:

• Registration norms may indirectly restrict these freedoms

• Local seed sellers may face penalties

• Indigenous varieties may remain unregistered

This could reduce farmers’ autonomy.

3. Increased Seed Prices Due to Compliance Costs

Registration, certification, and testing require investment. Farmers fear:

• Companies may increase seed prices to recover costs

• Hybrid seeds may become more expensive

• Small farmers may be forced to rely on costly inputs

4. Ambiguity in Liability Provisions

Farmers argue:

• Burden of proving seed failure may fall on them

• Compensation mechanisms may be slow

• Companies may escape accountability through technical loopholes

5. Concerns Over Transgenic Seeds

The Bill allows registration of GM seeds subject to biosafety clearance. Farmers fear:

• Market flooding of GM varieties

• Dependence on patented seeds

• Loss of biodiversity

These concerns reflect broader debates about seed sovereignty and corporate influence.

What Will Be the Roles of the Central and State Seed Committees?

The Bill proposes a robust regulatory structure, including two key bodies:

Central Seed Committee (CSC)

This is the apex regulatory body responsible for:

1. Policy Formulation

• Drafting seed standards

• Monitoring implementation across states

• Evaluating new crop varieties

2. Registration Oversight

• Approving or rejecting seed registration applications

• Setting trial requirements

• Ensuring scientific evaluation

3. Regulating Seed Imports and Exports

• Approving imported seeds

• Ensuring biosafety compliance

• Coordinating international seed policy

4. Coordinating with States

• Harmonising seed standards

• Strengthening testing infrastructure

• Collecting national-level data

The CSC is designed as a high-level authority with nationwide jurisdiction.

State Seed Committees (SSCs)

Operating at the state level, these committees handle on-ground implementation.

1. Monitoring Quality Standards

• Inspecting seed markets

• Ensuring compliance with labeling rules

• Checking storage, transportation, and distribution

2. Licensing and Enforcement

• Issuing or suspending licenses

• Acting against violators

• Seizing spurious seeds

3. Resolving Farmer Complaints

• Investigating crop failures

• Coordinating field inspections

• Recommending compensation

4. Maintaining Regional Seed Databases

• Tracking seed varieties in circulation

• Monitoring supply-demand trends

• Facilitating regional seed planning

State committees serve as the execution arm of the regulatory system.

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