Seed industry seeks relief from Rs 800-cr regulatory burden, demands 'One Nation, One Licence'

New Delhi, Sep 27 (PTI) India's seed industry is seeking urgent government intervention to address regulatory bottlenecks that cost the sector over Rs 800 crore annually, with the Federation of Seed Industry of India (FSII) pushing for a unified national licensing system and removal of price controls to unlock growth.

The industry body unveiled its 'Ease of Doing Business' report at the 'Lab to Land' conference here on Friday, outlining short-term reforms that could save the sector Rs 382-708 crore by eliminating duplicative state-level procedures and delays.

The 106-page study, based on a survey of 55 companies representing about a third of the Rs 30,000-crore domestic market, highlights fragmented licensing, prolonged delays and redundant variety testing as key bottlenecks affecting the world's fifth-largest seed sector.

Regulatory friction alone accounts for over Rs 300 crore in annual costs from licensing and registration delays that cause companies to miss testing and launch windows, according to the report.

"Our survey shows that regulatory bottlenecks cost over Rs 800 crore every year. More than 54 per cent of Indian seed companies are MSMEs, for whom compliance costs average nearly Rs 64 lakh annually," FSII Chairman and Savannah Seeds CEO and MD Ajai Rana said.

The federation's immediate priorities include regulatory harmonisation under a 'One Nation, One Licence' framework to eliminate separate approvals across India's 28 states and eight Union Territories.

It has also called for launching a single-window digital platform for licensing applications to reduce paperwork that leads to delays of up to 180 days, often causing firms to miss planting seasons.

To boost research and development, FSII recommends restoring 200 per cent income tax deduction for in-house R&D expenses and scrapping existing seed price controls.

Over 70 per cent of surveyed firms indicated they would increase R&D spending by 13-15 per cent under eased regulations.

For MSMEs, which comprise over 70 per cent of the sector, compliance costs account for nearly 3.8 per cent of turnover versus 1.5 per cent for larger firms, the study found.

The proposals come amid broader government efforts to improve India's ease of doing business ranking, with the seed sector seen as vital for agricultural productivity and food security.

Agriculture Ministry Joint Secretary (Seeds) Ajeet K Sahu said the government is exploring means to boost the sector's growth and is working on integrating acts like the Seed Act of 1966 and the PPVFRA Act into a single framework.

"The government is making proactive efforts and private and public sector players need to work collaboratively to address issues, including intellectual property," ICAR Assistant Director General (Seed) Dr D K Yadava said.

Protection of Plant Varieties and Farmers' Rights Authority Chairperson Dr Trilochan Mohapatra highlighted the importance of intellectual property protection, stating that a robust IP framework is critical for the sector's growth.

Progressive farmer Ravichandran Vanchinathan from Tamil Nadu said farmers are demanding access to GM crops and innovative technologies to fight climate stress, pests and diseases.

The federation's medium-term recommendations include mutual recognition of testing results between states and development of innovation clusters with funding linkages for MSMEs.

FSII envisions positioning India as a technology leader in seeds while targeting 10 per cent of the global seed market by 2035, potentially creating thousands of new jobs and boosting rural development. PTI LUX TRB