INDUSTRY PROFILE

Indian Agriculture has made enormous strides in the past 50 years, raising food grains production
from 50 million tones to over 200 million Tones. In the process, the country has progressed from a
situation of food shortages and imports to one of surpluses and exports. Having achieved food
sufficiency, the aim now is to achieve food and nutritional security at the household level.
The increase in agricultural production, however, has brought in its wake, uneven development,
across regions, crops, and also across different sections of farming community. In the decade of the
'nineties', a marked slackening in the pace of growth has occurred, pointing to the need for infusing a
new vitality in the agricultural sector.
Seed is the most important determinant of agricultural production potential, on which the efficacy
of other agriculture inputs is dependent. Seeds of appropriate characteristics are required to meet the
demand of diverse agro-climatic conditions and intensive cropping systems. Sustained increase in
agriculture production and productivity is dependent, to a large extent, on development of new and
improved varieties of crops and an efficient system for timely supply of quality seeds to farmers.
The seed sector has made impressive progress over the last three decades. The area under certified
seeds has increased from less than 500 hectares in 1962-63 to over 5 lakh hectares in 1999-2000. The
quantum of quality seeds has crossed 100 lakh quintals.
The Seeds Act, 1966 and Seeds Control Order promulgated there under, and the New Policy on
Seeds Development, 1988, form the basis of promotion and regulation of the Seed Industry. Far-
reaching changes, however, have taken place in the national economic and agricultural scenario and in
the international environment since the enactment of the existing seed legislation and the
announcement of the 1988 Policy.

AIMS AND OBJECTIVES:

It has become evident that in order to achieve the food production targets of the future, a major
effort will be required to enhance the seed replacement rates of various crops. This would require a
major increase in the production of quality seeds, in which the private sector is expected to play a
major role. At the same time, private and Public Sector Seed Organizations at both Central and State
levels, will be expected to adopt economic pricing policies which would seek to realize the true cost of
production. The creation of a facilitative climate for growth of a competitive and localized seed
industry, encouragement of import of useful germplasm, and boosting of exports are core elements of
the agricultural strategy of the new millennium.
Biotechnology will be a key factor in agricultural development in the coming decades. Genetic
engineering/modification techniques hold enormous promise in developing crop varieties with a higher
level of tolerance to biotic and a biotic stresses. A conductive atmosphere for application of frontier
sciences in varietals development and for enhanced investments in research and development is a
pressing requirement. At the same time, concerns relating to possible harm to human and animal health
and bio-safety, as well as interests of farmers, must be addressed.
Globalization and economic liberalization have opened up new opportunities as well as
challenges. The main objectives of the National Seeds Policy, therefore, are the provision of an
appropriate climate for the seed industry to utilize available and prospective, opportunities,
safeguarding of the interests of Indian farmers and the conservation of agro-biodiversity.
While unnecessary regulation needs to be dismantled, it must be ensured that gullible farmers are
not exploited by unscrupulous elements. A regulatory system of a new genre is, therefore, needed,
which will encompass quality assurance mechanisms coupled with facilitation of a vibrant and
responsible seed industry.

VARIETALS DEVELOPMENT AND PLANT VARIETY PROTECTION:

The development of new and improved varieties of plants and availability of such varieties to
Indian farmers is of crucial importance for a sustained increase in agricultural productivity.
Appropriate policy framework and programmatic interventions will be adopted to stimulate
varietals development in tune with market trends, scientific-technological advances, and suitability for
biotic and a biotic stresses, location adaptability and farmers' needs.
An effective sui generis system for intellectual property protection will be implemented to
stimulate investment in research and development of new plant varieties and to facilitate the growth of
the Seed Industry in the country.
A Plant Varieties & Farmers Rights Protection (PVP) Authority will be established which will
undertake registration of extant and new plant varieties through the Plant Varieties Registry on the basis
of varietals characteristics.
 The registration of new plant varieties by the PVP Authority will be based on the criteria of
novelty, distinctiveness, uniformity and stability. The criteria of distinctiveness, uniformity and stability
could be relaxed for registration of extant varieties, which will be done within a specified period to be
decided by the PVP Authority.
Farmers/groups of farmers/village communities will be rewarded suitably for their significant
contribution in evolution of a plant variety subject to registration. The contribution of traditional
knowledge in agriculture needs to be highlighted through suitable mechanisms and incentives.
A National Gene Fund will be established for implementation of the benefit sharing arrangement,
and payment of compensation to village communities for their contribution to the development and
conservation of plant genetic resources and also to promote conservation and sustainable use of genetic
resources. Suitable systems will be worked out to identify the contributions from traditional knowledge
and heritage.
Plant Genetic Resources for Food and Agriculture Crops will be permitted to be accessed by
Research Organizations and Seed Companies from public collections as per the provisions of the
'Material Transfer Agreement' of the International Treaty on Plant Genetic Resources and the Biological
Diversity Bill.
SEED DISTRIBUTION AND MARKETING:
The availability of high quality seeds to farmers through an improved distribution system and
efficient marketing set-up will be ensured to facilitate greater security of seed supply.
For promoting efficient and timely distribution and marketing of seed throughout the country, a
supportive environment will be provided to encourage expansion of the role of the private seed sector.
Efforts will be made to achieve better coordination between State Governments to facilitate free Inter-
State movement of seed and planting material through exemption of duties and taxes.
Private Seed Sector will be encouraged and motivated to restructure and reorient their activities to
cater to non-traditional areas. A mechanism will be established for collection and dissemination of
market intelligence regarding preference of consumers and farmers.
A National Seed Grid will be established as a data-base for monitoring of information on
requirement of seed, its production, distribution and preference of farmers on a district-wise basis.
Access to term finance from Commercial Banks will be facilitated for developing efficient seed
distribution and marketing facilities for growth of the seed sector. Distribution and marketing of seed of
any variety, for the purpose of sowing and planting will be allowed only if the said variety has been
registered by the National Seeds Board.
INFRASTRUCTURE FACILITIES:
To meet the enhanced requirement of quality/certified seeds, creation of new infrastructure
facilities along with strengthening of existing facilities, will be promoted.
National Seed Research and Training Center will be set up to impart training and build a
knowledge base in various disciplines of the seed sector.
The Central Seed Testing Laboratory will be established at the National Seed Research and Training
Center to perform referral and other functions as required under the Seeds Act. Seed processing
capacity will be augmented to meet the enhanced requirement of quality seed.
Modernization of seed processing facilities will be encouraged in terms of modern equipment and
latest techniques, such as seed treatment for enhancement of performance of seed, etc.
Conditioned storage for breeder and foundation seed and aerated storage for certified seed would
be created in different regions. A computerized National Seeds Grid will be established to provide
information on availability of different varieties of seeds with production agencies, their location,
quality etc. This network will facilitate optimum utilization of available seeds in every region.
Initially, seed production agencies in the public sector would be connected with the National
Seed Grid, but progressively the private sector will be encouraged to join the Grid for providing a clear
assessment of demand and supply of seeds.
State Government or the National Seeds Board in consultation with the concerned State
Government may establish Seed Certification Agencies. State Governments will establish appropriate
systems for effective execution and implementation of the objectives and provisions of the Seeds Act.
IMPORT OF SEEDS AND PLANTING MATERIAL:
The objective of the import policy is to provide the best planting material available anywhere in
the world to Indian farmers, to increase productivity, farm income and export earnings, while ensuring
that there is no deleterious effect on environment, health and bio-safety.
While importing seeds and planting material, care will be taken to ensure that there is absolutely
no compromise on the requirements under prevailing plant quarantine procedures, so as to prevent
entry into the country of exotic pests, diseases and weeds detrimental to Indian agriculture.
All imports of seeds will require a permit granted by the Plant Protection Advisor to the
Government of India, which will be issued within the minimum possible time frame.
All import of seeds and planting materials, etc. will be allowed freely subject to EXIM Policy
guidelines and the requirements of the Plants, Fruits and Seeds (Regulation of import into India) Order,
1989 as amended from time to time. Import of parental lines of newly developed varieties will also be
encouraged.
Seeds and planting materials imported for sale into the country will have to meet minimum seed
standards of seed health, germination, genetic and physical purity as prescribed.
THE NATIONAL SEEDS POLICY:
The Government of India trusts that the National Seeds Policy will receive the fullest support of
State Governments/Union Territory Administrations, State Agricultural Universities, plant breeders,
seed producers, the seed industry and all other stakeholders, so that it may serve as a catalyst to meet
the objectives of sustainable development of agriculture, food and nutritional security for the
population, and improved standards of living for farming communities.
The National Seeds Policy will be a vital- instrument in attaining the objectives of doubling food
production and making India hunger free. It is expected to provide the impetus for a new revolution in
Indian agriculture, based on an efficient system for supply of seeds of the best quality to the cultivator.
The National Seeds Policy will lay the foundation for comprehensive reforms in the seed sector.
Significant changes in the existing legislative framework will be effected accompanied by
programmatic interventions. The Policy will also provide the parameters for the development of the
seed sector in the Tenth and subsequent Plans. The progress of implementation of the Policy will be
monitored by a High Level Review Committee.

A BRIEF HISTORY OF THE SEED INDUSTRY:

One hundred fifty years ago the United States did not have a commercial seed industry; today we
have the world's largest. Some view this as real progress, a form of genetic Manifest Destiny. A nation
once a `debtor' in plant genetics now supplies the world. In 1854, seeds were sourced in the U.S. by
way of a small number of horticultural seed catalogs, farmer (or gardener) exchange, on-farm seed
saving, and through the beneficence of the United States government.
Specifically, beginning in the 1850s, the U.S. Patent and Trade Office (PTO) and congressional
representatives saw to the collection, propagation and distribution of varieties to their constituents
throughout the states and territories. The program grew quickly so that, by 1861, the PTO had annual
distribution of more than 2.4 million packages of seed (containing five packets of different varieties).
The flow of seed reached its highest volume in 1897 (under USDA management) - with more than 1.1
billion packets of seed distributed.
The government's objectives in funding such a massive movement of seed stemmed from the
recognition that feeding an expanding continent would require a diversification of foods. To the early
colonies, the introduction of wheat, rye, oats, peas, cabbage and many other vegetable crops was as
critical to food security as was the adoption of the corn, beans and squash. Immigrants were encourage
to bring seed from the old country, founding fathers such as Thomas Jefferson engaged in seed-
exchange societies, and by 1819 the U.S. Treasury Department issued a directive to its overseas
consultants and Navy officers to systematically collect plant materials.
The first commercial seed crop was not produced until 1866 cabbage seed produced on Long
Island for the U.S. wholesale market. The industry flourished to some degree, but early seed trade
professionals felt their growth was stymied by the U.S. government programs as well as the self-
replicating nature of their product (that is, the factory contained within that product). In 1883, the
American Seed Trade Association (ASTA) formed and immediately lobbied for the cessation of the
government programs.
The organization developed powerful allies, such as Grover Cleveland's Secretary of Agriculture,
J. Sterling Morton, who wrote that the government giveaway was "antagonistic to seed as a
commodity-form and in direct competition with the private seed trade." But the program was very
popular with constituents, and the USDA's seed budget was kept intact - at one point counting for a full
10 percent of the agency's overall annual expenditures.
In the early part of the 20th century, the first wave of hybrids began to provide seed companies
with a potential increase in product profitability (as farmers would now need to return to the seed
distributor for materials each year).
However, most of the hybrid development was occurring at Land Grant Universities, and these
universities refused to give the company’s exclusive rights to the seed. Once again, the industry felt its
growth hindered by federal programs and complained of unfair trade practices. Mounting data also
indicated a slowing in yield increases from seed developed in government programs. The industry used
this last point to strengthen its argument for the privatization of seed development in order to foster
greater food security.
In 1924, after more than 40 years of lobbying, ASTA succeeded in convincing Congress to cut the
USDA seed distribution programs. The USDA still supported breeding at the state agricultural schools,
and for a time these programs continued to compete with seed companies by developing `finished'
commercial varieties. Associations such as the American Society of Agronomy and American Society
of Horticulture Science eventually convinced the public programs that their appropriate role was in
training plant breeders, performing fundamental research, and creating raw materials and technologies
for private industry to capitalize on. The LGUs began to increasingly serve in this capacity, developing
inbred parental lines and breeding stock that the seed trade would use to create proprietary varieties.
These changes in the public role, along with improvements in hybrid techniques, led to the growth
of the seed trade following World War 11. The trade was well represented during this period by
regional companies. The conversion to mono-cropping and large-scale corporate agriculture had not yet
moved into full swing. The Santa Clara Valley grew vegetables and fruit and not internet startups, and
Americans still planted their Victory Gardens. The seed trade reflected this diversity in food
production.
In the 1960s, a few larger seed firms began to purchase smaller companies (mostly to acquire
strong hybrid holdings). But the consolidations of this period were minor compared to the frenzy that
would come with a Supreme Court ruling on June 16, 1980, in the case of Diamond V. Chakravarty.
Prior to the Chakravarty decision, a plant (or animal) could be owned, but the genetics could not. This
case cleared the patenting of life forms on the bases of their genetic coding. The PTO granted more
than 1,800 such patents following the ruling. Companies that had no historical seed interests-primarily
chemical and pharmaceutical firms--began purchasing seed companies. In a few short years, there were
billions of dollars in mergers and acquisitions-with little to no regulatory oversight creating for the first
time a majority ownership of plant genetics by a few multinational companies. No other natural
resource (marine, timber, minerals) has ever shifted from public to private hands with such rapidity,
such intensity of concentration, and so little oversight.
Agri-Consultant, 4, Bhupali Apts, Rain Maruti Road, Thane 400 602, India SEED is the most
important input component for productive agriculture. In the significant advances that India made in
agriculture in the last four decades, the role of the seed sector has been substantial. The expansion of
seed industry has occurred in parallel with growth in agricultural productivity. Given the fact that
sustained growth to cope with increasing demand would depend more and more on the pace of
development and adoption of innovative technologies, the seed would continue to be a vital component
for decades to come.
The organized seed industry of the country is just forty years old. Yet, its growth has been
phenomenal. India is one of the few countries where the seed sector is already reasonably advanced.
The private seed industry is no more confined to just production and marketing of seed. It has as well
acquired technological strength to cater to the varietal needs of tomorrow.
 The Indian seed industry is currently valued around Rs 2500 crores ($ 500 million) and is
proposed2 to be around 3750 crores ($ 750 million) by 2002. There are about 150 organized seed
companies in India today. Several companies have Government of India (DSIR) recognized research
and development departments and have produced and released a large number of varieties and hybrids
in several crops. The contribution of private research in terms of value is steadily increasing. The share
of research hybrids in total turnover of crops like pearl millet, sorghum-sudan grass, sunflower, maize,
sorghum and cotton was about 70% in 1997-98 compared to 46% in 199091. Private R&D's real
investment in research has quadrupled between 1986 and 1998. Subsidiaries and joint ventures with
multinational companies account for 30% of all private seed industry research3. A study made over
nine private seed companies indicates that the amount spent on R&D ranged from 0.78% (0.49 crores)
to 15.08% (22.62 crores) (Companies Annual Reports 1998-99). Some of the companies initiated the
work on development of transgenic crops. In March 2002 the first transgenic hybrid cotton seed was
allowed for commercial cultivation in the farmer's field.
This article provides a historical perspective to the development of seed industry in India, its
current status and future. Besides, some suggestions are also provided for improvement and
modification in the regulatory procedures, particularly in case of transgenic crops.
HISTORICAL PERSPECTIVE:
The National Seed Corporation was established in 1963. The Government of India enacted the
Seeds Act in 1966 to regulate the growing seed industry4. The sixties were the most eventful times for
Indian agriculture, not only because of introduction of high-yielding cereals, particularly wheat and rice
but also for many other positive developments related to seed such as, constitution of Seed Review
Team, enactment of Seeds Act, 1966 and formation of National Commission on Agriculture.
GROWTH:
Seeds form the fundamental and crucial input for sustained growth in farm production, often
stimulating the use of new methods, machinery and yield-enhancing agro-inputs. The role of the seed
sector is not only to ensure adequacy in seed quality but also to ensure varietal diversity. Today, the
Indian seed programme boasts one of the biggest seed markets in the world, with annual sales at around
US $920 million. Of this, domestic off take accounts for US $900 million and sales in the global
market account for the remaining US $20 million.
The New Policy on Seed Development (NPSD), established in 1988 with the objective of
augmenting productivity and output quality, stimulated major growth in the industry as it attracted a lot
of investment in seed business from major domestic seed companies. Given the growth of the seed
sector in recent years, India has the potential to become the foremost player in the seed export business
in the developing world with prospective markets in Asia, Africa and South America.
PUBLIC SECTOR:
Like many agriculturally developed Asian nations, India has sizeable public and private sector seed
businesses. Giant public sector players include the National Seeds Corporation (NSC), the State Farms
Corporation of India (SFCI) and the thirteen State Seed Corporations (SSCs). NSC was the first public
sector organization, established in 1963, and remained virtually the only agency for seed production for
around 13 years. Its role extended to several developmental programs including training, quality
control and extension activities in seeds. This was followed by the setting up of the SSCs under two
consecutive plan periods, supported by the World Bank, and these largely adopted the role of the NSC
in the Indian States. These corporations engage principally in production and marketing of seeds of
high yielding and hybrid varieties developed by the public sector.
PRIVATE SECTOR:
Although private seed companies such as Poach and Sutton have been established since the pre-
independence era, accelerated growth of the private sector began only after the introduction of the new
seed policy in 1988 which ushered in a liberal business climate. Currently there are over 200 private
seed companies, together with a few multinational companies, and these tend to focus on low volume,
high value crops with the principal effort being placed on creating hybrids for oilseeds, maize, cotton
and vegetable crops. The private sector accounts for 70% of the market in terms of market turnover
whereas the public sector has the greater share in terms of volume sales.

GLOBAL INITIATIVES:
India today has a critical mass and level of growth that it could use not only to cater to the growing
domestic requirement but also to make a concerted effort for global trade under provisions of GATT
and WTO. Furthermore, India is endowed with second largest area of farmland, and the largest area of
irrigated land, in the world and, with its huge germplasm diversity, its seed industry is well placed to
serve both domestic and international markets.
The diversity of agro-climatic conditions, strong seed production infrastructure and market
opportunities, India holds significant promise for export of seeds. Government will evolve a long term
policy for export of seeds with a view to raise India's share of global seed export from the present level
of less than I% to 10% by the year 2020.
 The export policy will specifically encourage custom production of seeds for export and will be
based on long term perspective, dispensing with case to case consideration of proposals.
Establishment and strengthening of Seeds Export Promotion Zones with special incentives from
the Government will be facilitated. A data bank will be created to provide information on the
International Market and on export potential of Indian varieties in different parts of the world.
The release of high yield dwarf varieties of wheat and rice by the mid 1960s gave further impetus to
the growth of seed industry. This period also saw the constitution of the seed review team,
enhancement of seeds act.1996 for regulating the quality of seed and formation of the National
Commission of agriculture. This was the period in which the private sector took significant steps into
the seed business.
The 1980s witnessed two more important developments viz., granting of permission to MRTP/
FERA companies for investment in the seed sector in 1987 and the introduction of "NEW POLICY" on
seed development in 1988. The new policy on seed development while helping liberalize import of
vegetable and flowers seeds in general and seeds of others crops in a restricted manner encouraged
global seeds companies to enter the seed business of India.

CURREN STATUS:
To supply the seeds necessary for the five hundred thousand Indian villages is a big problem.
Storage, transportation and timely distribution of pure seed from village to village calls for careful
organization with in the state department of agriculture and the willing co-operation of farmers.
Indian's seed industry has grown in size and level of performance over the past four decades. It
represents a blend of private and public sector companies/ corporations. The private sector comprises
approximately 140 seed companies, which includes national, global, regional and other seed producing
and/ or selling companies.
The industry has made impressive strides from modest beginning in 1962-63 to over 5 latch
hectares in seed production in 1995-96. The quantum of seed distributed also grew from 14 lakh
quintals during this period. On the inputs supply the certified quality seeds distribution touched a new
high of one million tons during the year 2000-2001. It was 0.91 million tons the previous year.
CHALLENGES:
Implementing of new techniques requires dissemination and training for their beneficial use. To
achieve this goal radical change will be required in the existing extension system. In many cases
entirely new approaches for dissemination of knowledge will be required. These will have to be
constant learning an up gradation of skills to enable transmission of knowledge to the user.
To realization of the prospects of the industry will also changes in the government policy, which
would facilitate the development of the Indian agriculture and seed industry. The policy must aim at
governing greater self discipline and removing controls and restrictions, which inhibit growth and
development.
ROLE OF THE GOVERNMENT:
To achieve self-sufficiency in the production through planned programs, the distribution of quality
seed was rightly considered as a key factor by the government. The far-sighted and liberal policies of
government of India has always laid emphasis to build a sound seed industry in the country and has
supported both public and private sector organizations to develop and to meet the increasing seed
demand and also to produce surplus stocks require for export.
To support expanded activities the "National seed S.C.R. Engineering College program me" was
launched with the financial assistance of the "world bank" (International Bank for Reconstruction and
Development) in order to make available the right quality of seed to the Indian farmers in adequate
quantities and at reasonable price in time. The government of India took various steps including
promulgation of "Seed Act" during 1996, which became operative throughout the country from
October 1969.
The main objective of the act is to produce quality seed of different crop varieties under a system
of seed certification and testing is voluntary but the farmers have recognized the importance of quality
seed to get higher production with limited resources available at their end.
High yielding varieties are being released for cultivation in quick succession by various agricultural
universities and ICRA institutions through massive research project and screening of planning
materials. Steps have been taken during early 1984 to bring seed within the purview of the essential
commodities Act to strengthen the regulation of seed quality and to economies production at derived
levels.
PROBLEMS:
The seed industries and farmers from many years are facing many problems. A number of multi-
national corporations have stepped into our agricultural country to gain control over the seeds and their
distribution. Recently, a new variety of seeds have entered the country. This created many new
problems for the seed industry and farmers.
 Generally, a seed may be used either as a food material or as a seed for another crop. But now, the
life in the seed is being taken out for making it to be used only as a food material and not as a seed for
another crop.
These types of seeds are called genetic change or genetic engineering seeds. Example, BT Cotton
seed, the farmers are made to purchase those seeds, which are manufactured by the corporation for
their crops. Once the farmers or industry have used these types of seeds, they face many problems.
They have to use only those pesticides, which are produced by that association for protecting their
crops from the pests, diseases etc. these types would use by the wide associations.
SEED INDUSTRY IN GLOBAL PERSPECTIVE:
The population has been growing at a faster rate in the country. To increase the production
accordingly an "All India Co-ordinate organization has been established in 1951 with the assistance of
"Rockefeller Foundation" which belongs to America. As a part of this project, it produced new seeds of
maize in 1961 and cotton seeds in 1971.
With a view that the state governments are unable to meet the demand for seeds correctly, two
associations have been established with the help of Rockefeller Foundation. They are "National Seed
Association" 1963 and "State Farm Corporation of India", 1969. Due to the "Development Program
me" which came into existence in 1988, many multinational corporations have stepped into the seed
industry. At present there are more than 700 multinational corporations in India organizing seed
business directly or industry. Nineteen multinational companies have been made an agreement with the
Indian seed industries and have been enjoying the leadership in the seed market. Monsanto, an
American multinational corporation, has acquired one-fourth part of the MICO seeds industry, one of
the biggest seed industries in India. The acquisition value given by the Monsanto Corporation is more
than 17 times to the real value.
SEED INDUSTRY IN INDIA:
Indian seeds industry has grown in size and level of performance over the past four decades. India
stands in the 8th position all over the world in the production of different variety of crops. Again in
each crop there are thousands of varieties. To co-ordinate the seeds research centers and a private
organization in the country and to support the expanded activities, the "National seed Program" was
launched in 1967 with the financial assistance of the World Bank. In 1960 many private organizations
have participated in the production of seeds. Many seed industries have laid a strong foundation in the
country. Following are some of the major seed industries in India.MICO seeds private Limited,
Mumbai.
Monsanto holdings private Limited, Mumbai

Namdhari Seed Corporation limited, Bangalore.

National Seeds Corporation limited. New Delhi.

Rallies India limited, New Delhi.

Sungro seeds limited, Delhi.

Cargill hybrids private limited, New Delhi.

Pioneer India limited, Kolkata.

Proagro seeds private limited, Chennai.

Sasys seeds private limited, Bangalore.

Sinjent India limited, pune.

Nunhams seeds private limited, Gurgaon.

SEED INDUSTRY IN ANDHRA PRADESH:

In Andhra Pradesh the seed industries are many in number. Though Andhra Pradesh is one among
the states in India who have been producing different varieties of crops it does not have the major seed
industries in it when compared to other states. Many seed have formed recently in the state. Also the
state is growing industrially and there is sample scope and potential for the entry and success of new
industries.

The crop producing seasons are different for different states. In Andhra Pradesh the crop producing
seasons starts from June and ends with the month of September. Generally the rain fed crop in situated
in the irrigated crop may not have better results when compared. The stock to be sold by the seed
industries is kept ready during the starting of years as the period during which the demand will be more
fall between march and august. The industries in the state market with other states, which form the
boundaries of it. The selling period of those states will vary. The following are some of the seed
industries in Andhra Pradesh.

Indo American hybrid seeds (India) Pvt. Ltd, Hyderabad.

Seed works India limited, Hyderabad.
Mourya agri-tech., Hyderabad.
Sriram Bioseed genetics India limited., Hyderabad.
Nath seeds limited, Hyderabad.
Jk seeds limited, Secunderabad.
Nugeveedu seeds limited, Hyderabad.
Tulasi seeds Private limited, Guntur.
Venus crane seeds Pvt. Ltd, Guntur.
Tammareaddy seeds, Vijayawada.
Gopikrishna seeds, Mahaboobnagar.
 COMPANY PROFILE
VISION:
Our vision is to reach the No: 1 position Seed Company in India. Now it is in 4 th position in overall
India.
MISSION:
Our Mission is to produce the best seed to cater the needs of Indian farmers. Our commitment to
quality inn the seed industry has won laurels at the National level and helped us to grow faster in the
cotton seed market. The ever growing demand for quality and cost effectiveness has kept us on our toes
to be always ahead in the race towards success. With over 18 years of experience and with an ISO
9001: 2008 accreditation, we are marching ahead to be the leader in cotton seed production. The
strength of our company lies in the constant patronage from all our Indian farming community.
Tulasi Ramachandra Prabhu, chairman
We are proud that Tulasi Seeds Pvt. Ltd. (TSPL), the major contributor to the success stories of the
group is quite ahead in producing hybrid cotton seeds with a base of more than 1.5 million farmers.
TSPL has been in the forefront to adopt new technologies like Bollgard II and Roundup Ready flex for
the benefit of the Indian Farmers. Similarly TSPL has always been producing and launching new cotton
seed hybrids every year, which are developed in its own Research and Development facility, for which
TSPL was honoured with a National Award for the year 2009 (first prize). We have set ourselves the
dual objective of being recognized as the premier provider of quality seeds and as the leading hybrid
cotton seed producer in India by 2013.
Yogish Chandra, Managing Director

Tulasi Seeds Pvt Ltd. was incorporated on 15 th May 1992 under the proprietorship of Sri Tulasi
Rama Chandra Prabhu. TSPL is the one among the industries which are being run under the same
management.
Tulasi Seeds Pvt. Ltd.:
 Tulasi Seed Pvt Ltd. started in the year 1992. Current year turnover is Rs.100 crores. Having
R&D unit, Green House, Seeds Testing Laboratory, Bio- technology Lab, 100 acres of Farm Land,
Research scientists with M.SC.(Agr) PhD, Breeders, employees 450 regular and 300 seasonal. TSPL is
accredited with ISO 9001: 2000.
Coastal Packagings:
A packaging industry manufacturing corrugated boxes started in the year 1977.Total number of
employees are 150.Present turnover Rs.6 crores. It has been accredited with ISO 9001:2000.
Chaitanya Packaging’s Pvt. Ltd.:
Started in the year 1986 for manufacturing heavy duty export quality corrugated boxes. The
company employed 340 persons as on today and having turnover of Rs.35 crores per annum.
Accredited with ISO 9001:2000.
Chandra Transport:
Started in the year 1980. Total number of employees are 100. Having a fleet of 47 trucks.
Tulasi Ram Chits Pvt Ltd:
Started in the year 1998. Present turn over is Rs.3 crores.
Tulasi Filling Systems:
Started in the year 2002 for manufacturing office stationary. At present employing 40 persons.

Tulasi Digital Studios:

Started in the year 2004, for printing of flex & vinyl banners for large size hoardings with a special
focus on quality. Numbers of employees are 60.Turnover is 67.34 lacks.
Total group turnover is Rs. 153 crores. Total numbers of employees are 1000
permanent, 500 persons seasonal.
The company proprietor, sir Tulasi Rama chandra Prabhu, had received "Best Management Award"
in 1994 from the hands of Former Chief Minister, Kotla Vijaya Bhaskar Reddy. Again he received
"Parisramika Vijetha" award from the Minister of Industries, Kotagiri Vidyadhar. The company is being
run under his efficient management is such a way that it is not only to pave its way but also able to earn
some surplus to meet the needs of growth and expansion.
OBJECTIVES OF TULASI SEEDS PRIVATE LIMITED:
 The main objective of the company is to provide pure quality and certified seeds to the farmers and
to protect them from purchasing the duplicate seeds and increase the production.
The farmers are made to purchase the duplicate seeds for their crops by some of the big
corporations whose main objective is to earn profit and not the well being of the farmers and the crop
production.
Once the farmers have used those duplicate seeds, they face many problems. They have to use only
those pesticides which are produced by those corporations alone for protecting their crops from the
pests, diseases, etc. Therefore to save them from duplicate seeds and to increase the production TSPL is
striving hard to serve the farmers.

LOCATION OF THE COMPANY:

The Processing Plant and Research Farm are located at Ameenabad. It is near Dokiparru in
Medikonduru mandal of Guntur district in the State of Andhra Pradesh. It is only 15 km from Guntur
and is on Guntur-Narasaraopet highway. It is well connected by both rail and road transportation. It is
only 45km from Vijayawada which is industrially located.
The registered office named “TULASI HOUSE" is located at 4 th lane of Arundelpet in Guntur. It
is nearer to the Railway Station. The Zonal Office is situated at Hyderabad. The Branch office is
situated at Nagapur in the state of Maharastra.
ABOUT TULASI SEEDS PVT LTD:
FINANCIAL OBLIGATIONS:
 No expenditure was incurred during the year in foreign currency.
 The contingent liabilities at the end of the year were nit.
 The amount due by the company to SSI units was nil.
 The company has paid the interest and commissions regularly to, the respective parties.
FUTURE OUT LOOK:
 The company has introduced own branded seeds in the local market along with the partial
introduction of them in the states of Maharastra, Madhya Pradesh and Karnataka. It has made good
progress in the previous year from the own hybrids of cottonseeds and established its own good will in
the market.
The company is confident of achieving better results in the current financial year in view of the
improving market conditions and the company's strategically developed network in various areas. It
has been taking all necessary steps for improving quality of the products and services.

RESEARCH AND DEVELOPMENT (R&D):

 Specifically in the R&D carried out by the company.
 Development of own hybrid seed.
 To improve quality
 To improved productivity
 Rs.3,49,108 spent under own research and development programme during the year.
 Technology absorption during the year under review is nil.
FUNCTIONAL AREAS:
MARKETING:
The company mainly markets its products from its processing plant at Ameenabad. The consumers
come to the registered office or to the processing plant and place their order. The company has its own
trucks and vans for the transportation.Directly approach the company and reserve the material which
they want to purchase by making advance payments.
ADMINISTRATION:
Recruitment in Tulasi Seeds Pvt Ltd. is done mainly through internal sources. It has good relations
with their employees, workers, farmers, dealers and distributors. Promotion is mainly based on
seniority. It maintains farmer’s guest house at the processing plant. Programs were also arranged on
relevant topics as safety, role of employees, self- development, productivity, human relation, health etc.
FINANCIAL:
Tulasi seeds private limited use both its won capital and debt to perform its activities. The company
aims at wealthy maximization, rather than earning more profits. It maintains proper record if every
transaction showing full particulars when wanted.The company has adequate internal audit system
commensurate with the size and nature of its business. White God Chits and Finance, one of the units
maintained by the same management itself holds 50% shares of the company having Rs.10/face value
each.
The parties and employees to whom loans and advances have been given by the company are
repaying the principal amount stipulated.
PRODUCTION:
The production profile of Tulasi Seeds Private Limited deals with the whole issue of processing of
various kinds of seeds which includes the procedure, stockpile etc. The company processing of cotton
seeds takes the major place among all seeds. The different types of seeds which are being processed by
the company are as follows:
 Cotton Seeds
 Chilli Seeds
 Jowar Seeds
 Sunflower Seeds
 Tomato Seeds
 Maize Seeds
The company has separate section for maintaining seed testing laboratories, germination testing
room, humidity controlled room, etc. Laboratory oven is used to remove moisture of the seeds. The
seeds sometimes have more moisture than required. For example, cotton seeds must have generally
10% moisture.
 The seeds are kept in the oven and the fins inside remove the moisture from the seeds to the extent
mentioned on the oven. The Programmable Environment Test Chamber is a device used to know the
germinating power of seeds. For this, a particular type of paper called germination paper is used. The
seeds are kept on the germination paper and are kept inside the Environment Test Chamber. The test
chamber is kept on at a temperature of 25 degree centigrade and 99% humidity.
The paper is taken out and tested periodically for knowing the germination power of the seed.
There is a germination testing room in the section which indicates the germination capacity. There will
be some shelfs in the room on which the seeds are kept. The room will be air conditioned. A
germination tester attached to the shelf indicates the germination capacity in percentages. Finally, a
humidity controlled room is maintained by the company. The room is air conditioned at the
temperature of 30 degree centigrade. Two pipes will be there in the room. Through one pipe moisture
will be going out and through another pipe outside air will be coming in thus maintaining same
temperature.
The company has its own research and development programme. The scientists from their research
make the parent seeds which will be stored in the humidity controlled room. The seeds of the company
are given to the growers to grow the corps in the farms of the company. The crop period will be about
150 to 170 days. After that, the crop is taken by the company from the farmers.
For cotton crop, it will be kept in a round machine surrounded by horizontal beams called dust
remover machine. It removes the dust from the crop. Then it is thrown in the ginning machines. The
machines perfectly separate the dust is sold out in the market. The seeds are taken for delineating
process.
In this sufficient quantity of acid is pored in the machine along with the seeds. The machine
revolves and the negligible cotton remained will get burnt. After that seeds which turn into black color
will be dried for one or two days.
The dried seed are taken for grading. For this a machine called seed Grader is used for removing
dust and for grading. The seeds are poured in the machine and the dust, whether big or small will be
separates the light and damaged seeds.
Then the seeds flow into a gravity separator. The fans beneath identity the light seeds and workers
to take off the useless seeds, if any.The seeds examined are then pored into a crop protection machine
for chemical processing. These chemicals Gaucho, Cruser & Tata are mainly used in chemical
processing. The chemical processing of seeds through the crop protection machine will help to protect
the crop from pests and for quick germination these seeds are poured in the packing machine.
 The seeds processed with different it chemicals are packed separately. Generally, the seeds
processed with Gaucho chemicals have more demand. There will be a PMC machine by the side of the
packing machine which indicates the weight of the packets new weight will be of 500 grams. The
packets are again packed in cardboard boxes and kept ready for delivery purposes. It means quick
delivery of the materials ordered by the consumers through these trucks and vans. If any unforeseen
demand arises and orders are placed in plenty, it consults the Chandra Transport Agency for the
delivery of the material ordered.
The prices are fixed basing on its competitors and the variations in the prices of the goods in the
market advertising of done by the company.
The advertisement relating to the company seeds are given in daily newspapers like 'VAARTHA'
and monthly journals like 'ANNADAATA', etc., the advertisement and business promotion expenses
are included in the selling and distribution expenses while preparing the financial statements. The
advertisement expense during the year incurred by the company is less than the previous year. The
packing of the seeds is the last stage in processing. The packages are kept in corrugated boxes sent for
delivery to consumers. These packing expenses are included in the sale price.
The distribution is the main function in the marketing of seeds of the company. It maintains good
relations with its dealers, distributors and fanners. The company conducts and organizes the meetings
where the farmers, dealers and distributors come for the discussions.
This facilitates good understanding between them and finally leads to the overall development of
both the company and the members. The farmers and dealers directly approach the company and
reserve the material they want to purchase by making advance payments.
AWARDS:
 Government of AP gave “BEST SMALL SCALE INDUSTRIAL AWARD” in 1994.
 APSFC awarded “PARISRAMIKA VIJETA” consecutively for 4 years from 2001.
 Ministry of small scale industries, Govt. of India, given “NATIONAL AWARD”-2003
handed over the award by Dr.A.P.J.Abdul Kalam, president of India.
 Chaitanya packagings pvt. Ltd. Obtained certificate of merit from capexil, recognition of export
achievement in respect of paper boxes sponsored by ministry of commerce & industry, Govt. of In-
dia on 1.10.2007 at NewDehi for the year 2006-2007.
 Federation of Andhra Pradesh Chamber of commerce and industries. Red Hills, Hyderabad cho-
sen TULASI SEEDS PVT. LTD., for the award of EXCELLENCE IN RESEARCH & DEVELOP-
MENT for 2007.
 Received “BEST MANAGEMENT AWARD” -2007 from Y.S.Rajashekara Reddy, C.M of A.P

AGRICULTURAL BACKGROUND:
 Established Tulasi Seeds Pvt Ltd. in the year 1992 with a good motive of serving farming commu-
nity by supplying high quality hybrid seeds for getting higher yields.
 Acting as Chairman and Managing Director for Tulasi Seeds Pvt Ltd.
 Established Tulasi R&D division in 1994 in an area of 200 acres for developing superior hybrids
and OPVs and it has been recognized DSIR (Dept, of Science and Industrial Research), Ministry
of science & Technology, Govt. of India, New Delhi.
 For development of transgenic BT cotton hybrids, made agreement with Monsanto Company for
the transfer of BT technology in promising "Tulasi" cotton research hybrids and built spacious
green houses in 22,000 sq. ft. area for this purpose.
 Several high yielding hybrids have been developed in crops like cotton, Chilly, Maize, Sunflower,
Billet, sorghum etc.
 State of the Art Biotechnology Laboratory was constructed and acquired several modern equip-
ments.
 More than 100 post graduate & Ph. D students have been guided and helped them for doing their
project work in Tulasi Biotechnology Laboratory.
 This year around 10 Lakh farmers have been benefited by using Tulasi hybrids.
 Farmers were given training by conducting farmers' fields, field days & jeep campaigns.
EXTENSION ACTIVITIES:
Showing keen interest in organic farming, natural manures like vermin compost etc have been
produced in large quantities and experiments are being carried out at Tulasi R&D division.
RECENT ACHIEVEMENT:
Tulasi Seeds, which aims to emerge as market leader in seeds sector in next two years, will raise Rs
150 crore in next three months by offering 20 per cent of its stake to private equity firms as well as
banks, according to the Tulasi Group Chairman and Managing Director Tulasi Ramachandra Prabhu.
Mr Prabhu, who recently received an award from President Pratibha Patil for his company's
research into seeds, told media persons here that the entire process of stake sale would take three
months. The company will use the funds to expand its operations.
According him, Tulasi Seeds, which is the 3rd largest seeds marketing company in the country,
achieved a turnover of Rs 171 crore last fiscal and would generate Rs 225 crore during the current
fiscal."We have entered into an agreement with an Italian company for producing vegetable seeds as
well as BT seeds of maize," he said. Mr Prabhu also said his company would go for public issue within
three years.
"TULASI" SYNONYM FOR HIGH QUALITY:
Good seed is the basic and crucial input to improve the agricultural economy. Inspite of availability
of various kinds of seed in market, the challenge of producing sufficient agriculture production is not
possible due to the poor quality of seed. In order to supply high quality and high yielding hybrid seeds
and OPVs in important agricultural crops to the farming community at an affordable price, Tulasi
Seeds Pvt, Ltd. (TSPL) was started in 1992 at Guntur (Andhra Pradesh).
 Sri Tulasi Rama Chandra Prabhu, an Engineering Graduate from IIT, Madras, who hails from
an agricultural family, is the chairman for the company. Due to his continuous efforts and dynamic
leadership for the last 15 years, Tulasi Seeds Pvt. Ltd., has grown to be one of the leading seed
companies in the country. TSPL is marketing its own research hybrids as well marketing network all
over the country.
This company has been accorded IS09001:2000 certification for its quality management system. Sri
Prabhu has also received `National Award for entrepreneurship' from the president of India
Dr.A.P.J.Abdul Kalam.
Research development division of TSPL was started in 1994 with a view to develop superior
hybrids and OPVs for higher yield, early maturity, better quality and resistance to biotic and abiotic
stresses in major crops. The R&D Division has excellent infrastructure facilities with highly qualified
scientific manpower for conducting research in Plant Breeding and Biotechnology. DSIR(Department
of Scientific and Industrial Research), Ministry of Science & Technology, Govt. of India has accorded
recognition to TSPL's R&D division. Collaborative research is also being carried out with international
institutes like ICRISAT etc., for hybrid development program.
Due to the continuous efforts at R&D division, several high yielding hybrids in crops like Cotton,
Chilli, Maize, Sunflower, Sorghum, Pearl Millet, Okra etc., have been developed.
Very popular and revolutionary Tulasi cotton research hybrids like Tulasi_4Bt(Sri Tulasi
Bt),Tulasi_9Bt(Bhaskar Bt) (Central Zone) &Tulasi-117 Bt (Namaskar Bt) are being cultivated in lakhs
of acres in major cotton growing areas in the country and these Tulasi Bt Cotton hybrids are showing
excellent results in framers' fields. The R&D Division has also developed BG II versions for Tulasi-
4BGII &Tulasi-9 BGII and these two hybrids have shown the best performance in the large scale field
trails in North, Central & South Zones. After GEAC approval Tulasi-4 BG II & Tulasi BG II hybrids
would be made available to farmers for Kharif 2008 season.
RECRUITMENT AND SELECTION IN TSPL:
People are the most important and valuable resource of any organization. In due consideration to
this aspect, TSPL lays maximum emphasis on human resources planning, development and
management for optimum utilization and full realization of the employee potential to achieve the goals.
TSPL follows corporate recruitment policy in meeting its manpower requirements. The organization in
order to accomplish the present and future business objectives assesses and reviews the manpower
requirements of various plants every year by consolidating their requirements. In other words, it
collects information about the manpower requirements of various plants and then it takes appropriate
action for recruitment and selection. Recruitment of manpower is done at two levels, namely
recruitment at corporate level and recruitment at plant level.
RECRUITMENT PROCESS:
TSPL applies corporate rules and procedures in case of recruitment. Wide publicity is given
through open advertisements in media. The advertisement specifies the service conditions and
compensation packages. Once the recruitment process is completed, TSPL allots selected candidates to
various power plants. When the selected candidates join the respective plants, the branch manager
concerned allots candidates to various departments in consultation with the heads of the various
departments. Candidates with right qualification and adequate experience are placed in appropriate
departments. They are also given necessary orientation in terms of “On the job training”. The training
is mostly conducted in its in-house training institute. The process involved in recruitment is shown in
chart. The recruitment process in TSPL is transparent and fair. For instance, TSPL after receiving
applications form potential candidates calls them for a written test. Potential candidates who
successfully pass through the written examination are called for group discussion followed by an
interview.

Recruitment and selection process

Advertisement

Written test
 Interview

Induction / training

Posting

Thus, after taking the final decision, the organization has to intimate this decision to the successful
as well as unsuccessful candidates. The organization offers the job to the successful candidates either
immediately or after sometime depending upon its time schedule. The candidates after receiving job
offer communicates his acceptance to the offer or requests the company to modify the terms and
conditions of employment or reject the offer.The company may modify the terms and conditions of
employment as requested by the candidate. The company employs those candidates who accept the job
offer with or without modification of terms and conditions of the employment and place them on the
job.

PROMOTIONS AND PROMOTIONAL POLICES:

Promotion policy is one of the most important components of personnel policies in any
organization. Every employee in service looks for better service conditions like promotion to the next
higher cadre after having put in a minimum period of service in the current cadre. It is therefore
necessary to lay down a clear policy regulation with regard to promotion to each cadre, as it creates a
healthy atmosphere in the organization and also improves the efficiency of the organization to a larger
extent. In TSPL, promotional policies are transparent and fair. TSPL follows two types of promotions
such as “merit-cum-seniority” and “seniority only” subject to fitness. The following cadres come under
the purview of “merit-cum-seniority”.
CRITERIA FOR PROMOTION:

The criteria adopted for fixing the merit rating in respect of cadres for which promotion is on the
basis of merit-cum-seniority is as follows. The total marks obtained in the annual appraisal reports for
the latest five years shall be added and divided by 5 to obtain the average marks. Based on the average
marks obtained, grading will be given in terms of the following and the same is presented in table.
 Out of turn 90% and above

In turn Less than 90%

Unfit Not to be
considered

Gradation of Employees

The grades as mentioned above are the basis for considering the suitability of an employee for pro-
motion. It is to be mentioned here that “out of turn” grading shall be awarded only, if two different re-
porting officers award ‘A’ grade to the employee who is assessed.

SENIORITY ONLY:
In case of employees from reference, their claims shall be considered on the basis of seniority
subject to fitness. No personal interests are encouraged and the promotions are only based on the
performance and seniority only.
INTER PERSONAL RELATIONS:

Employees of TSPL personally know one another and hence, inter personal relations are good. For
instance for the last four years, no conflicts are reported among the employees and officers, which
shows that good interpersonal relation exist in the organization.
RULES AND REGULATIONS:

Every organization has its own rules and regulations and TSPL is no exception. In TSPL, the rules
and regulations are very strict. For instance, the management views unauthorized absenteeism
seriously. Further, the staff should be continuously made available in the organization. They should not
leave the office without prior permission from the authorities concerned. Further, during emergencies
the employees have to work round the clock, until the problem gets solved. Likewise, if an employee
wants to apply for leave, he has to obtain prior permission from the authorities concerned. On the
whole, the rules and regulations are strict.
COMMUNICATION:
 Good communication system exists in TSPL. All the sections, departments and units are linked by
Intranet, a system designed by TSPL. Besides this, landline telephones are arranged in all the sections
and departments. As such, communication is faster in TSPL.

REPORTS:

The various departments of the plant have to submit daily reports to the heads concerned, who in
turn submit the reports to the superior concerned. Ultimately, all the reports from various departments
and wings reach the branch manager. Further, Unit heads submit performance reports to the chairman
every month. The various reports to be submitted are maintenance reports, lubrication reports, stock
reports, breakdown reports etc. These reports, if not submitted timely, the management views the
matter seriously.
EMPLOYEE WELFARE:
Employees at lower levels in every organization usually perform relatively monotonous tasks and
have fewer opportunities for promotion or change. This is particularly true in developing countries.
Hence, Organizations in order to maintain their work commitment and motivation provide welfare
facilities. Having recognized the importance of welfare facilities, TSPL provides statutory, non-
statutory and social security welfare facilities to its employees. For critical diseases, employees,
engineers and officers are referred to corporate hospitals in Hyderabad. A canteen is provided where tea
and snacks are served at subsidized prices. Besides this, the consumer co-operative credit society lends
loans liberally to all its employees. Above all, whatever the profit the Tulasi Seeds will get it will
distribute a certain percentage proportionally to all the employees.