A new seed co-operative proposed to be named Bharatiya Sahakari Beej Samit (BSBS) is likely to start operating this month, potentially taking away a sizeable revenue from the private sector in the ₹36,000-crore domestic seed market. Earlier this week, the Union Cabinet approved the establishment of the multi-State seed co-operative society along with a national export society and a national co-operative society for organic products.
The co-operative will be located inside IFFCO’s corporate office. The co-operative has officially been mandated to tap the potential in the unexplored ₹40,000-crore seed market. Farmers will use a part of their own crop as seeds, while BSBS will dent the existing market dominated by the private sector when it launches its operations, experts said.
₹500 crore capital
“The Government is facilitating its formation and there will be no direct shareholding. All the 63,000 primary agricultural credit societies (PACS) will be roped in to retail the seeds to be sold by the new multi-state cooperative,” said Gyanesh Kumar, Secretary, Cooperation.
He said BSBS will have an authorised share capital of ₹500 crore and will be established with initial paid-up share capital of ₹250 crore, to be shared equally by IFFCO, Kribhco, National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), National Co-operative Development Corporation (NCDC) and National Dairy Development Board (NDDB). The remaining ₹250 crore will be held by PACS and other co-operatives when they become members.
IFFCO may play the role of anchor promoter given its wide reach through a network of thousands of cooperatives at village levels, sources said.
The National Seeds Corporation and Indian Council of Agricultural Research (ICAR) will be co-opted on the BSBS board as expert members. ICAR has been asked by the Government to provide breeder seeds and technological support to the new co-operative to kick-start its activities.
Of the annual requirement of 787 lakh quintals seeds, the actual availability through organised retails is about 372 lakh quintals, leaving an untapped potential for 415 lakh quintals which come from the farmers’ own crops as well as from neighbours, officials said. BSBS will target the untapped potential by improving those seeds with its intervention starting from sowing to harvest and then testing to branding. This will benefit farmers to get higher productivity.
Yield improvement
“It has been seen that there is 15-20 per cent yield improvement when farmers move to certified seeds from farm-saved seed (FSS),” Kumar said. The new co-operative will also concentrate on creating infrastructure for the production, marketing and distribution of seeds including natural indigenous seeds in order to enhance the qualitative and quantitative seed production capabilities of its members.
“It will also identify natural seeds of indigenous plant variants including but not restricted to seeds of foodgrain, fruits and vegetables to develop a system for their preservation, conservation, breeding, production, distribution, promotion and all other activities needed,” an official said, adding the BSBS will not enter the hybrids market, which is dominated by the private sector including multinational companies.
As many as 29 crore members of co-operative societies, largely marginal farmers and people from lower income groups in rural areas will be the target of BSBS so that quality inputs reach them at least or no cost, the official said. Many of the Central schemes in seed distribution may also be routed through BSBS, the official said.
Pointing out that there are 170 testing laboratories for certifying seeds, the official said BSBS, either on its own or jointly with agricultural universities and research institutes, will establish testing laboratories and undertake tests of different seeds to ensure better quality of cereal, pulses, oilseed, fodder, vegetable seeds.