Seed Act 2026 and Its Impact on Farmers

Syllabus: GS3/Agriculture

Context

• Recently, the Union Minister for Agriculture and Farmers’ Welfare (MoA&FW) briefed in detail about the features of the Seed Act 2026 and its impact on farmers.
  • The Seed Act 2026 is expected to be introduced in the Upcoming Budget Session of Parliament.

Key Reasons For Bringing New Seed Act (Seed Act 2026)

• Outdated Nature of the Seed Act, 1966: The Seed Act of 1966 was enacted when seed market was largely public-sector driven; hybrid and genetically improved varieties were limited; and digital systems and traceability were non-existent.
  • Today, the seed sector is vast, private-sector dominated, and technologically advanced.
  • The old law lacks provisions for digital monitoring, modern certification standards, and effective enforcement mechanisms.
• Lack of Seed Traceability: Currently, farmers often do not know who produced the seed, whether it was certified, and who is responsible if crops fail; that makes grievance redressal extremely difficult.
• Rising Menace of Fake and Substandard Seeds: Farmers across India frequently report losses due to spurious or adulterated seeds, seeds sold under false labels, and poor germination and low yields.
  • Penalties were minimal, and prosecution was slow and ineffective under the old Act.
• Protection of Farmers’ Rights: While regulating commercial seed sales, it is equally important to protect farmers’ traditional rights to save, use, exchange, and share seeds, and ensure farmers are not criminalised for age-old practices.
• Growth of the Private Seed Market: With the rapid expansion of private seed companies, quality control has become uneven, and small farmers are exposed to aggressive marketing without safeguards.
  • The old law does not sufficiently regulate registration of seed companies and dealers, and accountability of private players.
• Ensuring Food Security and Productivity: Low-quality seeds directly impact national crop output, food availability, and price stability.
  • At a time when climate change is increasing risks to agriculture, seed quality becomes even more critical.
• Regulation of Imported Seeds: India imports several seed varieties, but weak regulation can lead to introduction of unsuitable or low-quality seeds, and ecological and agronomic risks.

Key Features of the Seed Act 2026

• Nationwide Seed Traceability: Every packet of commercial seed sold will carry a QR code that farmers can scan.
  • Scanning reveals key information: who produced the seed, where it was sourced, and which dealer sold it.
  • It aims to eliminate anonymous seed sales and quickly detect fake or substandard seeds, enabling faster remedies for aggrieved farmers.
• Mandatory Registration of Seed Companies and Dealers: The Act proposes compulsory registration of commercial seed producers, traders, and dealers.
  • Unregistered vendors will not be allowed to sell seed.
  • It ensures only authorised players operate in the market, reducing the entry of dubious sellers.
• Strong Penalties for Substandard and Fake Seeds: The new Act proposes fines up to ₹30 lakh and possible imprisonment for deliberate violations.
  • It aims to protect farmers from routine exploitation by unscrupulous vendors.
• Protection of Traditional Seed Practices: Government officials have emphasised that traditional farmer practices like saving, sharing, and exchanging seeds within the community will not be restricted.
  • The new act focuses on commercial seed quality, not on traditional, non-branded seed systems.
• Scientific Evaluation of Imported Seeds: Imported seeds will undergo rigorous scientific assessment before entering the Indian market, ensuring they meet ecological, agronomic, and quality criteria.
  • It protects local farmers from inferior foreign seeds that may not be suited to Indian growing conditions.
• Institutional Mechanisms and Federal Cooperation: The Act may create oversight committees at the Central and State level to improve coordination in seed testing, registration, and enforcement across regions.
  • Agriculture remains a State Subject (Schedule VII of Indian Constitution), meaning states will play a key role in implementing and enforcing the Act alongside the Centre.

Expected Impact on Farmers

• Boost in Confidence and Crop Productivity: High-quality certified seeds with verified origin help improve germination rates, reduce crop failures, and increase yields.
  • Farmers benefit through better production outcomes and reduced risk.
• Reduction of Fake and Substandard Seeds: By making traceability mandatory and enforcing registration and penalties, the market will see a significant reduction in adulterated or fake seeds.
  • It is especially important for smallholder farmers, whose limited resources make them highly vulnerable to low-quality inputs.
• Transparent Supply Chain: Transparency enables farmers to make informed purchase decisions and, if necessary, seek redressal using digital records.
  • Over time, trusted seed brands and reliable dealers will gain prominence, improving market discipline.
• Encouragement of Public and Domestic Seed Innovation: The Act strengthens the role of Indian agricultural research institutions (e.g., ICAR, agricultural universities), enabling them to play a more defined role in seed development.
  • Stronger domestic systems may reduce dependency on imported seed varieties and support locally adapted seeds.

Related Concerns & Challenges

• Implementation Capacity: Effective enforcement demands well-equipped seed testing labs, trained personnel, and digital infrastructure, especially in smaller towns and rural areas.
  • States vary widely in institutional capacity, which may affect uniform rollout.
• Concerns Over Corporate Influence: Stringent registration and regulatory frameworks could concentrate market power among large seed corporations, potentially marginalising small seed producers.
• Need for Farmer Awareness: Digital traceability and complaint systems require farmers to be aware of how to use them, necessitating robust outreach and education programmes.

Source: PIB