Mint Explainer | How India plans to fight the menace of counterfeit seeds

These uncertified seeds, often sold under the guise of reputable brands, are causing significant losses to farmers. They lead to crop failures and financial distress. The fake seeds fail to germinate or produce the expected yields, leaving farmers with nothing but debt.

In 2024-25, out of the total 2.53 lakh seed samples drawn by seed inspectors across 24 states and union territories, 32,525 samples were found to be sub-standard, minister of state for agriculture and farmers’ welfare Ramnath Thakur said in a written reply to the Lok Sabha on 19 August 2025.

The maximum incidence of substandard seeds was found in West Bengal (24,460), followed by Tamil Nadu (1,565) and Madhya Pradesh (1,438).

The rising menace has forced the government to push for digital traceability of seeds, a system that can track every packet from lab to farm. Mint unpacks the development:

Why is the government pushing digital traceability for seeds?

To tackle the menace of fake seeds, the government plans to digitize the entire seed supply chain—from production and certification to licensing, inventory management, and sales through certified dealers. Central to this effort is the traceability of seeds, which will ensure that farmers get only genuine, approved seeds.

As part of this strategy, the government is preparing to roll out the second phase of seed authentication, traceability & holistic inventory (Sathi), a centralized online system covering the entire country. The plan is to track seeds at every stage, including production, testing, certification, storage, distribution, and retailing to farmers. The matter assumes significance as farmers across India are prone to severe losses due to the deliberate distribution of fake and substandard seeds.

Also, since GI-tagged crops such as basmati rice are critical to India’s exports and reputation, unchecked use of fake seeds can damage international credibility.

What is the online seed traceability system Sathi?

The first phase of Sathi was launched on 19 April 2023 by the ministry of agriculture and farmers’ welfare in partnership with the National Informatics Centre (NIC). It has been implemented in 23 states and union territories, covering the complete seed production chain. It covers seed processing agencies as well as seed processing companies. It includes nucleus, breeder, foundation, and certified seeds.

The second phase will include registered dealers and recipient farmers as well, and will be launched nationwide soon. This will enable tracking of the entire seed lifecycle—from production and certification to distribution and sale. In some states, dealer registration has already begun. One feature of the project will be the introduction of a QR code on seed packets, allowing farmers to scan and verify the traceability and origin of the seeds.

Traceability would ensure that only high-quality, certified seeds reach farmers, thus boosting productivity and farmers’ income. It will prevent counterfeit products and enhance trust in the supply chain, said M.L. Jat, secretary, department of agricultural research and education and director general (DG) of the Indian Council of Agricultural Research (ICAR).

Will the amendment of the Seed Act help?

The Seeds Act, 1966 regulates the quality of seeds available for sale. The legislation has been amended multiple times to improve seed quality and ensure access to high-quality seeds for farmers. The Act provides a legal framework for seed certification, and systematic seed certification started in India in 1969. Under the existing provision, certification of seed is not mandatory, while private players are currently selling seed as ‘truthfully labeled’.

To safeguard the interests of the farming community, the government is in the process of amending the Seed Act, which would ensure traceability of seeds and fix accountability, minister of agriculture and farmers’ welfare Shivraj Singh Chouhan said on 18 June. The government plans to bring the amended bill at the earliest, possibly by the winter session of Parliament.

According to a senior official in the agriculture ministry, the government has yet to compile data on fake seeds in the market. However, a significant number of cases have been reported from Telangana, Rajasthan, Gujarat, and some other states. After raids, spurious seeds were seized and FIRs registered. Concerned individuals received show-cause notices and their licences suspended and cancelled.

How big is the seed industry in India?

Industry estimates suggest that nearly 800 private seed companies, comprising both Indian-origin firms and multinational corporations, are active in the country. Of these, nearly 100 companies have their own research and development programmes.

Most of the varieties multiplied and marketed by the private sector companies are from the public sector. In the case of wheat, rice, maize, and mustard, most of the companies have licensed varieties developed by ICAR, and the quality seed of newly released varieties is being made available to farmers.

The overall seed industry is valued at $6.3 billion (approximately ₹55,221 crore), according to industry estimates. The private sector has almost 98% share in cotton seeds; almost 70% in field crop, and 70% in vegetables.

According to the Federation of Seed Industry of India (FSII), the seed industry is expected to reach $12.7 billion by 2028 and $20 billion by 2040, growing at a CAGR of 10%.

The key factors driving the market include increasing demand for food, a growing focus on agricultural productivity, and rising adoption of new technologies. The government is increasingly focusing on improving agricultural productivity in order to boost food production and improve the agrarian economy. The seed industry can play a key role in this effort by providing farmers with the tools they need to increase yields.

How many seed testing laboratories are there in the country?

There are around 178 notified Seed Testing Laboratories (STLs) in the public sector currently operating in the country, out of which ten STLs (one laboratory each in Gujarat, Karnataka, Maharashtra, Odisha, Uttar Pradesh, and five laboratories in Rajasthan) are National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited, and two STLs (one laboratory each in Telangana and Tamil Nadu) are International Seed Testing Association (ISTA) accredited.