Presentation on Seed marketing channels,pricing, export-import of seeds,Role of NSC and State SeedCorporation

1. Presentation on Seed marketing channels,
pricing, export import of seeds,
Role of NSC and State Seed
Corporation.
PRESENTED BY:-
ABHISHEK RAJ
MBA (AGRI-BUSINESS), SHUATS
PRESENTED TO:-
Mr. Pritesh Dwivedi
(Asst. Professor, SHUATS)

2. SEED MARKETING CHANNELS
DEFINITION OF SEED MARKETING
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 Seed marketing should aim to satisfy the farmers demand for
reliable supply of a range of improved seed varieties of assured
quality at an acceptable price.
 Broadly, it includes such activities as production, processing,
storage, quality control and marketing of seeds.

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SOURCES OF SEED AVAILABLE TO FARMERS
 For farmers there are a number of sources available for the purchase
of seed.
These are:
1. Direct sales
2. Farmers producers
3. Cooperatives
4. Farmer dealers
5. Commission agents
6. Crop buyers
7. Retail store dealers
8. Industrial processors
9. Cold store operators
10. Consumer outlets
Although government extensions outlets are seed is sometimes
supplied to the farmers through government sponsored agencies.

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CHANNELS FOR SEED MARKETING
There are described as three types
1.Direct level:-The seed producing organization supplies the farmer directly.
Some features of direct channel distribution are:
• The supplier has direct contact with the farmer. A high level of service and customer
support can be maintained.
• Direct control is maintained over the quality of the product.
• A responsive management and motivated staff are required there are many staff
involved in a direct sale organization there can be an inertia to changes so the system
may lack flexibility.
• The revenue necessary to pay for the high fixed costs will only come from having a
wide product range and achieving good market shares or selling high value products
such as horticultural seeds.

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2.Single level:-The seed producing organization supplies the farmer through
independendent retail outlets.
•The seed supplier relies on the retailer for contact with the farmer.
•Retail networks require strong service and support from the supplier.
•Good administrative control must be provided by the sales management. The suppliers
distribution system must be well organized and responsive.
•Product quality at the retail level must be monitored for deterioration and adulteration
and a return system should be considered.

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•Although the products may be well promoted, the supplier relies on the retailer to make the final sale.
3.Multilevel:-The seed producing organization supplies a national distributor, wholesalers or regional
distributors who, in turn, supply sub-distributors or the retail outlets. This system is characterized by:
•The supplier having no direct contact with the farmer.
•Products being strongly promoted in order to create demand.
•Supplying seed to the distributors in sufficient time to achieve timely availability at the retail level.
•Management ensuring that there is a good system of monitoring sales and obtaining feedback from the
farmer.
•The distributor being interested only in the strongest selling lines.
If neither infrastructure nor the economy are well developed, national distributors may simply not be
available and the seed producer will have to supply seed to regional wholesalers or distributors.

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Seed pricing involves setting prices when a new product is launched or a new distribution channel is
used. A decision may need to be taken to change the price in response to competition and to the
general market situation.
In the public sector prices are often based on an economic pricing policy. Economic pricing considers
the effect of seed price on the economy, taking into account the amount officials think farmers can
afford to pay and the role of the seed industry in the development of agricultural production.
Some objectives in government seed pricing could be:
• to induce farmers to use certified seed of improved varieties in order to increase national
production
• to provide adequate incentives to seed producers to supply seed in sufficient quantity to meet
demand
• to encourage the development of private distribution channels
• to implement government agro-economic policies.
PRICING IN SEED MARKETING

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Some objectives in private sector seed pricing are likely to be:
• props maximization which will be the long-term target although there may be many other
shorter term considerations which will influence pricing policy, such as increasing market share
and gaining acceptance of new products
• price competition, may be achieved by setting a price that gives a competitive edge in the
market place but may not be lower than that of a rival because other factors, such as service,
will be contributing to a company's competitive advantage
• Investment which must be at least as good as other uses for investors' funds.

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• Low price strategy
Low price strategies are used where consumers respond very positively to small downward
changes in price, but a company may not always gain from setting low prices as more
efficient competitors may respond with similar price cuts
• Market price strategy
Where a few large companies dominate supply, products tend to be similar and the role of
price tends to be neutral, i.e. a market price is established.
• High price strategy
In the case of the long-term policy the company will have identified a market segment for a
high quality, A high price will reflect the exclusive image or added value of the product.
• Pricing techniques
The important influences on pricing are cost, demand, prices of the product's main
competitors and short-term sales targets.
Pricing strategies

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• Cost-plus pricing
This method involves calculating the unit cost of a product and adding the appropriate profit
margin to give a base price which might then be altered in relation to prevailing market
conditions.
• Contribution pricing
This is a form of cost-plus pricing which involves separating the different products that make up
the product portfolio and allocating to them the direct costs associated with their production
• Competitive pricing
Where there is market competition, costs cannot always be the determining factor in pricing. Here
the nature and extent of competition will have a major influence on the price
• Short-term pricing techniques
Pricing can be a useful tool for pursuing short-term marketing and sales targets.

11. SEED EXPORT/IMPORT
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◍ The export and import of seeds and planting material is governed by the export and import (EXIM) policy
2002-07.
◍ As per World Seed Trade Statistics, India has sixth largest size of domestic seed market in the world,
estimated to be at about 1300 million dollars. However, India’s share in global trade in seeds (import &
export) is of only about 37 million dollars only.
◍ Restrictions on export of all cultivated varieties of seeds have been removed except the following
○ Breeder or foundation or wild varieties;
○ Onion, berseem, cashew, Nux vomica, rubber, pepper cuttings, sandalwood, saffron, neem, forestry
species and wild ornamentals.
○ Export of Niger which is canalized through TRIFED, NAFED, etc.
○ Groundnuts, exports of which is subject to compulsory registration of contract with APEDA.
◍ The exports of these seeds is restricted and is only allowed on case to case basis under licence issued by
Director General Foreign Trade on the basis of the recommendations of Department of
Agriculture and Cooperation.

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◍ The EXIM Policy reiterates that all imports of seeds and planting material would be
regulated under the Plant Quarantine Order 2003.
◍ Import licences would be granted by DGFT only on the recommendations of DAC.
◍ A small quantity of seeds sought to be imported would be given to ICAR, or farms
accredited by ICAR, for trial and evaluation for one crop season.
◍ DAC is required to either reject or recommend the application to DGFT for grant of import
licence within 30 days of receipt.
◍ On receipt of applications for commercial import, DAC would consider the trial/evaluation
report on the performance of the seed and their resistance to seed/soil borne diseases.
◍ Every effort has to be made to prevent the entry into India of exotic pests, diseases and
weeds that are detrimental to the interests of the farmers.

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ROLE OF NSC
◍ NATIONATIONL SEED PRODUCTION AGENCIES:-
• National seed corporation. (NSC)
• State Farm Corporation of India. (SFC)
• Indian councils of Agriculture Research. (ICAR)
• Indian Institute of Horticulture Research. (IIHR)
• India Agriculture Research Institute. (IARI)
 NATIONAL SEED CORPORATION :- (NSC)
It was initiated in 1961 under the Indian council of Agriculture Research. Later on 7th March 1963 it was
registered as a limited that is National Seed Corporation limited. And started functioning from July 1963.

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◍ OBJECTIVES OF NSC:-
• To promote the development of seed industry in India.
• To produce and supply the foundation seeds of varies crops.
• Nowadays its started production of breeder seed also.
 PRESENT FUNCTIONS OF NSC:-
• Production and supply of Foundation seeds.
• To maintain improved seed stocks of improved varieties.
• Production of certified seed where required.
• Interested marketing of seeds.
• Export and import of seeds.
• Planning the production of breeder seed in consultation with ICAR.
• providing technical assistance to state seed corporation and private agencies.
• Coordinating with the several states seed corporation for production of certified seeds.
• Conducting biennial surveys of seed demand.
• Providing training facilities for the staff participating in seed industry development.
• Providing certification services to state lacking established.

15. ◍ State Seed Corporation (SSC)
◍ State Seed Certification Agency (SSCA)
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State Seed Production Agencies

16. STATE SEED CORPORATION (SSC)
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SSC’s are chiefly concerned with production and supply of certified seed.
To reduce the work load of NSC and to stimulate a faster growth of
industry, SSCs were established in view of great success of and the
impact made by the tarai development corporation (TDC), Pantnagar.

17. STATE SEED CERTIFICATION AGENCY
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State seed certification agency is responsible for seed certification,
SSCA makes field inspections and conducts seed tests required for
seed certification.
The seed act, was enacted by the parliament on 29.12.1966 and the
seeds rules were notified in 1968. This Act came into force
throughout the country on 2nd oct. 1969. Seed was declared as an
essential commodity under the essential commodities act. (1955)

18. THANK YOU!
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