Quality Seed Production Crosses 350 Lakh Quintals Rs. 294 Crore Allocated For Development Of Seed Infrastructure

Production of quality seed in the country has crossed 350 lakh quintals. 

Out of certified/quality seed production of 353.62 lakh quintals in 2011-12, about 51% was produced by Government agencies and 49% by private seed companies. 

Seed production of crops like cereals, oilseeds and pulses are mostly being undertaken by government owned seed companies, while the private sector seed companies are predominantly producing seeds of vegetable crops, cotton, maize, hybrid paddy, sunflower etc. With the infusion of new seed production technologies like Bt cotton and hybrid maize, private seed sector is playing a significant role in augmenting supply of these seeds. 

Rs. 294 crore have been allocated in the current financial year (2012-13) for Central Sector Scheme ‘Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds. 

Government has taken several steps to encourage and promote the role of seed companies including private sector companies for production of quality seeds. These measures include the following: 

i. Under the existing policy relating to seeds, the best planting material available in the world is allowed for import by private/public companies subject to quarantine regulations. 
ii. FDI is allowed upto 100% under the automatic route in the development and production of seeds and planting material subject to certain conditions. 
iii. Seed companies are exempted from payment of VAT on Seeds. 
iv. Under Section 35 of IT Act, 200% of the expenditure on R&D is allowed as weighted deduction to the seed industries having R&D centres recognized by the Department of Scientific and Industrial Research, Ministry of Science & Technology. 
v. Back ended subsidy to private companies for creation of seed infrastructure like seed processing and seed storage facilities under the Central Sector Scheme of ‘Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds’. 

Cotton Corporation of India to Intervene in the Market to Build up Reserves of 25 Lakh Bales

Ministry of Textiles is monitoring, on a daily basis, the arrivals of cotton and the price situation across major Mandis. Although, currently the cotton prices are stable, averaging around Rs. 4000 per quintal, are way above the MSP prices fixed at 3100 per quintal, negating the need for MSP operations. However, in order to secure the raw material supply lines for the domestic requirements of the textile sector, commercial operations by CCI have become imperative.

Cotton Corporation of India (CCI) has been directed to intervene in the market for commercial operations to build up reserves of 25 lakh bales till the cotton arrivals in the new cotton season 2012-13. This has been necessitated by the fact that the textile industry impacted by a slowdown is unable to carry stocks beyond 15 days whereas the mandatory carryover stock requirement of 60 lakh bales at 85% efficiency. CCI is expected to purchase at the prevailing market price approximately 10 lakh bales per month for the next two months. 

This considered decision has been taken to ensure price stability in the market as also availability of cotton for domestic user industry, keeping in mind the varied interests of stakeholders across the entire cotton value chain, ranging from farmers, ginners, millers and traders. 

Yesterday, CCI purchased approx. 11,000 bales at Rs. 4400 per quintal from major mandis across Gujarat.