Govt mulls elimination of ‘fraudulent’ seed companies

LAHORE: The centre has come up with a plan to scrutinise seed companies -- a move that has raised serious concerns among stakeholders regarding the transparency and fairness of the procedure.

The government is actively exploring the possibility of removing what it called deceptive seed companies from the market to protect growers and ensure agricultural integrity. Officials are evaluating the practicality of shutting down fraudulent seed enterprises that undermine the productivity of the agriculture sector.

In this connection, the Ministry of National Food Security and Research has called for an urgent meeting of the Board of Governors of the National Seed Development and Regulatory Authority (NSDRA). Scheduled for March 27, 2025 (today), this meeting will address several pressing issues within the seed industry.

Regarding elimination of substandard, inactive and fraudulent seed companies, the government showed intention to eradicating unauthorised seed companies to ensure the quality of seeds and protect the interests of farmers.

Besides, proposals have been sought from stakeholders for classification of seed companies. The agenda will cover the categorisation of seed companies, which is essential for implementing effective monitoring of their performance and compliance with quality standards if implemented correctly.

More importantly, the establishment of a complaint redressal committee for seed companies is also on the cards. A dedicated committee will be formed to address complaints related to seed companies, in what authorities believe ensuring a fair and efficient resolution process.

The meeting will see the participation of high-ranking officials, including the federal minister and the secretary of the Ministry of National Food Security and Research, as well as representatives from various agricultural departments and seed associations.

Previous attempts to classify and ban fraudulent seed companies have been unsuccessful for various reasons. An earlier attempt to classify seed companies was driven by the need to promote private sector participation in the seed business and improve the overall seed system in the country. The government’s liberalisation policies encouraged various seed companies to enter the domestic market, leading to a surge in private sector investment.

To regulate this growing industry, the government established institutions such as the Federal Seed Certification and Registration Department (FSC&RD) to oversee seed quality, certification, and registration. The FSC&RD is responsible for ensuring that seed companies meet certain standards, and its efforts have contributed to the development of a more organised seed sector.

Key factors that prompted the government to launch classification of seed companies include need for regulation, making process transparent and improve seed quality.

The influx of private sector players highlighted the need for a regulatory framework to ensure seed quality and authenticity. Classification may help to distinguish between genuine and fake seed companies, protecting farmers’ interests.

Moreover, by setting standards for seed companies, the government aims to enhance the overall quality of seeds available to farmers.These efforts demonstrate the government’s commitment to developing a strong seed sector, which is critical for ensuring food and promoting agricultural growth.

The seed industry’s resistance to scrutiny of seed companies can be attributed to several factors. Seed industry believes that a level playing field must be ensured for all. “We do not fear exposure,” said the owner of a local seed marketing company. He added that some seed companies might be involved in unethicalpractices, such as selling low-quality or fake seeds, but only impartial scrutiny can expose their wrongdoing.

Companies that boast standard practice or that engage in fair practices might still lose market share if partial scrutiny leads to lopsided regulations and enforcement.They were of the view that scrutiny and potential regulatory changes could lead to increased costs for seed companies, which might negatively impact their profit margins.

Seed companies view scrutiny as a threat to their business interests, particularly if they have invested heavily in marketing and distribution networks. Large seed companies might use their influence and lobbying power to resist scrutiny and shape regulatory policies in their favour.

Leading seed companies argue that government lack implementation mechanisms. There are serious issues regarding capacity of the regulatory compliance system. Nevertheless, not all seed companies are opposed to scrutiny. Many reputable companies welcome transparency and regulation, recognising that it helps maintain a level playing field and ensures the quality of seeds for farmers.